1.1 	A bill for an act
1.2 	relating to state government; modifying provisions governing child care, child 
1.3 	safety and permanency, child support, economic assistance, deep poverty, housing 
1.4 	and homelessness, behavioral health, the medical education and research cost 
1.5 	account, MinnesotaCare, medical assistance, background studies, and human 
1.6 	services licensing; establishing the Department of Children, Youth, and Families; 
1.7 	making technical and conforming changes; establishing requirements for hospital 
1.8 	nurse staffing committees and hospital nurse workload committees; modifying 
1.9 	requirements of hospital core staffing plans; modifying requirements related to 
1.10 	hospital preparedness and incident response action plans to acts of violence; 
1.11 	modifying eligibility for the health professional education loan forgiveness program; 
1.12 	establishing the Health Care Affordability Board and Health Care Affordability 
1.13 	Advisory Council;  establishing prescription contraceptive supply requirement; 
1.14 	requiring health plan coverage of prescription contraceptives, certain services 
1.15 	provided by a pharmacist, infertility treatment, treatment of rare diseases and 
1.16 	conditions, and biomarker testing; modifying managed care withhold requirements; 
1.17 	establishing filing requirements for a health plan's prescription drug formulary 
1.18 	and for items and services provided by medical and dental practices; establishing 
1.19 	notice and disclosure requirements for certain health care transactions; extending 
1.20 	moratorium on certain conversion transactions; requiring disclosure of facility fees 
1.21 	for telehealth; modifying provisions relating to the eligibility of undocumented 
1.22 	children for MinnesotaCare and of children for medical assistance; prohibiting a 
1.23 	medical assistance benefit plan from including cost-sharing provisions; authorizing 
1.24 	a MinnesotaCare buy-in option; assessing alternative payment methods in rural 
1.25 	health care; assessing feasibility for a health care provider directory; requiring 
1.26 	compliance with the No Surprises Act in billing; modifying prescription drug price 
1.27 	provisions and continuity of care provisions; compiling health encounter data; 
1.28 	modifying all-payer claims data provisions; establishing certain advisory councils, 
1.29 	committees, public awareness campaigns, apprenticeship programs, and grant 
1.30 	programs; modifying lead testing and remediation requirements; establishing 
1.31 	Minnesota One Health Microbial Stewardship Collaborative and cultural 
1.32 	communications program; providing for clinical health care training; establishing 
1.33 	a climate resiliency program; changing assisted living provisions; establishing a 
1.34 	program to monitor long COVID, a 988 suicide crisis lifeline, school-based health 
1.35 	centers, Healthy Beginnings, Healthy Families Act, and Comprehensive and 
1.36 	Collaborative Resource and Referral System for Children; establishing a 
1.37 	moratorium on green burials; regulating submerged closed-loop exchanger systems; 
1.38 	establishing a tobacco use prevention account; amending provisions relating to 
2.1 	adoptee birth records access; establishing Office of African American Health; 
2.2 	establishing Office of American Indian Health; changing certain health board fees; 
2.3 	establishing easy enrollment health insurance outreach program; establishing a 
2.4 	state-funded cost-sharing reduction program for eligible persons enrolled in certain 
2.5 	qualified health plans; setting certain fees; requiring reports; authorizing attorney 
2.6 	general and commissioner of health review and enforcement of certain health care 
2.7 	transactions; authorizing rulemaking; transferring money; allocating funds for a 
2.8 	specific purpose; making forecast adjustments; appropriating money for the 
2.9 	Department of Human Services, Department of Health, health-related boards, 
2.10 	emergency medical services regulatory board, ombudsperson for families, 
2.11 	ombudsperson for American Indian families, Office of the Foster Youth 
2.12 	Ombudsperson, Rare Disease Advisory Council, Department of Revenue, 
2.13 	Department of Management and Budget, Department of Children, Youth and 
2.14 	Families, Department of Commerce, and Health Care Affordability Board;
2.15 	amending Minnesota Statutes 2022, sections 4.045; 10.65, subdivision 2; 13.10, 
2.16 	subdivision 5; 13.46, subdivision 4; 13.465, subdivision 8; 15.01; 15.06, subdivision 
2.17 	1; 15A.0815, subdivision 2; 16A.151, subdivision 2; 43A.08, subdivision 1a; 
2.18 	62A.02, subdivision 1; 62A.045; 62A.15, subdivision 4, by adding a subdivision; 
2.19 	62A.30, by adding subdivisions; 62A.673, subdivision 2; 62J.497, subdivisions 
2.20 	1, 3; 62J.692, subdivisions 1, 3, 4, 5, 8; 62J.824; 62J.84, subdivisions 2, 3, 4, 6, 
2.21 	7, 8, 9, by adding subdivisions; 62K.10, subdivision 4; 62K.15; 62U.04, 
2.22 	subdivisions 4, 5, 5a, 11, by adding subdivisions; 62U.10, subdivision 7; 103I.005, 
2.23 	subdivisions 17a, 20a, by adding a subdivision; 103I.208, subdivision 2; 119B.011, 
2.24 	subdivisions 2, 5, 13, 19a; 119B.025, subdivision 4; 119B.03, subdivision 4a; 
2.25 	119B.125, subdivisions 1, 1a, 1b, 2, 3, 4, 6, 7; 119B.13, subdivisions 1, 6; 119B.16, 
2.26 	subdivisions 1a, 1c, 3; 119B.161, subdivisions 2, 3; 119B.19, subdivision 7; 
2.27 	121A.335, subdivisions 3, 5, by adding a subdivision; 144.05, by adding a 
2.28 	subdivision; 144.122; 144.1501, subdivisions 1, 2, 3, 4, 5; 144.1506, subdivision 
2.29 	4; 144.218, subdivisions 1, 2; 144.225, subdivision 2; 144.2252; 144.226, 
2.30 	subdivisions 3, 4; 144.566; 144.608, subdivision 1; 144.651, by adding a 
2.31 	subdivision; 144.653, subdivision 5; 144.7055; 144.7067, subdivision 1; 144.9501, 
2.32 	subdivision 9; 144E.001, subdivision 1, by adding a subdivision; 144E.35; 
2.33 	145.4716, subdivision 3; 145.87, subdivision 4; 145.924; 145A.131, subdivisions 
2.34 	1, 2, 5; 145A.14, by adding a subdivision; 147A.08; 148B.392, subdivision 2; 
2.35 	150A.08, subdivisions 1, 5; 150A.091, by adding a subdivision; 150A.13, 
2.36 	subdivision 10; 151.065, subdivisions 1, 2, 3, 4, 6; 151.071, subdivision 2; 151.555; 
2.37 	151.74, subdivisions 3, 4; 152.126, subdivisions 4, 5, 6, 9; 245.095; 245.4663, 
2.38 	subdivision 4; 245.4889, subdivision 1; 245.735, subdivisions 3, 6, by adding a 
2.39 	subdivision; 245A.02, subdivision 2c; 245A.04, subdivisions 1, 7a; 245A.05; 
2.40 	245A.055, subdivision 2; 245A.06, subdivisions 1, 2, 4; 245A.07, subdivision 3; 
2.41 	245A.16, by adding a subdivision; 245A.50, subdivisions 3, 4, 5, 6, 9; 245C.02, 
2.42 	subdivision 13e, by adding subdivisions; 245C.03, subdivisions 1, 1a; 245C.031, 
2.43 	subdivision 1; 245C.04, subdivision 1; 245C.05, subdivisions 1, 2c, 4; 245C.08, 
2.44 	subdivision 1; 245C.10, subdivisions 2, 2a, 3, 4, 5, 6, 8, 9, 9a, 10, 11, 12, 13, 14, 
2.45 	15, 16, 17, 20, 21; 245C.15, subdivision 2, by adding a subdivision; 245C.17, 
2.46 	subdivisions 2, 3, 6; 245C.21, subdivisions 1a, 2; 245C.22, subdivision 7; 245C.23, 
2.47 	subdivisions 1, 2; 245C.24, subdivision 2; 245C.30, subdivision 2; 245C.32, 
2.48 	subdivision 2; 245E.06, subdivision 3; 245G.03, subdivision 1; 245H.01, 
2.49 	subdivision 3, by adding a subdivision; 245H.03, subdivisions 2, 4; 245H.06, 
2.50 	subdivisions 1, 2; 245H.07, subdivisions 1, 2; 245I.011, subdivision 3; 245I.20, 
2.51 	subdivisions 10, 13, 14, 16; 254B.02, subdivision 5; 256.01, by adding a 
2.52 	subdivision; 256.014, subdivisions 1, 2; 256.046, subdivision 3; 256.0471, 
2.53 	subdivision 1; 256.962, subdivision 5; 256.969, subdivisions 2b, 9, 25, by adding 
2.54 	a subdivision; 256.983, subdivision 5; 256B.04, by adding a subdivision; 256B.055, 
2.55 	subdivision 17; 256B.056, subdivision 7; 256B.0625, subdivisions 9, 13, 13c, 13f, 
2.56 	13g, 28b, 30, 31, 34, 49, by adding subdivisions; 256B.0631, subdivision 2, by 
2.57 	adding a subdivision; 256B.0941, by adding a subdivision; 256B.196, subdivision 
2.58 	2; 256B.69, subdivisions 4, 5a, 6d, 28, 36, by adding subdivisions; 256B.692, 
3.1 	subdivision 1; 256B.75; 256B.758; 256B.76, as amended; 256B.761; 256B.764; 
3.2 	256D.01, subdivision 1a; 256D.024, subdivision 1; 256D.03, by adding a 
3.3 	subdivision; 256D.06, subdivision 5; 256D.44, subdivision 5; 256D.63, subdivision 
3.4 	2; 256E.34, subdivision 4; 256E.35, subdivisions 1, 2, 3, 4a, 6, 7; 256I.03, 
3.5 	subdivisions 7, 13; 256I.04, subdivision 1; 256I.06, subdivisions 6, 8, by adding 
3.6 	a subdivision; 256J.08, subdivisions 71, 79; 256J.11, subdivision 1; 256J.21, 
3.7 	subdivisions 3, 4; 256J.26, subdivision 1; 256J.33, subdivisions 1, 2; 256J.35; 
3.8 	256J.37, subdivisions 3, 3a; 256J.425, subdivisions 1, 4, 5, 7; 256J.46, subdivisions 
3.9 	1, 2, 2a; 256J.95, subdivision 19; 256L.03, subdivision 5; 256L.04, subdivisions 
3.10 	7a, 10, by adding a subdivision; 256L.07, subdivision 1; 256L.15, subdivision 2; 
3.11 	256N.26, subdivision 12; 256P.01, by adding subdivisions; 256P.02, subdivision 
3.12 	2, by adding subdivisions; 256P.04, subdivisions 4, 8; 256P.06, subdivision 3, by 
3.13 	adding a subdivision; 256P.07, subdivisions 1, 2, 3, 4, 6, 7, by adding subdivisions; 
3.14 	259.83, subdivisions 1, 1a, 1b, by adding a subdivision; 260.761, subdivision 2, 
3.15 	as amended; 260C.007, subdivisions 6, 14; 260C.317, subdivision 4; 260C.80, 
3.16 	subdivision 1; 260E.01; 260E.02, subdivision 1; 260E.03, subdivision 22, by 
3.17 	adding subdivisions; 260E.09; 260E.14, subdivisions 2, 5; 260E.17, subdivision 
3.18 	1; 260E.18; 260E.20, subdivision 2; 260E.24, subdivisions 2, 7; 260E.33, 
3.19 	subdivision 1; 260E.35, subdivision 6; 270B.14, subdivision 1, by adding a 
3.20 	subdivision; 297F.10, subdivision 1; 403.161, subdivisions 1, 3, 5, 6, 7; 403.162, 
3.21 	subdivisions 1, 2, 5; 518A.31; 518A.32, subdivisions 3, 4; 518A.34; 518A.41; 
3.22 	518A.42, subdivisions 1, 3; 518A.65; 518A.77; 524.5-118; 609B.425, subdivision 
3.23 	2; 609B.435, subdivision 2; Laws 2017, First Special Session chapter 6, article 5, 
3.24 	section 11, as amended; Laws 2021, First Special Session chapter 7, article 6, 
3.25 	section 26; article 16, sections 2, subdivision 32, as amended; 3, subdivision 2, as 
3.26 	amended; article 17, section 5, subdivision 1; proposing coding for new law in 
3.27 	Minnesota Statutes, chapters 62A; 62D; 62J; 62Q; 62V; 103I; 119B; 144; 144E; 
3.28 	145; 148; 245; 245C; 256B; 256E; 256K; 256N; 256P; 260; 290; proposing coding 
3.29 	for new law as Minnesota Statutes, chapter 143; repealing Minnesota Statutes 
3.30 	2022, sections 62J.692, subdivisions 4a, 7, 7a; 119B.03, subdivision 4; 137.38, 
3.31 	subdivision 1; 144.059, subdivision 10; 144.212, subdivision 11; 245C.02, 
3.32 	subdivision 14b; 245C.032; 245C.11, subdivision 3; 245C.30, subdivision 1a; 
3.33 	256.8799; 256.9864; 256B.0631, subdivisions 1, 2, 3; 256B.69, subdivision 5c; 
3.34 	256J.08, subdivisions 10, 53, 61, 62, 81, 83; 256J.30, subdivisions 5, 7, 8; 256J.33, 
3.35 	subdivisions 3, 4, 5; 256J.34, subdivisions 1, 2, 3, 4; 256J.37, subdivision 10; 
3.36 	256J.425, subdivision 6; 259.83, subdivision 3; 259.89; 260C.637.
3.37 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.38 	ARTICLE 1
3.39 	HEALTH CARE

3.40 	Section 1. Minnesota Statutes 2022, section 256.01, is amended by adding a subdivision 
3.41 	to read:
3.42 		Subd. 43.Education on contraceptive options. The commissioner shall require hospitals 
3.43 	and primary care providers serving medical assistance and MinnesotaCare enrollees to 
3.44 	develop and implement protocols to provide enrollees, when appropriate, with comprehensive 
3.45 	and scientifically accurate information on the full range of contraceptive options, in a 
3.46 	medically ethical, culturally competent, and noncoercive manner. The information provided 
3.47 	must be designed to assist enrollees in identifying the contraceptive method that best meets 
3.48 	their needs and the needs of their families. The protocol must specify the enrollee categories 
4.1 	to which this requirement will be applied, the process to be used, and the information and 
4.2 	resources to be provided. Hospitals and providers must make this protocol available to the 
4.3 	commissioner upon request.

4.4 	Sec. 2. Minnesota Statutes 2022, section 256.0471, subdivision 1, is amended to read:
4.5 		Subdivision 1.Qualifying overpayment. Any overpayment for assistance granted under 
4.6 	chapter 119B, the MFIP program formerly codified under sections 256.031 to 256.0361,
4.7 	and the AFDC program formerly codified under sections 256.72 to 256.871; for assistance 
4.8 	granted under chapters 256B for state-funded medical assistance 119B, 256D, 256I, 256J,
4.9 	and 256K, and 256L; for assistance granted pursuant to section 256.045, subdivision 10, 
4.10 	for state-funded medical assistance and state-funded MinnesotaCare under chapters 256B 
4.11 	and 256L; and for assistance granted under the Supplemental Nutrition Assistance Program 
4.12 	(SNAP), except agency error claims, become a judgment by operation of law 90 days after 
4.13 	the notice of overpayment is personally served upon the recipient in a manner that is sufficient 
4.14 	under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail, 
4.15 	return receipt requested. This judgment shall be entitled to full faith and credit in this and 
4.16 	any other state.

4.17 	EFFECTIVE DATE. This section is effective July 1, 2023.

4.18 	Sec. 3. Minnesota Statutes 2022, section 256.969, subdivision 2b, is amended to read:
4.19 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
4.20 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
4.21 	to the following:
4.22 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
4.23 	methodology;
4.24 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
4.25 	under subdivision 25;
4.26 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
4.27 	distinct parts as defined by Medicare shall be paid according to the methodology under 
4.28 	subdivision 12; and
4.29 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
4.30 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
4.31 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
4.32 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
5.1 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
5.2 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
5.3 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
5.4 	period as other hospitals.
5.5 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
5.6 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
5.7 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
5.8 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
5.9 	manner similar to Medicare. The base year or years for the rates effective November 1, 
5.10 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
5.11 	ensuring that the total aggregate payments under the rebased system are equal to the total 
5.12 	aggregate payments that were made for the same number and types of services in the base 
5.13 	year. Separate budget neutrality calculations shall be determined for payments made to 
5.14 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
5.15 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
5.16 	rebased during the entire base period shall be incorporated into the budget neutrality 
5.17 	calculation.
5.18 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
5.19 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
5.20 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
5.21 	a five percent increase or decrease from the base year payments for any hospital. Any 
5.22 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
5.23 	shall maintain budget neutrality as described in paragraph (c).
5.24 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
5.25 	additional adjustments to the rebased rates, and when evaluating whether additional 
5.26 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
5.27 	following:
5.28 	(1) pediatric services;
5.29 	(2) behavioral health services;
5.30 	(3) trauma services as defined by the National Uniform Billing Committee;
5.31 	(4) transplant services;
5.32 	(5) obstetric services, newborn services, and behavioral health services provided by 
5.33 	hospitals outside the seven-county metropolitan area;
6.1 	(6) outlier admissions;
6.2 	(7) low-volume providers; and
6.3 	(8) services provided by small rural hospitals that are not critical access hospitals.
6.4 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
6.5 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
6.6 	admission is standardized by the applicable Medicare wage index and adjusted by the 
6.7 	hospital's disproportionate population adjustment;
6.8 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
6.9 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
6.10 	October 31, 2014;
6.11 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
6.12 	inpatient services covered by medical assistance; and
6.13 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
6.14 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
6.15 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
6.16 	program in effect during the base year or years. In determining hospital payment rates for 
6.17 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
6.18 	methods and allowable costs of the Medicare program in effect during the base year or 
6.19 	years.
6.20 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
6.21 	the rates established under paragraph (c), and any adjustments made to the rates under 
6.22 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
6.23 	total aggregate payments for the same number and types of services under the rebased rates 
6.24 	are equal to the total aggregate payments made during calendar year 2013.
6.25 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
6.26 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
6.27 	in hospital costs between the existing base year or years and the next base year or years. In 
6.28 	any year that inpatient claims volume falls below the threshold required to ensure a 
6.29 	statistically valid sample of claims, the commissioner may combine claims data from two 
6.30 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
6.31 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
6.32 	a base year or part of a base year if the base year includes more than one year. Changes in 
6.33 	costs between base years shall be measured using the lower of the hospital cost index defined 
7.1 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
7.2 	claim. The commissioner shall establish the base year for each rebasing period considering 
7.3 	the most recent year or years for which filed Medicare cost reports are available. The 
7.4 	estimated change in the average payment per hospital discharge resulting from a scheduled 
7.5 	rebasing must be calculated and made available to the legislature by January 15 of each 
7.6 	year in which rebasing is scheduled to occur, and must include by hospital the differential 
7.7 	in payment rates compared to the individual hospital's costs.
7.8 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
7.9 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
7.10 	using a new cost-based methodology. The commissioner shall establish within the 
7.11 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
7.12 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
7.13 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
7.14 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
7.15 	decrease from the base year payments for any hospital, except a hospital that had payments 
7.16 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
7.17 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
7.18 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
7.19 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
7.20 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
7.21 	following criteria:
7.22 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
7.23 	shall have a rate set that equals 85 percent of their base year costs;
7.24 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
7.25 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
7.26 	base year costs; and
7.27 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
7.28 	shall have a rate set that equals 100 percent of their base year costs.
7.29 	(j) Effective for discharges occurring on or after July 1, 2023, payment rates under this 
7.30 	section must be rebased to reflect those changes in hospital costs between the existing base 
7.31 	year or years and one year prior to the rate year. In any year that inpatient claims volume 
7.32 	falls below the threshold required to ensure a statistically valid sample of claims, the 
7.33 	commissioner may combine claims data from two consecutive years to serve as the base 
7.34 	year. Years in which inpatient claims volume is reduced or altered due to a pandemic or 
8.1 	other public health emergency must not be used as a base year or part of a base year if the 
8.2 	base year includes more than one year. Changes in costs between the base year or years and 
8.3 	one year prior to the rate year must be measured using the hospital cost index defined in 
8.4 	subdivision 1, paragraph (a). The commissioner must establish the base year for each rebasing 
8.5 	period considering the most recent year or years for which filed Medicare cost reports are 
8.6 	available. The estimated change in the average payment per hospital discharge resulting 
8.7 	from a scheduled rebasing must be calculated and made available to the legislature by 
8.8 	January 15 of each year in which rebasing is scheduled to occur, and must include the 
8.9 	differential in payment rates compared to the individual hospital's costs by hospital.
8.10 	(k) Effective for discharges occurring on or after July 1, 2023, inpatient payment rates 
8.11 	for critical access hospitals located in Minnesota or the local trade area must be a rate equal 
8.12 	to 100 percent of their base year costs inflated to the year prior to the rate year using the 
8.13 	hospital cost index defined in subdivision 1, paragraph (a).
8.14 	(l) The commissioner may refine the payment tiers and criteria for critical access hospitals 
8.15 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
8.16 	methodology may include, but are not limited to:
8.17 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
8.18 	hospital's charges to the medical assistance program;
8.19 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
8.20 	hospital's payments received from the medical assistance program for the care of medical 
8.21 	assistance patients;
8.22 	(3) the ratio between the hospital's charges to the medical assistance program and the 
8.23 	hospital's payments received from the medical assistance program for the care of medical 
8.24 	assistance patients;
8.25 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
8.26 	(5) the proportion of that hospital's costs that are administrative and trends in 
8.27 	administrative costs; and
8.28 	(6) geographic location.

8.29 	Sec. 4. Minnesota Statutes 2022, section 256.969, subdivision 9, is amended to read:
8.30 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For admissions 
8.31 	occurring on or after July 1, 1993, the medical assistance disproportionate population 
8.32 	adjustment shall comply with federal law and shall be paid to a hospital, excluding regional 
9.1 	treatment centers and facilities of the federal Indian Health Service, with a medical assistance 
9.2 	inpatient utilization rate in excess of the arithmetic mean. The adjustment must be determined 
9.3 	as follows:
9.4 	(1) for a hospital with a medical assistance inpatient utilization rate above the arithmetic 
9.5 	mean for all hospitals excluding regional treatment centers and facilities of the federal Indian 
9.6 	Health Service but less than or equal to one standard deviation above the mean, the 
9.7 	adjustment must be determined by multiplying the total of the operating and property 
9.8 	payment rates by the difference between the hospital's actual medical assistance inpatient 
9.9 	utilization rate and the arithmetic mean for all hospitals excluding regional treatment centers 
9.10 	and facilities of the federal Indian Health Service; and
9.11 	(2) for a hospital with a medical assistance inpatient utilization rate above one standard 
9.12 	deviation above the mean, the adjustment must be determined by multiplying the adjustment 
9.13 	that would be determined under clause (1) for that hospital by 1.1. The commissioner shall 
9.14 	report annually on the number of hospitals likely to receive the adjustment authorized by 
9.15 	this paragraph. The commissioner shall specifically report on the adjustments received by 
9.16 	public hospitals and public hospital corporations located in cities of the first class.
9.17 	(b) Certified public expenditures made by Hennepin County Medical Center shall be 
9.18 	considered Medicaid disproportionate share hospital payments. Hennepin County and 
9.19 	Hennepin County Medical Center shall report by June 15, 2007, on payments made beginning 
9.20 	July 1, 2005, or another date specified by the commissioner, that may qualify for 
9.21 	reimbursement under federal law. Based on these reports, the commissioner shall apply for 
9.22 	federal matching funds.
9.23 	(c) Upon federal approval of the related state plan amendment, paragraph (b) is effective 
9.24 	retroactively from July 1, 2005, or the earliest effective date approved by the Centers for 
9.25 	Medicare and Medicaid Services.
9.26 	(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall be paid 
9.27 	in accordance with a new methodology using 2012 as the base year. Annual payments made 
9.28 	under this paragraph shall equal the total amount of payments made for 2012. A licensed 
9.29 	children's hospital shall receive only a single DSH factor for children's hospitals. Other 
9.30 	DSH factors may be combined to arrive at a single factor for each hospital that is eligible 
9.31 	for DSH payments. The new methodology shall make payments only to hospitals located 
9.32 	in Minnesota and include the following factors:
10.1 	(1) a licensed children's hospital with at least 1,000 fee-for-service discharges in the 
10.2 	base year shall receive a factor of 0.868. A licensed children's hospital with less than 1,000 
10.3 	fee-for-service discharges in the base year shall receive a factor of 0.7880;
10.4 	(2) a hospital that has in effect for the initial rate year a contract with the commissioner 
10.5 	to provide extended psychiatric inpatient services under section 256.9693 shall receive a 
10.6 	factor of 0.0160;
10.7 	(3) a hospital that has received medical assistance payment for at least 20 transplant 
10.8 	services in the base year shall receive a factor of 0.0435;
10.9 	(4) a hospital that has a medical assistance utilization rate in the base year between 20 
10.10 	percent up to one standard deviation above the statewide mean utilization rate shall receive 
10.11 	a factor of 0.0468;
10.12 	(5) a hospital that has a medical assistance utilization rate in the base year that is at least 
10.13 	one standard deviation above the statewide mean utilization rate but is less than two and 
10.14 	one-half standard deviations above the mean shall receive a factor of 0.2300; and
10.15 	(6) a hospital that is a level one trauma center and that has a medical assistance utilization 
10.16 	rate in the base year that is at least two and one-half one-quarter standard deviations above 
10.17 	the statewide mean utilization rate shall receive a factor of 0.3711.
10.18 	(e) For the purposes of determining eligibility for the disproportionate share hospital 
10.19 	factors in paragraph (d), clauses (1) to (6), the medical assistance utilization rate and 
10.20 	discharge thresholds shall be measured using only one year when a two-year base period 
10.21 	is used.
10.22 	(f) Any payments or portion of payments made to a hospital under this subdivision that 
10.23 	are subsequently returned to the commissioner because the payments are found to exceed 
10.24 	the hospital-specific DSH limit for that hospital shall be redistributed, proportionate to the 
10.25 	number of fee-for-service discharges, to other DSH-eligible non-children's hospitals that 
10.26 	have a medical assistance utilization rate that is at least one standard deviation above the 
10.27 	mean.
10.28 	(g) An additional payment adjustment shall be established by the commissioner under 
10.29 	this subdivision for a hospital that provides high levels of administering high-cost drugs to 
10.30 	enrollees in fee-for-service medical assistance. The commissioner shall consider factors 
10.31 	including fee-for-service medical assistance utilization rates and payments made for drugs 
10.32 	purchased through the 340B drug purchasing program and administered to fee-for-service 
10.33 	enrollees. If any part of this adjustment exceeds a hospital's hospital-specific disproportionate 
11.1 	share hospital limit, or if the hospital qualifies for the alternative payment rate described in 
11.2 	subdivision 2e, the commissioner shall make a payment to the hospital that equals the 
11.3 	nonfederal share of the amount that exceeds the limit. The total nonfederal share of the 
11.4 	amount of the payment adjustment under this paragraph shall not exceed $1,500,000
11.5 	$10,000,000. The department shall calculate the aggregate difference in payments for 
11.6 	outpatient pharmacy claims for members enrolled with medical assistance prepaid health 
11.7 	plans reimbursed at the 340B rate as compared to the non-340B rate, as defined in section 
11.8 	256B.0625. The department shall report the results to the chairs and ranking minority 
11.9 	members of the legislative committees with jurisdiction over medical assistance hospital 
11.10 	reimbursement no later than January 1 for the previous fiscal year.

11.11 	EFFECTIVE DATE. This section is effective January 1, 2026, or the January 1 
11.12 	following certification of the modernized pharmacy claims processing system, whichever 
11.13 	is later. The commissioner of human services shall notify the revisor of statutes when 
11.14 	certification of the modernized pharmacy claims processing system occurs.

11.15 	Sec. 5. Minnesota Statutes 2022, section 256.969, subdivision 25, is amended to read:
11.16 		Subd. 25.Long-term hospital rates. (a) Long-term hospitals shall be paid on a per diem 
11.17 	basis.
11.18 	(b) For admissions occurring on or after April 1, 1995, a long-term hospital as designated 
11.19 	by Medicare that does not have admissions in the base year shall have inpatient rates 
11.20 	established at the average of other hospitals with the same designation. For subsequent 
11.21 	rate-setting periods in which base years are updated, the hospital's base year shall be the 
11.22 	first Medicare cost report filed with the long-term hospital designation and shall remain in 
11.23 	effect until it falls within the same period as other hospitals.
11.24 	(c) For admissions occurring on or after July 1, 2023, long-term hospitals must be paid 
11.25 	the higher of a per diem amount computed using the methodology described in subdivision 
11.26 	2b, paragraph (i), or the per diem rate as of July 1, 2021.

11.27 	EFFECTIVE DATE. This section is effective July 1, 2023.

11.28 	Sec. 6. Minnesota Statutes 2022, section 256.969, is amended by adding a subdivision to 
11.29 	read:
11.30 		Subd. 31.Long-acting reversible contraceptives. (a) The commissioner must provide 
11.31 	separate reimbursement to hospitals for long-acting reversible contraceptives provided 
11.32 	immediately postpartum in the inpatient hospital setting. This payment must be in addition 
12.1 	to the diagnostic related group reimbursement for labor and delivery and shall be made 
12.2 	consistent with section 256B.0625, subdivision 13e, paragraph (e).
12.3 	(b) The commissioner must require managed care and county-based purchasing plans 
12.4 	to comply with this subdivision when providing services to medical assistance enrollees.

12.5 	EFFECTIVE DATE. This section is effective January 1, 2024.

12.6 	Sec. 7. Minnesota Statutes 2022, section 256B.055, subdivision 17, is amended to read:
12.7 		Subd. 17.Adults who were in foster care at the age of 18. (a) Medical assistance may 
12.8 	be paid for a person under 26 years of age who was in foster care under the commissioner's 
12.9 	responsibility on the date of attaining 18 years of age, and who was enrolled in medical 
12.10 	assistance under the state plan or a waiver of the plan while in foster care, in accordance 
12.11 	with section 2004 of the Affordable Care Act.
12.12 	(b) Beginning July 1, 2023, medical assistance may be paid for a person under 26 years 
12.13 	of age who was in foster care on the date of attaining 18 years of age and enrolled in another 
12.14 	state's Medicaid program while in foster care in accordance with the Substance Use-Disorder 
12.15 	Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities 
12.16 	Act of 2018. Public Law 115-271, section 1002.

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

12.18 	Sec. 8. Minnesota Statutes 2022, section 256B.0625, subdivision 9, is amended to read:
12.19 		Subd. 9.Dental services. (a) Medical assistance covers medically necessary dental 
12.20 	services.
12.21 	(b) Medical assistance dental coverage for nonpregnant adults is limited to the following 
12.22 	services:
12.23 	(1) comprehensive exams, limited to once every five years;
12.24 	(2) periodic exams, limited to one per year;
12.25 	(3) limited exams;
12.26 	(4) bitewing x-rays, limited to one per year;
12.27 	(5) periapical x-rays;
12.28 	(6) panoramic x-rays, limited to one every five years except (1) when medically necessary 
12.29 	for the diagnosis and follow-up of oral and maxillofacial pathology and trauma or (2) once 
13.1 	every two years for patients who cannot cooperate for intraoral film due to a developmental 
13.2 	disability or medical condition that does not allow for intraoral film placement;
13.3 	(7) prophylaxis, limited to one per year;
13.4 	(8) application of fluoride varnish, limited to one per year;
13.5 	(9) posterior fillings, all at the amalgam rate;
13.6 	(10) anterior fillings;
13.7 	(11) endodontics, limited to root canals on the anterior and premolars only;
13.8 	(12) removable prostheses, each dental arch limited to one every six years;
13.9 	(13) oral surgery, limited to extractions, biopsies, and incision and drainage of abscesses;
13.10 	(14) palliative treatment and sedative fillings for relief of pain;
13.11 	(15) full-mouth debridement, limited to one every five years; and
13.12 	(16) nonsurgical treatment for periodontal disease, including scaling and root planing 
13.13 	once every two years for each quadrant, and routine periodontal maintenance procedures.
13.14 	(c) In addition to the services specified in paragraph (b), medical assistance covers the 
13.15 	following services for adults, if provided in an outpatient hospital setting or freestanding 
13.16 	ambulatory surgical center as part of outpatient dental surgery:
13.17 	(1) periodontics, limited to periodontal scaling and root planing once every two years;
13.18 	(2) general anesthesia; and
13.19 	(3) full-mouth survey once every five years.
13.20 	(d) Medical assistance covers medically necessary dental services for children and 
13.21 	pregnant women. (b) The following guidelines apply to dental services:
13.22 	(1) posterior fillings are paid at the amalgam rate;
13.23 	(2) application of sealants are covered once every five years per permanent molar for 
13.24 	children only; and
13.25 	(3) application of fluoride varnish is covered once every six months; and.
13.26 	(4) orthodontia is eligible for coverage for children only.
13.27 	(e) (c) In addition to the services specified in paragraphs paragraph (b) and (c), medical 
13.28 	assistance covers the following services for adults:
13.29 	(1) house calls or extended care facility calls for on-site delivery of covered services;
14.1 	(2) behavioral management when additional staff time is required to accommodate 
14.2 	behavioral challenges and sedation is not used;
14.3 	(3) oral or IV sedation, if the covered dental service cannot be performed safely without 
14.4 	it or would otherwise require the service to be performed under general anesthesia in a 
14.5 	hospital or surgical center; and
14.6 	(4) prophylaxis, in accordance with an appropriate individualized treatment plan, but 
14.7 	no more than four times per year.
14.8 	(f) (d) The commissioner shall not require prior authorization for the services included 
14.9 	in paragraph (e) (c), clauses (1) to (3), and shall prohibit managed care and county-based 
14.10 	purchasing plans from requiring prior authorization for the services included in paragraph 
14.11 	(e) (c), clauses (1) to (3), when provided under sections 256B.69, 256B.692, and 256L.12.

14.12 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
14.13 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
14.14 	when federal approval is obtained.

14.15 	Sec. 9. Minnesota Statutes 2022, section 256B.0625, subdivision 13, is amended to read:
14.16 		Subd. 13.Drugs. (a) Medical assistance covers drugs, except for fertility drugs when 
14.17 	specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed 
14.18 	by a licensed pharmacist, by a physician enrolled in the medical assistance program as a 
14.19 	dispensing physician, or by a physician, a physician assistant, or an advanced practice 
14.20 	registered nurse employed by or under contract with a community health board as defined 
14.21 	in section 145A.02, subdivision 5, for the purposes of communicable disease control.
14.22 	(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply,
14.23 	unless authorized by the commissioner or as provided in paragraph (h) or the drug appears 
14.24 	on the 90-day supply list published by the commissioner. The 90-day supply list shall be 
14.25 	published by the commissioner on the department's website. The commissioner may add 
14.26 	to, delete from, and otherwise modify the 90-day supply list after providing public notice 
14.27 	and the opportunity for a 15-day public comment period. The 90-day supply list may include 
14.28 	cost-effective generic drugs and shall not include controlled substances.
14.29 	(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical 
14.30 	ingredient" is defined as a substance that is represented for use in a drug and when used in 
14.31 	the manufacturing, processing, or packaging of a drug becomes an active ingredient of the 
14.32 	drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle 
14.33 	for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and 
15.1 	excipients which are included in the medical assistance formulary. Medical assistance covers 
15.2 	selected active pharmaceutical ingredients and excipients used in compounded prescriptions 
15.3 	when the compounded combination is specifically approved by the commissioner or when 
15.4 	a commercially available product:
15.5 	(1) is not a therapeutic option for the patient;
15.6 	(2) does not exist in the same combination of active ingredients in the same strengths 
15.7 	as the compounded prescription; and
15.8 	(3) cannot be used in place of the active pharmaceutical ingredient in the compounded 
15.9 	prescription.
15.10 	(d) Medical assistance covers the following over-the-counter drugs when prescribed by 
15.11 	a licensed practitioner or by a licensed pharmacist who meets standards established by the 
15.12 	commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family 
15.13 	planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults 
15.14 	with documented vitamin deficiencies, vitamins for children under the age of seven and 
15.15 	pregnant or nursing women, and any other over-the-counter drug identified by the 
15.16 	commissioner, in consultation with the Formulary Committee, as necessary, appropriate, 
15.17 	and cost-effective for the treatment of certain specified chronic diseases, conditions, or 
15.18 	disorders, and this determination shall not be subject to the requirements of chapter 14. A 
15.19 	pharmacist may prescribe over-the-counter medications as provided under this paragraph 
15.20 	for purposes of receiving reimbursement under Medicaid. When prescribing over-the-counter 
15.21 	drugs under this paragraph, licensed pharmacists must consult with the recipient to determine 
15.22 	necessity, provide drug counseling, review drug therapy for potential adverse interactions, 
15.23 	and make referrals as needed to other health care professionals.
15.24 	(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable 
15.25 	under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and 
15.26 	Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible 
15.27 	for drug coverage as defined in the Medicare Prescription Drug, Improvement, and 
15.28 	Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these 
15.29 	individuals, medical assistance may cover drugs from the drug classes listed in United States 
15.30 	Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to 
15.31 	13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall 
15.32 	not be covered.
15.33 	(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing 
15.34 	Program and dispensed by 340B covered entities and ambulatory pharmacies under common 
16.1 	ownership of the 340B covered entity. Medical assistance does not cover drugs acquired 
16.2 	through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.
16.3 	(g) Notwithstanding paragraph (a), medical assistance covers self-administered hormonal 
16.4 	contraceptives prescribed and dispensed by a licensed pharmacist in accordance with section 
16.5 	151.37, subdivision 14; nicotine replacement medications prescribed and dispensed by a 
16.6 	licensed pharmacist in accordance with section 151.37, subdivision 15; and opiate antagonists 
16.7 	used for the treatment of an acute opiate overdose prescribed and dispensed by a licensed 
16.8 	pharmacist in accordance with section 151.37, subdivision 16.
16.9 	(h) Medical assistance coverage for a prescription contraceptive must provide a 12-month 
16.10 	supply for any prescription contraceptive if a 12-month supply is prescribed by the 
16.11 	prescribing health care provider. The prescribing health care provider must determine the 
16.12 	appropriate duration for which to prescribe the prescription contraceptives, up to 12 months. 
16.13 	For purposes of this paragraph, "prescription contraceptive" means any drug or device that 
16.14 	requires a prescription and is approved by the Food and Drug Administration to prevent 
16.15 	pregnancy. Prescription contraceptive does not include an emergency contraceptive drug 
16.16 	approved to prevent pregnancy when administered after sexual contact. For purposes of this 
16.17 	paragraph, "health plan" has the meaning provided in section 62Q.01, subdivision 3.

16.18 	EFFECTIVE DATE. This section applies to medical assistance and MinnesotaCare 
16.19 	coverage effective January 1, 2024.

16.20 	Sec. 10. Minnesota Statutes 2022, section 256B.0625, subdivision 13c, is amended to 
16.21 	read:
16.22 		Subd. 13c.Formulary Committee. The commissioner, after receiving recommendations 
16.23 	from professional medical associations and professional pharmacy associations, and consumer 
16.24 	groups shall designate a Formulary Committee to carry out duties as described in subdivisions 
16.25 	13 to 13g. The Formulary Committee shall be comprised of four at least five licensed 
16.26 	physicians actively engaged in the practice of medicine in Minnesota, one of whom must 
16.27 	be actively engaged in the treatment of persons with mental illness is an actively practicing 
16.28 	psychiatrist, one of whom specializes in the diagnosis and treatment of rare diseases, one 
16.29 	of whom specializes in pediatrics, and one of whom actively treats persons with disabilities; 
16.30 	at least three licensed pharmacists actively engaged in the practice of pharmacy in Minnesota, 
16.31 	one of whom practices outside the metropolitan counties listed in section 473.121, subdivision 
16.32 	4, one of whom practices in the metropolitan counties listed in section 473.121, subdivision 
16.33 	4, and one of whom is a practicing hospital pharmacist; and one at least four consumer 
16.34 	representative representatives, all of whom must have a personal or professional connection 
17.1 	to medical assistance; and one representative designated by the Minnesota Rare Disease 
17.2 	Advisory Council established under section 256.4835; the remainder to be made up of health 
17.3 	care professionals who are licensed in their field and have recognized knowledge in the 
17.4 	clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs. 
17.5 	Members of the Formulary Committee shall not be employed by the Department of Human 
17.6 	Services, but the committee shall be staffed by an employee of the department who shall 
17.7 	serve as an ex officio, nonvoting member of the committee. The department's medical 
17.8 	director shall also serve as an ex officio, nonvoting member for the committee. Committee 
17.9 	members shall serve three-year terms and may be reappointed once by the commissioner. 
17.10 	The committee members shall vote on a chair from among their membership. The chair 
17.11 	shall preside over all committee meetings. The Formulary Committee shall meet at least 
17.12 	twice four times per year. The commissioner may require more frequent Formulary 
17.13 	Committee meetings as needed. An honorarium of $100 per meeting and reimbursement 
17.14 	for mileage shall be paid to each committee member in attendance. The Formulary Committee 
17.15 	is subject to the Open Meeting Law under chapter 13D. The Formulary Committee expires 
17.16 	June 30, 2023 2027.

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

17.18 	Sec. 11. Minnesota Statutes 2022, section 256B.0625, subdivision 13f, is amended to read:
17.19 		Subd. 13f.Prior authorization. (a) The Formulary Committee shall review and 
17.20 	recommend drugs which require prior authorization. The Formulary Committee shall 
17.21 	establish general criteria to be used for the prior authorization of brand-name drugs for 
17.22 	which generically equivalent drugs are available, but the committee is not required to review 
17.23 	each brand-name drug for which a generically equivalent drug is available.
17.24 	(b) Prior authorization may be required by the commissioner before certain formulary 
17.25 	drugs are eligible for payment. The Formulary Committee may recommend drugs for prior 
17.26 	authorization directly to the commissioner. The commissioner may also request that the 
17.27 	Formulary Committee review a drug for prior authorization. Before the commissioner may 
17.28 	require prior authorization for a drug:
17.29 	(1) the commissioner must provide information to the Formulary Committee on the 
17.30 	impact that placing the drug on prior authorization may have on the quality of patient care 
17.31 	and on program costs, information regarding whether the drug is subject to clinical abuse 
17.32 	or misuse, and relevant data from the state Medicaid program if such data is available;
17.33 	(2) the Formulary Committee must review the drug, taking into account medical and 
17.34 	clinical data and the information provided by the commissioner; and
18.1 	(3) the Formulary Committee must hold a public forum and receive public comment for 
18.2 	an additional 15 days.
18.3 	The commissioner must provide a 15-day notice period before implementing the prior 
18.4 	authorization.
18.5 	(c) Except as provided in subdivision 13j, prior authorization shall not be required or 
18.6 	utilized for any atypical antipsychotic drug prescribed for the treatment of mental illness 
18.7 	if:
18.8 	(1) there is no generically equivalent drug available; and
18.9 	(2) the drug was initially prescribed for the recipient prior to July 1, 2003; or
18.10 	(3) the drug is part of the recipient's current course of treatment.
18.11 	This paragraph applies to any multistate preferred drug list or supplemental drug rebate 
18.12 	program established or administered by the commissioner. Prior authorization shall 
18.13 	automatically be granted for 60 days for brand name drugs prescribed for treatment of mental 
18.14 	illness within 60 days of when a generically equivalent drug becomes available, provided 
18.15 	that the brand name drug was part of the recipient's course of treatment at the time the 
18.16 	generically equivalent drug became available.
18.17 	(d) Prior authorization shall not be required or utilized for:
18.18 	(1) any liquid form of a medication for a patient who utilizes tube feedings of any kind, 
18.19 	even if such patient has or had any paid claims for pills; and
18.20 	(2) liquid methadone. If more than one version of liquid methadone is available, the 
18.21 	commissioner shall select the version of liquid methadone that does not require prior 
18.22 	authorization.
18.23 	This paragraph applies to any multistate preferred drug list or supplemental drug rebate 
18.24 	program established or administered by the commissioner.
18.25 	(e) The commissioner may require prior authorization for brand name drugs whenever 
18.26 	a generically equivalent product is available, even if the prescriber specifically indicates 
18.27 	"dispense as written-brand necessary" on the prescription as required by section 151.21, 
18.28 	subdivision 2.
18.29 	(e) (f) Notwithstanding this subdivision, the commissioner may automatically require 
18.30 	prior authorization, for a period not to exceed 180 days, for any drug that is approved by 
18.31 	the United States Food and Drug Administration on or after July 1, 2005. The 180-day 
18.32 	period begins no later than the first day that a drug is available for shipment to pharmacies 
19.1 	within the state. The Formulary Committee shall recommend to the commissioner general 
19.2 	criteria to be used for the prior authorization of the drugs, but the committee is not required 
19.3 	to review each individual drug. In order to continue prior authorizations for a drug after the 
19.4 	180-day period has expired, the commissioner must follow the provisions of this subdivision.
19.5 	(f) (g) Prior authorization under this subdivision shall comply with section 62Q.184.
19.6 	(g) (h) Any step therapy protocol requirements established by the commissioner must 
19.7 	comply with section 62Q.1841.

19.8 	Sec. 12. Minnesota Statutes 2022, section 256B.0625, subdivision 13g, is amended to 
19.9 	read:
19.10 		Subd. 13g.Preferred drug list. (a) The commissioner shall adopt and implement a 
19.11 	preferred drug list by January 1, 2004. The commissioner may enter into a contract with a 
19.12 	vendor for the purpose of participating in a preferred drug list and supplemental rebate 
19.13 	program. The terms of the contract with the vendor must be publicly disclosed on the website 
19.14 	of the Department of Human Services. The commissioner shall ensure that any contract 
19.15 	meets all federal requirements and maximizes federal financial participation. The 
19.16 	commissioner shall publish the preferred drug list annually in the State Register and shall 
19.17 	maintain an accurate and up-to-date list on the agency website. The commissioner shall 
19.18 	implement and maintain an accurate archive of previous versions of the preferred drug list, 
19.19 	and make this archive available to the public on the website of the Department of Human 
19.20 	Services beginning January 1, 2024.
19.21 	(b) The commissioner may add to, delete from, and otherwise modify the preferred drug 
19.22 	list, after consulting with the Formulary Committee and, appropriate medical specialists 
19.23 	and , appropriate patient advocacy groups, and the Minnesota Rare Disease Advisory 
19.24 	Council; providing public notice and the opportunity for public comment; and complying 
19.25 	with the requirements of paragraph (f).
19.26 	(c) The commissioner shall adopt and administer the preferred drug list as part of the 
19.27 	administration of the supplemental drug rebate program. Reimbursement for prescription 
19.28 	drugs not on the preferred drug list may be subject to prior authorization.
19.29 	(d) For purposes of this subdivision, the following definitions apply:
19.30 	(1) "appropriate medical specialist" means a medical professional who prescribes the 
19.31 	relevant class of drug as part of their subspecialty;
19.32 	(2) "patient advocacy group" means a nonprofit organization as described in United 
19.33 	States Code, title 26, section 501(c)(3), that is exempt from income tax under United States 
20.1 	Code, title 26, section 501(a), or a public entity that supports persons with the disease state 
20.2 	treated by the therapeutic class of the preferred drug list being updated; and
20.3 	(3) "preferred drug list" means a list of prescription drugs within designated therapeutic 
20.4 	classes selected by the commissioner, for which prior authorization based on the identity 
20.5 	of the drug or class is not required.
20.6 	(e) The commissioner shall seek any federal waivers or approvals necessary to implement 
20.7 	this subdivision. The commissioner shall maintain a public list of applicable patient advocacy 
20.8 	groups.
20.9 	(f) Notwithstanding paragraph (b), Before the commissioner may delete a drug from the 
20.10 	preferred drug list or modify the inclusion of a drug on the preferred drug list, the 
20.11 	commissioner shall consider any implications that the deletion or modification may have 
20.12 	on state public health policies or initiatives and any impact that the deletion or modification 
20.13 	may have on increasing health disparities in the state. Prior to deleting a drug or modifying 
20.14 	the inclusion of a drug, the commissioner shall also conduct a public hearing. The 
20.15 	commissioner shall provide adequate notice to the public and the commissioner of health 
20.16 	prior to the hearing that specifies the drug that the commissioner is proposing to delete or 
20.17 	modify, and shall disclose any public medical or clinical analysis that the commissioner 
20.18 	has relied on in proposing the deletion or modification, and evidence that the commissioner 
20.19 	has evaluated the impact of the proposed deletion or modification on public health and 
20.20 	health disparities. Notwithstanding section 331A.05, a public notice of a Formulary 
20.21 	Committee meeting must be published at least 30 days in advance of the meeting. The list 
20.22 	of drugs to be discussed at the meeting must be announced at least 30 days before the meeting 
20.23 	and must include the name and class of drug, the proposed action, and the proposed prior 
20.24 	authorization requirements, if applicable.

20.25 	Sec. 13. Minnesota Statutes 2022, section 256B.0625, subdivision 28b, is amended to 
20.26 	read:
20.27 		Subd. 28b.Doula services. Medical assistance covers doula services provided by a 
20.28 	certified doula as defined in section 148.995, subdivision 2, of the mother's choice. For 
20.29 	purposes of this section, "doula services" means childbirth education and support services, 
20.30 	including emotional and physical support provided during pregnancy, labor, birth, and 
20.31 	postpartum. The commissioner shall enroll doula agencies and individual treating doulas 
20.32 	to provide direct reimbursement.

21.1 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
21.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
21.3 	when federal approval is obtained.

21.4 	Sec. 14. Minnesota Statutes 2022, section 256B.0625, subdivision 30, is amended to read:
21.5 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic services, 
21.6 	federally qualified health center services, nonprofit community health clinic services, and 
21.7 	public health clinic services. Rural health clinic services and federally qualified health center 
21.8 	services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and 
21.9 	(C). Payment for rural health clinic and federally qualified health center services shall be 
21.10 	made according to applicable federal law and regulation.
21.11 	(b) A federally qualified health center (FQHC) that is beginning initial operation shall 
21.12 	submit an estimate of budgeted costs and visits for the initial reporting period in the form 
21.13 	and detail required by the commissioner. An FQHC that is already in operation shall submit 
21.14 	an initial report using actual costs and visits for the initial reporting period. Within 90 days 
21.15 	of the end of its reporting period, an FQHC shall submit, in the form and detail required by 
21.16 	the commissioner, a report of its operations, including allowable costs actually incurred for 
21.17 	the period and the actual number of visits for services furnished during the period, and other 
21.18 	information required by the commissioner. FQHCs that file Medicare cost reports shall 
21.19 	provide the commissioner with a copy of the most recent Medicare cost report filed with 
21.20 	the Medicare program intermediary for the reporting year which support the costs claimed 
21.21 	on their cost report to the state.
21.22 	(c) In order to continue cost-based payment under the medical assistance program 
21.23 	according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation 
21.24 	as an essential community provider within six months of final adoption of rules by the 
21.25 	Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and 
21.26 	rural health clinics that have applied for essential community provider status within the 
21.27 	six-month time prescribed, medical assistance payments will continue to be made according 
21.28 	to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural 
21.29 	health clinics that either do not apply within the time specified above or who have had 
21.30 	essential community provider status for three years, medical assistance payments for health 
21.31 	services provided by these entities shall be according to the same rates and conditions 
21.32 	applicable to the same service provided by health care providers that are not FQHCs or rural 
21.33 	health clinics.
22.1 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural 
22.2 	health clinic to make application for an essential community provider designation in order 
22.3 	to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
22.4 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall 
22.5 	be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
22.6 	(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health 
22.7 	clinic may elect to be paid either under the prospective payment system established in United 
22.8 	States Code, title 42, section 1396a(aa), or under an alternative payment methodology 
22.9 	consistent with the requirements of United States Code, title 42, section 1396a(aa), and 
22.10 	approved by the Centers for Medicare and Medicaid Services. The alternative payment 
22.11 	methodology shall be 100 percent of cost as determined according to Medicare cost 
22.12 	principles.
22.13 	(g) Effective for services provided on or after January 1, 2021, all claims for payment 
22.14 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
22.15 	commissioner, according to an annual election by the FQHC or rural health clinic, under 
22.16 	the current prospective payment system described in paragraph (f) or the alternative payment 
22.17 	methodology described in paragraph (l), or, upon federal approval, for FQHCs that are also 
22.18 	urban Indian organizations under Title V of the federal Indian Health Improvement Act, as 
22.19 	provided under paragraph (k).
22.20 	(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
22.21 	(1) has nonprofit status as specified in chapter 317A;
22.22 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
22.23 	(3) is established to provide health services to low-income population groups, uninsured, 
22.24 	high-risk and special needs populations, underserved and other special needs populations;
22.25 	(4) employs professional staff at least one-half of which are familiar with the cultural 
22.26 	background of their clients;
22.27 	(5) charges for services on a sliding fee scale designed to provide assistance to 
22.28 	low-income clients based on current poverty income guidelines and family size; and
22.29 	(6) does not restrict access or services because of a client's financial limitations or public 
22.30 	assistance status and provides no-cost care as needed.
22.31 	(i) Effective for services provided on or after January 1, 2015, all claims for payment 
22.32 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
23.1 	commissioner. the commissioner shall determine the most feasible method for paying claims 
23.2 	from the following options:
23.3 	(1) FQHCs and rural health clinics submit claims directly to the commissioner for 
23.4 	payment, and the commissioner provides claims information for recipients enrolled in a 
23.5 	managed care or county-based purchasing plan to the plan, on a regular basis; or
23.6 	(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed 
23.7 	care or county-based purchasing plan to the plan, and those claims are submitted by the 
23.8 	plan to the commissioner for payment to the clinic.
23.9 	(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate 
23.10 	and pay monthly the proposed managed care supplemental payments to clinics, and clinics 
23.11 	shall conduct a timely review of the payment calculation data in order to finalize all 
23.12 	supplemental payments in accordance with federal law. Any issues arising from a clinic's 
23.13 	review must be reported to the commissioner by January 1, 2017. Upon final agreement 
23.14 	between the commissioner and a clinic on issues identified under this subdivision, and in 
23.15 	accordance with United States Code, title 42, section 1396a(bb), no supplemental payments 
23.16 	for managed care plan or county-based purchasing plan claims for services provided prior 
23.17 	to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are 
23.18 	unable to resolve issues under this subdivision, the parties shall submit the dispute to the 
23.19 	arbitration process under section 14.57.
23.20 	(k) The commissioner shall seek a federal waiver, authorized under section 1115 of the 
23.21 	Social Security Act, to obtain federal financial participation at the 100 percent federal 
23.22 	matching percentage available to facilities of the Indian Health Service or tribal organization 
23.23 	in accordance with section 1905(b) of the Social Security Act for expenditures made to 
23.24 	organizations dually certified under Title V of the Indian Health Care Improvement Act, 
23.25 	Public Law 94-437, and as a federally qualified health center under paragraph (a) that
23.26 	provides services to American Indian and Alaskan Native individuals eligible for services 
23.27 	under this subdivision.
23.28 	(k) The commissioner shall establish an encounter payment rate that is equivalent to the 
23.29 	all inclusive rate (AIR) payment established by the Indian Health Service and published in 
23.30 	the Federal Register. The encounter rate must be updated annually and must reflect the 
23.31 	changes in the AIR established by the Indian Health Service each calendar year. FQHCs 
23.32 	that are also urban Indian organizations under Title V of the federal Indian Health 
23.33 	Improvement Act may elect to be paid: (1) at the encounter rate established under this 
23.34 	paragraph; (2) under the alternative payment methodology described in paragraph (l); or 
24.1 	(3) under the federally required prospective payment system described in paragraph (f). 
24.2 	FQHCs that elect to be paid at the encounter rate established under this paragraph must 
24.3 	continue to meet all state and federal requirements related to FQHCs and urban Indian 
24.4 	organizations, and must maintain their statuses as FQHCs and urban Indian organizations.
24.5 	(l) All claims for payment of clinic services provided by FQHCs and rural health clinics, 
24.6 	that have elected to be paid under this paragraph, shall be paid by the commissioner according 
24.7 	to the following requirements:
24.8 	(1) the commissioner shall establish a single medical and single dental organization 
24.9 	encounter rate for each FQHC and rural health clinic when applicable;
24.10 	(2) each FQHC and rural health clinic is eligible for same day reimbursement of one 
24.11 	medical and one dental organization encounter rate if eligible medical and dental visits are 
24.12 	provided on the same day;
24.13 	(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance 
24.14 	with current applicable Medicare cost principles, their allowable costs, including direct 
24.15 	patient care costs and patient-related support services. Nonallowable costs include, but are 
24.16 	not limited to:
24.17 	(i) general social services and administrative costs;
24.18 	(ii) retail pharmacy;
24.19 	(iii) patient incentives, food, housing assistance, and utility assistance;
24.20 	(iv) external lab and x-ray;
24.21 	(v) navigation services;
24.22 	(vi) health care taxes;
24.23 	(vii) advertising, public relations, and marketing;
24.24 	(viii) office entertainment costs, food, alcohol, and gifts;
24.25 	(ix) contributions and donations;
24.26 	(x) bad debts or losses on awards or contracts;
24.27 	(xi) fines, penalties, damages, or other settlements;
24.28 	(xii) fundraising, investment management, and associated administrative costs;
24.29 	(xiii) research and associated administrative costs;
24.30 	(xiv) nonpaid workers;
25.1 	(xv) lobbying;
25.2 	(xvi) scholarships and student aid; and
25.3 	(xvii) nonmedical assistance covered services;
25.4 	(4) the commissioner shall review the list of nonallowable costs in the years between 
25.5 	the rebasing process established in clause (5), in consultation with the Minnesota Association 
25.6 	of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall 
25.7 	publish the list and any updates in the Minnesota health care programs provider manual;
25.8 	(5) the initial applicable base year organization encounter rates for FQHCs and rural 
25.9 	health clinics shall be computed for services delivered on or after January 1, 2021, and:
25.10 	(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports 
25.11 	from 2017 and 2018;
25.12 	(ii) must be according to current applicable Medicare cost principles as applicable to 
25.13 	FQHCs and rural health clinics without the application of productivity screens and upper 
25.14 	payment limits or the Medicare prospective payment system FQHC aggregate mean upper 
25.15 	payment limit;
25.16 	(iii) must be subsequently rebased every two years thereafter using the Medicare cost 
25.17 	reports that are three and four years prior to the rebasing year. Years in which organizational 
25.18 	cost or claims volume is reduced or altered due to a pandemic, disease, or other public health 
25.19 	emergency shall not be used as part of a base year when the base year includes more than 
25.20 	one year. The commissioner may use the Medicare cost reports of a year unaffected by a 
25.21 	pandemic, disease, or other public health emergency, or previous two consecutive years, 
25.22 	inflated to the base year as established under item (iv);
25.23 	(iv) must be inflated to the base year using the inflation factor described in clause (6); 
25.24 	and
25.25 	(v) the commissioner must provide for a 60-day appeals process under section 14.57;
25.26 	(6) the commissioner shall annually inflate the applicable organization encounter rates 
25.27 	for FQHCs and rural health clinics from the base year payment rate to the effective date by 
25.28 	using the CMS FQHC Market Basket inflator established under United States Code, title 
25.29 	42, section 1395m(o), less productivity;
25.30 	(7) FQHCs and rural health clinics that have elected the alternative payment methodology 
25.31 	under this paragraph shall submit all necessary documentation required by the commissioner 
25.32 	to compute the rebased organization encounter rates no later than six months following the 
26.1 	date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid 
26.2 	Services;
26.3 	(8) the commissioner shall reimburse FQHCs and rural health clinics an additional 
26.4 	amount relative to their medical and dental organization encounter rates that is attributable 
26.5 	to the tax required to be paid according to section 295.52, if applicable;
26.6 	(9) FQHCs and rural health clinics may submit change of scope requests to the 
26.7 	commissioner if the change of scope would result in an increase or decrease of 2.5 percent 
26.8 	or higher in the medical or dental organization encounter rate currently received by the 
26.9 	FQHC or rural health clinic;
26.10 	(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner 
26.11 	under clause (9) that requires the approval of the scope change by the federal Health 
26.12 	Resources Services Administration:
26.13 	(i) FQHCs and rural health clinics shall submit the change of scope request, including 
26.14 	the start date of services, to the commissioner within seven business days of submission of 
26.15 	the scope change to the federal Health Resources Services Administration;
26.16 	(ii) the commissioner shall establish the effective date of the payment change as the 
26.17 	federal Health Resources Services Administration date of approval of the FQHC's or rural 
26.18 	health clinic's scope change request, or the effective start date of services, whichever is 
26.19 	later; and
26.20 	(iii) within 45 days of one year after the effective date established in item (ii), the 
26.21 	commissioner shall conduct a retroactive review to determine if the actual costs established 
26.22 	under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in 
26.23 	the medical or dental organization encounter rate, and if this is the case, the commissioner 
26.24 	shall revise the rate accordingly and shall adjust payments retrospectively to the effective 
26.25 	date established in item (ii);
26.26 	(11) for change of scope requests that do not require federal Health Resources Services 
26.27 	Administration approval, the FQHC and rural health clinic shall submit the request to the 
26.28 	commissioner before implementing the change, and the effective date of the change is the 
26.29 	date the commissioner received the FQHC's or rural health clinic's request, or the effective 
26.30 	start date of the service, whichever is later. The commissioner shall provide a response to 
26.31 	the FQHC's or rural health clinic's request within 45 days of submission and provide a final 
26.32 	approval within 120 days of submission. This timeline may be waived at the mutual 
26.33 	agreement of the commissioner and the FQHC or rural health clinic if more information is 
26.34 	needed to evaluate the request;
27.1 	(12) the commissioner, when establishing organization encounter rates for new FQHCs 
27.2 	and rural health clinics, shall consider the patient caseload of existing FQHCs and rural 
27.3 	health clinics in a 60-mile radius for organizations established outside of the seven-county 
27.4 	metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan 
27.5 	area. If this information is not available, the commissioner may use Medicare cost reports 
27.6 	or audited financial statements to establish base rates;
27.7 	(13) the commissioner shall establish a quality measures workgroup that includes 
27.8 	representatives from the Minnesota Association of Community Health Centers, FQHCs, 
27.9 	and rural health clinics, to evaluate clinical and nonclinical measures; and
27.10 	(14) the commissioner shall not disallow or reduce costs that are related to an FQHC's 
27.11 	or rural health clinic's participation in health care educational programs to the extent that 
27.12 	the costs are not accounted for in the alternative payment methodology encounter rate 
27.13 	established in this paragraph.
27.14 	(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health 
27.15 	center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC. 
27.16 	Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to 
27.17 	a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to 
27.18 	comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish 
27.19 	an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses 
27.20 	the same method and rates applicable to a Tribal facility or health center that does not enroll 
27.21 	as a Tribal FQHC.

27.22 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
27.23 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
27.24 	when federal approval is obtained.

27.25 	Sec. 15. Minnesota Statutes 2022, section 256B.0625, subdivision 31, is amended to read:
27.26 		Subd. 31.Medical supplies and equipment. (a) Medical assistance covers medical 
27.27 	supplies and equipment. Separate payment outside of the facility's payment rate shall be 
27.28 	made for wheelchairs and wheelchair accessories for recipients who are residents of 
27.29 	intermediate care facilities for the developmentally disabled. Reimbursement for wheelchairs 
27.30 	and wheelchair accessories for ICF/DD recipients shall be subject to the same conditions 
27.31 	and limitations as coverage for recipients who do not reside in institutions. A wheelchair 
27.32 	purchased outside of the facility's payment rate is the property of the recipient.
28.1 	(b) Vendors of durable medical equipment, prosthetics, orthotics, or medical supplies 
28.2 	must enroll as a Medicare provider.
28.3 	(c) When necessary to ensure access to durable medical equipment, prosthetics, orthotics, 
28.4 	or medical supplies, the commissioner may exempt a vendor from the Medicare enrollment 
28.5 	requirement if:
28.6 	(1) the vendor supplies only one type of durable medical equipment, prosthetic, orthotic, 
28.7 	or medical supply;
28.8 	(2) the vendor serves ten or fewer medical assistance recipients per year;
28.9 	(3) the commissioner finds that other vendors are not available to provide same or similar 
28.10 	durable medical equipment, prosthetics, orthotics, or medical supplies; and
28.11 	(4) the vendor complies with all screening requirements in this chapter and Code of 
28.12 	Federal Regulations, title 42, part 455. The commissioner may also exempt a vendor from 
28.13 	the Medicare enrollment requirement if the vendor is accredited by a Centers for Medicare 
28.14 	and Medicaid Services approved national accreditation organization as complying with the 
28.15 	Medicare program's supplier and quality standards and the vendor serves primarily pediatric 
28.16 	patients.
28.17 	(d) Durable medical equipment means a device or equipment that:
28.18 	(1) can withstand repeated use;
28.19 	(2) is generally not useful in the absence of an illness, injury, or disability; and
28.20 	(3) is provided to correct or accommodate a physiological disorder or physical condition 
28.21 	or is generally used primarily for a medical purpose.
28.22 	(e) Electronic tablets may be considered durable medical equipment if the electronic 
28.23 	tablet will be used as an augmentative and alternative communication system as defined 
28.24 	under subdivision 31a, paragraph (a). To be covered by medical assistance, the device must 
28.25 	be locked in order to prevent use not related to communication.
28.26 	(f) Notwithstanding the requirement in paragraph (e) that an electronic tablet must be 
28.27 	locked to prevent use not as an augmentative communication device, a recipient of waiver 
28.28 	services may use an electronic tablet for a use not related to communication when the 
28.29 	recipient has been authorized under the waiver to receive one or more additional applications 
28.30 	that can be loaded onto the electronic tablet, such that allowing the additional use prevents 
28.31 	the purchase of a separate electronic tablet with waiver funds.
29.1 	(g) An order or prescription for medical supplies, equipment, or appliances must meet 
29.2 	the requirements in Code of Federal Regulations, title 42, part 440.70.
29.3 	(h) Allergen-reducing products provided according to subdivision 67, paragraph (c) or 
29.4 	(d), shall be considered durable medical equipment.
29.5 	(i) Seizure detection devices are covered as durable medical equipment under this 
29.6 	subdivision if:
29.7 	(1) the seizure detection device is medically appropriate based on the recipient's medical 
29.8 	condition or status; and
29.9 	(2) the recipient's health care provider has identified that a seizure detection device 
29.10 	would:
29.11 	(i) likely assist in reducing bodily harm to or death of the recipient as a result of the 
29.12 	recipient experiencing a seizure; or
29.13 	(ii) provide data to the health care provider necessary to appropriately diagnose or treat 
29.14 	a health condition of the recipient that causes the seizure activity.
29.15 	(j) For purposes of paragraph (i), "seizure detection device" means a United States Food 
29.16 	and Drug Administration-approved monitoring device and related service or subscription 
29.17 	supporting the prescribed use of the device, including technology that provides ongoing 
29.18 	patient monitoring and alert services that detect seizure activity and transmit notification 
29.19 	of the seizure activity to a caregiver for appropriate medical response or collects data of the 
29.20 	seizure activity of the recipient that can be used by a health care provider to diagnose or 
29.21 	appropriately treat a health care condition that causes the seizure activity. The medical 
29.22 	assistance reimbursement rate for a subscription supporting the prescribed use of a seizure 
29.23 	detection device is 60 percent of the rate for monthly remote monitoring under the medical 
29.24 	assistance telemonitoring benefit.

29.25 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
29.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
29.27 	when federal approval is obtained.

29.28 	Sec. 16. Minnesota Statutes 2022, section 256B.0625, subdivision 34, is amended to read:
29.29 		Subd. 34.Indian health services facilities. (a) Medical assistance payments and 
29.30 	MinnesotaCare payments to facilities of the Indian health service and facilities operated by 
29.31 	a Tribe or Tribal organization under funding authorized by United States Code, title 25, 
29.32 	sections 450f to 450n, or title III of the Indian Self-Determination and Education Assistance 
30.1 	Act, Public Law 93-638, for enrollees who are eligible for federal financial participation, 
30.2 	shall be at the option of the facility in accordance with the rate published by the United 
30.3 	States Assistant Secretary for Health under the authority of United States Code, title 42, 
30.4 	sections 248(a) and 249(b). MinnesotaCare payments for enrollees who are not eligible for 
30.5 	federal financial participation at facilities of the Indian health service and facilities operated 
30.6 	by a Tribe or Tribal organization for the provision of outpatient medical services must be 
30.7 	in accordance with the medical assistance rates paid for the same services when provided 
30.8 	in a facility other than a facility of the Indian health service or a facility operated by a Tribe 
30.9 	or Tribal organization.
30.10 	(b) Effective upon federal approval, the medical assistance payments to a dually certified 
30.11 	facility as defined in subdivision 30, paragraph (j), shall be the encounter rate described in 
30.12 	paragraph (a) or a rate that is substantially equivalent for services provided to American 
30.13 	Indians and Alaskan Native populations. The rate established under this paragraph for dually 
30.14 	certified facilities shall not apply to MinnesotaCare payments.

30.15 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
30.16 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
30.17 	when federal approval is obtained.

30.18 	Sec. 17. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
30.19 	to read:
30.20 		Subd. 68.Biomarker testing. Medical assistance covers biomarker testing to diagnose, 
30.21 	treat, manage, and monitor illness or disease. Medical assistance coverage must meet the 
30.22 	requirements that would otherwise apply to a health plan under section 62Q.473.

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

30.26 	Sec. 18. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
30.27 	to read:
30.28 		Subd. 69.Recuperative care services. Medical assistance covers recuperative care 
30.29 	services according to section 256B.0701.

30.30 	EFFECTIVE DATE. This section is effective January 1, 2024.

31.1 	Sec. 19. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
31.2 	to read:
31.3 		Subd. 70.Coverage of services for the diagnosis, monitoring, and treatment of rare 
31.4 	diseases. (a) Medical assistance covers services related to the diagnosis, monitoring, and 
31.5 	treatment of a rare disease or condition. Medical assistance coverage for these services must 
31.6 	meet the requirements in section 62Q.451.
31.7 	(b) Coverage for a service must not be denied solely on the basis that it was provided 
31.8 	by, referred for, or ordered by an out-of-network provider.
31.9 	(c) Any prior authorization requirements for a service that is provided by, referred for, 
31.10 	or ordered by an out-of-network provider must be the same as any prior authorization 
31.11 	requirements for a service that is provided by, referred for, or ordered by an in-network 
31.12 	provider.
31.13 	(d) Nothing in this subdivision requires a managed care or county-based purchasing plan 
31.14 	to provide coverage for a service that is not covered under medical assistance.

31.15 	EFFECTIVE DATE. This section is effective January 1, 2024.

31.16 	Sec. 20. Minnesota Statutes 2022, section 256B.0625, is amended by adding a subdivision 
31.17 	to read:
31.18 		Subd. 71.Coverage and payment for pharmacy services. (a) Medical assistance covers 
31.19 	medical treatment or services provided by a licensed pharmacist, to the extent the medical 
31.20 	treatment or services are within the pharmacist's scope of practice, if medical assistance 
31.21 	covers the same medical treatment or services provided by a licensed physician. This 
31.22 	requirement applies to services provided (1) under fee-for-service medical assistance, and 
31.23 	(2) by a managed care plan under section 256B.69 or a county-based purchasing plan under 
31.24 	section 256B.692.
31.25 	(b) The commissioner, and managed care and county-based purchasing plans when 
31.26 	providing services under sections 256B.69 and 256B.692, must reimburse a participating 
31.27 	pharmacist or pharmacy for a service that is also within a physician's scope of practice at 
31.28 	an amount no lower than the standard payment rate that would be applied when reimbursing 
31.29 	a physician for the service.

31.30 	EFFECTIVE DATE. This section is effective January 1, 2025, or upon federal approval, 
31.31 	whichever is later. The commissioner of human services must notify the revisor of statutes 
31.32 	when federal approval is obtained.

32.1 	Sec. 21. Minnesota Statutes 2022, section 256B.0631, subdivision 2, is amended to read:
32.2 		Subd. 2.Exceptions. Co-payments and deductibles shall be subject to the following 
32.3 	exceptions:
32.4 	(1) children under the age of 21;
32.5 	(2) pregnant women for services that relate to the pregnancy or any other medical 
32.6 	condition that may complicate the pregnancy;
32.7 	(3) recipients expected to reside for at least 30 days in a hospital, nursing home, or 
32.8 	intermediate care facility for the developmentally disabled;
32.9 	(4) recipients receiving hospice care;
32.10 	(5) 100 percent federally funded services provided by an Indian health service;
32.11 	(6) emergency services;
32.12 	(7) family planning services, including but not limited to the placement and removal of 
32.13 	long-acting reversible contraceptives;
32.14 	(8) services that are paid by Medicare, resulting in the medical assistance program paying 
32.15 	for the coinsurance and deductible;
32.16 	(9) co-payments that exceed one per day per provider for nonpreventive visits, eyeglasses, 
32.17 	and nonemergency visits to a hospital-based emergency room;
32.18 	(10) services, fee-for-service payments subject to volume purchase through competitive 
32.19 	bidding;
32.20 	(11) American Indians who meet the requirements in Code of Federal Regulations, title 
32.21 	42, sections 447.51 and 447.56;
32.22 	(12) persons needing treatment for breast or cervical cancer as described under section 
32.23 	256B.057, subdivision 10; and
32.24 	(13) services that currently have a rating of A or B from the United States Preventive 
32.25 	Services Task Force (USPSTF), immunizations recommended by the Advisory Committee 
32.26 	on Immunization Practices of the Centers for Disease Control and Prevention, and preventive 
32.27 	services and screenings provided to women as described in Code of Federal Regulations, 
32.28 	title 45, section 147.130.; and
32.29 	(14) additional diagnostic services or testing that a health care provider determines an 
32.30 	enrollee requires after a mammogram, as specified under section 62A.30, subdivision 5.

32.31 	EFFECTIVE DATE. This section is effective January 1, 2024.

33.1 	Sec. 22. [256B.0701] RECUPERATIVE CARE SERVICES.
33.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
33.3 	the meanings given.
33.4 	(b) "Provider" means a recuperative care provider as defined by the standards established 
33.5 	by the National Institute for Medical Respite Care.
33.6 	(c) "Recuperative care" means a model of care that prevents hospitalization or that 
33.7 	provides postacute medical care and support services for recipients experiencing 
33.8 	homelessness who are too ill or frail to recover from a physical illness or injury while living 
33.9 	in a shelter or are otherwise unhoused but who are not sick enough to be hospitalized or 
33.10 	remain hospitalized, or to need other levels of care.
33.11 		Subd. 2.Recuperative care settings. Recuperative care may be provided in any setting, 
33.12 	including but not limited to homeless shelters, congregate care settings, single room 
33.13 	occupancy settings, or supportive housing, so long as the provider of recuperative care or 
33.14 	provider of housing is able to provide to the recipient within the designated setting, at a 
33.15 	minimum:
33.16 	(1) 24-hour access to a bed and bathroom;
33.17 	(2) access to three meals a day;
33.18 	(3) availability to environmental services;
33.19 	(4) access to a telephone;
33.20 	(5) a secure place to store belongings; and
33.21 	(6) staff available within the setting to provide a wellness check as needed, but at a 
33.22 	minimum, at least once every 24 hours.
33.23 		Subd. 3.Eligibility. To be eligible for recuperative care service, a recipient must:
33.24 	(1) be 21 years of age or older;
33.25 	(2) be experiencing homelessness;
33.26 	(3) be in need of short-term acute medical care for a period of no more than 60 days;
33.27 	(4) meet clinical criteria, as established by the commissioner, that indicates that the 
33.28 	recipient needs recuperative care; and
33.29 	(5) not have behavioral health needs that are greater than what can be managed by the 
33.30 	provider within the setting.
34.1 		Subd. 4.Total payment rates. Total payment rates for recuperative care consist of the 
34.2 	recuperative care services rate and the recuperative care facility rate.
34.3 		Subd. 5.Recuperative care services rate. The recuperative care services rate is for the 
34.4 	services provided to the recipient and must be a bundled daily per diem payment of at least 
34.5 	$300 per day. Services provided within the bundled payment may include but are not limited 
34.6 	to:
34.7 	(1) basic nursing care, including:
34.8 	(i) monitoring a patient's physical health and pain level;
34.9 	(ii) providing wound care;
34.10 	(iii) medication support;
34.11 	(iv) patient education;
34.12 	(v) immunization review and update; and
34.13 	(vi) establishing clinical goals for the recuperative care period and discharge plan;
34.14 	(2) care coordination, including:
34.15 	(i) initial assessment of medical, behavioral, and social needs;
34.16 	(ii) development of a care plan;
34.17 	(iii) support and referral assistance for legal services, housing, community social services, 
34.18 	case management, health care benefits, health and other eligible benefits, and transportation 
34.19 	needs and services; and
34.20 	(iv) monitoring and follow-up to ensure that the care plan is effectively implemented to 
34.21 	address the medical, behavioral, and social needs;
34.22 	(3) basic behavioral needs, including counseling and peer support, that can be provided 
34.23 	in this recuperative care setting; and
34.24 	(4) services provided by a community health worker as defined under section 256B.0625, 
34.25 	subdivision 49.
34.26 		Subd. 6.Recuperative care facility rate. (a) The recuperative care facility rate is for 
34.27 	facility costs and must be paid from state money in an amount equal to the medical assistance 
34.28 	room and board rate at the time the recuperative care services were provided. The eligibility 
34.29 	standards in chapter 256I do not apply to the recuperative care facility rate. The recuperative 
34.30 	care facility rate is only paid when the recuperative care services rate is paid to a provider. 
34.31 	Providers may opt to only receive the recuperative care services rate.
35.1 	(b) Before a recipient is discharged from a recuperative care setting, the provider must 
35.2 	ensure that the recipient's acute medical condition is stabilized or that the recipient is being 
35.3 	discharged to a setting that is able to meet that recipient's needs.
35.4 		Subd. 7.Extended stay. If a recipient requires care exceeding the 60-day limit described 
35.5 	in subdivision 3, the provider may request in a format prescribed by the commissioner an 
35.6 	extension to continue payments until the recipient is discharged.
35.7 		Subd. 8.Report. (a) The commissioner must submit an initial report to the chairs and 
35.8 	ranking minority members of the legislative committees having jurisdiction over health and 
35.9 	human services by February 1, 2025, and a final report by February 1, 2027, on coverage 
35.10 	of recuperative care services. The reports must include but are not limited to:
35.11 	(1) a list of the recuperative care services in Minnesota and the number of recipients;
35.12 	(2) the estimated return on investment, including health care savings due to reduced 
35.13 	hospitalizations;
35.14 	(3) follow-up information, if available, on whether recipients' hospital visits decreased 
35.15 	since recuperative care services were provided compared to before the services were 
35.16 	provided; and
35.17 	(4) any other information that can be used to determine the effectiveness of the program 
35.18 	and its funding, including recommendations for improvements to the program.
35.19 	(b) This subdivision expires upon submission of the final report.

35.20 	EFFECTIVE DATE. This section is effective January 1, 2024.

35.21 	Sec. 23. Minnesota Statutes 2022, section 256B.196, subdivision 2, is amended to read:
35.22 		Subd. 2.Commissioner's duties. (a) For the purposes of this subdivision and subdivision 
35.23 	3, the commissioner shall determine the fee-for-service outpatient hospital services upper 
35.24 	payment limit for nonstate government hospitals. The commissioner shall then determine 
35.25 	the amount of a supplemental payment to Hennepin County Medical Center and Regions 
35.26 	Hospital for these services that would increase medical assistance spending in this category 
35.27 	to the aggregate upper payment limit for all nonstate government hospitals in Minnesota. 
35.28 	In making this determination, the commissioner shall allot the available increases between 
35.29 	Hennepin County Medical Center and Regions Hospital based on the ratio of medical 
35.30 	assistance fee-for-service outpatient hospital payments to the two facilities. The commissioner 
35.31 	shall adjust this allotment as necessary based on federal approvals, the amount of 
35.32 	intergovernmental transfers received from Hennepin and Ramsey Counties, and other factors, 
36.1 	in order to maximize the additional total payments. The commissioner shall inform Hennepin 
36.2 	County and Ramsey County of the periodic intergovernmental transfers necessary to match 
36.3 	federal Medicaid payments available under this subdivision in order to make supplementary 
36.4 	medical assistance payments to Hennepin County Medical Center and Regions Hospital 
36.5 	equal to an amount that when combined with existing medical assistance payments to 
36.6 	nonstate governmental hospitals would increase total payments to hospitals in this category 
36.7 	for outpatient services to the aggregate upper payment limit for all hospitals in this category 
36.8 	in Minnesota. Upon receipt of these periodic transfers, the commissioner shall make 
36.9 	supplementary payments to Hennepin County Medical Center and Regions Hospital.
36.10 	(b) For the purposes of this subdivision and subdivision 3, the commissioner shall 
36.11 	determine an upper payment limit for physicians and other billing professionals affiliated 
36.12 	with Hennepin County Medical Center and with Regions Hospital. The upper payment limit 
36.13 	shall be based on the average commercial rate or be determined using another method 
36.14 	acceptable to the Centers for Medicare and Medicaid Services. The commissioner shall 
36.15 	inform Hennepin County and Ramsey County of the periodic intergovernmental transfers 
36.16 	necessary to match the federal Medicaid payments available under this subdivision in order 
36.17 	to make supplementary payments to physicians and other billing professionals affiliated 
36.18 	with Hennepin County Medical Center and to make supplementary payments to physicians 
36.19 	and other billing professionals affiliated with Regions Hospital through HealthPartners 
36.20 	Medical Group equal to the difference between the established medical assistance payment 
36.21 	for physician and other billing professional services and the upper payment limit. Upon 
36.22 	receipt of these periodic transfers, the commissioner shall make supplementary payments 
36.23 	to physicians and other billing professionals affiliated with Hennepin County Medical Center 
36.24 	and shall make supplementary payments to physicians and other billing professionals 
36.25 	affiliated with Regions Hospital through HealthPartners Medical Group.
36.26 	(c) Beginning January 1, 2010, Ramsey County may make monthly voluntary 
36.27 	intergovernmental transfers to the commissioner in amounts not to exceed $6,000,000 per 
36.28 	year. The commissioner shall increase the medical assistance capitation payments to any 
36.29 	licensed health plan under contract with the medical assistance program that agrees to make 
36.30 	enhanced payments to Regions Hospital. The increase shall be in an amount equal to the 
36.31 	annual value of the monthly transfers plus federal financial participation, with each health 
36.32 	plan receiving its pro rata share of the increase based on the pro rata share of medical 
36.33 	assistance admissions to Regions Hospital by those plans. For the purposes of this paragraph, 
36.34 	"the base amount" means the total annual value of increased medical assistance capitation 
36.35 	payments, including the voluntary intergovernmental transfers, under this paragraph in 
37.1 	calendar year 2017. For managed care contracts beginning on or after January 1, 2018, the 
37.2 	commissioner shall reduce the total annual value of increased medical assistance capitation 
37.3 	payments under this paragraph by an amount equal to ten percent of the base amount, and 
37.4 	by an additional ten percent of the base amount for each subsequent contract year until 
37.5 	December 31, 2025. Upon the request of the commissioner, health plans shall submit 
37.6 	individual-level cost data for verification purposes. The commissioner may ratably reduce 
37.7 	these payments on a pro rata basis in order to satisfy federal requirements for actuarial 
37.8 	soundness. If payments are reduced, transfers shall be reduced accordingly. Any licensed 
37.9 	health plan that receives increased medical assistance capitation payments under the 
37.10 	intergovernmental transfer described in this paragraph shall increase its medical assistance 
37.11 	payments to Regions Hospital by the same amount as the increased payments received in 
37.12 	the capitation payment described in this paragraph. This paragraph expires January 1, 2026.
37.13 	(d) For the purposes of this subdivision and subdivision 3, the commissioner shall 
37.14 	determine an upper payment limit for ambulance services affiliated with Hennepin County 
37.15 	Medical Center and the city of St. Paul, and ambulance services owned and operated by 
37.16 	another governmental entity that chooses to participate by requesting the commissioner to 
37.17 	determine an upper payment limit. The upper payment limit shall be based on the average 
37.18 	commercial rate or be determined using another method acceptable to the Centers for 
37.19 	Medicare and Medicaid Services. The commissioner shall inform Hennepin County, the 
37.20 	city of St. Paul, and other participating governmental entities of the periodic 
37.21 	intergovernmental transfers necessary to match the federal Medicaid payments available 
37.22 	under this subdivision in order to make supplementary payments to Hennepin County 
37.23 	Medical Center, the city of St. Paul, and other participating governmental entities equal to 
37.24 	the difference between the established medical assistance payment for ambulance services 
37.25 	and the upper payment limit. Upon receipt of these periodic transfers, the commissioner 
37.26 	shall make supplementary payments to Hennepin County Medical Center, the city of St. 
37.27 	Paul, and other participating governmental entities. A Tribal government that owns and 
37.28 	operates an ambulance service is not eligible to participate under this subdivision.
37.29 	(e) For the purposes of this subdivision and subdivision 3, the commissioner shall 
37.30 	determine an upper payment limit for physicians, dentists, and other billing professionals 
37.31 	affiliated with the University of Minnesota and University of Minnesota Physicians. The 
37.32 	upper payment limit shall be based on the average commercial rate or be determined using 
37.33 	another method acceptable to the Centers for Medicare and Medicaid Services. The 
37.34 	commissioner shall inform the University of Minnesota Medical School and University of 
37.35 	Minnesota School of Dentistry of the periodic intergovernmental transfers necessary to 
38.1 	match the federal Medicaid payments available under this subdivision in order to make 
38.2 	supplementary payments to physicians, dentists, and other billing professionals affiliated 
38.3 	with the University of Minnesota and the University of Minnesota Physicians equal to the 
38.4 	difference between the established medical assistance payment for physician, dentist, and 
38.5 	other billing professional services and the upper payment limit. Upon receipt of these periodic 
38.6 	transfers, the commissioner shall make supplementary payments to physicians, dentists, 
38.7 	and other billing professionals affiliated with the University of Minnesota and the University 
38.8 	of Minnesota Physicians.
38.9 	(f) The commissioner shall inform the transferring governmental entities on an ongoing 
38.10 	basis of the need for any changes needed in the intergovernmental transfers in order to 
38.11 	continue the payments under paragraphs (a) to (e), at their maximum level, including 
38.12 	increases in upper payment limits, changes in the federal Medicaid match, and other factors.
38.13 	(g) The payments in paragraphs (a) to (e) shall be implemented independently of each 
38.14 	other, subject to federal approval and to the receipt of transfers under subdivision 3.
38.15 	(h) All of the data and funding transactions related to the payments in paragraphs (a) to 
38.16 	(e) shall be between the commissioner and the governmental entities. The commissioner 
38.17 	shall not make payments to governmental entities eligible to receive payments described 
38.18 	in paragraphs (a) to (e) that fail to submit the data needed to compute the payments within 
38.19 	24 months of the initial request from the commissioner.
38.20 	(i) For purposes of this subdivision, billing professionals are limited to physicians, nurse 
38.21 	practitioners, nurse midwives, clinical nurse specialists, physician assistants, 
38.22 	anesthesiologists, certified registered nurse anesthetists, dentists, dental hygienists, and 
38.23 	dental therapists.

38.24 	EFFECTIVE DATE. This section is effective July 1, 2023.

38.25 	Sec. 24. Minnesota Statutes 2022, section 256B.69, subdivision 4, is amended to read:
38.26 		Subd. 4.Limitation of choice; opportunity to opt out. (a) The commissioner shall 
38.27 	develop criteria to determine when limitation of choice may be implemented in the 
38.28 	experimental counties, but shall provide all eligible individuals the opportunity to opt out 
38.29 	of enrollment in managed care under this section. The criteria shall ensure that all eligible 
38.30 	individuals in the county have continuing access to the full range of medical assistance 
38.31 	services as specified in subdivision 6.
38.32 	(b) The commissioner shall exempt the following persons from participation in the 
38.33 	project, in addition to those who do not meet the criteria for limitation of choice:
39.1 	(1) persons eligible for medical assistance according to section 256B.055, subdivision 
39.2 	1;
39.3 	(2) persons eligible for medical assistance due to blindness or disability as determined 
39.4 	by the Social Security Administration or the state medical review team, unless:
39.5 	(i) they are 65 years of age or older; or
39.6 	(ii) they reside in Itasca County or they reside in a county in which the commissioner 
39.7 	conducts a pilot project under a waiver granted pursuant to section 1115 of the Social 
39.8 	Security Act;
39.9 	(3) recipients who currently have private coverage through a health maintenance 
39.10 	organization;
39.11 	(4) recipients who are eligible for medical assistance by spending down excess income 
39.12 	for medical expenses other than the nursing facility per diem expense;
39.13 	(5) recipients who receive benefits under the Refugee Assistance Program, established 
39.14 	under United States Code, title 8, section 1522(e);
39.15 	(6) children who are both determined to be severely emotionally disturbed and receiving 
39.16 	case management services according to section 256B.0625, subdivision 20, except children 
39.17 	who are eligible for and who decline enrollment in an approved preferred integrated network 
39.18 	under section 245.4682;
39.19 	(7) adults who are both determined to be seriously and persistently mentally ill and 
39.20 	received case management services according to section 256B.0625, subdivision 20;
39.21 	(8) persons eligible for medical assistance according to section 256B.057, subdivision 
39.22 	10;
39.23 	(9) persons with access to cost-effective employer-sponsored private health insurance 
39.24 	or persons enrolled in a non-Medicare individual health plan determined to be cost-effective 
39.25 	according to section 256B.0625, subdivision 15; and
39.26 	(10) persons who are absent from the state for more than 30 consecutive days but still 
39.27 	deemed a resident of Minnesota, identified in accordance with section 256B.056, subdivision 
39.28 	1, paragraph (b).
39.29 	Children under age 21 who are in foster placement may enroll in the project on an elective 
39.30 	basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an elective 
39.31 	basis. The commissioner may enroll recipients in the prepaid medical assistance program 
40.1 	for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by spending 
40.2 	down excess income.
40.3 	(c) The commissioner may allow persons with a one-month spenddown who are otherwise 
40.4 	eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay their monthly 
40.5 	spenddown to the state.
40.6 	(d) The commissioner may require, subject to the opt-out provision under paragraph (a),
40.7 	those individuals to enroll in the prepaid medical assistance program who otherwise would 
40.8 	have been excluded under paragraph (b), clauses (1), (3), and (8), and under Minnesota 
40.9 	Rules, part 9500.1452, subpart 2, items H, K, and L.
40.10 	(e) Before limitation of choice is implemented, eligible individuals shall be notified and 
40.11 	given the opportunity to opt out of managed care enrollment. After notification, those 
40.12 	individuals who choose not to opt out shall be allowed to choose only among demonstration 
40.13 	providers. The commissioner may assign an individual with private coverage through a 
40.14 	health maintenance organization, to the same health maintenance organization for medical 
40.15 	assistance coverage, if the health maintenance organization is under contract for medical 
40.16 	assistance in the individual's county of residence. After initially choosing a provider, the 
40.17 	recipient is allowed to change that choice only at specified times as allowed by the 
40.18 	commissioner. If a demonstration provider ends participation in the project for any reason, 
40.19 	a recipient enrolled with that provider must select a new provider but may change providers 
40.20 	without cause once more within the first 60 days after enrollment with the second provider.
40.21 	(f) An infant born to a woman who is eligible for and receiving medical assistance and 
40.22 	who is enrolled in the prepaid medical assistance program shall be retroactively enrolled to 
40.23 	the month of birth in the same managed care plan as the mother once the child is enrolled 
40.24 	in medical assistance unless the child is determined to be excluded from enrollment in a 
40.25 	prepaid plan under this section.

40.26 	EFFECTIVE DATE. This section is effective January 1, 2024.

40.27 	Sec. 25. Minnesota Statutes 2022, section 256B.69, subdivision 5a, is amended to read:
40.28 		Subd. 5a.Managed care contracts. (a) Managed care contracts under this section and 
40.29 	section 256L.12 shall be entered into or renewed on a calendar year basis. The commissioner 
40.30 	may issue separate contracts with requirements specific to services to medical assistance 
40.31 	recipients age 65 and older.
40.32 	(b) A prepaid health plan providing covered health services for eligible persons pursuant 
40.33 	to chapters 256B and 256L is responsible for complying with the terms of its contract with 
41.1 	the commissioner. Requirements applicable to managed care programs under chapters 256B 
41.2 	and 256L established after the effective date of a contract with the commissioner take effect 
41.3 	when the contract is next issued or renewed.
41.4 	(c) The commissioner shall withhold five percent of managed care plan payments under 
41.5 	this section and county-based purchasing plan payments under section 256B.692 for the 
41.6 	prepaid medical assistance program pending completion of performance targets. Each 
41.7 	performance target must be quantifiable, objective, measurable, and reasonably attainable, 
41.8 	except in the case of a performance target based on a federal or state law or rule. Criteria 
41.9 	for assessment of each performance target must be outlined in writing prior to the contract 
41.10 	effective date. Clinical or utilization performance targets and their related criteria must 
41.11 	consider evidence-based research and reasonable interventions when available or applicable 
41.12 	to the populations served, and must be developed with input from external clinical experts 
41.13 	and stakeholders, including managed care plans, county-based purchasing plans, and 
41.14 	providers. The managed care or county-based purchasing plan must demonstrate, to the 
41.15 	commissioner's satisfaction, that the data submitted regarding attainment of the performance 
41.16 	target is accurate. The commissioner shall periodically change the administrative measures 
41.17 	used as performance targets in order to improve plan performance across a broader range 
41.18 	of administrative services. The performance targets must include measurement of plan 
41.19 	efforts to contain spending on health care services and administrative activities. The 
41.20 	commissioner may adopt plan-specific performance targets that take into account factors 
41.21 	affecting only one plan, including characteristics of the plan's enrollee population. The 
41.22 	withheld funds must be returned no sooner than July of the following year if performance 
41.23 	targets in the contract are achieved. The commissioner may exclude special demonstration 
41.24 	projects under subdivision 23.
41.25 	(d) The commissioner shall require that managed care plans:
41.26 	(1) use the assessment and authorization processes, forms, timelines, standards, 
41.27 	documentation, and data reporting requirements, protocols, billing processes, and policies 
41.28 	consistent with medical assistance fee-for-service or the Department of Human Services 
41.29 	contract requirements for all personal care assistance services under section 256B.0659 and 
41.30 	community first services and supports under section 256B.85; and
41.31 	(2) by January 30 of each year that follows a rate increase for any aspect of services 
41.32 	under section 256B.0659 or 256B.85, inform the commissioner and the chairs and ranking 
41.33 	minority members of the legislative committees with jurisdiction over rates determined 
41.34 	under section 256B.851 of the amount of the rate increase that is paid to each personal care 
41.35 	assistance provider agency with which the plan has a contract.
42.1 	(e) Effective for services rendered on or after January 1, 2012, the commissioner shall 
42.2 	include as part of the performance targets described in paragraph (c) a reduction in the health 
42.3 	plan's emergency department utilization rate for medical assistance and MinnesotaCare 
42.4 	enrollees, as determined by the commissioner. For 2012, the reduction shall be based on 
42.5 	the health plan's utilization in 2009. To earn the return of the withhold each subsequent 
42.6 	year, the managed care plan or county-based purchasing plan must achieve a qualifying 
42.7 	reduction of no less than ten percent of the plan's emergency department utilization rate for 
42.8 	medical assistance and MinnesotaCare enrollees, excluding enrollees in programs described 
42.9 	in subdivisions 23 and 28, compared to the previous measurement year until the final 
42.10 	performance target is reached. When measuring performance, the commissioner must 
42.11 	consider the difference in health risk in a managed care or county-based purchasing plan's 
42.12 	membership in the baseline year compared to the measurement year, and work with the 
42.13 	managed care or county-based purchasing plan to account for differences that they agree 
42.14 	are significant.
42.15 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
42.16 	the following calendar year if the managed care plan or county-based purchasing plan 
42.17 	demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate 
42.18 	was achieved. The commissioner shall structure the withhold so that the commissioner 
42.19 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
42.20 	in utilization less than the targeted amount.
42.21 	The withhold described in this paragraph shall continue for each consecutive contract 
42.22 	period until the plan's emergency room utilization rate for state health care program enrollees 
42.23 	is reduced by 25 percent of the plan's emergency room utilization rate for medical assistance 
42.24 	and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate with the 
42.25 	health plans in meeting this performance target and shall accept payment withholds that 
42.26 	may be returned to the hospitals if the performance target is achieved.
42.27 	(f) Effective for services rendered on or after January 1, 2012, the commissioner shall 
42.28 	include as part of the performance targets described in paragraph (c) a reduction in the plan's 
42.29 	hospitalization admission rate for medical assistance and MinnesotaCare enrollees, as 
42.30 	determined by the commissioner. To earn the return of the withhold each year, the managed 
42.31 	care plan or county-based purchasing plan must achieve a qualifying reduction of no less 
42.32 	than five percent of the plan's hospital admission rate for medical assistance and 
42.33 	MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and 
42.34 	28, compared to the previous calendar year until the final performance target is reached. 
42.35 	When measuring performance, the commissioner must consider the difference in health risk 
43.1 	in a managed care or county-based purchasing plan's membership in the baseline year 
43.2 	compared to the measurement year, and work with the managed care or county-based 
43.3 	purchasing plan to account for differences that they agree are significant.
43.4 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
43.5 	the following calendar year if the managed care plan or county-based purchasing plan 
43.6 	demonstrates to the satisfaction of the commissioner that this reduction in the hospitalization 
43.7 	rate was achieved. The commissioner shall structure the withhold so that the commissioner 
43.8 	returns a portion of the withheld funds in amounts commensurate with achieved reductions 
43.9 	in utilization less than the targeted amount.
43.10 	The withhold described in this paragraph shall continue until there is a 25 percent 
43.11 	reduction in the hospital admission rate compared to the hospital admission rates in calendar 
43.12 	year 2011, as determined by the commissioner. The hospital admissions in this performance 
43.13 	target do not include the admissions applicable to the subsequent hospital admission 
43.14 	performance target under paragraph (g). Hospitals shall cooperate with the plans in meeting 
43.15 	this performance target and shall accept payment withholds that may be returned to the 
43.16 	hospitals if the performance target is achieved.
43.17 	(g) Effective for services rendered on or after January 1, 2012, the commissioner shall 
43.18 	include as part of the performance targets described in paragraph (c) a reduction in the plan's 
43.19 	hospitalization admission rates for subsequent hospitalizations within 30 days of a previous 
43.20 	hospitalization of a patient regardless of the reason, for medical assistance and MinnesotaCare 
43.21 	enrollees, as determined by the commissioner. To earn the return of the withhold each year, 
43.22 	the managed care plan or county-based purchasing plan must achieve a qualifying reduction 
43.23 	of the subsequent hospitalization rate for medical assistance and MinnesotaCare enrollees, 
43.24 	excluding enrollees in programs described in subdivisions 23 and 28, of no less than five 
43.25 	percent compared to the previous calendar year until the final performance target is reached.
43.26 	The withheld funds must be returned no sooner than July 1 and no later than July 31 of 
43.27 	the following calendar year if the managed care plan or county-based purchasing plan 
43.28 	demonstrates to the satisfaction of the commissioner that a qualifying reduction in the 
43.29 	subsequent hospitalization rate was achieved. The commissioner shall structure the withhold 
43.30 	so that the commissioner returns a portion of the withheld funds in amounts commensurate 
43.31 	with achieved reductions in utilization less than the targeted amount.
43.32 	The withhold described in this paragraph must continue for each consecutive contract 
43.33 	period until the plan's subsequent hospitalization rate for medical assistance and 
43.34 	MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23 and 
44.1 	28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar year 
44.2 	2011. Hospitals shall cooperate with the plans in meeting this performance target and shall 
44.3 	accept payment withholds that must be returned to the hospitals if the performance target 
44.4 	is achieved.
44.5 	(h) (e) Effective for services rendered on or after January 1, 2013, through December 
44.6 	31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under 
44.7 	this section and county-based purchasing plan payments under section 256B.692 for the 
44.8 	prepaid medical assistance program. The withheld funds must be returned no sooner than 
44.9 	July 1 and no later than July 31 of the following year. The commissioner may exclude 
44.10 	special demonstration projects under subdivision 23.
44.11 	(i)(f) Effective for services rendered on or after January 1, 2014, the commissioner shall 
44.12 	withhold three percent of managed care plan payments under this section and county-based 
44.13 	purchasing plan payments under section 256B.692 for the prepaid medical assistance 
44.14 	program. The withheld funds must be returned no sooner than July 1 and no later than July 
44.15 	31 of the following year. The commissioner may exclude special demonstration projects 
44.16 	under subdivision 23.
44.17 	(j) (g) A managed care plan or a county-based purchasing plan under section 256B.692 
44.18 	may include as admitted assets under section 62D.044 any amount withheld under this 
44.19 	section that is reasonably expected to be returned.
44.20 	(k) (h) Contracts between the commissioner and a prepaid health plan are exempt from 
44.21 	the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), 
44.22 	and 7.
44.23 	(l) (i) The return of the withhold under paragraphs (h) and (i) is not subject to the 
44.24 	requirements of paragraph (c).
44.25 	(m) (j) Managed care plans and county-based purchasing plans shall maintain current 
44.26 	and fully executed agreements for all subcontractors, including bargaining groups, for 
44.27 	administrative services that are expensed to the state's public health care programs. 
44.28 	Subcontractor agreements determined to be material, as defined by the commissioner after 
44.29 	taking into account state contracting and relevant statutory requirements, must be in the 
44.30 	form of a written instrument or electronic document containing the elements of offer, 
44.31 	acceptance, consideration, payment terms, scope, duration of the contract, and how the 
44.32 	subcontractor services relate to state public health care programs. Upon request, the 
44.33 	commissioner shall have access to all subcontractor documentation under this paragraph. 
45.1 	Nothing in this paragraph shall allow release of information that is nonpublic data pursuant 
45.2 	to section 13.02.

45.3 	EFFECTIVE DATE. This section is effective January 1, 2025.

45.4 	Sec. 26. Minnesota Statutes 2022, section 256B.69, subdivision 6d, is amended to read:
45.5 		Subd. 6d.Prescription drugs. (a) The commissioner may shall exclude or modify 
45.6 	coverage for outpatient prescription drugs dispensed by a pharmacy to a medical assistance  
45.7 	enrollee from the prepaid managed care contracts entered into under this section in order 
45.8 	to increase savings to the state by collecting additional prescription drug rebates. The 
45.9 	contracts must maintain incentives for the managed care plan to manage drug costs and 
45.10 	utilization and may require that the managed care plans maintain an open drug formulary. 
45.11 	In order to manage drug costs and utilization, the contracts may authorize the managed care 
45.12 	plans to use preferred drug lists and prior authorization. This subdivision is contingent on 
45.13 	federal approval of the managed care contract changes and the collection of additional 
45.14 	prescription drug rebates. The commissioner may include, exclude, or modify coverage for 
45.15 	outpatient prescription drugs dispensed by a pharmacy and administered to a  MinnesotaCare 
45.16 	enrollee from the prepaid managed care contracts entered into under this section.
45.17 	(b) Managed care plans and county-based purchasing plans must reimburse pharmacies 
45.18 	for outpatient drugs dispensed to enrollees as follows:
45.19 	(1) for brand name drugs or multisource brand name drugs prescribed in accordance 
45.20 	with Code of Federal Regulations, title 42, section 447.512(c), a dispensing fee equal to 
45.21 	one-half of the fee-for-service dispensing fee in section 256B.0625, subdivision 13e, 
45.22 	paragraph (a), plus the lesser of the National Average Drug Acquisition Cost for brand name 
45.23 	drugs; the Wholesale Acquisition Cost minus two percent; the maximum allowable cost as 
45.24 	defined in chapter 62W; or the submitted charges;
45.25 	(2) for generic drugs or multisource brand name drugs, unless the multisource brand 
45.26 	name drug is prescribed in accordance with Code of Federal Regulations, title 42, section 
45.27 	447.512(c), a dispensing fee equal to one-half of the fee-for-service dispensing fee in section 
45.28 	256B.0625, subdivision 13e, paragraph (a), plus the lesser of the National Average Drug 
45.29 	Acquisition Cost for brand drugs; the National Average Drug Acquisition Cost for generic 
45.30 	drugs; the Wholesale Acquisition Cost minus two percent; the maximum allowable cost; 
45.31 	or the submitted charges;
45.32 	(3) for drugs purchased through the 340B drug program, as allowed in section 62W.07, 
45.33 	managed care plans and county-based purchasing plans may pay a rate less than the rate 
46.1 	under clause (1) for brand name drugs or less than the rate under clause (2) for generic 
46.2 	drugs, but are not required to apply the 340B drug ceiling price limit in section 256B.0625, 
46.3 	subdivision 13e; and
46.4 	(4) for charges submitted by a pharmacy that are less than the rate under clause (1) for 
46.5 	brand name drugs or less than the rate under clause (2) for generic drugs, managed care 
46.6 	plans and county-based purchasing plans may pay a lower rate equal to the submitted 
46.7 	charges.
46.8 	(c) Contracts between managed care plans and county-based purchasing plans and 
46.9 	providers to whom paragraph (b) applies must allow recovery of payments from those 
46.10 	providers if capitation rates are adjusted in accordance with paragraph (b). Payment 
46.11 	recoveries must not exceed an amount equal to any increase in rates that results from 
46.12 	paragraph (b). Paragraph (b) must not be implemented if federal approval is not received 
46.13 	for paragraph (b), or if federal approval is withdrawn at any time.

46.14 	EFFECTIVE DATE. The amendments to paragraph (a) are effective January 1, 2026, 
46.15 	or the January 1 following certification of the modernized pharmacy claims processing 
46.16 	system, whichever is later. Paragraphs (b) and (c) are effective January 1, 2024, or upon 
46.17 	federal approval, whichever is later. The commissioner must inform the revisor of statutes 
46.18 	when federal approval is obtained and when certification of the modernized pharmacy claims 
46.19 	processing system occurs.

46.20 	Sec. 27. Minnesota Statutes 2022, section 256B.69, is amended by adding a subdivision 
46.21 	to read:
46.22 		Subd. 19a.Limitation on reimbursement; rare disease services provided in Minnesota 
46.23 	by out-of-network providers. (a) If a managed care or county-based purchasing plan has 
46.24 	an established contractual payment under medical assistance with an out-of-network provider 
46.25 	for a service provided in Minnesota related to the diagnosis, monitoring, and treatment of 
46.26 	a rare disease or condition, the provider must accept the established contractual payment 
46.27 	for that service as payment in full.
46.28 	(b) If a plan does not have an established contractual payment under medical assistance 
46.29 	with an out-of-network provider for a service provided in Minnesota related to the diagnosis, 
46.30 	monitoring, and treatment of a rare disease or condition, the provider must accept the 
46.31 	provider's established rate for uninsured patients for that service as payment in full. If the 
46.32 	provider does not have an established rate for  uninsured patients for that service, the provider 
46.33 	must accept the fee-for-service rate.

47.1 	EFFECTIVE DATE. This section is effective January 1, 2024.

47.2 	Sec. 28. Minnesota Statutes 2022, section 256B.69, is amended by adding a subdivision 
47.3 	to read:
47.4 		Subd. 19b.Limitation on reimbursement; rare disease services provided outside of 
47.5 	Minnesota by an out-of-network provider. (a) If a managed care or county-based 
47.6 	purchasing plan has an established contractual payment under medical assistance with an 
47.7 	out-of-network provider for a service provided in another state related to diagnosis, 
47.8 	monitoring, and treatment of a rare disease or condition, the plan must pay the established 
47.9 	contractual payment for that service.
47.10 	(b) If a plan does not have an established contractual payment under medical assistance 
47.11 	with an out-of-network provider for a service provided in another state related to diagnosis, 
47.12 	monitoring, and treatment of a rare disease or condition, the plan must pay the provider's 
47.13 	established rate for uninsured patients for that service. If the provider does not have an 
47.14 	established rate for uninsured patients for that service, the plan must pay the provider the 
47.15 	fee-for-service rate in that state.

47.16 	EFFECTIVE DATE. This section is effective January 1, 2024.

47.17 	Sec. 29. Minnesota Statutes 2022, section 256B.69, subdivision 28, is amended to read:
47.18 		Subd. 28.Medicare special needs plans; medical assistance basic health care. (a) 
47.19 	The commissioner may contract with demonstration providers and current or former sponsors 
47.20 	of qualified Medicare-approved special needs plans, to provide medical assistance basic 
47.21 	health care services to persons with disabilities, including those with developmental 
47.22 	disabilities. Basic health care services include:
47.23 	(1) those services covered by the medical assistance state plan except for ICF/DD services, 
47.24 	home and community-based waiver services, case management for persons with 
47.25 	developmental disabilities under section 256B.0625, subdivision 20a, and personal care and 
47.26 	certain home care services defined by the commissioner in consultation with the stakeholder 
47.27 	group established under paragraph (d); and
47.28 	(2) basic health care services may also include risk for up to 100 days of nursing facility 
47.29 	services for persons who reside in a noninstitutional setting and home health services related 
47.30 	to rehabilitation as defined by the commissioner after consultation with the stakeholder 
47.31 	group.
48.1 	The commissioner may exclude other medical assistance services from the basic health 
48.2 	care benefit set. Enrollees in these plans can access any excluded services on the same basis 
48.3 	as other medical assistance recipients who have not enrolled.
48.4 	(b) The commissioner may contract with demonstration providers and current and former 
48.5 	sponsors of qualified Medicare special needs plans, to provide basic health care services 
48.6 	under medical assistance to persons who are dually eligible for both Medicare and Medicaid 
48.7 	and those Social Security beneficiaries eligible for Medicaid but in the waiting period for 
48.8 	Medicare. The commissioner shall consult with the stakeholder group under paragraph (d) 
48.9 	in developing program specifications for these services. Payment for Medicaid services 
48.10 	provided under this subdivision for the months of May and June will be made no earlier 
48.11 	than July 1 of the same calendar year.
48.12 	(c) Notwithstanding subdivision 4, beginning January 1, 2012, The commissioner shall 
48.13 	enroll persons with disabilities in managed care under this section, unless the individual 
48.14 	chooses to opt out of enrollment. The commissioner shall establish enrollment and opt out 
48.15 	procedures consistent with applicable enrollment procedures under this section.
48.16 	(d) The commissioner shall establish a state-level stakeholder group to provide advice 
48.17 	on managed care programs for persons with disabilities, including both MnDHO and contracts 
48.18 	with special needs plans that provide basic health care services as described in paragraphs 
48.19 	(a) and (b). The stakeholder group shall provide advice on program expansions under this 
48.20 	subdivision and subdivision 23, including:
48.21 	(1) implementation efforts;
48.22 	(2) consumer protections; and
48.23 	(3) program specifications such as quality assurance measures, data collection and 
48.24 	reporting, and evaluation of costs, quality, and results.
48.25 	(e) Each plan under contract to provide medical assistance basic health care services 
48.26 	shall establish a local or regional stakeholder group, including representatives of the counties 
48.27 	covered by the plan, members, consumer advocates, and providers, for advice on issues that 
48.28 	arise in the local or regional area.
48.29 	(f) The commissioner is prohibited from providing the names of potential enrollees to 
48.30 	health plans for marketing purposes. The commissioner shall mail no more than two sets 
48.31 	of marketing materials per contract year to potential enrollees on behalf of health plans, at 
48.32 	the health plan's request. The marketing materials shall be mailed by the commissioner 
49.1 	within 30 days of receipt of these materials from the health plan. The health plans shall 
49.2 	cover any costs incurred by the commissioner for mailing marketing materials.

49.3 	EFFECTIVE DATE. This section is effective January 1, 2024.

49.4 	Sec. 30. Minnesota Statutes 2022, section 256B.69, subdivision 36, is amended to read:
49.5 		Subd. 36.Enrollee support system. (a) The commissioner shall establish an enrollee 
49.6 	support system that provides support to an enrollee before and during enrollment in a 
49.7 	managed care plan.
49.8 	(b) The enrollee support system must:
49.9 	(1) provide access to counseling for each potential enrollee on choosing a managed care 
49.10 	plan or opting out of managed care;
49.11 	(2) assist an enrollee in understanding enrollment in a managed care plan;
49.12 	(3) provide an access point for complaints regarding enrollment, covered services, and 
49.13 	other related matters;
49.14 	(4) provide information on an enrollee's grievance and appeal rights within the managed 
49.15 	care organization and the state's fair hearing process, including an enrollee's rights and 
49.16 	responsibilities; and
49.17 	(5) provide assistance to an enrollee, upon request, in navigating the grievance and 
49.18 	appeals process within the managed care organization and in appealing adverse benefit 
49.19 	determinations made by the managed care organization to the state's fair hearing process 
49.20 	after the managed care organization's internal appeals process has been exhausted. Assistance 
49.21 	does not include providing representation to an enrollee at the state's fair hearing, but may 
49.22 	include a referral to appropriate legal representation sources.
49.23 	(c) Outreach to enrollees through the support system must be accessible to an enrollee 
49.24 	through multiple formats, including telephone, Internet, in-person, and, if requested, through 
49.25 	auxiliary aids and services.
49.26 	(d) The commissioner may designate enrollment brokers to assist enrollees on selecting 
49.27 	a managed care organization and providing necessary enrollment information. For purposes 
49.28 	of this subdivision, "enrollment broker" means an individual or entity that performs choice 
49.29 	counseling or enrollment activities in accordance with Code of Federal Regulations, part 
49.30 	42, section 438.810, or both.

49.31 	EFFECTIVE DATE. This section is effective January 1, 2024.

50.1 	Sec. 31. Minnesota Statutes 2022, section 256B.692, subdivision 1, is amended to read:
50.2 		Subdivision 1.In general. County boards or groups of county boards may elect to 
50.3 	purchase or provide health care services on behalf of persons eligible for medical assistance 
50.4 	who would otherwise be required to or may elect to participate in the prepaid medical 
50.5 	assistance program according to section 256B.69, subject to the opt-out provision of section 
50.6 	256B.69, subdivision 4, paragraph (a). Counties that elect to purchase or provide health 
50.7 	care under this section must provide all services included in prepaid managed care programs 
50.8 	according to section 256B.69, subdivisions 1 to 22. County-based purchasing under this 
50.9 	section is governed by section 256B.69, unless otherwise provided for under this section.

50.10 	EFFECTIVE DATE. This section is effective January 1, 2024.

50.11 	Sec. 32. Minnesota Statutes 2022, section 256B.75, is amended to read:
50.12 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
50.13 	(a) For outpatient hospital facility fee payments for services rendered on or after October 
50.14 	1, 1992, the commissioner of human services shall pay the lower of (1) submitted charge, 
50.15 	or (2) 32 percent above the rate in effect on June 30, 1992, except for those services for 
50.16 	which there is a federal maximum allowable payment. Effective for services rendered on 
50.17 	or after January 1, 2000, payment rates for nonsurgical outpatient hospital facility fees and 
50.18 	emergency room facility fees shall be increased by eight percent over the rates in effect on 
50.19 	December 31, 1999, except for those services for which there is a federal maximum allowable 
50.20 	payment. Services for which there is a federal maximum allowable payment shall be paid 
50.21 	at the lower of (1) submitted charge, or (2) the federal maximum allowable payment. Total 
50.22 	aggregate payment for outpatient hospital facility fee services shall not exceed the Medicare 
50.23 	upper limit. If it is determined that a provision of this section conflicts with existing or 
50.24 	future requirements of the United States government with respect to federal financial 
50.25 	participation in medical assistance, the federal requirements prevail. The commissioner 
50.26 	may, in the aggregate, prospectively reduce payment rates to avoid reduced federal financial 
50.27 	participation resulting from rates that are in excess of the Medicare upper limitations.
50.28 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and ambulatory 
50.29 	surgery hospital facility fee services for critical access hospitals designated under section 
50.30 	144.1483, clause (9), shall be paid on a cost-based payment system that is based on the 
50.31 	cost-finding methods and allowable costs of the Medicare program. Effective for services 
50.32 	provided on or after July 1, 2015, rates established for critical access hospitals under this 
50.33 	paragraph for the applicable payment year shall be the final payment and shall not be settled 
50.34 	to actual costs. Effective for services delivered on or after the first day of the hospital's fiscal 
51.1 	year ending in 2017, the rate for outpatient hospital services shall be computed using 
51.2 	information from each hospital's Medicare cost report as filed with Medicare for the year 
51.3 	that is two years before the year that the rate is being computed. Rates shall be computed 
51.4 	using information from Worksheet C series until the department finalizes the medical 
51.5 	assistance cost reporting process for critical access hospitals. After the cost reporting process 
51.6 	is finalized, rates shall be computed using information from Title XIX Worksheet D series. 
51.7 	The outpatient rate shall be equal to ancillary cost plus outpatient cost, excluding costs 
51.8 	related to rural health clinics and federally qualified health clinics, divided by ancillary 
51.9 	charges plus outpatient charges, excluding charges related to rural health clinics and federally 
51.10 	qualified health clinics.
51.11 	(c) The rate described in paragraph (b) must be increased for hospitals providing high 
51.12 	levels of 340B drugs. The rate adjustment must be based on four percent of each hospital's 
51.13 	share of the total reimbursement for 340B drugs to all critical access hospitals, but must not 
51.14 	exceed $3,000,000.
51.15 	(c) (d) Effective for services provided on or after July 1, 2003, rates that are based on 
51.16 	the Medicare outpatient prospective payment system shall be replaced by a budget neutral 
51.17 	prospective payment system that is derived using medical assistance data. The commissioner 
51.18 	shall provide a proposal to the 2003 legislature to define and implement this provision. 
51.19 	When implementing prospective payment methodologies, the commissioner shall use general 
51.20 	methods and rate calculation parameters similar to the applicable Medicare prospective 
51.21 	payment systems for services delivered in outpatient hospital and ambulatory surgical center 
51.22 	settings unless other payment methodologies for these services are specified in this chapter.
51.23 	(d) (e) For fee-for-service services provided on or after July 1, 2002, the total payment, 
51.24 	before third-party liability and spenddown, made to hospitals for outpatient hospital facility 
51.25 	services is reduced by .5 percent from the current statutory rate.
51.26 	(e) (f) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
51.27 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital facility 
51.28 	services before third-party liability and spenddown, is reduced five percent from the current 
51.29 	statutory rates. Facilities defined under section 256.969, subdivision 16, are excluded from 
51.30 	this paragraph.
51.31 	(f) (g) In addition to the reductions in paragraphs (d) and (e), the total payment for 
51.32 	fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient 
51.33 	hospital facility services before third-party liability and spenddown, is reduced three percent 
52.1 	from the current statutory rates. Mental health services and facilities defined under section 
52.2 	256.969, subdivision 16, are excluded from this paragraph.

52.3 	EFFECTIVE DATE. This section is effective January 1, 2026, or the January 1 
52.4 	following certification of the modernized pharmacy claims processing system, whichever 
52.5 	is later. The commissioner of human services shall notify the revisor of statutes when 
52.6 	certification of the modernized pharmacy claims processing system occurs.

52.7 	Sec. 33. Minnesota Statutes 2022, section 256B.758, is amended to read:
52.8 	256B.758 REIMBURSEMENT FOR DOULA SERVICES.
52.9 	(a) Effective for services provided on or after July 1, 2019, through December 31, 2023, 
52.10 	payments for doula services provided by a certified doula shall be $47 per prenatal or 
52.11 	postpartum visit and $488 for attending and providing doula services at a birth.
52.12 	(b) Effective for services provided on or after January 1, 2024, payments for doula 
52.13 	services provided by a certified doula are $100 per prenatal or postpartum visit and $1,400 
52.14 	for attending and providing doula services at birth.

52.15 	EFFECTIVE DATE. This section is effective January 1, 2024.

52.16 	Sec. 34. Minnesota Statutes 2022, section 256B.76, as amended by Laws 2023, chapter 
52.17 	25, section 145, is amended to read:
52.18 	256B.76 PHYSICIAN, PROFESSIONAL SERVICES, AND DENTAL 
52.19 	REIMBURSEMENT.
52.20 		Subdivision 1.Physician and professional services reimbursement.  (a) Effective for 
52.21 	services rendered on or after October 1, 1992, the commissioner shall make payments for 
52.22 	physician services as follows:
52.23 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
52.24 	procedural coding system codes titled "office and other outpatient services," "preventive 
52.25 	medicine new and established patient," "delivery, antepartum, and postpartum care," "critical 
52.26 	care," cesarean delivery and pharmacologic management provided to psychiatric patients, 
52.27 	and level three codes for enhanced services for prenatal high risk, shall be paid at the lower 
52.28 	of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
52.29 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
52.30 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
53.1 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
53.2 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
53.3 	except that payment rates for home health agency services shall be the rates in effect on 
53.4 	September 30, 1992.
53.5 	(b) Effective for services rendered on or after January 1, 2000, payment rates for physician 
53.6 	and professional services shall be increased by three percent over the rates in effect on 
53.7 	December 31, 1999, except for home health agency and family planning agency services. 
53.8 	The increases in this paragraph shall be implemented January 1, 2000, for managed care.
53.9 	(c) Effective for services rendered on or after July 1, 2009, payment rates for physician 
53.10 	and professional services shall be reduced by five percent, except that for the period July 
53.11 	1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical 
53.12 	assistance and general assistance medical care programs, over the rates in effect on June 
53.13 	30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other 
53.14 	outpatient visits, preventive medicine visits and family planning visits billed by physicians, 
53.15 	advanced practice registered nurses, or physician assistants in a family planning agency or 
53.16 	in one of the following primary care practices: general practice, general internal medicine, 
53.17 	general pediatrics, general geriatrics, and family medicine. This reduction and the reductions 
53.18 	in paragraph (d) do not apply to federally qualified health centers, rural health centers, and 
53.19 	Indian health services. Effective October 1, 2009, payments made to managed care plans 
53.20 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
53.21 	reflect the payment reduction described in this paragraph.
53.22 	(d) Effective for services rendered on or after July 1, 2010, payment rates for physician 
53.23 	and professional services shall be reduced an additional seven percent over the five percent 
53.24 	reduction in rates described in paragraph (c). This additional reduction does not apply to 
53.25 	physical therapy services, occupational therapy services, and speech pathology and related 
53.26 	services provided on or after July 1, 2010. This additional reduction does not apply to 
53.27 	physician services billed by a psychiatrist or an advanced practice registered nurse with a 
53.28 	specialty in mental health. Effective October 1, 2010, payments made to managed care plans 
53.29 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
53.30 	reflect the payment reduction described in this paragraph.
53.31 	(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013, 
53.32 	payment rates for physician and professional services shall be reduced three percent from 
53.33 	the rates in effect on August 31, 2011. This reduction does not apply to physical therapy 
53.34 	services, occupational therapy services, and speech pathology and related services.
54.1 	(f) Effective for services rendered on or after September 1, 2014, payment rates for 
54.2 	physician and professional services, including physical therapy, occupational therapy, speech 
54.3 	pathology, and mental health services shall be increased by five percent from the rates in 
54.4 	effect on August 31, 2014. In calculating this rate increase, the commissioner shall not 
54.5 	include in the base rate for August 31, 2014, the rate increase provided under section 
54.6 	256B.76, subdivision 7. This increase does not apply to federally qualified health centers, 
54.7 	rural health centers, and Indian health services. Payments made to managed care plans and 
54.8 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
54.9 	(g) Effective for services rendered on or after July 1, 2015, payment rates for physical 
54.10 	therapy, occupational therapy, and speech pathology and related services provided by a 
54.11 	hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause 
54.12 	(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments 
54.13 	made to managed care plans and county-based purchasing plans shall not be adjusted to 
54.14 	reflect payments under this paragraph.
54.15 	(h) Any ratables effective before July 1, 2015, do not apply to early intensive 
54.16 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
54.17 	(i) The commissioner may reimburse physicians and other licensed professionals for 
54.18 	costs incurred to pay the fee for testing newborns who are medical assistance enrollees for 
54.19 	heritable and congenital disorders under section 144.125, subdivision 1, paragraph (c), when 
54.20 	the sample is collected outside of an inpatient hospital or freestanding birth center and the 
54.21 	cost is not recognized by another payment source.
54.22 		Subd. 2.Dental reimbursement.  (a) Effective for services rendered on or after from
54.23 	October 1, 1992, to December 31, 2023, the commissioner shall make payments for dental 
54.24 	services as follows:
54.25 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent 
54.26 	above the rate in effect on June 30, 1992; and
54.27 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile 
54.28 	of 1989, less the percent in aggregate necessary to equal the above increases.
54.29 	(b) Beginning From October 1, 1999, to December 31, 2023, the payment for tooth 
54.30 	sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent 
54.31 	of median 1997 charges.
55.1 	(c) Effective for services rendered on or after from January 1, 2000, to December 31, 
55.2 	2023, payment rates for dental services shall be increased by three percent over the rates in 
55.3 	effect on December 31, 1999.
55.4 	(d) Effective for services provided on or after from January 1, 2002, to December 31, 
55.5 	2023, payment for diagnostic examinations and dental x-rays provided to children under 
55.6 	age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999 
55.7 	charges.
55.8 	(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, 
55.9 	for managed care.
55.10 	(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated 
55.11 	dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare 
55.12 	principles of reimbursement. This payment shall be effective for services rendered on or 
55.13 	after January 1, 2011, to recipients enrolled in managed care plans or county-based 
55.14 	purchasing plans.
55.15 	(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in 
55.16 	paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a 
55.17 	supplemental state payment equal to the difference between the total payments in paragraph 
55.18 	(f) and $1,850,000 shall be paid from the general fund to state-operated services for the 
55.19 	operation of the dental clinics.
55.20 	(h) Effective for services rendered on or after January 1, 2014, through December 31, 
55.21 	2021, payment rates for dental services shall be increased by five percent from the rates in 
55.22 	effect on December 31, 2013. This increase does not apply to state-operated dental clinics 
55.23 	in paragraph (f), federally qualified health centers, rural health centers, and Indian health 
55.24 	services. Effective January 1, 2014, payments made to managed care plans and county-based 
55.25 	purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment 
55.26 	increase described in this paragraph.
55.27 	(i) Effective for services provided on or after January 1, 2017, through December 31, 
55.28 	2021, the commissioner shall increase payment rates by 9.65 percent for dental services 
55.29 	provided outside of the seven-county metropolitan area. This increase does not apply to 
55.30 	state-operated dental clinics in paragraph (f), federally qualified health centers, rural health 
55.31 	centers, or Indian health services. Effective January 1, 2017, payments to managed care 
55.32 	plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect 
55.33 	the payment increase described in this paragraph.
56.1 	(j) Effective for services provided on or after July 1, 2017, through December 31, 2021, 
56.2 	the commissioner shall increase payment rates by 23.8 percent for dental services provided 
56.3 	to enrollees under the age of 21. This rate increase does not apply to state-operated dental 
56.4 	clinics in paragraph (f), federally qualified health centers, rural health centers, or Indian 
56.5 	health centers. This rate increase does not apply to managed care plans and county-based 
56.6 	purchasing plans.
56.7 	(k) (h) Effective for services provided on or after January 1, 2022, the commissioner 
56.8 	shall exclude from medical assistance and MinnesotaCare payments for dental services to 
56.9 	public health and community health clinics the 20 percent increase authorized under Laws 
56.10 	1989, chapter 327, section 5, subdivision 2, paragraph (b).
56.11 	(l) (i) Effective for services provided on or after from January 1, 2022, to December 31, 
56.12 	2023, the commissioner shall increase payment rates by 98 percent for all dental services. 
56.13 	This rate increase does not apply to state-operated dental clinics, federally qualified health 
56.14 	centers, rural health centers, or Indian health services.
56.15 	(m) (j) Managed care plans and county-based purchasing plans shall reimburse providers 
56.16 	at a level that is at least equal to the rate paid under fee-for-service for dental services. If, 
56.17 	for any coverage year, federal approval is not received for this paragraph, the commissioner 
56.18 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
56.19 	plans for that contract year to reflect the removal of this provision. Contracts between 
56.20 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
56.21 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
56.22 	in accordance with this paragraph. Payment recoveries must not exceed an amount equal 
56.23 	to any increase in rates that results from this provision. If, for any coverage year, federal 
56.24 	approval is not received for this paragraph, the commissioner shall not implement this 
56.25 	paragraph for subsequent coverage years.
56.26 	(k) Effective for services provided on or after January 1, 2024, payment for dental 
56.27 	services must be the lower of submitted charges or the percentile of 2018-submitted charges 
56.28 	from claims paid by the commissioner so that the total aggregate expenditures does not 
56.29 	exceed the total spend as outlined in the applicable paragraphs (a) to (k). This paragraph 
56.30 	does not apply to federally qualified health centers, rural health centers, state-operated dental 
56.31 	clinics, or Indian health centers.
56.32 	(l) Beginning January 1, 2027, and every three years thereafter, the commissioner shall 
56.33 	rebase payment rates for dental services to a percentile of submitted charges for the applicable 
56.34 	base year using charge data from claims paid by the commissioner so that the total aggregate 
57.1 	expenditures does not exceed the total spend as outlined in paragraph (k) plus the change 
57.2 	in the Medicare Economic Index (MEI). In 2027, the change in the MEI must be measured 
57.3 	from midyear of 2024 and 2026. For each subsequent rebasing, the change in the MEI must 
57.4 	be measured between the years that are one year after the rebasing years. The base year 
57.5 	used for each rebasing must be the calendar year that is two years prior to the effective date 
57.6 	of the rebasing. This paragraph does not apply to federally qualified health centers, rural 
57.7 	health centers, state-operated dental clinics, or Indian health centers.
57.8 		Subd. 3.Dental services grants.  (a) The commissioner shall award grants to community 
57.9 	clinics or other nonprofit community organizations, political subdivisions, professional 
57.10 	associations, or other organizations that demonstrate the ability to provide dental services 
57.11 	effectively to public program recipients. Grants may be used to fund the costs related to 
57.12 	coordinating access for recipients, developing and implementing patient care criteria, 
57.13 	upgrading or establishing new facilities, acquiring furnishings or equipment, recruiting new 
57.14 	providers, or other development costs that will improve access to dental care in a region. 
57.15 	In awarding grants, the commissioner shall give priority to applicants that plan to serve 
57.16 	areas of the state in which the number of dental providers is not currently sufficient to meet 
57.17 	the needs of recipients of public programs or uninsured individuals. The commissioner shall 
57.18 	consider the following in awarding the grants:
57.19 	(1) potential to successfully increase access to an underserved population;
57.20 	(2) the ability to raise matching funds;
57.21 	(3) the long-term viability of the project to improve access beyond the period of initial 
57.22 	funding;
57.23 	(4) the efficiency in the use of the funding; and
57.24 	(5) the experience of the proposers in providing services to the target population.
57.25 	(b) The commissioner shall monitor the grants and may terminate a grant if the grantee 
57.26 	does not increase dental access for public program recipients. The commissioner shall 
57.27 	consider grants for the following:
57.28 	(1) implementation of new programs or continued expansion of current access programs 
57.29 	that have demonstrated success in providing dental services in underserved areas;
57.30 	(2) a pilot program for utilizing hygienists outside of a traditional dental office to provide 
57.31 	dental hygiene services; and
58.1 	(3) a program that organizes a network of volunteer dentists, establishes a system to 
58.2 	refer eligible individuals to volunteer dentists, and through that network provides donated 
58.3 	dental care services to public program recipients or uninsured individuals.
58.4 		Subd. 4.Critical access dental providers.  (a) The commissioner shall increase 
58.5 	reimbursements to dentists and dental clinics deemed by the commissioner to be critical 
58.6 	access dental providers. For dental services rendered on or after July 1, 2016, through 
58.7 	December 31, 2021, the commissioner shall increase reimbursement by 37.5 percent above 
58.8 	the reimbursement rate that would otherwise be paid to the critical access dental provider, 
58.9 	except as specified under paragraph (b). The commissioner shall pay the managed care 
58.10 	plans and county-based purchasing plans in amounts sufficient to reflect increased 
58.11 	reimbursements to critical access dental providers as approved by the commissioner.
58.12 	(b) For dental services rendered on or after July 1, 2016, through December 31, 2021, 
58.13 	by a dental clinic or dental group that meets the critical access dental provider designation 
58.14 	under paragraph (f), clause (4), and is owned and operated by a health maintenance 
58.15 	organization licensed under chapter 62D, the commissioner shall increase reimbursement 
58.16 	by 35 percent above the reimbursement rate that would otherwise be paid to the critical 
58.17 	access provider.
58.18 	(c) (a) The commissioner shall increase reimbursement to dentists and dental clinics 
58.19 	deemed by the commissioner to be critical access dental providers. For dental services 
58.20 	provided on or after January 1, 2022, by a dental provider deemed to be a critical access 
58.21 	dental provider under paragraph (f) (d), the commissioner shall increase reimbursement by 
58.22 	20 percent above the reimbursement rate that would otherwise be paid to the critical access 
58.23 	dental provider. This paragraph does not apply to federally qualified health centers, rural 
58.24 	health centers, state-operated dental clinics, or Indian health centers.
58.25 	(d) (b) Managed care plans and county-based purchasing plans shall increase 
58.26 	reimbursement to critical access dental providers by at least the amount specified in paragraph 
58.27 	(c) (c). If, for any coverage year, federal approval is not received for this paragraph, the 
58.28 	commissioner must adjust the capitation rates paid to managed care plans and county-based 
58.29 	purchasing plans for that contract year to reflect the removal of this provision. Contracts 
58.30 	between managed care plans and county-based purchasing plans and providers to whom 
58.31 	this paragraph applies must allow recovery of payments from those providers if capitation 
58.32 	rates are adjusted in accordance with this paragraph. Payment recoveries must not exceed 
58.33 	an amount equal to any increase in rates that results from this provision. If, for any coverage 
58.34 	year, federal approval is not received for this paragraph, the commissioner shall not 
58.35 	implement this paragraph for subsequent coverage years.
59.1 	(e) (c) Critical access dental payments made under this subdivision for dental services 
59.2 	provided by a critical access dental provider to an enrollee of a managed care plan or 
59.3 	county-based purchasing plan must not reflect any capitated payments or cost-based payments 
59.4 	from the managed care plan or county-based purchasing plan. The managed care plan or 
59.5 	county-based purchasing plan must base the additional critical access dental payment on 
59.6 	the amount that would have been paid for that service had the dental provider been paid 
59.7 	according to the managed care plan or county-based purchasing plan's fee schedule that 
59.8 	applies to dental providers that are not paid under a capitated payment or cost-based payment.
59.9 	(f) (d) The commissioner shall designate the following dentists and dental clinics as 
59.10 	critical access dental providers:
59.11 	(1) nonprofit community clinics that:
59.12 	(i) have nonprofit status in accordance with chapter 317A;
59.13 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
59.14 	501(c)(3);
59.15 	(iii) are established to provide oral health services to patients who are low income, 
59.16 	uninsured, have special needs, and are underserved;
59.17 	(iv) have professional staff familiar with the cultural background of the clinic's patients;
59.18 	(v) charge for services on a sliding fee scale designed to provide assistance to low-income 
59.19 	patients based on current poverty income guidelines and family size;
59.20 	(vi) do not restrict access or services because of a patient's financial limitations or public 
59.21 	assistance status; and
59.22 	(vii) have free care available as needed;
59.23 	(2) federally qualified health centers, rural health clinics, and public health clinics;
59.24 	(3) hospital-based dental clinics owned and operated by a city, county, or former state 
59.25 	hospital as defined in section 62Q.19, subdivision 1, paragraph (a), clause (4);
59.26 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
59.27 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
59.28 	patients who are uninsured or covered by medical assistance or MinnesotaCare;
59.29 	(5) a dental clinic owned and operated by the University of Minnesota or the Minnesota 
59.30 	State Colleges and Universities system; and
59.31 	(6) private practicing dentists if:
60.1 	(i) the dentist's office is located within the seven-county metropolitan area and more 
60.2 	than 50 percent of the dentist's patient encounters per year are with patients who are uninsured 
60.3 	or covered by medical assistance or MinnesotaCare; or
60.4 	(ii) the dentist's office is located outside the seven-county metropolitan area and more 
60.5 	than 25 percent of the dentist's patient encounters per year are with patients who are uninsured 
60.6 	or covered by medical assistance or MinnesotaCare.
60.7 		Subd. 5.Outpatient rehabilitation facility.  An entity that operates both a Medicare 
60.8 	certified comprehensive outpatient rehabilitation facility and a facility which was certified 
60.9 	prior to January 1, 1993, that is licensed under Minnesota Rules, parts 9570.2000 to 
60.10 	9570.3400, and for whom at least 33 percent of the clients receiving rehabilitation services 
60.11 	in the most recent calendar year are medical assistance recipients, shall be reimbursed by 
60.12 	the commissioner for rehabilitation services at rates that are 38 percent greater than the 
60.13 	maximum reimbursement rate allowed under subdivision 1, paragraph (a), clause (2), when 
60.14 	those services are (1) provided within the comprehensive outpatient rehabilitation facility 
60.15 	and (2) provided to residents of nursing facilities owned by the entity.
60.16 		Subd. 6.Medicare relative value units.  Effective for services rendered on or after 
60.17 	January 1, 2007, the commissioner shall make payments for physician and professional 
60.18 	services based on the Medicare relative value units (RVU's). This change shall be budget 
60.19 	neutral and the cost of implementing RVU's will be incorporated in the established conversion 
60.20 	factor.
60.21 		Subd. 7.Payment for certain primary care services and immunization 
60.22 	administration. Payment for certain primary care services and immunization administration 
60.23 	services rendered on or after January 1, 2013, through December 31, 2014, shall be made 
60.24 	in accordance with section 1902(a)(13) of the Social Security Act.

60.25 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
60.26 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
60.27 	when federal approval is obtained.

60.28 	Sec. 35. Minnesota Statutes 2022, section 256B.761, is amended to read:
60.29 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
60.30 	(a) Effective for services rendered on or after July 1, 2001, payment for medication 
60.31 	management provided to psychiatric patients, outpatient mental health services, day treatment 
60.32 	services, home-based mental health services, and family community support services shall 
61.1 	be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the 50th percentile of 
61.2 	1999 charges.
61.3 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
61.4 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
61.5 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
61.6 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
61.7 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
61.8 	those services are provided within the comprehensive outpatient rehabilitation facility and 
61.9 	provided to residents of nursing facilities owned by the entity.
61.10 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
61.11 	coverage policy and rates to improve access to adult rehabilitative mental health services 
61.12 	under section 256B.0623 and related mental health support services under section 256B.021, 
61.13 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
61.14 	state share of increased costs due to this paragraph is transferred from adult mental health 
61.15 	grants under sections 245.4661 and 256E.12. The transfer for fiscal year 2016 is a permanent 
61.16 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
61.17 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
61.18 	the rate changes described in this paragraph.
61.19 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
61.20 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
61.21 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
61.22 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
61.23 	Session chapter 7, article 17, section 18, must be increased by eight percent from the rates 
61.24 	in effect on December 31, 2023. Effective for services rendered on or after January 1, 2025, 
61.25 	payment rates for behavioral health services included in the rate analysis required by Laws 
61.26 	2021, First Special Session chapter 7, article 17, section 18, must be annually adjusted 
61.27 	according to the Consumer Price Index for medical care services. For payments made in 
61.28 	accordance with this paragraph, if and to the extent that the commissioner identifies that 
61.29 	the state has received federal financial participation for behavioral health services in excess 
61.30 	of the amount allowed under United States Code, title 42, section 447.321, the state shall 
61.31 	repay the excess amount to the Centers for Medicare and Medicaid Services with state 
61.32 	money and maintain the full payment rate under this paragraph. This paragraph does not 
61.33 	apply to federally qualified health centers, rural health centers, Indian health services, 
61.34 	certified community behavioral health clinics, cost-based rates, and rates that are negotiated 
61.35 	with the county. This paragraph expires upon legislative implementation of the new rate 
62.1 	methodology resulting from the rate analysis required by Laws 2021, First Special Session 
62.2 	chapter 7, article 17, section 18.
62.3 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
62.4 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
62.5 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
62.6 	plans must use the capitation rate increase provided under this paragraph to increase payment 
62.7 	rates to behavioral health services providers. The commissioner must monitor the effect of 
62.8 	this rate increase on enrollee access to behavioral health services. If for any contract year 
62.9 	federal approval is not received for this paragraph, the commissioner must adjust the 
62.10 	capitation rates paid to managed care plans and county-based purchasing plans for that 
62.11 	contract year to reflect the removal of this provision. Contracts between managed care plans 
62.12 	and county-based purchasing plans and providers to whom this paragraph applies must 
62.13 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
62.14 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
62.15 	in rates that results from this provision.

62.16 	Sec. 36. Minnesota Statutes 2022, section 256B.764, is amended to read:
62.17 	256B.764 REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
62.18 	(a) Effective for services rendered on or after July 1, 2007, payment rates for family 
62.19 	planning services shall be increased by 25 percent over the rates in effect June 30, 2007, 
62.20 	when these services are provided by a community clinic as defined in section 145.9268, 
62.21 	subdivision 1.
62.22 	(b) Effective for services rendered on or after July 1, 2013, payment rates for family 
62.23 	planning services shall be increased by 20 percent over the rates in effect June 30, 2013, 
62.24 	when these services are provided by a community clinic as defined in section 145.9268, 
62.25 	subdivision 1. The commissioner shall adjust capitation rates to managed care and 
62.26 	county-based purchasing plans to reflect this increase, and shall require plans to pass on the 
62.27 	full amount of the rate increase to eligible community clinics, in the form of higher payment 
62.28 	rates for family planning services.
62.29 	(c) Effective for services provided on or after January 1, 2024, payment rates for family 
62.30 	planning and abortion services must be increased by ten percent. This increase does not 
62.31 	apply to federally qualified health centers, rural health centers, or Indian health services.

63.1 	Sec. 37. Minnesota Statutes 2022, section 256L.03, subdivision 5, is amended to read:
63.2 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
63.3 	children under the age of 21 and; to American Indians as defined in Code of Federal 
63.4 	Regulations, title 42, section 600.5; or to pre-exposure prophylaxis (PrEP) and postexposure 
63.5 	prophylaxis (PEP) medications when used for the prevention or treatment of the human 
63.6 	immunodeficiency virus (HIV).
63.7 	(b) The commissioner shall adjust co-payments, coinsurance, and deductibles for covered 
63.8 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
63.9 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
63.10 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
63.11 	this paragraph shall not be implemented prior to January 1, 2016.
63.12 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
63.13 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
63.14 	title 42, sections 600.510 and 600.520.
63.15 	(d) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic 
63.16 	services or testing that a health care provider determines an enrollee requires after a 
63.17 	mammogram, as specified under section 62A.30, subdivision 5.

63.18 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
63.19 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
63.20 	when federal approval is obtained.

63.21 	Sec. 38. Laws 2021, First Special Session chapter 7, article 6, section 26, is amended to 
63.22 	read:
63.23 	Sec. 26. COMMISSIONER OF HUMAN SERVICES; EXTENSION OF COVID-19 
63.24 	HUMAN SERVICES PROGRAM MODIFICATIONS.
 63.25 	Notwithstanding Laws 2020, First Special Session chapter 7, section 1, subdivision 2, 
63.26 	as amended by Laws 2020, Third Special Session chapter 1, section 3, when the peacetime 
63.27 	emergency declared by the governor in response to the COVID-19 outbreak expires, is 
63.28 	terminated, or is rescinded by the proper authority, the following modifications issued by 
63.29 	the commissioner of human services pursuant to Executive Orders 20-11 and 20-12, and 
63.30 	including any amendments to the modification issued before the peacetime emergency 
63.31 	expires, shall remain in effect until July 1, 2023 2025:
64.1 	(1) CV16: expanding access to telemedicine services for Children's Health Insurance 
64.2 	Program, Medical Assistance, and MinnesotaCare enrollees; and
64.3 	(2) CV21: allowing telemedicine alternative for school-linked mental health services 
64.4 	and intermediate school district mental health services.

64.5 	Sec. 39. REPORT; MODIFY WITHHOLD PROVISIONS.
 64.6 	By January 1, 2024, the commissioner of human services must submit a report to the 
64.7 	chairs and ranking minority members of the legislative committees with jurisdiction over 
64.8 	human services finance and policy evaluating the utility of the performance targets described 
64.9 	in Minnesota Statutes 2022, section 256B.69, subdivision 5a, paragraphs (e) to (g). The 
64.10 	report must include the applicable performance rates of managed care organizations and 
64.11 	county-based purchasing plans in the past three years, projected impacts on performance 
64.12 	rates for the next three years resulting from a repeal of Minnesota Statutes 2022, section 
64.13 	256B.69, subdivision 5a, paragraphs (e) to (g), measures that the commissioner anticipates 
64.14 	taking to continue monitoring and improving the applicable performance rates of managed 
64.15 	care organizations and county-based purchasing plans upon a repeal of Minnesota Statutes 
64.16 	2022, section 256B.69, subdivision 5a, paragraphs (e) to (g), proposals for additional 
64.17 	performance targets that may improve quality of care for enrollees, and any additional 
64.18 	legislative actions that may be required as the result of a repeal of Minnesota Statutes 2022, 
64.19 	section 256B.69, subdivision 5a, paragraphs (e) to (g).

64.20 	ARTICLE 2
64.21 	HEALTH INSURANCE

64.22 	Section 1. Minnesota Statutes 2022, section 62A.02, subdivision 1, is amended to read:
64.23 		Subdivision 1.Filing. (a) For purposes of this section, "health plan" means a health plan 
64.24 	as defined in section 62A.011 or a policy of accident and sickness insurance as defined in 
64.25 	section 62A.01. No health plan shall be issued or delivered to any person in this state, nor 
64.26 	shall any application, rider, or endorsement be used in connection with the health plan, until 
64.27 	a copy of its form and of the classification of risks and the premium rates pertaining to the 
64.28 	form have been filed with the commissioner. The filing for nongroup health plan forms 
64.29 	shall include a statement of actuarial reasons and data to support the rate. For health benefit 
64.30 	plans as defined in section 62L.02, and for health plans to be issued to individuals, the health 
64.31 	carrier shall file with the commissioner the information required in section 62L.08, 
64.32 	subdivision 8. For group health plans for which approval is sought for sales only outside 
64.33 	of the small employer market as defined in section 62L.02, this section applies only to 
65.1 	policies or contracts of accident and sickness insurance. All forms intended for issuance in 
65.2 	the individual or small employer market must be accompanied by a statement as to the 
65.3 	expected loss ratio for the form. Premium rates and forms relating to specific insureds or 
65.4 	proposed insureds, whether individuals or groups, need not be filed, unless requested by 
65.5 	the commissioner.
65.6 	(b) The filing must include the health plan's prescription drug formulary. Proposed 
65.7 	revisions to the health plan's prescription drug formulary must be filed with the commissioner 
65.8 	no later than August 1 of the application year.
65.9 	(c) The provisions of paragraph (b) shall not be severable from section 62Q.83. If any 
65.10 	provision of paragraph (b) or its application to any individual, entity, or circumstance is 
65.11 	found to be void for any reason, section 62Q.83 shall be void also.

65.12 	Sec. 2. [62A.0412] COVERAGE OF INFERTILITY TREATMENT.
65.13 		Subdivision 1.Scope. This section applies to all large group health plans that provide 
65.14 	maternity benefits to Minnesota residents. This section only applies to large group health 
65.15 	plans.
65.16 		Subd. 2.Required coverage. (a) Every health plan under subdivision 1 must provide 
65.17 	comprehensive coverage for the diagnosis of infertility, treatment for infertility, and standard 
65.18 	fertility preservation services that are:
65.19 	(1) considered medically necessary by the enrollee's treating health care provider; and
65.20 	(2) recognized by either the American Society for Reproductive Medicine, the American 
65.21 	College of Obstetrics and Gynecologists, or the American Society of Clinical Oncology.
65.22 	(b) Coverage under this section must include but is not limited to ovulation induction, 
65.23 	procedures and devices to monitor ovulation, artificial insemination, oocyte retrieval 
65.24 	procedures, in vitro fertilization, gamete intrafallopian transfer, oocyte replacement, 
65.25 	cryopreservation techniques, micromanipulation of gametes, and standard fertility 
65.26 	preservation services.
65.27 	(c) Coverage under this section must include unlimited embryo transfers, but may impose 
65.28 	a limit of four completed oocyte retrievals. Single embryo transfer must be used when 
65.29 	medically appropriate and recommended by the treating health care provider.
65.30 	(d) Coverage for surgical reversal of elective sterilization is not required under this 
65.31 	section.
66.1 	(e) Cost-sharing requirements, including co-payments, deductibles, and coinsurance for 
66.2 	infertility coverage, must not be greater than the cost-sharing requirements for maternity 
66.3 	coverage under the enrollee's health plan.
66.4 	(f) Health plans under subdivision 1 may not include in the coverage under this section:
66.5 	(1) any exclusions, limitations, or other restrictions on coverage of fertility medications 
66.6 	that are different from those imposed on other prescription medications;
66.7 	(2) any exclusions, limitations, or other restrictions on coverage of any fertility services 
66.8 	based on a covered individual's participation in fertility services provided by or to a third 
66.9 	party; or
66.10 	(3) any benefit maximums, waiting periods, or any other limitations on coverage for the 
66.11 	diagnosis of infertility, treatment of infertility, and standard fertility preservation services, 
66.12 	except as provided in paragraphs (c) and (d), that are different from those imposed upon 
66.13 	benefits for services not related to infertility.
66.14 		Subd. 3.Definitions. (a) For the purposes of this section, the definitions in this 
66.15 	subdivision have the meanings given them.
66.16 	(b) "Infertility" means a disease, condition, or status characterized by:
66.17 	(1) the failure of a person with a uterus to establish a pregnancy or to carry a pregnancy 
66.18 	to live birth after 12 months of unprotected sexual intercourse for a person under the age 
66.19 	of 35 or six months for a person 35 years of age or older, regardless of whether a pregnancy 
66.20 	resulting in miscarriage occurred during such time;
66.21 	(2) a person's inability to reproduce either as a single individual or with the person's 
66.22 	partner without medical intervention; or
66.23 	(3) a licensed health care provider's findings based on a patient's medical, sexual, and 
66.24 	reproductive history; age; physical findings; or diagnostic testing.
66.25 	(c) "Diagnosis of and treatment for infertility" means the recommended procedures and 
66.26 	medications from the direction of a licensed health care provider that are consistent with 
66.27 	established, published, or approved medical practices or professional guidelines from the 
66.28 	American College of Obstetricians and Gynecologists or the American Society for 
66.29 	Reproductive Medicine.
66.30 	(d) "Standard fertility preservation services" means procedures that are consistent with 
66.31 	the established medical practices or professional guidelines published by the American 
66.32 	Society for Reproductive Medicine or the American Society of Clinical Oncology for a 
67.1 	person who has a medical condition or is expected to undergo medication therapy, surgery, 
67.2 	radiation, chemotherapy, or other medical treatment that is recognized by medical 
67.3 	professionals to cause a risk of impairment to fertility.

67.4 	EFFECTIVE DATE. This section is effective August 1, 2023, and applies to all large 
67.5 	group health plans issued or renewed on or after that date.

67.6 	Sec. 3. Minnesota Statutes 2022, section 62A.045, is amended to read:
67.7 	62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT 
67.8 	HEALTH PROGRAMS.
67.9 	(a) As a condition of doing business in Minnesota or providing coverage to residents of 
67.10 	Minnesota covered by this section, each health insurer shall comply with the requirements 
67.11 	of for health insurers under the federal Deficit Reduction Act of 2005, Public Law 109-171
67.12 	and the federal Consolidated Appropriations Act of 2022, Public Law 117-103, including 
67.13 	any federal regulations adopted under that act those acts, to the extent that it imposes they 
67.14 	impose a requirement that applies in this state and that is not also required by the laws of 
67.15 	this state. This section does not require compliance with any provision of the federal act
67.16 	acts prior to the effective date dates provided for that provision those provisions in the 
67.17 	federal act acts. The commissioner shall enforce this section.
67.18 	For the purpose of this section, "health insurer" includes self-insured plans, group health 
67.19 	plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 
67.20 	1974), service benefit plans, managed care organizations, pharmacy benefit managers, or 
67.21 	other parties that are by contract legally responsible to pay a claim for a health-care item 
67.22 	or service for an individual receiving benefits under paragraph (b).
67.23 	(b) No plan offered by a health insurer issued or renewed to provide coverage to a 
67.24 	Minnesota resident shall contain any provision denying or reducing benefits because services 
67.25 	are rendered to a person who is eligible for or receiving medical benefits pursuant to title 
67.26 	XIX of the Social Security Act (Medicaid) in this or any other state; chapter 256 or 256B; 
67.27 	or services pursuant to section 252.27; 256L.01 to 256L.10; 260B.331, subdivision 2; 
67.28 	260C.331, subdivision 2; or 393.07, subdivision 1 or 2. No health insurer providing benefits 
67.29 	under plans covered by this section shall use eligibility for medical programs named in this 
67.30 	section as an underwriting guideline or reason for nonacceptance of the risk.
67.31 	(c) If payment for covered expenses has been made under state medical programs for 
67.32 	health care items or services provided to an individual, and a third party has a legal liability 
67.33 	to make payments, the rights of payment and appeal of an adverse coverage decision for 
68.1 	the individual, or in the case of a child their responsible relative or caretaker, will be 
68.2 	subrogated to the state agency. The state agency may assert its rights under this section 
68.3 	within three years of the date the service was rendered. For purposes of this section, "state 
68.4 	agency" includes prepaid health plans under contract with the commissioner according to 
68.5 	sections 256B.69 and 256L.12; children's mental health collaboratives under section 245.493; 
68.6 	demonstration projects for persons with disabilities under section 256B.77; nursing homes 
68.7 	under the alternative payment demonstration project under section 256B.434; and 
68.8 	county-based purchasing entities under section 256B.692.
68.9 	(d) Notwithstanding any law to the contrary, when a person covered by a plan offered 
68.10 	by a health insurer receives medical benefits according to any statute listed in this section, 
68.11 	payment for covered services or notice of denial for services billed by the provider must be 
68.12 	issued directly to the provider. If a person was receiving medical benefits through the 
68.13 	Department of Human Services at the time a service was provided, the provider must indicate 
68.14 	this benefit coverage on any claim forms submitted by the provider to the health insurer for 
68.15 	those services. If the commissioner of human services notifies the health insurer that the 
68.16 	commissioner has made payments to the provider, payment for benefits or notices of denials 
68.17 	issued by the health insurer must be issued directly to the commissioner. Submission by the 
68.18 	department to the health insurer of the claim on a Department of Human Services claim 
68.19 	form is proper notice and shall be considered proof of payment of the claim to the provider 
68.20 	and supersedes any contract requirements of the health insurer relating to the form of 
68.21 	submission. Liability to the insured for coverage is satisfied to the extent that payments for 
68.22 	those benefits are made by the health insurer to the provider or the commissioner as required 
68.23 	by this section.
68.24 	(e) When a state agency has acquired the rights of an individual eligible for medical 
68.25 	programs named in this section and has health benefits coverage through a health insurer, 
68.26 	the health insurer shall not impose requirements that are different from requirements 
68.27 	applicable to an agent or assignee of any other individual covered.
68.28 	(f) A health insurer must process a clean claim made by a state agency for covered 
68.29 	expenses paid under state medical programs within 90 business days of the claim's 
68.30 	submission. A health insurer must process all other claims made by a state agency for 
68.31 	covered expenses paid under a state medical program within the timeline set forth in Code 
68.32 	of Federal Regulations, title 42, section 447.45(d)(4).
68.33 	(g) A health insurer may request a refund of a claim paid in error to the Department of 
68.34 	Human Services within two years of the date the payment was made to the department. A 
69.1 	request for a refund shall not be honored by the department if the health insurer makes the 
69.2 	request after the time period has lapsed.

69.3 	Sec. 4. Minnesota Statutes 2022, section 62A.15, is amended by adding a subdivision to 
69.4 	read:
69.5 		Subd. 3d.Pharmacist. All policies or contracts referred to in subdivision 1 must provide 
69.6 	benefits relating to expenses incurred for medical treatment or services provided by a licensed 
69.7 	pharmacist, according to the requirements of section 151.01, to the extent the medical 
69.8 	treatment or services are within the pharmacist's scope of practice, if such a policy or contract 
69.9 	provides the benefits relating to expenses incurred for the same medical treatment or services 
69.10 	provided by a licensed physician.

69.11 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to policies 
69.12 	or contracts offered, issued, or renewed on or after that date.

69.13 	Sec. 5. Minnesota Statutes 2022, section 62A.15, subdivision 4, is amended to read:
69.14 		Subd. 4.Denial of benefits. (a) No carrier referred to in subdivision 1 may, in the 
69.15 	payment of claims to employees in this state, deny benefits payable for services covered by 
69.16 	the policy or contract if the services are lawfully performed by a licensed chiropractor, a 
69.17 	licensed optometrist, a registered nurse meeting the requirements of subdivision 3a, a licensed 
69.18 	physician assistant, or a licensed acupuncture practitioner, or a licensed pharmacist.
69.19 	(b) When carriers referred to in subdivision 1 make claim determinations concerning 
69.20 	the appropriateness, quality, or utilization of chiropractic health care for Minnesotans, any 
69.21 	of these determinations that are made by health care professionals must be made by, or 
69.22 	under the direction of, or subject to the review of licensed doctors of chiropractic.
69.23 	(c) When a carrier referred to in subdivision 1 makes a denial of payment claim 
69.24 	determination concerning the appropriateness, quality, or utilization of acupuncture services 
69.25 	for individuals in this state performed by a licensed acupuncture practitioner, a denial of 
69.26 	payment claim determination that is made by a health professional must be made by, under 
69.27 	the direction of, or subject to the review of a licensed acupuncture practitioner.

69.28 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to policies 
69.29 	or contracts offered, issued, or renewed on or after that date.

70.1 	Sec. 6. Minnesota Statutes 2022, section 62A.30, is amended by adding a subdivision to 
70.2 	read:
70.3 		Subd. 5.Mammogram; diagnostic services and testing. If a health care provider 
70.4 	determines an enrollee requires additional diagnostic services or testing after a mammogram, 
70.5 	a health plan must provide coverage for the additional diagnostic services or testing with 
70.6 	no cost sharing, including co-pay, deductible, or coinsurance.

70.7 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
70.8 	plans offered, issued, or sold on or after that date.

70.9 	Sec. 7. Minnesota Statutes 2022, section 62A.30, is amended by adding a subdivision to 
70.10 	read:
70.11 		Subd. 6.Application. If the application of subdivision 5 before an enrollee has met their 
70.12 	health plan's deducible would result in: (1) health savings account ineligibility under United 
70.13 	States Code, title 26, section 223; or (2) catastrophic health plan ineligibility under United 
70.14 	States Code, title 42, section 18022(e), then subdivision 5 shall apply to diagnostic services 
70.15 	or testing only after the enrollee has met their health plan's deductible.

70.16 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
70.17 	plans offered, issued, or sold on or after that date.

70.18 	Sec. 8. Minnesota Statutes 2022, section 62A.673, subdivision 2, is amended to read:
70.19 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
70.20 	have the meanings given.
70.21 	(b) "Distant site" means a site at which a health care provider is located while providing 
70.22 	health care services or consultations by means of telehealth.
70.23 	(c) "Health care provider" means a health care professional who is licensed or registered 
70.24 	by the state to perform health care services within the provider's scope of practice and in 
70.25 	accordance with state law. A health care provider includes a mental health professional 
70.26 	under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04, 
70.27 	subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator 
70.28 	under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11, 
70.29 	subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
70.30 	(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
71.1 	(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan 
71.2 	includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental 
71.3 	plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed 
71.4 	to pay benefits directly to the policy holder.
71.5 	(f) "Originating site" means a site at which a patient is located at the time health care 
71.6 	services are provided to the patient by means of telehealth. For purposes of store-and-forward 
71.7 	technology, the originating site also means the location at which a health care provider 
71.8 	transfers or transmits information to the distant site.
71.9 	(g) "Store-and-forward technology" means the asynchronous electronic transfer or 
71.10 	transmission of a patient's medical information or data from an originating site to a distant 
71.11 	site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
71.12 	(h) "Telehealth" means the delivery of health care services or consultations through the 
71.13 	use of real time two-way interactive audio and visual communications to provide or support 
71.14 	health care delivery and facilitate the assessment, diagnosis, consultation, treatment, 
71.15 	education, and care management of a patient's health care. Telehealth includes the application 
71.16 	of secure video conferencing, store-and-forward technology, and synchronous interactions 
71.17 	between a patient located at an originating site and a health care provider located at a distant 
71.18 	site. Until July 1, 2023 2025, telehealth also includes audio-only communication between 
71.19 	a health care provider and a patient in accordance with subdivision 6, paragraph (b). 
71.20 	Telehealth does not include communication between health care providers that consists 
71.21 	solely of a telephone conversation, email, or facsimile transmission. Telehealth does not 
71.22 	include communication between a health care provider and a patient that consists solely of 
71.23 	an email or facsimile transmission. Telehealth does not include telemonitoring services as 
71.24 	defined in paragraph (i).
71.25 	(i) "Telemonitoring services" means the remote monitoring of clinical data related to 
71.26 	the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits 
71.27 	the data electronically to a health care provider for analysis. Telemonitoring is intended to 
71.28 	collect an enrollee's health-related data for the purpose of assisting a health care provider 
71.29 	in assessing and monitoring the enrollee's medical condition or status.

71.30 	Sec. 9. [62D.1071] COVERAGE OF LICENSED PHARMACIST SERVICES.
71.31 		Subdivision 1.Pharmacist. All health maintenance contracts must provide benefits 
71.32 	relating to expenses incurred for medical treatment or services provided by a licensed 
71.33 	pharmacist, to the extent the medical treatment or services are within the pharmacist's scope 
72.1 	of practice, if the health maintenance contract provides benefits relating to expenses incurred 
72.2 	for the same medical treatment or services provided by a licensed physician.
72.3 		Subd. 2.Denial of benefits. When paying claims for enrollees in Minnesota, a health 
72.4 	maintenance organization must not deny payment for medical services covered by an 
72.5 	enrollee's health maintenance contract if the services are lawfully performed by a licensed 
72.6 	pharmacist.
72.7 		Subd. 3.Medication therapy management. This section does not apply to or affect 
72.8 	the coverage or reimbursement for medication therapy management services under section 
72.9 	62Q.676 or 256B.0625, subdivisions 5, 13h, and 28a.

72.10 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
72.11 	plans offered, issued, or renewed on or after that date.

72.12 	Sec. 10. Minnesota Statutes 2022, section 62J.497, subdivision 1, is amended to read:
72.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
72.14 	the meanings given.
72.15 	(b) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 
72.16 	30. Dispensing does not include the direct administering of a controlled substance to a 
72.17 	patient by a licensed health care professional.
72.18 	(c) "Dispenser" means a person authorized by law to dispense a controlled substance, 
72.19 	pursuant to a valid prescription.
72.20 	(d) "Electronic media" has the meaning given under Code of Federal Regulations, title 
72.21 	45, part 160.103.
72.22 	(e) "E-prescribing" means the transmission using electronic media of prescription or 
72.23 	prescription-related information between a prescriber, dispenser, pharmacy benefit manager, 
72.24 	or group purchaser, either directly or through an intermediary, including an e-prescribing 
72.25 	network. E-prescribing includes, but is not limited to, two-way transmissions between the 
72.26 	point of care and the dispenser and two-way transmissions related to eligibility, formulary, 
72.27 	and medication history information.
72.28 	(f) "Electronic prescription drug program" means a program that provides for 
72.29 	e-prescribing.
72.30 	(g) "Group purchaser" has the meaning given in section 62J.03, subdivision 6.
72.31 	(h) "HL7 messages" means a standard approved by the standards development 
72.32 	organization known as Health Level Seven.
73.1 	(i) "National Provider Identifier" or "NPI" means the identifier described under Code 
73.2 	of Federal Regulations, title 45, part 162.406.
73.3 	(j) "NCPDP" means the National Council for Prescription Drug Programs, Inc.
73.4 	(k) "NCPDP Formulary and Benefits Standard" means the most recent version of the 
73.5 	National Council for Prescription Drug Programs Formulary and Benefits Standard or the 
73.6 	most recent standard adopted by the Centers for Medicare and Medicaid Services for 
73.7 	e-prescribing under Medicare Part D as required by section 1860D-4(e)(4)(D) of the Social 
73.8 	Security Act and regulations adopted under it. The standards shall be implemented according 
73.9 	to the Centers for Medicare and Medicaid Services schedule for compliance.
73.10 	(l) "NCPDP Real-Time Prescription Benefit Standard" means the most recent National 
73.11 	Council for Prescription Drug Programs Real-Time Prescription Benefit Standard adopted 
73.12 	by the Centers for Medicare and Medicaid Services for e-prescribing under Medicare Part 
73.13 	D as required by section 1860D-4(e)(2) of the Social Security Act, and regulations adopted 
73.14 	pursuant to that section.
73.15 	(l) (m) "NCPDP SCRIPT Standard" means the most recent version of the National 
73.16 	Council for Prescription Drug Programs SCRIPT Standard, or the most recent standard 
73.17 	adopted by the Centers for Medicare and Medicaid Services for e-prescribing under Medicare 
73.18 	Part D as required by section 1860D-4(e)(4)(D) of the Social Security Act, and regulations 
73.19 	adopted under it. The standards shall be implemented according to the Centers for Medicare 
73.20 	and Medicaid Services schedule for compliance.
73.21 	(m) (n) "Pharmacy" has the meaning given in section 151.01, subdivision 2.
73.22 	(o) "Pharmacy benefit manager" has the meaning given in section 62W.02, subdivision 
73.23 	15.
73.24 	(n) (p) "Prescriber" means a licensed health care practitioner, other than a veterinarian, 
73.25 	as defined in section 151.01, subdivision 23.
73.26 	(o) (q) "Prescription-related information" means information regarding eligibility for 
73.27 	drug benefits, medication history, or related health or drug information.
73.28 	(p) (r) "Provider" or "health care provider" has the meaning given in section 62J.03, 
73.29 	subdivision 8.
73.30 	(s) "Real-time prescription benefit tool" means a tool that is capable of being integrated 
73.31 	into a prescriber's e-prescribing system and that provides a prescriber with up-to-date and 
73.32 	patient-specific formulary and benefit information at the time the prescriber submits a 
73.33 	prescription.

74.1 	Sec. 11. Minnesota Statutes 2022, section 62J.497, subdivision 3, is amended to read:
74.2 		Subd. 3.Standards for electronic prescribing. (a) Prescribers and dispensers must use 
74.3 	the NCPDP SCRIPT Standard for the communication of a prescription or prescription-related 
74.4 	information.
74.5 	(b) Providers, group purchasers, prescribers, and dispensers must use the NCPDP SCRIPT 
74.6 	Standard for communicating and transmitting medication history information.
74.7 	(c) Providers, group purchasers, prescribers, and dispensers must use the NCPDP 
74.8 	Formulary and Benefits Standard for communicating and transmitting formulary and benefit 
74.9 	information.
74.10 	(d) Providers, group purchasers, prescribers, and dispensers must use the national provider 
74.11 	identifier to identify a health care provider in e-prescribing or prescription-related transactions 
74.12 	when a health care provider's identifier is required.
74.13 	(e) Providers, group purchasers, prescribers, and dispensers must communicate eligibility 
74.14 	information and conduct health care eligibility benefit inquiry and response transactions 
74.15 	according to the requirements of section 62J.536.
74.16 	(f) Group purchasers and pharmacy benefit managers must use a real-time prescription 
74.17 	benefit tool that complies with the NCPDP Real-Time Prescription Benefit Standard and 
74.18 	that, at a minimum, notifies a prescriber:
74.19 	(1) if a prescribed drug is covered by the patient's group purchaser or pharmacy benefit 
74.20 	manager;
74.21 	(2) if a prescribed drug is included on the formulary or preferred drug list of the patient's 
74.22 	group purchaser or pharmacy benefit manager;
74.23 	(3) of any patient cost-sharing for the prescribed drug;
74.24 	(4) if prior authorization is required for the prescribed drug; and
74.25 	(5) of a list of any available alternative drugs that are in the same class as the drug 
74.26 	originally prescribed and for which prior authorization is not required.

74.27 	EFFECTIVE DATE. This section is effective January 1, 2024.

74.28 	Sec. 12. [62J.811] PROVIDER BALANCE BILLING REQUIREMENTS.
74.29 		Subdivision 1.Billing requirements. (a) Each health care provider and health facility 
74.30 	shall comply with the federal Consolidated Appropriations Act, 2021, Division BB also 
74.31 	known as the "No Surprises Act," including any federal regulations adopted under that act.
75.1 	(b) For the purposes of this section, "provider" or "facility" means any health care 
75.2 	provider or facility pursuant to section 62A.63, subdivision 2, or 62J.03, subdivision 8, that 
75.3 	is subject to relevant provisions of the No Surprises Act.
75.4 		Subd. 2.Investigations and compliance. (a) The commissioner shall, to the extent 
75.5 	practicable, seek the cooperation of health care providers and facilities, and may provide 
75.6 	any support and assistance as available, in obtaining compliance with this section.
75.7 	(b) The commissioner shall determine the manner and processes for fulfilling any 
75.8 	responsibilities and taking any of the actions in paragraphs (c) to (f).
75.9 	(c) A person who believes a health care provider or facility has not complied with the 
75.10 	requirements of the No Surprises Act or this section may file a complaint with the 
75.11 	commissioner in the manner determined by the commissioner.
75.12 	(d) The commissioner shall conduct compliance reviews and investigate complaints 
75.13 	filed under this section in the manner determined by the commissioner to ascertain whether 
75.14 	health care providers and facilities are complying with this section.
75.15 	(e) The commissioner may report violations under this section to other relevant federal 
75.16 	and state departments and jurisdictions as appropriate, including the attorney general and 
75.17 	relevant licensing boards, and may also coordinate on investigations and enforcement of 
75.18 	this section with other relevant federal and state departments and jurisdictions as appropriate, 
75.19 	including the attorney general and relevant licensing boards.
75.20 	(f) A health care provider or facility may contest whether the finding of facts constitute 
75.21 	a violation of this section according to the contested case proceeding in sections 14.57 to 
75.22 	14.62, subject to appeal according to sections 14.63 to 14.68.
75.23 	(g) Any data collected by the commissioner as part of an active investigation or active 
75.24 	compliance review under this section are classified (1) if the data is not on individuals, it 
75.25 	is classified as protected nonpublic data pursuant to section 13.02 subdivision 13; or (2) if 
75.26 	the data is on individuals, it is classified as confidential pursuant to sections 13.02, 
75.27 	subdivision 3. Data describing the final disposition of an investigative or compliance review 
75.28 	are classified as public.
75.29 		Subd. 3.Civil penalty. (a) The commissioner, in monitoring and enforcing this section, 
75.30 	may levy a civil monetary penalty against each health care provider or facility found to be 
75.31 	in violation of up to $100 for each violation, but may not exceed $25,000 for identical 
75.32 	violations during a calendar year.
76.1 	(b) No civil monetary penalty shall be imposed under this section for violations that 
76.2 	occur prior to January 1, 2024.

76.3 	Sec. 13. Minnesota Statutes 2022, section 62J.824, is amended to read:
76.4 	62J.824 FACILITY FEE DISCLOSURE.
76.5 	(a) Prior to the delivery of nonemergency services, a provider-based clinic that charges 
76.6 	a facility fee shall provide notice to any patient, including patients served by telehealth as 
76.7 	defined in section 62A.673, subdivision 2, paragraph (h), stating that the clinic is part of a 
76.8 	hospital and the patient may receive a separate charge or billing for the facility component, 
76.9 	which may result in a higher out-of-pocket expense.
76.10 	(b) Each health care facility must post prominently in locations easily accessible to and 
76.11 	visible by patients, including on its website, a statement that the provider-based clinic is 
76.12 	part of a hospital and the patient may receive a separate charge or billing for the facility, 
76.13 	which may result in a higher out-of-pocket expense.
76.14 	(c) This section does not apply to laboratory services, imaging services, or other ancillary 
76.15 	health services that are provided by staff who are not employed by the health care facility 
76.16 	or clinic.
76.17 	(d) For purposes of this section:
76.18 	(1) "facility fee" means any separate charge or billing by a provider-based clinic in 
76.19 	addition to a professional fee for physicians' services that is intended to cover building, 
76.20 	electronic medical records systems, billing, and other administrative and operational 
76.21 	expenses; and
76.22 	(2) "provider-based clinic" means the site of an off-campus clinic or provider office, 
76.23 	located at least 250 yards from the main hospital buildings or as determined by the Centers 
76.24 	for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144
76.25 	or a health system that operates one or more hospitals licensed under chapter 144, and is 
76.26 	primarily engaged in providing diagnostic and therapeutic care, including medical history, 
76.27 	physical examinations, assessment of health status, and treatment monitoring. This definition 
76.28 	does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, 
76.29 	pharmacy, or educational services and does not include facilities designated as rural health 
76.30 	clinics.

77.1 	Sec. 14. [62J.826] MEDICAL AND DENTAL PRACTICES; CURRENT STANDARD 
77.2 	CHARGES; COMPARISON TOOL.
77.3 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
77.4 	(b) "CDT code" means a code value drawn from the Code on Dental Procedures and 
77.5 	Nomenclature published by the American Dental Association.
77.6 	(c) "Chargemaster" means the list of all individual items and services maintained by a 
77.7 	medical or dental practice for which the medical or dental practice has established a charge.
77.8 	(d) "Commissioner" means the commissioner of health.
77.9 	(e) "CPT code" means a code value drawn from the Current Procedural Terminology 
77.10 	published by the American Medical Association.
77.11 	(f) "Dental service" means a service charged using a CDT code.
77.12 	(g) "Diagnostic laboratory testing" means a service charged using a CPT code within 
77.13 	the CPT code range of 80047 to 89398.
77.14 	(h) "Diagnostic radiology service" means a service charged using a CPT code within 
77.15 	the CPT code range of 70010 to 79999 and includes the provision of x-rays, computed 
77.16 	tomography scans, positron emission tomography scans, magnetic resonance imaging scans, 
77.17 	and mammographies.
77.18 	(i) "Hospital" means an acute care institution licensed under sections 144.50 to 144.58, 
77.19 	but does not include a health care institution conducted for those who rely primarily upon 
77.20 	treatment by prayer or spiritual means in accordance with the creed or tenets of any church 
77.21 	or denomination.
77.22 	(j) "Medical or dental practice" means a business that:
77.23 	(1) earns revenue by providing medical care or dental services to the public;
77.24 	(2) issues payment claims to health plan companies and other payers; and
77.25 	(3) may be identified by its federal tax identification number.
77.26 	(k) "Outpatient surgical center" means a health care facility other than a hospital offering 
77.27 	elective outpatient surgery under a license issued under sections 144.50 to 144.58.
77.28 	(l) "Standard charge" means the regular rate established by the medical or dental practice 
77.29 	for an item or service provided to a specific group of paying patients. This includes all of 
77.30 	the following:
78.1 	(1) the charge for an individual item or service that is reflected on a medical or dental 
78.2 	practice's chargemaster, absent any discounts;
78.3 	(2) the charge that a medical or dental practice has negotiated with a third-party payer 
78.4 	for an item or service;
78.5 	(3) the lowest charge that a medical or dental practice has negotiated with all third-party 
78.6 	payers for an item or service;
78.7 	(4) the highest charge that a medical or dental practice has negotiated with all third-party 
78.8 	payers for an item or service; and
78.9 	(5) the charge that applies to an individual who pays cash, or cash equivalent, for an 
78.10 	item or service.
78.11 		Subd. 2.Requirement; current standard charges. The following medical or dental 
78.12 	practices must make available to the public a list of their current standard charges for all 
78.13 	items and services, as reflected in the medical or dental practice's chargemaster, provided 
78.14 	by the medical or dental practice:
78.15 	(1) hospitals;
78.16 	(2) outpatient surgical centers; and
78.17 	(3) any other medical or dental practice that has revenue of greater than $50,000,000 
78.18 	per year and that derives the majority of its revenue by providing one or more of the following 
78.19 	services:
78.20 	(i) diagnostic radiology services;
78.21 	(ii) diagnostic laboratory testing;
78.22 	(iii) orthopedic surgical procedures, including joint arthroplasty procedures within the 
78.23 	CPT code range of 26990 to 27899;
78.24 	(iv) ophthalmologic surgical procedures, including cataract surgery coded using CPT 
78.25 	code 66982 or 66984, or refractive correction surgery to improve visual acuity;
78.26 	(v) anesthesia services commonly provided as an ancillary to services provided at a 
78.27 	hospital, outpatient surgical center, or medical practice that provides orthopedic surgical 
78.28 	procedures or ophthalmologic surgical procedures;
78.29 	(vi) oncology services, including radiation oncology treatments within the CPT code 
78.30 	range of 77261 to 77799 and drug infusions; or
78.31 	(vii) dental services.
79.1 		Subd. 3.Required file format and content. (a) A medical or dental practice that is 
79.2 	subject to this section must make available to the public, and must report to the commissioner, 
79.3 	current standard charges using the format and data elements specified in the currently 
79.4 	effective version of the Hospital Price Transparency Sample Format (Tall) (CSV) and related 
79.5 	data dictionary recommended for hospitals by the Centers for Medicare and Medicaid 
79.6 	Services (CMS). If CMS modifies or replaces the specifications for this format, the form 
79.7 	of this file must be modified or replaced to conform with the new CMS specifications by 
79.8 	the date specified by CMS for compliance with its new specifications. All prices included 
79.9 	in the file must be expressed as dollar amounts. The data must be in the form of a comma 
79.10 	separated values file which can be directly imported, without further editing or remediation, 
79.11 	into a relational database table which has been designed to receive these files. The medical 
79.12 	or dental practice must make the file available to the public in a manner specified by the 
79.13 	commissioner and must report the file to the commissioner in a manner and frequency 
79.14 	specified by the commissioner.
79.15 	(b) A medical or dental practice must test its file for compliance with paragraph (a) 
79.16 	before making the file available to the public and reporting the file to the commissioner.
79.17 	(c) A hospital must comply with this section no later than January 1, 2024. A medical 
79.18 	or dental practice that meets the requirements in subdivision 2, clause (3), or an outpatient 
79.19 	surgical center must comply with this section no later than January 1, 2025.

79.20 	Sec. 15. Minnesota Statutes 2022, section 62J.84, subdivision 2, is amended to read:
79.21 		Subd. 2.Definitions. (a) For purposes of this section and section 62J.841, the terms 
79.22 	defined in this subdivision have the meanings given.
79.23 	(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics 
79.24 	license application approved under United States Code, title 42, section 262(K)(3).
79.25 	(c) "Brand name drug" means a drug that is produced or distributed pursuant to:
79.26 	(1) an original,a new drug application approved under United States Code, title 21, 
79.27 	section 355(c), except for a generic drug as defined under Code of Federal Regulations, 
79.28 	title 42, section 447.502; or
79.29 	(2) a biologics license application approved under United States Code, title 4542, section 
79.30 	262(a)(c).
79.31 	(d) "Commissioner" means the commissioner of health.
79.32 	(e) "Generic drug" means a drug that is marketed or distributed pursuant to:
80.1 	(1) an abbreviated new drug application approved under United States Code, title 21, 
80.2 	section 355(j);
80.3 	(2) an authorized generic as defined under Code of Federal Regulations, title 4542, 
80.4 	section 447.502; or
80.5 	(3) a drug that entered the market the year before 1962 and was not originally marketed 
80.6 	under a new drug application.
80.7 	(f) "Manufacturer" means a drug manufacturer licensed under section 151.252, but does 
80.8 	not include an entity required to be licensed under that section solely because the entity 
80.9 	repackages or relabels drugs. The provisions of this paragraph shall not be severable from 
80.10 	section 62Q.83. If this paragraph or its application to any individual, entity, or circumstance 
80.11 	is found to be void for any reason, section 62Q.83 shall be void also.
80.12 	(g) "New prescription drug" or "new drug" means a prescription drug approved for 
80.13 	marketing by the United States Food and Drug Administration (FDA) for which no previous 
80.14 	wholesale acquisition cost has been established for comparison.
80.15 	(h) "Patient assistance program" means a program that a manufacturer offers to the public 
80.16 	in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs 
80.17 	by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other 
80.18 	means.
80.19 	(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision 
80.20 	8.
80.21 	(j) "Price" means the wholesale acquisition cost as defined in United States Code, title 
80.22 	42, section 1395w-3a(c)(6)(B).
80.23 	(k) "30-day supply" means the total daily dosage units of a prescription drug 
80.24 	recommended by the prescribing label approved by the FDA for 30 days. If the 
80.25 	FDA-approved prescribing label includes more than one recommended daily dosage, the 
80.26 	30-day supply is based on the maximum recommended daily dosage on the FDA-approved 
80.27 	prescribing label.
80.28 	(l) "Course of treatment" means the total dosage of a single prescription for a prescription 
80.29 	drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing 
80.30 	label includes more than one recommended dosage for a single course of treatment, the 
80.31 	course of treatment is the maximum recommended dosage on the FDA-approved prescribing 
80.32 	label.
81.1 	(m) "Drug product family" means a group of one or more prescription drugs that share 
81.2 	a unique generic drug description or nontrade name and dosage form.
81.3 	(n) "National drug code" means the three-segment code maintained by the federal Food 
81.4 	and Drug Administration that includes a labeler code, a product code, and a package code 
81.5 	for a drug product and that has been converted to an 11-digit format consisting of five digits 
81.6 	in the first segment, four digits in the second segment, and two digits in the third segment. 
81.7 	A three-segment code shall be considered converted to an 11-digit format when, as necessary, 
81.8 	at least one "0" has been added to the front of each segment containing less than the specified 
81.9 	number of digits such that each segment contains the specified number of digits.
81.10 	(o) "Pharmacy" or "pharmacy provider" means a place of business licensed by the Board 
81.11 	of Pharmacy under section 151.19 in which prescription drugs are prepared, compounded, 
81.12 	or dispensed under the supervision of a pharmacist.
81.13 	(p) "Pharmacy benefits manager" or "PBM" means an entity licensed to act as a pharmacy 
81.14 	benefits manager under section 62W.03.
81.15 	(q) "Pricing unit" means the smallest dispensable amount of a prescription drug product 
81.16 	that could be dispensed.
81.17 	(r) "Reporting entity" means any manufacturer, pharmacy, pharmacy benefits manager, 
81.18 	wholesale drug distributor, or any other entity required to submit data under this section.
81.19 	(s) "Wholesale drug distributor" or "wholesaler" means an entity that:
81.20 	(1) is licensed to act as a wholesale drug distributor under section 151.47; and
81.21 	(2) distributes prescription drugs, for which it is not the manufacturer, to persons or 
81.22 	entities, or both, other than a consumer or patient in the state.

81.23 	Sec. 16. Minnesota Statutes 2022, section 62J.84, subdivision 3, is amended to read:
81.24 		Subd. 3.Prescription drug price increases reporting. (a) Beginning January 1, 2022, 
81.25 	a drug manufacturer must submit to the commissioner the information described in paragraph 
81.26 	(b) for each prescription drug for which the price was $100 or greater for a 30-day supply 
81.27 	or for a course of treatment lasting less than 30 days and:
81.28 	(1) for brand name drugs where there is an increase of ten percent or greater in the price 
81.29 	over the previous 12-month period or an increase of 16 percent or greater in the price over 
81.30 	the previous 24-month period; and
81.31 	(2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in 
81.32 	the price over the previous 12-month period.
82.1 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
82.2 	the commissioner no later than 60 days after the price increase goes into effect, in the form 
82.3 	and manner prescribed by the commissioner, the following information, if applicable:
82.4 	(1) the name description and price of the drug and the net increase, expressed as a 
82.5 	percentage;, with the following listed separately:
82.6 	(i) the national drug code;
82.7 	(ii) the product name;
82.8 	(iii) the dosage form;
82.9 	(iv) the strength;
82.10 	(v) the package size;
82.11 	(2) the factors that contributed to the price increase;
82.12 	(3) the name of any generic version of the prescription drug available on the market;
82.13 	(4) the introductory price of the prescription drug when it was approved for marketing 
82.14 	by the Food and Drug Administration and the net yearly increase, by calendar year, in the 
82.15 	price of the prescription drug during the previous five years introduced for sale in the United 
82.16 	States and the price of the drug on the last day of each of the five calendar years preceding 
82.17 	the price increase;
82.18 	(5) the direct costs incurred during the previous 12-month period by the manufacturer 
82.19 	that are associated with the prescription drug, listed separately:
82.20 	(i) to manufacture the prescription drug;
82.21 	(ii) to market the prescription drug, including advertising costs; and
82.22 	(iii) to distribute the prescription drug;
82.23 	(6) the total sales revenue for the prescription drug during the previous 12-month period;
82.24 	(7) the manufacturer's net profit attributable to the prescription drug during the previous 
82.25 	12-month period;
82.26 	(8) the total amount of financial assistance the manufacturer has provided through patient 
82.27 	prescription assistance programs during the previous 12-month period, if applicable;
82.28 	(9) any agreement between a manufacturer and another entity contingent upon any delay 
82.29 	in offering to market a generic version of the prescription drug;
82.30 	(10) the patent expiration date of the prescription drug if it is under patent;
83.1 	(11) the name and location of the company that manufactured the drug; and
83.2 	(12) if a brand name prescription drug, the ten highest prices price paid for the 
83.3 	prescription drug during the previous calendar year in any country other than the ten 
83.4 	countries, excluding the United States., that charged the highest single price for the 
83.5 	prescription drug; and
83.6 	(13) if the prescription drug was acquired by the manufacturer during the previous 
83.7 	12-month period, all of the following information:
83.8 	(i) price at acquisition;
83.9 	(ii) price in the calendar year prior to acquisition;
83.10 	(iii) name of the company from which the drug was acquired;
83.11 	(iv) date of acquisition; and
83.12 	(v) acquisition price.
83.13 	(c) The manufacturer may submit any documentation necessary to support the information 
83.14 	reported under this subdivision.

83.15 	Sec. 17. Minnesota Statutes 2022, section 62J.84, subdivision 4, is amended to read:
83.16 		Subd. 4.New prescription drug price reporting. (a) Beginning January 1, 2022, no 
83.17 	later than 60 days after a manufacturer introduces a new prescription drug for sale in the 
83.18 	United States that is a new brand name drug with a price that is greater than the tier threshold 
83.19 	established by the Centers for Medicare and Medicaid Services for specialty drugs in the 
83.20 	Medicare Part D program for a 30-day supply or for a course of treatment lasting less than 
83.21 	30 days or a new generic or biosimilar drug with a price that is greater than the tier threshold 
83.22 	established by the Centers for Medicare and Medicaid Services for specialty drugs in the 
83.23 	Medicare Part D program for a 30-day supply or for a course of treatment lasting less than 
83.24 	30 days and is not at least 15 percent lower than the referenced brand name drug when the 
83.25 	generic or biosimilar drug is launched, the manufacturer must submit to the commissioner, 
83.26 	in the form and manner prescribed by the commissioner, the following information, if 
83.27 	applicable:
83.28 	(1) the description of the drug, with the following listed separately:
83.29 	(i) the national drug code;
83.30 	(ii) the product name;
83.31 	(iii) the dosage form;
84.1 	(iv) the strength;
84.2 	(v) the package size;
84.3 	(1) (2) the price of the prescription drug;
84.4 	(2) (3) whether the Food and Drug Administration granted the new prescription drug a 
84.5 	breakthrough therapy designation or a priority review;
84.6 	(3) (4) the direct costs incurred by the manufacturer that are associated with the 
84.7 	prescription drug, listed separately:
84.8 	(i) to manufacture the prescription drug;
84.9 	(ii) to market the prescription drug, including advertising costs; and
84.10 	(iii) to distribute the prescription drug; and
84.11 	(4) (5) the patent expiration date of the drug if it is under patent.
84.12 	(b) The manufacturer may submit documentation necessary to support the information 
84.13 	reported under this subdivision.

84.14 	Sec. 18. Minnesota Statutes 2022, section 62J.84, subdivision 6, is amended to read:
84.15 		Subd. 6.Public posting of prescription drug price information. (a) The commissioner 
84.16 	shall post on the department's website, or may contract with a private entity or consortium 
84.17 	that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the 
84.18 	following information:
84.19 	(1) a list of the prescription drugs reported under subdivisions 3, 4, and 5to 6 and 9 to 
84.20 	14, and the manufacturers of those prescription drugs; and
84.21 	(2) information reported to the commissioner under subdivisions 3, 4, and 5to 6 and 9 
84.22 	to 14.; and
84.23 	(3) information reported to the commissioner under section 62J.841, subdivision 2.
84.24 	(b) The information must be published in an easy-to-read format and in a manner that 
84.25 	identifies the information that is disclosed on a per-drug basis and must not be aggregated 
84.26 	in a manner that prevents the identification of the prescription drug.
84.27 	(c) The commissioner shall not post to the department's website or a private entity 
84.28 	contracting with the commissioner shall not post any information described in this section 
84.29 	if the information is not public data under section 13.02, subdivision 8a; or, subject to section 
84.30 	62J.841, subdivision 2, paragraph (e), is trade secret information under section 13.37, 
85.1 	subdivision 1, paragraph (b); or, subject to section 62J.841, subdivision 2, paragraph (e), 
85.2 	is trade secret information pursuant to the Defend Trade Secrets Act of 2016, United States 
85.3 	Code, title 18, section 1836, as amended. If a manufacturer believes information should be 
85.4 	withheld from public disclosure pursuant to this paragraph, the manufacturer must clearly 
85.5 	and specifically identify that information and describe the legal basis in writing when the 
85.6 	manufacturer submits the information under this section. If the commissioner disagrees 
85.7 	with the manufacturer's request to withhold information from public disclosure, the 
85.8 	commissioner shall provide the manufacturer written notice that the information will be 
85.9 	publicly posted 30 days after the date of the notice.
85.10 	(d) If the commissioner withholds any information from public disclosure pursuant to 
85.11 	this subdivision, the commissioner shall post to the department's website a report describing 
85.12 	the nature of the information and the commissioner's basis for withholding the information 
85.13 	from disclosure.
85.14 	(e) To the extent the information required to be posted under this subdivision is collected 
85.15 	and made available to the public by another state, by the University of Minnesota, or through 
85.16 	an online drug pricing reference and analytical tool, the commissioner may reference the 
85.17 	availability of this drug price data from another source including, within existing 
85.18 	appropriations, creating the ability of the public to access the data from the source for 
85.19 	purposes of meeting the reporting requirements of this subdivision.
85.20 	(f) The provisions in this subdivision referencing 62J.841 shall not be severable from 
85.21 	section 62Q.83. If any reference to section 62J.841 or its application to any individual, 
85.22 	entity, or circumstance is found to be void for any reason, section 62Q.83 shall be void also.

85.23 	Sec. 19. Minnesota Statutes 2022, section 62J.84, subdivision 7, is amended to read:
85.24 		Subd. 7.Consultation. (a) The commissioner may consult with a private entity or 
85.25 	consortium that satisfies the standards of section 62U.04, subdivision 6, the University of 
85.26 	Minnesota, or the commissioner of commerce, as appropriate, in issuing the form and format 
85.27 	of the information reported under this section and section 62J.841; in posting information 
85.28 	pursuant to subdivision 6; and in taking any other action for the purpose of implementing 
85.29 	this section and section 62J.841.
85.30 	(b) The commissioner may consult with representatives of the manufacturersreporting 
85.31 	entities to establish a standard format for reporting information under this section and section 
85.32 	62J.841 and may use existing reporting methodologies to establish a standard format to 
85.33 	minimize administrative burdens to the state and manufacturersreporting entities.
86.1 	(c) The provisions in this subdivision referencing 62J.841 shall not be severable from 
86.2 	section 62Q.83. If any reference to section 62J.841 or its application to any individual, 
86.3 	entity, or circumstance is found to be void for any reason, section 62Q.83 shall be void also.

86.4 	Sec. 20. Minnesota Statutes 2022, section 62J.84, subdivision 8, is amended to read:
86.5 		Subd. 8.Enforcement and penalties. (a) A manufacturerreporting entity may be subject 
86.6 	to a civil penalty, as provided in paragraph (b), for:
86.7 	(1) failing to register under subdivision 15;
86.8 	(1) (2) failing to submit timely reports or notices as required by this section and section 
86.9 	62J.841;
86.10 	(2) (3) failing to provide information required under this section and section 62J.841; 
86.11 	or
86.12 	(3) (4) providing inaccurate or incomplete information under this section and section 
86.13 	62J.841; or
86.14 	(5) failing to comply with section 62J.841, subdivisions 2, paragraph (e), and 4.
86.15 	(b) The commissioner shall adopt a schedule of civil penalties, not to exceed $10,000 
86.16 	per day of violation, based on the severity of each violation.
86.17 	(c) The commissioner shall impose civil penalties under this section and section 62J.841 
86.18 	as provided in section 144.99, subdivision 4.
86.19 	(d) The commissioner may remit or mitigate civil penalties under this section and section 
86.20 	62J.841 upon terms and conditions the commissioner considers proper and consistent with 
86.21 	public health and safety.
86.22 	(e) Civil penalties collected under this section and section 62J.841 shall be deposited in 
86.23 	the health care access fund.
86.24 	(f) The provisions in this subdivision referencing 62J.841 shall not be severable from 
86.25 	section 62Q.83. If any reference to section 62J.841 or its application to any individual, 
86.26 	entity, or circumstance is found to be void for any reason, section 62Q.83 shall be void also.

86.27 	Sec. 21. Minnesota Statutes 2022, section 62J.84, subdivision 9, is amended to read:
86.28 		Subd. 9.Legislative report. (a) No later than May 15, 2022 2024, and by January 15 
86.29 	of each year thereafter, the commissioner shall report to the chairs and ranking minority 
86.30 	members of the legislative committees with jurisdiction over commerce and health and 
87.1 	human services policy and finance on the implementation of this section and section 62J.841, 
87.2 	including but not limited to the effectiveness in addressing the following goals:
87.3 	(1) promoting transparency in pharmaceutical pricing for the state, health carriers, and 
87.4 	other payers;
87.5 	(2) enhancing the understanding on pharmaceutical spending trends; and
87.6 	(3) assisting the state, health carriers, and other payers in the management of 
87.7 	pharmaceutical costs and limiting formulary changes due to prescription drug cost increases 
87.8 	during a coverage year.
87.9 	(b) The report must include a summary of the information submitted to the commissioner 
87.10 	under subdivisions 3, 4, and 5to 6 and 9 to 14, and section 62J.841.
87.11 	(c) The provisions in this subdivision shall not be severable from section 62Q.83. If this 
87.12 	subdivision or its application to any individual, entity, or circumstance is found to be void 
87.13 	for any reason, section 62Q.83 shall be void also.

87.14 	Sec. 22. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
87.15 	read:
87.16 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
87.17 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
87.18 	department's website a list of prescription drugs that the commissioner determines to represent 
87.19 	a substantial public interest and for which the department intends to request data under 
87.20 	subdivisions 9 to 14, subject to paragraph (c). The commissioner shall base its inclusion of 
87.21 	prescription drugs on any information the commissioner determines is relevant to providing 
87.22 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
87.23 	the state, and the department shall consider drug product families that include prescription 
87.24 	drugs:
87.25 	(1) that triggered reporting under subdivisions 3, 4, or 6 during the previous calendar 
87.26 	quarter;
87.27 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
87.28 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
87.29 	are available; or
87.30 	(3) that are identified by members of the public during a public comment period process.
88.1 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
88.2 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
88.3 	department of the requirement to report under subdivisions 9 to 14.
88.4 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
88.5 	substantial public interest in any one notice.

88.6 	Sec. 23. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
88.7 	read:
88.8 		Subd. 11.Manufacturer prescription drug substantial public interest reporting. (a) 
88.9 	Beginning January 1, 2024, a manufacturer must submit to the commissioner the information 
88.10 	described in paragraph (b) for any prescription drug:
88.11 	(1) included in a notification to report issued to the manufacturer by the department 
88.12 	under subdivision 10;
88.13 	(2) which the manufacturer manufactures or repackages;
88.14 	(3) for which the manufacturer sets the wholesale acquisition cost; and
88.15 	(4) for which the manufacturer has not submitted data under subdivision 3 or 6 during 
88.16 	the 120-day period prior to the date of the notification to report.
88.17 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
88.18 	the commissioner no later than 60 days after the date of the notification to report, in the 
88.19 	form and manner prescribed by the commissioner, the following information, if applicable:
88.20 	(1) a description of the drug with the following listed separately:
88.21 	(i) the national drug code;
88.22 	(ii) the product name;
88.23 	(iii) the dosage form;
88.24 	(iv) the strength; and
88.25 	(v) the package size;
88.26 	(2) the price of the drug product on the later of:
88.27 	(i) the day one year prior to the date of the notification to report;
88.28 	(ii) the introduced to market date; or
88.29 	(iii) the acquisition date;
89.1 	(3) the price of the drug product on the date of the notification to report;
89.2 	(4) the introductory price of the prescription drug when it was introduced for sale in the 
89.3 	United States and the price of the drug on the last day of each of the five calendar years 
89.4 	preceding the date of the notification to report;
89.5 	(5) the direct costs incurred during the 12-month period prior to the date of the notification 
89.6 	to report by the manufacturers that are associated with the prescription drug, listed separately:
89.7 	(i) to manufacture the prescription drug;
89.8 	(ii) to market the prescription drug, including advertising costs; and
89.9 	(iii) to distribute the prescription drug;
89.10 	(6) the number of units of the prescription drug sold during the 12-month period prior 
89.11 	to the date of the notification to report;
89.12 	(7) the total sales revenue for the prescription drug during the 12-month period prior to 
89.13 	the date of the notification to report;
89.14 	(8) the total rebate payable amount accrued for the prescription drug during the 12-month 
89.15 	period prior to the date of the notification to report;
89.16 	(9) the manufacturer's net profit attributable to the prescription drug during the 12-month 
89.17 	period prior to the date of the notification to report;
89.18 	(10) the total amount of financial assistance the manufacturer has provided through 
89.19 	patient prescription assistance programs during the 12-month period prior to the date of the 
89.20 	notification to report, if applicable;
89.21 	(11) any agreement between a manufacturer and another entity contingent upon any 
89.22 	delay in offering to market a generic version of the prescription drug;
89.23 	(12) the patent expiration date of the prescription drug if the prescription drug is under 
89.24 	patent;
89.25 	(13) the name and location of the company that manufactured the drug;
89.26 	(14) if the prescription drug is a brand name prescription drug, the ten countries other 
89.27 	than the United States that paid the highest prices for the prescription drug during the 
89.28 	previous calendar year and their prices; and
89.29 	(15) if the prescription drug was acquired by the manufacturer within a 12-month period 
89.30 	prior to the date of the notification to report, all of the following information:
89.31 	(i) the price at acquisition;
90.1 	(ii) the price in the calendar year prior to acquisition;
90.2 	(iii) the name of the company from which the drug was acquired;
90.3 	(iv) the date of acquisition; and
90.4 	(v) the acquisition price.
90.5 	(c) The manufacturer may submit any documentation necessary to support the information 
90.6 	reported under this subdivision.

90.7 	Sec. 24. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
90.8 	read:
90.9 		Subd. 12.Pharmacy prescription drug substantial public interest reporting. (a) 
90.10 	Beginning January 1, 2024, a pharmacy must submit to the commissioner the information 
90.11 	described in paragraph (b) for any prescription drug included in a notification to report 
90.12 	issued to the pharmacy by the department under subdivision 9.
90.13 	(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the 
90.14 	commissioner no later than 60 days after the date of the notification to report, in the form 
90.15 	and manner prescribed by the commissioner, the following information, if applicable:
90.16 	(1) a description of the drug with the following listed separately:
90.17 	(i) the national drug code;
90.18 	(ii) the product name;
90.19 	(iii) the dosage form;
90.20 	(iv) the strength; and
90.21 	(v) the package size;
90.22 	(2) the number of units of the drug acquired during the 12-month period prior to the date 
90.23 	of the notification to report;
90.24 	(3) the total spent before rebates by the pharmacy to acquire the drug during the 12-month 
90.25 	period prior to the date of the notification to report;
90.26 	(4) the total rebate receivable amount accrued by the pharmacy for the drug during the 
90.27 	12-month period prior to the date of the notification to report;
90.28 	(5) the number of pricing units of the drug dispensed by the pharmacy during the 
90.29 	12-month period prior to the date of the notification to report;
91.1 	(6) the total payment receivable by the pharmacy for dispensing the drug including 
91.2 	ingredient cost, dispensing fee, and administrative fees during the 12-month period prior 
91.3 	to the date of the notification to report;
91.4 	(7) the total rebate payable amount accrued by the pharmacy for the drug during the 
91.5 	12-month period prior to the date of the notification to report; and
91.6 	(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed 
91.7 	where no claim was submitted to a health care service plan or health insurer during the 
91.8 	12-month period prior to the date of the notification to report.
91.9 	(c) The pharmacy may submit any documentation necessary to support the information 
91.10 	reported under this subdivision.

91.11 	Sec. 25. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
91.12 	read:
91.13 		Subd. 13.PBM prescription drug substantial public interest reporting. (a) Beginning 
91.14 	January 1, 2024, a PBM must submit to the commissioner the information described in 
91.15 	paragraph (b) for any prescription drug included in a notification to report issued to the 
91.16 	PBM by the department under subdivision 9.
91.17 	(b) For each of the drugs described in paragraph (a), the PBM shall submit to the 
91.18 	commissioner no later than 60 days after the date of the notification to report, in the form 
91.19 	and manner prescribed by the commissioner, the following information, if applicable:
91.20 	(1) a description of the drug with the following listed separately:
91.21 	(i) the national drug code;
91.22 	(ii) the product name;
91.23 	(iii) the dosage form;
91.24 	(iv) the strength; and
91.25 	(v) the package size;
91.26 	(2) the number of pricing units of the drug product filled for which the PBM administered 
91.27 	claims during the 12-month period prior to the date of the notification to report;
91.28 	(3) the total reimbursement amount accrued and payable to pharmacies for pricing units 
91.29 	of the drug product filled for which the PBM administered claims during the 12-month 
91.30 	period prior to the date of the notification to report;
92.1 	(4) the total reimbursement or administrative fee amount, or both, accrued and receivable 
92.2 	from payers for pricing units of the drug product filled for which the PBM administered 
92.3 	claims during the 12-month period prior to the date of the notification to report;
92.4 	(5) the total rebate receivable amount accrued by the PBM for the drug product during 
92.5 	the 12-month period prior to the date of the notification to report; and
92.6 	(6) the total rebate payable amount accrued by the PBM for the drug product during the 
92.7 	12-month period prior to the date of the notification to report.
92.8 	(c) The PBM may submit any documentation necessary to support the information 
92.9 	reported under this subdivision.

92.10 	Sec. 26. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
92.11 	read:
92.12 		Subd. 14.Wholesaler prescription drug substantial public interest reporting. (a) 
92.13 	Beginning January 1, 2024, a wholesaler must submit to the commissioner the information 
92.14 	described in paragraph (b) for any prescription drug included in a notification to report 
92.15 	issued to the wholesaler by the department under subdivision 10.
92.16 	(b) For each of the drugs described in paragraph (a), the wholesaler shall submit to the 
92.17 	commissioner no later than 60 days after the date of the notification to report, in the form 
92.18 	and manner prescribed by the commissioner, the following information, if applicable:
92.19 	(1) a description of the drug with the following listed separately:
92.20 	(i) the national drug code;
92.21 	(ii) the product name;
92.22 	(iii) the dosage form;
92.23 	(iv) the strength; and
92.24 	(v) the package size;
92.25 	(2) the number of units of the drug product acquired by the wholesale drug distributor 
92.26 	during the 12-month period prior to the date of the notification to report;
92.27 	(3) the total spent before rebates by the wholesale drug distributor to acquire the drug 
92.28 	product during the 12-month period prior to the date of the notification to report;
92.29 	(4) the total rebate receivable amount accrued by the wholesale drug distributor for the 
92.30 	drug product during the 12-month period prior to the date of the notification to report;
93.1 	(5) the number of units of the drug product sold by the wholesale drug distributor during 
93.2 	the 12-month period prior to the date of the notification to report;
93.3 	(6) gross revenue from sales in the United States generated by the wholesale drug 
93.4 	distributor for this drug product during the 12-month period prior to the date of the 
93.5 	notification to report; and
93.6 	(7) total rebate payable amount accrued by the wholesale drug distributor for the drug 
93.7 	product during the 12-month period prior to the date of the notification to report.
93.8 	(c) The wholesaler may submit any documentation necessary to support the information 
93.9 	reported under this subdivision.

93.10 	Sec. 27. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
93.11 	read:
93.12 		Subd. 15.Registration requirements. Beginning January 1, 2024, a reporting entity 
93.13 	subject to this chapter shall register with the department in a form and manner prescribed 
93.14 	by the commissioner.

93.15 	Sec. 28. Minnesota Statutes 2022, section 62J.84, is amended by adding a subdivision to 
93.16 	read:
93.17 		Subd. 16.Rulemaking. For the purposes of this section, the commissioner may use the 
93.18 	expedited rulemaking process under section 14.389.

93.19 	Sec. 29. [62J.841] REPORTING PRESCRIPTION DRUG PRICES; FORMULARY 
93.20 	DEVELOPMENT AND PRICE STABILITY.
93.21 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
93.22 	have the meanings given.
93.23 	(b) "Average wholesale price" means the customary reference price for sales by a drug 
93.24 	wholesaler to a retail pharmacy, as established and published by the manufacturer.
93.25 	(c) "National drug code" means the numerical code maintained by the United States 
93.26 	Food and Drug Administration and includes the label code, product code, and package code.
93.27 	(d) "Wholesale acquisition cost" has the meaning given in United States Code, title 42, 
93.28 	section 1395w-3a(c)(6)(B).
93.29 	(e) "Unit" has the meaning given in United States Code, title 42, section 1395w-3a(b)(2).
94.1 		Subd. 2.Price reporting. (a) Beginning July 31, 2024, and by July 31 of each year 
94.2 	thereafter, a manufacturer must report to the commissioner the information in paragraph 
94.3 	(b) for every drug with a wholesale acquisition cost of $100 or more for a 30-day supply 
94.4 	or for a course of treatment lasting less than 30 days, as applicable to the next calendar year.
94.5 	(b) A manufacturer shall report a drug's:
94.6 	(1) national drug code, labeler code, and the manufacturer name associated with the 
94.7 	labeler code;
94.8 	(2) brand name, if applicable;
94.9 	(3) generic name, if applicable;
94.10 	(4) wholesale acquisition cost for one unit;
94.11 	(5) measure that constitutes a wholesale acquisition cost unit;
94.12 	(6) average wholesale price; and
94.13 	(7) status as brand name or generic.
94.14 	(c) The effective date of the information described in paragraph (b) must be included in 
94.15 	the report to the commissioner.
94.16 	(d) A manufacturer must report the information described in this subdivision in the form 
94.17 	and manner specified by the commissioner.
94.18 	(e) Information reported under this subdivision is classified as public data not on 
94.19 	individuals, as defined in section 13.02, subdivision 14, and must not be classified by the 
94.20 	manufacturer as trade secret information, as defined in section 13.37, subdivision 1, paragraph 
94.21 	(b).
94.22 	(f) A manufacturer's failure to report the information required by this subdivision is 
94.23 	grounds for disciplinary action under section 151.071, subdivision 2.
94.24 		Subd. 3.Public posting of prescription drug price information. By October 1 of each 
94.25 	year, beginning October 1, 2024, the commissioner must post the information reported 
94.26 	under subdivision 2 on the department's website, as required by section 62J.84, subdivision 
94.27 	6.
94.28 		Subd. 4.Price change. (a) If a drug subject to price reporting under subdivision 2 is 
94.29 	included in the formulary of a health plan submitted to and approved by the commissioner 
94.30 	of commerce for the next calendar year under section 62A.02, subdivision 1, the manufacturer 
95.1 	may increase the wholesale acquisition cost of the drug for the next calendar year only after 
95.2 	providing the commissioner with at least 90 days written notice.
95.3 	(b) A manufacturer's failure to meet the requirements of paragraph (a) is grounds for 
95.4 	disciplinary action under section 151.071, subdivision 2.
95.5 		Subd. 5.Not severable. The provisions of this section shall not be severable from section 
95.6 	62Q.83. If any provision of this section or its application to any individual, entity, or 
95.7 	circumstance is found to be void for any reason, section 62Q.83 shall be void also.

95.8 	Sec. 30. Minnesota Statutes 2022, section 62K.10, subdivision 4, is amended to read:
95.9 		Subd. 4.Network adequacy. (a) Each designated provider network must include a 
95.10 	sufficient number and type of providers, including providers that specialize in mental health 
95.11 	and substance use disorder services, to ensure that covered services are available to all 
95.12 	enrollees without unreasonable delay. In determining network adequacy, the commissioner 
95.13 	of health shall consider availability of services, including the following:
95.14 	(1) primary care physician services are available and accessible 24 hours per day, seven 
95.15 	days per week, within the network area;
95.16 	(2) a sufficient number of primary care physicians have hospital admitting privileges at 
95.17 	one or more participating hospitals within the network area so that necessary admissions 
95.18 	are made on a timely basis consistent with generally accepted practice parameters;
95.19 	(3) specialty physician service is available through the network or contract arrangement;
95.20 	(4) mental health and substance use disorder treatment providers, including but not 
95.21 	limited to psychiatric residential treatment facilities, are available and accessible through 
95.22 	the network or contract arrangement;
95.23 	(5) to the extent that primary care services are provided through primary care providers 
95.24 	other than physicians, and to the extent permitted under applicable scope of practice in state 
95.25 	law for a given provider, these services shall be available and accessible; and
95.26 	(6) the network has available, either directly or through arrangements, appropriate and 
95.27 	sufficient personnel, physical resources, and equipment to meet the projected needs of 
95.28 	enrollees for covered health care services.
95.29 	(b) The commissioner may establish sufficiency by referencing any reasonable criteria, 
95.30 	which include but are not limited to:
95.31 	(1) ratios of providers to enrollees by specialty;
96.1 	(2) ratios of primary care professionals to enrollees;
96.2 	(3) geographic accessibility of providers;
96.3 	(4) waiting times for an appointment with participating providers;
96.4 	(5) hours of operation;
96.5 	(6) the ability of the network to meet the needs of enrollees that are:
96.6 	(i) low-income persons;
96.7 	(ii) children and adults with serious, chronic, or complex health conditions, physical 
96.8 	disabilities, or mental illness; or
96.9 	(iii) persons with limited English proficiency and persons from underserved communities;
96.10 	(7) other health care service delivery system options, including telemedicine or telehealth, 
96.11 	mobile clinics, centers of excellence, and other ways of delivering care; and
96.12 	(8) the volume of technological and specialty care services available to serve the needs 
96.13 	of enrollees that need technologically advanced or specialty care services.

96.14 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
96.15 	plans offered, issued, or renewed on or after that date.

96.16 	Sec. 31. [62Q.451] UNRESTRICTED ACCESS TO SERVICES FOR THE 
96.17 	DIAGNOSIS, MONITORING, AND TREATMENT OF RARE DISEASES.
96.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
96.19 	the meanings given.
96.20 	(b) "Rare disease or condition" means any disease or condition:
96.21 	(1) that affects fewer than 200,000 persons in the United States and is chronic, serious, 
96.22 	life-altering, or life-threatening;
96.23 	(2) that affects more than 200,000 persons in the United States and a drug for treatment 
96.24 	has been designated as a drug for a rare disease or condition pursuant to United States Code, 
96.25 	title 21, section 360bb;
96.26 	(3) that is labeled as a rare disease or condition on the Genetic and Rare Diseases 
96.27 	Information Center list created by the National Institutes of Health; or
96.28 	(4) for which an enrollee:
96.29 	(i) has received two or more clinical consultations from a primary care provider or 
96.30 	specialty provider that are specific to the presenting complaint;
97.1 	(ii) has documentation in the enrollee's medical record of a developmental delay through 
97.2 	standardized assessment, developmental regression, failure to thrive, or progressive 
97.3 	multisystemic involvement; and
97.4 	(iii) had laboratory or clinical testing that failed to provide a definitive diagnosis or 
97.5 	resulted in conflicting diagnoses.
97.6 	A rare disease or condition does not include an infectious disease that has widely available 
97.7 	and known protocols for diagnosis and treatment and that is commonly treated in a primary 
97.8 	care setting, even if it affects less than 200,000 persons in the United States.
97.9 		Subd. 2.Unrestricted access. (a) No health plan company may restrict the choice of an 
97.10 	enrollee as to where the enrollee receives services from a licensed health care provider 
97.11 	related to the diagnosis, monitoring, and treatment of a rare disease or condition, including 
97.12 	but not limited to additional restrictions through any prior authorization, preauthorization, 
97.13 	prior approval, precertification process, increased fees, or other methods.
97.14 	(b) Any services provided by, referred for, or ordered by an out-of-network provider for 
97.15 	an enrollee who, before receiving and being notified of a definitive diagnosis, satisfied the 
97.16 	requirements in subdivision 1, paragraph (b), clause (4), are governed by paragraph (c), 
97.17 	even if the subsequent definitive diagnosis does not meet the definition of rare disease or 
97.18 	condition in subdivision 1, paragraph (b), clause (1), (2), or (3). Once the enrollee is 
97.19 	definitively diagnosed with a disease or condition that does not meet the definition of rare 
97.20 	disease or condition in subdivision 1, paragraph (b), clause (1), (2), or (3), and the enrollee 
97.21 	or a parent or guardian of a minor enrollee has been notified of the diagnosis, any services 
97.22 	provided by, referred for, or ordered by an out-of-network provider related to the diagnosis 
97.23 	are governed by paragraph (c) for up to 60 days, providing time for care to be transferred 
97.24 	to a qualified in-network provider and to schedule needed in-network appointments. After 
97.25 	this 60-day period, subsequent services provided by, referred for, or ordered by an 
97.26 	out-of-network provider related to the diagnosis are no longer governed by paragraph (c).
97.27 	(c) Cost-sharing requirements and benefit or services limitations for the diagnosis and 
97.28 	treatment of a rare disease or condition must not place a greater financial burden on the 
97.29 	enrollee or be more restrictive than those requirements for in-network medical treatment.
97.30 	(d) A health plan company must provide enrollees with written information on the content 
97.31 	and application of this section and must train customer service representatives on the content 
97.32 	and application of this section.
98.1 		Subd. 3.Coverage; prior authorization. (a) Nothing in this section requires a health 
98.2 	plan company to provide coverage for a medication, procedure or treatment, or laboratory 
98.3 	or clinical testing, that is not covered under the enrollee's health plan.
98.4 	(b) Coverage for a service must not be denied solely on the basis that it was provided 
98.5 	by, referred for, or ordered by an out-of-network provider.
98.6 	(c) Any prior authorization requirements for a service that is provided by, referred for, 
98.7 	or ordered by an out-of-network provider must be the same as any prior authorization 
98.8 	requirements for a service that is provided by, referred for, or ordered by an in-network 
98.9 	provider.
98.10 		Subd. 4.Payments to out-of-network providers for services provided in this state. (a) 
98.11 	If a health plan company has an established contractual payment under a health plan in the 
98.12 	commercial insurance market with an out-of-network provider for a service provided in 
98.13 	Minnesota related to the diagnosis, monitoring, and treatment of a rare disease or condition, 
98.14 	across any of the health plan's networks, then the provider shall accept the established 
98.15 	contractual payment for that service as payment in full.
98.16 	(b) If a health plan company does not have an established contractual payment under a 
98.17 	health plan in the commercial insurance market with an out-of-network provider for a service 
98.18 	provided in Minnesota related to the diagnosis, monitoring, and treatment of a rare disease 
98.19 	or condition, across any of the health plan's networks, then the provider shall accept:
98.20 	(1) the provider's established rate for uninsured patients for that service as payment in 
98.21 	full; or
98.22 	(2) if the provider does not have an established rate for uninsured patients for that service, 
98.23 	then the average commercial insurance rate the health plan company has paid for that service 
98.24 	in this state over the past 12 months as payment in full.
98.25 	(d) If the payment amount is determined under paragraph (b), clause (2), and the health 
98.26 	plan company has not paid for that service in this state within the past 12 months, then the 
98.27 	health plan company shall pay the lesser of the following:
98.28 	(1) the average rate in the commercial insurance market the health plan company paid 
98.29 	for that service across all states over the past 12 months; or
98.30 	(2) the provider's standard charge.
98.31 	(e) This subdivision does not apply to managed care organizations or county-based 
98.32 	purchasing plans when the plan provides coverage to public health care program enrollees 
98.33 	under chapters 256B or 256L.
99.1 		Subd. 5.Payments to out-of-network providers when services are provided outside 
99.2 	of the state. (a) If a health plan company has an established contractual payment under a 
99.3 	health plan in the commercial insurance market with an out-of-network provider for a service 
99.4 	provided in another state related to the diagnosis, monitoring, and treatment of a rare disease 
99.5 	or condition, across any of the health plan's networks in the state where the service is 
99.6 	provided, then the health plan company shall pay the established contractual payment for 
99.7 	that service.
99.8 	(b) If a health plan company does not have an established contractual payment under a 
99.9 	health plan in the commercial insurance market with an out-of-network provider for a service 
99.10 	provided in another state related to the diagnosis, monitoring, and treatment of a rare disease 
99.11 	or condition, across any of the health plan's networks in the state where the service is 
99.12 	provided, then the health plan company shall pay:
99.13 	(1) the provider's established rate for uninsured patients for that service; or
99.14 	(2) if the provider does not have an established rate for uninsured patients for that service, 
99.15 	then the average commercial insurance rate the health plan company has paid for that service 
99.16 	in the state where the service is provided over the past 12 months.
99.17 	(c) If the payment amount is determined under paragraph (b), clause (2), and the health 
99.18 	plan company has not paid for that service in the state where the service is provided within 
99.19 	the past 12 months, then the health plan company shall pay the lesser of the following:
99.20 	(1) the average commercial insurance rate the health plan company has paid for that 
99.21 	service across all states over the last 12 months; or
99.22 	(2) the provider's standard charge.
99.23 	(d) This subdivision does not apply to managed care organizations or county-based 
99.24 	purchasing plans when the plan provides coverage to public health care program enrollees 
99.25 	under chapter 256B or 256L.
99.26 		Subd. 6.Exclusions. (a) This section does not apply to health care coverage offered by 
99.27 	the State Employee Group Insurance Program.
99.28 	(b) This section does not apply to medications obtained from a retail pharmacy as defined 
99.29 	in section 62W.02, subdivision 18.

99.30 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
99.31 	plans offered, issued, or renewed on or after that date.

100.1 	Sec. 32. [62Q.473] BIOMARKER TESTING.
100.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
100.3 	subdivision have the meanings given.
100.4 	(b) "Biomarker" means a characteristic that is objectively measured and evaluated as an 
100.5 	indicator of normal biological processes, pathogenic processes, or pharmacologic responses 
100.6 	to a specific therapeutic intervention, including but not limited to known gene-drug 
100.7 	interactions for medications being considered for use or already being administered. 
100.8 	Biomarkers include but are not limited to gene mutations, characteristics of genes, or protein 
100.9 	expression.
100.10 	(c) "Biomarker testing" means the analysis of an individual's tissue, blood, or other 
100.11 	biospecimen for the presence of a biomarker. Biomarker testing includes but is not limited 
100.12 	to single-analyst tests; multiplex panel tests; protein expression; and whole exome, whole 
100.13 	genome, and whole transcriptome sequencing.
100.14 	(d) "Clinical utility" means a test provides information that is used to formulate a 
100.15 	treatment or monitoring strategy that informs a patient's outcome and impacts the clinical 
100.16 	decision. The most appropriate test may include information that is actionable and some 
100.17 	information that cannot be immediately used to formulate a clinical decision.
100.18 	(e) "Consensus statement" means a statement that: (1) describes optimal clinical care 
100.19 	outcomes, based on the best available evidence, for a specific clinical circumstance; and 
100.20 	(2) is developed by an independent, multidisciplinary panel of experts that: (i) uses a rigorous 
100.21 	and validated development process that includes a transparent methodology and reporting 
100.22 	structure; and (ii) strictly adheres to the panel's conflict of interest policy.
100.23 	(f) "Nationally recognized clinical practice guideline" means an evidence-based clinical 
100.24 	practice guideline that: (1) establishes a standard of care informed by (i) a systematic review 
100.25 	of evidence, and (ii) an assessment of the risks and benefits of alternative care options; and 
100.26 	(2) is developed by an independent organization or medical professional society that: (i) 
100.27 	uses a transparent methodology and reporting structure; and (ii) adheres to a conflict of 
100.28 	interest policy. Nationally recognized clinical practice guideline includes recommendations 
100.29 	to optimize patient care.
100.30 		Subd. 2.Biomarker testing; coverage required. (a) A health plan must provide coverage 
100.31 	for biomarker testing to diagnose, treat, manage, and monitor illness or disease if the test 
100.32 	provides clinical utility. For purposes of this section, a test's clinical utility may be 
100.33 	demonstrated by medical and scientific evidence, including but not limited to:
101.1 	(1) nationally recognized clinical practice guidelines as defined in this section;
101.2 	(2) consensus statements as defined in this section;
101.3 	(3) labeled indications for a United States Food and Drug Administration (FDA) approved 
101.4 	or FDA-cleared test, indicated tests for an FDA-approved drug, or adherence to warnings 
101.5 	and precautions on FDA-approved drug labels; or
101.6 	(4) Centers for Medicare and Medicaid Services national coverage determinations or 
101.7 	Medicare Administrative Contractor local coverage determinations.
101.8 	(b) Coverage under this section must be provided in a manner that limits disruption of 
101.9 	care, including the need for multiple biopsies or biospecimen samples.
101.10 	(c) Nothing in this section prohibits a health plan company from requiring a prior 
101.11 	authorization or imposing other utilization controls when approving coverage for biomarker 
101.12 	testing.

101.13 	EFFECTIVE DATE. This section is effective January 1, 2025, and applies to health 
101.14 	plans offered, issued, or renewed on or after that date.

101.15 	Sec. 33. [62Q.522] COVERAGE OF CONTRACEPTIVE METHODS AND 
101.16 	SERVICES.
101.17 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
101.18 	(b) "Closely held for-profit entity" means an entity that:
101.19 	(1) is not a nonprofit entity;
101.20 	(2) has more than 50 percent of the value of its ownership interest owned directly or 
101.21 	indirectly by five or fewer owners; and
101.22 	(3) has no publicly traded ownership interest.
101.23 	For purposes of this paragraph:
101.24 	(i) ownership interests owned by a corporation, partnership, limited liability company, 
101.25 	estate, trust, or similar entity are considered owned by that entity's shareholders, partners, 
101.26 	members, or beneficiaries in proportion to their interest held in the corporation, partnership, 
101.27 	limited liability company, estate, trust, or similar entity;
101.28 	(ii) ownership interests owned by a nonprofit entity are considered owned by a single 
101.29 	owner;
102.1 	(iii) ownership interests owned by all individuals in a family are considered held by a 
102.2 	single owner. For purposes of this item, "family" means brothers and sisters, including 
102.3 	half-brothers and half-sisters, a spouse, ancestors, and lineal descendants; and
102.4 	(iv) if an individual or entity holds an option, warrant, or similar right to purchase an 
102.5 	ownership interest, the individual or entity is considered to be the owner of those ownership 
102.6 	interests.
102.7 	(c) "Contraceptive method" means a drug, device, or other product approved by the Food 
102.8 	and Drug Administration to prevent unintended pregnancy.
102.9 	(d) "Contraceptive service" means consultation, examination, procedures, and medical 
102.10 	services related to the prevention of unintended pregnancy, excluding vasectomies. This 
102.11 	includes but is not limited to voluntary sterilization procedures, patient education, counseling 
102.12 	on contraceptives, and follow-up services related to contraceptive methods or services, 
102.13 	management of side effects, counseling for continued adherence, and device insertion or 
102.14 	removal.
102.15 	(e) "Eligible organization" means an organization that opposes providing coverage for 
102.16 	some or all contraceptive methods or services on account of religious objections and that 
102.17 	is:
102.18 	(1) organized as a nonprofit entity and holds itself out to be religious; or
102.19 	(2) organized and operates as a closely held for-profit entity, and the organization's 
102.20 	owners or highest governing body has adopted, under the organization's applicable rules of 
102.21 	governance and consistent with state law, a resolution or similar action establishing that the 
102.22 	organization objects to covering some or all contraceptive methods or services on account 
102.23 	of the owners' sincerely held religious beliefs.
102.24 	(f) "Exempt organization" means an organization that is organized and operates as a 
102.25 	nonprofit entity and meets the requirements of section 6033(a)(3)(A)(i) or (iii) of the Internal 
102.26 	Revenue Code of 1986, as amended.
102.27 	(g) "Medical necessity" includes but is not limited to considerations such as severity of 
102.28 	side effects, difference in permanence and reversibility of a contraceptive method or service, 
102.29 	and ability to adhere to the appropriate use of the contraceptive method or service, as 
102.30 	determined by the attending provider.
102.31 	(h) "Therapeutic equivalent version" means a drug, device, or product that can be expected 
102.32 	to have the same clinical effect and safety profile when administered to a patient under the 
102.33 	conditions specified in the labeling, and that:
103.1 	(1) is approved as safe and effective;
103.2 	(2) is a pharmaceutical equivalent: (i) containing identical amounts of the same active 
103.3 	drug ingredient in the same dosage form and route of administration; and (ii) meeting 
103.4 	compendial or other applicable standards of strength, quality, purity, and identity;
103.5 	(3) is bioequivalent in that:
103.6 	(i) the drug, device, or product does not present a known or potential bioequivalence 
103.7 	problem and meets an acceptable in vitro standard; or
103.8 	(ii) if the drug, device, or product does present a known or potential bioequivalence 
103.9 	problem, it is shown to meet an appropriate bioequivalence standard;
103.10 	(4) is adequately labeled; and
103.11 	(5) is manufactured in compliance with current manufacturing practice regulations.
103.12 		Subd. 2.Required coverage; cost sharing prohibited. (a) A health plan must provide 
103.13 	coverage for contraceptive methods and services.
103.14 	(b) A health plan company must not impose cost-sharing requirements, including co-pays, 
103.15 	deductibles, or coinsurance, for contraceptive methods or services.
103.16 	(c) A health plan company must not impose any referral requirements, restrictions, or 
103.17 	delays for contraceptive methods or services.
103.18 	(d) A health plan must include at least one of each type of Food and Drug Administration 
103.19 	approved contraceptive method in its formulary. If more than one therapeutic equivalent 
103.20 	version of a contraceptive method is approved, a health plan must include at least one 
103.21 	therapeutic equivalent version in its formulary, but is not required to include all therapeutic 
103.22 	equivalent versions.
103.23 	(e) For each health plan, a health plan company must list the contraceptive methods and 
103.24 	services that are covered without cost-sharing in a manner that is easily accessible to 
103.25 	enrollees, health care providers, and representatives of health care providers. The list for 
103.26 	each health plan must be promptly updated to reflect changes to the coverage.
103.27 	(f) If an enrollee's attending provider recommends a particular contraceptive method or 
103.28 	service based on a determination of medical necessity for that enrollee, the health plan must 
103.29 	cover that contraceptive method or service without cost-sharing. The health plan company 
103.30 	issuing the health plan must defer to the attending provider's determination that the particular 
103.31 	contraceptive method or service is medically necessary for the enrollee.
104.1 		Subd. 3. Exemption. (a) An exempt organization is not required to cover contraceptives 
104.2 	or contraceptive services if the exempt organization has religious objections to the coverage. 
104.3 	An exempt organization that chooses to not provide coverage for some or all contraceptives 
104.4 	and contraceptive services must notify employees as part of the hiring process and to all 
104.5 	employees at least 30 days before:
104.6 	(1) an employee enrolls in the health plan; or
104.7 	(2) the effective date of the health plan, whichever occurs first.
104.8 	(b) If the exempt organization provides coverage for some contraceptive methods or 
104.9 	services, the notice required under paragraph (a) must provide a list of the contraceptive 
104.10 	methods or services the organization refuses to cover.
104.11 		Subd. 4.Accommodation for eligible organizations. (a) A health plan established or 
104.12 	maintained by an eligible organization complies with the requirements of subdivision 2 to 
104.13 	provide coverage of contraceptive methods and services, with respect to the contraceptive 
104.14 	methods or services identified in the notice under this paragraph, if the eligible organization 
104.15 	provides notice to any health plan company the eligible organization contracts with that it 
104.16 	is an eligible organization and that the eligible organization has a religious objection to 
104.17 	coverage for all or a subset of contraceptive methods or services.
104.18 	(b) The notice from an eligible organization to a health plan company under paragraph 
104.19 	(a) must include: (1) the name of the eligible organization; (2) a statement that it objects to 
104.20 	coverage for some or all of contraceptive methods or services, including a list of the 
104.21 	contraceptive methods or services the eligible organization objects to, if applicable; and (3) 
104.22 	the health plan name. The notice must be executed by a person authorized to provide notice 
104.23 	on behalf of the eligible organization.
104.24 	(c) An eligible organization must provide a copy of the notice under paragraph (a) to 
104.25 	prospective employees as part of the hiring process and to all employees at least 30 days 
104.26 	before:
104.27 	(1) an employee enrolls in the health plan; or
104.28 	(2) the effective date of the health plan, whichever occurs first.
104.29 	(d) A health plan company that receives a copy of the notice under paragraph (a) with 
104.30 	respect to a health plan established or maintained by an eligible organization must, for all 
104.31 	future enrollments in the health plan:
104.32 	(1) expressly exclude coverage for those contraceptive methods or services identified 
104.33 	in the notice under paragraph (a) from the health plan; and
105.1 	(2) provide separate payments for any contraceptive methods or services required to be 
105.2 	covered under subdivision 2 for enrollees as long as the enrollee remains enrolled in the 
105.3 	health plan.
105.4 	(e) The health plan company must not impose any cost-sharing requirements, including 
105.5 	co-pays, deductibles, or coinsurance, or directly or indirectly impose any premium, fee, or 
105.6 	other charge for contraceptive services or methods on the eligible organization, health plan, 
105.7 	or enrollee.
105.8 	(f) On January 1, 2024, and every year thereafter a health plan company must notify the 
105.9 	commissioner, in a manner determined by the commissioner, of the number of eligible 
105.10 	organizations granted an accommodation under this subdivision.

105.11 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to coverage 
105.12 	offered, sold, issued, or renewed on or after that date.

105.13 	Sec. 34. [62Q.523] COVERAGE FOR PRESCRIPTION CONTRACEPTIVES; 
105.14 	SUPPLY REQUIREMENTS.
105.15 		Subdivision 1.Scope of coverage. Except as otherwise provided in section 62Q.522, 
105.16 	subdivisions 3 and 4, all health plans that provide prescription coverage must comply with 
105.17 	the requirements of this section.
105.18 		Subd. 2.Definition. For purposes of this section, "prescription contraceptive" means 
105.19 	any drug or device that requires a prescription and is approved by the Food and Drug 
105.20 	Administration to prevent pregnancy. Prescription contraceptive does not include an 
105.21 	emergency contraceptive drug that prevents pregnancy when administered after sexual 
105.22 	contact.
105.23 		Subd. 3.Required coverage.  Health plan coverage for a prescription contraceptive must 
105.24 	provide a 12-month supply for any prescription contraceptive if a 12-month supply is 
105.25 	prescribed by the prescribing health care provider. The prescribing health care provider 
105.26 	must determine the appropriate duration to prescribe the prescription contraceptives for up 
105.27 	to 12 months.

105.28 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to coverage 
105.29 	offered, sold, issued, or renewed on or after that date.

106.1 	Sec. 35. [62Q.83] PRESCRIPTION DRUG BENEFIT TRANSPARENCY AND 
106.2 	MANAGEMENT.
106.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
106.4 	the meanings given.
106.5 	(b) "Drug" has the meaning given in section 151.01, subdivision 5.
106.6 	(c) "Enrollee contract term" means the 12-month term during which benefits associated 
106.7 	with health plan company products are in effect. For managed care plans and county-based 
106.8 	purchasing plans under section 256B.69 and chapter 256L, it means a single calendar year.
106.9 	(d) "Formulary" means a list of prescription drugs that has been developed by clinical 
106.10 	and pharmacy experts and that represents the health plan company's medically appropriate 
106.11 	and cost-effective prescription drugs approved for use.
106.12 	(e) "Health plan company" has the meaning given in section 62Q.01, subdivision 4, and 
106.13 	includes an entity that performs pharmacy benefits management for the health plan company. 
106.14 	For purposes of this definition, "pharmacy benefits management" means the administration 
106.15 	or management of prescription drug benefits provided by the health plan company for the 
106.16 	benefit of the plan's enrollees and may include but is not limited to procurement of 
106.17 	prescription drugs, clinical formulary development and management services, claims 
106.18 	processing, and rebate contracting and administration.
106.19 	(f) "Prescription" has the meaning given in section 151.01, subdivision 16a.
106.20 		Subd. 2.Prescription drug benefit disclosure. (a) A health plan company that provides 
106.21 	prescription drug benefit coverage and uses a formulary must make the plan's formulary 
106.22 	and related benefit information available by electronic means and, upon request, in writing, 
106.23 	at least 30 days prior to annual renewal dates.
106.24 	(b) Formularies must be organized and disclosed consistent with the most recent version 
106.25 	of the United States Pharmacopeia's Model Guidelines.
106.26 	(c) For each item or category of items on the formulary, the specific enrollee benefit 
106.27 	terms must be identified, including enrollee cost-sharing and expected out-of-pocket costs.
106.28 		Subd. 3.Formulary changes. (a) Once a formulary has been established, a health plan 
106.29 	company may, at any time during the enrollee's contract term:
106.30 	(1) expand its formulary by adding drugs to the formulary;
106.31 	(2) reduce co-payments or coinsurance; or
106.32 	(3) move a drug to a benefit category that reduces an enrollee's cost.
107.1 	(b) A health plan company may remove a brand name drug from the plan's formulary 
107.2 	or place a brand name drug in a benefit category that increases an enrollee's cost only upon 
107.3 	the addition to the formulary of a generic or multisource brand name drug rated as 
107.4 	therapeutically equivalent according to the FDA Orange Book or a biologic drug rated as 
107.5 	interchangeable according to the FDA Purple Book at a lower cost to the enrollee, or a 
107.6 	biosimilar as defined by United States Code, title 42, section 262(i)(2), and upon at least a 
107.7 	60-day notice to prescribers, pharmacists, and affected enrollees.
107.8 	(c) A health plan company may change utilization review requirements or move drugs 
107.9 	to a benefit category that increases an enrollee's cost during the enrollee's contract term 
107.10 	upon at least a 60-day notice to prescribers, pharmacists, and affected enrollees, provided 
107.11 	that these changes do not apply to enrollees who are currently taking the drugs affected by 
107.12 	these changes for the duration of the enrollee's contract term.
107.13 	(d) A health plan company may remove any drugs from the plan's formulary that have 
107.14 	been deemed unsafe by the Food and Drug Administration, that have been withdrawn by 
107.15 	either the Food and Drug Administration or the product manufacturer, or when an 
107.16 	independent source of research, clinical guidelines, or evidence-based standards has issued 
107.17 	drug-specific warnings or recommended changes in drug usage.
107.18 	(e) Health plan companies, managed care plans, and county-based purchasing plans 
107.19 	under section 256B.69 and chapter 256L may update their formulary or preferred drug list 
107.20 	quarterly, provided that these changes do not apply to enrollees who are currently taking 
107.21 	the drugs affected by these changes for the duration of the calendar year.
107.22 		Subd. 4.Exclusion. This section does not apply to health plans offered under the state 
107.23 	employee group insurance program.

107.24 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to health 
107.25 	plans offered, sold, issued, or renewed on or after that date.

107.26 	Sec. 36. Minnesota Statutes 2022, section 62U.04, subdivision 4, is amended to read:
107.27 		Subd. 4.Encounter data. (a) All health plan companies, dental organizations, and 
107.28 	third-party administrators shall submit encounter data on a monthly basis to a private entity 
107.29 	designated by the commissioner of health. The data shall be submitted in a form and manner 
107.30 	specified by the commissioner subject to the following requirements:
107.31 	(1) the data must be de-identified data as described under the Code of Federal Regulations, 
107.32 	title 45, section 164.514;
108.1 	(2) the data for each encounter must include an identifier for the patient's health care 
108.2 	home if the patient has selected a health care home, data on contractual value-based payments, 
108.3 	and, for claims incurred on or after January 1, 2019, data deemed necessary by the 
108.4 	commissioner to uniquely identify claims in the individual health insurance market; and
108.5 	(3) the data must include enrollee race and ethnicity, to the extent available, for claims 
108.6 	incurred on or after January 1, 2023; and
108.7 	(4) except for the identifier data described in clause clauses (2) and (3), the data must 
108.8 	not include information that is not included in a health care claim, dental care claim, or 
108.9 	equivalent encounter information transaction that is required under section 62J.536.
108.10 	(b) The commissioner or the commissioner's designee shall only use the data submitted 
108.11 	under paragraph (a) to carry out the commissioner's responsibilities in this section, including 
108.12 	supplying the data to providers so they can verify their results of the peer grouping process 
108.13 	consistent with the recommendations developed pursuant to subdivision 3c, paragraph (d), 
108.14 	and adopted by the commissioner and, if necessary, submit comments to the commissioner 
108.15 	or initiate an appeal.
108.16 	(c) Data on providers collected under this subdivision are private data on individuals or 
108.17 	nonpublic data, as defined in section 13.02. Notwithstanding the definition of summary data 
108.18 	in section 13.02, subdivision 19, summary data prepared under this subdivision may be 
108.19 	derived from nonpublic data. The commissioner or the commissioner's designee shall 
108.20 	establish procedures and safeguards to protect the integrity and confidentiality of any data 
108.21 	that it maintains.
108.22 	(d) The commissioner or the commissioner's designee shall not publish analyses or 
108.23 	reports that identify, or could potentially identify, individual patients.
108.24 	(e) The commissioner shall compile summary information on the data submitted under 
108.25 	this subdivision. The commissioner shall work with its vendors to assess the data submitted 
108.26 	in terms of compliance with the data submission requirements and the completeness of the 
108.27 	data submitted by comparing the data with summary information compiled by the 
108.28 	commissioner and with established and emerging data quality standards to ensure data 
108.29 	quality.

108.30 	Sec. 37. Minnesota Statutes 2022, section 62U.04, subdivision 5, is amended to read:
108.31 		Subd. 5.Pricing data. (a) All health plan companies, dental organizations, and third-party 
108.32 	administrators shall submit, on a monthly basis, data on their contracted prices with health 
108.33 	care providers to a private entity designated by the commissioner of health for the purposes 
109.1 	of performing the analyses required under this subdivision. Data on contracted prices 
109.2 	submitted under this paragraph must include data on supplemental contractual value-based 
109.3 	payments paid to health care providers. The data shall be submitted in the form and manner 
109.4 	specified by the commissioner of health.
109.5 	(b) The commissioner or the commissioner's designee shall only use the data submitted 
109.6 	under this subdivision to carry out the commissioner's responsibilities under this section, 
109.7 	including supplying the data to providers so they can verify their results of the peer grouping 
109.8 	process consistent with the recommendations developed pursuant to subdivision 3c, paragraph 
109.9 	(d), and adopted by the commissioner and, if necessary, submit comments to the 
109.10 	commissioner or initiate an appeal.
109.11 	(c) Data collected under this subdivision are private data on individuals or nonpublic 
109.12 	data as defined in section 13.02. Notwithstanding the definition of summary data in section 
109.13 	13.02, subdivision 19, summary data prepared under this section may be derived from 
109.14 	nonpublic data. The commissioner shall establish procedures and safeguards to protect the 
109.15 	integrity and confidentiality of any data that it maintains.

109.16 	Sec. 38. Minnesota Statutes 2022, section 62U.04, subdivision 5a, is amended to read:
109.17 		Subd. 5a.Self-insurers. (a) The commissioner shall not require a self-insurer governed 
109.18 	by the federal Employee Retirement Income Security Act of 1974 (ERISA) to comply with 
109.19 	this section.
109.20 	(b) A third-party administrator must annually notify the self-insurers whose health plans 
109.21 	are administered by the third-party administrator that the self-insurer may elect to have the 
109.22 	third-party administrator submit encounter data, data on contracted prices, and data on 
109.23 	nonclaims-based payments under subdivisions 4, 5, and 5b, from the self-insurer's health 
109.24 	plan for the upcoming plan year. This notice must be provided in a form and manner specified 
109.25 	by the commissioner. After receiving responses from self-insurers, a third-party administrator 
109.26 	must, in a form and manner specified by the commissioner, report to the commissioner:
109.27 	(1) the self-insurers that elected to have the third-party administrator submit encounter 
109.28 	data and data on contracted prices from the self-insurer's health plan for the upcoming plan 
109.29 	year;
109.30 	(2) the self-insurers that declined to have the third-party administrator submit encounter 
109.31 	data and data on contracted prices from the self-insurer's health plan for the upcoming plan 
109.32 	year; and
110.1 	(3) data deemed necessary by the commissioner to identify and track the status of 
110.2 	reporting of data from self-insured health plans.
110.3 	(c) Data collected under this subdivision are private data on individuals or nonpublic 
110.4 	data as defined in section 13.02. Notwithstanding the definition of summary data in section 
110.5 	13.02, subdivision 19, summary data prepared under this subdivision may be derived from 
110.6 	nonpublic data. The commissioner shall establish procedures and safeguards to protect the 
110.7 	integrity and confidentiality of any data maintained by the commissioner.

110.8 	Sec. 39. Minnesota Statutes 2022, section 62U.04, is amended by adding a subdivision to 
110.9 	read:
110.10 		Subd. 5b.Nonclaims-based payments. (a) Beginning January 1, 2025, all health plan 
110.11 	companies and third-party administrators shall submit to a private entity designated by the 
110.12 	commissioner of health all nonclaims-based payments made to health care providers. The 
110.13 	data shall be submitted in a form, manner, and frequency specified by the commissioner. 
110.14 	Nonclaims-based payments are payments to health care providers designed to pay for value 
110.15 	of health care services over volume of health care services and include alternative payment 
110.16 	models or incentives, payments for infrastructure expenditures or investments, and payments 
110.17 	for workforce expenditures or investments. Nonclaims-based payments submitted under 
110.18 	this subdivision must, to the extent possible, be attributed to a health care provider in the 
110.19 	same manner in which claims-based data are attributed to a health care provider and, where 
110.20 	appropriate, must be combined with data collected under subdivisions 4 to 5a in analyses 
110.21 	of health care spending.
110.22 	(b) Data collected under this subdivision are private data on individuals or nonpublic 
110.23 	data as defined in section 13.02. Notwithstanding the definition of summary data in section 
110.24 	13.02, subdivision 19, summary data prepared under this subdivision may be derived from 
110.25 	nonpublic data. The commissioner shall establish procedures and safeguards to protect the 
110.26 	integrity and confidentiality of any data maintained by the commissioner.
110.27 	(c) The commissioner shall consult with health plan companies, hospitals, and health 
110.28 	care providers in developing the data reported under this subdivision and standardized 
110.29 	reporting forms.

110.30 	Sec. 40. Minnesota Statutes 2022, section 62U.04, subdivision 11, is amended to read:
110.31 		Subd. 11.Restricted uses of the all-payer claims data. (a) Notwithstanding subdivision 
110.32 	4, paragraph (b), and subdivision 5, paragraph (b), the commissioner or the commissioner's 
111.1 	designee shall only use the data submitted under subdivisions 4 and 5 to 5b for the following 
111.2 	purposes:
111.3 	(1) to evaluate the performance of the health care home program as authorized under 
111.4 	section 62U.03, subdivision 7;
111.5 	(2) to study, in collaboration with the reducing avoidable readmissions effectively 
111.6 	(RARE) campaign, hospital readmission trends and rates;
111.7 	(3) to analyze variations in health care costs, quality, utilization, and illness burden based 
111.8 	on geographical areas or populations;
111.9 	(4) to evaluate the state innovation model (SIM) testing grant received by the Departments 
111.10 	of Health and Human Services, including the analysis of health care cost, quality, and 
111.11 	utilization baseline and trend information for targeted populations and communities; and
111.12 	(5) to compile one or more public use files of summary data or tables that must:
111.13 	(i) be available to the public for no or minimal cost by March 1, 2016, and available by 
111.14 	web-based electronic data download by June 30, 2019;
111.15 	(ii) not identify individual patients, payers, or providers;
111.16 	(iii) be updated by the commissioner, at least annually, with the most current data 
111.17 	available; and
111.18 	(iv) contain clear and conspicuous explanations of the characteristics of the data, such 
111.19 	as the dates of the data contained in the files, the absence of costs of care for uninsured 
111.20 	patients or nonresidents, and other disclaimers that provide appropriate context; and.
111.21 	(v) not lead to the collection of additional data elements beyond what is authorized under 
111.22 	this section as of June 30, 2015.
111.23 	(b) The commissioner may publish the results of the authorized uses identified in 
111.24 	paragraph (a) so long as the data released publicly do not contain information or descriptions 
111.25 	in which the identity of individual hospitals, clinics, or other providers may be discerned.
111.26 	(c) Nothing in this subdivision shall be construed to prohibit the commissioner from 
111.27 	using the data collected under subdivision 4 to complete the state-based risk adjustment 
111.28 	system assessment due to the legislature on October 1, 2015.
111.29 	(d) The commissioner or the commissioner's designee may use the data submitted under 
111.30 	subdivisions 4 and 5 for the purpose described in paragraph (a), clause (3), until July 1, 
111.31 	2023.
112.1 	(e) The commissioner shall consult with the all-payer claims database work group 
112.2 	established under subdivision 12 regarding the technical considerations necessary to create 
112.3 	the public use files of summary data described in paragraph (a), clause (5).

112.4 	Sec. 41. Minnesota Statutes 2022, section 62U.04, is amended by adding a subdivision to 
112.5 	read:
112.6 		Subd. 13.Expanded access to and use of the all-payer claims data. (a) The 
112.7 	commissioner may make any data submitted under this section, including data classified as 
112.8 	private or nonpublic, available to individuals and organizations engaged in efforts to research 
112.9 	or affect transformation in health care outcomes, access, quality, disparities, or spending, 
112.10 	provided use of the data serves a public benefit and is not employed to:
112.11 	(1) create an unfair market advantage for any participant in the health care market in the 
112.12 	state of Minnesota, health plan companies, payers, and providers;
112.13 	(2) reidentify or attempt to reidentify an individual in the data; and
112.14 	(3) publicly report details derived from the data regarding any contract between a health 
112.15 	plan company and a provider.
112.16 	(b) To implement the provisions in paragraph (a), the commissioner must:
112.17 	(1) establish detailed requirements for data access; a process for data users to apply for 
112.18 	access to and use of the data; legally enforceable data use agreements to which data users 
112.19 	must consent; a clear and robust oversight process for data access and use, including a data 
112.20 	management plan, that ensures compliance with state and federal data privacy laws; 
112.21 	agreements for state agencies and the University of Minnesota to ensure proper and efficient 
112.22 	use and security of data; and technical assistance for users of the data and stakeholders;
112.23 	(2) develop a fee schedule to support the cost of expanded use of the data, provided the 
112.24 	fees charged under the schedule do not create a barrier to access for those most affected by 
112.25 	disparities; and
112.26 	(3) create a research advisory group to advise the commissioner on applications for data 
112.27 	use under this subdivision, including an examination of the rigor of the research approach, 
112.28 	the technical capabilities of the proposed users, and the ability of the proposed user to 
112.29 	successfully safeguard the data.

113.1 	Sec. 42. Minnesota Statutes 2022, section 62U.10, subdivision 7, is amended to read:
113.2 		Subd. 7.Outcomes reporting; savings determination. (a) Beginning November 1, 
113.3 	2016, and Each November 1 thereafter, the commissioner of health shall determine the 
113.4 	actual total private and public health care and long-term care spending for Minnesota 
113.5 	residents related to each health indicator projected in subdivision 6 for the most recent 
113.6 	calendar year available. The commissioner shall determine the difference between the 
113.7 	projected and actual spending for each health indicator and for each year, and determine 
113.8 	the savings attributable to changes in these health indicators. The assumptions and research 
113.9 	methods used to calculate actual spending must be determined to be appropriate by an 
113.10 	independent actuarial consultant. If the actual spending is less than the projected spending, 
113.11 	the commissioner, in consultation with the commissioners of human services and management 
113.12 	and budget, shall use the proportion of spending for state-administered health care programs 
113.13 	to total private and public health care spending for each health indicator for the calendar 
113.14 	year two years before the current calendar year to determine the percentage of the calculated 
113.15 	aggregate savings amount accruing to state-administered health care programs.
113.16 	(b) The commissioner may use the data submitted under section 62U.04, subdivisions 
113.17 	4 and 5,to 5b, to complete the activities required under this section, but may only report 
113.18 	publicly on regional data aggregated to granularity of 25,000 lives or greater for this purpose.

113.19 	Sec. 43. Minnesota Statutes 2022, section 151.071, subdivision 2, is amended to read:
113.20 		Subd. 2.Grounds for disciplinary action. (a) The following conduct is prohibited and 
113.21 	is grounds for disciplinary action:
113.22 	(1) failure to demonstrate the qualifications or satisfy the requirements for a license or 
113.23 	registration contained in this chapter or the rules of the board. The burden of proof is on 
113.24 	the applicant to demonstrate such qualifications or satisfaction of such requirements;
113.25 	(2) obtaining a license by fraud or by misleading the board in any way during the 
113.26 	application process or obtaining a license by cheating, or attempting to subvert the licensing 
113.27 	examination process. Conduct that subverts or attempts to subvert the licensing examination 
113.28 	process includes, but is not limited to: (i) conduct that violates the security of the examination 
113.29 	materials, such as removing examination materials from the examination room or having 
113.30 	unauthorized possession of any portion of a future, current, or previously administered 
113.31 	licensing examination; (ii) conduct that violates the standard of test administration, such as 
113.32 	communicating with another examinee during administration of the examination, copying 
113.33 	another examinee's answers, permitting another examinee to copy one's answers, or 
114.1 	possessing unauthorized materials; or (iii) impersonating an examinee or permitting an 
114.2 	impersonator to take the examination on one's own behalf;
114.3 	(3) for a pharmacist, pharmacy technician, pharmacist intern, applicant for a pharmacist 
114.4 	or pharmacy license, or applicant for a pharmacy technician or pharmacist intern registration, 
114.5 	conviction of a felony reasonably related to the practice of pharmacy. Conviction as used 
114.6 	in this subdivision includes a conviction of an offense that if committed in this state would 
114.7 	be deemed a felony without regard to its designation elsewhere, or a criminal proceeding 
114.8 	where a finding or verdict of guilt is made or returned but the adjudication of guilt is either 
114.9 	withheld or not entered thereon. The board may delay the issuance of a new license or 
114.10 	registration if the applicant has been charged with a felony until the matter has been 
114.11 	adjudicated;
114.12 	(4) for a facility, other than a pharmacy, licensed or registered by the board, if an owner 
114.13 	or applicant is convicted of a felony reasonably related to the operation of the facility. The 
114.14 	board may delay the issuance of a new license or registration if the owner or applicant has 
114.15 	been charged with a felony until the matter has been adjudicated;
114.16 	(5) for a controlled substance researcher, conviction of a felony reasonably related to 
114.17 	controlled substances or to the practice of the researcher's profession. The board may delay 
114.18 	the issuance of a registration if the applicant has been charged with a felony until the matter 
114.19 	has been adjudicated;
114.20 	(6) disciplinary action taken by another state or by one of this state's health licensing 
114.21 	agencies:
114.22 	(i) revocation, suspension, restriction, limitation, or other disciplinary action against a 
114.23 	license or registration in another state or jurisdiction, failure to report to the board that 
114.24 	charges or allegations regarding the person's license or registration have been brought in 
114.25 	another state or jurisdiction, or having been refused a license or registration by any other 
114.26 	state or jurisdiction. The board may delay the issuance of a new license or registration if an 
114.27 	investigation or disciplinary action is pending in another state or jurisdiction until the 
114.28 	investigation or action has been dismissed or otherwise resolved; and
114.29 	(ii) revocation, suspension, restriction, limitation, or other disciplinary action against a 
114.30 	license or registration issued by another of this state's health licensing agencies, failure to 
114.31 	report to the board that charges regarding the person's license or registration have been 
114.32 	brought by another of this state's health licensing agencies, or having been refused a license 
114.33 	or registration by another of this state's health licensing agencies. The board may delay the 
114.34 	issuance of a new license or registration if a disciplinary action is pending before another 
115.1 	of this state's health licensing agencies until the action has been dismissed or otherwise 
115.2 	resolved;
115.3 	(7) for a pharmacist, pharmacy, pharmacy technician, or pharmacist intern, violation of 
115.4 	any order of the board, of any of the provisions of this chapter or any rules of the board or 
115.5 	violation of any federal, state, or local law or rule reasonably pertaining to the practice of 
115.6 	pharmacy;
115.7 	(8) for a facility, other than a pharmacy, licensed by the board, violations of any order 
115.8 	of the board, of any of the provisions of this chapter or the rules of the board or violation 
115.9 	of any federal, state, or local law relating to the operation of the facility;
115.10 	(9) engaging in any unethical conduct; conduct likely to deceive, defraud, or harm the 
115.11 	public, or demonstrating a willful or careless disregard for the health, welfare, or safety of 
115.12 	a patient; or pharmacy practice that is professionally incompetent, in that it may create 
115.13 	unnecessary danger to any patient's life, health, or safety, in any of which cases, proof of 
115.14 	actual injury need not be established;
115.15 	(10) aiding or abetting an unlicensed person in the practice of pharmacy, except that it 
115.16 	is not a violation of this clause for a pharmacist to supervise a properly registered pharmacy 
115.17 	technician or pharmacist intern if that person is performing duties allowed by this chapter 
115.18 	or the rules of the board;
115.19 	(11) for an individual licensed or registered by the board, adjudication as mentally ill 
115.20 	or developmentally disabled, or as a chemically dependent person, a person dangerous to 
115.21 	the public, a sexually dangerous person, or a person who has a sexual psychopathic 
115.22 	personality, by a court of competent jurisdiction, within or without this state. Such 
115.23 	adjudication shall automatically suspend a license for the duration thereof unless the board 
115.24 	orders otherwise;
115.25 	(12) for a pharmacist or pharmacy intern, engaging in unprofessional conduct as specified 
115.26 	in the board's rules. In the case of a pharmacy technician, engaging in conduct specified in 
115.27 	board rules that would be unprofessional if it were engaged in by a pharmacist or pharmacist 
115.28 	intern or performing duties specifically reserved for pharmacists under this chapter or the 
115.29 	rules of the board;
115.30 	(13) for a pharmacy, operation of the pharmacy without a pharmacist present and on 
115.31 	duty except as allowed by a variance approved by the board;
115.32 	(14) for a pharmacist, the inability to practice pharmacy with reasonable skill and safety 
115.33 	to patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type 
116.1 	of material or as a result of any mental or physical condition, including deterioration through 
116.2 	the aging process or loss of motor skills. In the case of registered pharmacy technicians, 
116.3 	pharmacist interns, or controlled substance researchers, the inability to carry out duties 
116.4 	allowed under this chapter or the rules of the board with reasonable skill and safety to 
116.5 	patients by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type 
116.6 	of material or as a result of any mental or physical condition, including deterioration through 
116.7 	the aging process or loss of motor skills;
116.8 	(15) for a pharmacist, pharmacy, pharmacist intern, pharmacy technician, medical gas 
116.9 	dispenser, or controlled substance researcher, revealing a privileged communication from 
116.10 	or relating to a patient except when otherwise required or permitted by law;
116.11 	(16) for a pharmacist or pharmacy, improper management of patient records, including 
116.12 	failure to maintain adequate patient records, to comply with a patient's request made pursuant 
116.13 	to sections 144.291 to 144.298, or to furnish a patient record or report required by law;
116.14 	(17) fee splitting, including without limitation:
116.15 	(i) paying, offering to pay, receiving, or agreeing to receive, a commission, rebate, 
116.16 	kickback, or other form of remuneration, directly or indirectly, for the referral of patients;
116.17 	(ii) referring a patient to any health care provider as defined in sections 144.291 to 
116.18 	144.298 in which the licensee or registrant has a financial or economic interest as defined 
116.19 	in section 144.6521, subdivision 3, unless the licensee or registrant has disclosed the 
116.20 	licensee's or registrant's financial or economic interest in accordance with section 144.6521; 
116.21 	and
116.22 	(iii) any arrangement through which a pharmacy, in which the prescribing practitioner 
116.23 	does not have a significant ownership interest, fills a prescription drug order and the 
116.24 	prescribing practitioner is involved in any manner, directly or indirectly, in setting the price 
116.25 	for the filled prescription that is charged to the patient, the patient's insurer or pharmacy 
116.26 	benefit manager, or other person paying for the prescription or, in the case of veterinary 
116.27 	patients, the price for the filled prescription that is charged to the client or other person 
116.28 	paying for the prescription, except that a veterinarian and a pharmacy may enter into such 
116.29 	an arrangement provided that the client or other person paying for the prescription is notified, 
116.30 	in writing and with each prescription dispensed, about the arrangement, unless such 
116.31 	arrangement involves pharmacy services provided for livestock, poultry, and agricultural 
116.32 	production systems, in which case client notification would not be required;
116.33 	(18) engaging in abusive or fraudulent billing practices, including violations of the 
116.34 	federal Medicare and Medicaid laws or state medical assistance laws or rules;
117.1 	(19) engaging in conduct with a patient that is sexual or may reasonably be interpreted 
117.2 	by the patient as sexual, or in any verbal behavior that is seductive or sexually demeaning 
117.3 	to a patient;
117.4 	(20) failure to make reports as required by section 151.072 or to cooperate with an 
117.5 	investigation of the board as required by section 151.074;
117.6 	(21) knowingly providing false or misleading information that is directly related to the 
117.7 	care of a patient unless done for an accepted therapeutic purpose such as the dispensing and 
117.8 	administration of a placebo;
117.9 	(22) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
117.10 	established by any of the following:
117.11 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
117.12 	of section 609.215, subdivision 1 or 2;
117.13 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
117.14 	issued under section 609.215, subdivision 4;
117.15 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
117.16 	subdivision 5; or
117.17 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
117.18 	The board must investigate any complaint of a violation of section 609.215, subdivision 1 
117.19 	or 2;
117.20 	(23) for a pharmacist, practice of pharmacy under a lapsed or nonrenewed license. For 
117.21 	a pharmacist intern, pharmacy technician, or controlled substance researcher, performing 
117.22 	duties permitted to such individuals by this chapter or the rules of the board under a lapsed 
117.23 	or nonrenewed registration. For a facility required to be licensed under this chapter, operation 
117.24 	of the facility under a lapsed or nonrenewed license or registration; and
117.25 	(24) for a pharmacist, pharmacist intern, or pharmacy technician, termination or discharge 
117.26 	from the health professionals services program for reasons other than the satisfactory 
117.27 	completion of the program.; and
117.28 	(25) for a drug manufacturer, failure to comply with section 62J.841.
117.29 	(b) The provisions in clause (25) shall not be severable from section 62Q.83. If clause 
117.30 	(25) or its application to any individual, entity, or circumstance is found to be void for any 
117.31 	reason, section 62Q.83 shall be void also.

118.1 	Sec. 44. REPORT ON TRANSPARENCY OF HEALTH CARE PAYMENTS.
 118.2 		Subdivision 1.Definitions. (a) The terms defined in this subdivision apply to this section.
118.3 	(b) "Commissioner" means the commissioner of health.
118.4 	(c) "Nonclaims-based payments" means payments to health care providers designed to 
118.5 	support and reward value of health care services over volume of health care services and 
118.6 	includes alternative payment models or incentives, payments for infrastructure expenditures 
118.7 	or investments, and payments for workforce expenditures or investments.
118.8 	(d) "Nonpublic data" has the meaning given in Minnesota Statutes, section 13.02, 
118.9 	subdivision 9.
118.10 	(e) "Primary care services" means integrated, accessible health care services provided 
118.11 	by clinicians who are accountable for addressing a large majority of personal health care 
118.12 	needs, developing a sustained partnership with patients, and practicing in the context of 
118.13 	family and community. Primary care services include but are not limited to preventive 
118.14 	services, office visits, administration of vaccines, annual physicals, pre-operative physicals, 
118.15 	assessments, care coordination, development of treatment plans, management of chronic 
118.16 	conditions, and diagnostic tests.
118.17 		Subd. 2.Report. (a) To provide the legislature with information needed to meet the 
118.18 	evolving health care needs of Minnesotans, the commissioner shall report to the legislature 
118.19 	by February 15, 2024, on the volume and distribution of health care spending across payment 
118.20 	models used by health plan companies and third-party administrators, with a particular focus 
118.21 	on value-based care models and primary care spending.
118.22 	(b) The report must include specific health plan and third-party administrator estimates 
118.23 	of health care spending for claims-based payments and nonclaims-based payments for the 
118.24 	most recent available year, reported separately for Minnesotans enrolled in state health care 
118.25 	programs, Medicare Advantage, and commercial health insurance. The report must also 
118.26 	include recommendations on changes needed to gather better data from health plan companies 
118.27 	and third-party administrators on the use of value-based payments that pay for value of 
118.28 	health care services provided over volume of services provided, promote the health of all 
118.29 	Minnesotans, reduce health disparities, and support the provision of primary care services 
118.30 	and preventive services.
118.31 	(c) In preparing the report, the commissioner shall:
119.1 	(1) describe the form, manner, and timeline for submission of data by health plan 
119.2 	companies and third-party administrators to produce estimates as specified in paragraph 
119.3 	(b);
119.4 	(2) collect summary data that permits the computation of:
119.5 	(i) the percentage of total payments that are nonclaims-based payments; and
119.6 	(ii) the percentage of payments in item (i) that are for primary care services;
119.7 	(3) where data was not directly derived, specify the methods used to estimate data 
119.8 	elements;
119.9 	(4) notwithstanding Minnesota Statutes, section 62U.04, subdivision 11, conduct analyses 
119.10 	of the magnitude of primary care payments using data collected by the commissioner under 
119.11 	Minnesota Statutes, section 62U.04; and
119.12 	(5) conduct interviews with health plan companies and third-party administrators to 
119.13 	better understand the types of nonclaims-based payments and models in use, the purposes 
119.14 	or goals of each, the criteria for health care providers to qualify for these payments, and the 
119.15 	timing and structure of health plan companies or third-party administrators making these 
119.16 	payments to health care provider organizations.
119.17 	(d) Health plan companies and third-party administrators must comply with data requests 
119.18 	from the commissioner under this section within 60 days after receiving the request.
119.19 	(e) Data collected under this section is nonpublic data. Notwithstanding the definition 
119.20 	of summary data in Minnesota Statutes, section 13.02, subdivision 19, summary data prepared 
119.21 	under this section may be derived from nonpublic data. The commissioner shall establish 
119.22 	procedures and safeguards to protect the integrity and confidentiality of any data maintained 
119.23 	by the commissioner.

119.24 	Sec. 45. COMMISSIONER OF COMMERCE.
 119.25 	The commissioner of commerce shall consult with health plan companies, pharmacies, 
119.26 	and pharmacy benefit managers to develop guidance to implement coverage for the pharmacy 
119.27 	services required by Minnesota Statutes, sections 62A.15, subdivisions 3d and 4; and 
119.28 	62D.1071.

120.1 	ARTICLE 3
120.2 	KEEPING NURSES AT THE BEDSIDE

120.3 	Section 1. Minnesota Statutes 2022, section 144.1501, subdivision 1, is amended to read:
120.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
120.5 	apply.
120.6 	(b) "Advanced dental therapist" means an individual who is licensed as a dental therapist 
120.7 	under section 150A.06, and who is certified as an advanced dental therapist under section 
120.8 	150A.106.
120.9 	(c) "Alcohol and drug counselor" means an individual who is licensed as an alcohol and 
120.10 	drug counselor under chapter 148F.
120.11 	(d) "Dental therapist" means an individual who is licensed as a dental therapist under 
120.12 	section 150A.06.
120.13 	(e) "Dentist" means an individual who is licensed to practice dentistry.
120.14 	(f) "Designated rural area" means a statutory and home rule charter city or township that 
120.15 	is outside the seven-county metropolitan area as defined in section 473.121, subdivision 2, 
120.16 	excluding the cities of Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
120.17 	(g) "Emergency circumstances" means those conditions that make it impossible for the 
120.18 	participant to fulfill the service commitment, including death, total and permanent disability, 
120.19 	or temporary disability lasting more than two years.
120.20 	(h) "Hospital nurse" means an individual who is licensed as a registered nurse and who 
120.21 	is providing direct patient care in a nonprofit hospital setting.
120.22 	(i) "Mental health professional" means an individual providing clinical services in the 
120.23 	treatment of mental illness who is qualified in at least one of the ways specified in section 
120.24 	245.462, subdivision 18.
120.25 	(i) (j) "Medical resident" means an individual participating in a medical residency in 
120.26 	family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
120.27 	(j) (k) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse 
120.28 	anesthetist, advanced clinical nurse specialist, or physician assistant.
120.29 	(k) (l) "Nurse" means an individual who has completed training and received all licensing 
120.30 	or certification necessary to perform duties as a licensed practical nurse or registered nurse.
121.1 	(l) (m) "Nurse-midwife" means a registered nurse who has graduated from a program 
121.2 	of study designed to prepare registered nurses for advanced practice as nurse-midwives.
121.3 	(m) (n) "Nurse practitioner" means a registered nurse who has graduated from a program 
121.4 	of study designed to prepare registered nurses for advanced practice as nurse practitioners.
121.5 	(n) (o) "Pharmacist" means an individual with a valid license issued under chapter 151.
121.6 	(o) (p) "Physician" means an individual who is licensed to practice medicine in the areas 
121.7 	of family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.
121.8 	(p) (q) "Physician assistant" means a person licensed under chapter 147A.
121.9 	(r) "PSLF program" means the federal Public Service Loan Forgiveness program  
121.10 	established under Code of Federal Regulations, title 34, section 685.219.
121.11 	(q) (s) "Public health nurse" means a registered nurse licensed in Minnesota who has 
121.12 	obtained a registration certificate as a public health nurse from the Board of Nursing in 
121.13 	accordance with Minnesota Rules, chapter 6316.
121.14 	(r) (t) "Qualified educational loan" means a government, commercial, or foundation loan 
121.15 	for actual costs paid for tuition, reasonable education expenses, and reasonable living 
121.16 	expenses related to the graduate or undergraduate education of a health care professional.
121.17 	(s) (u) "Underserved urban community" means a Minnesota urban area or population 
121.18 	included in the list of designated primary medical care health professional shortage areas 
121.19 	(HPSAs), medically underserved areas (MUAs), or medically underserved populations 
121.20 	(MUPs) maintained and updated by the United States Department of Health and Human 
121.21 	Services.

121.22 	Sec. 2. Minnesota Statutes 2022, section 144.1501, subdivision 2, is amended to read:
121.23 		Subd. 2.Creation of account. (a) A health professional education loan forgiveness 
121.24 	program account is established. The commissioner of health shall use money from the 
121.25 	account to establish a loan forgiveness program:
121.26 	(1) for medical residents, mental health professionals, and alcohol and drug counselors 
121.27 	agreeing to practice in designated rural areas or underserved urban communities or 
121.28 	specializing in the area of pediatric psychiatry;
121.29 	(2) for midlevel practitioners agreeing to practice in designated rural areas or to teach 
121.30 	at least 12 credit hours, or 720 hours per year in the nursing field in a postsecondary program 
121.31 	at the undergraduate level or the equivalent at the graduate level;
122.1 	(3) for nurses who agree to practice in a Minnesota nursing home; an intermediate care 
122.2 	facility for persons with developmental disability; a hospital if the hospital owns and operates 
122.3 	a Minnesota nursing home and a minimum of 50 percent of the hours worked by the nurse 
122.4 	is in the nursing home; a housing with services establishment as defined in section 144D.01, 
122.5 	subdivision 4; or for a home care provider as defined in section 144A.43, subdivision 4; or 
122.6 	agree to teach at least 12 credit hours, or 720 hours per year in the nursing field in a 
122.7 	postsecondary program at the undergraduate level or the equivalent at the graduate level;
122.8 	(4) for other health care technicians agreeing to teach at least 12 credit hours, or 720 
122.9 	hours per year in their designated field in a postsecondary program at the undergraduate 
122.10 	level or the equivalent at the graduate level. The commissioner, in consultation with the 
122.11 	Healthcare Education-Industry Partnership, shall determine the health care fields where the 
122.12 	need is the greatest, including, but not limited to, respiratory therapy, clinical laboratory 
122.13 	technology, radiologic technology, and surgical technology;
122.14 	(5) for pharmacists, advanced dental therapists, dental therapists, and public health nurses 
122.15 	who agree to practice in designated rural areas; and
122.16 	(6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient 
122.17 	encounters to state public program enrollees or patients receiving sliding fee schedule 
122.18 	discounts through a formal sliding fee schedule meeting the standards established by the 
122.19 	United States Department of Health and Human Services under Code of Federal Regulations, 
122.20 	title 42, section 51, chapter 303; and
122.21 	(7) for nurses who are enrolled in the PSLF program, employed as a hospital nurse by 
122.22 	a nonprofit hospital that is an eligible employer under the PSLF program, and providing 
122.23 	direct care to patients at the nonprofit hospital.
122.24 	(b) Appropriations made to the account do not cancel and are available until expended, 
122.25 	except that at the end of each biennium, any remaining balance in the account that is not 
122.26 	committed by contract and not needed to fulfill existing commitments shall cancel to the 
122.27 	fund.

122.28 	Sec. 3. Minnesota Statutes 2022, section 144.1501, subdivision 3, is amended to read:
122.29 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program, an 
122.30 	individual must:
122.31 	(1) be a medical or dental resident; a licensed pharmacist; or be enrolled in a training or 
122.32 	education program to become a dentist, dental therapist, advanced dental therapist, mental 
122.33 	health professional, alcohol and drug counselor, pharmacist, public health nurse, midlevel 
123.1 	practitioner, registered nurse, or a licensed practical nurse. The commissioner may also 
123.2 	consider applications submitted by graduates in eligible professions who are licensed and 
123.3 	in practice; and
123.4 	(2) submit an application to the commissioner of health. Nurses applying under 
123.5 	subdivision 2, paragraph (a), clause (7), must also include proof that the applicant is enrolled 
123.6 	in the PSLF program and confirmation that the applicant is employed as a hospital nurse.
123.7 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
123.8 	three-year full-time service obligation according to subdivision 2, which shall begin no later 
123.9 	than March 31 following completion of required training, with the exception of:
123.10 	(1) a nurse, who must agree to serve a minimum two-year full-time service obligation 
123.11 	according to subdivision 2, which shall begin no later than March 31 following completion 
123.12 	of required training;
123.13 	(2) a nurse selected under subdivision 2, paragraph (a), clause (7), must agree to continue 
123.14 	as a hospital nurse for the repayment period of the participant's eligible loan under the PSLF 
123.15 	program; and
123.16 	(3) a nurse who agrees to teach according to subdivision 2, paragraph (a), clause (3), 
123.17 	must sign a contract to agree to teach for a minimum of two years.

123.18 	Sec. 4. Minnesota Statutes 2022, section 144.1501, subdivision 4, is amended to read:
123.19 		Subd. 4.Loan forgiveness. (a) The commissioner of health may select applicants each 
123.20 	year for participation in the loan forgiveness program, within the limits of available funding. 
123.21 	In considering applications, the commissioner shall give preference to applicants who 
123.22 	document diverse cultural competencies. The commissioner shall distribute available funds 
123.23 	for loan forgiveness proportionally among the eligible professions according to the vacancy 
123.24 	rate for each profession in the required geographic area, facility type, teaching area, patient 
123.25 	group, or specialty type specified in subdivision 2, except for hospital nurses. The 
123.26 	commissioner shall allocate funds for physician loan forgiveness so that 75 percent of the 
123.27 	funds available are used for rural physician loan forgiveness and 25 percent of the funds 
123.28 	available are used for underserved urban communities and pediatric psychiatry loan 
123.29 	forgiveness. If the commissioner does not receive enough qualified applicants each year to 
123.30 	use the entire allocation of funds for any eligible profession, the remaining funds may be 
123.31 	allocated proportionally among the other eligible professions according to the vacancy rate 
123.32 	for each profession in the required geographic area, patient group, or facility type specified 
123.33 	in subdivision 2. Applicants are responsible for securing their own qualified educational 
124.1 	loans. The commissioner shall select participants based on their suitability for practice 
124.2 	serving the required geographic area or facility type specified in subdivision 2, as indicated 
124.3 	by experience or training. The commissioner shall give preference to applicants closest to 
124.4 	completing their training. Except as specified in paragraphs (b) and (c), for each year that 
124.5 	a participant meets the service obligation required under subdivision 3, up to a maximum 
124.6 	of four years, the commissioner shall make annual disbursements directly to the participant 
124.7 	equivalent to 15 percent of the average educational debt for indebted graduates in their 
124.8 	profession in the year closest to the applicant's selection for which information is available, 
124.9 	not to exceed the balance of the participant's qualifying educational loans. Before receiving 
124.10 	loan repayment disbursements and as requested, the participant must complete and return 
124.11 	to the commissioner a confirmation of practice form provided by the commissioner verifying 
124.12 	that the participant is practicing as required under subdivisions 2 and 3. The participant 
124.13 	must provide the commissioner with verification that the full amount of loan repayment 
124.14 	disbursement received by the participant has been applied toward the designated loans. 
124.15 	After each disbursement, verification must be received by the commissioner and approved 
124.16 	before the next loan repayment disbursement is made. Participants who move their practice 
124.17 	remain eligible for loan repayment as long as they practice as required under subdivision 
124.18 	2.
124.19 	(b) For hospital nurses, the commissioner of health shall select applicants each year for 
124.20 	participation in the hospital nursing education loan forgiveness program, within limits of 
124.21 	available funding for hospital nurses. Applicants are responsible for applying for and 
124.22 	maintaining eligibility for the PSLF program. For each year that a participant meets the 
124.23 	eligibility requirements described in subdivision 3, the commissioner shall make an annual 
124.24 	disbursement directly to the participant in an amount equal to the minimum loan payments 
124.25 	required to be paid by the participant under the participant's repayment plan established for 
124.26 	the participant under the PSLF program for the previous loan year. Before receiving the 
124.27 	annual loan repayment disbursement, the participant must complete and return to the 
124.28 	commissioner a confirmation of practice form provided by the commissioner, verifying that 
124.29 	the participant continues to meet the eligibility requirements under subdivision 3. The 
124.30 	participant must provide the commissioner with verification that the full amount of loan 
124.31 	repayment disbursement received by the participant has been applied toward the loan for 
124.32 	which forgiveness is sought under the PSLF program.
124.33 	(c) For each year that a participant who is a nurse and who has agreed to teach according 
124.34 	to subdivision 2 meets the teaching obligation required in subdivision 3, the commissioner 
124.35 	shall make annual disbursements directly to the participant equivalent to 15 percent of the 
125.1 	average annual educational debt for indebted graduates in the nursing profession in the year 
125.2 	closest to the participant's selection for which information is available, not to exceed the 
125.3 	balance of the participant's qualifying educational loans.

125.4 	Sec. 5. Minnesota Statutes 2022, section 144.1501, subdivision 5, is amended to read:
125.5 		Subd. 5.Penalty for nonfulfillment. If a participant does not fulfill the required 
125.6 	minimum commitment of service according to subdivision 3, or, for hospital nurses, the 
125.7 	secretary of education determines that the participant does not meet eligibility requirements 
125.8 	for the PSLF, the commissioner of health shall collect from the participant the total amount 
125.9 	paid to the participant under the loan forgiveness program plus interest at a rate established 
125.10 	according to section 270C.40. The commissioner shall deposit the money collected in the 
125.11 	health care access fund to be credited to the health professional education loan forgiveness 
125.12 	program account established in subdivision 2. The commissioner shall allow waivers of all 
125.13 	or part of the money owed the commissioner as a result of a nonfulfillment penalty if 
125.14 	emergency circumstances prevented fulfillment of the minimum service commitment or, 
125.15 	for hospital nurses, if the PSLF program is discontinued before the participant's service 
125.16 	commitment is fulfilled.

125.17 	Sec. 6. Minnesota Statutes 2022, section 144.566, is amended to read:
125.18 	144.566 VIOLENCE AGAINST HEALTH CARE WORKERS.
125.19 		Subdivision 1.Definitions. (a) The following definitions apply to this section and have 
125.20 	the meanings given.
125.21 	(b) "Act of violence" means an act by a patient or visitor against a health care worker 
125.22 	that includes kicking, scratching, urinating, sexually harassing, or any act defined in sections 
125.23 	609.221 to 609.2241.
125.24 	(c) "Commissioner" means the commissioner of health.
125.25 	(d) "Health care worker" means any person, whether licensed or unlicensed, employed 
125.26 	by, volunteering in, or under contract with a hospital, who has direct contact with a patient 
125.27 	of the hospital for purposes of either medical care or emergency response to situations 
125.28 	potentially involving violence.
125.29 	(e) "Hospital" means any facility licensed as a hospital under section 144.55.
125.30 	(f) "Incident response" means the actions taken by hospital administration and health 
125.31 	care workers during and following an act of violence.
126.1 	(g) "Interfere" means to prevent, impede, discourage, or delay a health care worker's 
126.2 	ability to report acts of violence, including by retaliating or threatening to retaliate against 
126.3 	a health care worker.
126.4 	(h) "Preparedness" means the actions taken by hospital administration and health care 
126.5 	workers to prevent a single act of violence or acts of violence generally.
126.6 	(i) "Retaliate" means to discharge, discipline, threaten, otherwise discriminate against, 
126.7 	or penalize a health care worker regarding the health care worker's compensation, terms, 
126.8 	conditions, location, or privileges of employment.
126.9 	(j) "Workplace violence hazards" means locations and situations where violent incidents 
126.10 	are more likely to occur, including, as applicable, but not limited to locations isolated from 
126.11 	other health care workers; health care workers working alone; health care workers working 
126.12 	in remote locations; health care workers working late night or early morning hours; locations 
126.13 	where an assailant could prevent entry of responders or other health care workers into a 
126.14 	work area; locations with poor illumination; locations with poor visibility; lack of effective 
126.15 	escape routes; obstacles and impediments to accessing alarm systems; locations within the 
126.16 	facility where alarm systems are not operational; entryways where unauthorized entrance 
126.17 	may occur, such as doors designated for staff entrance or emergency exits; presence, in the 
126.18 	areas where patient contact activities are performed, of furnishings or objects that could be 
126.19 	used as weapons; and locations where high-value items, currency, or pharmaceuticals are 
126.20 	stored.
126.21 		Subd. 2.Hospital duties Action plans and action plan reviews required. (a) All 
126.22 	hospitals must design and implement preparedness and incident response action plans to 
126.23 	acts of violence by January 15, 2016, and review and update the plan at least annually 
126.24 	thereafter. The plan must be in writing; specific to the workplace violence hazards and 
126.25 	corrective measures for the units, services, or operations of the hospital; and available to 
126.26 	health care workers at all times.
126.27 		Subd. 3.Action plan committees. (b) A hospital shall designate a committee of 
126.28 	representatives of health care workers employed by the hospital, including nonmanagerial 
126.29 	health care workers, nonclinical staff, administrators, patient safety experts, and other 
126.30 	appropriate personnel to develop preparedness and incident response action plans to acts 
126.31 	of violence. The hospital shall, in consultation with the designated committee, implement 
126.32 	the plans under paragraph (a) subdivision 2. Nothing in this paragraph subdivision shall 
126.33 	require the establishment of a separate committee solely for the purpose required by this 
126.34 	subdivision.
127.1 		Subd. 4.Required elements of action plans; generally. The preparedness and incident 
127.2 	response action plans to acts of violence must include:
127.3 	(1) effective procedures to obtain the active involvement of health care workers and 
127.4 	their representatives in developing, implementing, and reviewing the plan, including their 
127.5 	participation in identifying, evaluating, and correcting workplace violence hazards, designing 
127.6 	and implementing training, and reporting and investigating incidents of workplace violence;
127.7 	(2) names or job titles of the persons responsible for implementing the plan; and
127.8 	(3) effective procedures to ensure that supervisory and nonsupervisory health care 
127.9 	workers comply with the plan.
127.10 		Subd. 5.Required elements of action plans; evaluation of risk factors. (a) The 
127.11 	preparedness and incident response action plans to acts of violence must include assessment 
127.12 	procedures to identify and evaluate workplace violence hazards for each facility, unit, 
127.13 	service, or operation, including community-based risk factors and areas surrounding the 
127.14 	facility, such as employee parking areas and other outdoor areas. Procedures shall specify 
127.15 	the frequency that environmental assessments take place.
127.16 	(b) The preparedness and incident response action plans to acts of violence must include 
127.17 	assessment tools, environmental checklists, or other effective means to identify workplace 
127.18 	violence hazards.
127.19 		Subd. 6.Required elements of action plans; review of workplace violence 
127.20 	incidents. The preparedness and incident response action plans to acts of violence must 
127.21 	include procedures for reviewing all workplace violence incidents that occurred in the 
127.22 	facility, unit, service, or operation within the previous year, whether or not an injury occurred.
127.23 		Subd. 7.Required elements of action plans; reporting workplace violence. The 
127.24 	preparedness and incident response action plans to acts of violence must include:
127.25 	(1) effective procedures for health care workers to document information regarding 
127.26 	conditions that may increase the potential for workplace violence incidents and communicate 
127.27 	that information without fear of reprisal to other health care workers, shifts, or units;
127.28 	(2) effective procedures for health care workers to report a violent incident, threat, or 
127.29 	other workplace violence concern without fear of reprisal;
127.30 	(3) effective procedures for the hospital to accept and respond to reports of workplace 
127.31 	violence and to prohibit retaliation against a health care worker who makes such a report;
128.1 	(4) a policy statement stating the hospital will not prevent a health care worker from 
128.2 	reporting workplace violence or take punitive or retaliatory action against a health care 
128.3 	worker for doing so;
128.4 	(5) effective procedures for investigating health care worker concerns regarding workplace 
128.5 	violence or workplace violence hazards;
128.6 	(6) procedures for informing health care workers of the results of the investigation arising 
128.7 	from a report of workplace violence or from a concern about a workplace violence hazard 
128.8 	and of any corrective actions taken;
128.9 	(7) effective procedures for obtaining assistance from the appropriate law enforcement 
128.10 	agency or social service agency during all work shifts. The procedure may establish a central 
128.11 	coordination procedure; and
128.12 	(8) a policy statement stating the hospital will not prevent a health care worker from 
128.13 	seeking assistance and intervention from local emergency services or law enforcement when 
128.14 	a violent incident occurs or take punitive or retaliatory action against a health care worker 
128.15 	for doing so.
128.16 		Subd. 8.Required elements of action plans; coordination with other employers. The 
128.17 	preparedness and incident response action plans to acts of violence must include methods 
128.18 	the hospital will use to coordinate implementation of the plan with other employers whose 
128.19 	employees work in the same health care facility, unit, service, or operation and to ensure 
128.20 	that those employers and their employees understand their respective roles as provided in 
128.21 	the plan. These methods must ensure that all employees working in the facility, unit, service, 
128.22 	or operation are provided the training required by subdivision 11 and that workplace violence 
128.23 	incidents involving any employee are reported, investigated, and recorded.
128.24 		Subd. 9.Required elements of action plans; white supremacist affiliation and support 
128.25 	prohibited. (a) The preparedness and incident response action plans to acts of violence 
128.26 	must include a policy statement stating that security personnel employed by the hospital or 
128.27 	assigned to the hospital by a contractor are prohibited from affiliating with, supporting, or 
128.28 	advocating for white supremacist groups, causes, or ideologies or participating in, or actively 
128.29 	promoting, an international or domestic extremist group that the Federal Bureau of 
128.30 	Investigation has determined supports or encourages illegal, violent conduct.
128.31 	(b) For purposes of this subdivision, white supremacist groups, causes, or ideologies 
128.32 	include organizations and associations and ideologies that promote white supremacy and 
128.33 	the idea that white people are superior to Black, Indigenous, and people of color (BIPOC); 
128.34 	promote religious and racial bigotry; seek to exacerbate racial and ethnic tensions between 
129.1 	BIPOC and non-BIPOC; or engage in patently hateful and inflammatory speech, intimidation, 
129.2 	and violence against BIPOC as means of promoting white supremacy.
129.3 		Subd. 10.Required elements of action plans; training. (a) The preparedness and 
129.4 	incident response action plans to acts of violence must include:
129.5 	(1) procedures for developing and providing the training required in subdivision 11 that 
129.6 	permits health care workers and their representatives to participate in developing the training; 
129.7 	and
129.8 	(2) a requirement for cultural competency training and equity, diversity, and inclusion 
129.9 	training.
129.10 	(b) The preparedness and incident response action plans to acts of violence must include 
129.11 	procedures to communicate with health care workers regarding workplace violence matters, 
129.12 	including:
129.13 	(1) how health care workers will document and communicate to other health care workers 
129.14 	and between shifts and units information regarding conditions that may increase the potential 
129.15 	for workplace violence incidents;
129.16 	(2) how health care workers can report a violent incident, threat, or other workplace 
129.17 	violence concern;
129.18 	(3) how health care workers can communicate workplace violence concerns without 
129.19 	fear of reprisal; and
129.20 	(4) how health care worker concerns will be investigated, and how health care workers 
129.21 	will be informed of the results of the investigation and any corrective actions to be taken.
129.22 		Subd. 11.Training required. (c) A hospital shall must provide training to all health 
129.23 	care workers employed or contracted with the hospital on safety during acts of violence. 
129.24 	Each health care worker must receive safety training annually and upon hire during the 
129.25 	health care worker's orientation and before the health care worker completes a shift 
129.26 	independently, and annually thereafter. Training must, at a minimum, include:
129.27 	(1) safety guidelines for response to and de-escalation of an act of violence;
129.28 	(2) ways to identify potentially violent or abusive situations, including aggression and 
129.29 	violence predicting factors; and
129.30 	(3) the hospital's incident response reaction plan and violence prevention plan
129.31 	preparedness and incident response action plans for acts of violence, including how the 
129.32 	health care worker may report concerns about workplace violence within each hospital's 
130.1 	reporting structure without fear of reprisal, how the hospital will address workplace violence 
130.2 	incidents, and how the health care worker can participate in reviewing and revising the plan; 
130.3 	and
130.4 	(4) any resources available to health care workers for coping with incidents of violence, 
130.5 	including but not limited to critical incident stress debriefing or employee assistance 
130.6 	programs.
130.7 		Subd. 12.Annual review and update of action plans. (d) (a) As part of its annual 
130.8 	review of preparedness and incident response action plans required under paragraph (a)
130.9 	subdivision 2, the hospital must review with the designated committee:
130.10 	(1) the effectiveness of its preparedness and incident response action plans, including 
130.11 	the sufficiency of security systems, alarms, emergency responses, and security personnel 
130.12 	availability;
130.13 	(2) security risks associated with specific units, areas of the facility with uncontrolled 
130.14 	access, late night shifts, early morning shifts, and areas surrounding the facility such as 
130.15 	employee parking areas and other outdoor areas;
130.16 	(3) the most recent gap analysis as provided by the commissioner; and
130.17 	(3) (4) the number of acts of violence that occurred in the hospital during the previous 
130.18 	year, including injuries sustained, if any, and the unit in which the incident occurred.;
130.19 	(5) evaluations of staffing, including staffing patterns and patient classification systems 
130.20 	that contribute to, or are insufficient to address, the risk of violence; and
130.21 	(6) any reports of discrimination or abuse that arise from security resources, including 
130.22 	from the behavior of security personnel.
130.23 	(b) As part of the annual update of preparedness and incident response action plans 
130.24 	required under subdivision 2, the hospital must incorporate corrective actions into the action 
130.25 	plan to address workplace violence hazards identified during the annual action plan review, 
130.26 	reports of workplace violence, reports of workplace violence hazards, and reports of 
130.27 	discrimination or abuse that arise from the security resources.
130.28 		Subd. 13.Action plan updates. Following the annual review of the action plan, a hospital 
130.29 	must update the action plans to reflect the corrective actions the hospital will implement to 
130.30 	mitigate the hazards and vulnerabilities identified during the annual review.
130.31 		Subd. 14.Requests for additional staffing. A hospital shall create and implement a 
130.32 	procedure for a health care worker to officially request of hospital supervisors or 
131.1 	administration that additional staffing be provided. The hospital must document all requests 
131.2 	for additional staffing made because of a health care worker's concern over a risk of an act 
131.3 	of violence. If the request for additional staffing to reduce the risk of violence is denied, 
131.4 	the hospital must provide the health care worker who made the request a written reason for 
131.5 	the denial and must maintain documentation of that communication with the documentation 
131.6 	of requests for additional staffing. A hospital must make documentation regarding staffing 
131.7 	requests available to the commissioner for inspection at the commissioner's request. The 
131.8 	commissioner may use documentation regarding staffing requests to inform the 
131.9 	commissioner's determination on whether the hospital is providing adequate staffing and 
131.10 	security to address acts of violence, and may use documentation regarding staffing requests 
131.11 	if the commissioner imposes a penalty under subdivision 18.
131.12 		Subd. 15.Disclosure of action plans. (e) (a) A hospital shall must make its most recent
131.13 	action plans and the information listed in paragraph (d) most recent action plan reviews 
131.14 	available to local law enforcement, all direct care staff and, if any of its workers are 
131.15 	represented by a collective bargaining unit, to the exclusive bargaining representatives of 
131.16 	those collective bargaining units.
131.17 	(b) Beginning January 1, 2025, a hospital must annually submit to the commissioner its 
131.18 	most recent action plan and the results of the most recent annual review conducted under 
131.19 	subdivision 12.
131.20 		Subd. 16.Legislative report required. (a) Beginning January 15, 2026, the commissioner 
131.21 	must compile the information into a single annual report and submit the report to the chairs 
131.22 	and ranking minority members of the legislative committees with jurisdiction over health 
131.23 	care by January 15 of each year.
131.24 	(b) This subdivision does not expire.
131.25 		Subd. 17.Interference prohibited. (f) A hospital, including any individual, partner, 
131.26 	association, or any person or group of persons acting directly or indirectly in the interest of 
131.27 	the hospital, shall must not interfere with or discourage a health care worker if the health 
131.28 	care worker wishes to contact law enforcement or the commissioner regarding an act of 
131.29 	violence.
131.30 		Subd. 18.Penalties. (g)Notwithstanding section 144.653, subdivision 6, the 
131.31 	commissioner may impose an administrativea fine of up to $250 $10,000 for failure to 
131.32 	comply with the requirements of this subdivision section. The commissioner must allow 
131.33 	the hospital at least 30 calendar days to correct a violation of this section before assessing 
131.34 	a fine.

132.1 	Sec. 7. Minnesota Statutes 2022, section 144.608, subdivision 1, is amended to read:
132.2 		Subdivision 1.Trauma Advisory Council established. (a) A Trauma Advisory Council 
132.3 	is established to advise, consult with, and make recommendations to the commissioner on 
132.4 	the development, maintenance, and improvement of a statewide trauma system.
132.5 	(b) The council shall consist of the following members:
132.6 	(1) a trauma surgeon certified by the American Board of Surgery or the American 
132.7 	Osteopathic Board of Surgery who practices in a level I or II trauma hospital;
132.8 	(2) a general surgeon certified by the American Board of Surgery or the American 
132.9 	Osteopathic Board of Surgery whose practice includes trauma and who practices in a 
132.10 	designated rural area as defined under section 144.1501, subdivision 1, paragraph (e);
132.11 	(3) a neurosurgeon certified by the American Board of Neurological Surgery who 
132.12 	practices in a level I or II trauma hospital;
132.13 	(4) a trauma program nurse manager or coordinator practicing in a level I or II trauma 
132.14 	hospital;
132.15 	(5) an emergency physician certified by the American Board of Emergency Medicine 
132.16 	or the American Osteopathic Board of Emergency Medicine whose practice includes 
132.17 	emergency room care in a level I, II, III, or IV trauma hospital;
132.18 	(6) a trauma program manager or coordinator who practices in a level III or IV trauma 
132.19 	hospital;
132.20 	(7) a physician certified by the American Board of Family Medicine or the American 
132.21 	Osteopathic Board of Family Practice whose practice includes emergency department care 
132.22 	in a level III or IV trauma hospital located in a designated rural area as defined under section 
132.23 	144.1501, subdivision 1, paragraph (e);
132.24 	(8) a nurse practitioner, as defined under section 144.1501, subdivision 1, paragraph (l), 
132.25 	or a physician assistant, as defined under section 144.1501, subdivision 1, paragraph (o),
132.26 	whose practice includes emergency room care in a level IV trauma hospital located in a 
132.27 	designated rural area as defined under section 144.1501, subdivision 1, paragraph (e);
132.28 	(9) a physician certified in pediatric emergency medicine by the American Board of 
132.29 	Pediatrics or certified in pediatric emergency medicine by the American Board of Emergency 
132.30 	Medicine or certified by the American Osteopathic Board of Pediatrics whose practice 
132.31 	primarily includes emergency department medical care in a level I, II, III, or IV trauma 
133.1 	hospital, or a surgeon certified in pediatric surgery by the American Board of Surgery whose 
133.2 	practice involves the care of pediatric trauma patients in a trauma hospital;
133.3 	(10) an orthopedic surgeon certified by the American Board of Orthopaedic Surgery or 
133.4 	the American Osteopathic Board of Orthopedic Surgery whose practice includes trauma 
133.5 	and who practices in a level I, II, or III trauma hospital;
133.6 	(11) the state emergency medical services medical director appointed by the Emergency 
133.7 	Medical Services Regulatory Board;
133.8 	(12) a hospital administrator of a level III or IV trauma hospital located in a designated 
133.9 	rural area as defined under section 144.1501, subdivision 1, paragraph (e);
133.10 	(13) a rehabilitation specialist whose practice includes rehabilitation of patients with 
133.11 	major trauma injuries or traumatic brain injuries and spinal cord injuries as defined under 
133.12 	section 144.661;
133.13 	(14) an attendant or ambulance director who is an EMT, EMT-I, or EMT-P within the 
133.14 	meaning of section 144E.001 and who actively practices with a licensed ambulance service 
133.15 	in a primary service area located in a designated rural area as defined under section 144.1501, 
133.16 	subdivision 1, paragraph (e); and
133.17 	(15) the commissioner of public safety or the commissioner's designee.

133.18 	Sec. 8. Minnesota Statutes 2022, section 144.653, subdivision 5, is amended to read:
133.19 		Subd. 5.Correction orders. Whenever a duly authorized representative of the state 
133.20 	commissioner of health finds upon inspection of a facility required to be licensed under the 
133.21 	provisions of sections 144.50 to 144.58 that the licensee of such facility is not in compliance 
133.22 	with sections 144.411 to 144.417, 144.50 to 144.58, 144.651, 144.7051 to 144.7058, or 
133.23 	626.557, or the applicable rules promulgated under those sections, a correction order shall 
133.24 	be issued to the licensee. The correction order shall state the deficiency, cite the specific 
133.25 	rule violated, and specify the time allowed for correction.

133.26 	Sec. 9. [144.7051] DEFINITIONS.
133.27 		Subdivision 1.Applicability. For the purposes of sections 144.7051 to 144.7058, the 
133.28 	terms defined in this section have the meanings given.
133.29 		Subd. 2.Concern for safe staffing form. "Concern for safe staffing form" means a 
133.30 	standard uniform form developed by the commissioner that may be used by any individual 
133.31 	to report unsafe staffing situations while maintaining the privacy of patients.
134.1 		Subd. 3.Commissioner. "Commissioner" means the commissioner of health.
134.2 		Subd. 4.Daily staffing schedule. "Daily staffing schedule" means the actual number 
134.3 	of full-time equivalent nonmanagerial care staff assigned to an inpatient care unit and 
134.4 	providing care in that unit during a 24-hour period and the actual number of patients assigned 
134.5 	to each direct care registered nurse present and providing care in the unit.
134.6 		Subd. 5.Direct-care registered nurse. "Direct-care registered nurse" means a registered 
134.7 	nurse, as defined in section 148.171, subdivision 20, who is nonsupervisory and 
134.8 	nonmanagerial and who directly provides nursing care to patients more than 60 percent of 
134.9 	the time.
134.10 		Subd. 6.Emergency. "Emergency" means a period when replacement staff are not able 
134.11 	to report for duty for the next shift or a period of increased patient need because of unusual, 
134.12 	unpredictable, or unforeseen circumstances, including but not limited to an act of terrorism, 
134.13 	a disease outbreak, adverse weather conditions, or a natural disaster that impacts continuity 
134.14 	of patient care.
134.15 		Subd. 7.Hospital. "Hospital" means any setting that is licensed under this chapter as a 
134.16 	hospital.

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

134.18 	Sec. 10. [144.7053] HOSPITAL NURSE STAFFING COMMITTEE.
134.19 		Subdivision 1.Hospital nurse staffing committee required. (a) Each hospital must 
134.20 	establish and maintain a functioning hospital nurse staffing committee. A hospital may 
134.21 	assign the functions and duties of a hospital nurse staffing committee to an existing committee 
134.22 	provided the existing committee meets the membership requirements applicable to a hospital 
134.23 	nurse staffing committee.
134.24 	(b) The commissioner is not required to verify compliance with this section by an on-site 
134.25 	visit.
134.26 		Subd. 2.Staffing committee membership. (a) At least 35 percent of the hospital nurse 
134.27 	staffing committee's membership must be direct care registered nurses typically assigned 
134.28 	to a specific unit for an entire shift and at least 15 percent of the committee's membership 
134.29 	must be other direct care workers typically assigned to a specific unit for an entire shift. A 
134.30 	hospital's nurse staffing committee's membership must consist of at least one nurse from 
134.31 	each unit covered by the hospital's core staffing plan. Direct care registered nurses and other 
134.32 	direct care workers who are members of a collective bargaining unit shall be appointed or 
134.33 	elected to the committee according to the guidelines of the applicable collective bargaining 
135.1 	agreement. If there is no collective bargaining agreement, direct care registered nurses shall 
135.2 	be elected to the committee by direct care registered nurses employed by the hospital and 
135.3 	other direct care workers shall be elected to the committee by other direct care workers 
135.4 	employed by the hospital.
135.5 	(b) The hospital shall appoint 50 percent of the hospital nurse staffing committee's 
135.6 	membership.
135.7 		Subd. 3.Staffing committee compensation. A hospital must treat participation in the 
135.8 	hospital nurse staffing committee meetings by any hospital employee as scheduled work 
135.9 	time and compensate each committee member at the employee's existing rate of pay. A 
135.10 	hospital must relieve all direct care registered nurse members of the hospital nurse staffing 
135.11 	committee of other work duties during the times when the committee meets.
135.12 		Subd. 4.Staffing committee meeting frequency. Each hospital nurse staffing committee 
135.13 	must meet at least quarterly.
135.14 		Subd. 5.Staffing committee duties. (a) Each hospital nurse staffing committee shall 
135.15 	create, implement, continuously evaluate, and update as needed evidence-based written 
135.16 	core staffing plans to guide the creation of daily staffing schedules for each inpatient care 
135.17 	unit of the hospital. Each hospital nurse staffing committee must adopt a core staffing plan 
135.18 	annually by a majority vote of all members.
135.19 	(b) Each hospital nurse staffing committee must:
135.20 	(1) establish a secure, uniform, and easily accessible method for any hospital employee, 
135.21 	patient, or patient family member to submit directly to the committee a concern for safe 
135.22 	staffing form;
135.23 	(2) review each concern for safe staffing form;
135.24 	(3) forward a copy of all concern for safe staffing forms to the relevant hospital nurse 
135.25 	workload committee;
135.26 	(4) review the documentation of compliance maintained by the hospital under section 
135.27 	144.7056, subdivision 10;
135.28 	(5) conduct a trend analysis of the data related to all reported concerns regarding safe 
135.29 	staffing;
135.30 	(6) develop a mechanism for tracking and analyzing staffing trends within the hospital;
135.31 	(7) submit a nurse staffing report to the commissioner;
136.1 	(8) assist the commissioner in compiling data for the Nursing Workforce Report by 
136.2 	encouraging participation in the commissioner's independent study on reasons licensed 
136.3 	registered nurses are leaving the profession; and
136.4 	(9) record in the committee minutes for each meeting a summary of the discussions and 
136.5 	recommendations of the committee. Each committee must maintain the minutes, records, 
136.6 	and distributed materials for five years.

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

136.8 	Sec. 11. [144.7054] HOSPITAL NURSE WORKLOAD COMMITTEE.
136.9 		Subdivision 1.Hospital nurse workload committee required. (a) Each hospital must 
136.10 	establish and maintain functioning hospital nurse workload committees for each unit. A 
136.11 	hospital designated as a critical access hospital under section 144.1483, clause (9), may 
136.12 	assign the functions and duties of its nurse workload committees to the hospital's nurse 
136.13 	staffing committee.
136.14 	(b) The commissioner is not required to verify compliance with this section by an on-site 
136.15 	visit.
136.16 		Subd. 2.Workload committee membership. (a) At least 35 percent of each workload  
136.17 	committee's membership must be direct care registered nurses typically assigned to the unit 
136.18 	for an entire shift and at least 15 percent of the committee's membership must be other direct 
136.19 	care workers typically assigned to the unit for an entire shift. Direct care registered nurses 
136.20 	and other direct care workers who are members of a collective bargaining unit shall be 
136.21 	appointed or elected to the committee according to the guidelines of the applicable collective 
136.22 	bargaining agreement. If there is no collective bargaining agreement, direct care registered 
136.23 	nurses shall be elected to the committee by direct care registered nurses typically assigned 
136.24 	to the unit for an entire shift and other direct care workers shall be elected to the committee 
136.25 	by other direct care workers typically assigned to the unit for an entire shift.
136.26 	(b) The hospital shall appoint 50 percent of each unit's nurse workload committee's 
136.27 	membership.
136.28 	(c) Notwithstanding paragraphs (a) and (b), if a hospital has established a staffing 
136.29 	committee through collective bargaining, the composition of that committee prevails.
136.30 		Subd. 3.Workload committee compensation. A hospital must treat participation in a 
136.31 	hospital nurse workload committee meeting by any hospital employee as scheduled work 
136.32 	time and compensate each committee member at the employee's existing rate of pay. A 
137.1 	hospital must relieve all direct care registered nurse members of a hospital nurse workload 
137.2 	committee of other work duties during the times when the committee meets.
137.3 		Subd. 4.Workload committee meeting frequency. Each hospital nurse workload 
137.4 	committee must meet at least monthly whenever the committee is in receipt of an unresolved 
137.5 	concern for safe staffing form.
137.6 		Subd. 5.Workload committee duties. (a) Each hospital nurse workload committee 
137.7 	must create, implement, and maintain dispute resolution procedures to guide the committee's 
137.8 	development and implementation of solutions to the staffing concerns raised in concern for 
137.9 	safe staffing forms that have been forwarded to the committee. The dispute resolution 
137.10 	procedures must include a two-step process. If the nurse workforce committee is not able 
137.11 	to implement a solution to the concerns raised in a concern for safe staffing form, the 
137.12 	workload committee must refer the matter to the hospital nurse staffing committee within 
137.13 	15 calendar days of the events described in the concern for safe staffing form. If after both 
137.14 	the nurses and hospitals have attempted in good faith to resolve the concern either side may 
137.15 	move forward to an expedited arbitration process with an arbitrator who has expertise in 
137.16 	patient care that must be completed within 30 calendar days of the dispute being escalated 
137.17 	to the hospital nurse staffing committee.
137.18 	(b) In the event both parties believe that they have reached an impasse prior to the 15- 
137.19 	or 30-day deadline, the parties may move to the next appropriate step. The committee must 
137.20 	use the expedited arbitration process for any complaint that remains unresolved 45 days 
137.21 	after the submission of the concern for safe staffing form that gave rise to the complaint.
137.22 	(c) Each hospital nurse workload committee must attempt to expeditiously resolve 
137.23 	staffing issues the committee determines arise from a violation of the hospital's core staffing 
137.24 	plan.
137.25 	(d) If the majority of the members of the workload committee agree that the concerns 
137.26 	raised can be reasonably grouped together or considered together because multiple forms 
137.27 	were submitted from one patient care unit on one date or shift, then the committee can 
137.28 	decide to submit them as one occurrence.

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

137.30 	Sec. 12. Minnesota Statutes 2022, section 144.7055, is amended to read:
137.31 	144.7055 HOSPITAL CORE STAFFING PLAN REPORTS.
137.32 		Subdivision 1.Definitions. (a) For the purposes of this section sections 144.7051 to 
137.33 	144.7058, the following terms have the meanings given.
138.1 	(b) "Core staffing plan" means the projected number of full-time equivalent 
138.2 	nonmanagerial care staff that will be assigned in a 24-hour period to an inpatient care unit
138.3 	a plan described in subdivision 2.
138.4 	(c) "Nonmanagerial care staff" means registered nurses, licensed practical nurses, and 
138.5 	other health care workers, which may include but is not limited to nursing assistants, nursing 
138.6 	aides, patient care technicians, and patient care assistants, who perform nonmanagerial 
138.7 	direct patient care functions for more than 50 percent of their scheduled hours on a given 
138.8 	patient care unit.
138.9 	(d) "Inpatient care unit" or "unit" means a designated inpatient area for assigning patients 
138.10 	and staff for which a distinct staffing plan daily staffing schedule exists and that operates 
138.11 	24 hours per day, seven days per week in a hospital setting. Inpatient care unit does not 
138.12 	include any hospital-based clinic, long-term care facility, or outpatient hospital department.
138.13 	(e) "Staffing hours per patient day" means the number of full-time equivalent 
138.14 	nonmanagerial care staff who will ordinarily be assigned to provide direct patient care 
138.15 	divided by the expected average number of patients upon which such assignments are based.
138.16 	(f) "Patient acuity tool" means a system for measuring an individual patient's need for 
138.17 	nursing care. This includes utilizing a professional registered nursing assessment of patient 
138.18 	condition to assess staffing need.
138.19 		Subd. 2.Hospital core staffing report plans. (a) The chief nursing executive or nursing 
138.20 	designee hospital nurse staffing committee of every reporting hospital in Minnesota under 
138.21 	section 144.50 will must develop a core staffing plan for each patient inpatient care unit.
138.22 	(b) The commissioner is not required to verify compliance with this section by an on-site 
138.23 	visit.
138.24 	(b) (c) Core staffing plans shall must specify all of the following:
138.25 	(1) the projected number of full-time equivalent for nonmanagerial care staff that will 
138.26 	be assigned in a 24-hour period to each patient inpatient care unit for each 24-hour period.;
138.27 	(2) the maximum number of patients on each inpatient care unit for whom a direct care 
138.28 	nurse can typically safely care;
138.29 	(3) criteria for determining when circumstances exist on each inpatient care unit such 
138.30 	that a direct care nurse cannot safely care for the typical number of patients and when 
138.31 	assigning a lower number of patients to each nurse on the inpatient unit would be appropriate;
139.1 	(4) a procedure for each inpatient care unit to make shift-to-shift adjustments in staffing 
139.2 	levels when such adjustments are required by patient acuity and nursing intensity in the 
139.3 	unit;
139.4 	(5) a contingency plan for each inpatient unit to safely address circumstances in which 
139.5 	patient care needs unexpectedly exceed the staffing resources provided for in a daily staffing 
139.6 	schedule. A contingency plan must include a method to quickly identify, for each daily 
139.7 	staffing schedule, additional direct care registered nurses who are available to provide direct 
139.8 	care on the inpatient care unit;
139.9 	(6) strategies to enable direct care registered nurses to take breaks they are entitled to 
139.10 	under law or under an applicable collective bargaining agreement; and
139.11 	(7) strategies to eliminate patient boarding in emergency departments that do not rely 
139.12 	on requiring direct care registered nurses to work additional hours to provide care.
139.13 	(c)(d) Core staffing plans must ensure that:
139.14 	(1) the person creating a daily staffing schedule has sufficiently detailed information to 
139.15 	create a daily staffing schedule that meets the requirements of the plan;
139.16 	(2) daily staffing schedules do not rely on assigning individual nonmanagerial care staff 
139.17 	to work overtime hours in excess of 16 hours in a 24-hour period or to work consecutive 
139.18 	24-hour periods requiring 16 or more hours;
139.19 	(3) a direct care registered nurse is not required or expected to perform functions outside 
139.20 	the nurse's professional license;
139.21 	(4) a light duty direct care registered nurse is given appropriate assignments;
139.22 	(5) a charge nurse does not have patient assignments; and
139.23 	(6) daily staffing schedules do not interfere with applicable collective bargaining 
139.24 	agreements.
139.25 		Subd. 2a.Development of hospital core staffing plans. (a) Prior to submitting
139.26 	completing or updating the core staffing plan, as required in subdivision 3, hospitals shall
139.27 	a hospital nurse staffing committee must consult with representatives of the hospital medical 
139.28 	staff, managerial and nonmanagerial care staff, and other relevant hospital personnel about 
139.29 	the core staffing plan and the expected average number of patients upon which the core
139.30 	staffing plan is based.
139.31 	(b) When developing a core staffing plan, a hospital nurse staffing committee must 
139.32 	consider all of the following:
140.1 	(1) the individual needs and expected census of each inpatient care unit;
140.2 	(2) unit-specific patient acuity, including fall risk and behaviors requiring intervention, 
140.3 	such as physical aggression toward self or others or destruction of property;
140.4 	(3) unit-specific demands on direct care registered nurses' time, including: frequency of 
140.5 	admissions, discharges, and transfers; frequency and complexity of patient evaluations and 
140.6 	assessments; frequency and complexity of nursing care planning; planning for patient 
140.7 	discharge; assessing for patient referral; patient education; and implementing infectious 
140.8 	disease protocols;
140.9 	(4) the architecture and geography of the inpatient care unit, including the placement of 
140.10 	patient rooms, treatment areas, nursing stations, medication preparation areas, and equipment;
140.11 	(5) mechanisms and procedures to provide for one-to-one patient observation for patients 
140.12 	on psychiatric or other units;
140.13 	(6) the stress that direct-care nurses experience when required to work extreme amounts 
140.14 	of overtime, such as shifts in excess of 12 hours or multiple consecutive double shifts;
140.15 	(7) the need for specialized equipment and technology on the unit;
140.16 	(8) other special characteristics of the unit or community patient population, including 
140.17 	age, cultural and linguistic diversity and needs, functional ability, communication skills, 
140.18 	and other relevant social and socioeconomic factors;
140.19 	(9) the skill mix of personnel other than direct care registered nurses providing or 
140.20 	supporting direct patient care on the unit;
140.21 	(10) mechanisms and procedures for identifying additional registered nurses who are 
140.22 	available for direct patient care when patients' unexpected needs exceed the planned workload 
140.23 	for direct care staff; and
140.24 	(11) demands on direct care registered nurses' time not directly related to providing 
140.25 	direct care on a unit, such as involvement in quality improvement activities, professional 
140.26 	development, service to the hospital, including serving on the hospital nurse staffing 
140.27 	committee or the hospital nurse workload committee, and service to the profession.
140.28 		Subd. 2b.Failure to develop hospital core staffing plans. If a hospital nurse staffing 
140.29 	committee cannot approve a hospital core staffing plan by a majority vote, the members of 
140.30 	the nurse staffing committee must enter an expedited arbitration process with an arbitrator 
140.31 	who understands patient care needs.
141.1 		Subd. 2c.Objections to hospital core staffing plans. (a) If hospital management objects 
141.2 	to a core staffing plan approved by a majority vote of the hospital nurse staffing committee, 
141.3 	the hospital may elect to attempt to amend the core staffing plan through arbitration.
141.4 	(b) During an ongoing dispute resolution process, a hospital must continue to implement 
141.5 	the core staffing plan as written and approved by the hospital nurse staffing committee.
141.6 	(c) If the dispute resolution process results in an amendment to the core staffing plan, 
141.7 	the hospital must implement the amended core staffing plan.
141.8 		Subd. 2d. Mandatory submission of core staffing plan to commissioner.  Each hospital 
141.9 	must submit to the commissioner the core staffing plans approved by the hospital's nurse 
141.10 	staffing committee. A hospital must submit any substantial updates to any previously 
141.11 	approved plan, including any amendments to the plan resulting from arbitration, within 30 
141.12 	calendar days of approval of the update by the committee or the conclusion of arbitration.
141.13 		Subd. 3.Standard electronic reporting developed. (a) Hospitals must submit the core 
141.14 	staffing plans to the Minnesota Hospital Association by January 1, 2014. The Minnesota 
141.15 	Hospital Association shall include each reporting hospital's core staffing plan on the 
141.16 	Minnesota Hospital Association's Minnesota Hospital Quality Report website by April 1, 
141.17 	2014. any substantial changes to the core staffing plan shall be updated within 30 days.
141.18 	(b) The Minnesota Hospital Association shall include on its website for each reporting 
141.19 	hospital on a quarterly basis the actual direct patient care hours per patient and per unit. 
141.20 	Hospitals must submit the direct patient care report to the Minnesota Hospital Association 
141.21 	by July 1, 2014, and quarterly thereafter.

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

141.23 	Sec. 13. [144.7056] IMPLEMENTATION OF HOSPITAL CORE STAFFING PLANS.
141.24 		Subdivision 1.Plan implementation required. (a) A hospital must implement the core 
141.25 	staffing plans approved annually by a majority vote of its hospital nurse staffing committee. 
141.26 	Nothing in sections 144.7051 to 144.7058 relieves the chief nursing executive of a hospital 
141.27 	from fulfilling the chief nursing executive's duties under Code of Federal Regulations, title 
141.28 	42, section 482.23. If at any time the chief nursing executive believes the types and numbers 
141.29 	of nursing personnel and staff required under the hospital's core staffing plan are insufficient 
141.30 	to provide nursing care for a unit in the hospital, the chief nursing executive may increase 
141.31 	the staffing on that unit beyond the levels required by the plan.
142.1 	(b) A core staffing plan does not apply during an emergency and a hospital is not out of 
142.2 	compliance with its core staffing plan during an emergency. A nurse may be required to 
142.3 	accept an additional patient assignment in an emergency.
142.4 	(c) The commissioner is required to verify compliance with this section by on-site visits 
142.5 	during routine hospital surveys.
142.6 		Subd. 2.Public posting of core staffing plans. A hospital must post its core staffing 
142.7 	plan for each inpatient care unit in a public area on the relevant unit.
142.8 		Subd. 3.Public posting of compliance with plan. For each publicly posted core staffing 
142.9 	plan, a hospital must post a notice stating whether the current staffing on the unit complies 
142.10 	with the hospital's core staffing plan for that unit. The public notice of compliance must 
142.11 	include a list of the number of nonmanagerial care staff working on the unit during the 
142.12 	current shift and the number of patients assigned to each direct care registered nurse working 
142.13 	on the unit during the current shift. The list must enumerate the nonmanagerial care staff 
142.14 	by health care worker type. The public notice of compliance must be posted immediately 
142.15 	adjacent to the publicly posted core staffing plan.
142.16 		Subd. 4.Public posting of emergency department wait times. A hospital must maintain 
142.17 	on its website and publicly display in its emergency department the approximate wait time 
142.18 	for patients who are not in critical need of emergency care. The approximate wait time must 
142.19 	be updated at least hourly.
142.20 		Subd. 5.Public distribution of core staffing plan and notice of compliance. (a) A 
142.21 	hospital must include with the posted materials described in subdivisions 2 and 3 a statement 
142.22 	that individual copies of the posted materials are available upon request to any patient on 
142.23 	the unit, visitor of a patient on the unit, or prospective patient. The statement must include 
142.24 	specific instructions for obtaining copies of the posted materials.
142.25 	(b) A hospital must, within four hours after the request, provide individual copies of all 
142.26 	the posted materials described in subdivisions 2 and 3 to any patient on the unit or to any 
142.27 	visitor of a patient on the unit who requests the materials.
142.28 		Subd. 6.Reporting noncompliance. (a) Any hospital employee, patient, or patient 
142.29 	family member may submit a concern for safe staffing form to report an instance of 
142.30 	noncompliance with a hospital's core staffing plan, to object to the contents of a core staffing 
142.31 	plan, or to challenge the process of the hospital nurse staffing committee.
142.32 	(b) A hospital must not interfere with or retaliate against a hospital employee for 
142.33 	submitting a concern for safe staffing form.
143.1 	(c) The commissioner of labor and industry may investigate any report of interference 
143.2 	with or retaliation against a hospital employee for submitting a concern for safe staffing 
143.3 	form. The commissioner of labor and industry may fine a hospital up to $250,000 if the 
143.4 	commissioner finds the hospital interfered with or retaliated against a hospital employee 
143.5 	for submitting a concern for safe staffing form.
143.6 		Subd. 7.Documentation of compliance. Each hospital must document compliance with 
143.7 	its core nursing plans and maintain records demonstrating compliance for each inpatient 
143.8 	care unit for five years. Each hospital must provide to its nurse staffing committee access 
143.9 	to all documentation required under this subdivision.

143.10 	EFFECTIVE DATE. This section is effective October 1, 2025.

143.11 	Sec. 14. [144.7057] HOSPITAL NURSE STAFFING REPORTS.
143.12 		Subdivision 1.Nurse staffing report required. Each hospital nurse staffing committee 
143.13 	must submit quarterly nurse staffing reports to the commissioner. Reports must be submitted 
143.14 	within 60 days of the end of the quarter.
143.15 		Subd. 2.Nurse staffing report. Nurse staffing reports submitted to the commissioner 
143.16 	by a hospital nurse staffing committee must:
143.17 	(1) identify any suspected incidents of the hospital failing during the reporting quarter 
143.18 	to meet the standards of one of its core staffing plans;
143.19 	(2) identify each occurrence of the hospital accepting an elective surgery at a time when 
143.20 	the unit performing the surgery is out of compliance with its core staffing plan;
143.21 	(3) identify problems of insufficient staffing, including but not limited to:
143.22 	(i) inappropriate number of direct care registered nurses scheduled in a unit;
143.23 	(ii) inappropriate number of direct care registered nurses present and delivering care in 
143.24 	a unit;
143.25 	(iii) inappropriately experienced direct care registered nurses scheduled for a particular 
143.26 	unit;
143.27 	(iv) inappropriately experienced direct care registered nurses present and delivering care 
143.28 	in a unit;
143.29 	(v) inability for nurse supervisors to adjust daily nursing schedules for increased patient 
143.30 	acuity or nursing intensity in a unit; and
143.31 	(vi) chronically unfilled direct care positions within the hospital;
144.1 	(4) identify any units that pose a risk to patient safety due to inadequate staffing;
144.2 	(5) propose solutions to solve insufficient staffing;
144.3 	(6) propose solutions to reduce risks to patient safety in inadequately staffed units; and
144.4 	(7) describe staffing trends within the hospital.
144.5 		Subd. 3.Public posting of nurse staffing reports. The commissioner must include on 
144.6 	its website each quarterly nurse staffing report submitted to the commissioner under 
144.7 	subdivision 1.
144.8 		Subd. 4.Standardized reporting. The commissioner shall develop and provide to each 
144.9 	hospital nurse staffing committee a uniform format or standard form the committee must 
144.10 	use to comply with the nurse staffing reporting requirements under this section. The format 
144.11 	or form developed by the commissioner must present the reported information in a manner 
144.12 	allowing patients and the public to clearly understand and compare staffing patterns and 
144.13 	actual levels of staffing across reporting hospitals. The commissioner must include, in the 
144.14 	uniform format or on the standardized form, space to allow the reporting hospital to include 
144.15 	a description of additional resources available to support unit-level patient care and a 
144.16 	description of the hospital.
144.17 		Subd. 5.Penalties. Notwithstanding section 144.653, subdivisions 5 and 6, the 
144.18 	commissioner may impose an immediate fine of up to $5,000 for each instance of a failure 
144.19 	to report an elective surgery requiring reporting under subdivision 2, clause (2). The facility 
144.20 	may request a hearing on the immediate fine under section 144.653, subdivision 8.

144.21 	EFFECTIVE DATE. This section is effective October 1, 2025.

144.22 	Sec. 15. [144.7058] GRADING OF COMPLIANCE WITH CORE STAFFING PLANS.
144.23 		Subdivision 1.Grading compliance with core staffing plans. By January 1, 2026, the 
144.24 	commissioner must develop a uniform annual grading system that evaluates each hospital's 
144.25 	compliance with its own core staffing plan. The commissioner must assign each hospital a 
144.26 	compliance grade based on a review of the hospital's nurse staffing report submitted under 
144.27 	section 144.7057. The commissioner must assign a failing compliance grade to any hospital 
144.28 	that has not been in compliance with its staffing plan for six or more months during the 
144.29 	reporting year.
144.30 		Subd. 2.Grading factors. When grading a hospital's compliance with its core staffing 
144.31 	plan, the commissioner must consider at least the following factors:
144.32 	(1) the number of assaults and injuries occurring in the hospital involving patients;
145.1 	(2) the prevalence of infections, pressure ulcers, and falls among patients;
145.2 	(3) emergency department wait times;
145.3 	(4) readmissions;
145.4 	(5) use of restraints and other behavior interventions;
145.5 	(6) employment turnover rates among direct care registered nurses and other direct care 
145.6 	health care workers;
145.7 	(7) except in instances when nurses volunteer for overtime, prevalence of overtime 
145.8 	among direct care registered nurses and other direct care health care workers;
145.9 	(8) prevalence of missed shift breaks among direct care registered nurses and other direct 
145.10 	care health care workers;
145.11 	(9) frequency of incidents of being out of compliance with a core staffing plan;
145.12 	(10) the extent of noncompliance with a core staffing plan; and
145.13 	(11) number of inpatient psychiatric units.
145.14 		Subd. 3.Public disclosure of compliance grades. Beginning January 1, 2027, the 
145.15 	commissioner must publish a compliance grade for each hospital on the department website 
145.16 	with a link to the hospital's core staffing plan, the hospital's nurse staffing reports, and an 
145.17 	accessible and easily understandable explanation of what the compliance grade means.

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

145.19 	Sec. 16. [144.7059] RETALIATION AGAINST NURSES PROHIBITED.
145.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
145.21 	the meanings given.
145.22 	(b) "Emergency" means a period when replacement staff are not able to report for duty 
145.23 	for the next shift, or a period of increased patient need, because of unusual, unpredictable, 
145.24 	or unforeseen circumstances, including but not limited to an act of terrorism, a disease 
145.25 	outbreak, adverse weather conditions, or a natural disaster, that impacts continuity of patient 
145.26 	care.
145.27 	(c) "Nurse" has the meaning given in section 148.171, subdivision 9, and includes nurses 
145.28 	employed by the state.
146.1 	(d) "Taking action against" means discharging, disciplining, threatening, reporting to 
146.2 	the Board of Nursing, discriminating against, or penalizing regarding compensation, terms, 
146.3 	conditions, location, or privileges of employment.
146.4 		Subd. 2.Prohibited actions. Except as provided in subdivision 5, a hospital or other 
146.5 	entity licensed under sections 144.50 to 144.58, and its agent, or other health care facility 
146.6 	licensed by the commissioner of health, and the facility's agent, is prohibited from taking 
146.7 	action against a nurse solely on the ground that the nurse fails to accept an assignment of 
146.8 	one or more additional patients because the nurse reasonably determines that accepting an 
146.9 	additional patient assignment may create an unnecessary danger to a patient's life, health, 
146.10 	or safety or may otherwise constitute a ground for disciplinary action under section 148.261. 
146.11 	This subdivision does not apply to a nursing facility, an intermediate care facility for persons 
146.12 	with developmental disabilities, or a licensed boarding care home.
146.13 		Subd. 3.State nurses. Subdivision 2 applies to nurses employed by the state regardless 
146.14 	of the type of facility where the nurse is employed and regardless of the facility's license, 
146.15 	if the nurse is involved in resident or patient care.
146.16 		Subd. 4.Collective bargaining rights. This section does not diminish or impair the 
146.17 	rights of a person under any collective bargaining agreement.
146.18 		Subd. 5.Emergency. A nurse may be required to accept an additional patient assignment 
146.19 	in an emergency.
146.20 		Subd. 6.Enforcement. The commissioner of labor and industry may enforce this section 
146.21 	by issuing a compliance order under section 177.27, subdivision 4. The commissioner of 
146.22 	labor and industry may assess a fine of up to $5,000 for each violation of this section.

146.23 	Sec. 17. Minnesota Statutes 2022, section 144.7067, subdivision 1, is amended to read:
146.24 		Subdivision 1.Establishment of reporting system. (a) The commissioner shall establish 
146.25 	an adverse health event reporting system designed to facilitate quality improvement in the 
146.26 	health care system. The reporting system shall not be designed to punish errors by health 
146.27 	care practitioners or health care facility employees.
146.28 	(b) The reporting system shall consist of:
146.29 	(1) mandatory reporting by facilities of 27 adverse health care events;
146.30 	(2) mandatory reporting by facilities of whether the unit where an adverse event occurred 
146.31 	was in compliance with the core staffing plan for the unit at the time of the adverse event;
147.1 	(3) mandatory completion of a root cause analysis and a corrective action plan by the 
147.2 	facility and reporting of the findings of the analysis and the plan to the commissioner or 
147.3 	reporting of reasons for not taking corrective action;
147.4 	(3) (4) analysis of reported information by the commissioner to determine patterns of 
147.5 	systemic failure in the health care system and successful methods to correct these failures;
147.6 	(4) (5) sanctions against facilities for failure to comply with reporting system 
147.7 	requirements; and
147.8 	(5) (6) communication from the commissioner to facilities, health care purchasers, and 
147.9 	the public to maximize the use of the reporting system to improve health care quality.
147.10 	(c) The commissioner is not authorized to select from or between competing alternate 
147.11 	acceptable medical practices.

147.12 	EFFECTIVE DATE. This section is effective October 1, 2025.

147.13 	Sec. 18. Minnesota Statutes 2022, section 147A.08, is amended to read:
147.14 	147A.08 EXEMPTIONS.
147.15 	(a) This chapter does not apply to, control, prevent, or restrict the practice, service, or 
147.16 	activities of persons listed in section 147.09, clauses (1) to (6) and (8) to (13),; persons 
147.17 	regulated under section 214.01, subdivision 2,; or persons midlevel practitioners, nurses, 
147.18 	or nurse-midwives as defined in section 144.1501, subdivision 1, paragraphs (i), (k), and 
147.19 	(l).
147.20 	(b) Nothing in this chapter shall be construed to require licensure of:
147.21 	(1) a physician assistant student enrolled in a physician assistant educational program 
147.22 	accredited by the Accreditation Review Commission on Education for the Physician Assistant 
147.23 	or by its successor agency approved by the board;
147.24 	(2) a physician assistant employed in the service of the federal government while 
147.25 	performing duties incident to that employment; or
147.26 	(3) technicians, other assistants, or employees of physicians who perform delegated 
147.27 	tasks in the office of a physician but who do not identify themselves as a physician assistant.

147.28 	Sec. 19. BEST PRACTICES TOOLKIT DEVELOPMENT.
 147.29 	The commissioner of health must convene a stakeholder group that will meet for six 
147.30 	months to develop a toolkit with best practices for implementation of workload committee 
148.1 	and hospital staffing committees. The toolkit and best practices must include a 
148.2 	recommendation that each hospital utilize a federal mediator or the Office of Collaboration 
148.3 	and Dispute Resolution to moderate the establishment of committees in each hospital. The 
148.4 	commissioner must make the toolkit with the recommended best practices available to 
148.5 	hospitals by July 1, 2024.

148.6 	Sec. 20. DIRECTION TO COMMISSIONER OF HEALTH; DEVELOPMENT OF 
148.7 	ANALYTICAL TOOLS.
 148.8 	(a) The commissioner of health, in consultation with the Minnesota Nurses Association 
148.9 	and other professional nursing organizations, must develop a means of analyzing available 
148.10 	adverse event data, available staffing data, and available data from concern for safe staffing 
148.11 	forms to examine potential causal links between adverse events and understaffing.
148.12 	(b) The commissioner must develop an initial means of conducting the analysis described 
148.13 	in paragraph (a) by January 1, 2025, and publish a public report on the commissioner's 
148.14 	initial findings by January 1, 2026.
148.15 	(c) By January 1, 2024, the commissioner must submit to the chairs and ranking minority 
148.16 	members of the house and senate committees with jurisdiction over the regulation of hospitals 
148.17 	a report on the available data, potential sources of additional useful data, and any additional 
148.18 	statutory authority the commissioner requires to collect additional useful information from 
148.19 	hospitals.

148.20 	EFFECTIVE DATE. This section is effective August 1, 2023.

148.21 	Sec. 21. DIRECTION TO COMMISSIONER OF HEALTH; NURSING 
148.22 	WORKFORCE REPORT.
 148.23 	(a) The commissioner of health must publish a public report on the current status of the 
148.24 	state's nursing workforce employed by hospitals. In preparing the report, the commissioner 
148.25 	shall utilize information collected in collaboration with the Board of Nursing as directed 
148.26 	under Minnesota Statutes, sections 144.051 and 144.052, on Minnesota's supply of active 
148.27 	licensed nurses and reasons licensed nurses are leaving direct care positions at hospitals; 
148.28 	information collected and shared by the Minnesota Hospital Association on retention by 
148.29 	hospitals of licensed nurses; information collected through an independent study on reasons 
148.30 	licensed nurses are choosing not to renew their licenses and leaving the profession; and 
148.31 	other publicly available data the commissioner deems useful.
148.32 	(b) The commissioner must publish the report by January 1, 2026.

149.1 	Sec. 22. DIRECTION TO COMMISSIONER OF HEALTH; KEEPING NURSES 
149.2 	AT THE BEDSIDE ACT IMPACT EVALUATION.
 149.3 	By October 1, 2023, the commissioner of health must contract with the commissioner 
149.4 	of management and budget for the services of the Impact Evaluation Unit to design and 
149.5 	implement a rigorous causal impact evaluation using time-series data or other evaluation 
149.6 	methods as determined by the Impact Evaluation Unit to estimate the causal impact of the 
149.7 	implementation of Minnesota Statutes, sections 144.7051 to 144.7059, on patient care, nurse 
149.8 	job satisfaction, nurse retention, and other outcomes as determined by the commissioner 
149.9 	and the Impact Evaluation Unit. The Impact Evaluation Unit may subcontract with other 
149.10 	research organizations to assist with the design or implementation of the impact evaluation. 
149.11 	By February 15, 2024, the commissioner of health must submit to the chairs and ranking 
149.12 	minority members of the legislative committees with jurisdiction over health finance and 
149.13 	policy draft legislation specifying any additional authorities the commissioner and the Impact 
149.14 	Evaluation Unit may require to collect the data required to conduct a successful impact 
149.15 	evaluation of the implementation of Minnesota Statutes, sections 144.7051 to 144.7059. 
149.16 	By October 1, 2024, the Impact Evaluation Unit must begin collecting baseline data. By 
149.17 	June 30, 2027, the Impact Evaluation Unit must submit to the commissioner of health a 
149.18 	public initial report on the status of the evaluation project and any preliminary results.

149.19 	Sec. 23. DIRECTION TO COMMISSIONER OF HUMAN SERVICES.
 149.20 	The commissioner of human services must define as a direct educational expense the 
149.21 	reasonable child care costs incurred by a nursing facility employee scholarship recipient 
149.22 	while the recipient is receiving a wage from the scholarship sponsoring facility, provided 
149.23 	the scholarship recipient is making reasonable progress, as defined by the commissioner, 
149.24 	toward the educational goal for which the scholarship was granted.

149.25 	Sec. 24. INITIAL IMPLEMENTATION OF THE KEEPING NURSES AT THE 
149.26 	BEDSIDE ACT.
 149.27 	(a) By October 1, 2024, each hospital must establish and convene a hospital nurse staffing 
149.28 	committee as described under Minnesota Statutes, section 144.7053, and a hospital nurse 
149.29 	workload committee as described under Minnesota Statutes, section 144.7054.
149.30 	(b) By October 1, 2025, each hospital must implement core staffing plans developed by 
149.31 	its hospital nurse staffing committee and satisfy the plan posting requirements under 
149.32 	Minnesota Statutes, section 144.7056.
150.1 	(c) By October 1, 2025, each hospital must submit to the commissioner of health core 
150.2 	staffing plans meeting the requirements of Minnesota Statutes, section 144.7055.
150.3 	(d) By October 1, 2025, the commissioner of health must develop a standard concern 
150.4 	for safe staffing form and provide an electronic means of submitting the form to the relevant 
150.5 	hospital nurse staffing committee. The commissioner must base the form on the existing 
150.6 	concern for safe staffing form maintained by the Minnesota Nurses' Association.
150.7 	(e) By January 1, 2026, the commissioner of health must provide electronic access to 
150.8 	the uniform format or standard form for nurse staffing reporting described under Minnesota 
150.9 	Statutes, section 144.7057, subdivision 4.

150.10 	Sec. 25. REVISOR INSTRUCTION.
 150.11 	In Minnesota Statutes, section 144.7055, the revisor shall renumber paragraphs (b) to 
150.12 	(e) alphabetically as individual subdivisions under Minnesota Statutes, section 144.7051. 
150.13 	The revisor shall make any necessary changes to sentence structure for this renumbering 
150.14 	while preserving the meaning of the text. The revisor shall also make necessary 
150.15 	cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the 
150.16 	renumbering.

150.17 	ARTICLE 4
150.18 	DEPARTMENT OF HEALTH

150.19 	Section 1. Minnesota Statutes 2022, section 13.10, subdivision 5, is amended to read:
150.20 		Subd. 5.Adoption records. Notwithstanding any provision of this or any other chapter, 
150.21 	adoption records shall be treated as provided in sections 259.53, 259.61, 259.79, and 259.83
150.22 	to 259.89 259.88.

150.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

150.24 	Sec. 2. Minnesota Statutes 2022, section 13.465, subdivision 8, is amended to read:
150.25 		Subd. 8.Adoption records. Various adoption records are classified under section 259.53, 
150.26 	subdivision 1. Access to the original birth record of a person who has been adopted is 
150.27 	governed by section 259.89 144.2252.

150.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

151.1 	Sec. 3. Minnesota Statutes 2022, section 16A.151, subdivision 2, is amended to read:
151.2 		Subd. 2.Exceptions. (a) If a state official litigates or settles a matter on behalf of specific 
151.3 	injured persons or entities, this section does not prohibit distribution of money to the specific 
151.4 	injured persons or entities on whose behalf the litigation or settlement efforts were initiated. 
151.5 	If money recovered on behalf of injured persons or entities cannot reasonably be distributed 
151.6 	to those persons or entities because they cannot readily be located or identified or because 
151.7 	the cost of distributing the money would outweigh the benefit to the persons or entities, the 
151.8 	money must be paid into the general fund.
151.9 	(b) Money recovered on behalf of a fund in the state treasury other than the general fund 
151.10 	may be deposited in that fund.
151.11 	(c) This section does not prohibit a state official from distributing money to a person or 
151.12 	entity other than the state in litigation or potential litigation in which the state is a defendant 
151.13 	or potential defendant.
151.14 	(d) State agencies may accept funds as directed by a federal court for any restitution or 
151.15 	monetary penalty under United States Code, title 18, section 3663(a)(3), or United States 
151.16 	Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue 
151.17 	account and are appropriated to the commissioner of the agency for the purpose as directed 
151.18 	by the federal court.
151.19 	(e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph 
151.20 	(t), may be deposited as provided in section 16A.98, subdivision 12.
151.21 	(f) Any money received by the state resulting from a settlement agreement or an assurance 
151.22 	of discontinuance entered into by the attorney general of the state, or a court order in litigation 
151.23 	brought by the attorney general of the state, on behalf of the state or a state agency, related 
151.24 	to alleged violations of consumer fraud laws in the marketing, sale, or distribution of opioids 
151.25 	in this state or other alleged illegal actions that contributed to the excessive use of opioids, 
151.26 	must be deposited in the settlement account established in the opiate epidemic response 
151.27 	fund under section 256.043, subdivision 1. This paragraph does not apply to attorney fees 
151.28 	and costs awarded to the state or the Attorney General's Office, to contract attorneys hired 
151.29 	by the state or Attorney General's Office, or to other state agency attorneys.
151.30 	(g) Notwithstanding paragraph (f), if money is received from a settlement agreement or 
151.31 	an assurance of discontinuance entered into by the attorney general of the state or a court 
151.32 	order in litigation brought by the attorney general of the state on behalf of the state or a state 
151.33 	agency against a consulting firm working for an opioid manufacturer or opioid wholesale 
151.34 	drug distributor, the commissioner shall deposit any money received into the settlement 
152.1 	account established within the opiate epidemic response fund under section 256.042, 
152.2 	subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a), any amount 
152.3 	deposited into the settlement account in accordance with this paragraph shall be appropriated 
152.4 	to the commissioner of human services to award as grants as specified by the opiate epidemic 
152.5 	response advisory council in accordance with section 256.043, subdivision 3a, paragraph 
152.6 	(d).
152.7 	(h) Any money received by the state resulting from a settlement agreement or an assurance 
152.8 	of discontinuance entered into by the attorney general of the state, or a court order in litigation 
152.9 	brought by the attorney general of the state on behalf of the state or a state agency related 
152.10 	to alleged violations of consumer fraud laws in the marketing, sale, or distribution of 
152.11 	electronic nicotine delivery systems in this state or other alleged illegal actions that 
152.12 	contributed to the exacerbation of youth nicotine use, must be deposited in the  tobacco use 
152.13 	prevention account under section 144.398. This paragraph does not apply to: (1) attorney 
152.14 	fees and costs awarded or paid to the state or the Attorney General's Office; (2) contract 
152.15 	attorneys hired by the state or Attorney General's Office; or (3) other state agency attorneys.

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

152.17 	Sec. 4. Minnesota Statutes 2022, section 103I.005, subdivision 17a, is amended to read:
152.18 		Subd. 17a.Temporary boring Submerged closed-loop heat exchanger. "Temporary 
152.19 	boring" "Submerged closed-loop heat exchanger" means an excavation that is 15 feet or 
152.20 	more in depth, is sealed within 72 hours of the time of construction, and is drilled, cored, 
152.21 	washed, driven, dug, jetted, or otherwise constructed to a heating and cooling system that:
152.22 	(1) conduct physical, chemical, or biological testing of groundwater, including 
152.23 	groundwater quality monitoring is installed in a water supply well;
152.24 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
152.25 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
152.26 	resistance utilizes the convective flow of groundwater as the primary medium of heat 
152.27 	exchange;
152.28 	(3) measure groundwater levels, including use of a piezometer contains potable water 
152.29 	as the heat transfer fluid; and
152.30 	(4) determine groundwater flow direction or velocity is operated using nonconsumptive 
152.31 	recirculation.
152.32 	A submerged closed-loop heat exchanger also includes submersible pumps, a heat exchanger 
152.33 	device, piping, and other necessary appurtenances.

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

153.2 	Sec. 5. Minnesota Statutes 2022, section 103I.005, is amended by adding a subdivision 
153.3 	to read:
153.4 		Subd. 17b.Temporary boring. "Temporary boring" means an excavation that is 15 
153.5 	feet or more in depth; is sealed within 72 hours of the time of construction; and is drilled, 
153.6 	cored, washed, driven, dug, jetted, or otherwise constructed to:
153.7 	(1) conduct physical, chemical, or biological testing of groundwater, including 
153.8 	groundwater quality monitoring;
153.9 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
153.10 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
153.11 	resistance;
153.12 	(3) measure groundwater levels, including use of a piezometer; and
153.13 	(4) determine groundwater flow direction or velocity.

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

153.15 	Sec. 6. Minnesota Statutes 2022, section 103I.005, subdivision 20a, is amended to read:
153.16 		Subd. 20a.Water supply well. "Water supply well" means a well that is not a dewatering 
153.17 	well or environmental well and includes wells used:
153.18 	(1) for potable water supply;
153.19 	(2) for irrigation;
153.20 	(3) for agricultural, commercial, or industrial water supply;
153.21 	(4) for heating or cooling; and
153.22 	(5) for containing a submerged closed-loop heat exchanger; and
153.23 	(6) for testing water yield for irrigation, commercial or industrial uses, residential supply, 
153.24 	or public water supply.

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

153.26 	Sec. 7. Minnesota Statutes 2022, section 103I.208, subdivision 2, is amended to read:
153.27 		Subd. 2.Permit fee. The permit fee to be paid by a property owner is:
153.28 	(1) for a water supply well that is not in use under a maintenance permit, $175 annually;
154.1 	(2) for an environmental well that is unsealed under a maintenance permit, $175 annually 
154.2 	except no fee is required for an environmental well owned by a federal agency, state agency, 
154.3 	or local unit of government that is unsealed under a maintenance permit. "Local unit of 
154.4 	government" means a statutory or home rule charter city, town, county, or soil and water 
154.5 	conservation district, watershed district, an organization formed for the joint exercise of 
154.6 	powers under section 471.59, a community health board, or other special purpose district 
154.7 	or authority with local jurisdiction in water and related land resources management;
154.8 	(3) for environmental wells that are unsealed under a maintenance permit, $175 annually 
154.9 	per site regardless of the number of environmental wells located on site;
154.10 	(4) for a groundwater thermal exchange device, in addition to the notification fee for 
154.11 	water supply wells, $275, which includes the state core function fee;
154.12 	(5) for a bored geothermal heat exchanger with less than ten tons of heating/cooling 
154.13 	capacity, $275;
154.14 	(6) for a bored geothermal heat exchanger with ten to 50 tons of heating/cooling capacity, 
154.15 	$515;
154.16 	(7) for a bored geothermal heat exchanger with greater than 50 tons of heating/cooling 
154.17 	capacity, $740;
154.18 	(8) for a dewatering well that is unsealed under a maintenance permit, $175 annually 
154.19 	for each dewatering well, except a dewatering project comprising more than five dewatering 
154.20 	wells shall be issued a single permit for $875 annually for dewatering wells recorded on 
154.21 	the permit; and
154.22 	(9) for an elevator boring, $275 for each boring; and
154.23 	(10) for a submerged closed loop heat exchanger, in addition to the notification fee for 
154.24 	water supply wells, $275, which includes the state core function fee.

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

154.26 	Sec. 8. [103I.209] SUBMERGED CLOSED LOOP HEAT EXCHANGER SYSTEM; 
154.27 	REQUIREMENTS.
154.28 		Subdivision 1.Permit required. After the effective date of this act, a person must not 
154.29 	install a submerged closed loop heat exchanger in a water supply well without a permit 
154.30 	granted by the commissioner as provided in section 103I.210. A submerged closed loop 
154.31 	heat exchanger system approved by a variance granted by the commissioner prior to the 
155.1 	effective date of this act may continue to operate without obtaining a permit under this 
155.2 	section or section 103I.210.
155.3 		Subd. 2.Setbacks. A water supply well containing a submerged closed-loop heat 
155.4 	exchanger that is used for the sole purpose of heating and cooling and does not remove 
155.5 	water from an aquifer is exempt from the isolation distance requirements of Minnesota 
155.6 	Rules, part 4725.4450, or a successor rule on the same topic, and in no instance will the 
155.7 	setback distance be greater than ten feet. A water supply well that does not comply with the 
155.8 	isolation distance requirements of Minnesota Rules, part 4725.4450, must not be used for 
155.9 	any other water supply well purpose.
155.10 		Subd. 3.Construction. (a) A water supply well constructed to house a submerged closed 
155.11 	loop heat exchanger must be constructed by a licensed well contractor, and the submerged 
155.12 	closed loop heat exchanger must be installed by a licensed well contractor.
155.13 	(b) The screened interval of a water supply well constructed to contain a submerged 
155.14 	closed loop heat exchanger completed within a single aquifer may be designed and 
155.15 	constructed using any combination of screen, casing, leader, riser, sump, or other piping 
155.16 	combinations, so long as the screen configuration does not interconnect aquifers.
155.17 	(c) A water supply well used for a submerged closed loop heat exchanger must comply 
155.18 	with the requirements of chapter 103I and Minnesota Rules, chapter 4725.
155.19 		Subd. 4.Heat transfer fluid. Water used as heat transfer fluid must be sourced from a 
155.20 	potable supply. The heat transfer fluid may be amended with additives to inhibit corrosion 
155.21 	or microbial activity. Any additive used must be ANSI/NSF-60 certified.

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

155.23 	Sec. 9. [103I.210] SUBMERGED CLOSED LOOP HEAT EXCHANGER SYSTEM; 
155.24 	PERMITS.
155.25 		Subdivision 1.Definition. For purposes of this section, "permit holder" means persons 
155.26 	who receive a permit under this section and includes the property owner and licensed well 
155.27 	contractor.
155.28 		Subd. 2.Permit; limitations. (a) The commissioner must issue a permit for the 
155.29 	installation of a submerged closed loop heat exchanger system as provided in this section. 
155.30 	The property owner or the property owner's agent must submit to the commissioner a permit 
155.31 	application on a form provided by the commissioner, or in a format approved by the 
155.32 	commissioner. The application must be legible and must contain:
156.1 	(1) the name, license number, and signature of the well contractor installing the closed 
156.2 	loop heat exchangers;
156.3 	(2) the name, address, and signature of the owner of the property on which the device 
156.4 	will be installed;
156.5 	(3) the township number, range number, section, and one quartile, and the property street 
156.6 	address if assigned, of the proposed device location;
156.7 	(4) a description of existing wells to be utilized or any wells proposed to be constructed 
156.8 	including, the unique well numbers, locations, well depth, diameters of bore holes and 
156.9 	casing, depth of casing, grouting methods and materials, and dates of construction;
156.10 	(5) the specifications for piping including the materials to be used for piping, the closed 
156.11 	loop water treatment protocol, and the provisions for pressure testing the system; and
156.12 	(6) a diagram of the proposed system.
156.13 	(b) The fees collected under this subdivision must be deposited in the state government 
156.14 	special revenue fund.
156.15 	(c) Permit holders must allow for the inspection of the submerged closed loop heat 
156.16 	exchanger system by the commissioner during working hours.
156.17 	(d) If a permit application contains all of the information required in paragraph (a) and 
156.18 	for which the technical specifications are consistent with the requirements of paragraph (a), 
156.19 	the commissioner may only deny the permit if the commissioner determines that the proposed 
156.20 	submerged closed loop heat exchanger system creates a new material risk to human health 
156.21 	and the environment by adversely affecting the migration of an existing groundwater 
156.22 	contamination plume.
156.23 	(e) Within 30 days of submission of a complete permit application, the commissioner 
156.24 	must either issue the permit or notify the applicant that the commissioner has determined 
156.25 	that the proposed submerged closed loop heat exchanger system may create a material risk 
156.26 	to human health and the environment by adversely affecting the migration of an existing 
156.27 	groundwater plume. If the commissioner determines the system may create a material risk, 
156.28 	the commissioner must make a final determination as to whether the proposed system poses 
156.29 	such material risk within 30 days after initial notice is provided to the applicant. The 
156.30 	commissioner may extend this 30-day period with the consent of the applicant. An application 
156.31 	is deemed to have been granted if the commissioner fails to notify the applicant that the 
156.32 	commissioner has determined that the proposed submerged closed loop heat exchanger 
156.33 	system may create a material risk to human health and the environment by adversely affecting 
157.1 	the migration of an existing groundwater within 30 days of submission of a complete 
157.2 	application or if the commissioner fails to make a final determination regarding such potential 
157.3 	material risks within 30 days after notifying the applicant.
157.4 	(f) The commissioner must not limit the number of permits available or the size of 
157.5 	systems. A project may consist of more than one submerged closed loop heat exchanger. 
157.6 	Installing a submerged closed loop heat exchanger must not be subject to additional review 
157.7 	or requirements with regards to the construction of a water supply well, beyond the 
157.8 	requirements promulgated in chapter 103I, and Minnesota Rules, chapter 4725. A variance 
157.9 	is not required to install or operate a submerged closed loop heat exchanger.
157.10 	(g) Permit holders must comply with this chapter, and Minnesota Rules, chapter 4725.
157.11 	(h) A permit holder must inform the Minnesota duty officer of the failure or leak of a 
157.12 	submerged closed loop heat exchanger.
157.13 		Subd. 3.Permit conditions. Permit holders must construct, install, operate, maintain, 
157.14 	and report on the submerged closed loop heat exchanger system to comply with permit 
157.15 	conditions identified by the commissioner, which will address:
157.16 	(1) notification to the commissioner at intervals specified in the permit conditions;
157.17 	(2) material and design specifications and standards;
157.18 	(3) heat exchange fluid requirements;
157.19 	(4) signage requirements;
157.20 	(5) backflow prevention requirements;
157.21 	(6) pressure tests of the system;
157.22 	(7) documentation of the system construction;
157.23 	(8) requirements for maintenance and repair of the system;
157.24 	(9) removal of the system upon termination of use or failure;
157.25 	(10) disclosure of the system at the time of property transfer; and
157.26 	(11) requirement to obtain approval from the commissioner prior to deviation of the 
157.27 	approved plans and conditions of the permit.

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

158.1 	Sec. 10. Minnesota Statutes 2022, section 121A.335, subdivision 3, is amended to read:
158.2 		Subd. 3.Frequency of testing. (a) The plan under subdivision 2 must include a testing 
158.3 	schedule for every building serving prekindergarten through grade 12 students. The schedule 
158.4 	must require that each building be tested at least once every five years. A school district or 
158.5 	charter school must begin testing school buildings by July 1, 2018, and complete testing of 
158.6 	all buildings that serve students within five years.
158.7 	(b) A school district or charter school that finds lead at a specific location providing 
158.8 	cooking or drinking water within a facility must formulate, make publicly available, and 
158.9 	implement a plan that is consistent with established guidelines and recommendations to 
158.10 	ensure that student exposure to lead is minimized. This includes, when a school district or 
158.11 	charter school finds the presence of lead at a level where action should be taken as set by 
158.12 	the guidance in any water source that can provide cooking or drinking water, immediately 
158.13 	shutting off the water source or making it unavailable until the hazard has been minimized.

158.14 	Sec. 11. Minnesota Statutes 2022, section 121A.335, subdivision 5, is amended to read:
158.15 		Subd. 5.Reporting. (a) A school district or charter school that has tested its buildings 
158.16 	for the presence of lead shall make the results of the testing available to the public for review 
158.17 	and must directly notify parents annually of the availability of the information. School 
158.18 	districts and charter schools must follow the actions outlined in guidance from the 
158.19 	commissioners of health and education. If a test conducted under subdivision 3, paragraph 
158.20 	(a), reveals the presence of lead above a level where action should be taken as set by the 
158.21 	guidance, the school district or charter school must, within 30 days of receiving the test 
158.22 	result, either remediate the presence of lead to below the level set in guidance, verified by 
158.23 	retest, or directly notify parents of the test result. The school district or charter school must 
158.24 	make the water source unavailable until the hazard has been minimized.
158.25 	(b) Results of testing, and any planned remediation steps, shall be made available within 
158.26 	30 days of receiving results.
158.27 	(c) A school district or charter school that has tested for lead in drinking water shall 
158.28 	report the results of testing, and any planned remediation steps to the school board at the 
158.29 	next available school board meeting or within 30 days of receiving results, whichever is 
158.30 	sooner.
158.31 	(d) The school district or charter school shall maintain records of lead testing in drinking 
158.32 	water records electronically or by paper copy for at least 15 years.
159.1 	(e) Beginning July 1, 2024, school districts and charter schools must report their test 
159.2 	results and remediation activities to the commissioner of health annually on or before July 
159.3 	1 of each year.

159.4 	Sec. 12. Minnesota Statutes 2022, section 121A.335, is amended by adding a subdivision 
159.5 	to read:
159.6 		Subd. 6.Remediation. (a) A school district or charter school that finds lead above five 
159.7 	parts per billion at a specific location providing cooking or drinking water within a facility 
159.8 	must formulate, make publicly available, and implement a plan to remediate the lead in 
159.9 	drinking water. The plan must be consistent with established guidelines and recommendations 
159.10 	to ensure exposure to lead is remediated.
159.11 	(b) When lead is found above five parts per billion the water fixture shall immediately 
159.12 	be shut off or made unavailable for consumption until the hazard has been minimized as 
159.13 	verified by a test.
159.14 	(c) If the school district or charter school receives water from a public water supply that 
159.15 	has an action level exceedance of the federal Lead and Copper Rule, it may delay remediation 
159.16 	activities until the public water system meets state and federal requirements for the Lead 
159.17 	and Copper Rule. If the school district or charter school receives water from a lead service 
159.18 	line or other lead infrastructure owned by the public water supply, the school district may 
159.19 	delay remediation of fixtures until the lead service line is fully replaced. The school must 
159.20 	ensure that any fixture testing above five parts per billion is not used for consumption until 
159.21 	remediation activities are complete.

159.22 	Sec. 13. Minnesota Statutes 2022, section 144.05, is amended by adding a subdivision to 
159.23 	read:
159.24 		Subd. 8.Grant program reporting. The commissioner must submit a report to the 
159.25 	chairs and ranking minority members of the legislative committees with jurisdiction over 
159.26 	health by December 31, 2023, and by each December 31 thereafter on the following 
159.27 	information:
159.28 	(1) the number of grant programs administered by the commissioner that required a 
159.29 	full-time equivalent staff appropriation or administrative appropriation in order to implement;
159.30 	(2) the total amount of funds appropriated to the commissioner for full-time equivalent 
159.31 	staff or administration for all the grant programs; and
159.32 	(3) for each grant program administered by the commissioner:
160.1 	(i) the amount of funds appropriated to the commissioner for full-time equivalent staff 
160.2 	or administration to administer that particular grant program;
160.3 	(ii) the actual amount of funds that were spent on full-time equivalent staff or 
160.4 	administration to administer that particular grant program; and
160.5 	(iii) if there were funds appropriated that were not spent on full-time equivalent staff or 
160.6 	administration to administer that particular grant program, what the funds were actually 
160.7 	spent on.

160.8 	Sec. 14. [144.0526] MINNESOTA ONE HEALTH ANTIMICROBIAL 
160.9 	STEWARDSHIP COLLABORATIVE.
160.10 		Subdivision 1.Establishment. The commissioner of health shall establish the Minnesota 
160.11 	One Health Antimicrobial Stewardship Collaborative. The director shall serve in the 
160.12 	unclassified service. The commissioner shall appoint a director to execute operations, 
160.13 	conduct health education, and provide technical assistance.
160.14 		Subd. 2.Commissioner's duties. The commissioner of health shall oversee a program 
160.15 	to:
160.16 	(1) maintain the position of director of One Health Antimicrobial Stewardship to lead 
160.17 	state antimicrobial stewardship initiatives across human, animal, and environmental health;
160.18 	(2) communicate to professionals and the public the interconnectedness of human, animal, 
160.19 	and environmental health, especially related to preserving the efficacy of antibiotic 
160.20 	medications, which are a shared resource;
160.21 	(3) leverage new and existing partnerships. The commissioner of health shall consult 
160.22 	and collaborate with organizations and agencies in fields including but not limited to health 
160.23 	care, veterinary medicine, animal agriculture, academic institutions, and industry and 
160.24 	community organizations to inform strategies for education, practice improvement, and 
160.25 	research in all settings where antimicrobials are used;
160.26 	(4) ensure that veterinary settings have education and strategies needed to practice 
160.27 	appropriate antibiotic prescribing, implement clinical antimicrobial stewardship programs, 
160.28 	and prevent transmission of antimicrobial-resistant microbes; and
160.29 	(5) support collaborative research and programmatic initiatives to improve the 
160.30 	understanding of the impact of antimicrobial use and resistance in the natural environment.
160.31 		Subd. 3.Annual report. The commissioner of health shall report annually by January 
160.32 	15 to the chairs and ranking minority members of the legislative committees with primary 
161.1 	jurisdiction over health policy and finance on the work accomplished by the commissioner 
161.2 	and the collaborative research in the previous year and describe goals for the following year.

161.3 	Sec. 15. [144.0701] SPECIAL GUERILLA UNIT VETERANS GRANT PROGRAM.
161.4 		Subdivision 1.Establishment. The commissioner of health must establish a grant 
161.5 	program to offer culturally specific and specialized assistance to support the health and 
161.6 	well-being of special guerilla unit veterans.
161.7 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
161.8 	must be a nonprofit organization or a nongovernmental organization that offers culturally 
161.9 	specific and specialized assistance to support the health and well-being of special guerilla 
161.10 	unit veterans.
161.11 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
161.12 	the commissioner at a time and in a manner specified by the commissioner.
161.13 		Subd. 4.Grant activities. Grant funds must be used to offer programming and culturally 
161.14 	specific and specialized assistance to support the health and well-being of special guerilla 
161.15 	unit veterans.

161.16 	Sec. 16. [144.0752] CULTURAL COMMUNICATIONS.
161.17 		Subdivision 1.Establishment. The commissioner of health shall establish:
161.18 	(1) a cultural communications program that advances culturally and linguistically 
161.19 	appropriate communication services for communities most impacted by health disparities 
161.20 	which includes limited English proficient (LEP) populations, African American, LGBTQ+, 
161.21 	and people with disabilities; and
161.22 	(2) a position that works with department leadership and division to ensure that the 
161.23 	department follows the National Standards for Culturally and Linguistically Appropriate 
161.24 	Services (CLAS) Standards.
161.25 		Subd. 2.Commissioner's duties. The commissioner of health shall oversee a program 
161.26 	to:
161.27 	(1) align the department services, policies, procedures, and governance with the National 
161.28 	CLAS Standards and establish culturally and linguistically appropriate goals, policies, and 
161.29 	management accountability and apply them throughout the organization's planning and 
161.30 	operations;
162.1 	(2) ensure the department services respond to the cultural and linguistic diversity of 
162.2 	Minnesotans and that the department partners with the community to design, implement, 
162.3 	and evaluate policies, practices, and services that are aligned with the national cultural and 
162.4 	linguistic appropriateness standard; and
162.5 	(3) ensure the department leadership, workforce, and partners embed culturally and 
162.6 	linguistically appropriate policies and practices into leadership and public health program 
162.7 	planning, intervention, evaluation, and dissemination.
162.8 		Subd. 3.Eligible contractors. Organizations eligible to receive contract funding under 
162.9 	this section include:
162.10 	(1) master contractors that are selected through the state to provide language and 
162.11 	communication services; and
162.12 	(2) organizations that are able to provide services for languages that master contracts 
162.13 	are unable to cover.

162.14 	Sec. 17. [144.0754] OFFICE OF AFRICAN AMERICAN HEALTH; DUTIES.
162.15 	(a) The commissioner shall establish the Office of African American Health to address 
162.16 	the unique public health needs of African American Minnesotans. The office must work to 
162.17 	develop solutions and systems to address identified health disparities of African American 
162.18 	Minnesotans arising from a context of cumulative and historical discrimination and 
162.19 	disadvantages in multiple systems, including but not limited to housing, education, 
162.20 	employment, gun violence, incarceration, environmental factors, and health care 
162.21 	discrimination. The office shall:
162.22 	(1) convene the African American Health State Advisory Council under section 144.0755 
162.23 	to advise the commissioner on issues and to develop specific, targeted policy solutions to 
162.24 	improve the health of African American Minnesotans, with a focus on United States born 
162.25 	African Americans;
162.26 	(2) based upon input from and collaboration with the African American Health State 
162.27 	Advisory Council, health indicators, and identified disparities, conduct analysis and develop 
162.28 	policy and program recommendations and solutions targeted at improving African American 
162.29 	health outcomes;
162.30 	(3) coordinate and conduct community engagement across multiple systems, sectors, 
162.31 	and communities to address racial disparities in labor force participation, educational 
162.32 	achievement, and involvement with the criminal justice system that impact African American 
162.33 	health and well-being;
163.1 	(4) conduct data analysis and research to support policy goals and solutions;
163.2 	(5) award and administer African American health special emphasis grants to health and 
163.3 	community-based organizations to plan and develop programs targeted at improving African 
163.4 	American health outcomes, based upon needs identified by the council, health indicators, 
163.5 	and identified disparities and addressing historical trauma and systems of United States 
163.6 	born African American Minnesotans; and
163.7 	(6) develop and administer Department of Health immersion experiences for students 
163.8 	in secondary education and community colleges to improve diversity of the public health 
163.9 	workforce and introduce career pathways that contribute to reducing health disparities.
163.10 	(b) The commissioner of health shall report annually by January 15 to the chairs and 
163.11 	ranking minority members of the legislative committees with primary jurisdiction over 
163.12 	health policy and finance on the work accomplished by the Office of African American 
163.13 	Health during the previous year and describe goals for the following year.

163.14 	Sec. 18. [144.0755] AFRICAN AMERICAN HEALTH STATE ADVISORY 
163.15 	COUNCIL.
163.16 		Subdivision 1.Members. (a) The African American Health State Advisory Council 
163.17 	shall include no fewer than 12 or more than 20 members from any of the following groups:
163.18 	(1) representatives of community-based organizations serving or advocating for African 
163.19 	American citizens;
163.20 	(2) at-large community leaders or elders, as nominated by other council members;
163.21 	(3) African American individuals who provide and receive health care services;
163.22 	(4) African American secondary or college students;
163.23 	(5) health or human service professionals serving African American communities or 
163.24 	clients;
163.25 	(6) representatives with research or academic expertise in racial equity; and
163.26 	(7) other members that the commissioner deems appropriate to facilitate the goals and 
163.27 	duties of the council.
163.28 	(b) The commissioner shall make recommendations for council membership and, after 
163.29 	considering recommendations from the council, shall appoint a chair or chairs of the council. 
163.30 	Council members shall be appointed by the governor.
164.1 		Subd. 2.Terms. A term shall be for two years and appointees may be reappointed to 
164.2 	serve two additional terms. The commissioner shall recommend appointments to replace 
164.3 	members vacating their positions in a timely manner, no more than three months after the 
164.4 	council reviews panel recommendations.
164.5 		Subd. 3.Duties of commissioner. The commissioner or commissioner's designee shall:
164.6 	(1) maintain and actively engage with the council established in this section;
164.7 	(2) based on recommendations of the council, review identified department or other 
164.8 	related policies or practices that maintain health inequities and disparities that particularly 
164.9 	affect African Americans in Minnesota;
164.10 	(3) in partnership with the council, recommend or implement action plans and resources 
164.11 	necessary to address identified disparities and advance African American health equity;
164.12 	(4) support interagency collaboration to advance African American health equity; and
164.13 	(5) support member participation in the council, including participation in educational 
164.14 	and community engagement events across Minnesota that specifically address African 
164.15 	American health equity.
164.16 		Subd. 4.Duties of council. The council shall:
164.17 	(1) identify health disparities found in African American communities and contributing 
164.18 	factors;
164.19 	(2) recommend to the commissioner for review any statutes, rules, or administrative 
164.20 	policies or practices that would address African American health disparities;
164.21 	(3) recommend policies and strategies to the commissioner of health to address disparities 
164.22 	specifically affecting African American health;
164.23 	(4) form work groups of council members who are persons who provide and receive 
164.24 	services and representatives of advocacy groups;
164.25 	(5) provide the work groups with clear guidelines, standardized parameters, and tasks 
164.26 	for the work groups to accomplish; and
164.27 	(6) annually submit to the commissioner and to the chairs and ranking minority members 
164.28 	of the legislative committees with primary jurisdiction over health policy and finance a 
164.29 	report that summarizes the activities of the council, identifies disparities specially affecting 
164.30 	the health of African American Minnesotans, and makes recommendations to address 
164.31 	identified disparities.
165.1 		Subd. 5.Duties of council members. The members of the council shall:
165.2 	(1) attend scheduled meetings with no more than three absences per year, participate in 
165.3 	scheduled meetings, and prepare for meetings by reviewing meeting notes;
165.4 	(2) maintain open communication channels with respective constituencies;
165.5 	(3) identify and communicate issues and risks that may impact the timely completion 
165.6 	of tasks;
165.7 	(4) participate in any activities the council or commissioner deems appropriate and 
165.8 	necessary to facilitate the goals and duties of the council; and
165.9 	(5) participate in work groups to carry out council duties.
165.10 		Subd. 6.Staffing; office space; equipment. The commissioner shall provide the advisory 
165.11 	council with staff support, office space, and access to office equipment and services.
165.12 		Subd. 7.Reimbursement. Compensation or reimbursement for travel and expenses, or 
165.13 	both, incurred for council activities is governed in accordance with section 15.059, 
165.14 	subdivision 3.

165.15 	Sec. 19. [144.0756] AFRICAN AMERICAN HEALTH SPECIAL EMPHASIS GRANT 
165.16 	PROGRAM.
165.17 		Subdivision 1.Establishment. The commissioner of health shall establish the African 
165.18 	American health special emphasis grant program administered by the Office of African 
165.19 	American Health. The purposes of the program are to:
165.20 	(1) identify disparities impacting African American health arising from cumulative and 
165.21 	historical discrimination and disadvantages in multiple systems, including but not limited 
165.22 	to housing, education, employment, gun violence, incarceration, environmental factors, and 
165.23 	health care discrimination; and
165.24 	(2) develop community-based solutions that incorporate a multisector approach to 
165.25 	addressing identified disparities impacting African American health.
165.26 		Subd. 2.Requests for proposals; accountability; data collection. As directed by the 
165.27 	commissioner of health, the Office of African American Health shall:
165.28 	(1) develop a request for proposals for an African American health special emphasis 
165.29 	grant program in consultation with community stakeholders;
165.30 	(2) provide outreach, technical assistance, and program development guidance to potential 
165.31 	qualifying organizations or entities;
166.1 	(3) review responses to requests for proposals in consultation with community 
166.2 	stakeholders and award grants under this section;
166.3 	(4) establish a transparent and objective accountability process in consultation with 
166.4 	community stakeholders, focused on outcomes that grantees agree to achieve;
166.5 	(5) provide grantees with access to summary and other public data to assist grantees in 
166.6 	establishing and implementing effective community-led solutions; and
166.7 	(6) collect and maintain data on outcomes reported by grantees.
166.8 		Subd. 3.Eligible grantees. Organizations eligible to receive grant funding under this 
166.9 	section include nonprofit organizations or entities that work with African American 
166.10 	communities or are focused on addressing disparities impacting the health of African 
166.11 	American communities.
166.12 		Subd. 4.Strategic consideration and priority of proposals; grant awards. In 
166.13 	developing the requests for proposals and awarding the grants, the commissioner and the 
166.14 	Office of African American Health shall consider building upon the existing capacity of 
166.15 	communities and on developing capacity where it is lacking. Proposals shall focus on 
166.16 	addressing health equity issues specific to United States born African American communities; 
166.17 	addressing the health impact of historical trauma; and reducing health disparities experienced 
166.18 	by United States born African American communities; and incorporating a multisector 
166.19 	approach to addressing identified disparities.
166.20 		Subd. 5.Report. Grantees must report grant program outcomes to the commissioner on 
166.21 	the forms and according to timelines established by the commissioner.

166.22 	Sec. 20. [144.0757] OFFICE OF AMERICAN INDIAN HEALTH.
166.23 		Subdivision 1.Duties. The Office of American Indian Health is established to address 
166.24 	unique public health needs of American Indian Tribal communities in Minnesota. The office 
166.25 	shall:
166.26 	(1) coordinate with Minnesota's Tribal Nations and urban American Indian 
166.27 	community-based organizations to identify underlying causes of health disparities, address 
166.28 	unique health needs of Minnesota's Tribal communities, and develop public health approaches 
166.29 	to achieve health equity;
166.30 	(2) strengthen capacity of American Indian and community-based organizations and 
166.31 	Tribal Nations to address identified health disparities and needs;
167.1 	(3) administer state and federal grant funding opportunities targeted to improve the 
167.2 	health of American Indians;
167.3 	(4) provide overall leadership for targeted development of holistic health and wellness 
167.4 	strategies to improve health and to support Tribal and urban American Indian public health 
167.5 	leadership and self-sufficiency;
167.6 	(5) provide technical assistance to Tribal and American Indian urban community leaders 
167.7 	to develop culturally appropriate activities to address public health emergencies;
167.8 	(6) develop and administer the department immersion experiences for American Indian 
167.9 	students in secondary education and community colleges to improve diversity of the public 
167.10 	health workforce and introduce career pathways that contribute to reducing health disparities; 
167.11 	and
167.12 	(7) identify and promote workforce development strategies for Department of Health 
167.13 	staff to work with the American Indian population and Tribal Nations more effectively in 
167.14 	Minnesota.
167.15 		Subd. 2.Grants and contracts. To carry out these duties, the office may contract with 
167.16 	or provide grants to qualifying entities.
167.17 		Subd. 3.Reporting. The person appointed to head the Office of American Indian Health 
167.18 	must report annually by January 15 to the chairs and ranking minority members of the 
167.19 	legislative committees with primary jurisdiction over health policy and finance on the work 
167.20 	of the office during the previous year and the goals for the office for the following year.

167.21 	Sec. 21. [144.0758] AMERICAN INDIAN SPECIAL EMPHASIS GRANTS.
167.22 		Subdivision 1.Establishment. The commissioner of health shall establish the American 
167.23 	Indian health special emphasis grant program. The purposes of the program are to:
167.24 	(1) plan and develop programs targeted to address continuing and persistent health 
167.25 	disparities of Minnesota's American Indian population and improve American Indian health 
167.26 	outcomes based upon needs identified by health indicators and identified disparities;
167.27 	(2) identify disparities in American Indian health arising from cumulative and historical 
167.28 	discrimination; and
167.29 	(3) plan and develop community-based solutions with a multisector approach to 
167.30 	addressing identified disparities in American Indian health.
167.31 		Subd. 2.Commissioner's duties. The commissioner of health shall:
168.1 	(1) develop a request for proposals for an American Indian special emphasis grant 
168.2 	program in consultation with Minnesota's Tribal Nations and urban American Indian 
168.3 	community-based organizations based upon needs identified by the community, health 
168.4 	indicators, and identified disparities;
168.5 	(2) provide outreach, technical assistance, and program development guidance to potential 
168.6 	qualifying organizations or entities;
168.7 	(3) review responses to requests for proposals in consultation with community 
168.8 	stakeholders and award grants under this section;
168.9 	(4) establish a transparent and objective accountability process in consultation with 
168.10 	community stakeholders focused on outcomes that grantees agree to achieve;
168.11 	(5) provide grantees with access to data to assist grantees in establishing and 
168.12 	implementing effective community-led solutions; and
168.13 	(6) collect and maintain data on outcomes reported by grantees.
168.14 		Subd. 3.Eligible grantees. Organizations eligible to receive grant funding under this 
168.15 	section are Minnesota's Tribal Nations and urban American Indian community-based 
168.16 	organizations.
168.17 		Subd. 4.Strategic consideration and priority of proposals; grant awards. In 
168.18 	developing the proposals and awarding the grants, the commissioner shall consider building 
168.19 	upon the existing capacity of Minnesota's Tribal Nations and urban American Indian 
168.20 	community-based organizations and on developing capacity where it is lacking. Proposals 
168.21 	should focus on addressing health equity issues specific to Tribal and urban American Indian 
168.22 	communities; addressing the health impact of historical trauma; reducing health disparities 
168.23 	experienced by American Indian communities; and incorporating a multisector approach 
168.24 	to addressing identified disparities.
168.25 		Subd. 5.Report. Grantees must report grant program outcomes to the commissioner on 
168.26 	the forms and according to the timelines established by the commissioner.

168.27 	Sec. 22. [144.0759] PUBLIC HEALTH AMERICORPS.
168.28 	The commissioner may award a grant to a statewide, nonprofit organization to support 
168.29 	Public Health AmeriCorps members. The organization awarded the grant shall provide the 
168.30 	commissioner with any information needed by the commissioner to evaluate the program 
168.31 	in the form and at the timelines specified by the commissioner.

169.1 	Sec. 23. Minnesota Statutes 2022, section 144.122, is amended to read:
169.2 	144.122 LICENSE, PERMIT, AND SURVEY FEES.
169.3 	(a) The state commissioner of health, by rule, may prescribe procedures and fees for 
169.4 	filing with the commissioner as prescribed by statute and for the issuance of original and 
169.5 	renewal permits, licenses, registrations, and certifications issued under authority of the 
169.6 	commissioner. The expiration dates of the various licenses, permits, registrations, and 
169.7 	certifications as prescribed by the rules shall be plainly marked thereon. Fees may include 
169.8 	application and examination fees and a penalty fee for renewal applications submitted after 
169.9 	the expiration date of the previously issued permit, license, registration, and certification. 
169.10 	The commissioner may also prescribe, by rule, reduced fees for permits, licenses, 
169.11 	registrations, and certifications when the application therefor is submitted during the last 
169.12 	three months of the permit, license, registration, or certification period. Fees proposed to 
169.13 	be prescribed in the rules shall be first approved by the Department of Management and 
169.14 	Budget. All fees proposed to be prescribed in rules shall be reasonable. The fees shall be 
169.15 	in an amount so that the total fees collected by the commissioner will, where practical, 
169.16 	approximate the cost to the commissioner in administering the program. All fees collected 
169.17 	shall be deposited in the state treasury and credited to the state government special revenue 
169.18 	fund unless otherwise specifically appropriated by law for specific purposes.
169.19 	(b) The commissioner may charge a fee for voluntary certification of medical laboratories 
169.20 	and environmental laboratories, and for environmental and medical laboratory services 
169.21 	provided by the department, without complying with paragraph (a) or chapter 14. Fees 
169.22 	charged for environment and medical laboratory services provided by the department must 
169.23 	be approximately equal to the costs of providing the services.
169.24 	(c) The commissioner may develop a schedule of fees for diagnostic evaluations 
169.25 	conducted at clinics held by the services for children with disabilities program. All receipts 
169.26 	generated by the program are annually appropriated to the commissioner for use in the 
169.27 	maternal and child health program.
169.28 	(d) The commissioner shall set license fees for hospitals and nursing homes that are not 
169.29 	boarding care homes at the following levels:

169.30
169.31
169.32
169.33	Joint Commission on Accreditation of 
Healthcare Organizations (JCAHO) and 
American Osteopathic Association (AOA) 
hospitals
	$7,655 plus $16 per bed
	
169.34	Non-JCAHO and non-AOA hospitals
	$5,280 plus $250 per bed
	
169.35169.36
170.1
170.2	Nursing home
	$183 plus $91 per bed until June 30, 2018. 
$183 plus $100 per bed between July 1, 2018, 
and June 30, 2020. $183 plus $105 per bed 
beginning July 1, 2020.
	
170.3 	The commissioner shall set license fees for outpatient surgical centers, boarding care 
170.4 	homes, supervised living facilities, assisted living facilities, and assisted living facilities 
170.5 	with dementia care at the following levels:

170.6	Outpatient surgical centers
	$3,712
	
170.7	Boarding care homes
	$183 plus $91 per bed
	
170.8	Supervised living facilities
	$183 plus $91 per bed.
	
170.9	Assisted living facilities with dementia care
	$3,000 plus $100 per resident.
	
170.10	Assisted living facilities
	$2,000 plus $75 per resident.
	
170.11 	Fees collected under this paragraph are nonrefundable. The fees are nonrefundable even if 
170.12 	received before July 1, 2017, for licenses or registrations being issued effective July 1, 2017, 
170.13 	or later.
170.14 	(e) Unless prohibited by federal law, the commissioner of health shall charge applicants 
170.15 	the following fees to cover the cost of any initial certification surveys required to determine 
170.16 	a provider's eligibility to participate in the Medicare or Medicaid program:

170.17	Prospective payment surveys for hospitals
	$
	900
	
170.18	Swing bed surveys for nursing homes
	$
	1,200
	
170.19	Psychiatric hospitals
	$
	1,400
	
170.20	Rural health facilities
	$
	1,100
	
170.21	Portable x-ray providers
	$
	500
	
170.22	Home health agencies
	$
	1,800
	
170.23	Outpatient therapy agencies
	$
	800
	
170.24	End stage renal dialysis providers
	$
	2,100
	
170.25	Independent therapists
	$
	800
	
170.26	Comprehensive rehabilitation outpatient facilities
	$
	1,200
	
170.27	Hospice providers
	$
	1,700
	
170.28	Ambulatory surgical providers
	$
	1,800
	
170.29	Hospitals
	$
	4,200
	
170.30
170.31
170.32	Other provider categories or additional
resurveys required to complete initial
certification
	Actual surveyor costs: average 
surveyor cost x number of hours for 
the survey process.
	
170.33 	These fees shall be submitted at the time of the application for federal certification and 
170.34 	shall not be refunded. All fees collected after the date that the imposition of fees is not 
170.35 	prohibited by federal law shall be deposited in the state treasury and credited to the state 
170.36 	government special revenue fund.
171.1 	(f) Notwithstanding section 16A.1283, the commissioner may adjust the fees assessed 
171.2 	on assisted living facilities and assisted living facilities with dementia care under paragraph 
171.3 	(d), in a revenue-neutral manner in accordance with the requirements of this paragraph:
171.4 	(1) a facility seeking to renew a license shall pay a renewal fee in an amount that is up 
171.5 	to ten percent lower than the applicable fee in paragraph (d) if residents who receive home 
171.6 	and community-based waiver services under chapter 256S and section 256B.49 comprise 
171.7 	more than 50 percent of the facility's capacity in the calendar year prior to the year in which 
171.8 	the renewal application is submitted; and
171.9 	(2) a facility seeking to renew a license shall pay a renewal fee in an amount that is up 
171.10 	to ten percent higher than the applicable fee in paragraph (d) if residents who receive home 
171.11 	and community-based waiver services under chapter 256S and section 256B.49 comprise 
171.12 	less than 50 percent of the facility's capacity during the calendar year prior to the year in 
171.13 	which the renewal application is submitted.
171.14 	The commissioner may annually adjust the percentages in clauses (1) and (2), to ensure this 
171.15 	paragraph is implemented in a revenue-neutral manner. The commissioner shall develop a 
171.16 	method for determining capacity thresholds in this paragraph in consultation with the 
171.17 	commissioner of human services and must coordinate the administration of this paragraph 
171.18 	with the commissioner of human services for purposes of verification.
171.19 	(g) The commissioner shall charge hospitals an annual licensing base fee of $1,826 per 
171.20 	hospital, plus an additional $23 per licensed bed or bassinet fee. Revenue shall be deposited 
171.21 	to the state government special revenue fund and credited toward trauma hospital designations 
171.22 	under sections 144.605 and 144.6071.

171.23 	Sec. 24. [144.1462] COMMUNITY HEALTH WORKERS; GRANTS AUTHORIZED.
171.24 		Subdivision 1.Establishment. The commissioner of health shall support collaboration 
171.25 	and coordination between state and community partners to develop, refine, and expand the 
171.26 	community health workers profession in Minnesota; equip community health workers to 
171.27 	address health needs; and to improve health outcomes. This work must address the social 
171.28 	conditions that impact community health and well-being in public safety, social services, 
171.29 	youth and family services, schools, and neighborhood associations.
171.30 		Subd. 2.Grants and contracts authorized; eligibility. The commissioner of health 
171.31 	shall award grants or enter into contracts to expand and strengthen the community health 
171.32 	worker workforce across Minnesota. The grant recipients or contractor shall include at least 
172.1 	one not-for-profit community organization serving, convening, and supporting community 
172.2 	health workers statewide.
172.3 		Subd. 3.Evaluation. The commissioner of health shall design, conduct, and evaluate 
172.4 	the community health worker initiative using measures such as workforce capacity, 
172.5 	employment opportunity, reach of services, and return on investment, as well as descriptive 
172.6 	measures of the existing community health worker models as they compare with the national 
172.7 	community health workers' landscape. These initial measures point to longer-term change 
172.8 	in social determinants of health and rates of death and injury by suicide, overdose, firearms, 
172.9 	alcohol, and chronic disease.
172.10 		Subd. 4.Report. Grant recipients and contractors must report program outcomes to the 
172.11 	department annually and by the guidelines established by the commissioner.

172.12 	Sec. 25. Minnesota Statutes 2022, section 144.218, subdivision 1, is amended to read:
172.13 		Subdivision 1.Adoption. Upon receipt of a certified copy of an order, decree, or 
172.14 	certificate of adoption, the state registrar shall register a replacement vital record in the new 
172.15 	name of the adopted person. The original record of birth is confidential private data pursuant 
172.16 	to section 13.02, subdivision 3 12, and shall not be disclosed except pursuant to court order 
172.17 	or section 144.2252. The information contained on the original birth record, except for the 
172.18 	registration number, shall be provided on request to a parent who is named on the original 
172.19 	birth record. Upon the receipt of a certified copy of a court order of annulment of adoption 
172.20 	the state registrar shall restore the original vital record to its original place in the file.

172.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

172.22 	Sec. 26. Minnesota Statutes 2022, section 144.218, subdivision 2, is amended to read:
172.23 		Subd. 2.Adoption of foreign persons. In proceedings for the adoption of a person who 
172.24 	was born in a foreign country, the court, upon evidence presented by the commissioner of 
172.25 	human services from information secured at the port of entry or upon evidence from other 
172.26 	reliable sources, may make findings of fact as to the date and place of birth and parentage. 
172.27 	Upon receipt of certified copies of the court findings and the order or decree of adoption, 
172.28 	a certificate of adoption, or a certified copy of a decree issued under section 259.60, the 
172.29 	state registrar shall register a birth record in the new name of the adopted person. The 
172.30 	certified copies of the court findings and the order or decree of adoption, certificate of 
172.31 	adoption, or decree issued under section 259.60 are confidential private data, pursuant to 
172.32 	section 13.02, subdivision 3 12, and shall not be disclosed except pursuant to court order 
173.1 	or section 144.2252. The birth record shall state the place of birth as specifically as possible 
173.2 	and that the vital record is not evidence of United States citizenship.

173.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

173.4 	Sec. 27. Minnesota Statutes 2022, section 144.225, subdivision 2, is amended to read:
173.5 		Subd. 2.Data about births. (a) Except as otherwise provided in this subdivision, data 
173.6 	pertaining to the birth of a child to a woman who was not married to the child's father when 
173.7 	the child was conceived nor when the child was born, including the original record of birth 
173.8 	and the certified vital record, are confidential data. At the time of the birth of a child to a 
173.9 	woman who was not married to the child's father when the child was conceived nor when 
173.10 	the child was born, the mother may designate demographic data pertaining to the birth as 
173.11 	public. Notwithstanding the designation of the data as confidential, it may be disclosed:
173.12 	(1) to a parent or guardian of the child;
173.13 	(2) to the child when the child is 16 years of age or older, except as provided in clause 
173.14 	(3);
173.15 	(3) to the child if the child is a homeless youth;
173.16 	(4) under paragraph (b), (e), or (f); or
173.17 	(5) pursuant to a court order. For purposes of this section, a subpoena does not constitute 
173.18 	a court order.
173.19 	(b) Unless the child is adopted, Data pertaining to the birth of a child that are not 
173.20 	accessible to the public become public data if 100 years have elapsed since the birth of the 
173.21 	child who is the subject of the data, or as provided under section 13.10, whichever occurs 
173.22 	first.
173.23 	(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions 
173.24 	relating to adoption and birth records, including sections 13.10, subdivision 5; 144.218, 
173.25 	subdivision 1; and 144.2252; and 259.89.
173.26 	(d) The name and address of a mother under paragraph (a) and the child's date of birth 
173.27 	may be disclosed to the county social services, Tribal health department, or public health 
173.28 	member of a family services collaborative for purposes of providing services under section 
173.29 	124D.23.
173.30 	(e) The commissioner of human services shall have access to birth records for:
173.31 	(1) the purposes of administering medical assistance and the MinnesotaCare program;
174.1 	(2) child support enforcement purposes; and
174.2 	(3) other public health purposes as determined by the commissioner of health.
174.3 	(f) Tribal child support programs shall have access to birth records for child support 
174.4 	enforcement purposes.

174.5 	EFFECTIVE DATE. This section is effective July 1, 2024.

174.6 	Sec. 28. Minnesota Statutes 2022, section 144.2252, is amended to read:
174.7 	144.2252 ACCESS TO ORIGINAL BIRTH RECORD AFTER ADOPTION.
174.8 		Subdivision 1.Definitions. (a) Whenever an adopted person requests the state registrar 
174.9 	to disclose the information on the adopted person's original birth record, the state registrar 
174.10 	shall act according to section 259.89. For purposes of this section, the following terms have 
174.11 	the meanings given.
174.12 	(b) "Person related to the adopted person" means:
174.13 	(1) the spouse, child, or grandchild of an adopted person, if the spouse, child, or 
174.14 	grandchild is at least 18 years of age; or
174.15 	(2) the legal representative of an adopted person.
174.16 	The definition under this paragraph only applies when the adopted person is deceased.
174.17 	(c) "Original birth record" means a copy of the original birth record for a person who is 
174.18 	born in Minnesota and whose original birth record was sealed and replaced by a replacement 
174.19 	birth record after the state registrar received a certified copy of an order, decree, or certificate 
174.20 	of adoption.
174.21 		Subd. 2.Release of original birth record. (a) The state registrar must provide to an 
174.22 	adopted person who is 18 years of age or older or a person related to the adopted person a 
174.23 	copy of the adopted person's original birth record and any evidence of the adoption previously 
174.24 	filed with the state registrar. To receive a copy of an original birth record under this 
174.25 	subdivision, the adopted person or person related to the adopted person must make the 
174.26 	request to the state registrar in writing. The copy of the original birth record must clearly 
174.27 	indicate that it may not be used for identification purposes. All procedures, fees, and waiting 
174.28 	periods applicable to a nonadopted person's request for a copy of a birth record apply in the 
174.29 	same manner as requests made under this section.
175.1 	(b) If a contact preference form is attached to the original birth record as authorized 
175.2 	under section 144.2253, the state registrar must provide a copy of the contact preference 
175.3 	form along with the copy of the adopted person's original birth record.
175.4 	(b) (c) The state registrar shall provide a transcript of an adopted person's original birth 
175.5 	record to an authorized representative of a federally recognized American Indian Tribe for 
175.6 	the sole purpose of determining the adopted person's eligibility for enrollment or membership. 
175.7 	Information contained in the birth record may not be used to provide the adopted person 
175.8 	information about the person's birth parents, except as provided in this section or section 
175.9 	259.83.
175.10 	(d) For a replacement birth record issued under section 144.218, the adopted person or 
175.11 	a person related to the adopted person may obtain from the state registrar  copies of the order 
175.12 	or decree of adoption, certificate of adoption, or decree issued under section 259.60, as filed 
175.13 	with the state registrar.
175.14 		Subd. 3.Adult adoptions. Notwithstanding section 144.218, a person adopted as an 
175.15 	adult may access the person's birth records that existed before the person's adult adoption. 
175.16 	Access to the existing birth records shall be the same access that was permitted prior to the 
175.17 	adult adoption.

175.18 	EFFECTIVE DATE. This section is effective July 1, 2024.

175.19 	Sec. 29. [144.2253] BIRTH PARENT CONTACT PREFERENCE FORM.
175.20 	(a) The commissioner must make available to the public a contact preference form as 
175.21 	described in paragraph (b).
175.22 	(b) The contact preference form must provide the following information to be completed 
175.23 	at the option of a birth parent:
175.24 	(1) "I would like to be contacted."
175.25 	(2) "I would prefer to be contacted only through an intermediary."
175.26 	(3) "I prefer not to be contacted at this time. If I decide later that I would like to be 
175.27 	contacted, I will submit an updated contact preference form to the Minnesota Department 
175.28 	of Health."
175.29 	(c) If a birth parent of an adopted person submits a completed contact preference form 
175.30 	to the commissioner, the commissioner must:
175.31 	(1) match the contact preference form to the adopted person's original birth record; and
176.1 	(2) attach the contact preference form to the original birth record as required under 
176.2 	section 144.2252.
176.3 	(d) A contact preference form submitted to the commissioner under this section is private 
176.4 	data on an individual as defined in section 13.02, subdivision 12, except that the contact 
176.5 	preference form may be released as provided under section 144.2252, subdivision 2.

176.6 	EFFECTIVE DATE. This section is effective August 1, 2023.

176.7 	Sec. 30. [144.2254] PREVIOUSLY FILED CONSENTS TO DISCLOSURE AND 
176.8 	AFFIDAVITS OF NONDISCLOSURE.
176.9 	(a) The commissioner must inform a person applying for an original birth record under 
176.10 	section 144.2252 of the existence of an unrevoked consent to disclosure or an affidavit of 
176.11 	nondisclosure on file with the department, including the name of the birth parent who filed 
176.12 	the consent or affidavit. If a birth parent authorized the release of the birth parent's address 
176.13 	on an unrevoked consent to disclosure, the commissioner shall provide the address to the 
176.14 	person who requests the original birth record.
176.15 	(b) A birth parent's consent to disclosure or affidavit of nondisclosure filed with the 
176.16 	commissioner of health expires and has no force or effect beginning on June 30, 2024.

176.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

176.18 	Sec. 31. Minnesota Statutes 2022, section 144.226, subdivision 3, is amended to read:
176.19 		Subd. 3.Birth record surcharge. (a) In addition to any fee prescribed under subdivision 
176.20 	1, there shall be a nonrefundable surcharge of $3 for each certified birth or stillbirth record 
176.21 	and for a certification that the vital record cannot be found. The state registrar or local 
176.22 	issuance office shall forward this amount to the commissioner of management and budget 
176.23 	each month following the collection of the surcharge for deposit into the account for the 
176.24 	children's trust fund for the prevention of child abuse established under section 256E.22. 
176.25 	This surcharge shall not be charged under those circumstances in which no fee for a certified 
176.26 	birth or stillbirth record is permitted under subdivision 1, paragraph (b). Upon certification 
176.27 	by the commissioner of management and budget that the assets in that fund exceed 
176.28 	$20,000,000, this surcharge shall be discontinued.
176.29 	(b) In addition to any fee prescribed under subdivision 1, there shall be a nonrefundable 
176.30 	surcharge of $10 for each certified birth record. The state registrar or local issuance office 
176.31 	shall forward this amount to the commissioner of management and budget each month 
176.32 	following the collection of the surcharge for deposit in the general fund.

177.1 	Sec. 32. Minnesota Statutes 2022, section 144.226, subdivision 4, is amended to read:
177.2 		Subd. 4.Vital records surcharge.  In addition to any fee prescribed under subdivision 
177.3 	1, there is a nonrefundable surcharge of $4 for each certified and noncertified birth, stillbirth, 
177.4 	or death record, and for a certification that the record cannot be found. The local issuance 
177.5 	office or state registrar shall forward this amount to the commissioner of management and 
177.6 	budget each month following the collection of the surcharge to be deposited into the state 
177.7 	government special revenue fund.

177.8 	Sec. 33. [144.3832] PUBLIC WATER SYSTEM INFRASTRUCTURE 
177.9 	STRENGTHENING GRANTS.
177.10 		Subdivision 1.Establishment; purpose. The commissioner of health shall establish a 
177.11 	grant program to ensure the uninterrupted delivery of safe water through emergency power 
177.12 	supplies and back-up wells, backflow prevention, water reuse, increased cybersecurity, 
177.13 	floodplain mapping, support for very small water system infrastructure, and piloting solar 
177.14 	farms in source water protection areas.
177.15 		Subd. 2.Grants authorized. (a) The commissioner shall award grants for emergency 
177.16 	power supplies, back-up wells, and cross connection prevention programs through a request 
177.17 	for proposals process to public water systems. The commissioner shall give priority to small 
177.18 	and very small public water systems that serve populations of less than 3,300 and 500 
177.19 	respectively. The commissioner shall award matching grants to public water systems that 
177.20 	serve populations of less than 500 for infrastructure improvements supporting system 
177.21 	operations and resiliency.
177.22 	(b) Grantees must address one or more areas of infrastructure strengthening with the 
177.23 	goals of:
177.24 	(1) ensuring the uninterrupted delivery of safe and affordable water to their customers;
177.25 	(2) anticipating and mitigating potential threats arising from climate change such as 
177.26 	flooding and drought;
177.27 	(3) providing resiliency to maintain drinking water supply capacity in case of a loss of 
177.28 	power;
177.29 	(4) providing redundancy by having more than one source of water in case the main 
177.30 	source of water fails; or
177.31 	(5) preventing contamination by cross connections through a self-sustaining cross 
177.32 	connection control program.

178.1 	Sec. 34. [144.3885] LABOR TRAFFICKING SERVICES GRANT PROGRAM.
178.2 		Subdivision 1.Establishment. The commissioner of health must establish a labor 
178.3 	trafficking services grant program to provide comprehensive, trauma-informed, and culturally 
178.4 	specific services for victims of labor trafficking or labor exploitation.
178.5 		Subd. 2.Eligibility; application. To be eligible for a grant under this section, applicants 
178.6 	must be a nonprofit organization or a nongovernmental organization serving victims of 
178.7 	labor trafficking or labor exploitation. An organization seeking a grant under this section 
178.8 	must apply to the commissioner at a time and in a manner specified by the commissioner. 
178.9 	The commissioner must review each application to determine if the application is complete, 
178.10 	the organization is eligible for a grant, and the proposed project is an allowable use of grant 
178.11 	funds. The commissioner must determine the grant amount awarded to applicants that the 
178.12 	commissioner determines will receive a grant.
178.13 		Subd. 3.Reporting. (a) The grantee must submit a report to the commissioner in a 
178.14 	manner and on a timeline specified by the commissioner on how the grant funds were spent 
178.15 	and how many individuals were served.
178.16 	(b) By January 15 of each year, the commissioner must submit a report to the chairs and 
178.17 	ranking minority members of the legislative committees with jurisdiction over health policy 
178.18 	and finance. The report must include the names of the grant recipients, how the grant funds 
178.19 	were spent, and how many individuals were served.

178.20 	Sec. 35. [144.398] TOBACCO USE PREVENTION ACCOUNT; ESTABLISHMENT 
178.21 	AND USES.
178.22 		Subdivision 1.Definitions. (a) As used in this section, the terms in this subdivision have 
178.23 	the meanings given.
178.24 	(b) "Electronic delivery device" has the meaning given in section 609.685, subdivision 
178.25 	1, paragraph (c).
178.26 	(c) "Tobacco" has the meaning given in section 609.685, subdivision 1, paragraph (a).
178.27 	(d) "Tobacco-related devices" has the meaning given in section 609.685, subdivision 1, 
178.28 	paragraph (b).
178.29 	(e) "Nicotine delivery product" has the meaning given in section 609.6855, subdivision 
178.30 	1, paragraph (c).
178.31 		Subd. 2.Account created. A tobacco use prevention account is created in the special 
178.32 	revenue fund. Pursuant to section 16A.151, subdivision 2, paragraph (h), the commissioner 
179.1 	of management and budget shall deposit into the account any money received by the state 
179.2 	resulting from a settlement agreement or an assurance of discontinuance entered into by the 
179.3 	attorney general of the state, or a court order in litigation brought by the attorney general 
179.4 	of the state on behalf of the state or a state agency related to alleged violations of consumer 
179.5 	fraud laws in the marketing, sale, or distribution of electronic nicotine delivery systems in 
179.6 	this state or other alleged illegal actions that contributed to the exacerbation of youth nicotine 
179.7 	use.
179.8 		Subd. 3.Appropriations from tobacco use prevention account.  (a) Each fiscal year, 
179.9 	the amount of money in the tobacco use prevention account is appropriated to the 
179.10 	commissioner of health for:
179.11 	(1) tobacco and electronic delivery device use prevention and cessation projects consistent 
179.12 	with the duties specified in section 144.392;
179.13 	(2) a public information program under section 144.393;
179.14 	(3) the development of health promotion and health education materials about tobacco 
179.15 	and electronic delivery device use prevention and cessation;
179.16 	(4) tobacco and electronic delivery device use prevention activities under section 144.396; 
179.17 	and
179.18 	(5) statewide tobacco cessation services under section 144.397.
179.19 	(b) In activities funded under this subdivision, the commissioner of health must:
179.20 	(1) prioritize preventing persons under the age of 21 from using commercial tobacco, 
179.21 	electronic delivery devices, tobacco-related devices, and nicotine delivery products;
179.22 	(2) promote racial and health equity; and
179.23 	(3) use strategies that are evidence-based or based on promising practices.

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

179.25 	Sec. 36. [144.4962] LOCAL AND TRIBAL PUBLIC HEALTH EMERGENCY 
179.26 	PREPAREDNESS AND RESPONSE GRANT PROGRAM.
179.27 		Subdivision 1.Establishment. The commissioner of health must establish a local and 
179.28 	Tribal public health emergency preparedness and response grant program.
179.29 		Subd. 2.Eligibility; application. (a) Local and Tribal public health organizations are 
179.30 	eligible to receive grants as provided in this section. Grant proceeds must align with the 
179.31 	Centers for Disease Control and Prevention's issued report: Public Health Emergency 
180.1 	Preparedness and Response Capabilities: National Standards for State, Local, Tribal, and 
180.2 	Territorial Public Health.
180.3 	(b) A local or Tribal public health organization seeking a grant under this section must 
180.4 	apply to the commissioner at a time and in a manner specified by the commissioner. The 
180.5 	commissioner must review each application to determine if the application is complete, the 
180.6 	organization is eligible for a grant, and the proposed project is an allowable use of grant 
180.7 	funds. The commissioner must determine the grant amount awarded to applicants that the 
180.8 	commissioner determines will receive a grant.
180.9 		Subd. 3.Reporting. (a) The grantee must submit a report to the commissioner in a 
180.10 	manner and on a timeline specified by the commissioner on how the grant funds were spent 
180.11 	and how many individuals were served.
180.12 	(b) By January 15 of each year, the commissioner must submit a report to the chairs and 
180.13 	ranking minority members of the legislative committees with jurisdiction over health policy 
180.14 	and finance. The report must include the names of the grant recipients, how the grant funds 
180.15 	were spent, and how many individuals were served.

180.16 	Sec. 37. [144.557] REQUIREMENTS FOR CERTAIN HEALTH CARE ENTITY 
180.17 	TRANSACTIONS.
180.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
180.19 	the meaning given.
180.20 	(b) "Captive professional entity" means a professional corporation, limited liability 
180.21 	company, or other entity formed to render professional services in which a beneficial owner 
180.22 	is a health care provider employed by, controlled by, or subject to the direction of a hospital 
180.23 	or hospital system.
180.24 	(c) "Commissioner" means the commissioner of health.
180.25 	(d) "Control," including the terms "controlling," "controlled by," and "under common 
180.26 	control with," means the possession, direct or indirect, of the power to direct or cause the 
180.27 	direction of the management and policies of a person, whether through the ownership of 
180.28 	voting securities, membership in an entity formed under chapter 317A, by contract other 
180.29 	than a commercial contract for goods or nonmanagement services, or otherwise, unless the 
180.30 	power is the result of an official position with, corporate office held by, or court appointment 
180.31 	of, the person. Control is presumed to exist if any person, directly or indirectly, owns, 
180.32 	controls, holds with the power to vote, or holds proxies representing, 40 percent or more of 
180.33 	the voting securities of any other person, or if any person, directly or indirectly, constitutes 
181.1 	40 percent or more of the membership of an entity formed under chapter 317A. The 
181.2 	commissioner may determine, after furnishing all persons in interest notice and opportunity 
181.3 	to be heard and making specific findings of fact to support such determination, that control 
181.4 	exists in fact, notwithstanding the absence of a presumption to that effect.
181.5 	(e) "Health care entity" means:
181.6 	(1) a hospital;
181.7 	(2) a hospital system;
181.8 	(3) a captive professional entity;
181.9 	(4) a medical foundation;
181.10 	(5) a health care provider group practice;
181.11 	(6) an entity organized or controlled by an entity listed in clauses (1) to (5); or
181.12 	(7) an entity that owns or exercises control over an entity listed in clauses (1) to (5).
181.13 	(f) "Health care provider" means a physician licensed under chapter 147, a physician 
181.14 	assistant licensed under chapter 147A, or an advanced practice registered nurse as defined 
181.15 	in section 148.171, subdivision 3, who provides health care services, including but not 
181.16 	limited to medical care, consultation, diagnosis, or treatment.
181.17 	(g) "Health care provider group practice" means two or more health care providers legally 
181.18 	organized in a partnership, professional corporation, limited liability company, medical 
181.19 	foundation, nonprofit corporation, faculty practice plan, or other similar entity:
181.20 	(1) in which each health care provider who is a member of the group provides 
181.21 	substantially the full range of services that a health care provider routinely provides, including 
181.22 	but not limited to medical care, consultation, diagnosis, and treatment, through the joint use 
181.23 	of shared office space, facilities, equipment, or personnel;
181.24 	(2) for which substantially all services of the health care providers who are group 
181.25 	members are provided through the group and are billed in the name of the group practice 
181.26 	and amounts so received are treated as receipts of the group; or
181.27 	(3) in which the overhead expenses of, and the income from, the group are distributed 
181.28 	in accordance with methods previously determined by members of the group.
181.29 	An entity that otherwise meets the definition of health care provider group practice in this 
181.30 	paragraph shall be considered a health care provider group practice even if its shareholders, 
181.31 	partners, members, or owners include a single-health care provider professional corporation, 
182.1 	limited liability company, or another entity in which any beneficial owner is an individual 
182.2 	health care provider and which is formed to render professional services.
182.3 	(h) "Hospital" means a health care facility licensed as a hospital under sections 144.50 
182.4 	to 144.56.
182.5 	(i) "Medical foundation" means a nonprofit legal entity through which physicians or 
182.6 	other health care providers perform research or provide medical services.
182.7 	(j) "Transaction" means a single action, or a series of actions within a five-year period, 
182.8 	which occurs in part within the state of Minnesota or involves a health care entity formed 
182.9 	or licensed in Minnesota, that constitutes:
182.10 	(1) a merger or exchange of a health care entity with another entity;
182.11 	(2) the sale, lease, or transfer of 40 percent or more of the assets of a health care entity 
182.12 	to another entity;
182.13 	(3) the granting of a security interest of 40 percent or more of the property and assets 
182.14 	of a health care entity to another entity;
182.15 	(4) the transfer of 40 percent or more of the shares or other ownership of the health care 
182.16 	entity to another entity;
182.17 	(5) an addition, removal, withdrawal, substitution, or other modification of one or more 
182.18 	members of the health care entity's governing body that transfers control, responsibility for, 
182.19 	or governance of the health care entity to another entity;
182.20 	(6) the creation of a new health care entity;
182.21 	(7) substantial investment of 40 percent or more in a health care entity that results in 
182.22 	sharing of revenues without a change in ownership or voting shares;
182.23 	(8) an addition, removal, withdrawal, substitution, or other modification of the members 
182.24 	of a health care entity formed under chapter 317A that results in a change of 40 percent or 
182.25 	more of the membership of the health care entity; or
182.26 	(9) any other transfer of control of a health care entity to, or acquisition of control of a 
182.27 	health care entity by, another entity.
182.28 	A transaction does not include an action or series of actions which meets one or more of 
182.29 	the criteria set forth in clauses (1) to (9) if, immediately prior to all such actions, the health 
182.30 	care entity directly, or indirectly through one or more intermediaries, controls, or is controlled 
182.31 	by, or is under common control with, all other parties to the action or series of actions.
183.1 		Subd. 2.Notice required. (a) This subdivision applies to all transactions where:
183.2 	(1) the health care entity involved in the transaction has average revenue of at least 
183.3 	$40,000,000 per year; or
183.4 	(2) an entity created by the transaction is projected to have average revenue of at least 
183.5 	$40,000,000 per year once the entity is operating at full capacity.
183.6 	(b) A health care entity must provide notice to the attorney general and the commissioner 
183.7 	and comply with this subdivision before entering into a transaction. Notice must be provided 
183.8 	at least 90 days before the proposed completion date for the transaction.
183.9 	(c) As part of the notice required under this subdivision, at least 90 days before the 
183.10 	proposed completion date of the transaction, a health care entity must affirmatively disclose 
183.11 	the following to the attorney general and the commissioner:
183.12 	(1) the entities involved in the transaction;
183.13 	(2) the leadership of the entities involved in the transaction, including all directors, board 
183.14 	members, and officers;
183.15 	(3) the services provided by each entity and the attributed revenue for each entity by 
183.16 	location;
183.17 	(4) the primary service area for each location;
183.18 	(5) the proposed service area for each location;
183.19 	(6) the current relationships between the entities and the health care providers and 
183.20 	practices affected, the locations of affected health care providers and practices, the services 
183.21 	provided by affected health care providers and practices, and the proposed relationships 
183.22 	between the entities and the health care providers and practices affected;
183.23 	(7) the terms of the transaction agreement or agreements;
183.24 	(8) the acquisition price;
183.25 	(9) markets in which the entities expect postmerger synergies to produce a competitive 
183.26 	advantage;
183.27 	(10) potential areas of expansion, whether in existing markets or new markets;
183.28 	(11) plans to close facilities, reduce workforce, or reduce or eliminate services;
183.29 	(12) the experts and consultants used to evaluate the transaction;
184.1 	(13) the number of full-time equivalent positions at each location before and after the 
184.2 	transaction by job category, including administrative and contract positions; and
184.3 	(14) any other information requested by the attorney general or commissioner.
184.4 	(d) As part of the notice required under this subdivision, at least 90 days before the 
184.5 	proposed completion date of the transaction, a health care entity must affirmatively produce 
184.6 	the following to the attorney general and the commissioner:
184.7 	(1) the current governing documents for all entities involved in the transaction and any 
184.8 	amendments to these documents;
184.9 	(2) the transaction agreement or agreements and all related agreements;
184.10 	(3) any collateral agreements related to the principal transaction, including leases, 
184.11 	management contracts, and service contracts;
184.12 	(4) all expert or consultant reports or valuations conducted in evaluating the transaction, 
184.13 	including any valuation of the assets that are subject to the transaction prepared within three 
184.14 	years preceding the anticipated transaction completion date and any reports of financial or 
184.15 	economic analysis conducted in anticipation of the transaction;
184.16 	(5) the results of any projections or modeling of health care utilization or financial 
184.17 	impacts related to the transaction, including but not limited to copies of reports by appraisers, 
184.18 	accountants, investment bankers, actuaries, and other experts;
184.19 	(6) a financial and economic analysis and report prepared by an independent expert or 
184.20 	consultant on the effects of the transaction;
184.21 	(7) an impact analysis report prepared by an independent expert or consultant on the 
184.22 	effects of the transaction on communities and the workforce, including any changes in 
184.23 	availability or accessibility of services;
184.24 	(8) all documents reflecting the purposes of or restrictions on any related nonprofit 
184.25 	entity's charitable assets;
184.26 	(9) copies of all filings submitted to federal regulators, including any Hart-Scott-Rodino 
184.27 	filing the entities submitted to the Federal Trade Commission in connection with the 
184.28 	transaction;
184.29 	(10) a certification sworn under oath by each board member and chief executive officer 
184.30 	for any nonprofit entity involved in the transaction containing the following: an explanation 
184.31 	of how the completed transaction is in the public interest, addressing the factors in subdivision 
184.32 	5, paragraph (a); a disclosure of each declarant's compensation and benefits relating to the 
185.1 	transaction for the three years following the transaction's anticipated completion date; and 
185.2 	a disclosure of any conflicts of interest;
185.3 	(11) audited and unaudited financial statements from all entities involved in the 
185.4 	transaction and tax filings for all entities involved in the transaction covering the preceding 
185.5 	five fiscal years; and
185.6 	(12) any other information or documents requested by the attorney general or 
185.7 	commissioner.
185.8 	(e) The attorney general may extend the notice and waiting period required under 
185.9 	paragraph (b) for an additional 90 days by notifying the health care entity in writing of the 
185.10 	extension.
185.11 	(f) The attorney general may waive all or any part of the notice and waiting period 
185.12 	required under paragraph (b).
185.13 	(g) The attorney general or the commissioner may hold public listening sessions or 
185.14 	forums to obtain input on the transaction from providers or community members who may 
185.15 	be impacted by the transaction.
185.16 	(h) The attorney general or the commissioner may bring an action in district court to 
185.17 	compel compliance with the notice requirements in this subdivision.
185.18 		Subd. 3.Prohibited transactions. No health care entity may enter into a transaction 
185.19 	that will:
185.20 	(1) substantially lessen competition; or
185.21 	(2) tend to create a monopoly or monopsony.
185.22 		Subd. 4.Additional requirements for nonprofit health care entities. A health care 
185.23 	entity that is incorporated under chapter 317A or organized under section 322C.1101, or 
185.24 	that is a subsidiary of any such entity, must, before entering into a transaction, ensure that:
185.25 	(1) the transaction complies with chapters 317A and 501B and other applicable laws;
185.26 	(2) the transaction does not involve or constitute a breach of charitable trust;
185.27 	(3) the nonprofit health care entity will receive full and fair value for its public benefit 
185.28 	assets, provided that this requirement is waived if application for waiver is made to the 
185.29 	attorney general and the attorney general determines a waiver from this requirement is in 
185.30 	the public interest;
186.1 	(4) the value of the public benefit assets to be transferred has not been manipulated in 
186.2 	a manner that causes or has caused the value of the assets to decrease;
186.3 	(5) the proceeds of the transaction will be used in a manner consistent with the public 
186.4 	benefit for which the assets are held by the nonprofit health care entity;
186.5 	(6) the transaction will not result in a breach of fiduciary duty; and
186.6 	(7) there are procedures and policies in place to prohibit any officer, director, trustee, 
186.7 	or other executive of the nonprofit health care entity from directly or indirectly benefiting 
186.8 	from the transaction.
186.9 		Subd. 5.Attorney general enforcement and supplemental authority. (a) The attorney 
186.10 	general may bring an action in district court to enjoin or unwind a transaction or seek other 
186.11 	equitable relief necessary to protect the public interest if a health care entity or transaction 
186.12 	violates this section, if the transaction is contrary to the public interest, or if both a health 
186.13 	care entity or transaction violates this section and the transaction is contrary to the public 
186.14 	interest. Factors informing whether a transaction is contrary to the public interest include 
186.15 	but are not limited to whether the transaction:
186.16 	(1) will harm public health;
186.17 	(2) will reduce the affected community's continued access to affordable and quality care 
186.18 	and to the range of services historically provided by the entities or will prevent members 
186.19 	in the affected community from receiving a comparable or better patient experience;
186.20 	(3) will have a detrimental impact on competing health care options within primary and 
186.21 	dispersed service areas;
186.22 	(4) will reduce delivery of health care to disadvantaged, uninsured, underinsured, and 
186.23 	underserved populations and to populations enrolled in public health care programs;
186.24 	(5) will have a substantial negative impact on medical education and teaching programs, 
186.25 	health care workforce training, or medical research;
186.26 	(6) will have a negative impact on the market for health care services, health insurance 
186.27 	services, or skilled health care workers;
186.28 	(7) will increase health care costs for patients; or
186.29 	(8) will adversely impact provider cost trends and containment of total health care 
186.30 	spending.
186.31 	(b) The attorney general may enforce this section under section 8.31.
187.1 	(c) Failure of the entities involved in a transaction to provide timely information as 
187.2 	required by the attorney general or the commissioner shall be an independent and sufficient 
187.3 	ground for a court to enjoin or unwind the transaction or provide other equitable relief, 
187.4 	provided the attorney general notified the entities of the inadequacy of the information 
187.5 	provided and provided the entities with a reasonable opportunity to remedy the inadequacy.
187.6 	(d) The attorney general shall consult with the commissioner to determine whether a 
187.7 	transaction is contrary to the public interest. Any information exchanged between the attorney 
187.8 	general and the commissioner according to this subdivision is confidential data on individuals 
187.9 	as defined in section 13.02, subdivision 3, or protected nonpublic data as defined in section 
187.10 	13.02, subdivision 13. The commissioner may share with the attorney general, according 
187.11 	to section 13.05, subdivision 9, any not public data, as defined in section 13.02, subdivision 
187.12 	8a, held by the Department of Health to aid in the investigation and review of the transaction, 
187.13 	and the attorney general must maintain this data with the same classification according to 
187.14 	section 13.03, subdivision 4, paragraph (d).
187.15 		Subd. 6.Supplemental authority of commissioner. (a) Notwithstanding any law to 
187.16 	the contrary, the commissioner may use data or information submitted under this section, 
187.17 	section 62U.04, and sections 144.695 to 144.705 to conduct analyses of the aggregate impact 
187.18 	of health care transactions on access to or the cost of health care services, health care market 
187.19 	consolidation, and health care quality.
187.20 	(b) The commissioner shall issue periodic public reports on the number and types of 
187.21 	transactions subject to this section and on the aggregate impact of transactions on health 
187.22 	care cost, quality, and competition in Minnesota.
187.23 		Subd. 7.Relation to other law. (a) The powers and authority under this section are in 
187.24 	addition to, and do not affect or limit, all other rights, powers, and authority of the attorney 
187.25 	general or the commissioner under chapter 8, 309, 317A, 325D, 501B, or other law.
187.26 	(b) Nothing in this section shall suspend any obligation imposed under chapter 8, 309, 
187.27 	317A, 325D, 501B, or other law on the entities involved in a transaction.

187.28 	EFFECTIVE DATE. This section is effective the day following final enactment and 
187.29 	applies to transactions completed on or after that date. In determining whether a transaction 
187.30 	was completed on or after the effective date, any actions or series of actions necessary to 
187.31 	the completion of the transaction that occurred prior to the effective date must be considered.

188.1 	Sec. 38. [144.587] REQUIREMENTS FOR SCREENING FOR ELIGIBILITY FOR 
188.2 	HEALTH COVERAGE OR ASSISTANCE.
188.3 		Subdivision 1.Definitions. (a) The terms defined in this subdivision apply to this section 
188.4 	and sections 144.588 to 144.589.
188.5 	(b) "Charity care" means the provision of free or discounted care to a patient according 
188.6 	to a hospital's financial assistance policies.
188.7 	(c) "Hospital" means a private, nonprofit, or municipal hospital licensed under sections 
188.8 	144.50 to 144.56.
188.9 	(d) "Insurance affordability program" has the meaning given in section 256B.02, 
188.10 	subdivision 19.
188.11 	(e) "Navigator" has the meaning given in section 62V.02, subdivision 9.
188.12 	(f) "Presumptive eligibility" has the meaning given in section 256B.057, subdivision 
188.13 	12.
188.14 	(g) "Revenue recapture" means the use of the procedures in chapter 270A to collect debt.
188.15 	(h) "Uninsured service or treatment" means any service or treatment that is not covered 
188.16 	by:
188.17 	(1) a health plan, contract, or policy that provides health coverage to a patient; or
188.18 	(2) any other type of insurance coverage, including but not limited to no-fault automobile 
188.19 	coverage, workers' compensation coverage, or liability coverage.
188.20 	(i) "Unreasonable burden" includes requiring a patient to apply for enrollment in a state 
188.21 	or federal program for which the patient is obviously or categorically ineligible or has been 
188.22 	found to be ineligible in the previous 12 months.
188.23 		Subd. 2.Screening. (a) A hospital participating in the hospital presumptive eligibility 
188.24 	program under section 256B.057, subdivision 12, must determine whether a patient who is 
188.25 	uninsured or whose insurance coverage status is not known by the hospital is eligible for 
188.26 	hospital presumptive eligibility coverage.
188.27 	(b) For any uninsured patient, including any patient the hospital determines is eligible 
188.28 	for hospital presumptive eligibility coverage, and for any patient whose insurance coverage 
188.29 	status is not known to the hospital, a hospital must:
189.1 	(1) if it is a certified application counselor organization, schedule an appointment for 
189.2 	the patient with a certified application counselor to occur prior to discharge unless the 
189.3 	occurrence of the appointment would delay discharge;
189.4 	(2) if the occurrence of the appointment under clause (1) would delay discharge or if 
189.5 	the hospital is not a certified application counselor organization, schedule prior to discharge 
189.6 	an appointment for the patient with a MNsure-certified navigator to occur after discharge 
189.7 	unless the scheduling of an appointment would delay discharge; or
189.8 	(3) if the scheduling of an appointment under clause (2) would delay discharge or if the 
189.9 	patient declines the scheduling of an appointment under clause (1) or (2), provide the patient 
189.10 	with contact information for available MNsure-certified navigators who can meet the needs 
189.11 	of the patient.
189.12 	(c) For any uninsured patient, including any patient the hospital determines is eligible 
189.13 	for hospital presumptive eligibility coverage, and any patient whose insurance coverage 
189.14 	status is not known to the hospital, a hospital must screen the patient for eligibility for charity 
189.15 	care from the hospital. The hospital must attempt to complete the screening process for 
189.16 	charity care in person or by telephone within 30 days after the patient receives services at 
189.17 	the hospital or at the emergency department associated with the hospital.
189.18 		Subd. 3.Charity care. (a) Upon completion of the screening process in subdivision 2, 
189.19 	paragraph (c), the hospital must determine whether the patient is ineligible or potentially 
189.20 	eligible for charity care. When a hospital evaluates a patient's eligibility for charity care, 
189.21 	hospital requests to the responsible party for verification of assets or income shall be limited 
189.22 	to:
189.23 	(1) information that is reasonably necessary and readily available to determine eligibility; 
189.24 	and
189.25 	(2) facts that are relevant to determine eligibility.
189.26 	A hospital must not demand duplicate forms of verification of assets.
189.27 	(b) If the patient is not ineligible for charity care, the hospital must assist the patient 
189.28 	with applying for charity care and refer the patient to the appropriate department in the 
189.29 	hospital for follow-up. A hospital may not impose application procedures for charity care 
189.30 	that place an unreasonable burden on the individual patient, taking into account the individual 
189.31 	patient's physical, mental, intellectual, or sensory deficiencies or language barriers that may 
189.32 	hinder the patient's ability to comply with application procedures.
190.1 	(c) A hospital may not initiate any of the actions described in subdivision 4 while the 
190.2 	patient's application for charity care is pending.
190.3 		Subd. 4.Prohibited actions. A hospital must not initiate one or more of the following 
190.4 	actions until the hospital determines that the patient is ineligible for charity care or denies 
190.5 	an application for charity care:
190.6 	(1) offering to enroll or enrolling the patient in a payment plan;
190.7 	(2) changing the terms of a patient's payment plan;
190.8 	(3) offering the patient a loan or line of credit, application materials for a loan or line of 
190.9 	credit, or assistance with applying for a loan or line of credit, for the payment of medical 
190.10 	debt;
190.11 	(4) referring a patient's debt for collections, including in-house collections, third-party 
190.12 	collections, revenue recapture, or any other process for the collection of debt;
190.13 	(5) denying health care services to the patient or any member of the patient's household 
190.14 	because of outstanding medical debt, regardless of whether the services are deemed necessary 
190.15 	or may be available from another provider; or
190.16 	(6) accepting a credit card payment of over $500 for the medical debt owed to the hospital.
190.17 		Subd. 5.Notice. (a) A hospital must post notice of the availability of charity care from 
190.18 	the hospital in at least the following locations: (1) areas of the hospital where patients are 
190.19 	admitted or registered; (2) emergency departments; and (3) the portion of the hospital's 
190.20 	financial services or billing department that is accessible to patients. The posted notice must 
190.21 	be in all languages spoken by more than five percent of the population in the hospital's 
190.22 	service area.
190.23 	(b) A hospital must make available on the hospital's website the current version of the 
190.24 	hospital's charity care policy, a plain-language summary of the policy, and the hospital's 
190.25 	charity care application form. The summary and application form must be available in all 
190.26 	languages spoken by more than five percent of the population in the hospital's service area.
190.27 		Subd. 6.Patient may decline services. A patient may decline to complete an insurance 
190.28 	affordability program application to schedule an appointment with a certified application 
190.29 	counselor, to schedule an appointment with a MNsure-certified navigator, to accept 
190.30 	information about navigator services, to participate in the charity care screening process, 
190.31 	or to apply for charity care.
191.1 		Subd. 7.Enforcement. In addition to the enforcement of this section by the 
191.2 	commissioner, the attorney general may enforce this section under section 8.31.

191.3 	EFFECTIVE DATE. This section is effective November 1, 2023, and applies to services 
191.4 	and treatments provided on or after that date.

191.5 	Sec. 39. [144.588] CERTIFICATION OF EXPERT REVIEW.
191.6 		Subdivision 1.Requirement; action to collect medical debt or garnish wages or bank 
191.7 	accounts. (a) In an action against a patient or guarantor for collection of medical debt owed 
191.8 	to a hospital or for garnishment of the patient's or guarantor's wages or bank accounts to 
191.9 	collect medical debt owed to a hospital, the hospital must serve on the defendant with the 
191.10 	summons and complaint an affidavit of expert review certifying that:
191.11 	(1) unless the patient declined to participate, the hospital complied with the requirements 
191.12 	in section 144.587;
191.13 	(2) there is a reasonable basis to believe that the patient owes the debt;
191.14 	(3) all known third-party payors have been properly billed by the hospital, such that any 
191.15 	remaining debt is the financial responsibility of the patient, and the hospital will not bill the 
191.16 	patient for any amount that an insurance company is obligated to pay;
191.17 	(4) the patient has been given a reasonable opportunity to apply for charity care, if the 
191.18 	facts and circumstances suggest that the patient may be eligible for charity care;
191.19 	(5) where the patient has indicated an inability to pay the full amount of the debt in one 
191.20 	payment and provided reasonable verification of the inability to pay the full amount of the 
191.21 	debt in one payment if requested by the hospital, the hospital has offered the patient a 
191.22 	reasonable payment plan;
191.23 	(6) there is no reasonable basis to believe that the patient's or guarantor's wages or funds 
191.24 	at a financial institution are likely to be exempt from garnishment; and
191.25 	(7) in the case of a default judgment proceeding, there is not a reasonable basis to believe:
191.26 	(i) that the patient may already consider that the patient has adequately answered the 
191.27 	complaint by calling or writing to the hospital, its debt collection agency, or its attorney;
191.28 	(ii) that the patient is potentially  unable to answer the complaint due to age, disability, 
191.29 	or medical condition; or
191.30 	(iii) the patient may not have received service of the complaint.
192.1 	(b) The affidavit of expert review must be completed by a designated employee of the 
192.2 	hospital seeking to initiate the action or garnishment.
192.3 		Subd. 2.Requirement; referral to third-party debt collection agency. (a) In order to 
192.4 	refer a patient's account to a third-party debt collection agency, a hospital must complete 
192.5 	an affidavit of expert review certifying that:
192.6 	(1) unless the patient declined to participate, the hospital complied with the requirements 
192.7 	in section 144.587;
192.8 	(2) there is a reasonable basis to believe that the patient owes the debt;
192.9 	(3) all known third-party payors have been properly billed by the hospital, such that any 
192.10 	remaining debt is the financial responsibility of the patient, and the hospital will not bill the 
192.11 	patient for any amount that an insurance company is obligated to pay;
192.12 	(4) the patient has been given a reasonable opportunity to apply for charity care, if the 
192.13 	facts and circumstances suggest that the patient may be eligible for charity care; and
192.14 	(5) where the patient has indicated an inability to pay the full amount of the debt in one 
192.15 	payment and provided reasonable verification of the inability to pay the full amount of the 
192.16 	debt in one payment if requested by the hospital, the hospital has offered the patient a 
192.17 	reasonable payment plan.
192.18 	(b) The affidavit of expert review must be completed by a designated employee of the 
192.19 	hospital seeking to refer the patient's account to a third-party debt collection agency.
192.20 		Subd. 3.Penalty for noncompliance. Failure to comply with subdivision 1 shall result, 
192.21 	upon motion, in mandatory dismissal with prejudice of the action to collect the medical 
192.22 	debt or to garnish the patient's or guarantor's wages or bank accounts. Failure to comply 
192.23 	with subdivision 2 shall subject a hospital to a fine assessed by the commissioner of health. 
192.24 	In addition to the enforcement of this section by the commissioner, the attorney general 
192.25 	may enforce this section under section 8.31.
192.26 		Subd. 4.Collection agency; immunity. A collection agency, as defined in section 
192.27 	332.31, subdivision 3, is not liable under section 144.588, subdivision 3, for inaccuracies 
192.28 	in an affidavit of expert review completed by a designated employee of the hospital.

192.29 	EFFECTIVE DATE. This section is effective November 1, 2023, and applies to actions 
192.30 	and referrals to third-party debt collection agencies stemming from services and treatments 
192.31 	provided on or after that date.

193.1 	Sec. 40. [144.589] BILLING OF UNINSURED PATIENTS.
193.2 		Subdivision 1.Limits on charges. A hospital must not charge a patient whose annual 
193.3 	household income is less than $125,000 for any uninsured service or treatment in an amount 
193.4 	that exceeds the lowest total amount the provider would be reimbursed for that service or 
193.5 	treatment from a nongovernmental third-party payor. The lowest total amount the provider 
193.6 	would be reimbursed for that service or treatment from a nongovernmental third-party payor 
193.7 	includes both the amount the provider would be reimbursed directly from the 
193.8 	nongovernmental third-party payor and the amount the provider would be reimbursed from 
193.9 	the insured's policyholder under any applicable co-payments, deductibles, and coinsurance. 
193.10 	This statute supersedes the language in the Minnesota Attorney General Hospital Agreement.
193.11 		Subd. 2.Enforcement. In addition to the enforcement of this section by the 
193.12 	commissioner, the attorney general may enforce this section under section 8.31.

193.13 	EFFECTIVE DATE. This section is effective November 1, 2023, and applies to services 
193.14 	and treatments provided on or after that date.

193.15 	Sec. 41. [144.645] SUPPORTING HEALTHY DEVELOPMENT OF BABIES GRANT 
193.16 	PROGRAM.
193.17 		Subdivision 1.Establishment. The commissioner of health must establish a grant 
193.18 	program to support healthy development of babies. Grant proceeds must be used for 
193.19 	community-driven training and education on best practices for supporting healthy 
193.20 	development of babies during pregnancy and postpartum. The grant money must be used 
193.21 	to build capacity in, train, educate, or improve practices among individuals, from youth to 
193.22 	elders, serving families with members who are Black, Indigenous, or People of Color during 
193.23 	pregnancy and postpartum.
193.24 		Subd. 2.Eligibility; application. To be eligible for a grant under this section, applicants 
193.25 	must be a nonprofit organization. A nonprofit organization seeking a grant under this section 
193.26 	must apply to the commissioner at a time and in a manner specified by the commissioner. 
193.27 	The commissioner shall review each application to determine if the application is complete, 
193.28 	the nonprofit organization is eligible for a grant, and the proposed project is an allowable 
193.29 	use of grant funds. The commissioner must determine the grant amount awarded to applicants 
193.30 	that the commissioner determines will receive a grant.

194.1 	Sec. 42. [144.6504] ALZHEIMER'S DISEASE AND DEMENTIA CARE TRAINING 
194.2 	PROGRAM.
194.3 	(a) The commissioner of health, in collaboration with interested stakeholders, shall 
194.4 	develop and provide a training program for community health workers on recognizing and 
194.5 	understanding Alzheimer's disease and dementia. The training program may be conducted 
194.6 	either virtually or in person and must, at a minimum, include instruction on:
194.7 	(1) recognizing the common warning signs of Alzheimer's disease and dementia;
194.8 	(2) understanding how Alzheimer's disease and dementia affect communication and 
194.9 	behavior;
194.10 	(3) recognizing potential safety risks for individuals living with dementia, including the 
194.11 	risks of wandering and elder abuse; and
194.12 	(4) identifying appropriate techniques to communicate with individuals living with 
194.13 	dementia and how to appropriately respond to dementia-related behaviors.
194.14 	(b) The commissioner shall work with the Minnesota State Colleges and University 
194.15 	System (MNSCU) to explore the possibility of including a training program that meets the 
194.16 	requirements of this section to the MNSCU-approved community health worker certification 
194.17 	program.
194.18 	(c) Notwithstanding paragraph (a), if a training program already exists that meets the 
194.19 	requirements of this section, the commissioner may approve the existing training program 
194.20 	or programs instead of developing a new program, and, in collaboration with interested 
194.21 	stakeholders, ensure that the approved training program or programs are available to all 
194.22 	community health workers.

194.23 	Sec. 43. Minnesota Statutes 2022, section 144.651, is amended by adding a subdivision 
194.24 	to read:
194.25 		Subd. 10a.Designated support person for pregnant patient. (a) Subject to paragraph 
194.26 	(c), a health care provider and a health care facility must allow, at a minimum, one designated 
194.27 	support person of a pregnant patient's choosing to be physically present while the patient 
194.28 	is receiving health care services including during a hospital stay.
194.29 	(b) For purposes of this subdivision, "designated support person" means any person 
194.30 	chosen by the patient to provide comfort to the patient including but not limited to the 
194.31 	patient's spouse, partner, family member, or another person related by affinity. Certified 
195.1 	doulas and traditional midwives may not be counted toward the limit of one designated 
195.2 	support person.
195.3 	(c) A facility may restrict or prohibit the presence of a designed support person in 
195.4 	treatment rooms, procedure rooms, and operating rooms when such a restriction or prohibition 
195.5 	is strictly necessary to meet the appropriate standard of care. A facility may also restrict or 
195.6 	prohibit the presence of a designated support person if the designated support person is 
195.7 	acting in a violent or threatening manner towards others. Any restriction or prohibition of 
195.8 	a designated support person by the facility is subject to the facility's written internal grievance 
195.9 	procedure required by subdivision 20.

195.10 	Sec. 44. Minnesota Statutes 2022, section 144.9501, subdivision 9, is amended to read:
195.11 		Subd. 9.Elevated blood lead level. "Elevated blood lead level" means a diagnostic 
195.12 	blood lead test with a result that is equal to or greater than ten 3.5 micrograms of lead per 
195.13 	deciliter of whole blood in any person, unless the commissioner finds that a lower 
195.14 	concentration is necessary to protect public health.

195.15 	Sec. 45. [144.9821] ADVANCING HEALTH EQUITY THROUGH CAPACITY 
195.16 	BUILDING AND RESOURCE ALLOCATION.
195.17 		Subdivision 1.Establishment of grant program. (a) The commissioner of health shall 
195.18 	establish an annual grant program to award infrastructure capacity building grants to help 
195.19 	metro and rural community and faith-based organizations serving people of color, American 
195.20 	Indians, LGBTQIA+ people, and people with disabilities in Minnesota who have been 
195.21 	disproportionately impacted by health and other inequities to be better equipped and prepared 
195.22 	for success in procuring grants and contracts at the department and addressing inequities.
195.23 	(b) The commissioner of health shall create a framework at the department to maintain 
195.24 	equitable practices in grantmaking to ensure that internal grantmaking and procurement 
195.25 	policies and practices prioritize equity, transparency, and accessibility to include:
195.26 	(1) a tracking system for the department to better monitor and evaluate equitable 
195.27 	procurement and grantmaking processes and their impacts; and
195.28 	(2) technical assistance and coaching to department leadership in grantmaking and 
195.29 	procurement processes and programs and providing tools and guidance to ensure equitable 
195.30 	and transparent competitive grantmaking processes and award distribution across 
195.31 	communities most impacted by inequities and develop measures to track progress over time.
195.32 		Subd. 2.Commissioner's duties. The commissioner of health shall:
196.1 	(1) in consultation with community stakeholders, community health boards and Tribal 
196.2 	nations, develop a request for proposals for infrastructure capacity building grant program 
196.3 	to help community-based organizations, including faith-based organizations, to be better 
196.4 	equipped and prepared for success in procuring grants and contracts at the department and 
196.5 	beyond;
196.6 	(2) provide outreach, technical assistance, and program development support to increase 
196.7 	capacity for new and existing community-based organizations and other service providers 
196.8 	in order to better meet statewide needs particularly in greater Minnesota and areas where 
196.9 	services to reduce health disparities have not been established;
196.10 	(3) in consultation with community stakeholders, review responses to requests for 
196.11 	proposals and award of grants under this section;
196.12 	(4) ensure communication with the ethnic councils, Minnesota Indian Affairs Council, 
196.13 	Minnesota Council on Disability, Minnesota Commission of the Deaf, Deafblind, and Hard 
196.14 	of Hearing, and the governor's office on the request for proposal process;
196.15 	(5) in consultation with community stakeholders, establish a transparent and objective 
196.16 	accountability process focused on outcomes that grantees agree to achieve;
196.17 	(6) maintain data on outcomes reported by grantees; and
196.18 	(7) establish a process or mechanism to evaluate the success of the capacity building 
196.19 	grant program and to build the evidence base for effective community-based organizational 
196.20 	capacity building in reducing disparities.
196.21 		Subd. 3.Eligible grantees. Organizations eligible to receive grant funding under this 
196.22 	section include: organizations or entities that work with diverse communities such populations 
196.23 	of color, American Indian, LGBTQIA+, and those with disabilities in metro and rural 
196.24 	communities.
196.25 		Subd. 4.Strategic consideration and priority of proposals; eligible populations;  
196.26 	grant awards. (a) The commissioner, in consultation with community stakeholders, shall 
196.27 	develop a request for proposals for equity in procurement and grantmaking capacity building 
196.28 	grant program to help community-based organizations, including faith-based organizations 
196.29 	to be better equipped and prepared for success in procuring grants and contracts at the 
196.30 	department and addressing inequities.
196.31 	(b) In awarding the grants, the commissioner shall provide strategic consideration and 
196.32 	give priority to proposals from organizations or entities led by populations of color, American 
197.1 	Indians and those serving communities of color, American Indians; LGBTQIA+, and 
197.2 	disability communities.
197.3 		Subd. 5.Geographic distribution of grants. The commissioner shall ensure that grant 
197.4 	funds are prioritized and awarded to organizations and entities that are within counties that 
197.5 	have a higher proportion of Black or African American, nonwhite Latino(a), LGBTQIA+, 
197.6 	and disability communities to the extent possible.
197.7 		Subd. 6.Report. Grantees must report grant program outcomes to the commissioner on 
197.8 	the forms and according to the timelines established by the commissioner.

197.9 	Sec. 46. [144.9981] CLIMATE RESILIENCY.
197.10 		Subdivision 1.Climate resiliency program. The commissioner of health shall implement 
197.11 	a climate resiliency program to:
197.12 	(1) increase awareness of climate change;
197.13 	(2) track the public health impacts of climate change and extreme weather events;
197.14 	(3) provide technical assistance and tools that support climate resiliency to local public 
197.15 	health, Tribal health, soil and water conservation districts, and other local governmental 
197.16 	and nongovernmental organizations; and
197.17 	(4) coordinate with the commissioners of the pollution control agency, natural resources, 
197.18 	and agriculture and other state agencies in climate resiliency related planning and 
197.19 	implementation.
197.20 		Subd. 2.Grants authorized; allocation. (a) The commissioner of health shall manage 
197.21 	a grant program for the purpose of climate resiliency planning. The commissioner shall 
197.22 	award grants through a request for proposals process to local public health, Tribal health, 
197.23 	soil and water conservation districts, or other local organizations for planning for the health 
197.24 	impacts of extreme weather events and developing adaptation actions. Priority shall be given 
197.25 	to organizations that serve communities that are disproportionately impacted by climate 
197.26 	change.
197.27 	(b) Grantees must use the funds to develop a plan or implement strategies that will reduce 
197.28 	the risk of health impacts from extreme weather events. The grant application must include:
197.29 	(1) a description of the plan or project for which the grant funds will be used;
197.30 	(2) a description of the pathway between the plan or project and its impacts on health;
197.31 	(3) a description of the objectives, a work plan, and a timeline for implementation; and
198.1 	(4) the community or group the grant proposes to focus on.

198.2 	Sec. 47. [145.361] LONG COVID AND RELATED CONDITIONS; ASSESSMENT 
198.3 	AND MONITORING.
198.4 		Subdivision 1.Definition. (a) For the purposes of this section, the following terms have 
198.5 	the meanings given.
198.6 	(b) "Long COVID" means health problems that people experience four or more weeks 
198.7 	after being infected with SARS-CoV-2, the virus that causes COVID-19. Long COVID is 
198.8 	also called post-COVID conditions, long-haul COVID, chronic COVID, post-acute COVID, 
198.9 	or post-acute sequelae of COVID-19 (PASC).
198.10 	(c) "Related conditions" means conditions related to or similar to long COVID, including 
198.11 	but not limited to myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS) and 
198.12 	dysautonomia, and postural orthostatic tachycardia syndrome (POTS).
198.13 		Subd. 2.Establishment. The commissioner of health shall establish a program to conduct 
198.14 	community assessments and epidemiologic investigations to monitor and address impacts 
198.15 	of long COVID and related conditions. The purposes of these activities are to:
198.16 	(1) monitor trends in: incidence, prevalence, mortality, and health outcomes;  changes 
198.17 	in disability status, employment, and quality of life; and service needs of individuals with 
198.18 	long COVID or related conditions and to detect potential public health problems, predict 
198.19 	risks, and assist in investigating long COVID and related conditions health inequities;
198.20 	(2) more accurately target information and resources for communities and patients and 
198.21 	their families;
198.22 	(3) inform health professionals and citizens about risks and early detection;
198.23 	(4) promote evidence-based practices around long COVID and related conditions 
198.24 	prevention and management and to address public concerns and questions about long COVID 
198.25 	and related conditions; and
198.26 	(5) research and track related conditions.
198.27 		Subd. 3.Partnerships. The commissioner of health shall, in consultation with health 
198.28 	care professionals, the commissioner of human services, local public health entities, health 
198.29 	insurers, employers, schools, survivors of long COVID or related conditions, and community 
198.30 	organizations serving people at high risk of long COVID or related conditions, identify 
198.31 	priority actions and activities to address the needs for communication, services, resources, 
199.1 	tools, strategies, and policies to support survivors of long COVID or related conditions and 
199.2 	their families.
199.3 		Subd. 4.Grants and contracts. The commissioner of health shall coordinate and 
199.4 	collaborate with community and organizational partners to implement evidence-informed 
199.5 	priority actions through community-based grants and contracts. The commissioner of health 
199.6 	shall award grants and enter into contracts to organizations that serve communities 
199.7 	disproportionately impacted by COVID-19, long COVID, or related conditions, including 
199.8 	but not limited to rural and low-income areas, Black and African Americans, African 
199.9 	immigrants, American Indians, Asian American-Pacific Islanders, Latino(a), LGBTQ+, and 
199.10 	persons with disabilities. Organizations may also address intersectionality within the groups. 
199.11 	The commissioner shall award grants and award contracts to eligible organizations to plan, 
199.12 	construct, and disseminate resources and information to support survivors of long COVID 
199.13 	or related conditions, including caregivers, health care providers, ancillary health care 
199.14 	workers, workplaces, schools, communities, and local and Tribal public health.

199.15 	Sec. 48. [145.561] 988 SUICIDE AND CRISIS LIFELINE.
199.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
199.17 	apply.
199.18 	(b) "Commissioner" means the commissioner of health.
199.19 	(c) "Department" means the Department of Health.
199.20 	(d) "Lifeline center" means a state-identified center that is a member of the Suicide and 
199.21 	Crisis Lifeline network that responds to statewide or regional 988 contacts.
199.22 	(e) "988" or "988 hotline" means the universal telephone number for the national suicide 
199.23 	prevention and mental health crisis hotline system within the United States operating through 
199.24 	the Suicide and Crisis Lifeline, or its successor, maintained by the assistant secretary for 
199.25 	mental health and substance use under section 520E-2 of the Public Health Service Act.
199.26 	(f) "988 administrator" means the administrator of the 988 Suicide and Crisis Lifeline 
199.27 	maintained by the assistant secretary for mental health and substance use under section 
199.28 	520E-3 of the Public Health Service Act.
199.29 	(g) "988 contact" means a communication with the 988 national suicide prevention and 
199.30 	mental health crisis hotline system within the United States via modalities offered that may 
199.31 	include call, chat, or text.
200.1 	(h) "Veterans Crisis Line" means the Veterans Crisis Line maintained by the secretary 
200.2 	of veterans affairs under United States Code, title 38, section 170F(h).
200.3 		Subd. 2.988 hotline; lifeline centers. (a) The commissioner shall administer the 
200.4 	designation of and oversee a lifeline center or network of lifeline centers to answer 988 
200.5 	contacts from individuals accessing the Suicide and Crisis Lifeline from any location in 
200.6 	Minnesota 24 hours per day, seven days per week.
200.7 	(b) The designated lifeline center or centers must:
200.8 	(1) have an active agreement with the 988 administrator for participation within the 
200.9 	network and with the department;
200.10 	(2) meet the 988 administrator's requirements and best practice guidelines for operational 
200.11 	and clinical standards;
200.12 	(3) provide data, engage in reporting, and participate in evaluations and related quality 
200.13 	improvement activities as required by the 988 administrator and the department;
200.14 	(4) identify or adapt technology that is demonstrated to be interoperable across crisis 
200.15 	and emergency response systems used in the state for the purpose of crisis care coordination;
200.16 	(5) connect people to crisis response and outgoing services, including mobile crisis 
200.17 	teams, in accordance with guidelines established by the 988 administrator and the department 
200.18 	and in collaboration with the Department of Human Services;
200.19 	(6) actively collaborate and coordinate service linkages with mental health and substance 
200.20 	use disorder treatment providers; local community mental health centers, including certified 
200.21 	community behavioral health clinics and community behavioral health centers; mobile crisis 
200.22 	teams; and emergency departments;
200.23 	(7) offer follow-up services to individuals accessing the lifeline center that are consistent 
200.24 	with guidelines established by the 988 administrator and the department; and
200.25 	(8) meet requirements set by the 988 administrator and the department for serving 
200.26 	high-risk and specialized populations and culturally or ethnically diverse populations.
200.27 	(c) The commissioner shall use the commissioner's rulemaking authority to allow 
200.28 	appropriate information sharing and communication between and across crisis and emergency 
200.29 	response systems.
200.30 	(d) The commissioner, having primary oversight of suicide prevention, shall work with 
200.31 	the Suicide and Crisis Lifeline, Veterans Crisis Line, and other SAMHSA-approved networks 
200.32 	to ensure consistency of public messaging about 988 services. The commissioner may 
201.1 	engage in activities to publicize and raise awareness about 988 services, or may provide 
201.2 	grants to other organizations for these purposes.
201.3 	(e) The commissioner shall provide an annual report to the legislature on usage of the 
201.4 	988 hotline, including answer rates, rates of abandoned calls, and referral rates to 911 
201.5 	emergency response and to mental health crisis teams. Notwithstanding section 144.05, 
201.6 	subdivision 7, the reports required under this paragraph do not expire.
201.7 		Subd. 3.988 special revenue account. (a) A 988 special revenue account is established 
201.8 	as a dedicated account in the special revenue fund to create and maintain a statewide 988 
201.9 	suicide prevention crisis system according to the National Suicide Hotline Designation Act 
201.10 	of 2020, the Federal Communications Commission's report and order FCC 20-100 adopted 
201.11 	July 16, 2020, and national guidelines for crisis care.
201.12 	(b) The 988 special revenue account shall consist of:
201.13 	(1) a 988 telecommunications fee imposed under subdivision 4;
201.14 	(2) a prepaid wireless 988 fee imposed under section 403.161;
201.15 	(3) transfers of state money into the account;
201.16 	(4) grants and gifts intended for deposit in the account;
201.17 	(5) interest, premiums, gains, and other earnings of the account; and
201.18 	(6) money from any other source that is deposited in or transferred to the account.
201.19 	(c) The account shall be administered by the commissioner. Money in the account shall 
201.20 	only be used to offset costs that are or may reasonably be attributed to:
201.21 	(1) implementing, maintaining, and improving the 988 suicide and crisis lifeline, including 
201.22 	staff and technology infrastructure enhancements needed to achieve the operational standards 
201.23 	and best practices set forth by the 988 administrator and the department;
201.24 	(2) data collection, reporting, participation in evaluations, public promotion, and related 
201.25 	quality improvement activities as required by the 988 administrator and the department; 
201.26 	and
201.27 	(3) administration, oversight, and evaluation of the account.
201.28 	(d) Money in the account:
201.29 	(1) does not cancel at the end of any state fiscal year and is carried forward in subsequent 
201.30 	state fiscal years;
202.1 	(2) is not subject to transfer to any other account or fund or to transfer, assignment, or 
202.2 	reassignment for any use or purpose other than the purposes specified in this subdivision; 
202.3 	and
202.4 	(3) is appropriated to the commissioner for the purposes specified in this subdivision.
202.5 	(e) The commissioner shall submit an annual report to the legislature and to the Federal 
202.6 	Communications Commission on deposits to and expenditures from the account. 
202.7 	Notwithstanding section 144.05, subdivision 7, the reports required under this paragraph 
202.8 	do not expire.
202.9 		Subd. 4.988 telecommunications fee. (a) In compliance with the National Suicide 
202.10 	Hotline Designation Act of 2020, the commissioner shall impose a monthly statewide fee 
202.11 	on each subscriber of a wireline, wireless, or IP-enabled voice service at a rate that provides 
202.12 	for the robust creation, operation, and maintenance of a statewide 988 suicide prevention 
202.13 	and crisis system.
202.14 	(b) The commissioner shall annually recommend to the Public Utilities Commission an 
202.15 	adequate and appropriate fee to implement this section. The amount of the fee must comply 
202.16 	with the limits in paragraph (c). The commissioner shall provide telecommunication service 
202.17 	providers and carriers a minimum of 30 days' notice of each fee change.
202.18 	(c) The amount of the 988 telecommunications fee must not be more than 25 cents per 
202.19 	month on or after January 1, 2024, for each consumer access line, including trunk equivalents 
202.20 	as designated by the commission pursuant to section 403.11, subdivision 1. The 988 
202.21 	telecommunications fee must be the same for all subscribers.
202.22 	(d) Each wireline, wireless, and IP-enabled voice telecommunication service provider 
202.23 	shall collect the 988 telecommunications fee and transfer the amounts collected to the 
202.24 	commissioner of public safety in the same manner as provided in section 403.11, subdivision 
202.25 	1, paragraph (d).
202.26 	(e) The commissioner of public safety shall deposit the money collected from the 988 
202.27 	telecommunications fee to the 988 special revenue account established in subdivision 3.
202.28 	(f) All 988 telecommunications fee revenue must be used to supplement, and not supplant, 
202.29 	federal, state, and local funding for suicide prevention.
202.30 	(g) The 988 telecommunications fee amount shall be adjusted as needed to provide for 
202.31 	continuous operation of the lifeline centers and 988 hotline, volume increases, and 
202.32 	maintenance.
203.1 	(h) The commissioner shall annually report to the Federal Communications Commission 
203.2 	on revenue generated by the 988 telecommunications fee.
203.3 		Subd. 5.988 fee for prepaid wireless telecommunications services. (a) The 988 
203.4 	telecommunications fee established in subdivision 4 does not apply to prepaid wireless 
203.5 	telecommunications services. Prepaid wireless telecommunications services are subject to 
203.6 	the prepaid wireless 988 fee established in section 403.161, subdivision 1, paragraph (c).
203.7 	(b) Collection, remittance, and deposit of prepaid wireless 988 fees are governed by 
203.8 	sections 403.161 and 403.162.
203.9 		Subd. 6.Biennial budget; annual financial report. The commissioner must prepare a 
203.10 	biennial budget for maintaining the 988 system. By December 15 of each year, the 
203.11 	commissioner must submit a report to the legislature detailing the expenditures for 
203.12 	maintaining the 988 system, the 988 fees collected, the balance of the 988 fund, the 
203.13 	988-related administrative expenses, and the most recent forecast of revenues and 
203.14 	expenditures for the 988 special revenue account, including a separate projection of 988 
203.15 	fees from prepaid wireless customers and projections of year-end fund balances.
203.16 		Subd. 7.Waiver. A wireless telecommunications service provider or wire-line 
203.17 	telecommunications service provider may petition the commissioner for a waiver of all or 
203.18 	portions of the requirements of this section. The commissioner may grant a waiver upon a 
203.19 	demonstration by the petitioner that the requirement is economically infeasible.

203.20 	Sec. 49. Minnesota Statutes 2022, section 145.87, subdivision 4, is amended to read:
203.21 		Subd. 4.Administrative costs Administration. The commissioner may use up to seven 
203.22 	percent of the annual appropriation under this section to provide training and technical 
203.23 	assistance and to administer and evaluate the program. The commissioner may contract for 
203.24 	training, capacity-building support for grantees or potential grantees, technical assistance, 
203.25 	and evaluation support.

203.26 	Sec. 50. [145.9011] FETAL AND INFANT DEATH STUDIES.
203.27 		Subdivision 1.Access to data. (a) For purposes of this section, the subject of the data 
203.28 	is defined as any of the following:
203.29 	(1) a live born infant that died within the first year of life;
203.30 	(2) a fetal death which meets the criteria required for reporting as defined in section 
203.31 	144.222; or
204.1 	(3) the biological mother of an infant as defined in clause (1) or of a fetal death as defined 
204.2 	in clause (2).
204.3 	(b) To conduct fetal and infant death studies, the commissioner of health must have 
204.4 	access to:
204.5 	(1) medical data as defined in section 13.384, subdivision 1, paragraph (b); medical 
204.6 	examiner data as defined in section 13.83, subdivision 1; and health records created, 
204.7 	maintained, or stored by providers as defined in section 144.291, subdivision 2, paragraph 
204.8 	(i), on the subject of the data;
204.9 	(2) data on health and social support services, including but not limited to family home 
204.10 	visiting programs and the women, infants, and children (WIC) program; prescription 
204.11 	monitoring programs data; and data on behavioral health services, on the subject of the data;
204.12 	(3) the name of a health care provider that provided prenatal, postpartum, pediatric, and 
204.13 	other health services to the subject of the data, which must be provided by a coroner or 
204.14 	medical examiner; and
204.15 	(4) Department of Human Services and other state agency data to identify and receive 
204.16 	information on the types and nature of other sources of care and social support received by 
204.17 	the subject of the data, and parents and guardians of the subject of the data, to assist with 
204.18 	evaluation of social service systems.
204.19 	(c) When necessary to conduct a fetal and infant death study, the commissioner must 
204.20 	have access to:
204.21 	(1) data described in this subdivision relevant to fetal and infant death studies from 
204.22 	before, during, and after pregnancy or birth for the subject of the data; and
204.23 	(2) law enforcement reports or incident reports related to the subject of the data and 
204.24 	must receive the reports when requested from law enforcement.
204.25 	(d) The commissioner does not have access to coroner or medical examiner data that 
204.26 	are part of an active investigation as described in section 13.83.
204.27 	(e) The commissioner must have access to all data described within this section without 
204.28 	the consent of the subject of the data and without the consent of the parent, other guardian, 
204.29 	or legal representative of the subject of the data. The commissioner has access to the data 
204.30 	in this subdivision to study fetal or infant deaths that occur on or after July 1, 2021.
204.31 	(f) The commissioner must make a good faith reasonable effort to notify the subject of 
204.32 	the data, parent, spouse, other guardian, or legal representative of the subject of the data 
205.1 	before collecting data on the subject of the data. For purposes of this paragraph, "reasonable 
205.2 	effort" means one notice is sent by certified mail to the last known address of the subject 
205.3 	of the data, parent, spouse, other guardian, or legal representative informing of the data 
205.4 	collection and offering a public health nurse support visit if desired.
205.5 		Subd. 2.Management of records. After the commissioner has collected all data about 
205.6 	the subject of a fetal or infant death study necessary to perform the study, the data extracted 
205.7 	from source records obtained under subdivision 2, other than data identifying the subject 
205.8 	of the data, must be transferred to separate records that must be maintained by the 
205.9 	commissioner. Notwithstanding section 138.17, after the data have been transferred, all 
205.10 	source records obtained under subdivision 2 that are possessed by the commissioner must 
205.11 	be destroyed.
205.12 		Subd. 3.Classification of data. (a) Data provided to the commissioner from source 
205.13 	records under subdivision 2, including identifying information on individual providers, 
205.14 	subjects of the data, their family, or guardians, and data derived by the commissioner under 
205.15 	subdivision 3 for the purpose of carrying out fetal or infant death studies, are classified as 
205.16 	confidential data on individuals or confidential data on decedents, as defined in sections 
205.17 	13.02, subdivision 3, and 13.10, subdivision 1, paragraph (a).
205.18 	(b) Data classified under subdivision 4, paragraph (a), must not be subject to discovery 
205.19 	or introduction into evidence in any administrative, civil, or criminal proceeding. Such 
205.20 	information otherwise available from an original source must not be immune from discovery 
205.21 	or barred from introduction into evidence merely because it was utilized by the commissioner 
205.22 	in carrying out fetal or infant death studies.
205.23 	(c) Summary data on fetal and infant death studies created by the commissioner, which 
205.24 	does not identify individual subjects of the data, their families, guardians, or individual 
205.25 	providers, must be public in accordance with section 13.05, subdivision 7.
205.26 	(d) Data provided by the commissioner of human services or other state agency to the 
205.27 	commissioner of health under this section retains the same classification as the data held 
205.28 	when retained by the commissioner of human services, as required under section 13.03, 
205.29 	subdivision 4, paragraph (c).
205.30 		Subd. 4.Fetal and infant mortality reviews. (a) The commissioner of health must 
205.31 	convene case review committees to conduct death study reviews, make recommendations, 
205.32 	and publicly share summary information, especially for and about racial and ethnic groups, 
205.33 	including American Indians and African Americans, that experience significantly disparate 
205.34 	rates of fetal and infant mortality.
206.1 	(b) The case review committees may include, but are not limited to, medical examiners 
206.2 	or coroners, representative from health care institutions that provide care to pregnant people 
206.3 	and infants, obstetric and pediatric practitioners, Medicaid representatives, state agency 
206.4 	women and infant program representatives, and individuals from the communities that 
206.5 	experience disparate rates of fetal and infant deaths, and other subject matter experts as 
206.6 	necessary.
206.7 	(c) The case review committees will review data from source records obtained under 
206.8 	subdivision 2, other than data identifying the subject, the subject's family, or guardians, or 
206.9 	the provider involved in the care of the subject.
206.10 	(d) A person attending a fetal and infant mortality review committee meeting must not 
206.11 	disclose what transpired at the meeting, except as necessary to carry out the purposes of the 
206.12 	review committee. The proceedings and records of the review committee are protected 
206.13 	nonpublic data as defined in section 13.02, subdivision 13. Discovery and introduction into 
206.14 	evidence in legal proceedings of case review committee proceedings and records, and 
206.15 	testimony in legal proceedings by review committee members and persons presenting 
206.16 	information to the review committee, must occur in compliance with the requirements in 
206.17 	section 256.01, subdivision 12, paragraph (e).
206.18 	(e) Every three years beginning December 1, 2024, the case review committees will 
206.19 	provide findings and recommendations to the Maternal and Child Health Advisory Task 
206.20 	Force and the commissioner from the committee's review of fetal and infant deaths and 
206.21 	provide specific recommendations designed to reduce population-based disparities in fetal 
206.22 	and infant deaths.
206.23 	(f) This paragraph governs case review committee member compensation and expense 
206.24 	reimbursement, notwithstanding any other law or policy to the contrary. Members of the 
206.25 	case review committee must be compensated by the commissioner of health for actual time 
206.26 	spent in work on case reviews at a per diem rate established by the commissioner of health 
206.27 	according to funding availability. Compensable time includes preparation for case reviews, 
206.28 	time spent on collaborative review, including subcommittee meetings, committee meetings, 
206.29 	and other preparation work for the committee review as identified by the commissioner of 
206.30 	health. Members must also be reimbursed for expenses in the same manner and amount as 
206.31 	provided in the Department of Management and Budget's commissioner's plan under section 
206.32 	43A.18, subdivision 2. To receive compensation or reimbursement, committee members 
206.33 	must invoice the Department of Health on an invoice form provided by the commissioner.
207.1 		Subd. 5.Expiration. Notwithstanding any other law or policy to the contrary, the fetal 
207.2 	and infant mortality review committee must not expire.

207.3 	Sec. 51. [145.903] SCHOOL-BASED HEALTH CENTERS.
207.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
207.5 	the meanings given.
207.6 	(b) "School-based health center" or "comprehensive school-based health center" means 
207.7 	a safety net health care delivery model that is located in or near a school facility and that 
207.8 	offers comprehensive health care, including preventive and behavioral health services, 
207.9 	provided by licensed and qualified health professionals in accordance with federal, state, 
207.10 	and local law. When not located on school property, the school-based health center must 
207.11 	have an established relationship with one or more schools in the community and operate to 
207.12 	primarily serve those student groups.
207.13 	(c) "Sponsoring organization" means any of the following that operate a school-based 
207.14 	health center:
207.15 	(1) health care providers;
207.16 	(2) community clinics;
207.17 	(3) hospitals;
207.18 	(4) federally qualified health centers and look-alikes as defined in section 145.9269;
207.19 	(5) health care foundations or nonprofit organizations;
207.20 	(6) higher education institutions; or
207.21 	(7) local health departments.
207.22 		Subd. 2.Expansion of Minnesota school-based health centers. (a) The commissioner 
207.23 	of health shall administer a program to provide grants to school districts and school-based 
207.24 	health centers to support existing centers and facilitate the growth of school-based health 
207.25 	centers in Minnesota.
207.26 	(b) Grant funds distributed under this subdivision shall be used to support new or existing 
207.27 	school-based health centers that:
207.28 	(1) operate in partnership with a school or school district and with the permission of the 
207.29 	school or school district board;
207.30 	(2) provide health services through a sponsoring organization that meets the requirements 
207.31 	in subdivision 1, paragraph (c); and
208.1 	(3) provide health services to all students and youth within a school or school district, 
208.2 	regardless of ability to pay, insurance coverage, or immigration status, and in accordance 
208.3 	with federal, state, and local law.
208.4 	(c) The commissioner of health shall administer a grant to a nonprofit organization to 
208.5 	facilitate a community of practice among school-based health centers to improve quality, 
208.6 	equity, and sustainability of care delivered through school-based health centers; encourage 
208.7 	cross-sharing among school-based health centers; support existing clinics; and expand 
208.8 	school-based health centers in new communities in Minnesota.
208.9 	(d) Grant recipients shall report their activities and annual performance measures as 
208.10 	defined by the commissioner in a format and time specified by the commissioner.
208.11 	(e) The commissioners of health and of education shall coordinate the projects and 
208.12 	initiatives funded under this section with other efforts at the local, state, or national level 
208.13 	to avoid duplication and promote coordinated efforts.
208.14 		Subd. 3.School-based health center services. (a) Services provided by a school-based 
208.15 	health center may include but are not limited to:
208.16 	(1) preventive health care;
208.17 	(2) chronic medical condition management, including diabetes and asthma care;
208.18 	(3) mental health care and crisis management;
208.19 	(4) acute care for illness and injury;
208.20 	(5) oral health care;
208.21 	(6) vision care;
208.22 	(7) nutritional counseling;
208.23 	(8) substance abuse counseling;
208.24 	(9) referral to a specialist, medical home, or hospital for care;
208.25 	(10) additional services that address social determinants of health; and
208.26 	(11) emerging services such as mobile health and telehealth.
208.27 	(b) Services provided by a school-based health center must not replace the daily student 
208.28 	support provided in the school by educational student service providers, including but not 
208.29 	limited to licensed school nurses, educational psychologists, school social workers, and 
208.30 	school counselors.
209.1 		Subd. 4.Sponsoring organizations. A sponsoring organization that agrees to operate 
209.2 	a school-based health center must enter into a memorandum of agreement with the school 
209.3 	or school district. The memorandum of agreement must require the sponsoring organization 
209.4 	to be financially responsible for the operation of school-based health centers in the school 
209.5 	or school district and must identify the costs that are the responsibility of the school or 
209.6 	school district, such as Internet access, custodial services, utilities, and facility maintenance. 
209.7 	To the greatest extent possible, a sponsoring organization must bill private insurers, medical 
209.8 	assistance, and other public programs for services provided in the school-based health 
209.9 	centers in order to maintain the financial sustainability of school-based health centers.

209.10 	Sec. 52. Minnesota Statutes 2022, section 145.924, is amended to read:
209.11 	145.924 AIDS HIV PREVENTION GRANTS.
209.12 	(a) The commissioner may award grants to community health boards as defined in section 
209.13 	145A.02, subdivision 5, state agencies, state councils, or nonprofit corporations to provide 
209.14 	evaluation and counseling services to populations at risk for acquiring human 
209.15 	immunodeficiency virus infection, including, but not limited to, minorities communities of 
209.16 	color, adolescents, intravenous drug users women, people who inject drugs, and homosexual 
209.17 	men gay, bisexual, and transgender individuals.
209.18 	(b) The commissioner may award grants to agencies experienced in providing services 
209.19 	to communities of color, for the design of innovative outreach and education programs for 
209.20 	targeted groups within the community who may be at risk of acquiring the human 
209.21 	immunodeficiency virus infection, including intravenous drug users people who inject drugs
209.22 	and their partners, adolescents, women, and gay and, bisexual, and transgender individuals 
209.23 	and women. Grants shall be awarded on a request for proposal basis and shall include funds 
209.24 	for administrative costs. Priority for grants shall be given to agencies or organizations that 
209.25 	have experience in providing service to the particular community which the grantee proposes 
209.26 	to serve; that have policy makers representative of the targeted population; that have 
209.27 	experience in dealing with issues relating to HIV/AIDS; and that have the capacity to deal 
209.28 	effectively with persons of differing sexual orientations. For purposes of this paragraph, 
209.29 	the "communities of color" are: the American-Indian community; the Hispanic community; 
209.30 	the African-American community; and the Asian-Pacific Islander community.
209.31 	(c) All state grants awarded under this section for programs targeted to adolescents shall 
209.32 	include the promotion of abstinence from sexual activity and drug use.
209.33 	(d) The commissioner shall administer a grant program to provide funds to organizations, 
209.34 	including Tribal health agencies, to assist with HIV outbreaks.

210.1 	Sec. 53. [145.9275] SKIN-LIGHTENING PRODUCTS PUBLIC AWARENESS AND 
210.2 	EDUCATION GRANT PROGRAM.
210.3 		Subdivision 1.Grant program. The commissioner of health shall award grants through 
210.4 	a request for proposal process to community-based organizations that serve ethnic 
210.5 	communities and focus on public health outreach to Black and people of color communities 
210.6 	on the issues of colorism, skin-lightening products, and chemical exposures from these 
210.7 	products. Priority in awarding grants shall be given to organizations that have historically 
210.8 	provided services to ethnic communities on the skin-lightening and chemical exposure issue 
210.9 	for the past four years.
210.10 		Subd. 2.Uses of grant funds. Grant recipients must use grant funds awarded under this 
210.11 	section to conduct public awareness and education activities that are culturally specific and 
210.12 	community-based and that focus on:
210.13 	(1) increasing public awareness and providing education on the health dangers associated 
210.14 	with using skin-lightening creams and products that contain mercury and hydroquinone and 
210.15 	are manufactured in other countries, brought into this country, and sold illegally online or 
210.16 	in stores; the dangers of exposure to mercury through dermal absorption, inhalation, 
210.17 	hand-to-mouth contact, and contact with individuals who have used these skin-lightening 
210.18 	products; the health effects of mercury poisoning, including the permanent effects on the 
210.19 	central nervous system and kidneys; and the dangers to mothers and infants from using 
210.20 	these products or being exposed to these products during pregnancy and while breastfeeding;
210.21 	(2) identifying products that contain mercury and hydroquinone by testing skin-lightening 
210.22 	products;
210.23 	(3) developing a train-the-trainer curriculum to increase community knowledge and 
210.24 	influence behavior changes by training community leaders, cultural brokers, community 
210.25 	health workers, and educators;
210.26 	(4) continuing to build the self-esteem and overall wellness of young people who are 
210.27 	using skin-lightening products or are at risk of starting the practice of skin lightening; and
210.28 	(5) building the capacity of community-based organizations to continue to combat 
210.29 	skin-lightening practices and chemical exposure.

210.30 	Sec. 54. [145.9571] HEALTHY BEGINNINGS, HEALTHY FAMILIES ACT.
210.31 	Sections 145.9571 to 145.9576 are the Healthy Beginnings, Healthy Families Act.

211.1 	Sec. 55. [145.9572] MINNESOTA PERINATAL QUALITY COLLABORATIVE.
211.2 		Subdivision 1.Duties. The Minnesota perinatal quality collaborative is established to 
211.3 	improve pregnancy outcomes for pregnant people and newborns through efforts to:
211.4 	(1) advance evidence-based and evidence-informed clinics and other health service 
211.5 	practices and processes through quality care review, chart audits, and continuous quality 
211.6 	improvement initiatives that enable equitable outcomes;
211.7 	(2) review current data, trends, and research on best practices to inform and prioritize 
211.8 	quality improvement initiatives;
211.9 	(3) identify methods that incorporate antiracism into individual practice and organizational 
211.10 	guidelines in the delivery of perinatal health services;
211.11 	(4) support quality improvement initiatives to address substance use disorders in pregnant 
211.12 	people and infants with neonatal abstinence syndrome or other effects of substance use;
211.13 	(5) provide a forum to discuss state-specific system and policy issues to guide quality 
211.14 	improvement efforts that improve population-level perinatal outcomes;
211.15 	(6) reach providers and institutions in a multidisciplinary, collaborative, and coordinated 
211.16 	effort across system organizations to reinforce a continuum of care model; and
211.17 	(7) support health care facilities in monitoring interventions through rapid data collection 
211.18 	and applying system changes to provide improved care in perinatal health.
211.19 		Subd. 2.Grants authorized. The commissioner must award one grant to a nonprofit 
211.20 	organization to support efforts that improve maternal and infant health outcomes aligned 
211.21 	with the purpose outlined in subdivision 1. The commissioner must give preference to a 
211.22 	nonprofit organization that has the ability to provide these services throughout the state. 
211.23 	The commissioner must provide content expertise to the grant recipient to further the 
211.24 	accomplishment of the purpose.

211.25 	Sec. 56. [145.9573] MINNESOTA PARTNERSHIP TO PREVENT INFANT 
211.26 	MORTALITY.
211.27 	(a) The commissioner of health must establish the Minnesota partnership to prevent 
211.28 	infant mortality program that is a statewide partnership program to engage communities, 
211.29 	exchange best practices, share summary data on infant health, and promote policies to 
211.30 	improve birth outcomes and eliminate preventable infant mortality.
211.31 	(b) The goal of the Minnesota partnership to prevent infant mortality program is to:
212.1 	(1) build a statewide multisectoral partnership including the state government, local 
212.2 	public health agencies, Tribes, private sector, and community nonprofit organizations with 
212.3 	the shared goal of decreasing infant mortality rates among populations with significant 
212.4 	disparities, including among Black, American Indian, other nonwhite communities, and 
212.5 	rural populations;
212.6 	(2) address the leading causes of poor infant health outcomes such as premature birth, 
212.7 	infant sleep-related deaths, and congenital anomalies through strategies to change social 
212.8 	and environmental determinants of health; and
212.9 	(3) promote the development, availability, and use of data-informed, community-driven 
212.10 	strategies to improve infant health outcomes.

212.11 	Sec. 57. [145.9574] GRANTS.
212.12 		Subdivision 1.Improving pregnancy and infant outcomes grant. The commissioner 
212.13 	of health must make a grant to a nonprofit organization to create or sustain a multidisciplinary 
212.14 	network of representatives of health care systems, health care providers, academic institutions, 
212.15 	local and state agencies, and community partners that will collaboratively improve pregnancy 
212.16 	and infant outcomes through evidence-based, population-level quality improvement 
212.17 	initiatives.
212.18 		Subd. 2.Improving infant health grants. (a) The commissioner of health must award 
212.19 	grants to eligible applicants to convene, coordinate, and implement data-driven strategies 
212.20 	and culturally relevant activities to improve infant health by reducing preterm birth, 
212.21 	sleep-related infant deaths, and congenital malformations and address social and 
212.22 	environmental determinants of health. Grants must be awarded to support community 
212.23 	nonprofit organizations, Tribal governments, and community health boards. In accordance 
212.24 	with available funding, grants must be noncompetitively awarded to the eleven sovereign 
212.25 	Tribal governments if their respective proposals demonstrate the ability to implement 
212.26 	programs designed to achieve the purposes in subdivision 1 and meet other requirements 
212.27 	of this section. An eligible applicant must submit a complete application to the commissioner 
212.28 	of health by the deadline established by the commissioner. The commissioner must award 
212.29 	all other grants competitively to eligible applicants in metropolitan and rural areas of the 
212.30 	state and may consider geographic representation in grant awards.
212.31 	(b) Grantee activities must:
212.32 	(1) address the leading cause or causes of infant mortality;
212.33 	(2) be based on community input;
213.1 	(3) focus on policy, systems, and environmental changes that support infant health; and
213.2 	(4) address the health disparities and inequities that are experienced in the grantee's 
213.3 	community.
213.4 	(c) The commissioner must review each application to determine whether the application 
213.5 	is complete and whether the applicant and the project are eligible for a grant. In evaluating 
213.6 	applications according to this subdivision, the commissioner must establish criteria including 
213.7 	but not limited to: the eligibility of the applicant's project under this section; the applicant's 
213.8 	thoroughness and clarity in describing the infant health issues grant funds are intended to 
213.9 	address; a description of the applicant's proposed project; the project's likelihood to achieve 
213.10 	the grant's purposes as described in this section; a description of the population demographics 
213.11 	and service area of the proposed project; and evidence of efficiencies and effectiveness 
213.12 	gained through collaborative efforts.
213.13 	(d) Grant recipients must report their activities to the commissioner in a format and at 
213.14 	a time specified by the commissioner.
213.15 		Subd. 3.Technical assistance. (a) The commissioner must provide grant recipients 
213.16 	receiving a grant under sections 145.9572 to 145.9576 with content expertise, technical 
213.17 	expertise, training, and advice on data-driven strategies.
213.18 	(b) For the purposes of carrying out the grant program under section 145.9573, including 
213.19 	for administrative purposes, the commissioner must award contracts to appropriate entities 
213.20 	to assist in training and provide technical assistance to grantees.
213.21 	(c) Contracts awarded under paragraph (b) may be used to provide technical assistance 
213.22 	and training in the areas of:
213.23 	(1) partnership development and capacity building;
213.24 	(2) Tribal support;
213.25 	(3) implementation support for specific infant health strategies;
213.26 	(4) communications by convening and sharing lessons learned; and
213.27 	(5) health equity.

213.28 	Sec. 58. [145.9575] DEVELOPMENTAL AND SOCIAL-EMOTIONAL SCREENING 
213.29 	WITH FOLLOW-UP.
213.30 		Subdivision 1.Developmental and social-emotional screening with follow-up. The 
213.31 	goal of the developmental and social-emotional screening is to identify young children at 
214.1 	risk for developmental and behavioral concerns and provide follow-up services to connect 
214.2 	families and young children to appropriate community-based resources and programs. The 
214.3 	commissioner of health must work with the commissioners of human services and education 
214.4 	to implement this section and promote interagency coordination with other early childhood 
214.5 	programs including those that provide screening and assessment.
214.6 		Subd. 2.Duties. The commissioner must:
214.7 	(1) increase the awareness of developmental and social-emotional screening with 
214.8 	follow-up in coordination with community and state partners;
214.9 	(2) expand existing electronic screening systems to administer developmental and 
214.10 	social-emotional screening to children from birth to kindergarten entrance;
214.11 	(3) provide screening for developmental and social-emotional delays based on current 
214.12 	recommended best practices;
214.13 	(4) review and share the results of the screening with the parent or guardian and support 
214.14 	families in their role as caregivers by providing anticipatory guidance around typical growth 
214.15 	and development;
214.16 	(5) ensure children and families are referred to and linked with appropriate 
214.17 	community-based services and resources when any developmental or social-emotional 
214.18 	concerns are identified through screening; and
214.19 	(6) establish performance measures and collect, analyze, and share program data regarding 
214.20 	population-level outcomes of developmental and social-emotional screening, referrals to 
214.21 	community-based services, and follow-up services.
214.22 		Subd. 3.Grants. The commissioner must award grants to community-based 
214.23 	organizations, community health boards, and Tribal Nations to support follow-up services 
214.24 	for children with developmental or social-emotional concerns identified through screening 
214.25 	in order to link children and their families to appropriate community-based services and 
214.26 	resources. Grants must also be awarded to community-based organizations to train and 
214.27 	utilize cultural liaisons to help families navigate the screening and follow-up process in a 
214.28 	culturally and linguistically responsive manner. The commissioner must provide technical 
214.29 	assistance, content expertise, and training to grant recipients to ensure that follow-up services 
214.30 	are effectively provided.

215.1 	Sec. 59. [145.9576] MODEL JAIL PRACTICES.
215.2 		Subdivision 1.Model jail practices for incarcerated parents. (a) The commissioner 
215.3 	of health may make special grants to counties and groups of counties to implement model 
215.4 	jail practices and to county governments, Tribal governments, or nonprofit organizations 
215.5 	in corresponding geographic areas to build partnerships with county jails to support children 
215.6 	of incarcerated parents and their caregivers.
215.7 	(b) "Model jail practices" means a set of practices that correctional administrators can 
215.8 	implement to remove barriers that may prevent children from cultivating or maintaining 
215.9 	relationships with their incarcerated parents during and immediately after incarceration 
215.10 	without compromising the safety or security of the correctional facility.
215.11 		Subd. 2.Grants authorized; model jail practices. (a) The commissioner of health must 
215.12 	award grants to eligible county jails to implement model jail practices and separate grants 
215.13 	to county governments, Tribal governments, or nonprofit organizations in corresponding 
215.14 	geographic areas to build partnerships with county jails to support children of incarcerated 
215.15 	parents and their caregivers.
215.16 	(b) Grantee activities include but are not limited to:
215.17 	(1) parenting classes or groups;
215.18 	(2) family-centered intake and assessment of inmate programs;
215.19 	(3) family notification, information, and communication strategies;
215.20 	(4) correctional staff training;
215.21 	(5) policies and practices for family visits; and
215.22 	(6) family-focused reentry planning.
215.23 	(c) Grant recipients must report their activities to the commissioner in a format and at 
215.24 	a time specified by the commissioner.
215.25 		Subd. 3.Technical assistance and oversight; model jail practices. (a) The 
215.26 	commissioner must provide content expertise, training to grant recipients, and advice on 
215.27 	evidence-based strategies, including evidence-based training to support incarcerated parents.
215.28 	(b) For the purposes of carrying out the grant program under subdivision 2, including 
215.29 	for administrative purposes, the commissioner must award contracts to appropriate entities 
215.30 	to assist in training and provide technical assistance to grantees.
216.1 	(c) Contracts awarded under paragraph (b) may be used to provide technical assistance 
216.2 	and training in the areas of:
216.3 	(1) evidence-based training for incarcerated parents;
216.4 	(2) partnership building and community engagement;
216.5 	(3) evaluation of process and outcomes of model jail practices; and
216.6 	(4) expert guidance on reducing the harm caused to children of incarcerated parents and 
216.7 	application of model jail practices.

216.8 	Sec. 60. [145.987] HEALTH EQUITY ADVISORY AND LEADERSHIP (HEAL) 
216.9 	COUNCIL.
216.10 		Subdivision 1.Establishment; composition of advisory council. The health equity 
216.11 	advisory and leadership (HEAL) council consists of 18 members appointed by the 
216.12 	commissioner of health who will provide representation from the following groups:
216.13 	(1) African American and African heritage communities;
216.14 	(2) Asian American and Pacific Islander communities;
216.15 	(3) Latina/o/x communities;
216.16 	(4) American Indian communities and Tribal governments and nations;
216.17 	(5) disability communities;
216.18 	(6) lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities; and
216.19 	(7) representatives who reside outside the seven-county metropolitan area.
216.20 		Subd. 2.Organization and meetings. The advisory council shall be organized and 
216.21 	administered under section 15.059, except that the council shall not expire under subdivision 
216.22 	6. The commissioner of health must convene meetings at least quarterly and must provide 
216.23 	meeting space and administrative support to the council. Subcommittees may be convened 
216.24 	as necessary. Advisory council meetings are subject to the open meeting law under chapter 
216.25 	13D.
216.26 		Subd. 3.Duties. The advisory council shall:
216.27 	(1) advise the commissioner on health equity issues and the health equity priorities and 
216.28 	concerns of the populations specified in subdivision 1;
216.29 	(2) assist the agency in efforts to advance health equity, including consulting in specific 
216.30 	agency policies and programs, providing ideas and input about potential budget and policy 
217.1 	proposals, and recommending review of agency policies, standards, or procedures that may 
217.2 	create or perpetuate health inequities; and
217.3 	(3) assist the agency in developing and monitoring meaningful performance measures 
217.4 	related to advancing health equity.
217.5 		Subd. 4.Expiration. The advisory council shall remain in existence until health inequities 
217.6 	in the state are eliminated. Health inequities will be considered eliminated when race, 
217.7 	ethnicity, income, gender, gender identity, geographic location, or other identity or social 
217.8 	marker will no longer be predictors of health outcomes in the state. Section 145.928 describes 
217.9 	nine health disparities that must be considered when determining whether health inequities 
217.10 	have been eliminated in the state.
217.11 		Subd. 5.Annual report. The advisory council must submit a report annually by January 
217.12 	15 to the chairs and ranking minority members of the legislative committees with primary 
217.13 	jurisdiction over health policy and finance summarizing the work of the council over the 
217.14 	previous year and setting goals for the following year.

217.15 	Sec. 61. [145.988] COMPREHENSIVE AND COLLABORATIVE RESOURCE AND 
217.16 	REFERRAL SYSTEM FOR CHILDREN.
217.17 		Subdivision 1.Establishment; purpose. The commissioner shall establish the 
217.18 	Comprehensive and Collaborative Resource and Referral System for Children to support a 
217.19 	comprehensive, collaborative resource and referral system for children from prenatal stage 
217.20 	through age eight and their families. The commissioner of health shall work collaboratively 
217.21 	with the commissioners of human services and education to implement this section.
217.22 		Subd. 2.Duties. (a) The Help Me Connect system shall facilitate collaboration across 
217.23 	sectors, including child health, early learning and education, child welfare, and family 
217.24 	supports by:
217.25 	(1) providing early childhood provider outreach to support knowledge of and access to 
217.26 	local resources that provide early detection and intervention services;
217.27 	(2) identifying and providing access to early childhood and family support navigation 
217.28 	specialists that can support families and their children's needs; and
217.29 	(3) linking children and families to appropriate community-based services.
217.30 	(b) The Help Me Connect system shall provide community outreach that includes support 
217.31 	for, and participation in, the Help Me Connect system, including disseminating information 
217.32 	on the system and compiling and maintaining a current resource directory that includes but 
218.1 	is not limited to primary and specialty medical care providers, early childhood education 
218.2 	and child care programs, developmental disabilities assessment and intervention programs, 
218.3 	mental health services, family and social support programs, child advocacy and legal services, 
218.4 	public health services and resources, and other appropriate early childhood information.
218.5 	(c) The Help Me Connect system shall maintain a centralized access point for parents 
218.6 	and professionals to obtain information, resources, and other support services.
218.7 	(d) The Help Me Connect system shall collect data to increase understanding of the 
218.8 	current and ongoing system of support and resources for expectant families and children 
218.9 	through age eight and their families, including identification of gaps in service, barriers to 
218.10 	finding and receiving appropriate services, and lack of resources.

218.11 	Sec. 62. Minnesota Statutes 2022, section 145A.131, subdivision 1, is amended to read:
218.12 		Subdivision 1.Funding formula for community health boards. (a) Base funding for 
218.13 	each community health board eligible for a local public health grant under section 145A.03, 
218.14 	subdivision 7, shall be determined by each community health board's fiscal year 2003 
218.15 	allocations, prior to unallotment, for the following grant programs: community health 
218.16 	services subsidy; state and federal maternal and child health special projects grants; family 
218.17 	home visiting grants; TANF MN ENABL grants; TANF youth risk behavior grants; and 
218.18 	available women, infants, and children grant funds in fiscal year 2003, prior to unallotment, 
218.19 	distributed based on the proportion of WIC participants served in fiscal year 2003 within 
218.20 	the CHS service area.
218.21 	(b) Base funding for a community health board eligible for a local public health grant 
218.22 	under section 145A.03, subdivision 7, as determined in paragraph (a), shall be adjusted by 
218.23 	the percentage difference between the base, as calculated in paragraph (a), and the funding 
218.24 	available for the local public health grant.
218.25 	(c) Multicounty or multicity community health boards shall receive a local partnership 
218.26 	base of up to $5,000 per year for each county or city in the case of a multicity community 
218.27 	health board included in the community health board.
218.28 	(d) The State Community Health Advisory Committee may recommend a formula to 
218.29 	the commissioner to use in distributing funds to community health boards.
218.30 	(e) Notwithstanding any adjustment in paragraph (b), community health boards, all or 
218.31 	a portion of which are located outside of the counties of Anoka, Chisago, Carver, Dakota, 
218.32 	Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright, are eligible to receive 
218.33 	an increase equal to ten percent of the grant award to the community health board under 
219.1 	paragraph (a) starting July 1, 2015. The increase in calendar year 2015 shall be prorated for 
219.2 	the last six months of the year. For calendar years beginning on or after January 1, 2016, 
219.3 	the amount distributed under this paragraph shall be adjusted each year based on available 
219.4 	funding and the number of eligible community health boards.
219.5 	(f) Funding for foundational public health responsibilities will be distributed based on 
219.6 	a formula determined by the Commissioner in consultation with the State Community Health 
219.7 	Services Advisory Committee. These funds must be used as described in subdivision 5.

219.8 	Sec. 63. Minnesota Statutes 2022, section 145A.131, subdivision 2, is amended to read:
219.9 		Subd. 2.Local match. (a) A community health board that receives a local public health 
219.10 	grant shall provide at least a 75 percent match for the state funds received through the local 
219.11 	public health grant described in subdivision 1 and subject to paragraphs (b) to (d) (f).
219.12 	(b) Eligible funds must be used to meet match requirements. Eligible funds include funds 
219.13 	from local property taxes, reimbursements from third parties, fees, other local funds, and 
219.14 	donations or nonfederal grants that are used for community health services described in 
219.15 	section 145A.02, subdivision 6.
219.16 	(c) When the amount of local matching funds for a community health board is less than 
219.17 	the amount required under paragraph (a), the local public health grant provided for that 
219.18 	community health board under this section shall be reduced proportionally.
219.19 	(d) A city organized under the provision of sections 145A.03 to 145A.131 that levies a 
219.20 	tax for provision of community health services is exempt from any county levy for the same 
219.21 	services to the extent of the levy imposed by the city.

219.22 	Sec. 64. Minnesota Statutes 2022, section 145A.131, subdivision 5, is amended to read:
219.23 		Subd. 5.Use of funds. (a) Community health boards may use the base funding of their 
219.24 	local public health grant funds as described in subdivision 1, paragraphs (a) to (e), to address 
219.25 	the areas of public health responsibility and local priorities developed through the community 
219.26 	health assessment and community health improvement planning process.
219.27 	(b) Except as otherwise provided in this paragraph, funding for foundational public 
219.28 	health responsibilities as described in subdivision 1, paragraph (f), must be used to fulfill 
219.29 	foundational public health responsibilities as defined by the commissioner in consultation 
219.30 	with the state community health service advisory committee. If a community health board 
219.31 	can demonstrate foundational public health responsibilities are fulfilled, the board may use 
220.1 	funds for local priorities developed through the community health assessment and community 
220.2 	health improvement planning process.

220.3 	Sec. 65. Minnesota Statutes 2022, section 145A.14, is amended by adding a subdivision 
220.4 	to read:
220.5 		Subd. 2b.Grants to tribes. The commissioner must distribute grants to Tribal 
220.6 	governments for foundational public health responsibilities as defined by each Tribal 
220.7 	government.

220.8 	Sec. 66. Minnesota Statutes 2022, section 256B.0625, subdivision 49, is amended to read:
220.9 		Subd. 49.Community health worker. (a) Medical assistance covers the care 
220.10 	coordination and patient education services provided by a community health worker if the 
220.11 	community health worker has received a certificate from the Minnesota State Colleges and 
220.12 	Universities System approved community health worker curriculum.
220.13 	(b) Community health workers must work under the supervision of a medical assistance 
220.14 	enrolled physician, registered nurse, advanced practice registered nurse, physician assistant, 
220.15 	mental health professional, or dentist, or work under the supervision of a certified public 
220.16 	health nurse operating under the direct authority of an enrolled unit of government.
220.17 	(c) Effective January 1, 2026, community health workers who are eligible for payment 
220.18 	under this subdivision who are providing care coordination or patient education services in 
220.19 	an adult day care, respite care, or in-home care setting must complete a training program 
220.20 	in Alzheimer's disease and dementia care that has been developed or approved by the 
220.21 	commissioner of health, in accordance with section 144.6504, to remain eligible for payment.
220.22 	(c) (d) Care coordination and patient education services covered under this subdivision 
220.23 	include, but are not limited to, services relating to oral health and dental care.

220.24 	Sec. 67. Minnesota Statutes 2022, section 259.83, subdivision 1, is amended to read:
220.25 		Subdivision 1.Services provided. (a) Agencies shall provide assistance and counseling 
220.26 	services upon receiving a request for current information from adoptive parents, birth parents, 
220.27 	or adopted persons aged 19 18 years of age and over older. The agency shall contact the 
220.28 	other adult persons or the adoptive parents of a minor child in a personal and confidential 
220.29 	manner to determine whether there is a desire to receive or share information or to have 
220.30 	contact. If there is such a desire, the agency shall provide the services requested. The agency 
220.31 	shall provide services to adult genetic siblings if there is no known violation of the 
220.32 	confidentiality of a birth parent or if the birth parent gives written consent.
221.1 	(b) Upon a request for assistance or services from an adoptive parent, birth parent, or 
221.2 	an adopted person 18 years of age or older, the agency must inform the person:
221.3 	(1) about the right of an adopted person to request and obtain a copy of the adopted 
221.4 	person's original birth record at the age and circumstances specified in section 144.2253; 
221.5 	and
221.6 	(2) about the right of the birth parent named on the adopted person's original birth record 
221.7 	to file a contact preference form with the state registrar pursuant to section 144.2253.
221.8 	In adoptive placements, the agency must provide in writing to the birth parents listed on 
221.9 	the original birth record the information required under this section.

221.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

221.11 	Sec. 68. Minnesota Statutes 2022, section 259.83, subdivision 1a, is amended to read:
221.12 		Subd. 1a.Social and medical history. (a) If a person aged 19 18 years of age and over
221.13 	older who was adopted on or after August 1, 1994, or the adoptive parent requests the 
221.14 	detailed nonidentifying social and medical history of the adopted person's birth family that 
221.15 	was provided at the time of the adoption, agencies must provide the information to the 
221.16 	adopted person or adoptive parent on the applicable form required under sections 259.43 
221.17 	and 260C.212, subdivision 15.
221.18 	(b) If an adopted person aged 19 18 years of age and over older or the adoptive parent 
221.19 	requests the agency to contact the adopted person's birth parents to request current 
221.20 	nonidentifying social and medical history of the adopted person's birth family, agencies 
221.21 	must use the applicable form required under sections 259.43 and 260C.212, subdivision 15, 
221.22 	when obtaining the information for the adopted person or adoptive parent.

221.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

221.24 	Sec. 69. Minnesota Statutes 2022, section 259.83, subdivision 1b, is amended to read:
221.25 		Subd. 1b.Genetic siblings. (a) A person who is at least 19 18 years old of age who was 
221.26 	adopted or, because of a termination of parental rights, was committed to the guardianship 
221.27 	of the commissioner of human services, whether adopted or not, must upon request be 
221.28 	advised of other siblings who were adopted or who were committed to the guardianship of 
221.29 	the commissioner of human services and not adopted.
221.30 	(b) Assistance must be provided by the county or placing agency of the person requesting 
221.31 	information to the extent that information is available in the existing records at the 
222.1 	Department of Human Services. If the sibling received services from another agency, the 
222.2 	agencies must share necessary information in order to locate the other siblings and to offer 
222.3 	services, as requested. Upon the determination that parental rights with respect to another 
222.4 	sibling were terminated, identifying information and contact must be provided only upon 
222.5 	mutual consent. A reasonable fee may be imposed by the county or placing agency.

222.6 	EFFECTIVE DATE. This section is effective July 1, 2024.

222.7 	Sec. 70. Minnesota Statutes 2022, section 259.83, is amended by adding a subdivision to 
222.8 	read:
222.9 		Subd. 3a.Birth parent identifying information. (a) This subdivision applies to adoptive 
222.10 	placements where an adopted person does not have a record of live birth registered in this 
222.11 	state. Upon written request by an adopted person 18 years of age or older, the agency 
222.12 	responsible for or supervising the placement must provide to the requester the following 
222.13 	identifying information related to the birth parents listed on that adopted person's original 
222.14 	birth record:
222.15 	(1) each of the birth parent's names; and
222.16 	(2) each of the birth parent's birthdate and birthplace.
222.17 	(b) The agency may charge a reasonable fee to the requester for providing the required 
222.18 	information under paragraph (a).
222.19 	(c) The agency, acting in good faith and in a lawful manner in disclosing the identifying 
222.20 	information under this subdivision, is not civilly liable for such disclosure.

222.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

222.22 	Sec. 71. Minnesota Statutes 2022, section 260C.317, subdivision 4, is amended to read:
222.23 		Subd. 4.Rights of terminated parent. (a) Upon entry of an order terminating the 
222.24 	parental rights of any person who is identified as a parent on the original birth record of the 
222.25 	child as to whom the parental rights are terminated, the court shall cause written notice to 
222.26 	be made to that person setting forth:
222.27 	(1) the right of the person to file at any time with the state registrar of vital records a 
222.28 	consent to disclosure, as defined in section 144.212, subdivision 11;
222.29 	(2) the right of the person to file at any time with the state registrar of vital records an 
222.30 	affidavit stating that the information on the original birth record shall not be disclosed as 
222.31 	provided in section 144.2252; and a contact preference form under section 144.2253.
223.1 	(3) the effect of a failure to file either a consent to disclosure, as defined in section 
223.2 	144.212, subdivision 11, or an affidavit stating that the information on the original birth 
223.3 	record shall not be disclosed.
223.4 	(b) A parent whose rights are terminated under this section shall retain the ability to 
223.5 	enter into a contact or communication agreement under section 260C.619 if an agreement 
223.6 	is determined by the court to be in the best interests of the child. The agreement shall be 
223.7 	filed with the court at or prior to the time the child is adopted. An order for termination of 
223.8 	parental rights shall not be conditioned on an agreement under section 260C.619.

223.9 	EFFECTIVE DATE. This section is effective July 1, 2024.

223.10 	Sec. 72. Minnesota Statutes 2022, section 403.161, subdivision 1, is amended to read:
223.11 		Subdivision 1.Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail 
223.12 	transaction is imposed on prepaid wireless telecommunications service until the fee is 
223.13 	adjusted as an amount per retail transaction under subdivision 7.
223.14 	(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of the 
223.15 	monthly charge provided for in section 237.52, subdivision 2, is imposed on each retail 
223.16 	transaction for prepaid wireless telecommunications service until the fee is adjusted as an 
223.17 	amount per retail transaction under subdivision 7.
223.18 	(c) A prepaid wireless 988 fee, in the amount of the monthly charge provided for in 
223.19 	section 145.561, subdivision 4, paragraph (b), is imposed on each retail transaction for 
223.20 	prepaid wireless telecommunications service until the fee is adjusted as an amount per retail 
223.21 	transaction under subdivision 7.

223.22 	Sec. 73. Minnesota Statutes 2022, section 403.161, subdivision 3, is amended to read:
223.23 		Subd. 3.Fee collected. The prepaid wireless E911 and, telecommunications access 
223.24 	Minnesota, and 988 fees must be collected by the seller from the consumer for each retail 
223.25 	transaction occurring in this state. The amount of each fee must be combined into one 
223.26 	amount, which must be separately stated on an invoice, receipt, or other similar document 
223.27 	that is provided to the consumer by the seller.

223.28 	Sec. 74. Minnesota Statutes 2022, section 403.161, subdivision 5, is amended to read:
223.29 		Subd. 5.Remittance. The prepaid wireless E911 and, telecommunications access 
223.30 	Minnesota, and 988 fees are the liability of the consumer and not of the seller or of any 
223.31 	provider, except that the seller is liable to remit all fees as provided in section 403.162.

224.1 	Sec. 75. Minnesota Statutes 2022, section 403.161, subdivision 6, is amended to read:
224.2 		Subd. 6.Exclusion for calculating other charges. The combined amount of the prepaid 
224.3 	wireless E911 and, telecommunications access Minnesota, and 988 fees collected by a seller 
224.4 	from a consumer must not be included in the base for measuring any tax, fee, surcharge, or 
224.5 	other charge that is imposed by this state, any political subdivision of this state, or any 
224.6 	intergovernmental agency.

224.7 	Sec. 76. Minnesota Statutes 2022, section 403.161, subdivision 7, is amended to read:
224.8 		Subd. 7.Fee changes. (a) The prepaid wireless E911 and, telecommunications access 
224.9 	Minnesota fee, and 988 fees must be proportionately increased or reduced upon any change 
224.10 	to the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, 
224.11 	or the fee imposed under section 237.52, subdivision 2, or the fee imposed under section 
224.12 	145.561, subdivision 4, as applicable.
224.13 	(b) The department shall post notice of any fee changes on its website at least 30 days 
224.14 	in advance of the effective date of the fee changes. It is the responsibility of sellers to monitor 
224.15 	the department's website for notice of fee changes.
224.16 	(c) Fee changes are effective 60 days after the first day of the first calendar month after 
224.17 	the commissioner of public safety or the Public Utilities Commission, as applicable, changes 
224.18 	the fee.

224.19 	Sec. 77. Minnesota Statutes 2022, section 403.162, subdivision 1, is amended to read:
224.20 		Subdivision 1.Remittance. Prepaid wireless E911 and, telecommunications access 
224.21 	Minnesota, and 988 fees collected by sellers must be remitted to the commissioner of revenue 
224.22 	at the times and in the manner provided by chapter 297A with respect to the general sales 
224.23 	and use tax. The commissioner of revenue shall establish registration and payment procedures 
224.24 	that substantially coincide with the registration and payment procedures that apply in chapter 
224.25 	297A.

224.26 	Sec. 78. Minnesota Statutes 2022, section 403.162, subdivision 2, is amended to read:
224.27 		Subd. 2.Seller's fee retention. A seller may deduct and retain three percent of prepaid 
224.28 	wireless E911 and, telecommunications access Minnesota, and 988 fees collected by the 
224.29 	seller from consumers.

225.1 	Sec. 79. Minnesota Statutes 2022, section 403.162, subdivision 5, is amended to read:
225.2 		Subd. 5.Fees deposited. (a) The commissioner of revenue shall, based on the relative 
225.3 	proportion of the prepaid wireless E911 fee and, the prepaid wireless telecommunications 
225.4 	access Minnesota fee, and the prepaid wireless 988 fee imposed per retail transaction, divide 
225.5 	the fees collected in corresponding proportions. Within 30 days of receipt of the collected 
225.6 	fees, the commissioner shall:
225.7 	(1) deposit the proportion of the collected fees attributable to the prepaid wireless E911 
225.8 	fee in the 911 emergency telecommunications service account in the special revenue fund; 
225.9 	and
225.10 	(2) deposit the proportion of collected fees attributable to the prepaid wireless 
225.11 	telecommunications access Minnesota fee in the telecommunications access fund established 
225.12 	in section 237.52, subdivision 1.; and
225.13 	(3) deposit the proportion of the collected fees attributable to the prepaid wireless 988 
225.14 	fee in the 988 special revenue account established in section 145.561, subdivision 3.
225.15 	(b) The commissioner of revenue may deduct and deposit in a special revenue account 
225.16 	an amount not to exceed two percent of collected fees. Money in the account is annually 
225.17 	appropriated to the commissioner of revenue to reimburse its direct costs of administering 
225.18 	the collection and remittance of prepaid wireless E911 fees and, prepaid wireless 
225.19 	telecommunications access Minnesota fees, and prepaid wireless 988 fees.

225.20 	Sec. 80. Laws 2017, First Special Session chapter 6, article 5, section 11, as amended by 
225.21 	Laws 2019, First Special Session chapter 9, article 8, section 20, is amended to read:
225.22 	Sec. 11. MORATORIUM ON CONVERSION TRANSACTIONS.
 225.23 	(a) Notwithstanding Laws 2017, chapter 2, article 2, a nonprofit health service plan 
225.24 	corporation operating under Minnesota Statutes, chapter 62C, or a nonprofit health 
225.25 	maintenance organization operating under Minnesota Statutes, chapter 62D, as of January 
225.26 	1, 2017, may only merge or consolidate with; convert; or transfer, as part of a single 
225.27 	transaction or a series of transactions within a 24-month period, all or a material amount of 
225.28 	its assets to an entity that is a corporation organized under Minnesota Statutes, chapter 
225.29 	317A; or to a Minnesota nonprofit hospital within the same integrated health system as the 
225.30 	health maintenance organization. For purposes of this section, "material amount" means 
225.31 	the lesser of ten percent of such an entity's total admitted net assets as of December 31 of 
225.32 	the previous year, or $50,000,000.
226.1 	(b) Paragraph (a) does not apply if the nonprofit service plan corporation or nonprofit 
226.2 	health maintenance organization files an intent to dissolve due to insolvency of the 
226.3 	corporation in accordance with Minnesota Statutes, chapter 317A, or insolvency proceedings 
226.4 	are commenced under Minnesota Statutes, chapter 60B.
226.5 	(c) Nothing in this section shall be construed to authorize a nonprofit health maintenance 
226.6 	organization or a nonprofit service plan corporation to engage in any transaction or activities 
226.7 	not otherwise permitted under state law.
226.8 	(d) This section expires July 1, 2023 2026.

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

226.10 	Sec. 81. MEMBERSHIP TERMS; PALLIATIVE CARE ADVISORY COUNCIL.
 226.11 	Notwithstanding the terms of office specified to the members upon their appointment, 
226.12 	the terms for members appointed to the Palliative Care Advisory Council under Minnesota 
226.13 	Statutes, section 144.059, on or after February 1, 2022, shall be three years, as provided in 
226.14 	Minnesota Statutes, section 144.059, subdivision 3.

226.15 	Sec. 82. STUDY OF THE DEVELOPMENT OF A STATEWIDE REGISTRY FOR 
226.16 	PROVIDER ORDERS FOR LIFE-SUSTAINING TREATMENT.
 226.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
226.18 	the meanings given.
226.19 	(b) "Commissioner" means the commissioner of health.
226.20 	(c) "Life-sustaining treatment" means any medical procedure, pharmaceutical drug, 
226.21 	medical device, or medical intervention that maintains life by sustaining, restoring, or 
226.22 	supplanting a vital function. Life-sustaining treatment does not include routine care necessary 
226.23 	to sustain patient cleanliness and comfort.
226.24 	(d) "POLST" means a provider order for life-sustaining treatment, signed by a physician, 
226.25 	advanced practice registered nurse, or physician assistant, to ensure that the medical treatment 
226.26 	preferences of a patient with an advanced serious illness who is nearing the end of the their 
226.27 	life are honored.
226.28 	(e) "POLST form" means a portable medical form used to communicate a physician's 
226.29 	order to help ensure that a patient's medical treatment preferences are conveyed to emergency 
226.30 	medical service personnel and other health care providers.
227.1 		Subd. 2.Establishment. (a) The commissioner, in consultation with the advisory 
227.2 	committee established in paragraph (c), shall develop recommendations for a statewide 
227.3 	registry of POLST forms to ensure that a patient's medical treatment preferences are followed 
227.4 	by all health care providers. The registry must allow for the submission of completed POLST 
227.5 	forms and for the forms to be accessed by health care providers and emergency medical 
227.6 	service personnel in a timely manner for the provision of care or services.
227.7 	(b) The commissioner shall develop recommendations on the following:
227.8 	(1) electronic capture, storage, and security of information in the registry;
227.9 	(2) procedures to protect the accuracy and confidentiality of information submitted to 
227.10 	the registry;
227.11 	(3) limits as to who can access the registry;
227.12 	(4) where the registry should be housed;
227.13 	(5) ongoing funding models for the registry; and
227.14 	(6) any other action needed to ensure that patients' rights are protected and that their 
227.15 	health care decisions are followed.
227.16 	(c) The commissioner shall create an advisory committee with members representing 
227.17 	physicians, physician assistants, advanced practice registered nurses, registered nurses, 
227.18 	nursing homes, emergency medical system providers, hospice and palliative care providers, 
227.19 	the disability community, attorneys, medical ethicists, and the religious community.
227.20 		Subd. 3.Report. The commissioner shall submit recommendations on establishing a 
227.21 	statewide registry of POLST forms to the chairs and ranking minority members of the 
227.22 	legislative committees with jurisdiction over health and human services policy and finance 
227.23 	by February 1, 2024.

227.24 	Sec. 83. DIRECTION TO THE COMMISSIONER; ALZHEIMER'S PUBLIC 
227.25 	INFORMATION PROGRAM.
227.26 	(a) The commissioner of health shall design and make publicly available materials for 
227.27 	a statewide public information program that:
227.28 	(1) promotes the benefits of early detection and the importance of discussing cognition 
227.29 	with a health care provider;
227.30 	(2) outlines the benefits of cognitive testing, the early warning signs of cognitive 
227.31 	impairment, and the difference between normal cognitive aging and dementia; and
228.1 	(3) provides awareness of Alzheimer's disease and other dementias.
228.2 	(b) The commissioner shall include in the program materials messages directed at the 
228.3 	general population, as well as messages designed to reach underserved communities including 
228.4 	but not limited to rural populations, Native and Indigenous communities, and communities 
228.5 	of color. The program materials shall include culturally specific messages developed in 
228.6 	consultation with leaders of targeted cultural communities who have experience with 
228.7 	Alzheimer's disease and other dementias. The commissioner shall develop the materials for 
228.8 	the program by June 30, 2024, and make them available  online to local and county public 
228.9 	health agencies and other interested parties.
228.10 	(c) To the extent funds remain available for this purpose, the commissioner shall 
228.11 	implement an initial statewide public information campaign using the developed program 
228.12 	materials. The campaign must include culturally specific messages and the development of 
228.13 	a community digital public forum. These messages may be disseminated by television and 
228.14 	radio public service announcements, social media and digital advertising, print materials, 
228.15 	or other means.
228.16 	(d) The commissioner may contract with one or more third parties to initially implement 
228.17 	some or all of the public information campaign, provided the contracted third party has 
228.18 	prior experience promoting Alzheimer's awareness and the contract is awarded through a 
228.19 	competitive process. The public information campaign must be implemented by July 1, 
228.20 	2025.
228.21 	(e) By June 30, 2026, the commissioner shall report to the chairs and ranking minority 
228.22 	members of the legislative committees and divisions with jurisdiction over public health or 
228.23 	aging on the development of the program materials and initial implementation of the public 
228.24 	information campaign, including how and where the funds appropriated for this purpose 
228.25 	were spent.

228.26 	Sec. 84. MORATORIUM ON GREEN BURIALS; STUDY.
 228.27 		Subdivision 1.Definition. For purposes of this section, "green burial" means a burial 
228.28 	of a dead human body in a manner that minimizes environmental impact and does not inhibit 
228.29 	decomposition of the body by using practices that include at least the following:
228.30 	(1) the human body is not embalmed prior to burial or is embalmed only with nontoxic 
228.31 	chemicals;
228.32 	(2) a biodegradable casket or shroud is used for burial; and
229.1 	(3) the casket or shroud holding the human body is not placed in an outer burial container 
229.2 	when buried.
229.3 		Subd. 2.Moratorium. Between July 1, 2023, and July 1, 2025, a green burial shall not 
229.4 	be performed in this state unless the green burial is performed in a cemetery that permits 
229.5 	green burials and at which green burials are permitted by any applicable ordinances or 
229.6 	regulations.
229.7 		Subd. 3.Study and report. (a) The commissioner of health shall study the environmental 
229.8 	and health impacts of green burials and develop recommendations for the performance of 
229.9 	green burials to prevent environmental harm, including contamination of groundwater and 
229.10 	surface water, and to protect the health of workers performing green burials, mourners, and 
229.11 	the public. The study and recommendations may address topics that include:
229.12 	(1) the siting of locations where green burials are permitted;
229.13 	(2) the minimum distance a green burial location must have from groundwater, surface 
229.14 	water, and drinking water;
229.15 	(3) the minimum depth at which a body buried via green burial must be buried, the 
229.16 	minimum soil depth below the body, and the minimum soil depth covering the body;
229.17 	(4) the maximum density of green burial interments in a green burial location;
229.18 	(5) procedures used by individuals who come in direct contact with a body awaiting 
229.19 	green burial to minimize the risk of infectious disease transmission from the body;
229.20 	(6) methods to temporarily inhibit decomposition of an unembalmed body awaiting 
229.21 	green burial; and
229.22 	(7) the time period within which an unembalmed body awaiting green burial must be 
229.23 	buried or held in a manner that delays decomposition.
229.24 	(b) The commissioner shall submit the study and recommendations, including any 
229.25 	statutory changes needed to implement the recommendations, to the chairs and ranking 
229.26 	minority members of the legislative committees with jurisdiction over health and the 
229.27 	environment by February 1, 2025.

229.28 	Sec. 85. ADOPTION LAW CHANGES; PUBLIC AWARENESS CAMPAIGN.
 229.29 	(a) The commissioner of human services must, in consultation with licensed child-placing 
229.30 	agencies, provide information and educational materials to adopted persons and birth parents 
229.31 	about the changes in law made by this article affecting access to birth records.
230.1 	(b) The commissioner of human services must provide notice on the department's website 
230.2 	about the changes in the law. The commissioner or the commissioner's designee, in 
230.3 	consultation with licensed child-placement agencies, must coordinate a public awareness 
230.4 	campaign to advise the public about the changes in law made by this article.

230.5 	EFFECTIVE DATE. This section is effective August 1, 2023.

230.6 	Sec. 86. EMMETT LOUIS TILL VICTIMS RECOVERY PROGRAM.
 230.7 		Subdivision 1.Short title. This section shall be known as the Emmett Louis Till Victims 
230.8 	Recovery Program.
230.9 		Subd. 2.Program established; grants. (a) The commissioner of health shall establish 
230.10 	the Emmett Louis Till Victims Recovery Program to address the health and wellness needs 
230.11 	of:
230.12 	(1) victims who experienced trauma, including historical trauma, resulting from events 
230.13 	such as assault or another violent physical act, intimidation, false accusations, wrongful 
230.14 	conviction, a hate crime, the violent death of a family member, or experiences of 
230.15 	discrimination or oppression based on the victim's race, ethnicity, or national origin; and
230.16 	(2) the families and heirs of victims described in clause (1), who experienced trauma, 
230.17 	including historical trauma, because of their proximity or connection to the victim.
230.18 	(b) The commissioner, in consultation with victims, families, and heirs described in 
230.19 	paragraph (a), shall award competitive grants to applicants for projects to provide the 
230.20 	following services to victims, families, and heirs described in paragraph (a):
230.21 	(1) health and wellness services, which may include services and support to address 
230.22 	physical health, mental health, cultural needs, and spiritual or faith-based needs;
230.23 	(2) remembrance and legacy preservation activities;
230.24 	(3) cultural awareness services;
230.25 	(4) spiritual and faith-based support; and
230.26 	(5) community resources and services to promote healing for victims, families, and heirs 
230.27 	described in paragraph (a).
230.28 	(c) In awarding grants under this section, the commissioner must prioritize grant awards 
230.29 	to community-based organizations experienced in providing support and services to victims, 
230.30 	families, and heirs described in paragraph (a).
231.1 		Subd. 3.Evaluation. Grant recipients must provide the commissioner with information 
231.2 	required by the commissioner to evaluate the grant program, in a time and manner specified 
231.3 	by the commissioner.
231.4 		Subd. 4.Reports. The commissioner must submit a status report by January 15, 2024, 
231.5 	and an additional report by January 15, 2025, on the operation and results of the grant 
231.6 	program, to the extent available. These reports must be submitted to the chairs and ranking 
231.7 	minority members of the legislative committees with jurisdiction over health care. The 
231.8 	report due January 15, 2024, must include information on grant program activities to date 
231.9 	and an assessment of the need to continue to offer services provided by grant recipients to 
231.10 	victims, families, and heirs who experienced trauma as described in subdivision 2, paragraph 
231.11 	(a). The report due January 15, 2025, must include a summary of the services offered by 
231.12 	grant recipients; an assessment of the need to continue to offer services provided by grant 
231.13 	recipients to victims, families, and heirs described in subdivision 2, paragraph (a); and an 
231.14 	evaluation of the grant program's goals and outcomes.

231.15 	Sec. 87. EMPLOYEE SAFETY AND SECURITY GRANTS.
 231.16 		Subdivision 1.Establishment. The commissioner of health must establish a competitive 
231.17 	grant program for workplace safety grants for eligible health care entities to increase the 
231.18 	employee safety or security. Each grant award must be for at least $5,000, but no more than 
231.19 	$100,000.
231.20 		Subd. 2.Eligible applicants. A health care entity located in this state is eligible to apply 
231.21 	for a grant. For purposes of this section, a health care entity includes but is not limited to 
231.22 	the following: health care systems, long-term care facilities, hospitals, nursing facilities, 
231.23 	medical clinics, dental clinics, community health clinics, and ambulance services.
231.24 		Subd. 3.Applications. An entity seeking a grant under this section must apply to the 
231.25 	commissioner in a form and manner prescribed by the commissioner. The grant applicant, 
231.26 	in its application, must include:
231.27 	(1) a proposed plan for how the grant funds will be used to improve employee safety or 
231.28 	security;
231.29 	(2) a description of the achievable objectives the applicant plans to achieve through the 
231.30 	use of the grant funds; and
231.31 	(3) a process for documenting and evaluating the results achieved through the use of the 
231.32 	grant funds.
231.33 		Subd. 4.Eligible uses. Grant funds must be used for the following purposes:
232.1 	(1) training for employees on self-defense;
232.2 	(2) training for employees on de-escalation methods;
232.3 	(3) creating and implementing a health care-based violence intervention programs 
232.4 	(HBVI); or
232.5 	(4) technology system improvements designed to improve employee safety or security.
232.6 		Subd. 5.Grant allocations. For grants awarded prior to January 1, 2025, the 
232.7 	commissioner must ensure that approximately 60 percent of awards are to health care entities 
232.8 	in the seven-county metropolitan area and 40 percent are to health care entities outside of 
232.9 	the seven-county metropolitan area. If funds remain on January 1, 2025, the commissioner 
232.10 	may award grants to health care entities regardless of where the entity is located.
232.11 		Subd. 6.Report. By January 15, 2026, the commissioner of health must report to the 
232.12 	legislative committees with jurisdiction over health policy and finance on the grants awarded 
232.13 	by this section. The report must include the following information:
232.14 	(1) the name of each grantee, the amount awarded to the grantee, and how the grantee 
232.15 	used the funds; and
232.16 	(2) the percentage of awards made to entities outside of the seven-county metropolitan 
232.17 	area.

232.18 	Sec. 88. EQUITABLE HEALTH CARE TASK FORCE.
 232.19 		Subdivision 1.Establishment; composition of task force. The equitable health care 
232.20 	task force consists of up to 20 members appointed by the commissioner of health from both 
232.21 	metropolitan and greater Minnesota. Members must include representatives of:
232.22 	(1) African American and African heritage communities;
232.23 	(2) Asian American and Pacific Islander communities;
232.24 	(3) Latina/o/x/ communities;
232.25 	(4) American Indian communities and Tribal Nations;
232.26 	(5) disability communities;
232.27 	(6) lesbian, gay, bisexual, transgender, queer, intergender, and asexual (LGBTQIA+) 
232.28 	communities;
232.29 	(7) organizations that advocate for the rights of individuals using the health care system;
232.30 	(8) health care providers of primary care and specialty care; and
233.1 	(9) organizations that provide health coverage in Minnesota.
233.2 		Subd. 2.Organization and meetings. The task force shall be organized and administered 
233.3 	under Minnesota Statutes, section 15.059. The commissioner of health must convene meetings 
233.4 	of the task force at least quarterly. Subcommittees or workgroups may be established as 
233.5 	necessary. Task force meetings are subject to Minnesota Statutes, chapter 13D. The task 
233.6 	force shall expire on June 30, 2025.
233.7 		Subd. 3.Duties of task force. The task force shall examine inequities in how people 
233.8 	access and receive health care based on race, religion, culture, sexual orientation, gender 
233.9 	identity, age, or disability and identify strategies to ensure that all Minnesotans can receive 
233.10 	care and coverage that is respectful and ensures optimal health outcomes, to include:
233.11 	(1) identifying inequities experienced by Minnesotans in interacting with the health care 
233.12 	system that originate from or can be attributed to their race, religion, culture, sexual 
233.13 	orientation, gender identity, age, or disability status;
233.14 	(2) conducting community engagement across multiple systems, sectors, and communities 
233.15 	to identify barriers for these population groups that result in diminished standards of care 
233.16 	and foregone care;
233.17 	(3) identifying promising practices to improve the experience of care and health outcomes 
233.18 	for individuals in these population groups; and
233.19 	(4) making recommendations to the commissioner of health and to the chairs and ranking 
233.20 	minority members of the legislative with primary jurisdiction over health policy and finance 
233.21 	for changes in health care system practices or health insurance regulations that would address 
233.22 	identified issues.

233.23 	Sec. 89. RULEMAKING AUTHORITY.
 233.24 	The commissioner of health must adopt rules using the expedited rulemaking process 
233.25 	under Minnesota Statutes, section 14.389, to implement the installation of submerged closed 
233.26 	loop heat exchanger systems according to Minnesota Statutes, sections 103I.209 and 
233.27 	103I.210.  The rules must incorporate, and are limited to, the provisions in those sections.

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

233.29 	Sec. 90. REPORT; CLOSED LOOP HEAT EXCHANGER SYSTEM.
 233.30 	By December 31, 2024, the commissioner of health must submit a report to the chairs 
233.31 	and ranking minority members of the legislative committees with jurisdiction over health 
234.1 	finance and policy. The report must include a recommendation on whether additional 
234.2 	requirements are necessary to ensure that the construction and operation of submerged 
234.3 	closed loop heat exchangers do not create the risk of material adverse impacts on the state's 
234.4 	groundwater caused by the chemical or biological composition of the circulating fluids by 
234.5 	operation of the well as part of the submerged closed loop heat exchanger. Unless specifically 
234.6 	authorized by subsequent act of the legislature, the commissioner must not adopt any rules 
234.7 	or requirements to implement the recommendations included in the report.

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

234.9 	Sec. 91. CLOSED LOOP HEAT EXCHANGER SYSTEM MONITORING AND 
234.10 	REPORTING.
 234.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
234.12 	the meanings given to them.
234.13 	(b) "Accredited laboratory" means a laboratory that is certified under Minnesota Rules, 
234.14 	chapter 4740.
234.15 	(c) "Permit holder" means persons who receive a permit under this section and includes 
234.16 	the property owner and licensed well contractor.
234.17 		Subd. 2.Monitoring and reporting requirements. (a) The system owner is responsible 
234.18 	for monitoring and reporting to the commissioner for permitted submerged closed loop heat 
234.19 	exchanger systems installed under the provisional program. The commissioner must identify 
234.20 	projects subject to reporting by including a permit condition.
234.21 	(b) The closed loop heat exchanger owner must implement a closed loop water monitoring 
234.22 	plan.
234.23 	(c) The system owner must analyze the closed loop water for:
234.24 	(1) aluminum;
234.25 	(2) arsenic;
234.26 	(3) copper;
234.27 	(4) iron;
234.28 	(5) lead;
234.29 	(6) manganese;
234.30 	(7) zinc;
235.1 	(8) total coliform;
235.2 	(9) escherichia coli (E. coli);
235.3 	(10) heterotrophic plate count;
235.4 	(11) legionella;
235.5 	(12) pH;
235.6 	(13) electrical conductivity;
235.7 	(14) dissolved oxygen; and
235.8 	(15) temperature.
235.9 	(d) The system owner must provide the results for the sampling event, including the 
235.10 	parameters in paragraph (c), clauses (1) to (11), to the commissioner within 30 days of the 
235.11 	date of the report provided by an accredited laboratory. Paragraph (c), clauses (12) to (15), 
235.12 	may be measured in the field and reported along with the laboratory results.
235.13 		Subd. 3.Evaluation of permit conditions. (a) In order to determine whether additional 
235.14 	permit conditions are necessary and appropriate to ensure that the construction and operation 
235.15 	of a submerged closed loop heat exchanger does not create the risk of material adverse 
235.16 	impacts on the state's groundwater, the commissioner shall require semiannual sampling of 
235.17 	the circulating fluids in accordance with subdivision 2 to determine whether there have been 
235.18 	any material changes in the chemical or biological composition of the circulating fluids.
235.19 	(b) The information required by this section shall be collected from each submerged 
235.20 	closed loop heat exchanger system installed after June 30, 2023, under this provisional 
235.21 	program. The commissioner shall identify up to ten systems for which report submission 
235.22 	is required, and this requirement shall be included in the permit conditions. The information 
235.23 	shall be provided to the commissioner on a semiannual basis and the final semiannual 
235.24 	submission shall include information from the period from January 1, 2024, through July 
235.25 	1, 2024.
235.26 		Subd. 4.Report requirements. Every closed loop heat exchanger owner that holds a 
235.27 	permit issued under this section must provide a report to the commissioner for each permit 
235.28 	by September 30, 2024. The report must describe the status, operation, and performance of 
235.29 	each submerged closed loop heat exchanger system. The report may be in a format 
235.30 	determined by the system owner and must include:
235.31 	(1) date of the report;
235.32 	(2) a narrative description of system installation, operation, and status, including dates;
236.1 	(3) mean monthly temperature of the water entering the building;
236.2 	(4) mean monthly temperature of the water leaving the building;
236.3 	(5) maintenance performed on the system, including dates, identification of heat 
236.4 	exchangers or components that were addressed, and descriptions of actions that occurred; 
236.5 	and
236.6 	(6) any maintenance issues, material failures, leaks, and repairs, including dates and 
236.7 	descriptions of the heat exchangers or components involved, issues, failures, leaks, and 
236.8 	repairs.

236.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
236.10 	expires on December 31, 2024.

236.11 	Sec. 92. REPEALER.
 236.12 	(a) Minnesota Statutes 2022, section 144.059, subdivision 10, is repealed.
236.13 	(b) Minnesota Statutes 2022, sections 144.212, subdivision 11; 259.83, subdivision 3; 
236.14 	259.89; and 260C.637, are repealed.

236.15 	EFFECTIVE DATE. Paragraph (b) is effective July 1, 2024.

236.16 	ARTICLE 5
236.17 	MEDICAL EDUCATION AND RESEARCH COSTS

236.18 	Section 1. Minnesota Statutes 2022, section 62J.692, subdivision 1, is amended to read:
236.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
236.20 	apply:
236.21 	(b) "Accredited clinical training" means the clinical training provided by a medical 
236.22 	education program that is accredited through an organization recognized by the Department 
236.23 	of Education, the Centers for Medicare and Medicaid Services, or another national body 
236.24 	who reviews the accrediting organizations for multiple disciplines and whose standards for 
236.25 	recognizing accrediting organizations are reviewed and approved by the commissioner of 
236.26 	health.
236.27 	(c) "Commissioner" means the commissioner of health.
236.28 	(d) "Clinical medical education program" means the accredited clinical training of 
236.29 	physicians (medical students and residents), doctor of pharmacy practitioners (pharmacy 
236.30 	students and residents), doctors of chiropractic, dentists (dental students and residents), 
237.1 	advanced practice registered nurses (clinical nurse specialists, certified registered nurse 
237.2 	anesthetists, nurse practitioners, and certified nurse midwives), physician assistants, dental 
237.3 	therapists and advanced dental therapists, psychologists, clinical social workers, community 
237.4 	paramedics, and community health workers.
237.5 	(e) "Sponsoring institution" means a hospital, school, or consortium located in Minnesota 
237.6 	that sponsors and maintains primary organizational and financial responsibility for a clinical 
237.7 	medical education program in Minnesota and which is accountable to the accrediting body.
237.8 	(f) "Teaching institution" means a hospital, medical center, clinic, or other organization 
237.9 	that conducts a clinical medical education program in Minnesota.
237.10 	(g) "Trainee" means a student or resident involved in a clinical medical education 
237.11 	program.
237.12 	(h) "Eligible trainee FTE's" means the number of trainees, as measured by full-time 
237.13 	equivalent counts, that are at training sites located in Minnesota with currently active medical 
237.14 	assistance enrollment status and a National Provider Identification (NPI) number where 
237.15 	training occurs in as part of or under the scope of either an inpatient or ambulatory patient 
237.16 	care setting and where the training is funded, in part, by patient care revenues. Training that 
237.17 	occurs in nursing facility settings is not eligible for funding under this section.

237.18 	Sec. 2. Minnesota Statutes 2022, section 62J.692, subdivision 3, is amended to read:
237.19 		Subd. 3.Application process. (a) A clinical medical education program conducted in 
237.20 	Minnesota by a teaching institution to train physicians, doctor of pharmacy practitioners, 
237.21 	dentists, chiropractors, physician assistants, dental therapists and advanced dental therapists, 
237.22 	psychologists, clinical social workers, community paramedics, or community health workers 
237.23 	is eligible for funds under subdivision 4 if the program:
237.24 	(1) is funded, in part, by patient care revenues;
237.25 	(2) occurs in patient care settings that face increased financial pressure as a result of 
237.26 	competition with nonteaching patient care entities; and
237.27 	(3) includes training hours in settings outside of the hospital or clinic site, as applicable, 
237.28 	including but not limited to school, home, and community settings; and
237.29 	(3) (4) emphasizes primary care or specialties that are in undersupply in Minnesota.
237.30 	(b) A clinical medical education program for advanced practice nursing is eligible for 
237.31 	funds under subdivision 4 if the program meets the eligibility requirements in paragraph 
237.32 	(a), clauses (1) to (3), and is sponsored by the University of Minnesota Academic Health 
238.1 	Center, the Mayo Foundation, or institutions that are part of the Minnesota State Colleges 
238.2 	and Universities system or members of the Minnesota Private College Council.
238.3 	(c) Applications must be submitted to the commissioner by a sponsoring institution on 
238.4 	behalf of an eligible clinical medical education program and must be received by October 
238.5 	31 of each year for distribution in the following year on a timeline determined by the 
238.6 	commissioner. An application for funds must contain the following information: information 
238.7 	the commissioner deems necessary to determine program eligibility based on the criteria 
238.8 	in paragraphs (a) and (b) and to ensure the equitable distribution of funds.
238.9 	(1) the official name and address of the sponsoring institution and the official name and 
238.10 	site address of the clinical medical education programs on whose behalf the sponsoring 
238.11 	institution is applying;
238.12 	(2) the name, title, and business address of those persons responsible for administering 
238.13 	the funds;
238.14 	(3) for each clinical medical education program for which funds are being sought; the 
238.15 	type and specialty orientation of trainees in the program; the name, site address, and medical 
238.16 	assistance provider number and national provider identification number of each training 
238.17 	site used in the program; the federal tax identification number of each training site used in 
238.18 	the program, where available; the total number of trainees at each training site; and the total 
238.19 	number of eligible trainee FTEs at each site; and
238.20 	(4) other supporting information the commissioner deems necessary to determine program 
238.21 	eligibility based on the criteria in paragraphs (a) and (b) and to ensure the equitable 
238.22 	distribution of funds.
238.23 	(d) An application must include the information specified in clauses (1) to (3) for each 
238.24 	clinical medical education program on an annual basis for three consecutive years. After 
238.25 	that time, an application must include the information specified in clauses (1) to (3) when 
238.26 	requested, at the discretion of the commissioner:
238.27 	(1) audited clinical training costs per trainee for each clinical medical education program 
238.28 	when available or estimates of clinical training costs based on audited financial data;
238.29 	(2) a description of current sources of funding for clinical medical education costs, 
238.30 	including a description and dollar amount of all state and federal financial support, including 
238.31 	Medicare direct and indirect payments; and
238.32 	(3) other revenue received for the purposes of clinical training.
239.1 	(e) (d) An applicant that does not provide information requested by the commissioner 
239.2 	shall not be eligible for funds for the current applicable funding cycle.

239.3 	Sec. 3. Minnesota Statutes 2022, section 62J.692, subdivision 4, is amended to read:
239.4 		Subd. 4.Distribution of funds. (a) The commissioner shall annually distribute the 
239.5 	available medical education fundsrevenue credited or money transferred to the medical 
239.6 	education and research cost account under subdivision 8 and section 297F.10, subdivision 
239.7 	1, clause (2), to all qualifying applicants based on a public program volume factor, which 
239.8 	is determined by the total volume of public program revenue received by each training site 
239.9 	as a percentage of all public program revenue received by all training sites in the fund pool.
239.10 	Public program revenue for the distribution formula includes revenue from medical 
239.11 	assistance and prepaid medical assistance. Training sites that receive no public program 
239.12 	revenue are ineligible for funds available under this subdivision. For purposes of determining 
239.13 	training-site level grants to be distributed under this paragraph, total statewide average costs 
239.14 	per trainee for medical residents is based on audited clinical training costs per trainee in 
239.15 	primary care clinical medical education programs for medical residents. Total statewide 
239.16 	average costs per trainee for dental residents is based on audited clinical training costs per 
239.17 	trainee in clinical medical education programs for dental students. Total statewide average 
239.18 	costs per trainee for pharmacy residents is based on audited clinical training costs per trainee 
239.19 	in clinical medical education programs for pharmacy students.
239.20 	Training sites whose training site level grant is less than $5,000, based on the formula
239.21 	formulas described in this paragraph subdivision, or that train fewer than 0.1 FTE eligible 
239.22 	trainees, are ineligible for funds available under this subdivision. No training sites shall 
239.23 	receive a grant per FTE trainee that is in excess of the 95th percentile grant per FTE across 
239.24 	all eligible training sites; grants in excess of this amount will be redistributed to other eligible 
239.25 	sites based on the formula formulas described in this paragraph subdivision.
239.26 	(b) For funds distributed in fiscal years 2014 and 2015, the distribution formula shall 
239.27 	include a supplemental public program volume factor, which is determined by providing a 
239.28 	supplemental payment to training sites whose public program revenue accounted for at least 
239.29 	0.98 percent of the total public program revenue received by all eligible training sites. The 
239.30 	supplemental public program volume factor shall be equal to ten percent of each training 
239.31 	site's grant for funds distributed in fiscal year 2014 and for funds distributed in fiscal year 
239.32 	2015. Grants to training sites whose public program revenue accounted for less than 0.98 
239.33 	percent of the total public program revenue received by all eligible training sites shall be 
239.34 	reduced by an amount equal to the total value of the supplemental payment. For fiscal year 
240.1 	2016 and beyond, the distribution of funds shall be based solely on the public program 
240.2 	volume factor as described in paragraph (a). Money appropriated through the state general 
240.3 	fund, the health care access fund, and any additional fund for the purpose of funding medical 
240.4 	education and research costs and that does not require federal approval must be awarded 
240.5 	only to eligible training sites that do not qualify for a medical education and research cost 
240.6 	rate factor under sections 256.969, subdivision 2b, paragraph (k), or 256B.75, paragraph 
240.7 	(b). The commissioner shall distribute the available medical education money appropriated 
240.8 	to eligible training sites that do not qualify for a medical education and research cost rate 
240.9 	factor based on a distribution formula determined by the commissioner. The distribution 
240.10 	formula under this paragraph must consider clinical training costs, public program revenues, 
240.11 	and other factors identified by the commissioner that address the objective of supporting 
240.12 	clinical training.
240.13 	(c) Funds distributed shall not be used to displace current funding appropriations from 
240.14 	federal or state sources.
240.15 	(d) Funds shall be distributed to the sponsoring institutions indicating the amount to be 
240.16 	distributed to each of the sponsor's clinical medical education programs based on the criteria 
240.17 	in this subdivision and in accordance with the commissioner's approval letter. Each clinical 
240.18 	medical education program must distribute funds allocated under paragraphs (a) and (b) to 
240.19 	the training sites as specified in the commissioner's approval letter. Sponsoring institutions, 
240.20 	which are accredited through an organization recognized by the Department of Education 
240.21 	or the Centers for Medicare and Medicaid Services, may contract directly with training sites 
240.22 	to provide clinical training. To ensure the quality of clinical training, those accredited 
240.23 	sponsoring institutions must:
240.24 	(1) develop contracts specifying the terms, expectations, and outcomes of the clinical 
240.25 	training conducted at sites; and
240.26 	(2) take necessary action if the contract requirements are not met. Action may include 
240.27 	the withholding of payments disqualifying the training site under this section or the removal 
240.28 	of students from the site.
240.29 	(e) Use of funds is limited to expenses related to eligible clinical training program costs 
240.30 	for eligible programs. The commissioner shall develop a methodology for determining 
240.31 	eligible costs.
240.32 	(f) Any funds not that cannot be distributed in accordance with the commissioner's 
240.33 	approval letter must be returned to the medical education and research fund within 30 days 
240.34 	of receiving notice from the commissioner. The commissioner shall distribute returned 
241.1 	funds to the appropriate training sites in accordance with the commissioner's approval letter.
241.2 	When appropriate, the commissioner shall include the undistributed money in the subsequent 
241.3 	distribution cycle using the applicable methodology described in this subdivision.
241.4 	(g) A maximum of $150,000 of the funds dedicated to the commissioner under section 
241.5 	297F.10, subdivision 1, clause (2), may be used by the commissioner for administrative 
241.6 	expenses associated with implementing this section.

241.7 	Sec. 4. Minnesota Statutes 2022, section 62J.692, subdivision 5, is amended to read:
241.8 		Subd. 5.Report. (a) Sponsoring institutions receiving funds under this section must 
241.9 	sign and submit a medical education grant verification report (GVR) to verify that the correct 
241.10 	grant amount was forwarded to each eligible training site. If the sponsoring institution fails 
241.11 	to submit the GVR by the stated deadline, or to request and meet the deadline for an 
241.12 	extension, the sponsoring institution is required to return the full amount of funds received 
241.13 	to the commissioner within 30 days of receiving notice from the commissioner. The 
241.14 	commissioner shall distribute returned funds to the appropriate training sites in accordance 
241.15 	with the commissioner's approval letter.
241.16 	(b) The reports must provide verification of the distribution of the funds and must include:
241.17 	(1) the total number of eligible trainee FTEs in each clinical medical education program;
241.18 	(2) the name of each funded program and, for each program, the dollar amount distributed 
241.19 	to each training site and a training site expenditure report;
241.20 	(3) (1) documentation of any discrepancies between the initial grant distribution notice 
241.21 	included in the commissioner's approval letter and the actual distribution;
241.22 	(4) (2) a statement by the sponsoring institution stating that the completed grant 
241.23 	verification report is valid and accurate; and
241.24 	(5) (3) other information the commissioner deems appropriate to evaluate the effectiveness 
241.25 	of the use of funds for medical education.
241.26 	(c) Each year, the commissioner shall provide an annual summary report to the legislature 
241.27 	on the implementation of this section. This report is exempt from section 144.05, subdivision 
241.28 	7.

241.29 	Sec. 5. Minnesota Statutes 2022, section 62J.692, subdivision 8, is amended to read:
241.30 		Subd. 8.Federal financial participation.  The commissioner of human services shall 
241.31 	seek to maximize federal financial participation in payments for the dedicated revenue for 
242.1 	medical education and research costs provided under section 297F.10, subdivision 1, clause 
242.2 	(2).
242.3 	The commissioner shall use physician clinic rates where possible to maximize federal 
242.4 	financial participation. Any additional funds that become available must be distributed under 
242.5 	subdivision 4, paragraph (a).

242.6 	Sec. 6. Minnesota Statutes 2022, section 144.1501, subdivision 2, is amended to read:
242.7 		Subd. 2.Creation of account. (a) A health professional education loan forgiveness 
242.8 	program account is established. The commissioner of health shall use money from the 
242.9 	account to establish a loan forgiveness program:
242.10 	(1) for medical residents, mental health professionals, and alcohol and drug counselors 
242.11 	agreeing to practice in designated rural areas or underserved urban communities or 
242.12 	specializing in the area of pediatric psychiatry;
242.13 	(2) for midlevel practitioners agreeing to practice in designated rural areas or to teach 
242.14 	at least 12 credit hours, or 720 hours per year in the nursing field in a postsecondary program 
242.15 	at the undergraduate level or the equivalent at the graduate level;
242.16 	(3) for nurses who agree to practice in a Minnesota nursing home; in an intermediate 
242.17 	care facility for persons with developmental disability; in a hospital if the hospital owns 
242.18 	and operates a Minnesota nursing home and a minimum of 50 percent of the hours worked 
242.19 	by the nurse is in the nursing home; a housing with services establishmentin an assisted 
242.20 	living facility as defined in section 144D.01 144G.08, subdivision 4 7; or for a home care 
242.21 	provider as defined in section 144A.43, subdivision 4; or agree to teach at least 12 credit 
242.22 	hours, or 720 hours per year in the nursing field in a postsecondary program at the 
242.23 	undergraduate level or the equivalent at the graduate level;
242.24 	(4) for other health care technicians agreeing to teach at least 12 credit hours, or 720 
242.25 	hours per year in their designated field in a postsecondary program at the undergraduate 
242.26 	level or the equivalent at the graduate level. The commissioner, in consultation with the 
242.27 	Healthcare Education-Industry Partnership, shall determine the health care fields where the 
242.28 	need is the greatest, including, but not limited to, respiratory therapy, clinical laboratory 
242.29 	technology, radiologic technology, and surgical technology;
242.30 	(5) for pharmacists, advanced dental therapists, dental therapists, and public health nurses 
242.31 	who agree to practice in designated rural areas; and
242.32 	(6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient 
242.33 	encounters to state public program enrollees or patients receiving sliding fee schedule 
243.1 	discounts through a formal sliding fee schedule meeting the standards established by the 
243.2 	United States Department of Health and Human Services under Code of Federal Regulations, 
243.3 	title 42, section 51, chapter 303.
243.4 	(b) Appropriations made to the account do not cancel and are available until expended, 
243.5 	except that at the end of each biennium, any remaining balance in the account that is not 
243.6 	committed by contract and not needed to fulfill existing commitments shall cancel to the 
243.7 	fund.

243.8 	Sec. 7. Minnesota Statutes 2022, section 144.1501, subdivision 3, is amended to read:
243.9 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program, an 
243.10 	individual must:
243.11 	(1) be a medical or dental resident; be a licensed pharmacist; or be enrolled in a training 
243.12 	or education program or obtaining required supervision hours to become a dentist, dental 
243.13 	therapist, advanced dental therapist, mental health professional, alcohol and drug counselor, 
243.14 	pharmacist, public health nurse, midlevel practitioner, registered nurse, or a licensed practical 
243.15 	nurse. The commissioner may also consider applications submitted by graduates in eligible 
243.16 	professions who are licensed and in practice; and
243.17 	(2) submit an application to the commissioner of health.
243.18 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
243.19 	three-year full-time service obligation according to subdivision 2, which shall begin no later 
243.20 	than March 31 following completion of required training, with the exception of a nurse, 
243.21 	who must agree to serve a minimum two-year full-time service obligation according to 
243.22 	subdivision 2, which shall begin no later than March 31 following completion of required 
243.23 	training.

243.24 	Sec. 8. Minnesota Statutes 2022, section 144.1506, subdivision 4, is amended to read:
243.25 		Subd. 4.Consideration of expansion grant applications. The commissioner shall 
243.26 	review each application to determine whether or not the residency program application is 
243.27 	complete and whether the proposed new residency program and any new residency slots 
243.28 	are eligible for a grant. The commissioner shall award grants to support up to six family 
243.29 	medicine, general internal medicine, or general pediatrics residents; four five psychiatry 
243.30 	residents; two geriatrics residents; and two general surgery residents. If insufficient 
243.31 	applications are received from any eligible specialty, funds may be redistributed to 
243.32 	applications from other eligible specialties.

244.1 	Sec. 9. [144.1507] PEDIATRIC PRIMARY CARE MENTAL HEALTH TRAINING 
244.2 	GRANT PROGRAM.
244.3 		Subdivision 1.Establishment. The commissioner of health shall award grants for the 
244.4 	development of child mental health training programs that are located in outpatient primary 
244.5 	care clinics. To be eligible for a grant, a training program must:
244.6 	(1) focus on the training of pediatric primary care providers working with 
244.7 	multidisciplinary mental health teams;
244.8 	(2) provide training on conducting comprehensive clinical mental health assessments 
244.9 	and potential pharmacological therapy;
244.10 	(3) provide psychiatric consultation to pediatric primary care providers during their 
244.11 	outpatient pediatric primary care experiences;
244.12 	(4) emphasize longitudinal care for patients with behavioral health needs; and
244.13 	(5) develop partnerships with community resources.
244.14 		Subd. 2.Child mental health training grant program. (a) Child mental health training 
244.15 	grants may be awarded to eligible primary care training programs to plan and implement 
244.16 	new programs or expand existing programs in child mental health training.
244.17 	(b) Money may be spent to cover the costs of:
244.18 	(1) planning related to implementing or expanding child mental health training in an 
244.19 	outpatient primary care clinic setting;
244.20 	(2) training site improvements, fees, equipment, and supplies required for implementation 
244.21 	of the training programs; and
244.22 	(3) supporting clinical training in the outpatient primary clinic sites.
244.23 		Subd. 3.Applications for child mental health training grants. Eligible primary care 
244.24 	training programs seeking a grant shall apply to the commissioner. Applications must include 
244.25 	the location of the training; a description of the training program, including all costs 
244.26 	associated with the training program; all sources of money for the training program; detailed 
244.27 	uses of all money for the training program; the results expected; and a plan to maintain the 
244.28 	training program after the grant period. The applicant must describe achievable objectives 
244.29 	and a timetable for the training program.
244.30 		Subd. 4.Consideration of child mental health training grant applications. The 
244.31 	commissioner shall review each application to determine whether the application meets the 
245.1 	stated goals of the grant and shall award grants to support up to four training program 
245.2 	proposals.
245.3 		Subd. 5.Program oversight. During the grant period, the commissioner may require 
245.4 	and collect from grantees any information necessary to evaluate the training program.

245.5 	Sec. 10. [144.1511] MENTAL HEALTH CULTURAL COMMUNITY CONTINUING 
245.6 	EDUCATION GRANT PROGRAM.
245.7 	The mental health cultural community continuing education grant program is established 
245.8 	in the Department of Health to provide grants for the continuing education necessary for 
245.9 	social workers, marriage and family therapists, psychologists, and professional clinical 
245.10 	counselors to become supervisors for individuals pursuing licensure in mental health 
245.11 	professions. The commissioner must consult with the relevant mental health licensing boards 
245.12 	in creating the program. To be eligible for a grant under this section, a social worker, marriage 
245.13 	and family therapist, psychologist, or professional clinical counselor must:
245.14 	(1) be a member of a community of color or an underrepresented community as defined 
245.15 	in section 148E.010, subdivision 20; and
245.16 	(2) work for a community mental health provider and agree to deliver at least 25 percent 
245.17 	of their yearly patient encounters to state public program enrollees or patients receiving 
245.18 	sliding fee schedule discounts through a formal sliding fee schedule meeting the standards 
245.19 	established by the United States Department of Health and Human Services under Code of 
245.20 	Federal Regulations, title 42, section 51c.303.

245.21 	Sec. 11. [144.1913] CLINICAL DENTAL EDUCATION INNOVATION GRANTS.
245.22 	(a) The commissioner of health shall award clinical dental education innovation grants 
245.23 	to teaching institutions and clinical training sites for projects that increase dental access for 
245.24 	underserved populations and promote innovative clinical training of dental professionals. 
245.25 	In awarding the grants, the commissioner shall consider the following:
245.26 	(1) potential to successfully increase access to dental services for an underserved 
245.27 	population;
245.28 	(2) the long-term viability of the project to improve access to dental services beyond 
245.29 	the period of initial funding;
245.30 	(3) evidence of collaboration between the applicant and local communities;
245.31 	(4) efficiency in the use of grant money; and
246.1 	(5) the priority level of the project in relation to state education, access, and workforce 
246.2 	goals.
246.3 	(b) The commissioner shall periodically evaluate the priorities in awarding innovations 
246.4 	grants under this section to ensure that the priorities meet the changing workforce needs of 
246.5 	the state.

246.6 	Sec. 12. [144.88] MENTAL HEALTH AND SUBSTANCE USE DISORDER 
246.7 	EDUCATION CENTER.
246.8 		Subdivision 1.Establishment. The Mental Health and Substance Use Disorder Education 
246.9 	Center is established in the Department of Health. The purpose of the center is to increase 
246.10 	the number of professionals, practitioners, and peers working in mental health and substance 
246.11 	use disorder treatment; increase the diversity of professionals, practitioners, and peers 
246.12 	working in mental health and substance use disorder treatment; and facilitate a culturally 
246.13 	informed and responsive mental health and substance use disorder treatment workforce.
246.14 		Subd. 2.Activities. The Mental Health and Substance Use Disorder Education Center 
246.15 	must:
246.16 	(1) analyze the geographic and demographic availability of licensed professionals in the 
246.17 	field, identify gaps, and prioritize the need for additional licensed professionals by type, 
246.18 	location, and demographics;
246.19 	(2) create a program that exposes high school and college students to careers in the 
246.20 	mental health and substance use disorder treatment field;
246.21 	(3) create a website for individuals considering becoming a mental health provider that 
246.22 	clearly labels the steps necessary to achieve licensure and certification in the various mental 
246.23 	health fields and lists resources and links for more information;
246.24 	(4) create a job board for organizations seeking employees to provide mental health and 
246.25 	substance use disorder treatment, services, and supports;
246.26 	(5) track the number of students at the college and graduate level who are graduating 
246.27 	from programs that could facilitate a career as a mental health or substance use disorder 
246.28 	treatment practitioner or professional and work with the colleges and universities to support 
246.29 	the students in obtaining licensure;
246.30 	(6) identify barriers to licensure and make recommendations to address the barriers;
246.31 	(7) establish learning collaborative partnerships with mental health and substance use 
246.32 	disorder treatment providers, schools, criminal justice agencies, and others;
247.1 	(8) promote and expand loan forgiveness programs, funding for professionals to become 
247.2 	supervisors, funding to pay for supervision, and funding for pathways to licensure;
247.3 	(9) identify barriers to using loan forgiveness programs and develop recommendations 
247.4 	to address the barriers;
247.5 	(10) work to expand Medicaid graduate medical education to other mental health 
247.6 	professionals;
247.7 	(11) identify current sites for internships and practicums and assess the need for additional 
247.8 	sites;
247.9 	(12) develop training for other health care professionals to increase their knowledge 
247.10 	about mental health and substance use disorder treatment, including but not limited to 
247.11 	community health workers, pediatricians, primary care physicians, physician assistants, and 
247.12 	nurses; and
247.13 	(13) support training for integrated mental health and primary care in rural areas.
247.14 		Subd. 3.Reports. Beginning January 1, 2024, the commissioner of health shall submit 
247.15 	an annual report to the chairs and ranking minority members of the legislative committees 
247.16 	with jurisdiction over health finance and policy summarizing the center's activities and 
247.17 	progress in addressing the mental health and substance use disorder treatment workforce 
247.18 	shortage.

247.19 	Sec. 13. [145.9272] FEDERALLY QUALIFIED HEALTH CENTERS 
247.20 	APPRENTICESHIP PROGRAM.
247.21 		Subdivision 1.Definitions. (a) The terms defined in this subdivision apply to this section.
247.22 	(b) "Federally qualified health center" has the meaning given in section 145.9269, 
247.23 	subdivision 1.
247.24 	(c) "Nonprofit organization of community health centers" means a nonprofit organization 
247.25 	the membership of which consists of federally qualified health centers operating service 
247.26 	delivery sites in Minnesota and that provides services to federally qualified health centers 
247.27 	in Minnesota to promote the delivery of affordable, quality primary care services in the 
247.28 	state.
247.29 		Subd. 2.Apprenticeship program. The commissioner of health shall distribute a grant 
247.30 	to a nonprofit organization of community health centers for an apprenticeship program in 
247.31 	federally qualified health centers operating in Minnesota. Grant money must be used to 
247.32 	establish and fund ongoing costs for apprenticeship programs for medical assistants and 
248.1 	dental assistants at federally qualified health center service delivery sites in Minnesota. An 
248.2 	apprenticeship program funded under this section must be a 12-month program led by 
248.3 	certified medical assistants and licensed dental assistants. Trainees for an apprenticeship 
248.4 	program must be recruited from federally qualified health center staff and from the population 
248.5 	in the geographic area served by the federally qualified health center.

248.6 	Sec. 14. Minnesota Statutes 2022, section 245.4663, subdivision 4, is amended to read:
248.7 		Subd. 4.Allowable uses of grant funds. A mental health provider must use grant funds 
248.8 	received under this section for one or more of the following:
248.9 	(1) to pay for direct supervision hours for interns and clinical trainees, in an amount up 
248.10 	to $7,500 per intern or clinical trainee;
248.11 	(2) to establish a program to provide supervision to multiple interns or clinical trainees; 
248.12 	or
248.13 	(3) to pay licensing application and examination fees for clinical trainees.; or
248.14 	(4) to provide a weekend training program for workers to become supervisors.

248.15 	Sec. 15. [245.4664] MENTAL HEALTH PROFESSIONAL SCHOLARSHIP GRANT 
248.16 	PROGRAM.
248.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
248.18 	the meanings given.
248.19 	(b) "Mental health professional" means an individual with a qualification specified in 
248.20 	section 245I.04, subdivision 2.
248.21 	(c) "Underrepresented community" has the meaning given in section 148E.010, 
248.22 	subdivision 20.
248.23 		Subd. 2.Grant program established. The mental health professional scholarship 
248.24 	program is established in the Department of Human Services to assist mental health providers 
248.25 	in funding employee scholarships for master's degree-level education programs in order to 
248.26 	create a pathway to becoming a mental health professional.
248.27 		Subd. 3.Provision of grants. The commissioner of human services shall award grants 
248.28 	to licensed or certified mental health providers who meet the criteria in subdivision 4 to 
248.29 	provide tuition reimbursement for master's degree-level programs and certain related costs 
248.30 	for individuals who have worked for the mental health provider for at least the past two 
248.31 	years in one or more of the following roles:
249.1 	(1) a mental health behavioral aide who meets a qualification in section 245I.04, 
249.2 	subdivision 16;
249.3 	(2) a mental health certified family peer specialist who meets the qualifications in section 
249.4 	245I.04, subdivision 12;
249.5 	(3) a mental health certified peer specialist who meets the qualifications in section 
249.6 	245I.04, subdivision 10;
249.7 	(4) a mental health practitioner who meets a qualification in section 245I.04, subdivision 
249.8 	4;
249.9 	(5) a mental health rehabilitation worker who meets the qualifications in section 245I.04, 
249.10 	subdivision 14;
249.11 	(6) an individual employed in a role in which the individual provides face-to-face client 
249.12 	services at a mental health center or certified community behavioral health center; or
249.13 	(7) a staff person who provides care or services to residents of a residential treatment 
249.14 	facility.
249.15 		Subd. 4.Eligibility. In order to be eligible for a grant under this section, a mental health 
249.16 	provider must:
249.17 	(1) primarily provide at least 25 percent of the provider's yearly patient encounters to 
249.18 	state public program enrollees or patients receiving sliding fee schedule discounts through 
249.19 	a formal sliding fee schedule meeting the standards established by the United States 
249.20 	Department of Health and Human Services under Code of Federal Regulations, title 42, 
249.21 	section 51c.303; or
249.22 	(2) primarily serve people from communities of color or underrepresented communities.
249.23 		Subd. 5.Request for proposals. The commissioner must publish a request for proposals 
249.24 	in the State Register specifying provider eligibility requirements, criteria for a qualifying 
249.25 	employee scholarship program, provider selection criteria, documentation required for 
249.26 	program participation, the maximum award amount, and methods of evaluation. The 
249.27 	commissioner must publish additional requests for proposals each year in which funding is 
249.28 	available for this purpose.
249.29 		Subd. 6.Application requirements. An eligible provider seeking a grant under this 
249.30 	section must submit an application to the commissioner. An application must contain a 
249.31 	complete description of the employee scholarship program being proposed by the applicant, 
249.32 	including the need for the mental health provider to enhance the education of its workforce, 
250.1 	the process the mental health provider will use to determine which employees will be eligible 
250.2 	for scholarships, any other money sources for scholarships, the amount of money sought 
250.3 	for the scholarship program, a proposed budget detailing how money will be spent, and 
250.4 	plans to retain eligible employees after completion of the education program.
250.5 		Subd. 7.Selection process. The commissioner shall determine a maximum award amount 
250.6 	for grants and shall select grant recipients based on the information provided in the grant 
250.7 	application, including the demonstrated need for the applicant provider to enhance the 
250.8 	education of its workforce, the proposed process to select employees for scholarships, the 
250.9 	applicant's proposed budget, and other criteria as determined by the commissioner. The 
250.10 	commissioner shall give preference to grant applicants who work in rural or culturally 
250.11 	specific organizations.
250.12 		Subd. 8.Grant agreements. Notwithstanding any law or rule to the contrary, grant 
250.13 	money awarded to a grant recipient in a grant agreement does not lapse until the grant 
250.14 	agreement expires.
250.15 		Subd. 9.Allowable uses of grant money. A mental health provider receiving a grant 
250.16 	under this section must use the grant money for one or more of the following:
250.17 	(1) to provide employees with tuition reimbursement for a master's degree-level program 
250.18 	in a discipline that will allow the employee to qualify as a mental health professional; or
250.19 	(2) for resources and supports, such as child care and transportation, that allow an 
250.20 	employee to attend a master's degree-level program specified in clause (1).
250.21 		Subd. 10.Reporting requirements. A mental health provider receiving a grant under 
250.22 	this section must submit an invoice for reimbursement and a report to the commissioner on 
250.23 	a schedule determined by the commissioner and using a form supplied by the commissioner. 
250.24 	The report must include the amount spent on scholarships; the number of employees who 
250.25 	received scholarships; and, for each scholarship recipient, the recipient's name, current 
250.26 	position, amount awarded, educational institution attended, name of the educational program, 
250.27 	and expected or actual program completion date.

250.28 	Sec. 16. Minnesota Statutes 2022, section 256.969, subdivision 2b, is amended to read:
250.29 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
250.30 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
250.31 	to the following:
250.32 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
250.33 	methodology;
251.1 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
251.2 	under subdivision 25;
251.3 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
251.4 	distinct parts as defined by Medicare shall be paid according to the methodology under 
251.5 	subdivision 12; and
251.6 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
251.7 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
251.8 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
251.9 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
251.10 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
251.11 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
251.12 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
251.13 	period as other hospitals.
251.14 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
251.15 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
251.16 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
251.17 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
251.18 	manner similar to Medicare. The base year or years for the rates effective November 1, 
251.19 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
251.20 	ensuring that the total aggregate payments under the rebased system are equal to the total 
251.21 	aggregate payments that were made for the same number and types of services in the base 
251.22 	year. Separate budget neutrality calculations shall be determined for payments made to 
251.23 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
251.24 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
251.25 	rebased during the entire base period shall be incorporated into the budget neutrality 
251.26 	calculation.
251.27 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
251.28 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
251.29 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
251.30 	a five percent increase or decrease from the base year payments for any hospital. Any 
251.31 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
251.32 	shall maintain budget neutrality as described in paragraph (c).
251.33 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
251.34 	additional adjustments to the rebased rates, and when evaluating whether additional 
252.1 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
252.2 	following:
252.3 	(1) pediatric services;
252.4 	(2) behavioral health services;
252.5 	(3) trauma services as defined by the National Uniform Billing Committee;
252.6 	(4) transplant services;
252.7 	(5) obstetric services, newborn services, and behavioral health services provided by 
252.8 	hospitals outside the seven-county metropolitan area;
252.9 	(6) outlier admissions;
252.10 	(7) low-volume providers; and
252.11 	(8) services provided by small rural hospitals that are not critical access hospitals.
252.12 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
252.13 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
252.14 	admission is standardized by the applicable Medicare wage index and adjusted by the 
252.15 	hospital's disproportionate population adjustment;
252.16 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
252.17 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
252.18 	October 31, 2014;
252.19 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
252.20 	inpatient services covered by medical assistance; and
252.21 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
252.22 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
252.23 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
252.24 	program in effect during the base year or years. In determining hospital payment rates for 
252.25 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
252.26 	methods and allowable costs of the Medicare program in effect during the base year or 
252.27 	years.
252.28 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
252.29 	the rates established under paragraph (c), and any adjustments made to the rates under 
252.30 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
253.1 	total aggregate payments for the same number and types of services under the rebased rates 
253.2 	are equal to the total aggregate payments made during calendar year 2013.
253.3 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
253.4 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
253.5 	in hospital costs between the existing base year or years and the next base year or years. In 
253.6 	any year that inpatient claims volume falls below the threshold required to ensure a 
253.7 	statistically valid sample of claims, the commissioner may combine claims data from two 
253.8 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
253.9 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
253.10 	a base year or part of a base year if the base year includes more than one year. Changes in 
253.11 	costs between base years shall be measured using the lower of the hospital cost index defined 
253.12 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
253.13 	claim. The commissioner shall establish the base year for each rebasing period considering 
253.14 	the most recent year or years for which filed Medicare cost reports are available. The 
253.15 	estimated change in the average payment per hospital discharge resulting from a scheduled 
253.16 	rebasing must be calculated and made available to the legislature by January 15 of each 
253.17 	year in which rebasing is scheduled to occur, and must include by hospital the differential 
253.18 	in payment rates compared to the individual hospital's costs.
253.19 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
253.20 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
253.21 	using a new cost-based methodology. The commissioner shall establish within the 
253.22 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
253.23 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
253.24 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
253.25 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
253.26 	decrease from the base year payments for any hospital, except a hospital that had payments 
253.27 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
253.28 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
253.29 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
253.30 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
253.31 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
253.32 	following criteria:
253.33 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
253.34 	shall have a rate set that equals 85 percent of their base year costs;
254.1 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
254.2 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
254.3 	base year costs; and
254.4 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
254.5 	shall have a rate set that equals 100 percent of their base year costs.
254.6 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
254.7 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
254.8 	methodology may include, but are not limited to:
254.9 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
254.10 	hospital's charges to the medical assistance program;
254.11 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
254.12 	hospital's payments received from the medical assistance program for the care of medical 
254.13 	assistance patients;
254.14 	(3) the ratio between the hospital's charges to the medical assistance program and the 
254.15 	hospital's payments received from the medical assistance program for the care of medical 
254.16 	assistance patients;
254.17 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
254.18 	(5) the proportion of that hospital's costs that are administrative and trends in 
254.19 	administrative costs; and
254.20 	(6) geographic location.
254.21 	(k) Effective for discharges occurring on or after January 1, 2024, the rates paid to 
254.22 	hospitals described in paragraph (a), clauses (2) to (4), must include a rate factor specific 
254.23 	to each hospital that qualifies for a medical education and research cost distribution under 
254.24 	section 62J.692 subdivision 4, paragraph (a).

254.25 	Sec. 17. Minnesota Statutes 2022, section 256B.75, is amended to read:
254.26 	256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.
254.27 	(a) For outpatient hospital facility fee payments for services rendered on or after October 
254.28 	1, 1992, the commissioner of human services shall pay the lower of (1) submitted charge, 
254.29 	or (2) 32 percent above the rate in effect on June 30, 1992, except for those services for 
254.30 	which there is a federal maximum allowable payment. Effective for services rendered on 
254.31 	or after January 1, 2000, payment rates for nonsurgical outpatient hospital facility fees and 
254.32 	emergency room facility fees shall be increased by eight percent over the rates in effect on 
255.1 	December 31, 1999, except for those services for which there is a federal maximum allowable 
255.2 	payment. Services for which there is a federal maximum allowable payment shall be paid 
255.3 	at the lower of (1) submitted charge, or (2) the federal maximum allowable payment. Total 
255.4 	aggregate payment for outpatient hospital facility fee services shall not exceed the Medicare 
255.5 	upper limit. If it is determined that a provision of this section conflicts with existing or 
255.6 	future requirements of the United States government with respect to federal financial 
255.7 	participation in medical assistance, the federal requirements prevail. The commissioner 
255.8 	may, in the aggregate, prospectively reduce payment rates to avoid reduced federal financial 
255.9 	participation resulting from rates that are in excess of the Medicare upper limitations.
255.10 	(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and ambulatory 
255.11 	surgery hospital facility fee services for critical access hospitals designated under section 
255.12 	144.1483, clause (9), shall be paid on a cost-based payment system that is based on the 
255.13 	cost-finding methods and allowable costs of the Medicare program. Effective for services 
255.14 	provided on or after July 1, 2015, rates established for critical access hospitals under this 
255.15 	paragraph for the applicable payment year shall be the final payment and shall not be settled 
255.16 	to actual costs. Effective for services delivered on or after the first day of the hospital's fiscal 
255.17 	year ending in 2017, the rate for outpatient hospital services shall be computed using 
255.18 	information from each hospital's Medicare cost report as filed with Medicare for the year 
255.19 	that is two years before the year that the rate is being computed. Rates shall be computed 
255.20 	using information from Worksheet C series until the department finalizes the medical 
255.21 	assistance cost reporting process for critical access hospitals. After the cost reporting process 
255.22 	is finalized, rates shall be computed using information from Title XIX Worksheet D series. 
255.23 	The outpatient rate shall be equal to ancillary cost plus outpatient cost, excluding costs 
255.24 	related to rural health clinics and federally qualified health clinics, divided by ancillary 
255.25 	charges plus outpatient charges, excluding charges related to rural health clinics and federally 
255.26 	qualified health clinics. Effective for services delivered on or after January 1, 2024, the 
255.27 	rates paid to critical access hospitals under this section must be adjusted to include the 
255.28 	amount of any distributions under section 62J.692, subdivision 4, paragraph (a), that were 
255.29 	not included in the rate adjustment described under section 256.969, subdivision 2b, 
255.30 	paragraph (k).
255.31 	(c) Effective for services provided on or after July 1, 2003, rates that are based on the 
255.32 	Medicare outpatient prospective payment system shall be replaced by a budget neutral 
255.33 	prospective payment system that is derived using medical assistance data. The commissioner 
255.34 	shall provide a proposal to the 2003 legislature to define and implement this provision. 
255.35 	When implementing prospective payment methodologies, the commissioner shall use general 
256.1 	methods and rate calculation parameters similar to the applicable Medicare prospective 
256.2 	payment systems for services delivered in outpatient hospital and ambulatory surgical center 
256.3 	settings unless other payment methodologies for these services are specified in this chapter.
256.4 	(d) For fee-for-service services provided on or after July 1, 2002, the total payment, 
256.5 	before third-party liability and spenddown, made to hospitals for outpatient hospital facility 
256.6 	services is reduced by .5 percent from the current statutory rate.
256.7 	(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service 
256.8 	services provided on or after July 1, 2003, made to hospitals for outpatient hospital facility 
256.9 	services before third-party liability and spenddown, is reduced five percent from the current 
256.10 	statutory rates. Facilities defined under section 256.969, subdivision 16, are excluded from 
256.11 	this paragraph.
256.12 	(f) In addition to the reductions in paragraphs (d) and (e), the total payment for 
256.13 	fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient 
256.14 	hospital facility services before third-party liability and spenddown, is reduced three percent 
256.15 	from the current statutory rates. Mental health services and facilities defined under section 
256.16 	256.969, subdivision 16, are excluded from this paragraph.

256.17 	Sec. 18. Minnesota Statutes 2022, section 297F.10, subdivision 1, is amended to read:
256.18 		Subdivision 1.Tax and use tax on cigarettes. Revenue received from cigarette taxes, 
256.19 	as well as related penalties, interest, license fees, and miscellaneous sources of revenue 
256.20 	shall be deposited by the commissioner in the state treasury and credited as follows:
256.21 	(1) $22,250,000 each year must be credited to the Academic Health Center special 
256.22 	revenue fund hereby created and is annually appropriated to the Board of Regents at the 
256.23 	University of Minnesota for Academic Health Center funding at the University of Minnesota; 
256.24 	and
256.25 	(2) $3,937,000 $3,788,000 each year must be credited to the medical education and 
256.26 	research costs account hereby created in the special revenue fund and is annually appropriated 
256.27 	to the commissioner of health for distribution under section 62J.692, subdivision 4, paragraph 
256.28 	(a); and
256.29 	(3) the balance of the revenues derived from taxes, penalties, and interest (under this 
256.30 	chapter) and from license fees and miscellaneous sources of revenue shall be credited to 
256.31 	the general fund.

257.1 	Sec. 19. REPEALER.
 257.2 	Minnesota Statutes 2022, sections 62J.692, subdivisions 4a, 7, and 7a; 137.38, subdivision 
257.3 	1; and 256B.69, subdivision 5c, are repealed.

257.4 	ARTICLE 6
257.5 	HEALTH LICENSING BOARDS

257.6 	Section 1. Minnesota Statutes 2022, section 144E.001, subdivision 1, is amended to read:
257.7 		Subdivision 1.Scope. For the purposes of sections 144E.001 to 144E.52 this chapter, 
257.8 	the terms defined in this section have the meanings given them.

257.9 	Sec. 2. Minnesota Statutes 2022, section 144E.001, is amended by adding a subdivision 
257.10 	to read:
257.11 		Subd. 8b.Medical resource communication center. "Medical resource communication 
257.12 	center" means an entity that:
257.13 	(1) facilitates hospital-to-ambulance communications for ambulance services, the regional 
257.14 	emergency medical services systems, and the board by coordinating patient care and 
257.15 	transportation for ground and air operations;
257.16 	(2) is integrated with the state's Allied Radio Matrix for Emergency Response (ARMER) 
257.17 	radio system; and
257.18 	(3) is the point of contact and a communication resource for statewide public safety 
257.19 	entities, hospitals, and communities.

257.20 	Sec. 3. Minnesota Statutes 2022, section 144E.35, is amended to read:
257.21 	144E.35 REIMBURSEMENT TO NONPROFIT AMBULANCE SERVICES FOR 
257.22 	VOLUNTEER EDUCATION COSTS.
257.23 		Subdivision 1.Repayment for volunteer education.  A licensed ambulance service 
257.24 	shall be reimbursed by the board for the necessary expense of the initial education of a 
257.25 	volunteer ambulance attendant upon successful completion by the attendant of an EMT 
257.26 	education course, or a continuing education course for EMT care, or both, which has been 
257.27 	approved by the board, pursuant to section 144E.285. Reimbursement may include tuition, 
257.28 	transportation, food, lodging, hourly payment for the time spent in the education course, 
257.29 	and other necessary expenditures, except that in no instance shall a volunteer ambulance 
257.30 	attendant be reimbursed more than $600 $900 for successful completion of an initial 
257.31 	education course, and $275 $375 for successful completion of a continuing education course.
258.1 		Subd. 2.Reimbursement provisions. Reimbursement will must be paid under provisions 
258.2 	of this section when documentation is provided the board that the individual has served for 
258.3 	one year from the date of the final certification exam as an active member of a Minnesota 
258.4 	licensed ambulance service.

258.5 	Sec. 4. [144E.53] MEDICAL RESOURCE COMMUNICATION CENTER GRANTS.
258.6 	The board shall distribute medical resource communication center grants annually on a 
258.7 	contract basis to the two medical resource communication centers that were in operation in 
258.8 	the state prior to January 1, 2000.

258.9 	Sec. 5. [148.635] FEE.
258.10 	The fee for verification of licensure is $20. The fee is nonrefundable.

258.11 	Sec. 6. Minnesota Statutes 2022, section 148B.392, subdivision 2, is amended to read:
258.12 		Subd. 2.Licensure and application fees. Licensure and application fees established 
258.13 	by the board shall not exceed the following amounts:
258.14 	(1) application fee for national examination is $110 $150;
258.15 	(2) application fee for Licensed Marriage and Family Therapist (LMFT) state examination 
258.16 	is $110 $150;
258.17 	(3) initial LMFT license fee is prorated, but cannot exceed $125 $225;
258.18 	(4) annual renewal fee for LMFT license is $125 $225;
258.19 	(5) late fee for LMFT license renewal is $50 $100;
258.20 	(6) application fee for LMFT licensure by reciprocity is $220 $300;
258.21 	(7) fee for initial Licensed Associate Marriage and Family Therapist (LAMFT) license 
258.22 	is $75 $100;
258.23 	(8) annual renewal fee for LAMFT license is $75 $100;
258.24 	(9) late fee for LAMFT renewal is $25 $50;
258.25 	(10) fee for reinstatement of license is $150;
258.26 	(11) fee for emeritus status is $125 $225; and
258.27 	(12) fee for temporary license for members of the military is $100.

259.1 	Sec. 7. Minnesota Statutes 2022, section 150A.08, subdivision 1, is amended to read:
259.2 		Subdivision 1.Grounds. The board may refuse or by order suspend or revoke, limit or 
259.3 	modify by imposing conditions it deems necessary, the license of a dentist, dental therapist, 
259.4 	dental hygienist, or dental assisting assistant upon any of the following grounds:
259.5 	(1) fraud or deception in connection with the practice of dentistry or the securing of a 
259.6 	license certificate;
259.7 	(2) conviction, including a finding or verdict of guilt, an admission of guilt, or a no 
259.8 	contest plea, in any court of a felony or gross misdemeanor reasonably related to the practice 
259.9 	of dentistry as evidenced by a certified copy of the conviction;
259.10 	(3) conviction, including a finding or verdict of guilt, an admission of guilt, or a no 
259.11 	contest plea, in any court of an offense involving moral turpitude as evidenced by a certified 
259.12 	copy of the conviction;
259.13 	(4) habitual overindulgence in the use of intoxicating liquors;
259.14 	(5) improper or unauthorized prescription, dispensing, administering, or personal or 
259.15 	other use of any legend drug as defined in chapter 151, of any chemical as defined in chapter 
259.16 	151, or of any controlled substance as defined in chapter 152;
259.17 	(6) conduct unbecoming a person licensed to practice dentistry, dental therapy, dental 
259.18 	hygiene, or dental assisting, or conduct contrary to the best interest of the public, as such 
259.19 	conduct is defined by the rules of the board;
259.20 	(7) gross immorality;
259.21 	(8) any physical, mental, emotional, or other disability which adversely affects a dentist's, 
259.22 	dental therapist's, dental hygienist's, or dental assistant's ability to perform the service for 
259.23 	which the person is licensed;
259.24 	(9) revocation or suspension of a license or equivalent authority to practice, or other 
259.25 	disciplinary action or denial of a license application taken by a licensing or credentialing 
259.26 	authority of another state, territory, or country as evidenced by a certified copy of the 
259.27 	licensing authority's order, if the disciplinary action or application denial was based on facts 
259.28 	that would provide a basis for disciplinary action under this chapter and if the action was 
259.29 	taken only after affording the credentialed person or applicant notice and opportunity to 
259.30 	refute the allegations or pursuant to stipulation or other agreement;
259.31 	(10) failure to maintain adequate safety and sanitary conditions for a dental office in 
259.32 	accordance with the standards established by the rules of the board;
260.1 	(11) employing, assisting, or enabling in any manner an unlicensed person to practice 
260.2 	dentistry;
260.3 	(12) failure or refusal to attend, testify, and produce records as directed by the board 
260.4 	under subdivision 7;
260.5 	(13) violation of, or failure to comply with, any other provisions of sections 150A.01 to 
260.6 	150A.12, the rules of the Board of Dentistry, or any disciplinary order issued by the board, 
260.7 	sections 144.291 to 144.298 or 595.02, subdivision 1, paragraph (d), or for any other just 
260.8 	cause related to the practice of dentistry. Suspension, revocation, modification or limitation 
260.9 	of any license shall not be based upon any judgment as to therapeutic or monetary value of 
260.10 	any individual drug prescribed or any individual treatment rendered, but only upon a repeated 
260.11 	pattern of conduct;
260.12 	(14) knowingly providing false or misleading information that is directly related to the 
260.13 	care of that patient unless done for an accepted therapeutic purpose such as the administration 
260.14 	of a placebo; or
260.15 	(15) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
260.16 	established by any of the following:
260.17 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
260.18 	of section 609.215, subdivision 1 or 2;
260.19 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
260.20 	issued under section 609.215, subdivision 4;
260.21 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
260.22 	subdivision 5; or
260.23 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
260.24 	The board shall investigate any complaint of a violation of section 609.215, subdivision 1
260.25 	or 2.

260.26 	Sec. 8. Minnesota Statutes 2022, section 150A.08, subdivision 5, is amended to read:
260.27 		Subd. 5.Medical examinations. If the board has probable cause to believe that a dentist, 
260.28 	dental therapist, dental hygienist, dental assistant, or applicant engages in acts described in 
260.29 	subdivision 1, clause (4) or (5), or has a condition described in subdivision 1, clause (8), it 
260.30 	shall direct the dentist, dental therapist, dental hygienist, dental assistant, or applicant to 
260.31 	submit to a mental or physical examination or a substance use disorder assessment. For the 
260.32 	purpose of this subdivision, every dentist, dental therapist, dental hygienist, or dental assistant 
261.1 	licensed under this chapter or person submitting an application for a license is deemed to 
261.2 	have given consent to submit to a mental or physical examination when directed in writing 
261.3 	by the board and to have waived all objections in any proceeding under this section to the 
261.4 	admissibility of the examining physician's testimony or examination reports on the ground 
261.5 	that they constitute a privileged communication. Failure to submit to an examination without 
261.6 	just cause may result in an application being denied or a default and final order being entered 
261.7 	without the taking of testimony or presentation of evidence, other than evidence which may 
261.8 	be submitted by affidavit, that the licensee or applicant did not submit to the examination. 
261.9 	A dentist, dental therapist, dental hygienist, dental assistant, or applicant affected under this 
261.10 	section shall at reasonable intervals be afforded an opportunity to demonstrate ability to 
261.11 	start or resume the competent practice of dentistry or perform the duties of a dental therapist, 
261.12 	dental hygienist, or dental assistant with reasonable skill and safety to patients. In any 
261.13 	proceeding under this subdivision, neither the record of proceedings nor the orders entered 
261.14 	by the board is admissible, is subject to subpoena, or may be used against the dentist, dental 
261.15 	therapist, dental hygienist, dental assistant, or applicant in any proceeding not commenced 
261.16 	by the board. Information obtained under this subdivision shall be classified as private 
261.17 	pursuant to the Minnesota Government Data Practices Act.

261.18 	Sec. 9. Minnesota Statutes 2022, section 150A.091, is amended by adding a subdivision 
261.19 	to read:
261.20 		Subd. 23.Mailing list services. Each licensee must submit a nonrefundable $5 fee to 
261.21 	request a mailing address list.

261.22 	Sec. 10. Minnesota Statutes 2022, section 150A.13, subdivision 10, is amended to read:
261.23 		Subd. 10.Failure to report. On or after August 1, 2012, Any person, institution, insurer, 
261.24 	or organization that fails to report as required under subdivisions 2 to 6 shall be subject to 
261.25 	civil penalties for failing to report as required by law.

261.26 	Sec. 11. Minnesota Statutes 2022, section 151.065, subdivision 1, is amended to read:
261.27 		Subdivision 1.Application fees. Application fees for licensure and registration are as 
261.28 	follows:
261.29 	(1) pharmacist licensed by examination, $175 $225;
261.30 	(2) pharmacist licensed by reciprocity, $275 $300;
261.31 	(3) pharmacy intern, $50 $75;
262.1 	(4) pharmacy technician, $50 $60;
262.2 	(5) pharmacy, $260 $450;
262.3 	(6) drug wholesaler, legend drugs only, $5,260 $5,500;
262.4 	(7) drug wholesaler, legend and nonlegend drugs, $5,260 $5,500;
262.5 	(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,260 $5,500;
262.6 	(9) drug wholesaler, medical gases, $5,260 $5,500 for the first facility and $260 $500
262.7 	for each additional facility;
262.8 	(10) third-party logistics provider, $260 $300;
262.9 	(11) drug manufacturer, nonopiate legend drugs only, $5,260 $5,500;
262.10 	(12) drug manufacturer, nonopiate legend and nonlegend drugs, $5,260 $5,500;
262.11 	(13) drug manufacturer, nonlegend or veterinary legend drugs, $5,260 $5,500;
262.12 	(14) drug manufacturer, medical gases, $5,260 $5,500 for the first facility and $260
262.13 	$500 for each additional facility;
262.14 	(15) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,260 $5,500;
262.15 	(16) drug manufacturer of opiate-containing controlled substances listed in section 
262.16 	152.02, subdivisions 3 to 5, $55,260 $55,500;
262.17 	(17) medical gas dispenser, $260 $400;
262.18 	(18) controlled substance researcher, $75 $150; and
262.19 	(19) pharmacy professional corporation, $150.

262.20 	Sec. 12. Minnesota Statutes 2022, section 151.065, subdivision 2, is amended to read:
262.21 		Subd. 2.Original license fee. The pharmacist original licensure fee, $175 $225.

262.22 	Sec. 13. Minnesota Statutes 2022, section 151.065, subdivision 3, is amended to read:
262.23 		Subd. 3.Annual renewal fees. Annual licensure and registration renewal fees are as 
262.24 	follows:
262.25 	(1) pharmacist, $175 $225;
262.26 	(2) pharmacy technician, $50 $60;
262.27 	(3) pharmacy, $260 $450;
263.1 	(4) drug wholesaler, legend drugs only, $5,260 $5,500;
263.2 	(5) drug wholesaler, legend and nonlegend drugs, $5,260 $5,500;
263.3 	(6) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,260 $5,500;
263.4 	(7) drug wholesaler, medical gases, $5,260 $5,500 for the first facility and $260 $500
263.5 	for each additional facility;
263.6 	(8) third-party logistics provider, $260 $300;
263.7 	(9) drug manufacturer, nonopiate legend drugs only, $5,260 $5,500;
263.8 	(10) drug manufacturer, nonopiate legend and nonlegend drugs, $5,260 $5,500;
263.9 	(11) drug manufacturer, nonlegend, veterinary legend drugs, or both, $5,260 $5,500;
263.10 	(12) drug manufacturer, medical gases, $5,260 $5,500 for the first facility and $260
263.11 	$500 for each additional facility;
263.12 	(13) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,260 $5,500;
263.13 	(14) drug manufacturer of opiate-containing controlled substances listed in section 
263.14 	152.02, subdivisions 3 to 5, $55,260 $55,500;
263.15 	(15) medical gas dispenser, $260 $400;
263.16 	(16) controlled substance researcher, $75 $150; and
263.17 	(17) pharmacy professional corporation, $100 $150.

263.18 	Sec. 14. Minnesota Statutes 2022, section 151.065, subdivision 4, is amended to read:
263.19 		Subd. 4.Miscellaneous fees. Fees for issuance of affidavits and duplicate licenses and 
263.20 	certificates are as follows:
263.21 	(1) intern affidavit, $20 $30;
263.22 	(2) duplicate small license, $20 $30; and
263.23 	(3) duplicate large certificate, $30.

263.24 	Sec. 15. Minnesota Statutes 2022, section 151.065, subdivision 6, is amended to read:
263.25 		Subd. 6.Reinstatement fees. (a) A pharmacist who has allowed the pharmacist's license 
263.26 	to lapse may reinstate the license with board approval and upon payment of any fees and 
263.27 	late fees in arrears, up to a maximum of $1,000.
264.1 	(b) A pharmacy technician who has allowed the technician's registration to lapse may 
264.2 	reinstate the registration with board approval and upon payment of any fees and late fees 
264.3 	in arrears, up to a maximum of $90 $250.
264.4 	(c) An owner of a pharmacy, a drug wholesaler, a drug manufacturer, third-party logistics 
264.5 	provider, or a medical gas dispenser who has allowed the license of the establishment to 
264.6 	lapse may reinstate the license with board approval and upon payment of any fees and late 
264.7 	fees in arrears.
264.8 	(d) A controlled substance researcher who has allowed the researcher's registration to 
264.9 	lapse may reinstate the registration with board approval and upon payment of any fees and 
264.10 	late fees in arrears.
264.11 	(e) A pharmacist owner of a professional corporation who has allowed the corporation's 
264.12 	registration to lapse may reinstate the registration with board approval and upon payment 
264.13 	of any fees and late fees in arrears.

264.14 	Sec. 16. Minnesota Statutes 2022, section 151.555, is amended to read:
264.15 	151.555 PRESCRIPTION DRUG MEDICATION REPOSITORY PROGRAM.
264.16 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
264.17 	subdivision have the meanings given.
264.18 	(b) "Central repository" means a wholesale distributor that meets the requirements under 
264.19 	subdivision 3 and enters into a contract with the Board of Pharmacy in accordance with this 
264.20 	section.
264.21 	(c) "Distribute" means to deliver, other than by administering or dispensing.
264.22 	(d) "Donor" means:
264.23 	(1) a health care facility as defined in this subdivision;
264.24 	(2) a skilled nursing facility licensed under chapter 144A;
264.25 	(3) an assisted living facility licensed under chapter 144G;
264.26 	(4) a pharmacy licensed under section 151.19, and located either in the state or outside 
264.27 	the state;
264.28 	(5) a drug wholesaler licensed under section 151.47;
264.29 	(6) a drug manufacturer licensed under section 151.252; or
265.1 	(7) an individual at least 18 years of age, provided that the drug or medical supply that 
265.2 	is donated was obtained legally and meets the requirements of this section for donation.
265.3 	(e) "Drug" means any prescription drug that has been approved for medical use in the 
265.4 	United States, is listed in the United States Pharmacopoeia or National Formulary, and 
265.5 	meets the criteria established under this section for donation; or any over-the-counter 
265.6 	medication that meets the criteria established under this section for donation. This definition 
265.7 	includes cancer drugs and antirejection drugs, but does not include controlled substances, 
265.8 	as defined in section 152.01, subdivision 4, or a prescription drug that can only be dispensed 
265.9 	to a patient registered with the drug's manufacturer in accordance with federal Food and 
265.10 	Drug Administration requirements.
265.11 	(f) "Health care facility" means:
265.12 	(1) a physician's office or health care clinic where licensed practitioners provide health 
265.13 	care to patients;
265.14 	(2) a hospital licensed under section 144.50;
265.15 	(3) a pharmacy licensed under section 151.19 and located in Minnesota; or
265.16 	(4) a nonprofit community clinic, including a federally qualified health center; a rural 
265.17 	health clinic; public health clinic; or other community clinic that provides health care utilizing 
265.18 	a sliding fee scale to patients who are low-income, uninsured, or underinsured.
265.19 	(g) "Local repository" means a health care facility that elects to accept donated drugs 
265.20 	and medical supplies and meets the requirements of subdivision 4.
265.21 	(h) "Medical supplies" or "supplies" means any prescription and or nonprescription 
265.22 	medical supplies needed to administer a prescription drug.
265.23 	(i) "Original, sealed, unopened, tamper-evident packaging" means packaging that is 
265.24 	sealed, unopened, and tamper-evident, including a manufacturer's original unit dose or 
265.25 	unit-of-use container, a repackager's original unit dose or unit-of-use container, or unit-dose 
265.26 	packaging prepared by a licensed pharmacy according to the standards of Minnesota Rules, 
265.27 	part 6800.3750.
265.28 	(j) "Practitioner" has the meaning given in section 151.01, subdivision 23, except that 
265.29 	it does not include a veterinarian.
265.30 		Subd. 2.Establishment; contract and oversight. By January 1, 2020,(a) The Board 
265.31 	of Pharmacy shall establish a drug medication repository program, through which donors 
266.1 	may donate a drug or medical supply for use by an individual who meets the eligibility 
266.2 	criteria specified under subdivision 5.
266.3 	(b) The board shall contract with a central repository that meets the requirements of 
266.4 	subdivision 3 to implement and administer the prescription drug medication repository 
266.5 	program. The contract must:
266.6 	(1) require payment by the board to the central repository any amount appropriated by 
266.7 	the legislature for the operation and administration of the medication repository program;
266.8 	(2) require the central repository to report the following performance measures to the 
266.9 	board:
266.10 	(i) the number of individuals served and the types of medications these individuals 
266.11 	received;
266.12 	(ii) the number of clinics, pharmacies, and long-term care facilities with which the central 
266.13 	repository partnered;
266.14 	(iii) the number and cost of medications accepted for inventory, disposed of, and 
266.15 	dispensed to individuals in need; and
266.16 	(iv) locations within the state to which medications were shipped or delivered; and
266.17 	(3) require the board to annually audit the expenditure by the central repository of any 
266.18 	money appropriated by the legislature and paid under a contract by the board to ensure that 
266.19 	the amount appropriated is used only for purposes specified in the contract.
266.20 		Subd. 3.Central repository requirements. (a) The board may publish a request for 
266.21 	proposal for participants who meet the requirements of this subdivision and are interested 
266.22 	in acting as the central repository for the drug medication repository program. If the board 
266.23 	publishes a request for proposal, it shall follow all applicable state procurement procedures 
266.24 	in the selection process. The board may also work directly with the University of Minnesota 
266.25 	to establish a central repository.
266.26 	(b) To be eligible to act as the central repository, the participant must be a wholesale 
266.27 	drug distributor located in Minnesota, licensed pursuant to section 151.47, and in compliance 
266.28 	with all applicable federal and state statutes, rules, and regulations.
266.29 	(c) The central repository shall be subject to inspection by the board pursuant to section 
266.30 	151.06, subdivision 1.
266.31 	(d) The central repository shall comply with all applicable federal and state laws, rules, 
266.32 	and regulations pertaining to the drug medication repository program, drug storage, and 
267.1 	dispensing. The facility must maintain in good standing any state license or registration that 
267.2 	applies to the facility.
267.3 		Subd. 4.Local repository requirements. (a) To be eligible for participation in the drug
267.4 	medication repository program, a health care facility must agree to comply with all applicable 
267.5 	federal and state laws, rules, and regulations pertaining to the drug medication repository 
267.6 	program, drug storage, and dispensing. The facility must also agree to maintain in good 
267.7 	standing any required state license or registration that may apply to the facility.
267.8 	(b) A local repository may elect to participate in the program by submitting the following 
267.9 	information to the central repository on a form developed by the board and made available 
267.10 	on the board's website:
267.11 	(1) the name, street address, and telephone number of the health care facility and any 
267.12 	state-issued license or registration number issued to the facility, including the issuing state 
267.13 	agency;
267.14 	(2) the name and telephone number of a responsible pharmacist or practitioner who is 
267.15 	employed by or under contract with the health care facility; and
267.16 	(3) a statement signed and dated by the responsible pharmacist or practitioner indicating 
267.17 	that the health care facility meets the eligibility requirements under this section and agrees 
267.18 	to comply with this section.
267.19 	(c) Participation in the drug medication repository program is voluntary. A local 
267.20 	repository may withdraw from participation in the drug medication repository program at 
267.21 	any time by providing written notice to the central repository on a form developed by the 
267.22 	board and made available on the board's website. The central repository shall provide the 
267.23 	board with a copy of the withdrawal notice within ten business days from the date of receipt 
267.24 	of the withdrawal notice.
267.25 		Subd. 5.Individual eligibility and application requirements. (a) To be eligible for 
267.26 	the drug medication repository program, an individual must submit to a local repository an 
267.27 	intake application form that is signed by the individual and attests that the individual:
267.28 	(1) is a resident of Minnesota;
267.29 	(2) is uninsured and is not enrolled in the medical assistance program under chapter 
267.30 	256B or the MinnesotaCare program under chapter 256L, has no prescription drug coverage, 
267.31 	or is underinsured;
267.32 	(3) acknowledges that the drugs or medical supplies to be received through the program 
267.33 	may have been donated; and
268.1 	(4) consents to a waiver of the child-resistant packaging requirements of the federal 
268.2 	Poison Prevention Packaging Act.
268.3 	(b) Upon determining that an individual is eligible for the program, the local repository 
268.4 	shall furnish the individual with an identification card. The card shall be valid for one year 
268.5 	from the date of issuance and may be used at any local repository. A new identification card 
268.6 	may be issued upon expiration once the individual submits a new application form.
268.7 	(c) The local repository shall send a copy of the intake application form to the central 
268.8 	repository by regular mail, facsimile, or secured email within ten days from the date the 
268.9 	application is approved by the local repository.
268.10 	(d) The board shall develop and make available on the board's website an application 
268.11 	form and the format for the identification card.
268.12 		Subd. 6.Standards and procedures for accepting donations of drugs and supplies. (a) 
268.13 	A donor may donate prescription drugs or medical supplies to the central repository or a 
268.14 	local repository if the drug or supply meets the requirements of this section as determined 
268.15 	by a pharmacist or practitioner who is employed by or under contract with the central 
268.16 	repository or a local repository.
268.17 	(b) A prescription drug is eligible for donation under the drug medication repository 
268.18 	program if the following requirements are met:
268.19 	(1) the donation is accompanied by a drug medication repository donor form described 
268.20 	under paragraph (d) that is signed by an individual who is authorized by the donor to attest 
268.21 	to the donor's knowledge in accordance with paragraph (d);
268.22 	(2) the drug's expiration date is at least six months after the date the drug was donated. 
268.23 	If a donated drug bears an expiration date that is less than six months from the donation 
268.24 	date, the drug may be accepted and distributed if the drug is in high demand and can be 
268.25 	dispensed for use by a patient before the drug's expiration date;
268.26 	(3) the drug is in its original, sealed, unopened, tamper-evident packaging that includes 
268.27 	the expiration date. Single-unit-dose drugs may be accepted if the single-unit-dose packaging 
268.28 	is unopened;
268.29 	(4) the drug or the packaging does not have any physical signs of tampering, misbranding, 
268.30 	deterioration, compromised integrity, or adulteration;
268.31 	(5) the drug does not require storage temperatures other than normal room temperature 
268.32 	as specified by the manufacturer or United States Pharmacopoeia, unless the drug is being 
269.1 	donated directly by its manufacturer, a wholesale drug distributor, or a pharmacy located 
269.2 	in Minnesota; and
269.3 	(6) the prescription drug is not a controlled substance.
269.4 	(c) A medical supply is eligible for donation under the drug medication repository 
269.5 	program if the following requirements are met:
269.6 	(1) the supply has no physical signs of tampering, misbranding, or alteration and there 
269.7 	is no reason to believe it has been adulterated, tampered with, or misbranded;
269.8 	(2) the supply is in its original, unopened, sealed packaging;
269.9 	(3) the donation is accompanied by a drug medication repository donor form described 
269.10 	under paragraph (d) that is signed by an individual who is authorized by the donor to attest 
269.11 	to the donor's knowledge in accordance with paragraph (d); and
269.12 	(4) if the supply bears an expiration date, the date is at least six months later than the 
269.13 	date the supply was donated. If the donated supply bears an expiration date that is less than 
269.14 	six months from the date the supply was donated, the supply may be accepted and distributed 
269.15 	if the supply is in high demand and can be dispensed for use by a patient before the supply's 
269.16 	expiration date.
269.17 	(d) The board shall develop the drug medication repository donor form and make it 
269.18 	available on the board's website. The form must state that to the best of the donor's knowledge 
269.19 	the donated drug or supply has been properly stored under appropriate temperature and 
269.20 	humidity conditions and that the drug or supply has never been opened, used, tampered 
269.21 	with, adulterated, or misbranded.
269.22 	(e) Donated drugs and supplies may be shipped or delivered to the premises of the central 
269.23 	repository or a local repository, and shall be inspected by a pharmacist or an authorized 
269.24 	practitioner who is employed by or under contract with the repository and who has been 
269.25 	designated by the repository to accept donations. A drop box must not be used to deliver 
269.26 	or accept donations.
269.27 	(f) The central repository and local repository shall inventory all drugs and supplies 
269.28 	donated to the repository. For each drug, the inventory must include the drug's name, strength, 
269.29 	quantity, manufacturer, expiration date, and the date the drug was donated. For each medical 
269.30 	supply, the inventory must include a description of the supply, its manufacturer, the date 
269.31 	the supply was donated, and, if applicable, the supply's brand name and expiration date.
269.32 		Subd. 7.Standards and procedures for inspecting and storing donated prescription
269.33 	drugs and supplies. (a) A pharmacist or authorized practitioner who is employed by or 
270.1 	under contract with the central repository or a local repository shall inspect all donated 
270.2 	prescription drugs and supplies before the drug or supply is dispensed to determine, to the 
270.3 	extent reasonably possible in the professional judgment of the pharmacist or practitioner, 
270.4 	that the drug or supply is not adulterated or misbranded, has not been tampered with, is safe 
270.5 	and suitable for dispensing, has not been subject to a recall, and meets the requirements for 
270.6 	donation. The pharmacist or practitioner who inspects the drugs or supplies shall sign an 
270.7 	inspection record stating that the requirements for donation have been met. If a local 
270.8 	repository receives drugs and supplies from the central repository, the local repository does 
270.9 	not need to reinspect the drugs and supplies.
270.10 	(b) The central repository and local repositories shall store donated drugs and supplies 
270.11 	in a secure storage area under environmental conditions appropriate for the drug or supply 
270.12 	being stored. Donated drugs and supplies may not be stored with nondonated inventory.
270.13 	(c) The central repository and local repositories shall dispose of all prescription drugs 
270.14 	and medical supplies that are not suitable for donation in compliance with applicable federal 
270.15 	and state statutes, regulations, and rules concerning hazardous waste.
270.16 	(d) In the event that controlled substances or prescription drugs that can only be dispensed 
270.17 	to a patient registered with the drug's manufacturer are shipped or delivered to a central or 
270.18 	local repository for donation, the shipment delivery must be documented by the repository 
270.19 	and returned immediately to the donor or the donor's representative that provided the drugs.
270.20 	(e) Each repository must develop drug and medical supply recall policies and procedures. 
270.21 	If a repository receives a recall notification, the repository shall destroy all of the drug or 
270.22 	medical supply in its inventory that is the subject of the recall and complete a record of 
270.23 	destruction form in accordance with paragraph (f). If a drug or medical supply that is the 
270.24 	subject of a Class I or Class II recall has been dispensed, the repository shall immediately 
270.25 	notify the recipient of the recalled drug or medical supply. A drug that potentially is subject 
270.26 	to a recall need not be destroyed if its packaging bears a lot number and that lot of the drug 
270.27 	is not subject to the recall. If no lot number is on the drug's packaging, it must be destroyed.
270.28 	(f) A record of destruction of donated drugs and supplies that are not dispensed under 
270.29 	subdivision 8, are subject to a recall under paragraph (e), or are not suitable for donation 
270.30 	shall be maintained by the repository for at least two years. For each drug or supply destroyed, 
270.31 	the record shall include the following information:
270.32 	(1) the date of destruction;
270.33 	(2) the name, strength, and quantity of the drug destroyed; and
271.1 	(3) the name of the person or firm that destroyed the drug.
271.2 		Subd. 8.Dispensing requirements. (a) Donated drugs and supplies may be dispensed 
271.3 	if the drugs or supplies are prescribed by a practitioner for use by an eligible individual and 
271.4 	are dispensed by a pharmacist or practitioner. A repository shall dispense drugs and supplies 
271.5 	to eligible individuals in the following priority order: (1) individuals who are uninsured; 
271.6 	(2) individuals with no prescription drug coverage; and (3) individuals who are underinsured. 
271.7 	A repository shall dispense donated prescription drugs in compliance with applicable federal 
271.8 	and state laws and regulations for dispensing prescription drugs, including all requirements 
271.9 	relating to packaging, labeling, record keeping, drug utilization review, and patient 
271.10 	counseling.
271.11 	(b) Before dispensing or administering a drug or supply, the pharmacist or practitioner 
271.12 	shall visually inspect the drug or supply for adulteration, misbranding, tampering, and date 
271.13 	of expiration. Drugs or supplies that have expired or appear upon visual inspection to be 
271.14 	adulterated, misbranded, or tampered with in any way must not be dispensed or administered.
271.15 	(c) Before a drug or supply is dispensed or administered to an individual, the individual 
271.16 	must sign a drug repository recipient form acknowledging that the individual understands 
271.17 	the information stated on the form. The board shall develop the form and make it available 
271.18 	on the board's website. The form must include the following information:
271.19 	(1) that the drug or supply being dispensed or administered has been donated and may 
271.20 	have been previously dispensed;
271.21 	(2) that a visual inspection has been conducted by the pharmacist or practitioner to ensure 
271.22 	that the drug or supply has not expired, has not been adulterated or misbranded, and is in 
271.23 	its original, unopened packaging; and
271.24 	(3) that the dispensing pharmacist, the dispensing or administering practitioner, the 
271.25 	central repository or local repository, the Board of Pharmacy, and any other participant of 
271.26 	the drug medication repository program cannot guarantee the safety of the drug or medical 
271.27 	supply being dispensed or administered and that the pharmacist or practitioner has determined 
271.28 	that the drug or supply is safe to dispense or administer based on the accuracy of the donor's 
271.29 	form submitted with the donated drug or medical supply and the visual inspection required 
271.30 	to be performed by the pharmacist or practitioner before dispensing or administering.
271.31 		Subd. 9.Handling fees. (a) The central or local repository may charge the individual 
271.32 	receiving a drug or supply a handling fee of no more than 250 percent of the medical 
271.33 	assistance program dispensing fee for each drug or medical supply dispensed or administered 
271.34 	by that repository.
272.1 	(b) A repository that dispenses or administers a drug or medical supply through the drug
272.2 	medication repository program shall not receive reimbursement under the medical assistance 
272.3 	program or the MinnesotaCare program for that dispensed or administered drug or supply.
272.4 		Subd. 10.Distribution of donated drugs and supplies. (a) The central repository and 
272.5 	local repositories may distribute drugs and supplies donated under the drug medication
272.6 	repository program to other participating repositories for use pursuant to this program.
272.7 	(b) A local repository that elects not to dispense donated drugs or supplies must transfer 
272.8 	all donated drugs and supplies to the central repository. A copy of the donor form that was 
272.9 	completed by the original donor under subdivision 6 must be provided to the central 
272.10 	repository at the time of transfer.
272.11 		Subd. 11.Forms and record-keeping requirements. (a) The following forms developed 
272.12 	for the administration of this program shall be utilized by the participants of the program 
272.13 	and shall be available on the board's website:
272.14 	(1) intake application form described under subdivision 5;
272.15 	(2) local repository participation form described under subdivision 4;
272.16 	(3) local repository withdrawal form described under subdivision 4;
272.17 	(4) drug medication repository donor form described under subdivision 6;
272.18 	(5) record of destruction form described under subdivision 7; and
272.19 	(6) drug medication repository recipient form described under subdivision 8.
272.20 	(b) All records, including drug inventory, inspection, and disposal of donated prescription
272.21 	drugs and medical supplies, must be maintained by a repository for a minimum of two years. 
272.22 	Records required as part of this program must be maintained pursuant to all applicable 
272.23 	practice acts.
272.24 	(c) Data collected by the drug medication repository program from all local repositories 
272.25 	shall be submitted quarterly or upon request to the central repository. Data collected may 
272.26 	consist of the information, records, and forms required to be collected under this section.
272.27 	(d) The central repository shall submit reports to the board as required by the contract 
272.28 	or upon request of the board.
272.29 		Subd. 12.Liability. (a) The manufacturer of a drug or supply is not subject to criminal 
272.30 	or civil liability for injury, death, or loss to a person or to property for causes of action 
272.31 	described in clauses (1) and (2). A manufacturer is not liable for:
273.1 	(1) the intentional or unintentional alteration of the drug or supply by a party not under 
273.2 	the control of the manufacturer; or
273.3 	(2) the failure of a party not under the control of the manufacturer to transfer or 
273.4 	communicate product or consumer information or the expiration date of the donated drug 
273.5 	or supply.
273.6 	(b) A health care facility participating in the program, a pharmacist dispensing a drug 
273.7 	or supply pursuant to the program, a practitioner dispensing or administering a drug or 
273.8 	supply pursuant to the program, or a donor of a drug or medical supply is immune from 
273.9 	civil liability for an act or omission that causes injury to or the death of an individual to 
273.10 	whom the drug or supply is dispensed and no disciplinary action by a health-related licensing 
273.11 	board shall be taken against a pharmacist or practitioner so long as the drug or supply is 
273.12 	donated, accepted, distributed, and dispensed according to the requirements of this section. 
273.13 	This immunity does not apply if the act or omission involves reckless, wanton, or intentional 
273.14 	misconduct, or malpractice unrelated to the quality of the drug or medical supply.
273.15 		Subd. 13.Drug returned for credit. Nothing in this section allows a long-term care 
273.16 	facility to donate a drug to a central or local repository when federal or state law requires 
273.17 	the drug to be returned to the pharmacy that initially dispensed it, so that the pharmacy can 
273.18 	credit the payer for the amount of the drug returned.
273.19 		Subd. 14.Cooperation. The central repository, as approved by the Board of Pharmacy, 
273.20 	may enter into an agreement with another state that has an established drug repository or 
273.21 	drug donation program if the other state's program includes regulations to ensure the purity, 
273.22 	integrity, and safety of the drugs and supplies donated, to permit the central repository to 
273.23 	offer to another state program inventory that is not needed by a Minnesota resident and to 
273.24 	accept inventory from another state program to be distributed to local repositories and 
273.25 	dispensed to Minnesota residents in accordance with this program.
273.26 		Subd. 15.Funding. The central repository may seek grants and other money from 
273.27 	nonprofit charitable organizations, the federal government, and other sources to fund the 
273.28 	ongoing operations of the medication repository program.

273.29 	Sec. 17. Minnesota Statutes 2022, section 151.74, subdivision 3, is amended to read:
273.30 		Subd. 3.Access to urgent-need insulin. (a) MNsure shall develop an application form 
273.31 	to be used by an individual who is in urgent need of insulin. The application must ask the 
273.32 	individual to attest to the eligibility requirements described in subdivision 2. The form shall 
273.33 	be accessible through MNsure's website. MNsure shall also make the form available to 
274.1 	pharmacies and health care providers who prescribe or dispense insulin, hospital emergency 
274.2 	departments, urgent care clinics, and community health clinics. By submitting a completed, 
274.3 	signed, and dated application to a pharmacy, the individual attests that the information 
274.4 	contained in the application is correct.
274.5 	(b) If the individual is in urgent need of insulin, the individual may present a completed, 
274.6 	signed, and dated application form to a pharmacy. The individual must also:
274.7 	(1) have a valid insulin prescription; and
274.8 	(2) present the pharmacist with identification indicating Minnesota residency in the form 
274.9 	of a valid Minnesota identification card, driver's license or permit, individual taxpayer 
274.10 	identification number, or Tribal identification card as defined in section 171.072, paragraph 
274.11 	(b). If the individual in urgent need of insulin is under the age of 18, the individual's parent 
274.12 	or legal guardian must provide the pharmacist with proof of residency.
274.13 	(c) Upon receipt of a completed and signed application, the pharmacist shall dispense 
274.14 	the prescribed insulin in an amount that will provide the individual with a 30-day supply. 
274.15 	The pharmacy must notify the health care practitioner who issued the prescription order no 
274.16 	later than 72 hours after the insulin is dispensed.
274.17 	(d) The pharmacy may submit to the manufacturer of the dispensed insulin product or 
274.18 	to the manufacturer's vendor a claim for payment that is in accordance with the National 
274.19 	Council for Prescription Drug Program standards for electronic claims processing, unless 
274.20 	the manufacturer agrees to send to the pharmacy a replacement supply of the same insulin 
274.21 	as dispensed in the amount dispensed. If the pharmacy submits an electronic claim to the 
274.22 	manufacturer or the manufacturer's vendor, the manufacturer or vendor shall reimburse the 
274.23 	pharmacy in an amount that covers the pharmacy's acquisition cost.
274.24 	(e) The pharmacy may collect an insulin co-payment from the individual to cover the 
274.25 	pharmacy's costs of processing and dispensing in an amount not to exceed $35 for the 30-day 
274.26 	supply of insulin dispensed.
274.27 	(f) The pharmacy shall also provide each eligible individual with the information sheet 
274.28 	described in subdivision 7 and a list of trained navigators provided by the Board of Pharmacy 
274.29 	for the individual to contact if the individual is in need of accessing ongoing insulin coverage 
274.30 	options, including assistance in:
274.31 	(1) applying for medical assistance or MinnesotaCare;
274.32 	(2) applying for a qualified health plan offered through MNsure, subject to open and 
274.33 	special enrollment periods;
275.1 	(3) accessing information on providers who participate in prescription drug discount 
275.2 	programs, including providers who are authorized to participate in the 340B program under 
275.3 	section 340b of the federal Public Health Services Act, United States Code, title 42, section 
275.4 	256b; and
275.5 	(4) accessing insulin manufacturers' patient assistance programs, co-payment assistance 
275.6 	programs, and other foundation-based programs.
275.7 	(g) The pharmacist shall retain a copy of the application form submitted by the individual 
275.8 	to the pharmacy for reporting and auditing purposes.

275.9 	Sec. 18. Minnesota Statutes 2022, section 151.74, subdivision 4, is amended to read:
275.10 		Subd. 4.Continuing safety net program; general. (a) Each manufacturer shall make 
275.11 	a patient assistance program available to any individual who meets the requirements of this 
275.12 	subdivision. Each manufacturer's patient assistance programs must meet the requirements 
275.13 	of this section. Each manufacturer shall provide the Board of Pharmacy with information 
275.14 	regarding the manufacturer's patient assistance program, including contact information for 
275.15 	individuals to call for assistance in accessing their patient assistance program.
275.16 	(b) To be eligible to participate in a manufacturer's patient assistance program, the 
275.17 	individual must:
275.18 	(1) be a Minnesota resident with a valid Minnesota identification card that indicates 
275.19 	Minnesota residency in the form of a Minnesota identification card, driver's license or 
275.20 	permit, individual taxpayer identification number, or Tribal identification card as defined 
275.21 	in section 171.072, paragraph (b). If the individual is under the age of 18, the individual's 
275.22 	parent or legal guardian must provide proof of residency;
275.23 	(2) have a family income that is equal to or less than 400 percent of the federal poverty 
275.24 	guidelines;
275.25 	(3) not be enrolled in medical assistance or MinnesotaCare;
275.26 	(4) not be eligible to receive health care through a federally funded program or receive 
275.27 	prescription drug benefits through the Department of Veterans Affairs; and
275.28 	(5) not be enrolled in prescription drug coverage through an individual or group health 
275.29 	plan that limits the total amount of cost-sharing that an enrollee is required to pay for a 
275.30 	30-day supply of insulin, including co-payments, deductibles, or coinsurance to $75 or less, 
275.31 	regardless of the type or amount of insulin needed.
276.1 	(c) Notwithstanding the requirement in paragraph (b), clause (4), an individual who is 
276.2 	enrolled in Medicare Part D is eligible for a manufacturer's patient assistance program if 
276.3 	the individual has spent $1,000 on prescription drugs in the current calendar year and meets 
276.4 	the eligibility requirements in paragraph (b), clauses (1) to (3).
276.5 	(d) An individual who is interested in participating in a manufacturer's patient assistance 
276.6 	program may apply directly to the manufacturer; apply through the individual's health care 
276.7 	practitioner, if the practitioner participates; or contact a trained navigator for assistance in 
276.8 	finding a long-term insulin supply solution, including assistance in applying to a 
276.9 	manufacturer's patient assistance program.

276.10 	Sec. 19. Minnesota Statutes 2022, section 152.126, subdivision 4, is amended to read:
276.11 		Subd. 4.Reporting requirements; notice. (a) Each dispenser must submit the following 
276.12 	data to the board or its designated vendor:
276.13 	(1) name of the prescriber;
276.14 	(2) national provider identifier of the prescriber;
276.15 	(3) name of the dispenser;
276.16 	(4) national provider identifier of the dispenser;
276.17 	(5) prescription number;
276.18 	(6) name of the patient for whom the prescription was written;
276.19 	(7) address of the patient for whom the prescription was written;
276.20 	(8) date of birth of the patient for whom the prescription was written;
276.21 	(9) date the prescription was written;
276.22 	(10) date the prescription was filled;
276.23 	(11) name and strength of the controlled substance;
276.24 	(12) quantity of controlled substance prescribed;
276.25 	(13) quantity of controlled substance dispensed; and
276.26 	(14) number of days supply.
276.27 	(b) The dispenser must submit the required information by a procedure and in a format 
276.28 	established by the board. The board may allow dispensers to omit data listed in this 
276.29 	subdivision or may require the submission of data not listed in this subdivision provided 
276.30 	the omission or submission is necessary for the purpose of complying with the electronic 
277.1 	reporting or data transmission standards of the American Society for Automation in 
277.2 	Pharmacy, the National Council on Prescription Drug Programs, or other relevant national 
277.3 	standard-setting body.
277.4 	(c) A dispenser is not required to submit this data for those controlled substance 
277.5 	prescriptions dispensed for:
277.6 	(1) individuals residing in a health care facility as defined in section 151.58, subdivision 
277.7 	2, paragraph (b), when a drug is distributed through the use of an automated drug distribution 
277.8 	system according to section 151.58; and
277.9 	(2) individuals receiving a drug sample that was packaged by a manufacturer and provided 
277.10 	to the dispenser for dispensing as a professional sample pursuant to Code of Federal 
277.11 	Regulations, title 21, part 203, subpart D.; and
277.12 	(3) individuals whose prescriptions are being mailed, shipped, or delivered from 
277.13 	Minnesota to another state, so long as the data are reported to the prescription drug monitoring 
277.14 	program of that state.
277.15 	(d) A dispenser must provide notice to the patient for whom the prescription was written 
277.16 	a conspicuous notice, or to that patient's authorized representative, of the reporting 
277.17 	requirements of this section and notice that the information may be used for program 
277.18 	administration purposes.
277.19 	(e) The dispenser must submit the required information within the time frame specified 
277.20 	by the board; if no reportable prescriptions are dispensed or sold on any day, a report 
277.21 	indicating that fact must be filed with the board.
277.22 	(f) The dispenser must submit accurate information to the database and must correct 
277.23 	errors identified during the submission process within seven calendar days.
277.24 	(g) For the purposes of this paragraph, the term "subject of the data" means the individual 
277.25 	reported as being the patient, the practitioner reported as being the prescriber, the client 
277.26 	when an animal is reported as being the patient, or an authorized agent of these individuals. 
277.27 	The dispenser must correct errors brought to its attention by the subject of the data within 
277.28 	seven calendar days, unless the dispenser verifies that an error did not occur and the data 
277.29 	were correctly submitted. The dispenser must notify the subject of the data that either the 
277.30 	error was corrected or that no error occurred.

278.1 	Sec. 20. Minnesota Statutes 2022, section 152.126, subdivision 5, is amended to read:
278.2 		Subd. 5.Use of data by board. (a) The board shall develop and maintain a database of 
278.3 	the data reported under subdivision 4. The board shall maintain data that could identify an 
278.4 	individual prescriber or dispenser in encrypted form. Except as otherwise allowed under 
278.5 	subdivision 6, the database may be used by permissible users identified under subdivision 
278.6 	6 for the identification of:
278.7 	(1) individuals receiving prescriptions for controlled substances from prescribers who 
278.8 	subsequently obtain controlled substances from dispensers in quantities or with a frequency 
278.9 	inconsistent with generally recognized standards of use for those controlled substances, 
278.10 	including standards accepted by national and international pain management associations; 
278.11 	and
278.12 	(2) individuals presenting forged or otherwise false or altered prescriptions for controlled 
278.13 	substances to dispensers.
278.14 	(b) No permissible user identified under subdivision 6 may access the database for the 
278.15 	sole purpose of identifying prescribers of controlled substances for unusual or excessive 
278.16 	prescribing patterns without a valid search warrant or court order.
278.17 	(c) No personnel of a state or federal occupational licensing board or agency may access 
278.18 	the database for the purpose of obtaining information to be used to initiate a disciplinary 
278.19 	action against a prescriber.
278.20 	(d) Data reported under subdivision 4 shall be made available to permissible users for 
278.21 	a 12-month period beginning the day the data was received and ending 12 months from the 
278.22 	last day of the month in which the data was received, except that permissible users defined 
278.23 	in subdivision 6, paragraph (b), clauses (6) (7) and (7) (8), may use all data collected under 
278.24 	this section for the purposes of administering, operating, and maintaining the prescription 
278.25 	monitoring program and conducting trend analyses and other studies necessary to evaluate 
278.26 	the effectiveness of the program.
278.27 	(e) Data reported during the period January 1, 2015, through December 31, 2018, may 
278.28 	be retained through December 31, 2019, in an identifiable manner. Effective January 1, 
278.29 	2020, data older than 24 months must be destroyed. Data reported for prescriptions dispensed 
278.30 	on or after January 1, 2020, must be destroyed no later than 12 months from the date the 
278.31 	data prescription was received reported as dispensed.

279.1 	Sec. 21. Minnesota Statutes 2022, section 152.126, subdivision 6, is amended to read:
279.2 		Subd. 6.Access to reporting system data. (a) Except as indicated in this subdivision, 
279.3 	the data submitted to the board under subdivision 4 is private data on individuals as defined 
279.4 	in section 13.02, subdivision 12, and not subject to public disclosure.
279.5 	(b) Except as specified in subdivision 5, the following persons shall be considered 
279.6 	permissible users and may access the data submitted under subdivision 4 in the same or 
279.7 	similar manner, and for the same or similar purposes, as those persons who are authorized 
279.8 	to access similar private data on individuals under federal and state law:
279.9 	(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has 
279.10 	delegated the task of accessing the data, to the extent the information relates specifically to 
279.11 	a current patient, to whom the prescriber is:
279.12 	(i) prescribing or considering prescribing any controlled substance;
279.13 	(ii) providing emergency medical treatment for which access to the data may be necessary;
279.14 	(iii) providing care, and the prescriber has reason to believe, based on clinically valid 
279.15 	indications, that the patient is potentially abusing a controlled substance; or
279.16 	(iv) providing other medical treatment for which access to the data may be necessary 
279.17 	for a clinically valid purpose and the patient has consented to access to the submitted data, 
279.18 	and with the provision that the prescriber remains responsible for the use or misuse of data 
279.19 	accessed by a delegated agent or employee;
279.20 	(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has 
279.21 	delegated the task of accessing the data, to the extent the information relates specifically to 
279.22 	a current patient to whom that dispenser is dispensing or considering dispensing any 
279.23 	controlled substance and with the provision that the dispenser remains responsible for the 
279.24 	use or misuse of data accessed by a delegated agent or employee;
279.25 	(3) a licensed dispensing practitioner or licensed pharmacist to the extent necessary to 
279.26 	determine whether corrections made to the data reported under subdivision 4 are accurate;
279.27 	(4) a licensed pharmacist who is providing pharmaceutical care for which access to the 
279.28 	data may be necessary to the extent that the information relates specifically to a current 
279.29 	patient for whom the pharmacist is providing pharmaceutical care: (i) if the patient has 
279.30 	consented to access to the submitted data; or (ii) if the pharmacist is consulted by a prescriber 
279.31 	who is requesting data in accordance with clause (1);
280.1 	(4) (5) an individual who is the recipient of a controlled substance prescription for which 
280.2 	data was submitted under subdivision 4, or a guardian of the individual, parent or guardian 
280.3 	of a minor, or health care agent of the individual acting under a health care directive under 
280.4 	chapter 145C. For purposes of this clause, access by individuals includes persons in the 
280.5 	definition of an individual under section 13.02;
280.6 	(5) (6) personnel or designees of a health-related licensing board listed in section 214.01, 
280.7 	subdivision 2, or of the Emergency Medical Services Regulatory Board, assigned to conduct 
280.8 	a bona fide investigation of a complaint received by that board that alleges that a specific 
280.9 	licensee is impaired by use of a drug for which data is collected under subdivision 4, has 
280.10 	engaged in activity that would constitute a crime as defined in section 152.025, or has 
280.11 	engaged in the behavior specified in subdivision 5, paragraph (a);
280.12 	(6) (7) personnel of the board engaged in the collection, review, and analysis of controlled 
280.13 	substance prescription information as part of the assigned duties and responsibilities under 
280.14 	this section;
280.15 	(7) (8) authorized personnel of a vendor under contract with the board, or under contract 
280.16 	with the state of Minnesota and approved by the board, who are engaged in the design, 
280.17 	evaluation, implementation, operation, and or maintenance of the prescription monitoring 
280.18 	program as part of the assigned duties and responsibilities of their employment, provided 
280.19 	that access to data is limited to the minimum amount necessary to carry out such duties and 
280.20 	responsibilities, and subject to the requirement of de-identification and time limit on retention 
280.21 	of data specified in subdivision 5, paragraphs (d) and (e);
280.22 	(8) (9) federal, state, and local law enforcement authorities acting pursuant to a valid 
280.23 	search warrant;
280.24 	(9) (10) personnel of the Minnesota health care programs assigned to use the data 
280.25 	collected under this section to identify and manage recipients whose usage of controlled 
280.26 	substances may warrant restriction to a single primary care provider, a single outpatient 
280.27 	pharmacy, and a single hospital;
280.28 	(10) (11) personnel of the Department of Human Services assigned to access the data 
280.29 	pursuant to paragraph (k);
280.30 	(11) (12) personnel of the health professionals services program established under section 
280.31 	214.31, to the extent that the information relates specifically to an individual who is currently 
280.32 	enrolled in and being monitored by the program, and the individual consents to access to 
280.33 	that information. The health professionals services program personnel shall not provide this 
281.1 	data to a health-related licensing board or the Emergency Medical Services Regulatory 
281.2 	Board, except as permitted under section 214.33, subdivision 3; and
281.3 	(12) (13) personnel or designees of a health-related licensing board other than the Board 
281.4 	of Pharmacy listed in section 214.01, subdivision 2, assigned to conduct a bona fide 
281.5 	investigation of a complaint received by that board that alleges that a specific licensee is 
281.6 	inappropriately prescribing controlled substances as defined in this section. For the purposes 
281.7 	of this clause, the health-related licensing board may also obtain utilization data; and
281.8 	(14) personnel of the board specifically assigned to conduct a bona fide investigation 
281.9 	of a specific licensee or registrant. For the purposes of this clause, the board may also obtain 
281.10 	utilization data.
281.11 	(c) By July 1, 2017, every prescriber licensed by a health-related licensing board listed 
281.12 	in section 214.01, subdivision 2, practicing within this state who is authorized to prescribe 
281.13 	controlled substances for humans and who holds a current registration issued by the federal 
281.14 	Drug Enforcement Administration, and every pharmacist licensed by the board and practicing 
281.15 	within the state, shall register and maintain a user account with the prescription monitoring 
281.16 	program. Data submitted by a prescriber, pharmacist, or their delegate during the registration 
281.17 	application process, other than their name, license number, and license type, is classified 
281.18 	as private pursuant to section 13.02, subdivision 12.
281.19 	(d) Notwithstanding paragraph (b), beginning January 1, 2021, a prescriber or an agent 
281.20 	or employee of the prescriber to whom the prescriber has delegated the task of accessing 
281.21 	the data, must access the data submitted under subdivision 4 to the extent the information 
281.22 	relates specifically to the patient:
281.23 	(1) before the prescriber issues an initial prescription order for a Schedules II through 
281.24 	IV opiate controlled substance to the patient; and
281.25 	(2) at least once every three months for patients receiving an opiate for treatment of 
281.26 	chronic pain or participating in medically assisted treatment for an opioid addiction.
281.27 	(e) Paragraph (d) does not apply if:
281.28 	(1) the patient is receiving palliative care, or hospice or other end-of-life care;
281.29 	(2) the patient is being treated for pain due to cancer or the treatment of cancer;
281.30 	(3) the prescription order is for a number of doses that is intended to last the patient five 
281.31 	days or less and is not subject to a refill;
282.1 	(4) the prescriber and patient have a current or ongoing provider/patient relationship of 
282.2 	a duration longer than one year;
282.3 	(5) the prescription order is issued within 14 days following surgery or three days 
282.4 	following oral surgery or follows the prescribing protocols established under the opioid 
282.5 	prescribing improvement program under section 256B.0638;
282.6 	(6) the controlled substance is prescribed or administered to a patient who is admitted 
282.7 	to an inpatient hospital;
282.8 	(7) the controlled substance is lawfully administered by injection, ingestion, or any other 
282.9 	means to the patient by the prescriber, a pharmacist, or by the patient at the direction of a 
282.10 	prescriber and in the presence of the prescriber or pharmacist;
282.11 	(8) due to a medical emergency, it is not possible for the prescriber to review the data 
282.12 	before the prescriber issues the prescription order for the patient; or
282.13 	(9) the prescriber is unable to access the data due to operational or other technological 
282.14 	failure of the program so long as the prescriber reports the failure to the board.
282.15 	(f) Only permissible users identified in paragraph (b), clauses (1), (2), (3), (6) (4), (7), 
282.16 	(9), and (8), (10), and (11), may directly access the data electronically. No other permissible 
282.17 	users may directly access the data electronically. If the data is directly accessed electronically, 
282.18 	the permissible user shall implement and maintain a comprehensive information security 
282.19 	program that contains administrative, technical, and physical safeguards that are appropriate 
282.20 	to the user's size and complexity, and the sensitivity of the personal information obtained. 
282.21 	The permissible user shall identify reasonably foreseeable internal and external risks to the 
282.22 	security, confidentiality, and integrity of personal information that could result in the 
282.23 	unauthorized disclosure, misuse, or other compromise of the information and assess the 
282.24 	sufficiency of any safeguards in place to control the risks.
282.25 	(g) The board shall not release data submitted under subdivision 4 unless it is provided 
282.26 	with evidence, satisfactory to the board, that the person requesting the information is entitled 
282.27 	to receive the data.
282.28 	(h) The board shall maintain a log of all persons who access the data for a period of at 
282.29 	least three years and shall ensure that any permissible user complies with paragraph (c) 
282.30 	prior to attaining direct access to the data.
282.31 	(i) Section 13.05, subdivision 6, shall apply to any contract the board enters into pursuant 
282.32 	to subdivision 2. A vendor shall not use data collected under this section for any purpose 
282.33 	not specified in this section.
283.1 	(j) The board may participate in an interstate prescription monitoring program data 
283.2 	exchange system provided that permissible users in other states have access to the data only 
283.3 	as allowed under this section, and that section 13.05, subdivision 6, applies to any contract 
283.4 	or memorandum of understanding that the board enters into under this paragraph.
283.5 	(k) With available appropriations, the commissioner of human services shall establish 
283.6 	and implement a system through which the Department of Human Services shall routinely 
283.7 	access the data for the purpose of determining whether any client enrolled in an opioid 
283.8 	treatment program licensed according to chapter 245A has been prescribed or dispensed a 
283.9 	controlled substance in addition to that administered or dispensed by the opioid treatment 
283.10 	program. When the commissioner determines there have been multiple prescribers or multiple 
283.11 	prescriptions of controlled substances, the commissioner shall:
283.12 	(1) inform the medical director of the opioid treatment program only that the 
283.13 	commissioner determined the existence of multiple prescribers or multiple prescriptions of 
283.14 	controlled substances; and
283.15 	(2) direct the medical director of the opioid treatment program to access the data directly, 
283.16 	review the effect of the multiple prescribers or multiple prescriptions, and document the 
283.17 	review.
283.18 	If determined necessary, the commissioner of human services shall seek a federal waiver 
283.19 	of, or exception to, any applicable provision of Code of Federal Regulations, title 42, section 
283.20 	2.34, paragraph (c), prior to implementing this paragraph.
283.21 	(l) The board shall review the data submitted under subdivision 4 on at least a quarterly 
283.22 	basis and shall establish criteria, in consultation with the advisory task force, for referring 
283.23 	information about a patient to prescribers and dispensers who prescribed or dispensed the 
283.24 	prescriptions in question if the criteria are met.
283.25 	(m) The board shall conduct random audits, on at least a quarterly basis, of electronic 
283.26 	access by permissible users, as identified in paragraph (b), clauses (1), (2), (3), (6) (4), (7), 
283.27 	(9), and (8), (10), and (11), to the data in subdivision 4, to ensure compliance with permissible 
283.28 	use as defined in this section. A permissible user whose account has been selected for a 
283.29 	random audit shall respond to an inquiry by the board, no later than 30 days after receipt of 
283.30 	notice that an audit is being conducted. Failure to respond may result in deactivation of 
283.31 	access to the electronic system and referral to the appropriate health licensing board, or the 
283.32 	commissioner of human services, for further action. The board shall report the results of 
283.33 	random audits to the chairs and ranking minority members of the legislative committees 
284.1 	with jurisdiction over health and human services policy and finance and government data 
284.2 	practices.
284.3 	(n) A permissible user who has delegated the task of accessing the data in subdivision 
284.4 	4 to an agent or employee shall audit the use of the electronic system by delegated agents 
284.5 	or employees on at least a quarterly basis to ensure compliance with permissible use as 
284.6 	defined in this section. When a delegated agent or employee has been identified as 
284.7 	inappropriately accessing data, the permissible user must immediately remove access for 
284.8 	that individual and notify the board within seven days. The board shall notify all permissible 
284.9 	users associated with the delegated agent or employee of the alleged violation.
284.10 	(o) A permissible user who delegates access to the data submitted under subdivision 4 
284.11 	to an agent or employee shall terminate that individual's access to the data within three 
284.12 	business days of the agent or employee leaving employment with the permissible user. The 
284.13 	board may conduct random audits to determine compliance with this requirement.

284.14 	Sec. 22. Minnesota Statutes 2022, section 152.126, subdivision 9, is amended to read:
284.15 		Subd. 9.Immunity from liability; no requirement to obtain information. (a) A 
284.16 	pharmacist, prescriber, or other dispenser making a report to the program in good faith under 
284.17 	this section is immune from any civil, criminal, or administrative liability, which might 
284.18 	otherwise be incurred or imposed as a result of the report, or on the basis that the pharmacist 
284.19 	or prescriber did or did not seek or obtain or use information from the program.
284.20 	(b) Except as required by subdivision 6, paragraph (d), nothing in this section shall 
284.21 	require a pharmacist, prescriber, or other dispenser to obtain information about a patient 
284.22 	from the program, and the pharmacist, prescriber, or other dispenser, if acting in good faith, 
284.23 	is immune from any civil, criminal, or administrative liability that might otherwise be 
284.24 	incurred or imposed for requesting, receiving, or using information from the program.

284.25 	Sec. 23. LICENSED TRADITIONAL MIDWIVES; AUTHORITY TO PURCHASE 
284.26 	CERTAIN DRUGS.
 284.27 	By November 15, 2023, the Minnesota Board of Medical Practice, in consultation with 
284.28 	the Advisory Council on Licensed Traditional Midwifery, must:
284.29 	(1) issue an administrative order to allow licensed traditional midwives to purchase 
284.30 	drugs listed in Minnesota Statutes, section 147D.09, paragraph (b); or
284.31 	(2) make recommendations to the chairs and ranking minority members of the legislative 
284.32 	committees with jurisdiction on health finance and policy on how to amend Minnesota 
285.1 	Statutes, section 147D.09, or other statutes to allow licensed traditional midwives to purchase 
285.2 	drugs listed in Minnesota Statutes, section 147D.09, paragraph (b).

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

285.4 	ARTICLE 7
285.5 	BACKGROUND STUDIES

285.6 	Section 1. Minnesota Statutes 2022, section 13.46, subdivision 4, is amended to read:
285.7 		Subd. 4.Licensing data. (a) As used in this subdivision:
285.8 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
285.9 	welfare system pertaining to persons licensed or registered or who apply for licensure or 
285.10 	registration or who formerly were licensed or registered under the authority of the 
285.11 	commissioner of human services;
285.12 	(2) "client" means a person who is receiving services from a licensee or from an applicant 
285.13 	for licensure; and
285.14 	(3) "personal and personal financial data" are Social Security numbers, identity of and 
285.15 	letters of reference, insurance information, reports from the Bureau of Criminal 
285.16 	Apprehension, health examination reports, and social/home studies.
285.17 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license 
285.18 	holders, and former licensees are public: name, address, telephone number of licensees, 
285.19 	date of receipt of a completed application, dates of licensure, licensed capacity, type of 
285.20 	client preferred, variances granted, record of training and education in child care and child 
285.21 	development, type of dwelling, name and relationship of other family members, previous 
285.22 	license history, class of license, the existence and status of complaints, and the number of 
285.23 	serious injuries to or deaths of individuals in the licensed program as reported to the 
285.24 	commissioner of human services, the local social services agency, or any other county 
285.25 	welfare agency. For purposes of this clause, a serious injury is one that is treated by a 
285.26 	physician.
285.27 	(ii) Except as provided in item (v), when a correction order, an order to forfeit a fine, 
285.28 	an order of license suspension, an order of temporary immediate suspension, an order of 
285.29 	license revocation, an order of license denial, or an order of conditional license has been 
285.30 	issued, or a complaint is resolved, the following data on current and former licensees and 
285.31 	applicants are public: the general nature of the complaint or allegations leading to the 
285.32 	temporary immediate suspension; the substance and investigative findings of the licensing 
286.1 	or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence 
286.2 	of settlement negotiations; the record of informal resolution of a licensing violation; orders 
286.3 	of hearing; findings of fact; conclusions of law; specifications of the final correction order, 
286.4 	fine, suspension, temporary immediate suspension, revocation, denial, or conditional license 
286.5 	contained in the record of licensing action; whether a fine has been paid; and the status of 
286.6 	any appeal of these actions.
286.7 	(iii) When a license denial under section 245A.05 or a sanction under section 245A.07 
286.8 	is based on a determination that a license holder, applicant, or controlling individual is 
286.9 	responsible for maltreatment under section 626.557 or chapter 260E, the identity of the 
286.10 	applicant, license holder, or controlling individual as the individual responsible for 
286.11 	maltreatment is public data at the time of the issuance of the license denial or sanction.
286.12 	(iv) When a license denial under section 245A.05 or a sanction under section 245A.07 
286.13 	is based on a determination that a license holder, applicant, or controlling individual is 
286.14 	disqualified under chapter 245C, the identity of the license holder, applicant, or controlling 
286.15 	individual as the disqualified individual and the reason for the disqualification are is public 
286.16 	data at the time of the issuance of the licensing sanction or denial. If the applicant, license 
286.17 	holder, or controlling individual requests reconsideration of the disqualification and the 
286.18 	disqualification is affirmed, the reason for the disqualification and the reason to not set aside 
286.19 	the disqualification are public private data.
286.20 	(v) A correction order or fine issued to a child care provider for a licensing violation is 
286.21 	private data on individuals under section 13.02, subdivision 12, or nonpublic data under 
286.22 	section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
286.23 	(2) For applicants who withdraw their application prior to licensure or denial of a license, 
286.24 	the following data are public: the name of the applicant, the city and county in which the 
286.25 	applicant was seeking licensure, the dates of the commissioner's receipt of the initial 
286.26 	application and completed application, the type of license sought, and the date of withdrawal 
286.27 	of the application.
286.28 	(3) For applicants who are denied a license, the following data are public: the name and 
286.29 	address of the applicant, the city and county in which the applicant was seeking licensure, 
286.30 	the dates of the commissioner's receipt of the initial application and completed application, 
286.31 	the type of license sought, the date of denial of the application, the nature of the basis for 
286.32 	the denial, the existence of settlement negotiations, the record of informal resolution of a 
286.33 	denial, orders of hearings, findings of fact, conclusions of law, specifications of the final 
286.34 	order of denial, and the status of any appeal of the denial.
287.1 	(4) When maltreatment is substantiated under section 626.557 or chapter 260E and the 
287.2 	victim and the substantiated perpetrator are affiliated with a program licensed under chapter 
287.3 	245A, the commissioner of human services, local social services agency, or county welfare 
287.4 	agency may inform the license holder where the maltreatment occurred of the identity of 
287.5 	the substantiated perpetrator and the victim.
287.6 	(5) Notwithstanding clause (1), for child foster care, only the name of the license holder 
287.7 	and the status of the license are public if the county attorney has requested that data otherwise 
287.8 	classified as public data under clause (1) be considered private data based on the best interests 
287.9 	of a child in placement in a licensed program.
287.10 	(c) The following are private data on individuals under section 13.02, subdivision 12, 
287.11 	or nonpublic data under section 13.02, subdivision 9: personal and personal financial data 
287.12 	on family day care program and family foster care program applicants and licensees and 
287.13 	their family members who provide services under the license.
287.14 	(d) The following are private data on individuals: the identity of persons who have made 
287.15 	reports concerning licensees or applicants that appear in inactive investigative data, and the 
287.16 	records of clients or employees of the licensee or applicant for licensure whose records are 
287.17 	received by the licensing agency for purposes of review or in anticipation of a contested 
287.18 	matter. The names of reporters of complaints or alleged violations of licensing standards 
287.19 	under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged maltreatment 
287.20 	under section 626.557 and chapter 260E, are confidential data and may be disclosed only 
287.21 	as provided in section 260E.21, subdivision 4; 260E.35; or 626.557, subdivision 12b.
287.22 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this 
287.23 	subdivision become public data if submitted to a court or administrative law judge as part 
287.24 	of a disciplinary proceeding in which there is a public hearing concerning a license which 
287.25 	has been suspended, immediately suspended, revoked, or denied.
287.26 	(f) Data generated in the course of licensing investigations that relate to an alleged 
287.27 	violation of law are investigative data under subdivision 3.
287.28 	(g) Data that are not public data collected, maintained, used, or disseminated under this 
287.29 	subdivision that relate to or are derived from a report as defined in section 260E.03, or 
287.30 	626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35, 
287.31 	subdivision 6, and 626.557, subdivision 12b.
287.32 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
287.33 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
287.34 	defined in section 626.557 or chapter 260E may be exchanged with the Department of 
288.1 	Health for purposes of completing background studies pursuant to section 144.057 and with 
288.2 	the Department of Corrections for purposes of completing background studies pursuant to 
288.3 	section 241.021.
288.4 	(i) Data on individuals collected according to licensing activities under chapters 245A 
288.5 	and 245C, data on individuals collected by the commissioner of human services according 
288.6 	to investigations under section 626.557 and chapters 245A, 245B, 245C, 245D, and 260E 
288.7 	may be shared with the Department of Human Rights, the Department of Health, the 
288.8 	Department of Corrections, the ombudsman for mental health and developmental disabilities, 
288.9 	and the individual's professional regulatory board when there is reason to believe that laws 
288.10 	or standards under the jurisdiction of those agencies may have been violated or the 
288.11 	information may otherwise be relevant to the board's regulatory jurisdiction. Background 
288.12 	study data on an individual who is the subject of a background study under chapter 245C
288.13 	for a licensed service for which the commissioner of human services is the license holder 
288.14 	may be shared with the commissioner and the commissioner's delegate by the licensing 
288.15 	division. Unless otherwise specified in this chapter, the identity of a reporter of alleged 
288.16 	maltreatment or licensing violations may not be disclosed.
288.17 	(j) In addition to the notice of determinations required under sections 260E.24, 
288.18 	subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the 
288.19 	commissioner or the local social services agency has determined that an individual is a 
288.20 	substantiated perpetrator of maltreatment of a child based on sexual abuse, as defined in 
288.21 	section 260E.03, and the commissioner or local social services agency knows that the 
288.22 	individual is a person responsible for a child's care in another facility, the commissioner or 
288.23 	local social services agency shall notify the head of that facility of this determination. The 
288.24 	notification must include an explanation of the individual's available appeal rights and the 
288.25 	status of any appeal. If a notice is given under this paragraph, the government entity making 
288.26 	the notification shall provide a copy of the notice to the individual who is the subject of the 
288.27 	notice.
288.28 	(k) All not public data collected, maintained, used, or disseminated under this subdivision 
288.29 	and subdivision 3 may be exchanged between the Department of Human Services, Licensing 
288.30 	Division, and the Department of Corrections for purposes of regulating services for which 
288.31 	the Department of Human Services and the Department of Corrections have regulatory 
288.32 	authority.

289.1 	Sec. 2. Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision to 
289.2 	read:
289.3 		Subd. 7a.Conservator. "Conservator" has the meaning given in section 524.1-201, 
289.4 	clause (10), and includes proposed and current conservators.

289.5 	Sec. 3. Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision to 
289.6 	read:
289.7 		Subd. 11f.Guardian. "Guardian" has the meaning given in section 524.1-201, clause 
289.8 	(27), and includes proposed and current guardians.

289.9 	Sec. 4. Minnesota Statutes 2022, section 245C.02, subdivision 13e, is amended to read:
289.10 		Subd. 13e.NETStudy 2.0. "NETStudy 2.0" means the commissioner's system that 
289.11 	replaces both NETStudy and the department's internal background study processing system. 
289.12 	NETStudy 2.0 is designed to enhance protection of children and vulnerable adults by 
289.13 	improving the accuracy of background studies through fingerprint-based criminal record 
289.14 	checks and expanding the background studies to include a review of information from the 
289.15 	Minnesota Court Information System and the national crime information database. NETStudy 
289.16 	2.0 is also designed to increase efficiencies in and the speed of the hiring process by:
289.17 	(1) providing access to and updates from public web-based data related to employment 
289.18 	eligibility;
289.19 	(2) decreasing the need for repeat studies through electronic updates of background 
289.20 	study subjects' criminal records;
289.21 	(3) supporting identity verification using subjects' Social Security numbers and 
289.22 	photographs;
289.23 	(4) using electronic employer notifications; and
289.24 	(5) issuing immediate verification of subjects' eligibility to provide services as more 
289.25 	studies are completed under the NETStudy 2.0 system.; and
289.26 	(6) providing electronic access to certain notices for entities and background study 
289.27 	subjects.

289.28 	Sec. 5. Minnesota Statutes 2022, section 245C.03, subdivision 1, is amended to read:
289.29 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a background 
289.30 	study on:
290.1 	(1) the person or persons applying for a license;
290.2 	(2) an individual age 13 and over living in the household where the licensed program 
290.3 	will be provided who is not receiving licensed services from the program;
290.4 	(3) current or prospective employees or contractors of the applicant or license holder 
290.5 	who will have direct contact with persons served by the facility, agency, or program;
290.6 	(4) volunteers or student volunteers who will have direct contact with persons served 
290.7 	by the program to provide program services if the contact is not under the continuous, direct 
290.8 	supervision by an individual listed in clause (1) or (3);
290.9 	(5) an individual age ten to 12 living in the household where the licensed services will 
290.10 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
290.11 	subdivision 15;
290.12 	(6) an individual who, without providing direct contact services at a licensed program, 
290.13 	may have unsupervised access to children or vulnerable adults receiving services from a 
290.14 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
290.15 	subdivision 15;
290.16 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
290.17 	(8) notwithstanding the other requirements in this subdivision, child care background 
290.18 	study subjects as defined in section 245C.02, subdivision 6a; and
290.19 	(9) notwithstanding clause (3), for children's residential facilities and foster residence 
290.20 	settings, any adult working in the facility, whether or not the individual will have direct 
290.21 	contact with persons served by the facility.
290.22 	(b) For child foster care when the license holder resides in the home where foster care 
290.23 	services are provided, a short-term substitute caregiver providing direct contact services for 
290.24 	a child for less than 72 hours of continuous care is not required to receive a background 
290.25 	study under this chapter.
290.26 	(c) This subdivision applies to the following programs that must be licensed under 
290.27 	chapter 245A:
290.28 	(1) adult foster care;
290.29 	(2) child foster care;
290.30 	(3) children's residential facilities;
290.31 	(4) family child care;
291.1 	(5) licensed child care centers;
291.2 	(6) licensed home and community-based services under chapter 245D;
291.3 	(7) residential mental health programs for adults;
291.4 	(8) substance use disorder treatment programs under chapter 245G;
291.5 	(9) withdrawal management programs under chapter 245F;
291.6 	(10) adult day care centers;
291.7 	(11) family adult day services;
291.8 	(12) independent living assistance for youth;
291.9 	(13) detoxification programs;
291.10 	(14) community residential settings; and
291.11 	(15) intensive residential treatment services and residential crisis stabilization under 
291.12 	chapter 245I; and
291.13 	(16) treatment programs for persons with sexual psychopathic personality or sexually 
291.14 	dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts 
291.15 	9515.3000 to 9515.3110.

291.16 	Sec. 6. Minnesota Statutes 2022, section 245C.03, subdivision 1a, is amended to read:
291.17 		Subd. 1a.Procedure. (a) Individuals and organizations that are required under this 
291.18 	section to have or initiate background studies shall comply with the requirements of this 
291.19 	chapter.
291.20 	(b) All studies conducted under this section shall be conducted according to sections 
291.21 	299C.60 to 299C.64. This requirement does not apply to subdivisions 1, paragraph (c), 
291.22 	clauses (2) to (5), and 6a.
291.23 	(c) All data obtained by the commissioner for a background study completed under this 
291.24 	section is classified as private data on individuals, as defined in section 13.02, subdivision 
291.25 	9.

291.26 	Sec. 7. Minnesota Statutes 2022, section 245C.031, subdivision 1, is amended to read:
291.27 		Subdivision 1.Alternative background studies. (a) The commissioner shall conduct 
291.28 	an alternative background study of individuals listed in this section.
292.1 	(b) Notwithstanding other sections of this chapter, all alternative background studies 
292.2 	except subdivision 12 shall be conducted according to this section and with sections 299C.60 
292.3 	to 299C.64.
292.4 	(c) All terms in this section shall have the definitions provided in section 245C.02.
292.5 	(d) The entity that submits an alternative background study request under this section 
292.6 	shall submit the request to the commissioner according to section 245C.05.
292.7 	(e) The commissioner shall comply with the destruction requirements in section 245C.051.
292.8 	(f) Background studies conducted under this section are subject to the provisions of 
292.9 	section 245C.32.
292.10 	(g) The commissioner shall forward all information that the commissioner receives under 
292.11 	section 245C.08 to the entity that submitted the alternative background study request under 
292.12 	subdivision 2. The commissioner shall not make any eligibility determinations regarding 
292.13 	background studies conducted under this section.
292.14 	(h) All data obtained by the commissioner for a background study completed under this 
292.15 	section is classified as private data on individuals, as defined in section 13.02, subdivision 
292.16 	9.

292.17 	Sec. 8. [245C.033] GUARDIANS AND CONSERVATORS; MALTREATMENT 
292.18 	AND STATE LICENSING AGENCY CHECKS.
292.19 		Subdivision 1.Maltreatment data. Requests for maltreatment data submitted pursuant 
292.20 	to section 524.5-118 must include information regarding whether the guardian or conservator 
292.21 	has been a perpetrator of substantiated maltreatment of a vulnerable adult under section 
292.22 	626.557 or a minor under chapter 260E. If the guardian or conservator has been the 
292.23 	perpetrator of substantiated maltreatment of a vulnerable adult or a minor, the commissioner 
292.24 	must include a copy of any available public portion of the investigation memorandum under 
292.25 	section 626.557, subdivision 12b, or any available public portion of the investigation 
292.26 	memorandum under section 260E.30.
292.27 		Subd. 2.State licensing agency data. (a) Requests for state licensing agency data 
292.28 	submitted pursuant to section 524.5-118 must include information from a check of state 
292.29 	licensing agency records.
292.30 	(b) The commissioner shall provide the court with licensing agency data for licenses 
292.31 	directly related to the responsibilities of a guardian or conservator if the guardian or 
292.32 	conservator has a current or prior affiliation with the:
293.1 	(1) Lawyers Responsibility Board;
293.2 	(2) State Board of Accountancy;
293.3 	(3) Board of Social Work;
293.4 	(4) Board of Psychology;
293.5 	(5) Board of Nursing;
293.6 	(6) Board of Medical Practice;
293.7 	(7) Department of Education;
293.8 	(8) Department of Commerce;
293.9 	(9) Board of Chiropractic Examiners;
293.10 	(10) Board of Dentistry;
293.11 	(11) Board of Marriage and Family Therapy;
293.12 	(12) Department of Human Services;
293.13 	(13) Peace Officer Standards and Training (POST) Board; and
293.14 	(14) Professional Educator Licensing and Standards Board.
293.15 	(c) The commissioner shall provide to the court the electronically available data 
293.16 	maintained in the agency's database, including whether the guardian or conservator is or 
293.17 	has been licensed by the agency and whether a disciplinary action or a sanction against the 
293.18 	individual's license, including a condition, suspension, revocation, or cancellation, is in the 
293.19 	licensing agency's database.
293.20 		Subd. 3.Procedure; maltreatment and state licensing agency data. Requests for 
293.21 	maltreatment and state licensing agency data checks must be submitted by the guardian or 
293.22 	conservator to the commissioner on the form or in the manner prescribed by the 
293.23 	commissioner. Upon receipt of a signed informed consent and payment under section 
293.24 	245C.10, the commissioner shall complete the maltreatment and state licensing agency 
293.25 	checks. Upon completion of the checks, the commissioner shall provide the requested 
293.26 	information to the courts on the form or in the manner prescribed by the commissioner.
293.27 		Subd. 4.Classification of maltreatment and state licensing agency data; access to 
293.28 	information. All data obtained by the commissioner for maltreatment and state licensing 
293.29 	agency checks completed under this section is classified as private data on individuals, as 
293.30 	defined in section 13.02, subdivision 9.

294.1 	Sec. 9. Minnesota Statutes 2022, section 245C.04, subdivision 1, is amended to read:
294.2 		Subdivision 1.Licensed programs; other child care programs. (a) The commissioner 
294.3 	shall conduct a background study of an individual required to be studied under section 
294.4 	245C.03, subdivision 1, at least upon application for initial license for all license types.
294.5 	(b) The commissioner shall conduct a background study of an individual required to be 
294.6 	studied under section 245C.03, subdivision 1, including a child care background study 
294.7 	subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed 
294.8 	child care center, certified license-exempt child care center, or legal nonlicensed child care 
294.9 	provider, on a schedule determined by the commissioner. Except as provided in section 
294.10 	245C.05, subdivision 5a, a child care background study must include submission of 
294.11 	fingerprints for a national criminal history record check and a review of the information 
294.12 	under section 245C.08. A background study for a child care program must be repeated 
294.13 	within five years from the most recent study conducted under this paragraph.
294.14 	(c) At reauthorization or when a new background study is needed under section 119B.125, 
294.15 	subdivision 1a, for a legal nonlicensed child care provider authorized under chapter 119B, 
294.16 	the individual shall provide information required under section 245C.05, subdivision 1, 
294.17 	paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed 
294.18 	under section 245C.05, subdivision 5. The commissioner shall verify the information received 
294.19 	under this paragraph and submit the request in NETStudy 2.0 to complete the background 
294.20 	study.
294.21 	(c) (d) At reapplication for a family child care license:
294.22 	(1) for a background study affiliated with a licensed family child care center or legal 
294.23 	nonlicensed child care provider, the individual shall provide information required under 
294.24 	section 245C.05, subdivision 1, paragraphs (a), (b), and (d), to the county agency, and be 
294.25 	fingerprinted and photographed under section 245C.05, subdivision 5;
294.26 	(2) the county agency shall verify the information received under clause (1) and forward 
294.27 	the information to the commissioner and submit the request in NETStudy 2.0 to complete 
294.28 	the background study; and
294.29 	(3) the background study conducted by the commissioner under this paragraph must 
294.30 	include a review of the information required under section 245C.08.
294.31 	(d) (e) The commissioner is not required to conduct a study of an individual at the time 
294.32 	of reapplication for a license if the individual's background study was completed by the 
294.33 	commissioner of human services and the following conditions are met:
295.1 	(1) a study of the individual was conducted either at the time of initial licensure or when 
295.2 	the individual became affiliated with the license holder;
295.3 	(2) the individual has been continuously affiliated with the license holder since the last 
295.4 	study was conducted; and
295.5 	(3) the last study of the individual was conducted on or after October 1, 1995.
295.6 	(e) (f) The commissioner of human services shall conduct a background study of an 
295.7 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
295.8 	who is newly affiliated with a child foster family setting license holder:
295.9 	(1) the county or private agency shall collect and forward to the commissioner the 
295.10 	information required under section 245C.05, subdivisions 1 and 5, when the child foster 
295.11 	family setting applicant or license holder resides in the home where child foster care services 
295.12 	are provided; and
295.13 	(2) the background study conducted by the commissioner of human services under this 
295.14 	paragraph must include a review of the information required under section 245C.08, 
295.15 	subdivisions 1, 3, and 4.
295.16 	(f) (g) The commissioner shall conduct a background study of an individual specified 
295.17 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated 
295.18 	with an adult foster care or family adult day services and with a family child care license 
295.19 	holder or a legal nonlicensed child care provider authorized under chapter 119B and:
295.20 	(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and 
295.21 	forward to the commissioner the information required under section 245C.05, subdivision 
295.22 	1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted 
295.23 	by the commissioner for all family adult day services, for adult foster care when the adult 
295.24 	foster care license holder resides in the adult foster care residence, and for family child care 
295.25 	and legal nonlicensed child care authorized under chapter 119B;
295.26 	(2) the license holder shall collect and forward to the commissioner the information 
295.27 	required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs 
295.28 	(a) and (b), for background studies conducted by the commissioner for adult foster care 
295.29 	when the license holder does not reside in the adult foster care residence; and
295.30 	(3) the background study conducted by the commissioner under this paragraph must 
295.31 	include a review of the information required under section 245C.08, subdivision 1, paragraph 
295.32 	(a), and subdivisions 3 and 4.
296.1 	(g) (h) Applicants for licensure, license holders, and other entities as provided in this 
296.2 	chapter must submit completed background study requests to the commissioner using the 
296.3 	electronic system known as NETStudy before individuals specified in section 245C.03, 
296.4 	subdivision 1, begin positions allowing direct contact in any licensed program.
296.5 	(h) (i) For an individual who is not on the entity's active roster, the entity must initiate 
296.6 	a new background study through NETStudy when:
296.7 	(1) an individual returns to a position requiring a background study following an absence 
296.8 	of 120 or more consecutive days; or
296.9 	(2) a program that discontinued providing licensed direct contact services for 120 or 
296.10 	more consecutive days begins to provide direct contact licensed services again.
296.11 	The license holder shall maintain a copy of the notification provided to the commissioner 
296.12 	under this paragraph in the program's files. If the individual's disqualification was previously 
296.13 	set aside for the license holder's program and the new background study results in no new 
296.14 	information that indicates the individual may pose a risk of harm to persons receiving 
296.15 	services from the license holder, the previous set-aside shall remain in effect.
296.16 	(i) (j) For purposes of this section, a physician licensed under chapter 147, advanced 
296.17 	practice registered nurse licensed under chapter 148, or physician assistant licensed under 
296.18 	chapter 147A is considered to be continuously affiliated upon the license holder's receipt 
296.19 	from the commissioner of health or human services of the physician's, advanced practice 
296.20 	registered nurse's, or physician assistant's background study results.
296.21 	(j) (k) For purposes of family child care, a substitute caregiver must receive repeat 
296.22 	background studies at the time of each license renewal.
296.23 	(k) (l) A repeat background study at the time of license renewal is not required if the 
296.24 	family child care substitute caregiver's background study was completed by the commissioner 
296.25 	on or after October 1, 2017, and the substitute caregiver is on the license holder's active 
296.26 	roster in NETStudy 2.0.
296.27 	(l) (m) Before and after school programs authorized under chapter 119B, are exempt 
296.28 	from the background study requirements under section 123B.03, for an employee for whom 
296.29 	a background study under this chapter has been completed.

296.30 	EFFECTIVE DATE. This section is effective April 28, 2025.

297.1 	Sec. 10. Minnesota Statutes 2022, section 245C.05, subdivision 1, is amended to read:
297.2 		Subdivision 1.Individual studied. (a) The individual who is the subject of the 
297.3 	background study must provide the applicant, license holder, or other entity under section 
297.4 	245C.04 with sufficient information to ensure an accurate study, including:
297.5 	(1) the individual's first, middle, and last name and all other names by which the 
297.6 	individual has been known;
297.7 	(2) current home address, city, and state of residence;
297.8 	(3) current zip code;
297.9 	(4) sex;
297.10 	(5) date of birth;
297.11 	(6) driver's license number or state identification number; and
297.12 	(7) upon implementation of NETStudy 2.0, the home address, city, county, and state of 
297.13 	residence for the past five years.
297.14 	(b) Every subject of a background study conducted or initiated by counties or private 
297.15 	agencies under this chapter must also provide the home address, city, county, and state of 
297.16 	residence for the past five years.
297.17 	(c) Every subject of a background study related to private agency adoptions or related 
297.18 	to child foster care licensed through a private agency, who is 18 years of age or older, shall 
297.19 	also provide the commissioner a signed consent for the release of any information received 
297.20 	from national crime information databases to the private agency that initiated the background 
297.21 	study.
297.22 	(d) The subject of a background study shall provide fingerprints and a photograph as 
297.23 	required in subdivision 5.
297.24 	(e) The subject of a background study shall submit a completed criminal and maltreatment 
297.25 	history records check consent form and criminal history disclosure form for applicable 
297.26 	national and state level record checks.
297.27 	(f) A background study subject who has access to the NETStudy 2.0 applicant portal 
297.28 	must provide updated contact information to the commissioner via NETStudy 2.0 any time 
297.29 	the subject's personal information changes for as long as they remain affiliated on any roster.
298.1 	(g) An entity must update contact information in NETStudy 2.0 for a background study 
298.2 	subject on the entity's roster any time the entity receives new contact information from the 
298.3 	study subject.

298.4 	Sec. 11. Minnesota Statutes 2022, section 245C.05, subdivision 2c, is amended to read:
298.5 		Subd. 2c.Privacy notice to background study subject. (a) Prior to initiating each 
298.6 	background study, the entity initiating the study must provide the commissioner's privacy 
298.7 	notice to the background study subject required under section 13.04, subdivision 2. The 
298.8 	notice must be available through the commissioner's electronic NETStudy and NETStudy 
298.9 	2.0 systems and shall include the information in paragraphs (b) and (c).
298.10 	(b) The background study subject shall be informed that any previous background studies 
298.11 	that received a set-aside will be reviewed, and without further contact with the background 
298.12 	study subject, the commissioner may notify the agency that initiated the subsequent 
298.13 	background study:
298.14 	(1) that the individual has a disqualification that has been set aside for the program or 
298.15 	agency that initiated the study;.
298.16 	(2) the reason for the disqualification; and
298.17 	(3) that information about the decision to set aside the disqualification will be available 
298.18 	to the license holder upon request without the consent of the background study subject.
298.19 	(c) The background study subject must also be informed that:
298.20 	(1) the subject's fingerprints collected for purposes of completing the background study 
298.21 	under this chapter must not be retained by the Department of Public Safety, Bureau of 
298.22 	Criminal Apprehension, or by the commissioner. The Federal Bureau of Investigation will 
298.23 	not retain background study subjects' fingerprints;
298.24 	(2) effective upon implementation of NETStudy 2.0, the subject's photographic image 
298.25 	will be retained by the commissioner, and if the subject has provided the subject's Social 
298.26 	Security number for purposes of the background study, the photographic image will be 
298.27 	available to prospective employers and agencies initiating background studies under this 
298.28 	chapter to verify the identity of the subject of the background study;
298.29 	(3) the authorized fingerprint collection vendor or vendors shall, for purposes of verifying 
298.30 	the identity of the background study subject, be able to view the identifying information 
298.31 	entered into NETStudy 2.0 by the entity that initiated the background study, but shall not 
298.32 	retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The 
299.1 	authorized fingerprint collection vendor or vendors shall retain no more than the subject's 
299.2 	name and the date and time the subject's fingerprints were recorded and sent, only as 
299.3 	necessary for auditing and billing activities;
299.4 	(4) the commissioner shall provide the subject notice, as required in section 245C.17, 
299.5 	subdivision 1, paragraph (a), when an entity initiates a background study on the individual;
299.6 	(5) the subject may request in writing a report listing the entities that initiated a 
299.7 	background study on the individual as provided in section 245C.17, subdivision 1, paragraph 
299.8 	(b);
299.9 	(6) the subject may request in writing that information used to complete the individual's 
299.10 	background study in NETStudy 2.0 be destroyed if the requirements of section 245C.051, 
299.11 	paragraph (a), are met; and
299.12 	(7) notwithstanding clause (6), the commissioner shall destroy:
299.13 	(i) the subject's photograph after a period of two years when the requirements of section 
299.14 	245C.051, paragraph (c), are met; and
299.15 	(ii) any data collected on a subject under this chapter after a period of two years following 
299.16 	the individual's death as provided in section 245C.051, paragraph (d).

299.17 	Sec. 12. Minnesota Statutes 2022, section 245C.05, subdivision 4, is amended to read:
299.18 		Subd. 4.Electronic transmission. (a) For background studies conducted by the 
299.19 	Department of Human Services, the commissioner shall implement a secure system for the 
299.20 	electronic transmission of:
299.21 	(1) background study information to the commissioner;
299.22 	(2) background study results to the license holder;
299.23 	(3) background study information obtained under this section and section 245C.08 to 
299.24 	counties and private agencies for background studies conducted by the commissioner for 
299.25 	child foster care, including a summary of nondisqualifying results, except as prohibited by 
299.26 	law; and
299.27 	(4) background study results to county agencies for background studies conducted by 
299.28 	the commissioner for adult foster care and family adult day services and, upon 
299.29 	implementation of NETStudy 2.0, family child care and legal nonlicensed child care 
299.30 	authorized under chapter 119B.
300.1 	(b) Unless the commissioner has granted a hardship variance under paragraph (c), a 
300.2 	license holder or an applicant must use the electronic transmission system known as 
300.3 	NETStudy or NETStudy 2.0 to submit all requests for background studies to the 
300.4 	commissioner as required by this chapter.
300.5 	(c) A license holder or applicant whose program is located in an area in which high-speed 
300.6 	Internet is inaccessible may request the commissioner to grant a variance to the electronic 
300.7 	transmission requirement.
300.8 	(d) Section 245C.08, subdivision 3, paragraph (c), applies to results transmitted under 
300.9 	this subdivision.
300.10 	(e) The background study subject shall access background study-related documents 
300.11 	electronically in the applicant portal. A background study subject may request for the 
300.12 	commissioner to grant a variance to the requirement to access documents electronically in 
300.13 	the NETStudy 2.0 applicant portal and may also request paper documentation of their 
300.14 	background studies.

300.15 	EFFECTIVE DATE. The amendments to paragraph (a), clause (4), are effective April 
300.16 	28, 2025.

300.17 	Sec. 13. Minnesota Statutes 2022, section 245C.08, subdivision 1, is amended to read:
300.18 		Subdivision 1.Background studies conducted by Department of Human Services. (a) 
300.19 	For a background study conducted by the Department of Human Services, the commissioner 
300.20 	shall review:
300.21 	(1) information related to names of substantiated perpetrators of maltreatment of 
300.22 	vulnerable adults that has been received by the commissioner as required under section 
300.23 	626.557, subdivision 9c, paragraph (j);
300.24 	(2) the commissioner's records relating to the maltreatment of minors in licensed 
300.25 	programs, and from findings of maltreatment of minors as indicated through the social 
300.26 	service information system;
300.27 	(3) information from juvenile courts as required in subdivision 4 for individuals listed 
300.28 	in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
300.29 	(4) information from the Bureau of Criminal Apprehension, including information 
300.30 	regarding a background study subject's registration in Minnesota as a predatory offender 
300.31 	under section 243.166;
301.1 	(5) except as provided in clause (6), information received as a result of submission of 
301.2 	fingerprints for a national criminal history record check, as defined in section 245C.02, 
301.3 	subdivision 13c, when the commissioner has reasonable cause for a national criminal history 
301.4 	record check as defined under section 245C.02, subdivision 15a, or as required under section 
301.5 	144.057, subdivision 1, clause (2);
301.6 	(6) for a background study related to a child foster family setting application for licensure, 
301.7 	foster residence settings, children's residential facilities, a transfer of permanent legal and 
301.8 	physical custody of a child under sections 260C.503 to 260C.515, or adoptions, and for a 
301.9 	background study required for family child care, certified license-exempt child care, child 
301.10 	care centers, and legal nonlicensed child care authorized under chapter 119B, the 
301.11 	commissioner shall also review:
301.12 	(i) information from the child abuse and neglect registry for any state in which the 
301.13 	background study subject has resided for the past five years;
301.14 	(ii) when the background study subject is 18 years of age or older, or a minor under 
301.15 	section 245C.05, subdivision 5a, paragraph (c), information received following submission 
301.16 	of fingerprints for a national criminal history record check; and
301.17 	(iii) when the background study subject is 18 years of age or older or a minor under 
301.18 	section 245C.05, subdivision 5a, paragraph (d), for licensed family child care, certified 
301.19 	license-exempt child care, licensed child care centers, and legal nonlicensed child care 
301.20 	authorized under chapter 119B, information obtained using non-fingerprint-based data 
301.21 	including information from the criminal and sex offender registries for any state in which 
301.22 	the background study subject resided for the past five years and information from the national 
301.23 	crime information database and the national sex offender registry; and
301.24 	(7) for a background study required for family child care, certified license-exempt child 
301.25 	care centers, licensed child care centers, and legal nonlicensed child care authorized under 
301.26 	chapter 119B, the background study shall also include, to the extent practicable, a name 
301.27 	and date-of-birth search of the National Sex Offender Public website; and
301.28 	(8) for a background study required for treatment programs for sexual psychopathic 
301.29 	personalities or sexually dangerous persons, the background study shall only include a 
301.30 	review of the information required under paragraph (a), clauses (1) to (4).
301.31 	(b) Notwithstanding expungement by a court, the commissioner may consider information 
301.32 	obtained under paragraph (a), clauses (3) and (4), unless the commissioner received notice 
301.33 	of the petition for expungement and the court order for expungement is directed specifically 
301.34 	to the commissioner.
302.1 	(c) The commissioner shall also review criminal case information received according 
302.2 	to section 245C.04, subdivision 4a, from the Minnesota court information system that relates 
302.3 	to individuals who have already been studied under this chapter and who remain affiliated 
302.4 	with the agency that initiated the background study.
302.5 	(d) When the commissioner has reasonable cause to believe that the identity of a 
302.6 	background study subject is uncertain, the commissioner may require the subject to provide 
302.7 	a set of classifiable fingerprints for purposes of completing a fingerprint-based record check 
302.8 	with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph 
302.9 	shall not be saved by the commissioner after they have been used to verify the identity of 
302.10 	the background study subject against the particular criminal record in question.
302.11 	(e) The commissioner may inform the entity that initiated a background study under 
302.12 	NETStudy 2.0 of the status of processing of the subject's fingerprints.

302.13 	Sec. 14. Minnesota Statutes 2022, section 245C.10, subdivision 2, is amended to read:
302.14 		Subd. 2.Supplemental nursing services agencies. The commissioner shall recover the 
302.15 	cost of the background studies initiated by supplemental nursing services agencies registered 
302.16 	under section 144A.71, subdivision 1, through a fee of no more than $42 $44 per study 
302.17 	charged to the agency. The fees collected under this subdivision are appropriated to the 
302.18 	commissioner for the purpose of conducting background studies.

302.19 	Sec. 15. Minnesota Statutes 2022, section 245C.10, subdivision 2a, is amended to read:
302.20 		Subd. 2a.Occupations regulated by commissioner of health. The commissioner shall 
302.21 	set fees to recover the cost of combined background studies and criminal background checks 
302.22 	initiated by applicants, licensees, and certified practitioners regulated under sections 148.511 
302.23 	to 148.5198 and chapter 153A through a fee of no more than $44 per study charged to the 
302.24 	entity. The fees collected under this subdivision shall be deposited in the special revenue 
302.25 	fund and are appropriated to the commissioner for the purpose of conducting background 
302.26 	studies and criminal background checks.

302.27 	Sec. 16. Minnesota Statutes 2022, section 245C.10, subdivision 3, is amended to read:
302.28 		Subd. 3.Personal care provider organizations. The commissioner shall recover the 
302.29 	cost of background studies initiated by a personal care provider organization under sections 
302.30 	256B.0651 to 256B.0654 and 256B.0659 through a fee of no more than $42 $44 per study 
302.31 	charged to the organization responsible for submitting the background study form. The fees 
303.1 	collected under this subdivision are appropriated to the commissioner for the purpose of 
303.2 	conducting background studies.

303.3 	Sec. 17. Minnesota Statutes 2022, section 245C.10, subdivision 4, is amended to read:
303.4 		Subd. 4.Temporary personnel agencies, personnel pool agencies, educational 
303.5 	programs, and professional services agencies. The commissioner shall recover the cost 
303.6 	of the background studies initiated by temporary personnel agencies, personnel pool agencies,
303.7 	educational programs, and professional services agencies that initiate background studies 
303.8 	under section 245C.03, subdivision 4, through a fee of no more than $42 $44 per study 
303.9 	charged to the agency. The fees collected under this subdivision are appropriated to the 
303.10 	commissioner for the purpose of conducting background studies.

303.11 	Sec. 18. Minnesota Statutes 2022, section 245C.10, subdivision 5, is amended to read:
303.12 		Subd. 5.Adult foster care and family adult day services. The commissioner shall 
303.13 	recover the cost of background studies required under section 245C.03, subdivision 1, for 
303.14 	the purposes of adult foster care and family adult day services licensing, through a fee of 
303.15 	no more than $42 $44 per study charged to the license holder. The fees collected under this 
303.16 	subdivision are appropriated to the commissioner for the purpose of conducting background 
303.17 	studies.

303.18 	Sec. 19. Minnesota Statutes 2022, section 245C.10, subdivision 6, is amended to read:
303.19 		Subd. 6.Unlicensed home and community-based waiver providers of service to 
303.20 	seniors and individuals with disabilities. The commissioner shall recover the cost of 
303.21 	background studies initiated by unlicensed home and community-based waiver providers 
303.22 	of service to seniors and individuals with disabilities under section 256B.4912 through a 
303.23 	fee of no more than $42 $44 per study.

303.24 	Sec. 20. Minnesota Statutes 2022, section 245C.10, subdivision 8, is amended to read:
303.25 		Subd. 8.Children's therapeutic services and supports providers. The commissioner 
303.26 	shall recover the cost of background studies required under section 245C.03, subdivision 
303.27 	7, for the purposes of children's therapeutic services and supports under section 256B.0943, 
303.28 	through a fee of no more than $42 $44 per study charged to the license holder. The fees 
303.29 	collected under this subdivision are appropriated to the commissioner for the purpose of 
303.30 	conducting background studies.

304.1 	Sec. 21. Minnesota Statutes 2022, section 245C.10, subdivision 9, is amended to read:
304.2 		Subd. 9.Human services licensed programs. The commissioner shall recover the cost 
304.3 	of background studies required under section 245C.03, subdivision 1, for all programs that 
304.4 	are licensed by the commissioner, except child foster care when the applicant or license 
304.5 	holder resides in the home where child foster care services are provided, family child care, 
304.6 	child care centers, certified license-exempt child care centers, and legal nonlicensed child 
304.7 	care authorized under chapter 119B, through a fee of no more than $42 $44 per study charged 
304.8 	to the license holder. The fees collected under this subdivision are appropriated to the 
304.9 	commissioner for the purpose of conducting background studies.

304.10 	Sec. 22. Minnesota Statutes 2022, section 245C.10, subdivision 9a, is amended to read:
304.11 		Subd. 9a.Child care programs. The commissioner shall recover the cost of a background 
304.12 	study required for family child care, certified license-exempt child care centers, licensed 
304.13 	child care centers, and legal nonlicensed child care providers authorized under chapter 119B 
304.14 	through a fee of no more than $40 $44 per study charged to the license holder. A fee of no 
304.15 	more than $42 $44 per study shall be charged for studies conducted under section 245C.05, 
304.16 	subdivision 5a, paragraph (a). The fees collected under this subdivision are appropriated to 
304.17 	the commissioner to conduct background studies.

304.18 	Sec. 23. Minnesota Statutes 2022, section 245C.10, subdivision 10, is amended to read:
304.19 		Subd. 10.Community first services and supports organizations. The commissioner 
304.20 	shall recover the cost of background studies initiated by an agency-provider delivering 
304.21 	services under section 256B.85, subdivision 11, or a financial management services provider 
304.22 	providing service functions under section 256B.85, subdivision 13, through a fee of no more 
304.23 	than $42 $44 per study, charged to the organization responsible for submitting the background 
304.24 	study form. The fees collected under this subdivision are appropriated to the commissioner 
304.25 	for the purpose of conducting background studies.

304.26 	Sec. 24. Minnesota Statutes 2022, section 245C.10, subdivision 11, is amended to read:
304.27 		Subd. 11.Providers of housing support. The commissioner shall recover the cost of 
304.28 	background studies initiated by providers of housing support under section 256I.04 through 
304.29 	a fee of no more than $42 $44 per study. The fees collected under this subdivision are 
304.30 	appropriated to the commissioner for the purpose of conducting background studies.

305.1 	Sec. 25. Minnesota Statutes 2022, section 245C.10, subdivision 12, is amended to read:
305.2 		Subd. 12.Child protection workers or social services staff having responsibility for 
305.3 	child protective duties. The commissioner shall recover the cost of background studies 
305.4 	initiated by county social services agencies and local welfare agencies for individuals who 
305.5 	are required to have a background study under section 260E.36, subdivision 3, through a 
305.6 	fee of no more than $42 $44 per study. The fees collected under this subdivision are 
305.7 	appropriated to the commissioner for the purpose of conducting background studies.

305.8 	Sec. 26. Minnesota Statutes 2022, section 245C.10, subdivision 13, is amended to read:
305.9 		Subd. 13.Providers of special transportation service. The commissioner shall recover 
305.10 	the cost of background studies initiated by providers of special transportation service under 
305.11 	section 174.30 through a fee of no more than $42 $44 per study. The fees collected under 
305.12 	this subdivision are appropriated to the commissioner for the purpose of conducting 
305.13 	background studies.

305.14 	Sec. 27. Minnesota Statutes 2022, section 245C.10, subdivision 14, is amended to read:
305.15 		Subd. 14.Children's residential facilities. The commissioner shall recover the cost of 
305.16 	background studies initiated by a licensed children's residential facility through a fee of no 
305.17 	more than $51 $53 per study. Fees collected under this subdivision are appropriated to the 
305.18 	commissioner for purposes of conducting background studies.

305.19 	Sec. 28. Minnesota Statutes 2022, section 245C.10, subdivision 15, is amended to read:
305.20 		Subd. 15.Guardians and conservators. The commissioner shall recover the cost of 
305.21 	conducting background studies maltreatment and state licensing agency checks for guardians 
305.22 	and conservators under section 524.5-118 245C.033through a fee of no more than $110 
305.23 	per study $50. The fees collected under this subdivision are appropriated to the commissioner 
305.24 	for the purpose of conducting background studies maltreatment and state licensing agency 
305.25 	checks. The fee for conducting an alternative background study for appointment of a 
305.26 	professional guardian or conservator must be paid by the guardian or conservator. In other 
305.27 	cases, the fee must be paid as follows:
305.28 	(1) if the matter is proceeding in forma pauperis, the fee must be paid as an expense for 
305.29 	purposes of section 524.5-502, paragraph (a);
305.30 	(2) if there is an estate of the ward or protected person, the fee must be paid from the 
305.31 	estate; or
306.1 	(3) in the case of a guardianship or conservatorship of a person that is not proceeding 
306.2 	in forma pauperis, the fee must be paid by the guardian, conservator, or the court must be 
306.3 	paid directly to the commissioner and in the manner prescribed by the commissioner before 
306.4 	any maltreatment and state licensing agency checks under section 245C.033 may be 
306.5 	conducted.

306.6 	Sec. 29. Minnesota Statutes 2022, section 245C.10, subdivision 16, is amended to read:
306.7 		Subd. 16.Providers of housing support services. The commissioner shall recover the 
306.8 	cost of background studies initiated by providers of housing support services under section 
306.9 	256B.051 through a fee of no more than $42 $44 per study. The fees collected under this 
306.10 	subdivision are appropriated to the commissioner for the purpose of conducting background 
306.11 	studies.

306.12 	Sec. 30. Minnesota Statutes 2022, section 245C.10, subdivision 17, is amended to read:
306.13 		Subd. 17.Early intensive developmental and behavioral intervention providers. The 
306.14 	commissioner shall recover the cost of background studies required under section 245C.03, 
306.15 	subdivision 15, for the purposes of early intensive developmental and behavioral intervention 
306.16 	under section 256B.0949, through a fee of no more than $42 $44 per study charged to the 
306.17 	enrolled agency. The fees collected under this subdivision are appropriated to the 
306.18 	commissioner for the purpose of conducting background studies.

306.19 	Sec. 31. Minnesota Statutes 2022, section 245C.10, subdivision 20, is amended to read:
306.20 		Subd. 20.Professional Educators Licensing Standards Board. The commissioner 
306.21 	shall recover the cost of background studies initiated by the Professional Educators Licensing 
306.22 	Standards Board through a fee of no more than $51 $53 per study. Fees collected under this 
306.23 	subdivision are appropriated to the commissioner for purposes of conducting background 
306.24 	studies.

306.25 	Sec. 32. Minnesota Statutes 2022, section 245C.10, subdivision 21, is amended to read:
306.26 		Subd. 21.Board of School Administrators. The commissioner shall recover the cost 
306.27 	of background studies initiated by the Board of School Administrators through a fee of no 
306.28 	more than $51 $53 per study. Fees collected under this subdivision are appropriated to the 
306.29 	commissioner for purposes of conducting background studies.

307.1 	Sec. 33. Minnesota Statutes 2022, section 245C.15, subdivision 2, is amended to read:
307.2 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 245C.14
307.3 	if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any, 
307.4 	for the offense; and (2) the individual has committed a felony-level violation of any of the 
307.5 	following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance 
307.6 	crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime 
307.7 	in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in 
307.8 	the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the 
307.9 	fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud); 
307.10 	393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.165 (felon ineligible to 
307.11 	possess firearm); 609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 
307.12 	609.215 (suicide); 609.223 or 609.2231 (assault in the third or fourth degree); repeat offenses 
307.13 	under 609.224 (assault in the fifth degree); 609.229 (crimes committed for benefit of a 
307.14 	gang); 609.2325 (criminal abuse of a vulnerable adult); 609.2335 (financial exploitation of 
307.15 	a vulnerable adult); 609.235 (use of drugs to injure or facilitate crime); 609.24 (simple 
307.16 	robbery); 609.255 (false imprisonment); 609.2664 (manslaughter of an unborn child in the 
307.17 	first degree); 609.2665 (manslaughter of an unborn child in the second degree); 609.267
307.18 	(assault of an unborn child in the first degree); 609.2671 (assault of an unborn child in the 
307.19 	second degree); 609.268 (injury or death of an unborn child in the commission of a crime); 
307.20 	609.27 (coercion); 609.275 (attempt to coerce); 609.466 (medical assistance fraud); 609.495
307.21 	(aiding an offender); 609.498, subdivision 1 or 1b (aggravated first-degree or first-degree 
307.22 	tampering with a witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.525
307.23 	(bringing stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen 
307.24 	property); 609.535 (issuance of dishonored checks); 609.562 (arson in the second degree); 
307.25 	609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession of burglary 
307.26 	tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery); 609.631
307.27 	(check forgery; offering a forged check); 609.635 (obtaining signature by false pretense); 
307.28 	609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns); 609.687
307.29 	(adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.82 (fraud in obtaining credit); 
307.30 	609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving a 
307.31 	minor; repeat offenses under 617.241 (obscene materials and performances; distribution 
307.32 	and exhibition prohibited; penalty); or 624.713 (certain persons not to possess firearms); 
307.33 	chapter 152 (drugs; controlled substance); or Minnesota Statutes 2012, section 609.21; or 
307.34 	a felony-level conviction involving alcohol or drug use.
308.1 	(b) An individual is disqualified under section 245C.14 if less than 15 years has passed 
308.2 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
308.3 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
308.4 	(c) An individual is disqualified under section 245C.14 if less than 15 years has passed 
308.5 	since the termination of the individual's parental rights under section 260C.301, subdivision 
308.6 	1, paragraph (b), or subdivision 3.
308.7 	(d) An individual is disqualified under section 245C.14 if less than 15 years has passed 
308.8 	since the discharge of the sentence imposed for an offense in any other state or country, the 
308.9 	elements of which are substantially similar to the elements of the offenses listed in paragraph 
308.10 	(a).
308.11 	(e) If the individual studied commits one of the offenses listed in paragraph (a), but the 
308.12 	sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is 
308.13 	disqualified but the disqualification look-back period for the offense is the period applicable 
308.14 	to the gross misdemeanor or misdemeanor disposition.
308.15 	(f) When a disqualification is based on a judicial determination other than a conviction, 
308.16 	the disqualification period begins from the date of the court order. When a disqualification 
308.17 	is based on an admission, the disqualification period begins from the date of an admission 
308.18 	in court. When a disqualification is based on an Alford Plea, the disqualification period 
308.19 	begins from the date the Alford Plea is entered in court. When a disqualification is based 
308.20 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
308.21 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
308.22 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

308.23 	EFFECTIVE DATE. This section is effective for background studies requested on or 
308.24 	after August 1, 2024.

308.25 	Sec. 34. Minnesota Statutes 2022, section 245C.15, is amended by adding a subdivision 
308.26 	to read:
308.27 		Subd. 4b.Five-year disqualification. (a) An individual is disqualified under section 
308.28 	245C.14 if: (1) less than five years have passed since the discharge of the sentence imposed, 
308.29 	if any, for the offense; and (2) the individual has committed a felony, gross misdemeanor, 
308.30 	or misdemeanor-level violation of any of the following offenses: section 152.021, subdivision 
308.31 	2 or 2a (controlled substance possession crime in the first degree; methamphetamine 
308.32 	manufacture crime); 152.022, subdivision 2 (controlled substance possession crime in the 
308.33 	second degree); 152.023, subdivision 2 (controlled substance possession crime in the third 
309.1 	degree); 152.024, subdivision 2 (controlled substance possession crime in the fourth degree); 
309.2 	152.025 (controlled substance crime in the fifth degree); 152.0261 (importing controlled 
309.3 	substances across state borders); 152.0262 (possession of substances with intent to 
309.4 	manufacture methamphetamine); 152.027, subdivision 6, paragraph (c) (sale of synthetic 
309.5 	cannabinoids); 152.096 (conspiracy to commit controlled substance crime); or 152.097 
309.6 	(simulated controlled substances).
309.7 	(b) An individual is disqualified under section 245C.14 if less than five years have passed 
309.8 	since the individual's aiding and abetting, attempt, or conspiracy to commit any of the 
309.9 	offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
309.10 	(c) An individual is disqualified under section 245C.14 if less than five years have passed 
309.11 	since the discharge of the sentence imposed for an offense in any other state or country, the 
309.12 	elements of which are substantially similar to the elements of any of the offenses listed in 
309.13 	paragraph (a).
309.14 	(d) When a disqualification is based on a judicial determination other than a conviction, 
309.15 	the disqualification period begins from the date of the court order. When a disqualification 
309.16 	is based on an admission, the disqualification period begins from the date of an admission 
309.17 	in court. When a disqualification is based on an Alford plea, the disqualification period 
309.18 	begins from the date the Alford plea is entered in court. When a disqualification is based 
309.19 	on a preponderance of evidence of a disqualifying act, the disqualification date begins from 
309.20 	the date of the dismissal, the date of discharge of the sentence imposed for a conviction for 
309.21 	a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.

309.22 	EFFECTIVE DATE. This section is effective for background studies requested on or 
309.23 	after August 1, 2024.

309.24 	Sec. 35. Minnesota Statutes 2022, section 245C.17, subdivision 2, is amended to read:
309.25 		Subd. 2.Disqualification notice sent to subject. (a) If the information in the study 
309.26 	indicates the individual is disqualified from direct contact with, or from access to, persons 
309.27 	served by the program, the commissioner shall disclose to the individual studied:
309.28 	(1) the information causing disqualification;
309.29 	(2) instructions on how to request a reconsideration of the disqualification;
309.30 	(3) an explanation of any restrictions on the commissioner's discretion to set aside the 
309.31 	disqualification under section 245C.24, when applicable to the individual;
310.1 	(4) a statement that, if the individual's disqualification is set aside under section 245C.22, 
310.2 	the applicant, license holder, or other entity that initiated the background study will be 
310.3 	provided with the reason for the individual's disqualification and an explanation that the 
310.4 	factors under section 245C.22, subdivision 4, which were the basis of the decision to set 
310.5 	aside the disqualification shall be made available to the license holder upon request without 
310.6 	the consent of the subject of the background study;
310.7 	(5) a statement indicating that if the individual's disqualification is set aside or the facility 
310.8 	is granted a variance under section 245C.30, the individual's identity and the reason for the 
310.9 	individual's disqualification will become public data under section 245C.22, subdivision 7, 
310.10 	when applicable to the individual;
310.11 	(6) (4) a statement that when a subsequent background study is initiated on the individual 
310.12 	following a set-aside of the individual's disqualification, and the commissioner makes a 
310.13 	determination under section 245C.22, subdivision 5, paragraph (b), that the previous set-aside 
310.14 	applies to the subsequent background study, the applicant, license holder, or other entity 
310.15 	that initiated the background study will be informed in the notice under section 245C.22, 
310.16 	subdivision 5, paragraph (c):
310.17 	(i) of the reason for the individual's disqualification; and
310.18 	(ii) that the individual's disqualification is set aside for that program or agency; and
310.19 	(iii) that information about the factors under section 245C.22, subdivision 4, that were 
310.20 	the basis of the decision to set aside the disqualification are available to the license holder 
310.21 	upon request without the consent of the background study subject; and
310.22 	(7) (5) the commissioner's determination of the individual's immediate risk of harm 
310.23 	under section 245C.16.
310.24 	(b) If the commissioner determines under section 245C.16 that an individual poses an 
310.25 	imminent risk of harm to persons served by the program where the individual will have 
310.26 	direct contact with, or access to, people receiving services, the commissioner's notice must 
310.27 	include an explanation of the basis of this determination.
310.28 	(c) If the commissioner determines under section 245C.16 that an individual studied 
310.29 	does not pose a risk of harm that requires immediate removal, the individual shall be informed 
310.30 	of the conditions under which the agency that initiated the background study may allow the 
310.31 	individual to have direct contact with, or access to, people receiving services, as provided 
310.32 	under subdivision 3.

311.1 	Sec. 36. Minnesota Statutes 2022, section 245C.17, subdivision 3, is amended to read:
311.2 		Subd. 3.Disqualification notification. (a) The commissioner shall notify an applicant, 
311.3 	license holder, or other entity as provided in this chapter who is not the subject of the study:
311.4 	(1) that the commissioner has found information that disqualifies the individual studied 
311.5 	from being in a position allowing direct contact with, or access to, people served by the 
311.6 	program; and
311.7 	(2) the commissioner's determination of the individual's risk of harm under section 
311.8 	245C.16.
311.9 	(b) If the commissioner determines under section 245C.16 that an individual studied 
311.10 	poses an imminent risk of harm to persons served by the program where the individual 
311.11 	studied will have direct contact with, or access to, people served by the program, the 
311.12 	commissioner shall order the license holder to immediately remove the individual studied 
311.13 	from any position allowing direct contact with, or access to, people served by the program.
311.14 	(c) If the commissioner determines under section 245C.16 that an individual studied 
311.15 	poses a risk of harm that requires continuous, direct supervision, the commissioner shall 
311.16 	order the applicant, license holder, or other entities as provided in this chapter to:
311.17 	(1) immediately remove the individual studied from any position allowing direct contact 
311.18 	with, or access to, people receiving services; or
311.19 	(2) before allowing the disqualified individual to be in a position allowing direct contact 
311.20 	with, or access to, people receiving services, the applicant, license holder, or other entity, 
311.21 	as provided in this chapter, must:
311.22 	(i) obtain from the disqualified individual a copy of the individual's notice of 
311.23 	disqualification from the commissioner that explains the reason for disqualification;
311.24 	(ii) (i) ensure that the individual studied is under continuous, direct supervision when 
311.25 	in a position allowing direct contact with, or access to, people receiving services during the 
311.26 	period in which the individual may request a reconsideration of the disqualification under 
311.27 	section 245C.21; and
311.28 	(iii) (ii) ensure that the disqualified individual requests reconsideration within 30 days 
311.29 	of receipt of the notice of disqualification.
311.30 	(d) If the commissioner determines under section 245C.16 that an individual studied 
311.31 	does not pose a risk of harm that requires continuous, direct supervision, the commissioner 
311.32 	shall order the applicant, license holder, or other entities as provided in this chapter to:
312.1 	(1) immediately remove the individual studied from any position allowing direct contact 
312.2 	with, or access to, people receiving services; or
312.3 	(2) before allowing the disqualified individual to be in any position allowing direct 
312.4 	contact with, or access to, people receiving services, the applicant, license holder, or other 
312.5 	entity as provided in this chapter must:
312.6 	(i) obtain from the disqualified individual a copy of the individual's notice of 
312.7 	disqualification from the commissioner that explains the reason for disqualification; and
312.8 	(ii) ensure that the disqualified individual requests reconsideration within 15 days of 
312.9 	receipt of the notice of disqualification.
312.10 	(e) The commissioner shall not notify the applicant, license holder, or other entity as 
312.11 	provided in this chapter of the information contained in the subject's background study 
312.12 	unless:
312.13 	(1) the basis for the disqualification is failure to cooperate with the background study 
312.14 	or substantiated maltreatment under section 626.557 or chapter 260E;
312.15 	(2) the Data Practices Act under chapter 13 provides for release of the information; or
312.16 	(3) the individual studied authorizes the release of the information.

312.17 	Sec. 37. Minnesota Statutes 2022, section 245C.17, subdivision 6, is amended to read:
312.18 		Subd. 6.Notice to county agency. For studies on individuals related to a license to 
312.19 	provide adult foster care when the applicant or license holder resides in the adult foster care 
312.20 	residence and family adult day services and, effective upon implementation of NETStudy 
312.21 	2.0, family child care and legal nonlicensed child care authorized under chapter 119B, the 
312.22 	commissioner shall also provide a notice of the background study results to the county 
312.23 	agency that initiated the background study.

312.24 	EFFECTIVE DATE. This section is effective April 28, 2025.

312.25 	Sec. 38. Minnesota Statutes 2022, section 245C.21, subdivision 1a, is amended to read:
312.26 		Subd. 1a.Submission of reconsideration request. (a) For disqualifications related to 
312.27 	studies conducted by county agencies for family child care, and for disqualifications related 
312.28 	to studies conducted by the commissioner for child foster care, adult foster care, and family 
312.29 	adult day services when the applicant or license holder resides in the home where services 
312.30 	are provided, the individual shall submit the request for reconsideration to the county agency 
312.31 	that initiated the background study.
313.1 	(b) For disqualifications related to studies conducted by the commissioner for child 
313.2 	foster care providers monitored by private licensing agencies under section 245A.16, the 
313.3 	individual shall submit the request for reconsideration to the private agency that initiated 
313.4 	the background study.
313.5 	(c) A reconsideration request shall be submitted within 30 days of the individual's receipt 
313.6 	of the disqualification notice or the time frames specified in subdivision 2, whichever time 
313.7 	frame is shorter.
313.8 	(d) The county or private agency shall forward the individual's request for reconsideration 
313.9 	and provide the commissioner with a recommendation whether to set aside the individual's 
313.10 	disqualification.

313.11 	Sec. 39. Minnesota Statutes 2022, section 245C.21, subdivision 2, is amended to read:
313.12 		Subd. 2.Time frame for requesting reconsideration. (a) When the commissioner 
313.13 	sends an individual a notice of disqualification based on a finding under section 245C.16, 
313.14 	subdivision 2, paragraph (a), clause (1) or (2), the disqualified individual must submit the 
313.15 	request for a reconsideration within 30 calendar days of the individual's receipt of the notice 
313.16 	of disqualification. If mailed, the request for reconsideration must be postmarked and sent 
313.17 	to the commissioner within 30 calendar days of the individual's receipt of the notice of 
313.18 	disqualification. If a request for reconsideration is made by personal service, it must be 
313.19 	received by the commissioner within 30 calendar days after the individual's receipt of the 
313.20 	notice of disqualification. Upon showing that the information under subdivision 3 cannot 
313.21 	be obtained within 30 days, the disqualified individual may request additional time, not to 
313.22 	exceed 30 days, to obtain the information.
313.23 	(b) When the commissioner sends an individual a notice of disqualification based on a 
313.24 	finding under section 245C.16, subdivision 2, paragraph (a), clause (3), the disqualified 
313.25 	individual must submit the request for reconsideration within 15 30 calendar days of the 
313.26 	individual's receipt of the notice of disqualification. If mailed, the request for reconsideration 
313.27 	must be postmarked and sent to the commissioner within 15 30 calendar days of the 
313.28 	individual's receipt of the notice of disqualification. If a request for reconsideration is made 
313.29 	by personal service, it must be received by the commissioner within 15 30 calendar days 
313.30 	after the individual's receipt of the notice of disqualification.
313.31 	(c) An individual who was determined to have maltreated a child under chapter 260E
313.32 	or a vulnerable adult under section 626.557, and who is disqualified on the basis of serious 
313.33 	or recurring maltreatment, may request a reconsideration of both the maltreatment and the 
313.34 	disqualification determinations. The request must be submitted within 30 calendar days of 
314.1 	the individual's receipt of the notice of disqualification. If mailed, the request for 
314.2 	reconsideration must be postmarked and sent to the commissioner within 30 calendar days 
314.3 	of the individual's receipt of the notice of disqualification. If a request for reconsideration 
314.4 	is made by personal service, it must be received by the commissioner within 30 calendar 
314.5 	days after the individual's receipt of the notice of disqualification.
314.6 	(d) Except for family child care and child foster care, reconsideration of a maltreatment 
314.7 	determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of 
314.8 	a disqualification under section 245C.22, shall not be conducted when:
314.9 	(1) a denial of a license under section 245A.05, or a licensing sanction under section 
314.10 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
314.11 	or the disqualification of a license holder based on serious or recurring maltreatment;
314.12 	(2) the denial of a license or licensing sanction is issued at the same time as the 
314.13 	maltreatment determination or disqualification; and
314.14 	(3) the license holder appeals the maltreatment determination, disqualification, and 
314.15 	denial of a license or licensing sanction. In such cases, a fair hearing under section 256.045 
314.16 	must not be conducted under sections 245C.27, 260E.33, and 626.557, subdivision 9d. 
314.17 	Under section 245A.08, subdivision 2a, the scope of the consolidated contested case hearing 
314.18 	must include the maltreatment determination, disqualification, and denial of a license or 
314.19 	licensing sanction.
314.20 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
314.21 	determination or disqualification, but does not appeal the denial of a license or a licensing 
314.22 	sanction, reconsideration of the maltreatment determination shall be conducted under sections 
314.23 	260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be 
314.24 	conducted under section 245C.22. In such cases, a fair hearing shall also be conducted as 
314.25 	provided under sections 245C.27, 260E.33, and 626.557, subdivision 9d.

314.26 	Sec. 40. Minnesota Statutes 2022, section 245C.22, subdivision 7, is amended to read:
314.27 		Subd. 7.Classification of certain data. (a) Notwithstanding section 13.46, except as 
314.28 	provided in paragraph (f) (e), upon setting aside a disqualification under this section, the 
314.29 	identity of the disqualified individual who received the set-aside and the individual's 
314.30 	disqualifying characteristics are public private data if the set-aside was: on individuals, as 
314.31 	defined in section 13.02, subdivision 12.
314.32 	(1) for any disqualifying characteristic under section 245C.15, except a felony-level 
314.33 	conviction for a drug-related offense within the past five years, when the set-aside relates 
315.1 	to a child care center or a family child care provider licensed under chapter 245A, certified 
315.2 	license-exempt child care center, or legal nonlicensed family child care; or
315.3 	(2) for a disqualifying characteristic under section 245C.15, subdivision 2.
315.4 	(b) Notwithstanding section 13.46, upon granting a variance to a license holder under 
315.5 	section 245C.30, the identity of the disqualified individual who is the subject of the variance, 
315.6 	the individual's disqualifying characteristics under section 245C.15, and the terms of the 
315.7 	variance are public data, except as provided in paragraph (c), clause (6), when the variance:
315.8 	private data on individuals, as defined in section 13.02, subdivision 12.
315.9 	(1) is issued to a child care center or a family child care provider licensed under chapter 
315.10 	245A; or
315.11 	(2) relates to an individual with a disqualifying characteristic under section 245C.15, 
315.12 	subdivision 2.
315.13 	(c) The identity of a disqualified individual and the reason for disqualification remain 
315.14 	private data when:
315.15 	(1) a disqualification is not set aside and no variance is granted, except as provided under 
315.16 	section 13.46, subdivision 4;
315.17 	(2) the data are not public under paragraph (a) or (b);
315.18 	(3) the disqualification is rescinded because the information relied upon to disqualify 
315.19 	the individual is incorrect;
315.20 	(4) the disqualification relates to a license to provide relative child foster care. As used 
315.21 	in this clause, "relative" has the meaning given it under section 260C.007, subdivision 26b 
315.22 	or 27;
315.23 	(5) the disqualified individual is a household member of a licensed foster care provider 
315.24 	and:
315.25 	(i) the disqualified individual previously received foster care services from this licensed 
315.26 	foster care provider;
315.27 	(ii) the disqualified individual was subsequently adopted by this licensed foster care 
315.28 	provider; and
315.29 	(iii) the disqualifying act occurred before the adoption; or
316.1 	(6) a variance is granted to a child care center or family child care license holder for an 
316.2 	individual's disqualification that is based on a felony-level conviction for a drug-related 
316.3 	offense that occurred within the past five years.
316.4 	(d) Licensed family child care providers and child care centers must provide notices as 
316.5 	required under section 245C.301.
316.6 	(e) (d) Notwithstanding paragraphs (a) and (b), the identity of household members who 
316.7 	are the subject of a disqualification related set-aside or variance is not public data if:
316.8 	(1) the household member resides in the residence where the family child care is provided;
316.9 	(2) the subject of the set-aside or variance is under the age of 18 years; and
316.10 	(3) the set-aside or variance only relates to a disqualification under section 245C.15, 
316.11 	subdivision 4, for a misdemeanor-level theft crime as defined in section 609.52.
316.12 	(f) (e) When the commissioner has reason to know that a disqualified individual has 
316.13 	received an order for expungement for the disqualifying record that does not limit the 
316.14 	commissioner's access to the record, and the record was opened or exchanged with the 
316.15 	commissioner for purposes of a background study under this chapter, the data that would 
316.16 	otherwise become public under paragraph (a) or (b) remain private data.

316.17 	Sec. 41. Minnesota Statutes 2022, section 245C.23, subdivision 1, is amended to read:
316.18 		Subdivision 1.Disqualification that is rescinded or set aside. (a) If the commissioner 
316.19 	rescinds or sets aside a disqualification, the commissioner shall notify the applicant, license 
316.20 	holder, or other entity in writing or by electronic transmission of the decision.
316.21 	(b) In the notice from the commissioner that a disqualification has been rescinded, the 
316.22 	commissioner must inform the applicant, license holder, or other entity that the information 
316.23 	relied upon to disqualify the individual was incorrect.
316.24 	(c) Except as provided in paragraphs (d) and (e), in the notice from the commissioner 
316.25 	that a disqualification has been set aside, the commissioner must inform the applicant, 
316.26 	license holder, or other entity of the reason for the individual's disqualification and that 
316.27 	information about which factors under section 245C.22, subdivision 4, were the basis of 
316.28 	the decision to set aside the disqualification are available to the license holder upon request 
316.29 	without the consent of the background study subject.
316.30 	(d) When the commissioner has reason to know that a disqualified individual has received 
316.31 	an order for expungement for the disqualifying record that does not limit the commissioner's 
316.32 	access to the record, and the record was opened or exchanged with the commissioner for 
317.1 	purposes of a background study under this chapter, the information provided under paragraph 
317.2 	(c) must only inform the applicant, license holder, or other entity that the disqualifying 
317.3 	criminal record is sealed under a court order.
317.4 	(e) The notification requirements in paragraph (c) do not apply when the set aside is 
317.5 	granted to an individual related to a background study for a licensed child care center, 
317.6 	certified license-exempt child care center, or family child care license holder, or for a legal 
317.7 	nonlicensed child care provider authorized under chapter 119B, and the individual is 
317.8 	disqualified for a felony-level conviction for a drug-related offense that occurred within the 
317.9 	past five years. The notice that the individual's disqualification is set aside must inform the 
317.10 	applicant, license holder, or legal nonlicensed child care provider that the disqualifying 
317.11 	criminal record is not public.

317.12 	Sec. 42. Minnesota Statutes 2022, section 245C.23, subdivision 2, is amended to read:
317.13 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
317.14 	commissioner shall notify the license holder of the disqualification and order the license 
317.15 	holder to immediately remove the individual from any position allowing direct contact with 
317.16 	persons receiving services from the license holder if:
317.17 	(1) the individual studied does not submit a timely request for reconsideration under 
317.18 	section 245C.21;
317.19 	(2) the individual submits a timely request for reconsideration, but the commissioner 
317.20 	does not set aside the disqualification for that license holder under section 245C.22, unless 
317.21 	the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
317.22 	(3) an individual who has a right to request a hearing under sections 245C.27 and 256.045, 
317.23 	or 245C.28 and chapter 14 for a disqualification that has not been set aside, does not request 
317.24 	a hearing within the specified time; or
317.25 	(4) an individual submitted a timely request for a hearing under sections 245C.27 and 
317.26 	256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
317.27 	disqualification under section 245A.08, subdivision 5, or 256.045.
317.28 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
317.29 	and the license holder was previously ordered under section 245C.17 to immediately remove 
317.30 	the disqualified individual from direct contact with persons receiving services or to ensure 
317.31 	that the individual is under continuous, direct supervision when providing direct contact 
317.32 	services, the order remains in effect pending the outcome of a hearing under sections 245C.27 
317.33 	and 256.045, or 245C.28 and chapter 14.
318.1 	(c) If the commissioner does not set aside the disqualification under section 245C.22, 
318.2 	and the license holder was not previously ordered under section 245C.17 to immediately 
318.3 	remove the disqualified individual from direct contact with persons receiving services or 
318.4 	to ensure that the individual is under continuous direct supervision when providing direct 
318.5 	contact services, the commissioner shall order the individual to remain under continuous 
318.6 	direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045, 
318.7 	or 245C.28 and chapter 14.
318.8 	(d) For background studies related to child foster care when the applicant or license 
318.9 	holder resides in the home where services are provided, the commissioner shall also notify 
318.10 	the county or private agency that initiated the study of the results of the reconsideration.
318.11 	(e) For background studies related to family child care, legal nonlicensed child care,
318.12 	adult foster care programs when the applicant or license holder resides in the home where 
318.13 	services are provided, and family adult day services, the commissioner shall also notify the 
318.14 	county that initiated the study of the results of the reconsideration.

318.15 	EFFECTIVE DATE. This section is effective April 28, 2025.

318.16 	Sec. 43. Minnesota Statutes 2022, section 245C.24, subdivision 2, is amended to read:
318.17 		Subd. 2.Permanent bar to set aside a disqualification. (a) Except as provided in 
318.18 	paragraphs (b) to (f) (g), the commissioner may not set aside the disqualification of any 
318.19 	individual disqualified pursuant to this chapter, regardless of how much time has passed, 
318.20 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
318.21 	1.
318.22 	(b) For an individual in the substance use disorder or corrections field who was 
318.23 	disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose 
318.24 	disqualification was set aside prior to July 1, 2005, the commissioner must consider granting 
318.25 	a variance pursuant to section 245C.30 for the license holder for a program dealing primarily 
318.26 	with adults. A request for reconsideration evaluated under this paragraph must include a 
318.27 	letter of recommendation from the license holder that was subject to the prior set-aside 
318.28 	decision addressing the individual's quality of care to children or vulnerable adults and the 
318.29 	circumstances of the individual's departure from that service.
318.30 	(c) If an individual who requires a background study for nonemergency medical 
318.31 	transportation services under section 245C.03, subdivision 12, was disqualified for a crime 
318.32 	or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have 
318.33 	passed since the discharge of the sentence imposed, the commissioner may consider granting 
319.1 	a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this 
319.2 	paragraph must include a letter of recommendation from the employer. This paragraph does 
319.3 	not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 
319.4 	609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, 
319.5 	clause (1); 617.246; or 617.247.
319.6 	(d) When a licensed foster care provider adopts an individual who had received foster 
319.7 	care services from the provider for over six months, and the adopted individual is required 
319.8 	to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause 
319.9 	(2) or (6), the commissioner may grant a variance to the license holder under section 245C.30 
319.10 	to permit the adopted individual with a permanent disqualification to remain affiliated with 
319.11 	the license holder under the conditions of the variance when the variance is recommended 
319.12 	by the county of responsibility for each of the remaining individuals in placement in the 
319.13 	home and the licensing agency for the home.
319.14 	(e) For an individual 18 years of age or older affiliated with a licensed family foster 
319.15 	setting, the commissioner must not set aside or grant a variance for the disqualification of 
319.16 	any individual disqualified pursuant to this chapter, regardless of how much time has passed, 
319.17 	if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 
319.18 	4a, paragraphs (a) and (b).
319.19 	(f) In connection with a family foster setting license, the commissioner may grant a 
319.20 	variance to the disqualification for an individual who is under 18 years of age at the time 
319.21 	the background study is submitted.
319.22 	(g) The commissioner may set aside or grant a variance for any disqualification that is 
319.23 	based on conduct or a conviction in an individual's juvenile record.

319.24 	Sec. 44. Minnesota Statutes 2022, section 245C.30, subdivision 2, is amended to read:
319.25 		Subd. 2.Disclosure of reason for disqualification. (a) The commissioner may not grant 
319.26 	a variance for a disqualified individual unless the applicant, license-exempt child care center 
319.27 	certification holder, or license holder requests the variance and the disqualified individual 
319.28 	provides written consent for the commissioner to disclose to the applicant, license-exempt 
319.29 	child care center certification holder, or license holder the reason for the disqualification.
319.30 	(b) This subdivision does not apply to programs licensed to provide family child care 
319.31 	for children, foster care for children in the provider's own home, or foster care or day care 
319.32 	services for adults in the provider's own home. When the commissioner grants a variance 
319.33 	for a disqualified individual in connection with a license to provide the services specified 
320.1 	in this paragraph, the disqualified individual's consent is not required to disclose the reason 
320.2 	for the disqualification to the license holder in the variance issued under subdivision 1, 
320.3 	provided that the commissioner may not disclose the reason for the disqualification if the 
320.4 	disqualification is based on a felony-level conviction for a drug-related offense within the 
320.5 	past five years.

320.6 	Sec. 45. Minnesota Statutes 2022, section 245C.32, subdivision 2, is amended to read:
320.7 		Subd. 2.Use. (a) The commissioner may also use these systems and records to obtain 
320.8 	and provide criminal history data from the Bureau of Criminal Apprehension, criminal 
320.9 	history data held by the commissioner, and data about substantiated maltreatment under 
320.10 	section 626.557 or chapter 260E, for other purposes, provided that:
320.11 	(1) the background study is specifically authorized in statute; or
320.12 	(2) the request is made with the informed consent of the subject of the study as provided 
320.13 	in section 13.05, subdivision 4.
320.14 	(b) An individual making a request under paragraph (a), clause (2), must agree in writing 
320.15 	not to disclose the data to any other individual without the consent of the subject of the data.
320.16 	(c) The commissioner may use these systems to share background study documentation 
320.17 	electronically with entities and individuals who are the subject of a background study.
320.18 	(d) The commissioner may recover the cost of obtaining and providing background study 
320.19 	data by charging the individual or entity requesting the study a fee of no more than $42 per 
320.20 	study as described in section 245C.10. The fees collected under this paragraph are 
320.21 	appropriated to the commissioner for the purpose of conducting background studies.

320.22 	Sec. 46. Minnesota Statutes 2022, section 524.5-118, is amended to read:
320.23 	524.5-118 BACKGROUND STUDY MALTREATMENT AND STATE LICENSING 
320.24 	AGENCY CHECKS; CRIMINAL HISTORY CHECK.
320.25 		Subdivision 1.When required; exception. (a) The court shall require a background 
320.26 	study maltreatment and state licensing agency checks and a criminal history check under 
320.27 	this section:
320.28 	(1) before the appointment of a guardian or conservator, unless a background study has
320.29 	maltreatment and state licensing agency checks and a criminal history check have been 
320.30 	done on the person under this section within the previous five years; and
321.1 	(2) once every five years after the appointment, if the person continues to serve as a 
321.2 	guardian or conservator.
321.3 	(b) The background study maltreatment and state licensing agency checks and the 
321.4 	criminal history check must include:
321.5 	(1) criminal history data from the Bureau of Criminal Apprehension, other criminal 
321.6 	history data held by the commissioner of human services, and data regarding whether the 
321.7 	person has been a perpetrator of substantiated maltreatment of a vulnerable adult or minor;
321.8 	(2) criminal history data from a national criminal history record check as defined in 
321.9 	section 245C.02, subdivision 13c; and
321.10 	(3) state licensing agency data if a search of the database or databases of the agencies 
321.11 	listed in subdivision 2a shows that the proposed guardian or conservator has ever held a 
321.12 	professional license directly related to the responsibilities of a professional fiduciary from 
321.13 	an agency listed in subdivision 2a that was conditioned, suspended, revoked, or canceled; 
321.14 	and
321.15 	(4) data on whether the person has been a perpetrator of substantiated maltreatment of 
321.16 	a vulnerable adult or a minor.
321.17 	(c) If the guardian or conservator is not an individual, the background study maltreatment 
321.18 	and state licensing agency checks and the criminal history check must be done on all 
321.19 	individuals currently employed by the proposed guardian or conservator who will be 
321.20 	responsible for exercising powers and duties under the guardianship or conservatorship.
321.21 	(d) Notwithstanding paragraph (a), if the court determines that it would be in the best 
321.22 	interests of the person subject to guardianship or conservatorship to appoint a guardian or 
321.23 	conservator before the background study maltreatment and state licensing agency checks 
321.24 	and the criminal history check can be completed, the court may make the appointment 
321.25 	pending the results of the study, however, the background study maltreatment and state 
321.26 	licensing agency checks and the criminal history check must then be completed as soon as 
321.27 	reasonably possible after appointment, no later than 30 days after appointment.
321.28 	(e) The fee fees for background studies the maltreatment and state licensing agency 
321.29 	checks and the criminal history check conducted under this section is are specified in section
321.30 	sections245C.10, subdivision 14 15, and 299C.10, subdivisions 4 and 5. The fee fees for 
321.31 	conducting a background study maltreatment and state licensing agency checks and the 
321.32 	criminal history check for the appointment of a professional guardian or conservator must 
321.33 	be paid by the guardian or conservator. In other cases, the fee must be paid as follows:
322.1 	(1) if the matter is proceeding in forma pauperis, the fee is an expense for purposes of 
322.2 	section 524.5-502, paragraph (a);
322.3 	(2) if there is an estate of the person subject to guardianship or conservatorship, the fee 
322.4 	must be paid from the estate; or
322.5 	(3) in the case of a guardianship or conservatorship of the person that is not proceeding 
322.6 	in forma pauperis, the court may order that the fee be paid by the guardian or conservator 
322.7 	or by the court.
322.8 	(f) The requirements of this subdivision do not apply if the guardian or conservator is:
322.9 	(1) a state agency or county;
322.10 	(2) a parent or guardian of a person proposed to be subject to guardianship or 
322.11 	conservatorship who has a developmental disability, if the parent or guardian has raised the 
322.12 	person proposed to be subject to guardianship or conservatorship in the family home until 
322.13 	the time the petition is filed, unless counsel appointed for the person proposed to be subject 
322.14 	to guardianship or conservatorship under section 524.5-205, paragraph (e); 524.5-304, 
322.15 	paragraph (b); 524.5-405, paragraph (a); or 524.5-406, paragraph (b), recommends a 
322.16 	background study check; or
322.17 	(3) a bank with trust powers, bank and trust company, or trust company, organized under 
322.18 	the laws of any state or of the United States and which is regulated by the commissioner of 
322.19 	commerce or a federal regulator.
322.20 		Subd. 2.Procedure; criminal history and maltreatment records background
322.21 	maltreatment and state licensing agency checks and criminal history check. (a) The 
322.22 	court guardian or conservator shall request the commissioner of human services to Bureau 
322.23 	of Criminal Apprehension complete a background study under section 245C.32 criminal 
322.24 	history check. The request must be accompanied by the applicable fee and acknowledgment 
322.25 	that the study subject guardian or conservator received a privacy notice required under 
322.26 	subdivision 3. The commissioner of human services Bureau of Criminal Apprehension shall 
322.27 	conduct a national criminal history record check. The study subject guardian or conservator
322.28 	shall submit a set of classifiable fingerprints. The fingerprints must be recorded on a 
322.29 	fingerprint card provided by the commissioner of human services Bureau of Criminal 
322.30 	Apprehension.
322.31 	(b) The commissioner of human services Bureau of Criminal Apprehension shall provide 
322.32 	the court with criminal history data as defined in section 13.87from the Bureau of Criminal 
322.33 	Apprehension in the Department of Public Safety, other criminal history data held by the 
323.1 	commissioner of human services, data regarding substantiated maltreatment of vulnerable 
323.2 	adults under section 626.557, and substantiated maltreatment of minors under chapter 260E,
323.3 	and criminal history information from other states or jurisdictions as indicated from a national 
323.4 	criminal history record check within 20 working days of receipt of a request. If the subject 
323.5 	of the study has been the perpetrator of substantiated maltreatment of a vulnerable adult or 
323.6 	minor, the response must include a copy of the public portion of the investigation 
323.7 	memorandum under section 626.557, subdivision 12b, or the public portion of the 
323.8 	investigation memorandum under section 260E.30. The commissioner shall provide the 
323.9 	court with information from a review of information according to subdivision 2a if the study 
323.10 	subject provided information indicating current or prior affiliation with a state licensing 
323.11 	agency.
323.12 	(c) In accordance with section 245C.033, the commissioner of human services shall 
323.13 	provide the court with data regarding substantiated maltreatment of vulnerable adults under 
323.14 	section 626.557 and substantiated maltreatment of minors under chapter 260E within 25 
323.15 	working days of receipt of a request. If the guardian or conservator has been the perpetrator 
323.16 	of substantiated maltreatment of a vulnerable adult or minor, the response must include a 
323.17 	copy of any available public portion of the investigation memorandum under section 626.557, 
323.18 	subdivision 12b, or any available public portion of the investigation memorandum under 
323.19 	section 260E.30.
323.20 	(d) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
323.21 	of human services or a county lead agency or lead investigative agency has information that 
323.22 	a person on whom a background study was previously done under this section has been 
323.23 	determined to be a perpetrator of maltreatment of a vulnerable adult or minor, the 
323.24 	commissioner or the county may provide this information to the court that requested the 
323.25 	background study. The commissioner may also provide the court with additional criminal 
323.26 	history or substantiated maltreatment information that becomes available after the background 
323.27 	study is done is determining eligibility for the guardian or conservator.
323.28 		Subd. 2a.Procedure; state licensing agency data. (a) The court shall request In response 
323.29 	to a request submitted under section 245C.033, the commissioner of human services to shall
323.30 	provide the court within 25 working days of receipt of the request with licensing agency 
323.31 	data for licenses directly related to the responsibilities of a professional fiduciary if the study 
323.32 	subject indicates guardian or conservator has a current or prior affiliation from the following 
323.33 	agencies in Minnesota:
323.34 	(1) Lawyers Responsibility Board;
324.1 	(2) State Board of Accountancy;
324.2 	(3) Board of Social Work;
324.3 	(4) Board of Psychology;
324.4 	(5) Board of Nursing;
324.5 	(6) Board of Medical Practice;
324.6 	(7) Department of Education;
324.7 	(8) Department of Commerce;
324.8 	(9) Board of Chiropractic Examiners;
324.9 	(10) Board of Dentistry;
324.10 	(11) Board of Marriage and Family Therapy;
324.11 	(12) Department of Human Services;
324.12 	(13) Peace Officer Standards and Training (POST) Board; and
324.13 	(14) Professional Educator Licensing and Standards Board.
324.14 	(b) The commissioner shall enter into agreements with these agencies to provide the 
324.15 	commissioner with electronic access to the relevant licensing data, and to provide the 
324.16 	commissioner with a quarterly list of new sanctions issued by the agency.
324.17 	(c) The commissioner shall provide information to the court the electronically available 
324.18 	data maintained in the agency's database, including whether the proposed guardian or 
324.19 	conservator is or has been licensed by the agency, and if the licensing agency database 
324.20 	indicates a disciplinary action or a sanction against the individual's license, including a 
324.21 	condition, suspension, revocation, or cancellation in accordance with section 245C.033.
324.22 	(d) If the proposed guardian or conservator has resided in a state other than Minnesota 
324.23 	in the previous ten years, licensing agency data under this section shall also include the 
324.24 	licensing agency data from any other state where the proposed guardian or conservator 
324.25 	reported to have resided during the previous ten years if the study subject indicates current 
324.26 	or prior affiliation. If the proposed guardian or conservator has or has had a professional 
324.27 	license in another state that is directly related to the responsibilities of a professional fiduciary 
324.28 	from one of the agencies listed under paragraph (a), state licensing agency data shall also 
324.29 	include data from the relevant licensing agency of that state.
325.1 	(e) The commissioner is not required to repeat a search for Minnesota or out-of-state 
325.2 	licensing data on an individual if the commissioner has provided this information to the 
325.3 	court within the prior five years.
325.4 	(f) The commissioner shall review the information in paragraph (c) at least once every 
325.5 	four months to determine if an individual who has been studied within the previous five 
325.6 	years:
325.7 	(1) has new disciplinary action or sanction against the individual's license; or
325.8 	(2) did not disclose a prior or current affiliation with a Minnesota licensing agency.
325.9 	(g) If the commissioner's review in paragraph (f) identifies new information, the 
325.10 	commissioner shall provide any new information to the court.
325.11 		Subd. 3.Forms and systems. The court In accordance with section 245C.033, the 
325.12 	commissioner must provide the study subject guardian or conservator with a privacy notice 
325.13 	for maltreatment and state licensing agency checks that complies with section 245C.05, 
325.14 	subdivision 2c. The commissioner of human services shall use the NETStudy 2.0 system 
325.15 	to conduct a background study under this section 13.04, subdivision 2. The Bureau of 
325.16 	Criminal Apprehension must provide the guardian or conservator with a privacy notice for 
325.17 	a criminal history check.
325.18 		Subd. 4.Rights. The court shall notify the subject of a background study guardian or 
325.19 	conservator that the subject guardian or conservator has the following rights:
325.20 	(1) the right to be informed that the court will request a background study on the subject
325.21 	maltreatment and state licensing checks and a criminal history check on the guardian or 
325.22 	conservator for the purpose of determining whether the person's appointment or continued 
325.23 	appointment is in the best interests of the person subject to guardianship or conservatorship;
325.24 	(2) the right to be informed of the results of the study checks and to obtain from the 
325.25 	court a copy of the results; and
325.26 	(3) the right to challenge the accuracy and completeness of information contained in the 
325.27 	results under section 13.04, subdivision 4, except to the extent precluded by section 256.045, 
325.28 	subdivision 3.

325.29 	Sec. 47. REPEALER.
 325.30 	(a) Minnesota Statutes 2022, sections 245C.02, subdivision 14b; 245C.032; and 245C.30, 
325.31 	subdivision 1a, are repealed.
325.32 	(b) Minnesota Statutes 2022, section 245C.11, subdivision 3, is repealed.

326.1 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2023, and paragraph (b) is 
326.2 	effective April 28, 2025.

326.3 	ARTICLE 8
326.4 	LICENSING

326.5 	Section 1. Minnesota Statutes 2022, section 119B.16, subdivision 1a, is amended to read:
326.6 		Subd. 1a.Fair hearing allowed for providers. (a) This subdivision applies to providers 
326.7 	caring for children receiving child care assistance.
326.8 	(b) A provider may request a fair hearing according to sections 256.045 and 256.046 
326.9 	only if a county agency or the commissioner:
326.10 	(1) denies or revokes a provider's authorization, unless the action entitles the provider 
326.11 	to:
326.12 	(i) an administrative review under section 119B.161; or
326.13 	(ii) a contested case hearing under section 245.095, subdivision 4;
326.14 	(2) assigns responsibility for an overpayment to a provider under section 119B.11, 
326.15 	subdivision 2a;
326.16 	(3) establishes an overpayment for failure to comply with section 119B.125, subdivision 
326.17 	6;
326.18 	(4) seeks monetary recovery or recoupment under section 245E.02, subdivision 4, 
326.19 	paragraph (c), clause (2);
326.20 	(5) initiates an administrative fraud disqualification hearing; or
326.21 	(6) issues a payment and the provider disagrees with the amount of the payment.
326.22 	(c) A provider may request a fair hearing by submitting a written request to the 
326.23 	Department of Human Services, Appeals Division. A provider's request must be received 
326.24 	by the Appeals Division no later than 30 days after the date a county or the commissioner 
326.25 	mails the notice.
326.26 	(d) The provider's appeal request must contain the following:
326.27 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
326.28 	dollar amount involved for each disputed item;
326.29 	(2) the computation the provider believes to be correct, if applicable;
326.30 	(3) the statute or rule relied on for each disputed item; and
327.1 	(4) the name, address, and telephone number of the person at the provider's place of 
327.2 	business with whom contact may be made regarding the appeal.

327.3 	Sec. 2. Minnesota Statutes 2022, section 245.095, is amended to read:
327.4 	245.095 LIMITS ON RECEIVING PUBLIC FUNDS.
327.5 		Subdivision 1.Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, 
327.6 	receiving funds under a grant contract, or registered in any program administered by the 
327.7 	commissioner, including under the commissioner's powers and authorities in section 256.01, 
327.8 	is excluded from that program, the commissioner shall:
327.9 	(1) prohibit the excluded provider, vendor, or individual from enrolling, becoming 
327.10 	licensed, receiving grant funds, or registering in any other program administered by the 
327.11 	commissioner; and
327.12 	(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, 
327.13 	vendor, or individual in any other program administered by the commissioner.
327.14 	(b) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant 
327.15 	contract, or registered in any program administered by the commissioner, including under 
327.16 	the commissioner's powers and authorities in section 256.01, is excluded from that program, 
327.17 	the commissioner may:
327.18 	(1) prohibit any associated entities or associated individuals from enrolling, becoming 
327.19 	licensed, receiving grant funds, or registering in any other program administered by the 
327.20 	commissioner; and
327.21 	(2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities 
327.22 	or associated individuals in any other program administered by the commissioner.
327.23 	(c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds 
327.24 	under any contract or registered in any program administered by a Minnesota state or federal 
327.25 	agency is excluded from that program, the commissioner of human services may:
327.26 	(1) prohibit the excluded provider, vendor, individual, or any associated entities or 
327.27 	associated individuals from enrolling, becoming licensed, receiving grant funds, or registering 
327.28 	in any program administered by the commissioner; and
327.29 	(2) disenroll, revoke or suspend a license of, disqualify, or debar the excluded provider, 
327.30 	vendor, individual, or any associated entities or associated individuals in any program 
327.31 	administered by the commissioner.
328.1 	(b) (d) The duration of this a prohibition, disenrollment, revocation, suspension, 
328.2 	disqualification, or debarment under paragraph (a) must last for the longest applicable 
328.3 	sanction or disqualifying period in effect for the provider, vendor, or individual permitted 
328.4 	by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, 
328.5 	disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest 
328.6 	applicable sanction or disqualifying period in effect for the provider, vendor, individual, 
328.7 	associated entity, or associated individual as permitted by state or federal law.
328.8 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
328.9 	meanings given them.
328.10 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
328.11 	individual.
328.12 	(c) "Associated individual" means an individual or an entity that has a relationship with 
328.13 	an excluded provider or vendor, its owners, or controlling individuals, such that the individual 
328.14 	or entity would have knowledge of the excluded provider or vendor's business practices, 
328.15 	including but not limited to financial practices.
328.16 	(b) (d) "Excluded" means disenrolled, disqualified, having a license that has been revoked 
328.17 	or suspended under chapter 245A, or debarred or suspended under Minnesota Rules, part 
328.18 	1230.1150, or excluded pursuant to section 256B.064, subdivision 3 removed under other 
328.19 	authorities from a program administered by a Minnesota state or federal agency, including 
328.20 	a final determination to stop payments.
328.21 	(c) (e) "Individual" means a natural person providing products or services as a provider 
328.22 	or vendor.
328.23 	(d) (f) "Provider" includes any entity or individual receiving payment from a program 
328.24 	administered by the Department of Human Services, and an owner, controlling individual, 
328.25 	license holder, director, or managerial official of an entity receiving payment from a program 
328.26 	administered by the Department of Human Services means any entity, individual, owner, 
328.27 	controlling individual, license holder, director, or managerial official of an entity receiving 
328.28 	payment from a program administered by a Minnesota state or federal agency.
328.29 		Subd. 3.Notice. Within five days of taking an action under subdivision (1), paragraph 
328.30 	(a), (b), or (c), against a provider, vendor, individual, associated individual, or associated 
328.31 	entity, the commissioner must send notice of the action to the provider, vendor, individual, 
328.32 	associated individual, or associated entity. The notice must state:
328.33 	(1) the basis for the action;
329.1 	(2) the effective date of the action;
329.2 	(3) the right to appeal the action; and
329.3 	(4) the requirements and procedures for reinstatement.
329.4 		Subd. 4.Appeal. Upon receipt of a notice under subdivision 3, a provider, vendor, 
329.5 	individual, associated individual, or associated entity may request a contested case hearing, 
329.6 	as defined in section 14.02, subdivision 3, by filing with the commissioner a written request 
329.7 	of appeal. The scope of any contested case hearing is solely limited to action taken under 
329.8 	this section. The commissioner must receive the appeal request no later than 30 days after 
329.9 	the date the notice was mailed to the provider, vendor, individual, associated individual, or 
329.10 	associated entity. The appeal request must specify:
329.11 	(1) each disputed item and the reason for the dispute;
329.12 	(2) the authority in statute or rule upon which the provider, vendor, individual, associated 
329.13 	individual, or associated entity relies for each disputed item;
329.14 	(3) the name and address of the person or entity with whom contacts may be made 
329.15 	regarding the appeal; and
329.16 	(4) any other information required by the commissioner.
329.17 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
329.18 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
329.19 	individual, or associated entity in any program administered by the commissioner, if the 
329.20 	commissioner determines there is a credible allegation of fraud for which an investigation 
329.21 	is pending for a program administered by a Minnesota state or federal agency.
329.22 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
329.23 	that has been verified by the commissioner from any source, including but not limited to:
329.24 	(1) fraud hotline complaints;
329.25 	(2) claims data mining;
329.26 	(3) patterns identified through provider audits, civil false claims cases, and law 
329.27 	enforcement investigations; and
329.28 	(4) court filings and other legal documents, including but not limited to police reports, 
329.29 	complaints, indictments, informations, affidavits, declarations, and search warrants.
329.30 	(c) The commissioner must send notice of the withholding of payments within five days 
329.31 	of taking such action. The notice must:
330.1 	(1) state that payments are being withheld according to this subdivision;
330.2 	(2) set forth the general allegations related to the withholding action, except the notice 
330.3 	need not disclose specific information concerning an ongoing investigation;
330.4 	(3) state that the withholding is for a temporary period and cite the circumstances under 
330.5 	which the withholding will be terminated; and
330.6 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
330.7 	of the right to submit written evidence to contest the withholding action for consideration 
330.8 	by the commissioner.
330.9 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
330.10 	individual, associated individual, or associated entity has a right to request administrative 
330.11 	reconsideration. A request for administrative reconsideration must be made in writing, must 
330.12 	state with specificity the reasons the payment withhold is in error, and must include 
330.13 	documentation to support the request. Within 60 days from receipt of the request, the 
330.14 	commissioner must judiciously review allegations, facts, evidence available to the 
330.15 	commissioner as well as information submitted by the provider, vendor, individual, associated 
330.16 	individual, or associated entity to determine whether the payment withhold should remain 
330.17 	in place. The commissioner's decision on reconsideration regarding the payment withhold 
330.18 	is a final decision.
330.19 	(e) The commissioner shall stop withholding payments if the commissioner determines 
330.20 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
330.21 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
330.22 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
330.23 	vendor, individual, associated individual, or associated entity.
330.24 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
330.25 	section 256.045 or chapter 14.

330.26 	Sec. 3. [245.7351] PURPOSE AND ESTABLISHMENT.
330.27 	The certified community behavioral health clinic model is an integrated payment and 
330.28 	service delivery model that uses evidence-based behavioral health practices to achieve better 
330.29 	outcomes for individuals experiencing behavioral health concerns while achieving sustainable 
330.30 	rates for providers and economic efficiencies for payors.

330.31 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
330.32 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
330.33 	when federal approval is obtained.

331.1 	Sec. 4. [245.7352] DEFINITIONS.
331.2 		Subdivision 1.Scope. The definitions in this section apply to sections 245.7351 to 
331.3 	245.7357.
331.4 		Subd. 2.Care coordination. "Care coordination" means the activities required to 
331.5 	coordinate care across settings and providers for the people served to ensure seamless 
331.6 	transitions across the full spectrum of health services. Care coordination includes: outreach 
331.7 	and engagement; documenting a plan of care for medical, behavioral health, and social 
331.8 	services and supports in the integrated treatment plan; assisting with obtaining appointments; 
331.9 	confirming appointments are kept; developing a crisis plan; tracking medication; and 
331.10 	implementing care coordination agreements with external providers. Care coordination may 
331.11 	include psychiatric consultation to primary care practitioners and mental health clinical care 
331.12 	consultation.
331.13 		Subd. 3.Certified community behavioral health clinic or CCBHC. "Certified 
331.14 	community behavioral health clinic" or "CCBHC" means a program or provider governed 
331.15 	under sections 245.7351 to 245.7357.
331.16 		Subd. 4.Clinical responsibility.  "Clinical responsibility" means ensuring a designated 
331.17 	collaborating organization meets all clinical parameters required of the CCBHC.
331.18 		Subd. 5.Commissioner. "Commissioner" means the commissioner of human services.
331.19 		Subd. 6.Comprehensive evaluation.  "Comprehensive evaluation" means a 
331.20 	person-centered, family-centered, trauma-informed evaluation completed for the purposes 
331.21 	of diagnosis, treatment planning, and determination of client eligibility for services approved 
331.22 	by a mental health professional.
331.23 		Subd. 7.Designated collaborating organization.  "Designated collaborating 
331.24 	organization" means an entity with a formal agreement with a CCBHC to furnish CCBHC 
331.25 	services.
331.26 		Subd. 8.Designated collaborating organization agreement. "Designated collaborating 
331.27 	organization agreement" means a purchase of services agreement between a CCBHC and 
331.28 	a designated collaborating organization as evidenced by a contract, memorandum of 
331.29 	agreement, memorandum of understanding, or other such formal arrangement that describes 
331.30 	specific CCBHC services to be purchased and provided by a designated collaborating 
331.31 	organization on behalf of a CCBHC in accordance with federal and state requirements.
332.1 		Subd. 9.Functional assessment.  "Functional assessment" means the assessment of a 
332.2 	client's current level of functioning relative to functioning that is appropriate for someone 
332.3 	the client's age.
332.4 		Subd. 10.Financial responsibility. "Financial responsibility" means the responsibility 
332.5 	for billing CCBHC services rendered under contract by a designated collaborating 
332.6 	organization.
332.7 		Subd. 11.Initial evaluation. "Initial evaluation" means an evaluation that is designed 
332.8 	to gather and document initial components of the comprehensive evaluation, allowing the 
332.9 	assessor to formulate a preliminary diagnosis and the client to begin services.
332.10 		Subd. 12.Initial evaluation equivalents.  "Initial evaluation equivalents" means using 
332.11 	a process that is approved by the commissioner as an alternative to the initial evaluation.
332.12 		Subd. 13.Integrated treatment plan. "Integrated treatment plan" means a documented 
332.13 	plan of care that is person- and family-centered and formulated to respond to a client's needs 
332.14 	and goals. The integrated treatment plan must integrate prevention, medical needs, and 
332.15 	behavioral health needs and service delivery. The CCBHC must develop the integrated 
332.16 	treatment plan in collaboration with and receive endorsement from the client, the adult 
332.17 	client's family to the extent the client wishes and a child or youth client's family or caregivers, 
332.18 	and coordinate with staff or programs necessary to carry out the plan.
332.19 		Subd. 14.Outpatient withdrawal management. "Outpatient withdrawal management" 
332.20 	means a time-limited service delivered in an office setting, an outpatient behavioral health 
332.21 	clinic, or a person's home by staff providing medically supervised evaluation and 
332.22 	detoxification services to achieve safe and comfortable withdrawal from substances and 
332.23 	facilitate transition into ongoing treatment and recovery. Outpatient withdrawal management 
332.24 	services include assessment, withdrawal management, planning, medication prescribing 
332.25 	and management, trained observation of withdrawal symptoms, and supportive services.
332.26 		Subd. 15.Preliminary screening and risk assessment. "Preliminary screening and risk 
332.27 	assessment" means a screening and risk assessment that is completed at the first contact 
332.28 	with the prospective CCBHC service recipient and determines the acuity of recipient need.
332.29 		Subd. 16.Preliminary treatment plan. "Preliminary treatment plan" means an initial 
332.30 	plan of care that is written as a part of all initial evaluations, initial evaluation equivalents, 
332.31 	or comprehensive evaluations.
333.1 		Subd. 17.Needs assessment. "Needs assessment" means a systematic approach to 
333.2 	identifying community needs and determining program capacity to address the needs of the 
333.3 	population being served.
333.4 		Subd. 18.State-sanctioned crisis services. "State-sanctioned crisis services" means 
333.5 	adult and children's crisis response services conducted by an entity enrolled to provide crisis 
333.6 	services under section 256B.0624.

333.7 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
333.8 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
333.9 	when federal approval is obtained.

333.10 	Sec. 5. [245.7353] APPLICABILITY.
333.11 		Subdivision 1.Certification process. (a) The commissioner must establish state 
333.12 	certification and recertification processes for certified community behavioral health clinics 
333.13 	that satisfy all federal and state requirements necessary for CCBHCs certified under sections 
333.14 	245.7351 to 245.7357 to be eligible for reimbursement under medical assistance, without 
333.15 	service area limits based on geographic area or region. The commissioner must consult with 
333.16 	CCBHC stakeholders before establishing and implementing changes in the certification or 
333.17 	recertification process and requirements.
333.18 	(b) The commissioner shall recertify a CCBHC provider entity every 36 months using 
333.19 	the provider entity's certification anniversary or December 31. The commissioner may 
333.20 	approve a recertification extension in the interest of sustaining services when a specific date 
333.21 	for recertification is identified.
333.22 	(c) The commissioner shall establish a process for decertification of a CCBHC provider 
333.23 	entity and shall require corrective action, medical assistance repayment, or decertification 
333.24 	of a provider entity that no longer meets the requirements in sections 245.7351 to 245.7357 
333.25 	or that fails to meet the clinical quality standards or administrative standards provided by 
333.26 	the commissioner in the application and certification processes.
333.27 	(d) The commissioner shall provide the following to CCBHC provider entities for the 
333.28 	certification, recertification, and decertification processes:
333.29 	(1) a structured listing of required provider entity certification criteria;
333.30 	(2) a formal written letter with a determination of certification, recertification, or 
333.31 	decertification, signed by the commissioner or the appropriate division director; and
334.1 	(3) a formal written communication outlining the process for necessary corrective action 
334.2 	and follow-up by the commissioner, if applicable, signed by the commissioner or the 
334.3 	appropriate division director.
334.4 		Subd. 2.Certifications and licensures required. In addition to all other requirements 
334.5 	contained in sections 245.7351 to 245.7357, a CCBHC must:
334.6 	(1) comply with the standards issued by the commissioner relating to CCBHC screenings, 
334.7 	assessments, and evaluations;
334.8 	(2) be certified as a mental health clinic under section 245I.20;
334.9 	(3) be licensed to provide substance use disorder treatment under chapter 245G;
334.10 	(4) be certified to provide children's therapeutic services and supports under section 
334.11 	256B.0943;
334.12 	(5) be certified to provide adult rehabilitative mental health services under section 
334.13 	256B.0623;
334.14 	(6) be enrolled to provide mental health crisis response services under section 256B.0624;
334.15 	(7) be enrolled to provide mental health targeted case management under section 
334.16 	256B.0625, subdivision 20;
334.17 	(8) comply with standards relating to mental health case management in Minnesota 
334.18 	Rules, parts 9520.0900 to 9520.0926;
334.19 	(9) comply with standards relating to peer services under sections 256B.0615, 256B.0616, 
334.20 	and 245G.07, subdivision 2, clause (8), as applicable when peer services are provided; and
334.21 	(10) directly employ, or through a formal arrangement utilize, a medically trained 
334.22 	behavioral health care provider with independent authority under state law to prescribe and 
334.23 	manage medications, including buprenorphine and other medications used to treat opioid 
334.24 	and alcohol use disorders.
334.25 		Subd. 3.Variance authority. When the standards listed in sections 245.7351 to 245.7357 
334.26 	or other applicable standards conflict or address similar issues in duplicative or incompatible 
334.27 	ways, the commissioner may grant variances to state requirements if the variances do not 
334.28 	conflict with federal requirements for services reimbursed under medical assistance. If 
334.29 	standards overlap, the commissioner may substitute all or a part of a licensure or certification 
334.30 	that is substantially the same as another licensure or certification. The commissioner must 
334.31 	consult with stakeholders as described in subdivision 1 before granting variances under this 
334.32 	subdivision. For the CCBHC that is certified but not approved for prospective payment 
335.1 	under section 256B.0625, subdivision 5m, the commissioner may grant a variance under 
335.2 	this paragraph if the variance does not increase the state share of costs.
335.3 		Subd. 4.Notice and opportunity for correction. If the commissioner finds that a 
335.4 	prospective or certified CCBHC has failed to comply with an applicable law or rule and 
335.5 	this failure does not imminently endanger health, safety, or rights of the persons served by 
335.6 	the program, the commissioner may issue a notice ordering a correction. The notice ordering 
335.7 	a correction must state the following in plain language:
335.8 	(1) the conditions that constitute a violation of the law or rule;
335.9 	(2) the specific law or rule violated; and
335.10 	(3) the time allowed to correct each violation.
335.11 		Subd. 5.County letter of support. A clinic that meets certification requirements for a 
335.12 	CCBHC under sections 245.7351 to 245.7357 is not subject to any state law or rule that 
335.13 	requires a county contract or other form of county approval as a condition for licensure or 
335.14 	enrollment as a medical assistance provider. The commissioner must require evidence from 
335.15 	the CCBHC that it has an ongoing relationship with the county or counties it serves to 
335.16 	facilitate access and continuity of care, especially for individuals who are uninsured or who 
335.17 	may go on and off medical assistance.
335.18 		Subd. 6.Decertification, denial of certification, or recertification request. (a) The 
335.19 	commissioner must establish a process for decertification and must require corrective action, 
335.20 	medical assistance repayment, or decertification of a CCBHC that no longer meets the 
335.21 	requirements in this section.
335.22 	(b) The commissioner must provide the following to providers for the certification, 
335.23 	recertification, and decertification process:
335.24 	(1) a structured listing of required provider certification criteria;
335.25 	(2) a formal written letter with a determination of certification, recertification, or 
335.26 	decertification, signed by the commissioner or the appropriate division director; and
335.27 	(3) a formal written communication outlining the process for necessary corrective action 
335.28 	and follow-up by the commissioner if applicable.

335.29 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
335.30 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
335.31 	when federal approval is obtained.

336.1 	Sec. 6. [245.7354] MINIMUM STAFFING STANDARDS.
336.2 	(a) A CCBHC must meet minimum staffing requirements as identified in the certification 
336.3 	process.
336.4 	(b) A CCBHC must employ or contract for clinic staff who have backgrounds in diverse 
336.5 	disciplines, including licensed mental health professionals, licensed alcohol and drug 
336.6 	counselors, staff who are culturally and linguistically trained to meet the needs of the 
336.7 	population the clinic serves, and staff who are trained to make accommodations to meet the 
336.8 	needs of clients with disabilities.

336.9 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
336.10 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
336.11 	when federal approval is obtained.

336.12 	Sec. 7. [245.7355] REQUIRED SERVICES.
336.13 		Subdivision 1.Generally. CCBHCs must provide nine core services identified in 
336.14 	subdivisions 2 and 3.
336.15 		Subd. 2.Required services to be provided directly. Unless otherwise specified in 
336.16 	sections 245.7351 to 245.7357 and approved by the commissioner, a CCBHC must directly 
336.17 	provide the following:
336.18 	(1) ambulatory withdrawal management services ASAM level 1.0;
336.19 	(2) treatment planning;
336.20 	(3) screening, assessment, diagnosis, and risk assessment;
336.21 	(4) outpatient mental health treatment; and
336.22 	(5) substance use disorder treatment services for both adult and adolescent populations.
336.23 		Subd. 3.Direct or contracted required services. A CCBHC must provide the following 
336.24 	services directly or via formal relationships with designated collaborating organizations:
336.25 	(1) targeted case management;
336.26 	(2) outpatient primary care screening and monitoring;
336.27 	(3) community-based mental health care for veterans;
336.28 	(4) peer, family support, and counselor services;
336.29 	(5) psychiatric rehabilitation services; and
336.30 	(6) crisis services conducted by a state-sanctioned provider.
337.1 		Subd. 4.Care coordination required. A CCBHC must directly provide coordination 
337.2 	of care across settings and providers to ensure seamless transitions for individuals being 
337.3 	served across the full spectrum of health services, including acute, chronic, and behavioral 
337.4 	needs.
337.5 		Subd. 5.Outreach and engagement required.  A CCBHC must provide outreach and 
337.6 	engagement services to the community, including promoting accessibility and culturally 
337.7 	and linguistically competent care, educating prospective CCBHC recipients about available 
337.8 	services, and connecting prospective CCBHC recipients with needed services.
337.9 		Subd. 6.Initial evaluation; required elements. (a) An initial evaluation must be 
337.10 	completed by a mental health professional or clinical trainee and must contain all data 
337.11 	elements listed in the commissioner's public clinical guidance.
337.12 	(b) The timing of initial evaluation administration must be determined based on results 
337.13 	of the preliminary screening and risk assessment. If a client is assessed to be experiencing 
337.14 	a crisis-level behavioral health need, care must follow the timelines established in the 
337.15 	CCBHC certification criteria published by the Substance Abuse and Mental Health Services 
337.16 	Administration and the commissioner's published clinical guidance.
337.17 	(c) Initial evaluation equivalents, as defined by the commissioner, may be completed to 
337.18 	satisfy the requirement for the initial evaluation under this subdivision.
337.19 	(d) The initial evaluation must include the following components:
337.20 	(e) For programs governed by sections 245.7351 to 245.7357, the CCBHC initial 
337.21 	evaluation requirements in this subdivision satisfy the requirements for:
337.22 	(1) a brief diagnostic assessment under section 245I.10, subdivision 5;
337.23 	(2) an individual family assessment summary under section 245.4881, subdivisions 3 
337.24 	and 4;
337.25 	(3) an individual assessment summary under section 245.4711, subdivisions 3 and 4;
337.26 	(4) a diagnostic assessment under Minnesota Rules, part 9520.0909, subpart 1;
337.27 	(5) a local agency determination based on a diagnostic assessment under Minnesota 
337.28 	Rules, part 9520.0910, subpart 1;
337.29 	(6) an individual family community support plan and an individual community support 
337.30 	plan under Minnesota Rules, part 9520.0914, subpart 2, items A and B;
337.31 	(7) an individual family community support plan under Minnesota Rules, part 9520.0918, 
337.32 	subparts 1 and 2; and
338.1 	(8) an individual community support plan under Minnesota Rules, part 9520.0919, 
338.2 	subparts 1 and 2.
338.3 		Subd. 7.Comprehensive evaluation; required elements. (a) All new CCBHC clients 
338.4 	must receive a comprehensive person-centered and family-centered diagnostic and treatment 
338.5 	planning evaluation to be completed within 60 calendar days following the preliminary 
338.6 	screening and risk assessment.
338.7 	(b) The comprehensive evaluation must be completed by a mental health professional 
338.8 	or clinical trainee and must contain all data elements listed in the commissioner's public 
338.9 	clinical guidance.
338.10 	(c) When a CCBHC client is engaged in substance use disorder services provided by 
338.11 	the CCBHC, the comprehensive evaluation must also be approved by an alcohol and drug 
338.12 	counselor.
338.13 	(d) A CCBHC comprehensive evaluation completed according to the standards in 
338.14 	subdivision 7 replaces the requirements for a comprehensive assessment in chapter 245G, 
338.15 	if the comprehensive evaluation includes a diagnosis of a substance use disorder or a finding 
338.16 	that the client does not meet the criteria for a substance use disorder.
338.17 	(e) A comprehensive evaluation must be updated at least annually for all adult clients 
338.18 	who continue to engage in behavioral health services, and:
338.19 	(1) when the client's presentation does not appear to align with the current diagnostic 
338.20 	formulation; or
338.21 	(2) when the client or mental health professional suspect the emergence of a new 
338.22 	diagnosis.
338.23 	(f) A comprehensive evaluation update must contain the following components:
338.24 	(1) a written update detailing all significant new or changed mental health symptoms, 
338.25 	as well as a description of how the new or changed symptoms are impacting functioning;
338.26 	(2) any diagnostic formulation updates, including rationale for new diagnoses as needed; 
338.27 	and
338.28 	(3) a rationale for removal of any existing diagnoses, as needed.
338.29 	(g) When completing a comprehensive evaluation of a client who is five years of age 
338.30 	or younger, the assessor must use the current edition of the DC: 0-5 Diagnostic Classification 
338.31 	of Mental Health and Development Disorders of Infancy and Early Childhood published 
338.32 	by Zero to Three. The comprehensive evaluation of children age five years and younger:
339.1 	(1) must include an initial session without the client present and may include treatment 
339.2 	to the parents or guardians along with inquiring about the child;
339.3 	(2) may consist of three to five separate encounters;
339.4 	(3) must incorporate the level of care assessment;
339.5 	(4) must be completed prior to recommending additional CCBHC services; and
339.6 	(5) must not contain scoring of the American Society of Addiction Medicine six 
339.7 	dimensions.
339.8 	(h) For programs governed by sections 245.7351 to 245.7357, the CCBHC comprehensive 
339.9 	evaluation requirements in this subdivision satisfy the requirements for:
339.10 	(1) a diagnostic assessment or crisis assessment under section 245I.10, subdivision 2, 
339.11 	paragraph (a);
339.12 	(2) a diagnostic assessment under section 245I.10, subdivisions 4 to 6;
339.13 	(3) an initial services plan under section 245G.04, subdivision 1;
339.14 	(4) a diagnostic assessment under section 245.4711, subdivision 2;
339.15 	(5) a diagnostic assessment under section 245.4881, subdivision 2;
339.16 	(6) a diagnostic assessment under Minnesota Rules, part 9520.0910, subpart 1;
339.17 	(7) a diagnostic assessment under Minnesota Rules, part 9520.0909, subpart 1; and
339.18 	(8) an individual family community support plan and an individual community support 
339.19 	plan under Minnesota Rules, part 9520.0914, subpart 2, items A and B.
339.20 		Subd. 8.Integrated treatment plan; required elements. (a) An integrated treatment 
339.21 	plan must be approved by a mental health professional as defined in section 245I.04, 
339.22 	subdivision 2.
339.23 	(b) An integrated treatment plan must be completed within 60 calendar days following 
339.24 	the completion of the preliminary screening and risk assessment.
339.25 	(c) An integrated treatment plan must use a person- and family-centered planning process 
339.26 	that includes the client, any family or client-identified natural supports, CCBHC service 
339.27 	providers, and care coordination staff.
339.28 	(d) An integrated treatment plan must be updated at least every six months or earlier 
339.29 	based on changes in the client's circumstances.
340.1 	(e) When a client is engaged in substance use disorder services at a CCBHC, the 
340.2 	integrated treatment plan must also be approved by an alcohol and drug counselor as defined 
340.3 	in section 245G.11, subdivision 5.
340.4 	(f) The treatment plan must integrate prevention, medical and behavioral health needs, 
340.5 	and service delivery and must be developed by the CCBHC in collaboration with and 
340.6 	endorsed by the client, the adult client's family to the extent the client wishes, or family or 
340.7 	caregivers of youth and children. The treatment plan must also be coordinated with staff or 
340.8 	programs necessary to carry out the plan.
340.9 	(g) The CCBHC integrated treatment plan requirements in this subdivision replace the 
340.10 	requirements for:
340.11 	(1) an individual treatment plan under section 245I.10, subdivisions 7 and 8;
340.12 	(2) an individual treatment plan under section 245G.06, subdivision 1; and
340.13 	(3) an individual treatment plan under section 245G.09, subdivision 3, clause (6).
340.14 	(h) The CCBHC functional assessment requirements replace the requirements for:
340.15 	(1) a functional assessment under section 256B.0623, subdivision 9;
340.16 	(2) a functional assessment under section 245.4711, subdivision 3; and
340.17 	(3) functional assessments under Minnesota Rules, part 9520.0914, subpart 2, items A 
340.18 	and B.
340.19 		Subd. 9.Licensing and certification requirements. The requirements for initial 
340.20 	evaluations under subdivision 6, comprehensive evaluations under subdivision 7, and 
340.21 	integrated treatment plans under subdivision 8 are part of the licensing requirements for 
340.22 	substance use disorder treatment programs licensed according to chapter 245G and 
340.23 	certification requirements for mental health clinics certified according to section 245I.20 if 
340.24 	the program or clinic is part of a CCBHC. The Department of Human Services licensing 
340.25 	division will review, inspect, and investigate for compliance with the requirements in 
340.26 	subdivisions 6 to 8.

340.27 	Sec. 8. [245.7356] REQUIRED EVIDENCE-BASED SERVICES.
340.28 		Subdivision 1.Generally. A CCBHC must use evidence-based practices in all services. 
340.29 	Treatments must be provided in a manner appropriate for each client's phase of life and 
340.30 	development, specifically considering what is appropriate for children, adolescents, 
340.31 	transition-age youth, and older adults, as distinct groups for whom life stage and functioning 
340.32 	may affect treatment. Specifically, when treating children and adolescents, a CCHBC must 
341.1 	provide evidence-based services that are developmentally appropriate, youth guided, and 
341.2 	family and caregiver driven. When treating older adults, an individual client's desires and 
341.3 	functioning must be considered, and appropriate evidence-based treatments must be provided. 
341.4 	When treating individuals with developmental or other cognitive disabilities, level of 
341.5 	functioning must be considered, and appropriate evidence-based treatments must be provided. 
341.6 	The treatments referenced in this subdivision must be delivered by staff with specific training 
341.7 	in treating the segment of the population being served.
341.8 		Subd. 2.Required evidence-based practices. A CCBHC must use evidence-based 
341.9 	practices, including the use of cognitive behavioral therapy, motivational interviewing, 
341.10 	stages of change, and trauma treatment appropriate for populations being served.
341.11 		Subd. 3.Issuance of and amendments to evidence-based practices requirements. The 
341.12 	commissioner must issue a list of required evidence-based practices to be delivered by 
341.13 	CCBHCs and may also provide a list of recommended evidence-based practices. The 
341.14 	commissioner may update the list to reflect advances in outcomes research and medical 
341.15 	services for persons living with mental illnesses or substance use disorders. The commissioner 
341.16 	must take into consideration the adequacy of evidence to support the efficacy of the practice, 
341.17 	the quality of workforce available, and the current availability of the practice in the state. 
341.18 	At least 30 days before issuing the initial list and any revisions, the commissioner must 
341.19 	provide stakeholders with an opportunity to comment.

341.20 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
341.21 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
341.22 	when federal approval is obtained.

341.23 	Sec. 9. [245.7357] DESIGNATED COLLABORATING ORGANIZATION.
341.24 		Subdivision 1.Generally. A CCBHC must directly provide a core set of services listed 
341.25 	in section 245.7355, subdivision 2, and may directly provide or contract for the remainder 
341.26 	of the services listed in section 245.7355, subdivision 3, with a designated collaborating 
341.27 	organization as defined in section 245.7351, subdivision 10, that has the required authority 
341.28 	to provide that service and that meets the criteria as a designated collaborating organization 
341.29 	under subdivision 2.
341.30 		Subd. 2.Designated collaborating organization requirements. (a) A CCBHC providing 
341.31 	CCBHC services via a designated collaborating organization agreement must:
342.1 	(1) have a formal agreement, as defined in section 245.7351, subdivision 11, with the 
342.2 	designated collaborating organization to furnish one or more of the allowable services listed 
342.3 	under section 245.7355, subdivision 3;
342.4 	(2) ensure that CCBHC services provided by a designated collaborating organization 
342.5 	must be provided in accordance with CCBHC service standards and provider requirements;
342.6 	(3) maintain responsibility for coordinating care and clinical and financial responsibility 
342.7 	for the services provided by a designated collaborating organization;
342.8 	(4) as applicable and necessary, ensure that a contracted designated collaborating 
342.9 	organization participates in CCBHC care coordination activities, including utilizing health 
342.10 	information technology to facilitate coordination and care transfers across organizations 
342.11 	and arranging access to data necessary for quality and financial operations and reporting;
342.12 	(5) ensure beneficiaries receiving CCBHC services at the designated collaborating 
342.13 	organization have access to the CCBHC grievance process;
342.14 	(6) submit all designated collaborating organization agreements for review and approval 
342.15 	by the commissioner prior to the designated collaborating organization furnishing CCBHC 
342.16 	services; and
342.17 	(7) meet any additional requirements issued by the commissioner.
342.18 	(b) Designated collaborating organization agreements must be submitted during the 
342.19 	certification process. Adding new designated collaborating organization relationships after 
342.20 	initial certification requires updates to the CCBHC certification. A CCBHC must update 
342.21 	designated collaborating organization information and the designated collaborating 
342.22 	organization agreement with the commissioner a minimum of 30 days prior to the execution 
342.23 	of a designated collaborating organization agreement. The commissioner must review and 
342.24 	approve or offer recommendations for designated collaborating organization agreement 
342.25 	modifications
342.26 	(c) Designated collaborating organizations furnishing services under an agreement with 
342.27 	CCBHCs must meet all standards established in sections 245.7351 to 245.7357 for the 
342.28 	service the designated collaborating organization is providing. CCBHCs maintain 
342.29 	responsibility for care coordination and are clinically and financially responsible for CCBHC 
342.30 	services provided by a designated collaborating organization.
342.31 	(d) Designated collaborating organization financial and payment processes must follow 
342.32 	those outlined in section 256B.0625, subdivision 5m, paragraph (c), clause (10).
343.1 		Subd. 3.Designated collaborative organization agreements. Designated collaborative 
343.2 	organization agreements must include:
343.3 	(1) the scope of CCBHC services to be furnished;
343.4 	(2) the payment methodology and rates for purchased services;
343.5 	(3) a requirement that the CCBHC maintains financial and clinical responsibility for 
343.6 	services provided by the designated collaborating organization;
343.7 	(4) a requirement that the CCBHC retains responsibility for care coordination;
343.8 	(5) a requirement that the designated collaborating organization must have the necessary 
343.9 	certifications, licenses, and enrollments to provide the services;
343.10 	(6) a requirement that the staff providing CCBHC services within the designated 
343.11 	collaborating organization must have the proper licensure for the services provided;
343.12 	(7) a requirement that the designated collaborating organization meets CCBHC cultural 
343.13 	competency and training requirements;
343.14 	(8) a requirement that the designated collaborating organization must follow all federal, 
343.15 	state, and CCBHC requirements for confidentiality and data privacy;
343.16 	(9) a requirement that the designated collaborating organization must follow the grievance 
343.17 	procedures of the CCBHC;
343.18 	(10) a requirement that the designated collaborating organization must follow the CCBHC 
343.19 	requirements for person- and family-centered, recovery-oriented care, being respectful of 
343.20 	the individual person's needs, preferences, and values, and ensuring involvement by the 
343.21 	person being served and self-direction of services received. Services for children and youth 
343.22 	must be family-centered, youth-guided, and developmentally appropriate;
343.23 	(11) a requirement that clients seeking services must have freedom of choice of providers;
343.24 	(12) a requirement that the designated collaborating organization must be part of the 
343.25 	CCBHCs health information technology system directly or through data integration;
343.26 	(13) a requirement that the designated collaborating organization must provide all clinical 
343.27 	and financial data necessary to support CCBHC required service and billing operations; 
343.28 	and
343.29 	(14) a requirement that the CCBHC and the designated collaborating organization have 
343.30 	safeguards in place to ensure that the designated collaborating organization does not receive 
343.31 	a duplicate payment for services that are included in the CCBHC's daily bundled rate.

344.1 	EFFECTIVE DATE. This section is effective July 1, 2023, or upon federal approval, 
344.2 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
344.3 	when federal approval is obtained.

344.4 	Sec. 10. Minnesota Statutes 2022, section 245A.02, subdivision 2c, is amended to read:
344.5 		Subd. 2c.Annual or annually; family child care training requirements. For the 
344.6 	purposes of sections 245A.50 to 245A.53, "annual" or "annually" means the 12-month 
344.7 	period beginning on the license effective date or the annual anniversary of the effective date 
344.8 	and ending on the day prior to the annual anniversary of the license effective date each 
344.9 	calendar year.

344.10 	Sec. 11. Minnesota Statutes 2022, section 245A.04, subdivision 1, is amended to read:
344.11 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
344.12 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
344.13 	application must be made on the forms and in the manner prescribed by the commissioner. 
344.14 	The commissioner shall provide the applicant with instruction in completing the application 
344.15 	and provide information about the rules and requirements of other state agencies that affect 
344.16 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
344.17 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
344.18 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
344.19 	this chapter that is owned by another license holder must apply for a license under this 
344.20 	chapter and comply with the application procedures in this section and section 245A.03.
344.21 	The commissioner shall act on the application within 90 working days after a complete 
344.22 	application and any required reports have been received from other state agencies or 
344.23 	departments, counties, municipalities, or other political subdivisions. The commissioner 
344.24 	shall not consider an application to be complete until the commissioner receives all of the 
344.25 	required information.
344.26 	When the commissioner receives an application for initial licensure that is incomplete 
344.27 	because the applicant failed to submit required documents or that is substantially deficient 
344.28 	because the documents submitted do not meet licensing requirements, the commissioner 
344.29 	shall provide the applicant written notice that the application is incomplete or substantially 
344.30 	deficient. In the written notice to the applicant the commissioner shall identify documents 
344.31 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
344.32 	that is substantially complete. An applicant's failure to submit a substantially complete 
345.1 	application after receiving notice from the commissioner is a basis for license denial under 
345.2 	section 245A.05.
345.3 	(b) An application for licensure must identify all controlling individuals as defined in 
345.4 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
345.5 	agent. The application must be signed by the authorized agent and must include the authorized 
345.6 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
345.7 	application for licensure, the authorized agent consents to electronic communication with 
345.8 	the commissioner throughout the application process. The authorized agent must be 
345.9 	authorized to accept service on behalf of all of the controlling individuals. A government 
345.10 	entity that holds multiple licenses under this chapter may designate one authorized agent 
345.11 	for all licenses issued under this chapter or may designate a different authorized agent for 
345.12 	each license. Service on the authorized agent is service on all of the controlling individuals. 
345.13 	It is not a defense to any action arising under this chapter that service was not made on each 
345.14 	controlling individual. The designation of a controlling individual as the authorized agent 
345.15 	under this paragraph does not affect the legal responsibility of any other controlling individual 
345.16 	under this chapter.
345.17 	(c) An applicant or license holder must have a policy that prohibits license holders, 
345.18 	employees, subcontractors, and volunteers, when directly responsible for persons served 
345.19 	by the program, from abusing prescription medication or being in any manner under the 
345.20 	influence of a chemical that impairs the individual's ability to provide services or care. The 
345.21 	license holder must train employees, subcontractors, and volunteers about the program's 
345.22 	drug and alcohol policy.
345.23 	(d) An applicant and license holder must have a program grievance procedure that permits 
345.24 	persons served by the program and their authorized representatives to bring a grievance to 
345.25 	the highest level of authority in the program.
345.26 	(e) The commissioner may limit communication during the application process to the 
345.27 	authorized agent or the controlling individuals identified on the license application and for 
345.28 	whom a background study was initiated under chapter 245C. Upon implementation of the 
345.29 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
345.30 	manner prescribed by the commissioner. The commissioner may require the applicant, 
345.31 	except for child foster care, to demonstrate competence in the applicable licensing 
345.32 	requirements by successfully completing a written examination. The commissioner may 
345.33 	develop a prescribed written examination format.
345.34 	(f) When an applicant is an individual, the applicant must provide:
346.1 	(1) the applicant's taxpayer identification numbers including the Social Security number 
346.2 	or Minnesota tax identification number, and federal employer identification number if the 
346.3 	applicant has employees;
346.4 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
346.5 	of state that includes the complete business name, if any;
346.6 	(3) if doing business under a different name, the doing business as (DBA) name, as 
346.7 	registered with the secretary of state;
346.8 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
346.9 	Minnesota Provider Identifier (UMPI) number; and
346.10 	(5) at the request of the commissioner, the notarized signature of the applicant or 
346.11 	authorized agent.
346.12 	(g) When an applicant is an organization, the applicant must provide:
346.13 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
346.14 	identification number and federal employer identification number;
346.15 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
346.16 	of state that includes the complete business name, and if doing business under a different 
346.17 	name, the doing business as (DBA) name, as registered with the secretary of state;
346.18 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
346.19 	individuals, including all officers, owners, and managerial officials as defined in section 
346.20 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
346.21 	for each controlling individual;
346.22 	(4) if applicable, the applicant's NPI number and UMPI number;
346.23 	(5) the documents that created the organization and that determine the organization's 
346.24 	internal governance and the relations among the persons that own the organization, have 
346.25 	an interest in the organization, or are members of the organization, in each case as provided 
346.26 	or authorized by the organization's governing statute, which may include a partnership 
346.27 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
346.28 	or comparable documents as provided in the organization's governing statute; and
346.29 	(6) the notarized signature of the applicant or authorized agent.
346.30 	(h) When the applicant is a government entity, the applicant must provide:
346.31 	(1) the name of the government agency, political subdivision, or other unit of government 
346.32 	seeking the license and the name of the program or services that will be licensed;
347.1 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
347.2 	identification number and federal employer identification number;
347.3 	(3) a letter signed by the manager, administrator, or other executive of the government 
347.4 	entity authorizing the submission of the license application; and
347.5 	(4) if applicable, the applicant's NPI number and UMPI number.
347.6 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
347.7 	applicant or license holder must acknowledge on the form provided by the commissioner 
347.8 	if the applicant or license holder elects to receive any public funding reimbursement from 
347.9 	the commissioner for services provided under the license that:
347.10 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
347.11 	or registration requirements for receipt of public funding may be monitored by the 
347.12 	commissioner as part of a licensing investigation or licensing inspection; and
347.13 	(2) noncompliance with the provider enrollment agreement or registration requirements 
347.14 	for receipt of public funding that is identified through a licensing investigation or licensing 
347.15 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
347.16 	reimbursement for a service, may result in:
347.17 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
347.18 	section 245A.07;
347.19 	(ii) nonpayment of claims submitted by the license holder for public program 
347.20 	reimbursement;
347.21 	(iii) recovery of payments made for the service;
347.22 	(iv) disenrollment in the public payment program; or
347.23 	(v) other administrative, civil, or criminal penalties as provided by law.

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

347.25 	Sec. 12. Minnesota Statutes 2022, section 245A.04, subdivision 7a, is amended to read:
347.26 		Subd. 7a.Notification required. (a) A license holder must notify the commissioner, in 
347.27 	a manner prescribed by the commissioner, and obtain the commissioner's approval before 
347.28 	making any change that would alter the license information listed under subdivision 7, 
347.29 	paragraph (a).
347.30 	(b) A license holder must also notify the commissioner, in a manner prescribed by the 
347.31 	commissioner, before making any change:
348.1 	(1) to the license holder's authorized agent as defined in section 245A.02, subdivision 
348.2 	3b;
348.3 	(2) to the license holder's controlling individual as defined in section 245A.02, subdivision 
348.4 	5a;
348.5 	(3) to the license holder information on file with the secretary of state;
348.6 	(4) in the location of the program or service licensed under this chapter; and
348.7 	(5) to the federal or state tax identification number associated with the license holder.
348.8 	(c) When, for reasons beyond the license holder's control, a license holder cannot provide 
348.9 	the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the 
348.10 	license holder must notify the commissioner by the tenth business day after the change and 
348.11 	must provide any additional information requested by the commissioner.
348.12 	(d) When a license holder notifies the commissioner of a change to the license holder 
348.13 	information on file with the secretary of state, the license holder must provide amended 
348.14 	articles of incorporation and other documentation of the change.
348.15 	(e) Upon implementation of the provider licensing and reporting hub, license holders 
348.16 	must enter and update information in the hub in a manner prescribed by the commissioner.

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

348.18 	Sec. 13. Minnesota Statutes 2022, section 245A.05, is amended to read:
348.19 	245A.05 DENIAL OF APPLICATION.
348.20 	(a) The commissioner may deny a license if an applicant or controlling individual:
348.21 	(1) fails to submit a substantially complete application after receiving notice from the 
348.22 	commissioner under section 245A.04, subdivision 1;
348.23 	(2) fails to comply with applicable laws or rules;
348.24 	(3) knowingly withholds relevant information from or gives false or misleading 
348.25 	information to the commissioner in connection with an application for a license or during 
348.26 	an investigation;
348.27 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
348.28 	variance has been granted;
349.1 	(5) has an individual living in the household who received a background study under 
349.2 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
349.3 	has not been set aside under section 245C.22, and no variance has been granted;
349.4 	(6) is associated with an individual who received a background study under section 
349.5 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
349.6 	children or vulnerable adults, and who has a disqualification that has not been set aside 
349.7 	under section 245C.22, and no variance has been granted;
349.8 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
349.9 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
349.10 	6;
349.11 	(9) has a history of noncompliance as a license holder or controlling individual with 
349.12 	applicable laws or rules, including but not limited to this chapter and chapters 119B and 
349.13 	245C;
349.14 	(10) is prohibited from holding a license according to section 245.095; or
349.15 	(11) for a family foster setting, has nondisqualifying background study information, as 
349.16 	described in section 245C.05, subdivision 4, that reflects on the individual's ability to safely 
349.17 	provide care to foster children.
349.18 	(b) An applicant whose application has been denied by the commissioner must be given 
349.19 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
349.20 	must be given by certified mail or, by personal service, or through the provider licensing 
349.21 	and reporting hub. The notice must state the reasons the application was denied and must 
349.22 	inform the applicant of the right to a contested case hearing under chapter 14 and Minnesota 
349.23 	Rules, parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
349.24 	commissioner in writing by certified mail or, by personal service, or through the provider 
349.25 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
349.26 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
349.27 	an appeal request is made by personal service, it must be received by the commissioner 
349.28 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
349.29 	through the provider hub, the appeal must be received by the commissioner within 20 
349.30 	calendar days from the date the commissioner issued the order through the hub. Section 
349.31 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

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

350.1 	Sec. 14. Minnesota Statutes 2022, section 245A.055, subdivision 2, is amended to read:
350.2 		Subd. 2.Reconsideration of closure. If a license is closed, the commissioner must 
350.3 	notify the license holder of closure by certified mail or, by personal service, or through the 
350.4 	provider licensing and reporting hub. If mailed, the notice of closure must be mailed to the 
350.5 	last known address of the license holder and must inform the license holder why the license 
350.6 	was closed and that the license holder has the right to request reconsideration of the closure. 
350.7 	If the license holder believes that the license was closed in error, the license holder may ask 
350.8 	the commissioner to reconsider the closure. The license holder's request for reconsideration 
350.9 	must be made in writing and must include documentation that the licensed program has 
350.10 	served a client in the previous 12 months. The request for reconsideration must be postmarked 
350.11 	and sent to the commissioner or submitted through the provider licensing and reporting hub 
350.12 	within 20 calendar days after the license holder receives the notice of closure. Upon 
350.13 	implementation of the provider licensing and reporting hub, the provider must use the hub 
350.14 	to request reconsideration. If the order is issued through the provider hub, the reconsideration 
350.15 	must be received by the commissioner within 20 calendar days from the date the 
350.16 	commissioner issued the order through the hub. A timely request for reconsideration stays 
350.17 	imposition of the license closure until the commissioner issues a decision on the request for 
350.18 	reconsideration.

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

350.20 	Sec. 15. Minnesota Statutes 2022, section 245A.06, subdivision 1, is amended to read:
350.21 		Subdivision 1.Contents of correction orders and conditional licenses. (a) If the 
350.22 	commissioner finds that the applicant or license holder has failed to comply with an 
350.23 	applicable law or rule and this failure does not imminently endanger the health, safety, or 
350.24 	rights of the persons served by the program, the commissioner may issue a correction order 
350.25 	and an order of conditional license to the applicant or license holder. When issuing a 
350.26 	conditional license, the commissioner shall consider the nature, chronicity, or severity of 
350.27 	the violation of law or rule and the effect of the violation on the health, safety, or rights of 
350.28 	persons served by the program. The correction order or conditional license must state the 
350.29 	following in plain language:
350.30 	(1) the conditions that constitute a violation of the law or rule;
350.31 	(2) the specific law or rule violated;
350.32 	(3) the time allowed to correct each violation; and
351.1 	(4) if a license is made conditional, the length and terms of the conditional license, and 
351.2 	the reasons for making the license conditional.
351.3 	(b) Nothing in this section prohibits the commissioner from proposing a sanction as 
351.4 	specified in section 245A.07, prior to issuing a correction order or conditional license.
351.5 	(c) The commissioner may issue a correction order and an order of conditional license 
351.6 	to the applicant or license holder through the provider licensing and reporting hub.

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

351.8 	Sec. 16. Minnesota Statutes 2022, section 245A.06, subdivision 2, is amended to read:
351.9 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
351.10 	believes that the contents of the commissioner's correction order are in error, the applicant 
351.11 	or license holder may ask the Department of Human Services to reconsider the parts of the 
351.12 	correction order that are alleged to be in error. The request for reconsideration must be made 
351.13 	in writing and must be postmarked and sent to the commissioner within 20 calendar days 
351.14 	after receipt of the correction order or submitted in the provider licensing and reporting hub 
351.15 	within 20 calendar days from the date the commissioner issued the order through the hub
351.16 	by the applicant or license holder, and:
351.17 	(1) specify the parts of the correction order that are alleged to be in error;
351.18 	(2) explain why they are in error; and
351.19 	(3) include documentation to support the allegation of error.
351.20 	Upon implementation of the provider licensing and reporting hub, the provider must use 
351.21 	the hub to request reconsideration. A request for reconsideration does not stay any provisions 
351.22 	or requirements of the correction order. The commissioner's disposition of a request for 
351.23 	reconsideration is final and not subject to appeal under chapter 14.
351.24 	(b) This paragraph applies only to licensed family child care providers. A licensed family 
351.25 	child care provider who requests reconsideration of a correction order under paragraph (a) 
351.26 	may also request, on a form and in the manner prescribed by the commissioner, that the 
351.27 	commissioner expedite the review if:
351.28 	(1) the provider is challenging a violation and provides a description of how complying 
351.29 	with the corrective action for that violation would require the substantial expenditure of 
351.30 	funds or a significant change to their program; and
352.1 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
352.2 	to ensure the health and safety of children in care pending the commissioner's review of the 
352.3 	correction order.

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

352.5 	Sec. 17. Minnesota Statutes 2022, section 245A.06, subdivision 4, is amended to read:
352.6 		Subd. 4.Notice of conditional license; reconsideration of conditional license. (a) If 
352.7 	a license is made conditional, the license holder must be notified of the order by certified 
352.8 	mail or, by personal service, or through the provider licensing and reporting hub. If mailed, 
352.9 	the notice must be mailed to the address shown on the application or the last known address 
352.10 	of the license holder. The notice must state the reasons the conditional license was ordered 
352.11 	and must inform the license holder of the right to request reconsideration of the conditional 
352.12 	license by the commissioner. The license holder may request reconsideration of the order 
352.13 	of conditional license by notifying the commissioner by certified mail or, by personal service, 
352.14 	or through the provider licensing and reporting hub. The request must be made in writing. 
352.15 	If sent by certified mail, the request must be postmarked and sent to the commissioner within 
352.16 	ten calendar days after the license holder received the order. If a request is made by personal 
352.17 	service, it must be received by the commissioner within ten calendar days after the license 
352.18 	holder received the order. If the order is issued through the provider hub, the request must 
352.19 	be received by the commissioner within ten calendar days from the date the commissioner 
352.20 	issued the order through the hub. The license holder may submit with the request for 
352.21 	reconsideration written argument or evidence in support of the request for reconsideration. 
352.22 	A timely request for reconsideration shall stay imposition of the terms of the conditional 
352.23 	license until the commissioner issues a decision on the request for reconsideration. If the 
352.24 	commissioner issues a dual order of conditional license under this section and an order to 
352.25 	pay a fine under section 245A.07, subdivision 3, the license holder has a right to a contested 
352.26 	case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The 
352.27 	scope of the contested case hearing shall include the fine and the conditional license. In this 
352.28 	case, a reconsideration of the conditional license will not be conducted under this section. 
352.29 	If the license holder does not appeal the fine, the license holder does not have a right to a 
352.30 	contested case hearing and a reconsideration of the conditional license must be conducted 
352.31 	under this subdivision.
352.32 	(b) The commissioner's disposition of a request for reconsideration is final and not 
352.33 	subject to appeal under chapter 14.

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

353.1 	Sec. 18. Minnesota Statutes 2022, section 245A.07, subdivision 3, is amended to read:
353.2 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
353.3 	or revoke a license, or impose a fine if:
353.4 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
353.5 	limited to the requirements of this chapter and chapter 245C;
353.6 	(2) a license holder, a controlling individual, or an individual living in the household 
353.7 	where the licensed services are provided or is otherwise subject to a background study has 
353.8 	been disqualified and the disqualification was not set aside and no variance has been granted;
353.9 	(3) a license holder knowingly withholds relevant information from or gives false or 
353.10 	misleading information to the commissioner in connection with an application for a license, 
353.11 	in connection with the background study status of an individual, during an investigation, 
353.12 	or regarding compliance with applicable laws or rules;
353.13 	(4) a license holder is excluded from any program administered by the commissioner 
353.14 	under section 245.095; or
353.15 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d).
353.16 	A license holder who has had a license issued under this chapter suspended, revoked, 
353.17 	or has been ordered to pay a fine must be given notice of the action by certified mail or, by
353.18 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
353.19 	must be mailed to the address shown on the application or the last known address of the 
353.20 	license holder. The notice must state in plain language the reasons the license was suspended 
353.21 	or revoked, or a fine was ordered.
353.22 	(b) If the license was suspended or revoked, the notice must inform the license holder 
353.23 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
353.24 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
353.25 	a license. The appeal of an order suspending or revoking a license must be made in writing 
353.26 	by certified mail or, by personal service, or through the provider licensing and reporting 
353.27 	hub. If mailed, the appeal must be postmarked and sent to the commissioner within ten 
353.28 	calendar days after the license holder receives notice that the license has been suspended 
353.29 	or revoked. If a request is made by personal service, it must be received by the commissioner 
353.30 	within ten calendar days after the license holder received the order. If the order is issued 
353.31 	through the provider hub, the appeal must be received by the commissioner within ten 
353.32 	calendar days from the date the commissioner issued the order through the hub. Except as 
353.33 	provided in subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an 
354.1 	order suspending or revoking a license, the license holder may continue to operate the 
354.2 	program as provided in section 245A.04, subdivision 7, paragraphs (f) and (g), until the 
354.3 	commissioner issues a final order on the suspension or revocation.
354.4 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
354.5 	holder of the responsibility for payment of fines and the right to a contested case hearing 
354.6 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
354.7 	order to pay a fine must be made in writing by certified mail or, by personal service, or 
354.8 	through the provider licensing and reporting hub. If mailed, the appeal must be postmarked 
354.9 	and sent to the commissioner within ten calendar days after the license holder receives 
354.10 	notice that the fine has been ordered. If a request is made by personal service, it must be 
354.11 	received by the commissioner within ten calendar days after the license holder received the 
354.12 	order. If the order is issued through the provider hub, the appeal must be received by the 
354.13 	commissioner within ten calendar days from the date the commissioner issued the order 
354.14 	through the hub.
354.15 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
354.16 	If the license holder fails to fully comply with the order, the commissioner may issue a 
354.17 	second fine or suspend the license until the license holder complies. If the license holder 
354.18 	receives state funds, the state, county, or municipal agencies or departments responsible for 
354.19 	administering the funds shall withhold payments and recover any payments made while the 
354.20 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
354.21 	until the commissioner issues a final order.
354.22 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
354.23 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
354.24 	commissioner determines that a violation has not been corrected as indicated by the order 
354.25 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
354.26 	the license holder by certified mail or, by personal service, or through the provider licensing 
354.27 	and reporting hub that a second fine has been assessed. The license holder may appeal the 
354.28 	second fine as provided under this subdivision.
354.29 	(4) Fines shall be assessed as follows:
354.30 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
354.31 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
354.32 	for which the license holder is determined responsible for the maltreatment under section 
354.33 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
355.1 	(ii) if the commissioner determines that a determination of maltreatment for which the 
355.2 	license holder is responsible is the result of maltreatment that meets the definition of serious 
355.3 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
355.4 	$5,000;
355.5 	(iii) for a program that operates out of the license holder's home and a program licensed 
355.6 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
355.7 	holder shall not exceed $1,000 for each determination of maltreatment;
355.8 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
355.9 	governing matters of health, safety, or supervision, including but not limited to the provision 
355.10 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
355.11 	requirements under chapter 245C; and
355.12 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
355.13 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
355.14 	For purposes of this section, "occurrence" means each violation identified in the 
355.15 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
355.16 	provide home and community-based services, as identified in section 245D.03, subdivision 
355.17 	1, and a community residential setting or day services facility license under chapter 245D 
355.18 	where the services are provided, may be assessed against both licenses for the same 
355.19 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
355.20 	this clause for that occurrence.
355.21 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
355.22 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
355.23 	license holder will be personally liable for payment. In the case of a corporation, each 
355.24 	controlling individual is personally and jointly liable for payment.
355.25 	(d) Except for background study violations involving the failure to comply with an order 
355.26 	to immediately remove an individual or an order to provide continuous, direct supervision, 
355.27 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
355.28 	violation to a license holder who self-corrects a background study violation before the 
355.29 	commissioner discovers the violation. A license holder who has previously exercised the 
355.30 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
355.31 	a fine for a subsequent background study violation unless at least 365 days have passed 
355.32 	since the license holder self-corrected the earlier background study violation.

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

356.1 	Sec. 19. Minnesota Statutes 2022, section 245A.16, is amended by adding a subdivision 
356.2 	to read:
356.3 		Subd. 10.Licensing and reporting hub. Upon implementation of the provider licensing 
356.4 	and reporting hub, county staff who perform licensing functions must use the hub in the 
356.5 	manner prescribed by the commissioner.

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

356.7 	Sec. 20. Minnesota Statutes 2022, section 245A.50, subdivision 3, is amended to read:
356.8 		Subd. 3.First aid. (a) Before initial licensure and before caring for a child, license 
356.9 	holders, second adult caregivers, and substitutes must be trained in pediatric first aid. The 
356.10 	first aid training must have been provided by an individual approved to provide first aid 
356.11 	instruction. First aid training may be less than eight hours and persons qualified to provide 
356.12 	first aid training include individuals approved as first aid instructors. License holders, second 
356.13 	adult caregivers, and substitutes must repeat pediatric first aid training every two years. 
356.14 	When the training expires, it must be retaken no later than the day before the anniversary 
356.15 	of the license holder's license effective date. License holders, second adult caregivers, and 
356.16 	substitutes must not let the training expire.
356.17 	(b) Video training reviewed and approved by the county licensing agency satisfies the 
356.18 	training requirement of this subdivision.

356.19 	Sec. 21. Minnesota Statutes 2022, section 245A.50, subdivision 4, is amended to read:
356.20 		Subd. 4.Cardiopulmonary resuscitation. (a) Before initial licensure and before caring 
356.21 	for a child, license holders, second adult caregivers, and substitutes must be trained in 
356.22 	pediatric cardiopulmonary resuscitation (CPR), including CPR techniques for infants and 
356.23 	children, and in the treatment of obstructed airways. The CPR training must have been 
356.24 	provided by an individual approved to provide CPR instruction. License holders, second 
356.25 	adult caregivers, and substitutes must repeat pediatric CPR training at least once every two 
356.26 	years and must document the training in the license holder's records. When the training 
356.27 	expires, it must be retaken no later than the day before the anniversary of the license holder's 
356.28 	license effective date. License holders, second adult caregivers, and substitutes must not let 
356.29 	the training expire.
356.30 	(b) Persons providing CPR training must use CPR training that has been developed:
356.31 	(1) by the American Heart Association or the American Red Cross and incorporates 
356.32 	psychomotor skills to support the instruction; or
357.1 	(2) using nationally recognized, evidence-based guidelines for CPR training and 
357.2 	incorporates psychomotor skills to support the instruction.

357.3 	Sec. 22. Minnesota Statutes 2022, section 245A.50, subdivision 5, is amended to read:
357.4 		Subd. 5.Sudden unexpected infant death and abusive head trauma training. (a) 
357.5 	License holders must ensure and document that before the license holder, second adult 
357.6 	caregivers, substitutes, and helpers assist in the care of infants, they are instructed on the 
357.7 	standards in section 245A.1435 and receive training on reducing the risk of sudden 
357.8 	unexpected infant death. In addition, license holders must ensure and document that before 
357.9 	the license holder, second adult caregivers, substitutes, and helpers assist in the care of 
357.10 	infants and children under school age, they receive training on reducing the risk of abusive 
357.11 	head trauma from shaking infants and young children. The training in this subdivision may 
357.12 	be provided as initial training under subdivision 1 or ongoing annual training under 
357.13 	subdivision 7.
357.14 	(b) Sudden unexpected infant death reduction training required under this subdivision 
357.15 	must, at a minimum, address the risk factors related to sudden unexpected infant death, 
357.16 	means of reducing the risk of sudden unexpected infant death in child care, and license 
357.17 	holder communication with parents regarding reducing the risk of sudden unexpected infant 
357.18 	death.
357.19 	(c) Abusive head trauma training required under this subdivision must, at a minimum, 
357.20 	address the risk factors related to shaking infants and young children, means of reducing 
357.21 	the risk of abusive head trauma in child care, and license holder communication with parents 
357.22 	regarding reducing the risk of abusive head trauma.
357.23 	(d) Training for family and group family child care providers must be developed by the 
357.24 	commissioner in conjunction with the Minnesota Sudden Infant Death Center and approved 
357.25 	by the Minnesota Center for Professional Development. Sudden unexpected infant death 
357.26 	reduction training and abusive head trauma training may be provided in a single course of 
357.27 	no more than two hours in length.
357.28 	(e) Sudden unexpected infant death reduction training and abusive head trauma training 
357.29 	required under this subdivision must be completed in person or as allowed under subdivision 
357.30 	10, clause (1) or (2), at least once every two years. When the training expires, it must be 
357.31 	retaken no later than the day before the anniversary of the license holder's license effective 
357.32 	date. On the years when the individual receiving training is not receiving training in person 
357.33 	or as allowed under subdivision 10, clause (1) or (2), the individual receiving training in 
357.34 	accordance with this subdivision must receive sudden unexpected infant death reduction 
358.1 	training and abusive head trauma training through a video of no more than one hour in 
358.2 	length. The video must be developed or approved by the commissioner.
358.3 	(f) An individual who is related to the license holder as defined in section 245A.02, 
358.4 	subdivision 13, and who is involved only in the care of the license holder's own infant or 
358.5 	child under school age and who is not designated to be a second adult caregiver, helper, or 
358.6 	substitute for the licensed program, is exempt from the sudden unexpected infant death and 
358.7 	abusive head trauma training.

358.8 	Sec. 23. Minnesota Statutes 2022, section 245A.50, subdivision 6, is amended to read:
358.9 		Subd. 6.Child passenger restraint systems; training requirement. (a) A license 
358.10 	holder must comply with all seat belt and child passenger restraint system requirements 
358.11 	under section 169.685.
358.12 	(b) Family and group family child care programs licensed by the Department of Human 
358.13 	Services that serve a child or children under eight years of age must document training that 
358.14 	fulfills the requirements in this subdivision.
358.15 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
358.16 	child or children under age eight in a motor vehicle, the person placing the child or children 
358.17 	in a passenger restraint must satisfactorily complete training on the proper use and installation 
358.18 	of child restraint systems in motor vehicles. Training completed under this subdivision may 
358.19 	be used to meet initial training under subdivision 1 or ongoing training under subdivision 
358.20 	7.
358.21 	(2) Training required under this subdivision must be at least one hour in length, completed 
358.22 	at initial training, and repeated at least once every five years. When the training expires, it 
358.23 	must be retaken no later than the day before the anniversary of the license holder's license 
358.24 	effective date. At a minimum, the training must address the proper use of child restraint 
358.25 	systems based on the child's size, weight, and age, and the proper installation of a car seat 
358.26 	or booster seat in the motor vehicle used by the license holder to transport the child or 
358.27 	children.
358.28 	(3) Training under this subdivision must be provided by individuals who are certified 
358.29 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
358.30 	may obtain a list of certified and approved trainers through the Department of Public Safety 
358.31 	website or by contacting the agency.
359.1 	(c) Child care providers that only transport school-age children as defined in section 
359.2 	245A.02, subdivision 19, paragraph (f), in child care buses as defined in section 169.448, 
359.3 	subdivision 1, paragraph (e), are exempt from this subdivision.

359.4 	Sec. 24. Minnesota Statutes 2022, section 245A.50, subdivision 9, is amended to read:
359.5 		Subd. 9.Supervising for safety; training requirement. (a) Courses required by this 
359.6 	subdivision must include the following health and safety topics:
359.7 	(1) preventing and controlling infectious diseases;
359.8 	(2) administering medication;
359.9 	(3) preventing and responding to allergies;
359.10 	(4) ensuring building and physical premises safety;
359.11 	(5) handling and storing biological contaminants;
359.12 	(6) preventing and reporting child abuse and maltreatment; and
359.13 	(7) emergency preparedness.
359.14 	(b) Before initial licensure and before caring for a child, all family child care license 
359.15 	holders and each second adult caregiver shall complete and document the completion of 
359.16 	the six-hour Supervising for Safety for Family Child Care course developed by the 
359.17 	commissioner.
359.18 	(c) The license holder must ensure and document that, before caring for a child, all 
359.19 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
359.20 	Substitutes course developed by the commissioner, which must include health and safety 
359.21 	topics as well as child development and learning.
359.22 	(d) The family child care license holder and each second adult caregiver shall complete 
359.23 	and document:
359.24 	(1) the annual completion of either:
359.25 	(i) a two-hour active supervision course developed by the commissioner; or
359.26 	(ii) any courses in the ensuring safety competency area under the health, safety, and 
359.27 	nutrition standard of the Knowledge and Competency Framework that the commissioner 
359.28 	has identified as an active supervision training course; and
359.29 	(2) the completion at least once every five years of the two-hour courses Health and 
359.30 	Safety I and Health and Safety II. When the training is due for the first time or expires, it 
360.1 	must be taken no later than the day before the anniversary of the license holder's license 
360.2 	effective date. A license holder's or second adult caregiver's completion of either training 
360.3 	in a given year meets the annual active supervision training requirement in clause (1).
360.4 	(e) At least once every three years, license holders must ensure and document that 
360.5 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
360.6 	Substitutes course. When the training expires, it must be retaken no later than the day before 
360.7 	the anniversary of the license holder's license effective date.

360.8 	Sec. 25. Minnesota Statutes 2022, section 245E.06, subdivision 3, is amended to read:
360.9 		Subd. 3.Appeal of department action. A provider's rights related to the department's 
360.10 	action taken under this chapter against a provider are established in sections 119B.16and,
360.11 	119B.161, and 245.095, subdivision 4.

360.12 	Sec. 26. Minnesota Statutes 2022, section 245G.03, subdivision 1, is amended to read:
360.13 		Subdivision 1.License requirements. (a) An applicant for a license to provide substance 
360.14 	use disorder treatment must comply with the general requirements in section 626.557; 
360.15 	chapters 245A, 245C, and 260E; and Minnesota Rules, chapter 9544.
360.16 	(b) The commissioner may grant variances to the requirements in this chapter that do 
360.17 	not affect the client's health or safety if the conditions in section 245A.04, subdivision 9, 
360.18 	are met.
360.19 	(c) If a program is licensed according to this chapter and is part of a certified community 
360.20 	behavioral health clinic under sections 245.7351 to 245.7357, the license holder must comply 
360.21 	with the requirements in section 245.7355, subdivisions 6 to 9, as part of the licensing 
360.22 	requirements under this chapter.

360.23 	Sec. 27. Minnesota Statutes 2022, section 245H.01, is amended by adding a subdivision 
360.24 	to read:
360.25 		Subd. 2a.Authorized agent. "Authorized agent" means the individual designated by 
360.26 	the certification holder who is responsible for communicating with the commissioner of 
360.27 	human services regarding all items pursuant to this chapter.

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

361.1 	Sec. 28. Minnesota Statutes 2022, section 245H.01, subdivision 3, is amended to read:
361.2 		Subd. 3.Center operator or program operator. "Center operator" or "program operator" 
361.3 	means the person exercising supervision or control over the center's or program's operations, 
361.4 	planning, and functioning. There may be more than one designated center operator or 
361.5 	program operator.

361.6 	Sec. 29. Minnesota Statutes 2022, section 245H.03, subdivision 2, is amended to read:
361.7 		Subd. 2.Application submission. The commissioner shall provide application 
361.8 	instructions and information about the rules and requirements of other state agencies that 
361.9 	affect the applicant. The certification application must be submitted in a manner prescribed 
361.10 	by the commissioner. Upon implementation of the provider licensing and reporting hub, 
361.11 	applicants must use the hub in the manner prescribed by the commissioner. The commissioner 
361.12 	shall act on the application within 90 working days of receiving a completed application.

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

361.14 	Sec. 30. Minnesota Statutes 2022, section 245H.03, subdivision 4, is amended to read:
361.15 		Subd. 4.Reconsideration of certification denial. (a) The applicant may request 
361.16 	reconsideration of the denial by notifying the commissioner by certified mail or, by personal 
361.17 	service, or through the provider licensing and reporting hub. The request must be made in 
361.18 	writing. If sent by certified mail, the request must be postmarked and sent to the 
361.19 	commissioner within 20 calendar days after the applicant received the order. If a request is 
361.20 	made by personal service, it must be received by the commissioner within 20 calendar days 
361.21 	after the applicant received the order. If the order is issued through the provider hub, the 
361.22 	request must be received by the commissioner within 20 calendar days from the date the 
361.23 	commissioner issued the order through the hub. The applicant may submit with the request 
361.24 	for reconsideration a written argument or evidence in support of the request for 
361.25 	reconsideration.
361.26 	(b) The commissioner's disposition of a request for reconsideration is final and not 
361.27 	subject to appeal under chapter 14.

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

362.1 	Sec. 31. Minnesota Statutes 2022, section 245H.06, subdivision 1, is amended to read:
362.2 		Subdivision 1.Correction order requirements. (a) If the applicant or certification 
362.3 	holder failed to comply with a law or rule, the commissioner may issue a correction order. 
362.4 	The correction order must state:
362.5 	(1) the condition that constitutes a violation of the law or rule;
362.6 	(2) the specific law or rule violated; and
362.7 	(3) the time allowed to correct each violation.
362.8 	(b) The commissioner may issue a correction order to the applicant or certification holder 
362.9 	through the provider licensing and reporting hub.

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

362.11 	Sec. 32. Minnesota Statutes 2022, section 245H.06, subdivision 2, is amended to read:
362.12 		Subd. 2.Reconsideration request. (a) If the applicant or certification holder believes 
362.13 	that the commissioner's correction order is erroneous, the applicant or certification holder 
362.14 	may ask the commissioner to reconsider the part of the correction order that is allegedly 
362.15 	erroneous. A request for reconsideration must be made in writing, and postmarked, or 
362.16 	submitted through the provider licensing and reporting hub, and sent to the commissioner 
362.17 	within 20 calendar days after the applicant or certification holder received the correction 
362.18 	order, and must:
362.19 	(1) specify the part of the correction order that is allegedly erroneous;
362.20 	(2) explain why the specified part is erroneous; and
362.21 	(3) include documentation to support the allegation of error.
362.22 	(b) A request for reconsideration does not stay any provision or requirement of the 
362.23 	correction order. The commissioner's disposition of a request for reconsideration is final 
362.24 	and not subject to appeal.
362.25 	(c) Upon implementation of the provider licensing and reporting hub, the provider must 
362.26 	use the hub to request reconsideration. If the order is issued through the provider hub, the 
362.27 	request must be received by the commissioner within 20 calendar days from the date the 
362.28 	commissioner issued the order through the hub.

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

363.1 	Sec. 33. Minnesota Statutes 2022, section 245H.07, subdivision 1, is amended to read:
363.2 		Subdivision 1.Generally. (a) The commissioner may decertify a center if a certification 
363.3 	holder:
363.4 	(1) failed to comply with an applicable law or rule;
363.5 	(2) knowingly withheld relevant information from or gave false or misleading information 
363.6 	to the commissioner in connection with an application for certification, in connection with 
363.7 	the background study status of an individual, during an investigation, or regarding compliance 
363.8 	with applicable laws or rules; or
363.9 	(3) has authorization to receive child care assistance payments revoked pursuant to 
363.10 	chapter 119B.
363.11 	(b) When considering decertification, the commissioner shall consider the nature, 
363.12 	chronicity, or severity of the violation of law or rule.
363.13 	(c) When a center is decertified, the center is ineligible to receive a child care assistance 
363.14 	payment under chapter 119B.
363.15 	(d) The commissioner may issue a decertification order to a certification holder through 
363.16 	the provider licensing and reporting hub.

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

363.18 	Sec. 34. Minnesota Statutes 2022, section 245H.07, subdivision 2, is amended to read:
363.19 		Subd. 2.Reconsideration of decertification. (a) The certification holder may request 
363.20 	reconsideration of the decertification by notifying the commissioner by certified mail or, 
363.21 	by personal service, or through the provider licensing and reporting hub. The request must 
363.22 	be made in writing. If sent by certified mail, the request must be postmarked and sent to the 
363.23 	commissioner within 20 calendar days after the certification holder received the order. If a 
363.24 	request is made by personal service, it must be received by the commissioner within 20 
363.25 	calendar days after the certification holder received the order. If the order is issued through 
363.26 	the provider hub, the request must be received by the commissioner within 20 calendar days 
363.27 	from the date the commissioner issued the order through the hub. With the request for 
363.28 	reconsideration, the certification holder may submit a written argument or evidence in 
363.29 	support of the request for reconsideration.
363.30 	(b) The commissioner's disposition of a request for reconsideration is final and not 
363.31 	subject to appeal under chapter 14.

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

364.1 	Sec. 35. Minnesota Statutes 2022, section 245I.011, subdivision 3, is amended to read:
364.2 		Subd. 3.Certification required. (a) An individual, organization, or government entity 
364.3 	that is exempt from licensure under section 245A.03, subdivision 2, paragraph (a), clause 
364.4 	(19), and chooses to be identified as a certified mental health clinic must:
364.5 	(1) be a mental health clinic that is certified under section 245I.20;
364.6 	(2) comply with all of the responsibilities assigned to a license holder by this chapter 
364.7 	except subdivision 1; and
364.8 	(3) comply with all of the responsibilities assigned to a certification holder by chapter 
364.9 	245A.
364.10 	(b) An individual, organization, or government entity described by this subdivision must 
364.11 	obtain a criminal background study for each staff person or volunteer who provides direct 
364.12 	contact services to clients.
364.13 	(c) If a program is licensed according to this chapter and is part of a certified community 
364.14 	behavioral health clinic under sections 245.7351 to 245.7357, the license holder must comply 
364.15 	with the requirements in section 245.7355, subdivisions 6 to 9, as part of the licensing 
364.16 	requirements under this chapter.

364.17 	Sec. 36. Minnesota Statutes 2022, section 245I.20, subdivision 10, is amended to read:
364.18 		Subd. 10.Application procedures. (a) The applicant for certification must submit any 
364.19 	documents that the commissioner requires on forms approved by the commissioner. Upon 
364.20 	implementation of the provider licensing and reporting hub, applicants must use the hub in 
364.21 	the manner prescribed by the commissioner.
364.22 	(b) Upon submitting an application for certification, an applicant must pay the application 
364.23 	fee required by section 245A.10, subdivision 3.
364.24 	(c) The commissioner must act on an application within 90 working days of receiving 
364.25 	a completed application.
364.26 	(d) When the commissioner receives an application for initial certification that is 
364.27 	incomplete because the applicant failed to submit required documents or is deficient because 
364.28 	the submitted documents do not meet certification requirements, the commissioner must 
364.29 	provide the applicant with written notice that the application is incomplete or deficient. In 
364.30 	the notice, the commissioner must identify the particular documents that are missing or 
364.31 	deficient and give the applicant 45 days to submit a second application that is complete. An 
365.1 	applicant's failure to submit a complete application within 45 days after receiving notice 
365.2 	from the commissioner is a basis for certification denial.
365.3 	(e) The commissioner must give notice of a denial to an applicant when the commissioner 
365.4 	has made the decision to deny the certification application. In the notice of denial, the 
365.5 	commissioner must state the reasons for the denial in plain language. The commissioner 
365.6 	must send or deliver the notice of denial to an applicant by certified mail or, by personal 
365.7 	service or through the provider licensing and reporting hub. In the notice of denial, the 
365.8 	commissioner must state the reasons that the commissioner denied the application and must 
365.9 	inform the applicant of the applicant's right to request a contested case hearing under chapter 
365.10 	14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may appeal the denial 
365.11 	by notifying the commissioner in writing by certified mail or, by personal service, or through 
365.12 	the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent 
365.13 	to the commissioner within 20 calendar days after the applicant received the notice of denial. 
365.14 	If an applicant delivers an appeal by personal service, the commissioner must receive the 
365.15 	appeal within 20 calendar days after the applicant received the notice of denial. If the order 
365.16 	is issued through the provider hub, the request must be received by the commissioner within 
365.17 	20 calendar days from the date the commissioner issued the order through the hub.

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

365.19 	Sec. 37. Minnesota Statutes 2022, section 245I.20, subdivision 13, is amended to read:
365.20 		Subd. 13.Correction orders. (a) If the applicant or certification holder fails to comply 
365.21 	with a law or rule, the commissioner may issue a correction order. The correction order 
365.22 	must state:
365.23 	(1) the condition that constitutes a violation of the law or rule;
365.24 	(2) the specific law or rule that the applicant or certification holder has violated; and
365.25 	(3) the time that the applicant or certification holder is allowed to correct each violation.
365.26 	(b) If the applicant or certification holder believes that the commissioner's correction 
365.27 	order is erroneous, the applicant or certification holder may ask the commissioner to 
365.28 	reconsider the part of the correction order that is allegedly erroneous. An applicant or 
365.29 	certification holder must make a request for reconsideration in writing. The request must 
365.30 	be postmarked and sent to the commissioner or submitted in the provider licensing and 
365.31 	reporting hub within 20 calendar days after the applicant or certification holder received 
365.32 	the correction order; and the request must:
365.33 	(1) specify the part of the correction order that is allegedly erroneous;
366.1 	(2) explain why the specified part is erroneous; and
366.2 	(3) include documentation to support the allegation of error.
366.3 	(c) A request for reconsideration does not stay any provision or requirement of the 
366.4 	correction order. The commissioner's disposition of a request for reconsideration is final 
366.5 	and not subject to appeal.
366.6 	(d) If the commissioner finds that the applicant or certification holder failed to correct 
366.7 	the violation specified in the correction order, the commissioner may decertify the certified 
366.8 	mental health clinic according to subdivision 14.
366.9 	(e) Nothing in this subdivision prohibits the commissioner from decertifying a mental 
366.10 	health clinic according to subdivision 14.
366.11 	(f) The commissioner may issue a correction order to the applicant or certification holder 
366.12 	through the provider licensing and reporting hub. If the order is issued through the provider 
366.13 	hub, the request must be received by the commissioner within 20 calendar days from the 
366.14 	date the commissioner issued the order through the hub.

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

366.16 	Sec. 38. Minnesota Statutes 2022, section 245I.20, subdivision 14, is amended to read:
366.17 		Subd. 14.Decertification. (a) The commissioner may decertify a mental health clinic 
366.18 	if a certification holder:
366.19 	(1) failed to comply with an applicable law or rule; or
366.20 	(2) knowingly withheld relevant information from or gave false or misleading information 
366.21 	to the commissioner in connection with an application for certification, during an 
366.22 	investigation, or regarding compliance with applicable laws or rules.
366.23 	(b) When considering decertification of a mental health clinic, the commissioner must 
366.24 	consider the nature, chronicity, or severity of the violation of law or rule and the effect of 
366.25 	the violation on the health, safety, or rights of clients.
366.26 	(c) If the commissioner decertifies a mental health clinic, the order of decertification 
366.27 	must inform the certification holder of the right to have a contested case hearing under 
366.28 	chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The commissioner may 
366.29 	issue the order through the provider licensing and reporting hub.The certification holder 
366.30 	may appeal the decertification. The certification holder must appeal a decertification in 
366.31 	writing and send or deliver the appeal to the commissioner by certified mail or, by personal 
366.32 	service, or through the provider licensing and reporting hub. If the certification holder mails 
367.1 	the appeal, the appeal must be postmarked and sent to the commissioner within ten calendar 
367.2 	days after the certification holder receives the order of decertification. If the certification 
367.3 	holder delivers an appeal by personal service, the commissioner must receive the appeal 
367.4 	within ten calendar days after the certification holder received the order. If the order is 
367.5 	issued through the provider hub, the request must be received by the commissioner within 
367.6 	20 calendar days from the date the commissioner issued the order through the hub. If a 
367.7 	certification holder submits a timely appeal of an order of decertification, the certification 
367.8 	holder may continue to operate the program until the commissioner issues a final order on 
367.9 	the decertification.
367.10 	(d) If the commissioner decertifies a mental health clinic pursuant to paragraph (a), 
367.11 	clause (1), based on a determination that the mental health clinic was responsible for 
367.12 	maltreatment, and if the certification holder appeals the decertification according to paragraph 
367.13 	(c), and appeals the maltreatment determination under section 260E.33, the final 
367.14 	decertification determination is stayed until the commissioner issues a final decision regarding 
367.15 	the maltreatment appeal.

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

367.17 	Sec. 39. Minnesota Statutes 2022, section 245I.20, subdivision 16, is amended to read:
367.18 		Subd. 16.Notifications required and noncompliance. (a) A certification holder must 
367.19 	notify the commissioner, in a manner prescribed by the commissioner, and obtain the 
367.20 	commissioner's approval before making any change to the name of the certification holder 
367.21 	or the location of the mental health clinic. Upon implementation of the provider licensing 
367.22 	and reporting hub, certification holders must enter and update information in the hub in a 
367.23 	manner prescribed by the commissioner.
367.24 	(b) Changes in mental health clinic organization, staffing, treatment, or quality assurance 
367.25 	procedures that affect the ability of the certification holder to comply with the minimum 
367.26 	standards of this section must be reported in writing by the certification holder to the 
367.27 	commissioner within 15 days of the occurrence. Review of the change must be conducted 
367.28 	by the commissioner. A certification holder with changes resulting in noncompliance in 
367.29 	minimum standards must receive written notice and may have up to 180 days to correct the 
367.30 	areas of noncompliance before being decertified. Interim procedures to resolve the 
367.31 	noncompliance on a temporary basis must be developed and submitted in writing to the 
367.32 	commissioner for approval within 30 days of the commissioner's determination of the 
367.33 	noncompliance. Not reporting an occurrence of a change that results in noncompliance 
367.34 	within 15 days, failure to develop an approved interim procedure within 30 days of the 
368.1 	determination of the noncompliance, or nonresolution of the noncompliance within 180 
368.2 	days will result in immediate decertification.
368.3 	(c) The mental health clinic may be required to submit written information to the 
368.4 	department to document that the mental health clinic has maintained compliance with this 
368.5 	section and mental health clinic procedures.

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

368.7 	Sec. 40. Minnesota Statutes 2022, section 260E.09, is amended to read:
368.8 	260E.09 REPORTING REQUIREMENTS.
368.9 	(a) An oral report shall be made immediately by telephone or otherwise. An oral report 
368.10 	made by a person required under section 260E.06, subdivision 1, to report shall be followed 
368.11 	within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate 
368.12 	police department, the county sheriff, the agency responsible for assessing or investigating 
368.13 	the report, or the local welfare agency.
368.14 	(b) Any report shall be of sufficient content to identify the child, any person believed 
368.15 	to be responsible for the maltreatment of the child if the person is known, the nature and 
368.16 	extent of the maltreatment, and the name and address of the reporter. The local welfare 
368.17 	agency or agency responsible for assessing or investigating the report shall accept a report 
368.18 	made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's 
368.19 	name or address as long as the report is otherwise sufficient under this paragraph.
368.20 	(c) Notwithstanding paragraph (a), upon implementation of the provider licensing and 
368.21 	reporting hub, an individual who has an account with the provider licensing and reporting 
368.22 	hub and is required to report suspected maltreatment at a licensed program under section 
368.23 	260E.06, subdivision 1, may submit a written report in the hub in a manner prescribed by 
368.24 	the commissioner and is not required to make an oral report. A report submitted through 
368.25 	the provider licensing and reporting hub must be made immediately.

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

368.27 	Sec. 41. Minnesota Statutes 2022, section 270B.14, subdivision 1, is amended to read:
368.28 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
368.29 	the commissioner of human services, the commissioner shall disclose return information 
368.30 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
368.31 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
369.1 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
369.2 	employment, income, and property of a person owing or alleged to be owing an obligation 
369.3 	of child support.
369.4 	(c) The commissioner of human services may request data only for the purposes of 
369.5 	carrying out the child support enforcement program and to assist in the location of parents 
369.6 	who have, or appear to have, deserted their children. Data received may be used only as set 
369.7 	forth in section 256.978.
369.8 	(d) The commissioner shall provide the records and information necessary to administer 
369.9 	the supplemental housing allowance to the commissioner of human services.
369.10 	(e) At the request of the commissioner of human services, the commissioner of revenue 
369.11 	shall electronically match the Social Security numbers and names of participants in the 
369.12 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
369.13 	tax refund filers, and determine whether each participant's household income is within the 
369.14 	eligibility standards for the telephone assistance plan.
369.15 	(f) The commissioner may provide records and information collected under sections 
369.16 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
369.17 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
369.18 	102-234. Upon the written agreement by the United States Department of Health and Human 
369.19 	Services to maintain the confidentiality of the data, the commissioner may provide records 
369.20 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
369.21 	Medicaid Services section of the United States Department of Health and Human Services 
369.22 	for purposes of meeting federal reporting requirements.
369.23 	(g) The commissioner may provide records and information to the commissioner of 
369.24 	human services as necessary to administer the early refund of refundable tax credits.
369.25 	(h) The commissioner may disclose information to the commissioner of human services 
369.26 	as necessary for income verification for eligibility and premium payment under the 
369.27 	MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
369.28 	assistance program under chapter 256B.
369.29 	(i) The commissioner may disclose information to the commissioner of human services 
369.30 	necessary to verify whether applicants or recipients for the Minnesota family investment 
369.31 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), 
369.32 	Minnesota supplemental aid program, and child care assistance have claimed refundable 
369.33 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
369.34 	amounts of the credits.
370.1 	(j) The commissioner may disclose information to the commissioner of human services 
370.2 	necessary to verify income for purposes of calculating parental contribution amounts under 
370.3 	section 252.27, subdivision 2a.
370.4 	(k) The commissioner shall disclose information to the commissioner of human services 
370.5 	to verify the income and tax identification information of:
370.6 	(1) an applicant under section 245A.04, subdivision 1;
370.7 	(2) an applicant under section 245I.20;
370.8 	(3) an applicant under section 245H.03;
370.9 	(4) a license holder; or
370.10 	(5) a certification holder.

370.11 	Sec. 42. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; 
370.12 	TRANSITION TO LICENSURE.
 370.13 	(a) The commissioner of human services must transition the following mental health 
370.14 	services from certification under Minnesota Statutes, chapters 245 and 256B, to licensure 
370.15 	under Minnesota Statutes, chapter 245A, on or before January 1, 2026:
370.16 	(1) certified community behavioral health clinics;
370.17 	(2) adult rehabilitative mental health services;
370.18 	(3) mobile mental health crisis response services;
370.19 	(4) children's therapeutic services and supports; and
370.20 	(5) community mental health centers.
370.21 	(b) The transition to licensure under this section must be according to the Mental Health 
370.22 	Uniform Service Standards in Minnesota Statutes, chapter 245I.
370.23 	(c) No later than January 1, 2025, the commissioner must submit the proposed legislation 
370.24 	necessary to implement the transition in paragraphs (a) and (b) to the chairs and ranking 
370.25 	minority members of the legislative committees with jurisdiction over behavioral health 
370.26 	services.
370.27 	(d) The commissioner must consult with stakeholders to develop the legislation described 
370.28 	in paragraph (c).

371.1 	ARTICLE 9
371.2 	BEHAVIORAL HEALTH

371.3 	Section 1. [245.0961] AFRICAN AMERICAN BEHAVIORAL HEALTH GRANT 
371.4 	PROGRAM.
371.5 		Subdivision 1.Establishment. The commissioner of human services must establish an 
371.6 	African American Behavioral Health grant program to offer culturally specific, 
371.7 	comprehensive, trauma-informed, practice- and evidence-based, person- and family-centered 
371.8 	mental health and substance use disorder treatment services.
371.9 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
371.10 	must be a nonprofit organization or a nongovernmental organization and must be a culturally 
371.11 	specific mental health service provider that is a licensed community mental health center 
371.12 	that specializes in services for African American children and families.
371.13 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
371.14 	the commissioner at a time and in a manner specified by the commissioner.
371.15 		Subd. 4.Grant activities. Grant money must be used to offer culturally specific, 
371.16 	comprehensive, trauma-informed, practice- and evidence-based, person- and family-centered 
371.17 	mental health and substance use disorder services. Grant money may also be used for 
371.18 	supervision and training, and care coordination regardless of a client's ability to pay or place 
371.19 	of residence.
371.20 		Subd. 5.Reporting. (a) The grantee must submit a report to the commissioner in a 
371.21 	manner and on a timeline specified by the commissioner. The report must include how many 
371.22 	clients were served with the grant money and, if grant money was used for supervision and 
371.23 	training, how many providers were supervised or trained using the grant money.
371.24 	(b) The commissioner must submit a report to the chairs and ranking minority members 
371.25 	of the legislative committees with jurisdiction over behavioral health no later than six months 
371.26 	after receiving the report under paragraph (a). The report submitted by the commissioner 
371.27 	must include the information specified in paragraph (a).

371.28 	Sec. 2. Minnesota Statutes 2022, section 245.4889, subdivision 1, is amended to read:
371.29 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
371.30 	make grants from available appropriations to assist:
371.31 	(1) counties;
371.32 	(2) Indian Tribes;
372.1 	(3) children's collaboratives under section 124D.23 or 245.493; or
372.2 	(4) mental health service providers.
372.3 	(b) The following services are eligible for grants under this section:
372.4 	(1) services to children with emotional disturbances as defined in section 245.4871, 
372.5 	subdivision 15, and their families;
372.6 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
372.7 	age 21 and their families;
372.8 	(3) respite care services for children with emotional disturbances or severe emotional 
372.9 	disturbances who are at risk of out-of-home placement or already in out-of-home placement 
372.10 	in family foster settings as defined in chapter 245A and at risk of change in out-of-home 
372.11 	placement or placement in a residential facility or other higher level of care. Allowable 
372.12 	activities and expenses for respite care services are defined under subdivision 4. A child is 
372.13 	not required to have case management services to receive respite care services;
372.14 	(4) children's mental health crisis services;
372.15 	(5) mental health services for people from cultural and ethnic minorities, including 
372.16 	supervision of clinical trainees who are Black, indigenous, or people of color;
372.17 	(6) children's mental health screening and follow-up diagnostic assessment and treatment;
372.18 	(7) services to promote and develop the capacity of providers to use evidence-based 
372.19 	practices in providing children's mental health services;
372.20 	(8) school-linked mental health services under section 245.4901;
372.21 	(9) building evidence-based mental health intervention capacity for children birth to age 
372.22 	five;
372.23 	(10) suicide prevention and counseling services that use text messaging statewide;
372.24 	(11) mental health first aid training;
372.25 	(12) training for parents, collaborative partners, and mental health providers on the 
372.26 	impact of adverse childhood experiences and trauma and development of an interactive 
372.27 	website to share information and strategies to promote resilience and prevent trauma;
372.28 	(13) transition age services to develop or expand mental health treatment and supports 
372.29 	for adolescents and young adults 26 years of age or younger;
372.30 	(14) early childhood mental health consultation;
373.1 	(15) evidence-based interventions for youth at risk of developing or experiencing a first 
373.2 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
373.3 	psychosis;
373.4 	(16) psychiatric consultation for primary care practitioners; and
373.5 	(17) providers to begin operations and meet program requirements when establishing a 
373.6 	new children's mental health program. These may be start-up grants, including start-up 
373.7 	grants; and
373.8 	(18) evidence-informed interventions for youth and young adults who are at risk of 
373.9 	developing a mood disorder or are experiencing an emerging mood disorder, including 
373.10 	major depression and bipolar disorders, and a public awareness campaign on the signs and 
373.11 	symptoms of mood disorders in youth and young adults.
373.12 	(c) Services under paragraph (b) must be designed to help each child to function and 
373.13 	remain with the child's family in the community and delivered consistent with the child's 
373.14 	treatment plan. Transition services to eligible young adults under this paragraph must be 
373.15 	designed to foster independent living in the community.
373.16 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
373.17 	reimbursement sources, if applicable.

373.18 	EFFECTIVE DATE. This section is effective July 1, 2023.

373.19 	Sec. 3. [245.4903] CULTURAL AND ETHNIC MINORITY INFRASTRUCTURE 
373.20 	GRANT PROGRAM.
373.21 		Subdivision 1.Establishment. The commissioner of human services must establish a 
373.22 	cultural and ethnic minority infrastructure grant program to ensure that mental health and 
373.23 	substance use disorder treatment supports and services are culturally specific and culturally 
373.24 	responsive to meet the cultural needs of communities served.
373.25 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider from 
373.26 	a cultural or ethnic minority population who:
373.27 	(1) provides mental health or substance use disorder treatment services and supports to 
373.28 	individuals from cultural and ethnic minority populations, including members of those 
373.29 	populations who identify as lesbian, gay, bisexual, transgender, or queer;
373.30 	(2) provides, or is qualified and has the capacity to provide, clinical supervision and 
373.31 	support to members of culturally diverse and ethnic minority communities so they may 
373.32 	become qualified mental health and substance use disorder treatment providers; or
374.1 	(3) has the capacity and experience to provide training for mental health and substance 
374.2 	use disorder treatment providers on cultural competency and cultural humility.
374.3 		Subd. 3.Allowable grant activities. (a) Grantees must engage in activities and provide 
374.4 	supportive services to ensure and increase equitable access to culturally specific and 
374.5 	responsive care and build organizational and professional capacity for licensure and 
374.6 	certification for the communities served. Allowable grant activities include but are not 
374.7 	limited to:
374.8 	(1) providing workforce development activities focused on recruiting, supporting, 
374.9 	training, and supervising mental health and substance use disorder practitioners and 
374.10 	professionals from diverse racial, cultural, and ethnic communities;
374.11 	(2) helping members of racial and ethnic minority communities become qualified mental 
374.12 	health and substance use disorder professionals, practitioners, clinical supervisors, recovery 
374.13 	peer specialists, mental health certified peer specialists, and mental health certified family 
374.14 	peer specialists;
374.15 	(3) providing culturally specific outreach, early intervention, trauma-informed services, 
374.16 	and recovery support in mental health and substance use disorder services;
374.17 	(4) providing trauma-informed and culturally responsive mental health and substance 
374.18 	use disorder supports and services to children and families, youth, or adults who are from 
374.19 	cultural and ethnic minority backgrounds and are uninsured or underinsured;
374.20 	(5) expanding mental health and substance use disorder services, particularly in greater 
374.21 	Minnesota;
374.22 	(6) training mental health and substance use disorder treatment providers on cultural 
374.23 	competency and cultural humility; and
374.24 	(7) providing activities that increase the availability of culturally responsive mental 
374.25 	health and substance use disorder services for children and families, youth, or adults, or 
374.26 	that increase the availability of substance use disorder services for individuals from cultural 
374.27 	and ethnic minorities in the state.
374.28 	(b) The commissioner must assist grantees with meeting third-party credentialing 
374.29 	requirements, and grantees must obtain all available third-party reimbursement sources as 
374.30 	a condition of receiving grant money. Grantees must serve individuals from cultural and 
374.31 	ethnic minority communities regardless of health coverage status or ability to pay.
374.32 		Subd. 4.Program evaluation requirements. (a) The commissioner must consult with 
374.33 	the commissioner of management and budget on program outcomes, evaluation metrics, 
375.1 	and progress indicators for the grant program under this section. The commissioner must 
375.2 	only implement program outcomes, evaluation metrics, and progress indicators that are 
375.3 	determined through and agreed upon during the consultation with the commissioner of 
375.4 	management and budget or stated in paragraph (b). The commissioner shall not implement 
375.5 	the grant program under this section until the consultation with the commissioner of 
375.6 	management and budget is completed. The commissioner must incorporate agreed-upon 
375.7 	program outcomes, evaluation metrics, and progress indicators into grant applications, 
375.8 	requests for proposals, and any reports to the legislature.
375.9 	(b) Grantees must provide regular data summaries to the commissioner for purposes of 
375.10 	evaluating the effectiveness of the grant program. The commissioner must use identified 
375.11 	culturally appropriate outcome measures to evaluate outcomes and must evaluate program 
375.12 	activities by analyzing whether the program:
375.13 	(1) increased access to culturally specific services for individuals from cultural and 
375.14 	ethnic minority communities across the state;
375.15 	(2) increased the number of individuals from cultural and ethnic minority communities 
375.16 	served by grantees;
375.17 	(3) increased the cultural responsiveness and cultural competency of mental health and 
375.18 	substance use disorder treatment providers;
375.19 	(4) increased the number of mental health and substance use disorder treatment providers 
375.20 	and clinical supervisors from cultural and ethnic minority communities;
375.21 	(5) increased the number of mental health and substance use disorder treatment 
375.22 	organizations owned, managed, or led by individuals who are Black, Indigenous, or people 
375.23 	of color;
375.24 	(6) reduced health disparities through improved clinical and functional outcomes for 
375.25 	those accessing services;
375.26 	(7) led to an overall increase in culturally specific mental health and substance use 
375.27 	disorder service availability; and
375.28 	(8) led to changes indicated by other measures identified from consultation pursuant to 
375.29 	paragraph (a).

375.30 	Sec. 4. [245.4904] EMERGING MOOD DISORDER GRANT PROGRAM.
375.31 		Subdivision 1.Creation. (a) The emerging mood disorder grant program is established 
375.32 	in the Department of Human Services to fund:
376.1 	(1) evidence-informed interventions for youth and young adults who are at risk of 
376.2 	developing a mood disorder or are experiencing an emerging mood disorder, including 
376.3 	major depression and bipolar disorders; and
376.4 	(2) a public awareness campaign on the signs and symptoms of mood disorders in youth 
376.5 	and young adults.
376.6 	(b) Emerging mood disorder services are eligible for children's mental health grants as 
376.7 	specified in section 245.4889, subdivision 1, paragraph (b), clause (18).
376.8 		Subd. 2.Activities. (a) All emerging mood disorder grant program recipients must:
376.9 	(1) provide intensive treatment and support to adolescents and young adults experiencing 
376.10 	or at risk of experiencing an emerging mood disorder. Intensive treatment and support 
376.11 	includes medication management, psychoeducation for the individual and the individual's 
376.12 	family, case management, employment support, education support, cognitive behavioral 
376.13 	approaches, social skills training, peer support, crisis planning, and stress management;
376.14 	(2) conduct outreach and provide training and guidance to mental health and health care 
376.15 	professionals, including postsecondary health clinicians, on early symptoms of mood 
376.16 	disorders, screening tools, and best practices;
376.17 	(3) ensure access for individuals to emerging mood disorder services under this section, 
376.18 	including ensuring access for individuals who live in rural areas; and
376.19 	(4) use all available funding streams.
376.20 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
376.21 	receiving services or to address other barriers preventing individuals and their families from 
376.22 	participating in emerging mood disorder services.
376.23 	(c) Grant money may be used by the grantee to evaluate the efficacy of providing 
376.24 	intensive services and supports to people with emerging mood disorders.
376.25 		Subd. 3.Eligibility. Program activities must be provided to youth and young adults with 
376.26 	early signs of an emerging mood disorder.
376.27 		Subd. 4.Program evaluation requirements. The commissioner must consult with the 
376.28 	commissioner of management and budget on program outcomes, evaluation metrics, and 
376.29 	progress indicators for the grant program under this section. The commissioner must only 
376.30 	implement program outcomes, evaluation metrics, and progress indicators that are determined 
376.31 	through and agreed upon during the consultation with the commissioner of management 
376.32 	and budget. The commissioner shall not implement the grant program under this section 
377.1 	until the consultation with the commissioner of management and budget is completed. The 
377.2 	commissioner must incorporate agreed-upon program outcomes, evaluation metrics, and 
377.3 	progress indicators into grant applications, requests for proposals, and any reports to the 
377.4 	legislature.

377.5 	EFFECTIVE DATE. This section is effective July 1, 2023.

377.6 	Sec. 5. Minnesota Statutes 2022, section 245.735, subdivision 3, is amended to read:
377.7 		Subd. 3.Certified community behavioral health clinics. (a) The commissioner shall
377.8 	must establish a state certification and recertification process for certified community 
377.9 	behavioral health clinics (CCBHCs) that satisfy all federal requirements necessary for 
377.10 	CCBHCs certified under this section to be eligible for reimbursement under medical 
377.11 	assistance, without service area limits based on geographic area or region. The commissioner 
377.12 	shall consult with CCBHC stakeholders before establishing and implementing changes in 
377.13 	the certification or recertification process and requirements. Any changes to the certification 
377.14 	or recertification process or requirements must be consistent with the most recently issued 
377.15 	CCBHC criteria published by the Substance Abuse and Mental Health Services 
377.16 	Administration (SAMHSA). The commissioner must allow a transition period for CCBHCs 
377.17 	to meet the revised SAMHSA criteria prior to July 1, 2024. The commissioner is authorized 
377.18 	to amend Minnesota's Medicaid state plan or the terms of the demonstration to comply with 
377.19 	federal requirements. Entities that choose to be CCBHCs must:
377.20 	(1) comply with state licensing requirements and other requirements issued by the 
377.21 	commissioner;
377.22 	(2) employ or contract for clinic staff who have backgrounds in diverse disciplines, 
377.23 	including licensed mental health professionals and licensed alcohol and drug counselors, 
377.24 	and staff who are culturally and linguistically trained to meet the needs of the population 
377.25 	the clinic serves;
377.26 	(3) ensure that clinic services are available and accessible to individuals and families of 
377.27 	all ages and genders and that crisis management services are available 24 hours per day;
377.28 	(4) establish fees for clinic services for individuals who are not enrolled in medical 
377.29 	assistance using a sliding fee scale that ensures that services to patients are not denied or 
377.30 	limited due to an individual's inability to pay for services;
377.31 	(5) comply with quality assurance reporting requirements and other reporting 
377.32 	requirements, including any required reporting of encounter data, clinical outcomes data, 
377.33 	and quality data;
378.1 	(6) provide crisis mental health and substance use services, withdrawal management 
378.2 	services, emergency crisis intervention services, and stabilization services through existing 
378.3 	mobile crisis services; screening, assessment, and diagnosis services, including risk 
378.4 	assessments and level of care determinations; person- and family-centered treatment planning; 
378.5 	outpatient mental health and substance use services; targeted case management; psychiatric 
378.6 	rehabilitation services; peer support and counselor services and family support services; 
378.7 	and intensive community-based mental health services, including mental health services 
378.8 	for members of the armed forces and veterans. CCBHCs must directly provide the majority 
378.9 	of these services to enrollees, but may coordinate some services with another entity through 
378.10 	a collaboration or agreement, pursuant to paragraph (b);
378.11 	(7) provide coordination of care across settings and providers to ensure seamless 
378.12 	transitions for individuals being served across the full spectrum of health services, including 
378.13 	acute, chronic, and behavioral needs. Care coordination may be accomplished through 
378.14 	partnerships or formal contracts with:
378.15 	(i) counties, health plans, pharmacists, pharmacies, rural health clinics, federally qualified 
378.16 	health centers, inpatient psychiatric facilities, substance use and detoxification facilities, or 
378.17 	community-based mental health providers; and
378.18 	(ii) other community services, supports, and providers, including schools, child welfare 
378.19 	agencies, juvenile and criminal justice agencies, Indian health services clinics, tribally 
378.20 	licensed health care and mental health facilities, urban Indian health clinics, Department of 
378.21 	Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute care hospitals, 
378.22 	and hospital outpatient clinics;
378.23 	(8) be certified as a mental health clinic under section 245I.20;
378.24 	(9) comply with standards established by the commissioner relating to CCBHC 
378.25 	screenings, assessments, and evaluations;
378.26 	(10) be licensed to provide substance use disorder treatment under chapter 245G;
378.27 	(11) be certified to provide children's therapeutic services and supports under section 
378.28 	256B.0943;
378.29 	(12) be certified to provide adult rehabilitative mental health services under section 
378.30 	256B.0623;
378.31 	(13) be enrolled to provide mental health crisis response services under section 
378.32 	256B.0624;
379.1 	(14) be enrolled to provide mental health targeted case management under section 
379.2 	256B.0625, subdivision 20;
379.3 	(15) comply with standards relating to mental health case management in Minnesota 
379.4 	Rules, parts 9520.0900 to 9520.0926;
379.5 	(16) provide services that comply with the evidence-based practices described in 
379.6 	paragraph (e); and
379.7 	(17) comply with standards relating to peer services under sections 256B.0615, 
379.8 	256B.0616, and 245G.07, subdivision 2, clause (8), as applicable when peer services are 
379.9 	provided.
379.10 	(b) As part of the state CCBHC certification and recertification process, the commissioner 
379.11 	must provide to entities applying for certification or requesting recertification (1) the standard 
379.12 	requirements of the community needs assessment, and (2) the staffing plan. The standard 
379.13 	requirements and the staffing plan must be consistent with the most recently issued CCBHC 
379.14 	criteria published by the SAMHSA.
379.15 	(c) If a certified CCBHC is unable to provide one or more of the services listed in 
379.16 	paragraph (a), clauses (6) to (17), the CCBHC may contract with another entity that has the 
379.17 	required authority to provide that service and that meets the following criteria as a designated 
379.18 	collaborating organization:
379.19 	(1) the entity has a formal agreement with the CCBHC to furnish one or more of the 
379.20 	services under paragraph (a), clause (6);
379.21 	(2) the entity provides assurances that it will provide services according to CCBHC 
379.22 	service standards and provider requirements;
379.23 	(3) the entity agrees that the CCBHC is responsible for coordinating care and has clinical 
379.24 	and financial responsibility for the services that the entity provides under the agreement; 
379.25 	and
379.26 	(4) the entity meets any additional requirements issued by the commissioner.
379.27 	(c) (d) Notwithstanding any other law that requires a county contract or other form of 
379.28 	county approval for certain services listed in paragraph (a), clause (6), a clinic that otherwise 
379.29 	meets CCBHC requirements may receive the prospective payment under section 256B.0625, 
379.30 	subdivision 5m, for those services without a county contract or county approval. As part of 
379.31 	the certification process in paragraph (a), the commissioner shall require a letter of support 
379.32 	from the CCBHC's host county confirming that the CCBHC and the county or counties it 
380.1 	serves have an ongoing relationship to facilitate access and continuity of care, especially 
380.2 	for individuals who are uninsured or who may go on and off medical assistance.
380.3 	(d) (e) When the standards listed in paragraph (a) or other applicable standards conflict 
380.4 	or address similar issues in duplicative or incompatible ways, the commissioner may grant 
380.5 	variances to state requirements if the variances do not conflict with federal requirements 
380.6 	for services reimbursed under medical assistance. If standards overlap, the commissioner 
380.7 	may substitute all or a part of a licensure or certification that is substantially the same as 
380.8 	another licensure or certification. The commissioner shall consult with stakeholders, as 
380.9 	described in subdivision 4, before granting variances under this provision. For the CCBHC 
380.10 	that is certified but not approved for prospective payment under section 256B.0625, 
380.11 	subdivision 5m, the commissioner may grant a variance under this paragraph if the variance 
380.12 	does not increase the state share of costs.
380.13 	(e) (f) The commissioner shall issue a list of required evidence-based practices to be 
380.14 	delivered by CCBHCs, and may also provide a list of recommended evidence-based practices. 
380.15 	The commissioner may update the list to reflect advances in outcomes research and medical 
380.16 	services for persons living with mental illnesses or substance use disorders. The commissioner 
380.17 	shall take into consideration the adequacy of evidence to support the efficacy of the practice, 
380.18 	the quality of workforce available, and the current availability of the practice in the state. 
380.19 	At least 30 days before issuing the initial list and any revisions, the commissioner shall 
380.20 	provide stakeholders with an opportunity to comment.
380.21 	(f) (g) The commissioner shall recertify CCBHCs at least every three years. The 
380.22 	commissioner shall establish a process for decertification and shall require corrective action, 
380.23 	medical assistance repayment, or decertification of a CCBHC that no longer meets the 
380.24 	requirements in this section or that fails to meet the standards provided by the commissioner 
380.25 	in the application and certification process.

380.26 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
380.27 	of human services shall notify the revisor of statutes when federal approval is obtained.

380.28 	Sec. 6. Minnesota Statutes 2022, section 245.735, subdivision 6, is amended to read:
380.29 		Subd. 6.Demonstration Section 223 Protecting Access to Medicare Act entities. (a) 
380.30 	The commissioner may operate must request federal approval to participate in the 
380.31 	demonstration program established by section 223 of the Protecting Access to Medicare 
380.32 	Act and, if approved, must continue to participate in the demonstration program for as long 
380.33 	as federal funding for the demonstration program remains available from the United States 
380.34 	Department of Health and Human Services. To the extent practicable, the commissioner 
381.1 	shall align the requirements of the demonstration program with the requirements under this 
381.2 	section for CCBHCs receiving medical assistance reimbursement under the authority of the 
381.3 	state's Medicaid state plan. A CCBHC may not apply to participate as a billing provider in 
381.4 	both the CCBHC federal demonstration and the benefit for CCBHCs under the medical 
381.5 	assistance program.
381.6 	(b) The commissioner must follow the payment guidance issued by the federal 
381.7 	government, including the payment of the CCBHC daily bundled rate for services rendered 
381.8 	by CCBHCs to individuals who are dually eligible for Medicare and medical assistance 
381.9 	when Medicare is the primary payer for the service. An entity that receives a CCBHC daily 
381.10 	bundled rate that overlaps with another federal Medicaid methodology is not eligible for 
381.11 	the CCBHC rate. Services provided by a CCBHC operating under authority of the state's 
381.12 	Medicaid state plan will not receive the prospective payment system rate for services rendered 
381.13 	by CCBHCs to individuals who are dually eligible for Medicare and medical assistance 
381.14 	when Medicare is the primary payer for the service. Payment for services rendered by 
381.15 	CCBHCs to individuals who have commercial insurance as primary and medical assistance 
381.16 	as secondary is subject to section 256B.37. Services provided by a CCBHC operating under 
381.17 	authority of the 223 demonstration or the state's Medicaid state plan will not receive the 
381.18 	prospective payment system rate for services rendered by CCBHCs to individuals who have 
381.19 	commercial insurance as primary and medical assistance as secondary.

381.20 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
381.21 	of human services shall notify the revisor of statutes when federal approval is obtained.

381.22 	Sec. 7. Minnesota Statutes 2022, section 245.735, is amended by adding a subdivision to 
381.23 	read:
381.24 		Subd. 7.Addition of CCBHCs to section 223 state demonstration programs. (a) If 
381.25 	the commissioner's request to reenter the demonstration program under subdivision 6 is 
381.26 	approved, the commissioner must follow all federal guidance for the addition of CCBHCs 
381.27 	to section 223 state demonstration programs.
381.28 	(b) Prior to participating in the demonstration, a clinic must meet the demonstration 
381.29 	certification criteria and prospective payment system guidance in effect at that time and be 
381.30 	certified as a CCBHC in Minnesota. The SAMHSA attestation process for the CCBHC 
381.31 	expansion grants is not sufficient to constitute state certification. CCBHCs newly added to 
381.32 	the demonstration must participate in all aspects of the state demonstration program, including 
381.33 	but not limited to quality measurement and reporting, evaluation activities, and state CCBHC 
381.34 	demonstration program requirements such as use of state-specified evidence-based practices. 
382.1 	A newly added CCBHC must report on quality measures before its first full demonstration 
382.2 	year if it joined the demonstration program in the 2023 calendar year out of alignment with 
382.3 	the state's demonstration year cycle. A CCBHC may provide services in multiple locations 
382.4 	and in community-based settings subject to federal rules of the 223 demonstration authority 
382.5 	or Medicaid state plan authority. If a facility meets the definition of a satellite facility as 
382.6 	defined by the SAMHSA n and was established after April 1, 2014, the facility cannot 
382.7 	receive payment as a part of the demonstration program.

382.8 	EFFECTIVE DATE. This section is effective upon federal approval. The commissioner 
382.9 	of human services shall notify the revisor of statutes when federal approval is obtained.

382.10 	Sec. 8. Minnesota Statutes 2022, section 254B.02, subdivision 5, is amended to read:
382.11 		Subd. 5.Administrative adjustment Local agency allocation. The commissioner may 
382.12 	make payments to local agencies from money allocated under this section to support 
382.13 	administrative activities under sections 254B.03 and 254B.04 individuals with substance 
382.14 	use disorders. The administrative payment must not exceed the lesser of: (1) five percent 
382.15 	of the first $50,000, four percent of the next $50,000, and three percent of the remaining 
382.16 	payments for services from the special revenue account according to subdivision 1; or (2)
382.17 	be less than 133 percent of the local agency administrative payment for the fiscal year ending 
382.18 	June 30, 2009, adjusted in proportion to the statewide change in the appropriation for this 
382.19 	chapter.

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

382.21 	Sec. 9. Minnesota Statutes 2022, section 256B.0941, is amended by adding a subdivision 
382.22 	to read:
382.23 		Subd. 5.Start-up and capacity-building grants. (a) The commissioner shall establish 
382.24 	start-up and capacity-building grants for psychiatric residential treatment facility sites. 
382.25 	Start-up grants to prospective psychiatric residential treatment facility sites may be used 
382.26 	for:
382.27 	(1) administrative expenses;
382.28 	(2) consulting services;
382.29 	(3) Health Insurance Portability and Accountability Act of 1996 compliance;
382.30 	(4) therapeutic resources, including evidence-based, culturally appropriate curriculums 
382.31 	and training programs for staff and clients;
383.1 	(5) allowable physical renovations to the property; and
383.2 	(6) emergency workforce shortage uses, as determined by the commissioner.
383.3 	(b) Start-up and capacity-building grants to prospective and current psychiatric residential 
383.4 	treatment facilities may be used to support providers who treat and accept individuals with 
383.5 	complex support needs, including but not limited to:
383.6 	(1) neurocognitive disorders;
383.7 	(2) co-occurring intellectual developmental disabilities;
383.8 	(3) schizophrenia spectrum disorders;
383.9 	(4) manifested or labeled aggressive behaviors; and
383.10 	(5) manifested sexually inappropriate behaviors.

383.11 	EFFECTIVE DATE. This section is effective July 1, 2023.

383.12 	Sec. 10. DIRECTION TO COMMISSIONER; CHANGES TO RESIDENTIAL 
383.13 	ADULT MENTAL HEALTH PROGRAM LICENSING REQUIREMENTS.
 383.14 	(a) The commissioner of human services must consult with stakeholders to determine 
383.15 	the changes to residential adult mental health program licensing requirements in Minnesota 
383.16 	Rules, parts 9520.0500 to 9520.0670, necessary to:
383.17 	(1) update requirements for category I programs to align with current mental health 
383.18 	practices, client rights for similar services, and health and safety needs of clients receiving 
383.19 	services;
383.20 	(2) remove category II classification and requirements; and
383.21 	(3) add licensing requirements to the rule for the Forensic Mental Health Program.
383.22 	(b) The commissioner must use existing authority in Minnesota Statutes, chapter 245A, 
383.23 	to amend Minnesota Rules, parts 9520.0500 to 9520.0670, based on the stakeholder 
383.24 	consultation in paragraph (a) and additional changes as determined by the commissioner.

383.25 	Sec. 11. LOCAL AGENCY SUBSTANCE USE DISORDER ALLOCATION.
 383.26 	The commissioner of human services shall evaluate the ongoing need for local agency 
383.27 	substance use disorder allocations under Minnesota Statutes, section 254B.02. The evaluation 
383.28 	must include recommendations on whether local agency allocations should continue, and 
383.29 	if so, must recommend what the purpose of the allocations should be and propose an updated 
383.30 	allocation methodology that aligns with the purpose and person-centered outcomes for 
384.1 	people experiencing substance use disorders and behavioral health conditions. The 
384.2 	commissioner may contract with a vendor to support this evaluation through research and 
384.3 	actuarial analysis.

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

384.5 	Sec. 12. MOBILE RESPONSE AND STABILIZATION SERVICES PILOT.
 384.6 	The commissioner of human services shall establish a pilot to promote access to crisis 
384.7 	response services and reduce psychiatric hospitalizations and out-of-home placement services 
384.8 	for children, youth, and families. The pilot must incorporate a two-pronged approach to 
384.9 	provide an immediate, face-to-face response within 60 minutes of a crisis as well as extended, 
384.10 	longer-term supports for the family unit. The pilot must aim to help families respond to 
384.11 	children's behavioral health crises while bolstering resiliency and recovery within the family 
384.12 	unit. The pilot must include four sites, must include at least one rural site and one urban 
384.13 	site, and may include one or more Tribal behavioral health crisis providers. To qualify for 
384.14 	the pilot, a grantee must have a current mobile crisis certification in good standing under 
384.15 	Minnesota Statutes, section 256B.0624. The commissioner must consult with a qualified 
384.16 	expert entity to assist in the formulation of measurable outcomes and explore and position 
384.17 	the state to submit a Medicaid state plan amendment to scale the model statewide.

384.18 	EFFECTIVE DATE. This section is effective July 1, 2023.

384.19 	Sec. 13. RATE INCREASE FOR MENTAL HEALTH ADULT DAY TREATMENT.
 384.20 	The commissioner of human services must increase the reimbursement rate for adult 
384.21 	day treatment under Minnesota Statutes, section 256B.0671, subdivision 3, by 50 percent 
384.22 	over the reimbursement rate in effect as of June 30, 2023.

384.23 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
384.24 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
384.25 	when federal approval is obtained.

384.26 	ARTICLE 10
384.27 	ECONOMIC ASSISTANCE

384.28 	Section 1. Minnesota Statutes 2022, section 119B.025, subdivision 4, is amended to read:
384.29 		Subd. 4.Changes in eligibility. (a) The county shall process a change in eligibility 
384.30 	factors according to paragraphs (b) to (g).
384.31 	(b) A family is subject to the reporting requirements in section 256P.07, subdivision 6.
385.1 	(c) If a family reports a change or a change is known to the agency before the family's 
385.2 	regularly scheduled redetermination, the county must act on the change. The commissioner 
385.3 	shall establish standards for verifying a change.
385.4 	(d) A change in income occurs on the day the participant received the first payment 
385.5 	reflecting the change in income.
385.6 	(e) During a family's 12-month eligibility period, if the family's income increases and 
385.7 	remains at or below 85 percent of the state median income, adjusted for family size, there 
385.8 	is no change to the family's eligibility. The county shall not request verification of the 
385.9 	change. The co-payment fee shall not increase during the remaining portion of the family's 
385.10 	12-month eligibility period.
385.11 	(f) During a family's 12-month eligibility period, if the family's income increases and 
385.12 	exceeds 85 percent of the state median income, adjusted for family size, the family is not 
385.13 	eligible for child care assistance. The family must be given 15 calendar days to provide 
385.14 	verification of the change. If the required verification is not returned or confirms ineligibility, 
385.15 	the family's eligibility ends following a subsequent 15-day adverse action notice.
385.16 	(g) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170, 
385.17 	subpart 1, if an applicant or participant reports that employment ended, the agency may 
385.18 	accept a signed statement from the applicant or participant as verification that employment 
385.19 	ended.

385.20 	EFFECTIVE DATE. This section is effective March 1, 2025.

385.21 	Sec. 2. Minnesota Statutes 2022, section 256D.01, subdivision 1a, is amended to read:
385.22 		Subd. 1a.Standards. (a) A principal objective in providing general assistance is to 
385.23 	provide for single adults, childless couples, or children as defined in section 256D.02, 
385.24 	subdivision 6, ineligible for federal programs who are unable to provide for themselves. 
385.25 	The minimum standard of assistance determines the total amount of the general assistance 
385.26 	grant without separate standards for shelter, utilities, or other needs.
385.27 	(b) The commissioner shall set the standard of assistance for an assistance unit consisting 
385.28 	of an adult a recipient who is childless and unmarried or living apart from children and 
385.29 	spouse and who does not live with a parent or parents or a legal custodian is the cash portion 
385.30 	of the MFIP transitional standard for a single adult under section 256J.24, subdivision 5. 
385.31 	When the other standards specified in this subdivision increase, this standard must also be 
385.32 	increased by the same percentage.
386.1 	(c) For an assistance unit consisting of a single adult who lives with a parent or parents, 
386.2 	the general assistance standard of assistance is the amount that the aid to families with 
386.3 	dependent children standard of assistance, in effect on July 16, 1996, would increase if the 
386.4 	recipient were added as an additional minor child to an assistance unit consisting of the 
386.5 	recipient's parent and all of that parent's family members, except that the standard may not 
386.6 	exceed the standard for a general assistance recipient living alone is the cash portion of the 
386.7 	MFIP transitional standard for a single adult under section 256J.24, subdivision 5. Benefits 
386.8 	received by a responsible relative of the assistance unit under the Supplemental Security 
386.9 	Income program, a workers' compensation program, the Minnesota supplemental aid program, 
386.10 	or any other program based on the responsible relative's disability, and any benefits received 
386.11 	by a responsible relative of the assistance unit under the Social Security retirement program, 
386.12 	may not be counted in the determination of eligibility or benefit level for the assistance unit. 
386.13 	Except as provided below, the assistance unit is ineligible for general assistance if the 
386.14 	available resources or the countable income of the assistance unit and the parent or parents 
386.15 	with whom the assistance unit lives are such that a family consisting of the assistance unit's 
386.16 	parent or parents, the parent or parents' other family members and the assistance unit as the 
386.17 	only or additional minor child would be financially ineligible for general assistance. For 
386.18 	the purposes of calculating the countable income of the assistance unit's parent or parents, 
386.19 	the calculation methods must follow the provisions under section 256P.06.
386.20 	(d) For an assistance unit consisting of a childless couple, the standards of assistance 
386.21 	are the same as the first and second adult standards of the aid to families with dependent 
386.22 	children program in effect on July 16, 1996. If one member of the couple is not included in 
386.23 	the general assistance grant, the standard of assistance for the other is the second adult 
386.24 	standard of the aid to families with dependent children program as of July 16, 1996.

386.25 	EFFECTIVE DATE. This section is effective October 1, 2024.

386.26 	Sec. 3. Minnesota Statutes 2022, section 256D.024, subdivision 1, is amended to read:
386.27 		Subdivision 1.Person convicted of drug offenses. (a) If An applicant or recipient
386.28 	individual who has been convicted of a felony-level drug offense after July 1, 1997, the 
386.29 	assistance unit is ineligible for benefits under this chapter until five years after the applicant 
386.30 	has completed terms of the court-ordered sentence, unless the person is participating in a 
386.31 	drug treatment program, has successfully completed a drug treatment program, or has been 
386.32 	assessed by the county and determined not to be in need of a drug treatment program. Persons 
386.33 	subject to the limitations of this subdivision who become eligible for assistance under this 
386.34 	chapter shall during the previous ten years from the date of application or recertification 
387.1 	may be subject to random drug testing as a condition of continued eligibility and shall lose 
387.2 	eligibility for benefits for five years beginning the month following:. The county must 
387.3 	provide information about substance use disorder treatment programs to a person who tests 
387.4 	positive for an illegal controlled substance.
387.5 	(1) Any positive test result for an illegal controlled substance; or
387.6 	(2) discharge of sentence after conviction for another drug felony.
387.7 	(b) For the purposes of this subdivision, "drug offense" means a conviction that occurred 
387.8 	after July 1, 1997, during the previous ten years from the date of application or recertification
387.9 	of sections 152.021 to 152.025, 152.0261, 152.0262, or 152.096. Drug offense also means 
387.10 	a conviction in another jurisdiction of the possession, use, or distribution of a controlled 
387.11 	substance, or conspiracy to commit any of these offenses, if the offense conviction occurred 
387.12 	after July 1, 1997, during the previous ten years from the date of application or recertification
387.13 	and the conviction is a felony offense in that jurisdiction, or in the case of New Jersey, a 
387.14 	high misdemeanor.

387.15 	EFFECTIVE DATE. This section is effective August 1, 2023.

387.16 	Sec. 4. Minnesota Statutes 2022, section 256D.03, is amended by adding a subdivision to 
387.17 	read:
387.18 		Subd. 2b.Budgeting and reporting. Every county agency shall determine eligibility 
387.19 	and calculate benefit amounts for general assistance according to chapter 256P.

387.20 	EFFECTIVE DATE. This section is effective March 1, 2025.

387.21 	Sec. 5. Minnesota Statutes 2022, section 256D.06, subdivision 5, is amended to read:
387.22 		Subd. 5.Eligibility; requirements. (a) Any applicant, otherwise eligible for general 
387.23 	assistance and possibly eligible for maintenance benefits from any other source shall (1) 
387.24 	make application for those benefits within 30 90 days of the general assistance application; 
387.25 	and (2) execute an interim assistance agreement on a form as directed by the commissioner.
387.26 	(b) The commissioner shall review a denial of an application for other maintenance 
387.27 	benefits and may require a recipient of general assistance to file an appeal of the denial if 
387.28 	appropriate. If found eligible for benefits from other sources, and a payment received from 
387.29 	another source relates to the period during which general assistance was also being received, 
387.30 	the recipient shall be required to reimburse the county agency for the interim assistance 
387.31 	paid. Reimbursement shall not exceed the amount of general assistance paid during the time 
388.1 	period to which the other maintenance benefits apply and shall not exceed the state standard 
388.2 	applicable to that time period.
388.3 	(c) The commissioner may contract with the county agencies, qualified agencies, 
388.4 	organizations, or persons to provide advocacy and support services to process claims for 
388.5 	federal disability benefits for applicants or recipients of services or benefits supervised by 
388.6 	the commissioner using money retained under this section.
388.7 	(d) The commissioner may provide methods by which county agencies shall identify, 
388.8 	refer, and assist recipients who may be eligible for benefits under federal programs for 
388.9 	people with a disability.
388.10 	(e) The total amount of interim assistance recoveries retained under this section for 
388.11 	advocacy, support, and claim processing services shall not exceed 35 percent of the interim 
388.12 	assistance recoveries in the prior fiscal year.

388.13 	Sec. 6. Minnesota Statutes 2022, section 256D.44, subdivision 5, is amended to read:
388.14 		Subd. 5.Special needs. (a) In addition to the state standards of assistance established 
388.15 	in subdivisions 1 to 4, payments are allowed for the following special needs of recipients 
388.16 	of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
388.17 	center, or a setting authorized to receive housing support payments under chapter 256I.
388.18 	(b) The county agency shall pay a monthly allowance for medically prescribed diets if 
388.19 	the cost of those additional dietary needs cannot be met through some other maintenance 
388.20 	benefit. The need for special diets or dietary items must be prescribed by a licensed physician, 
388.21 	advanced practice registered nurse, or physician assistant. Costs for special diets shall be 
388.22 	determined as percentages of the allotment for a one-person household under the thrifty 
388.23 	food plan as defined by the United States Department of Agriculture. The types of diets and 
388.24 	the percentages of the thrifty food plan that are covered are as follows:
388.25 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
388.26 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of 
388.27 	thrifty food plan;
388.28 	(3) controlled protein diet, less than 40 grams and requires special products, 125 percent 
388.29 	of thrifty food plan;
388.30 	(4) low cholesterol diet, 25 percent of thrifty food plan;
388.31 	(5) high residue diet, 20 percent of thrifty food plan;
388.32 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
389.1 	(7) gluten-free diet, 25 percent of thrifty food plan;
389.2 	(8) lactose-free diet, 25 percent of thrifty food plan;
389.3 	(9) antidumping diet, 15 percent of thrifty food plan;
389.4 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
389.5 	(11) ketogenic diet, 25 percent of thrifty food plan.
389.6 	(c) Payment for nonrecurring special needs must be allowed for necessary home repairs 
389.7 	or necessary repairs or replacement of household furniture and appliances using the payment 
389.8 	standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as 
389.9 	other funding sources are not available.
389.10 	(d) A fee for guardian or conservator service is allowed at a reasonable rate negotiated 
389.11 	by the county or approved by the court. This rate shall not exceed five percent of the 
389.12 	assistance unit's gross monthly income up to a maximum of $100 per month. If the guardian 
389.13 	or conservator is a member of the county agency staff, no fee is allowed.
389.14 	(e) The county agency shall continue to pay a monthly allowance of $68 for restaurant 
389.15 	meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and 
389.16 	who eats two or more meals in a restaurant daily. The allowance must continue until the 
389.17 	person has not received Minnesota supplemental aid for one full calendar month or until 
389.18 	the person's living arrangement changes and the person no longer meets the criteria for the 
389.19 	restaurant meal allowance, whichever occurs first.
389.20 	(f) A fee of ten percent of the recipient's gross income or $25, whichever is less, equal 
389.21 	to the maximum monthly amount allowed by the Social Security Administration is allowed 
389.22 	for representative payee services provided by an agency that meets the requirements under 
389.23 	SSI regulations to charge a fee for representative payee services. This special need is available 
389.24 	to all recipients of Minnesota supplemental aid regardless of their living arrangement.
389.25 	(g)(1) Notwithstanding the language in this subdivision, an amount equal to one-half of 
389.26 	the maximum federal Supplemental Security Income payment amount for a single individual 
389.27 	which is in effect on the first day of July of each year will be added to the standards of 
389.28 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as 
389.29 	in need of housing assistance and are:
389.30 	(i) relocating from an institution, a setting authorized to receive housing support under 
389.31 	chapter 256I, or an adult mental health residential treatment program under section 
389.32 	256B.0622;
390.1 	(ii) eligible for personal care assistance under section 256B.0659; or
390.2 	(iii) home and community-based waiver recipients living in their own home or rented 
390.3 	or leased apartment.
390.4 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter 
390.5 	needy benefit under this paragraph is considered a household of one. An eligible individual 
390.6 	who receives this benefit prior to age 65 may continue to receive the benefit after the age 
390.7 	of 65.
390.8 	(3) "Housing assistance" means that the assistance unit incurs monthly shelter costs that 
390.9 	exceed 40 percent of the assistance unit's gross income before the application of this special 
390.10 	needs standard. "Gross income" for the purposes of this section is the applicant's or recipient's 
390.11 	income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 
390.12 	3, paragraph (a) or (b), whichever is greater. A recipient of a federal or state housing subsidy, 
390.13 	that limits shelter costs to a percentage of gross income, shall not be considered in need of 
390.14 	housing assistance for purposes of this paragraph.

390.15 	EFFECTIVE DATE. This section is effective January 1, 2024.

390.16 	Sec. 7. Minnesota Statutes 2022, section 256D.63, subdivision 2, is amended to read:
390.17 		Subd. 2.SNAP reporting requirements. The commissioner of human services shall 
390.18 	implement simplified reporting as permitted under the Food and Nutrition Act of 2008, as 
390.19 	amended, and the SNAP regulations in Code of Federal Regulations, title 7, part 273. SNAP 
390.20 	benefit recipient households required to report periodically shall not be required to report 
390.21 	more often than one time every six months. This provision shall not apply to households 
390.22 	receiving food benefits under the Minnesota family investment program waiver.

390.23 	EFFECTIVE DATE. This section is effective March 1, 2025.

390.24 	Sec. 8. Minnesota Statutes 2022, section 256E.34, subdivision 4, is amended to read:
390.25 		Subd. 4.Use of money. At least 96 percent of the money distributed to Hunger Solutions 
390.26 	under this section must be distributed to food shelf programs to purchase, transport, and 
390.27 	coordinate the distribution of nutritious food to needy individuals and families. The money 
390.28 	distributed to food shelf programs may also be used to purchase personal hygiene products, 
390.29 	including but not limited to diapers and toilet paper. No more than four percent of the money 
390.30 	may be expended for other expenses, such as rent, salaries, and other administrative expenses 
390.31 	of Hunger Solutions.

391.1 	Sec. 9. [256E.342] AMERICAN INDIAN FOOD SOVEREIGNTY FUNDING 
391.2 	PROGRAM.
391.3 		Subdivision 1.Establishment. The American Indian food sovereignty funding program 
391.4 	is established to improve access and equity to food security programs within Tribal and 
391.5 	American Indian communities. The program shall assist Tribal Nations and American Indian 
391.6 	communities in achieving self-determination and improve collaboration and partnership 
391.7 	building between American Indian communities and the state. The commissioner of human 
391.8 	services shall administer the program and provide outreach, technical assistance, and program 
391.9 	development support to increase food security for American Indians.
391.10 		Subd. 2.Distribution of funding. (a) The commissioner shall provide funding to support 
391.11 	food system changes and provide equitable access to existing and new methods of food 
391.12 	support for American Indian communities. The commissioner shall determine the timing 
391.13 	and form of the application for the program.
391.14 	(b) Eligible recipients of funding under this section include:
391.15 	(1) federally recognized American Indian Tribes or bands in Minnesota as defined in 
391.16 	section 10.65; or
391.17 	(2) nonprofit organizations or fiscal sponsors with a majority American Indian board of 
391.18 	directors.
391.19 	(c) Funding for American Indian Tribes or Bands must be allocated by a formula 
391.20 	determined by the commissioner. Funding for nonprofit organizations or fiscal sponsors 
391.21 	must be awarded through a competitive grant process.
391.22 		Subd. 3.Allowable uses of money. Recipients shall use money provided under this 
391.23 	section to promote food security for American Indian communities by:
391.24 	(1) planning for sustainable food systems;
391.25 	(2) implementing food security programs, including but not limited to technology to 
391.26 	facilitate no-contact or low-contact food distribution and outreach models;
391.27 	(3) providing culturally relevant training for building food access;
391.28 	(4) purchasing, producing, processing, transporting, storing, and coordinating the 
391.29 	distribution of food, including culturally relevant food; and
391.30 	(5) purchasing seeds, plants, equipment, or materials to preserve, procure, or grow food.
391.31 		Subd. 4.Reporting.  Recipients shall report on the use of American Indian food 
391.32 	sovereignty funding program money under this section to the commissioner.
392.1 	The commissioner shall determine the timing and form required for the reports.

392.2 	Sec. 10. Minnesota Statutes 2022, section 256E.35, subdivision 1, is amended to read:
392.3 		Subdivision 1.Establishment. The Minnesota family assets for independence initiative 
392.4 	is established to provide incentives for low-income families to accrue assets for education, 
392.5 	housing, vehicles, emergencies, and economic development purposes.

392.6 	Sec. 11. Minnesota Statutes 2022, section 256E.35, subdivision 2, is amended to read:
392.7 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
392.8 	(b) "Eligible educational institution" means the following:
392.9 	(1) an institution of higher education described in section 101 or 102 of the Higher 
392.10 	Education Act of 1965; or
392.11 	(2) an area vocational education school, as defined in subparagraph (C) or (D) of United 
392.12 	States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and 
392.13 	Applied Technology Education Act), which is located within any state, as defined in United 
392.14 	States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the 
392.15 	extent section 2302 is in effect on August 1, 2008.
392.16 	(c) "Family asset account" means a savings account opened by a household participating 
392.17 	in the Minnesota family assets for independence initiative.
392.18 	(d) "Fiduciary organization" means:
392.19 	(1) a community action agency that has obtained recognition under section 256E.31;
392.20 	(2) a federal community development credit union serving the seven-county metropolitan 
392.21 	area; or
392.22 	(3) a women-oriented economic development agency serving the seven-county 
392.23 	metropolitan area.;
392.24 	(4) a federally recognized Tribal Nation; or
392.25 	(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue 
392.26 	Code.
392.27 	(e) "Financial coach" means a person who:
392.28 	(1) has completed an intensive financial literacy training workshop that includes 
392.29 	curriculum on budgeting to increase savings, debt reduction and asset building, building a 
392.30 	good credit rating, and consumer protection;
393.1 	(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) 
393.2 	network training meetings under FAIM program supervision; and
393.3 	(3) provides financial coaching to program participants under subdivision 4a.
393.4 	(f) "Financial institution" means a bank, bank and trust, savings bank, savings association, 
393.5 	or credit union, the deposits of which are insured by the Federal Deposit Insurance 
393.6 	Corporation or the National Credit Union Administration.
393.7 	(g) "Household" means all individuals who share use of a dwelling unit as primary 
393.8 	quarters for living and eating separate from other individuals.
393.9 	(h) "Permissible use" means:
393.10 	(1) postsecondary educational expenses at an eligible educational institution as defined 
393.11 	in paragraph (b), including books, supplies, and equipment required for courses of instruction;
393.12 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including 
393.13 	any usual or reasonable settlement, financing, or other closing costs;
393.14 	(3) business capitalization expenses for expenditures on capital, plant, equipment, working 
393.15 	capital, and inventory expenses of a legitimate business pursuant to a business plan approved 
393.16 	by the fiduciary organization;
393.17 	(4) acquisition costs of a principal residence within the meaning of section 1034 of the 
393.18 	Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase 
393.19 	price applicable to the residence determined according to section 143(e)(2) and (3) of the 
393.20 	Internal Revenue Code of 1986; and
393.21 	(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization.;
393.22 	(6) contributions to an emergency savings account; and
393.23 	(7) contributions to a Minnesota 529 savings plan.

393.24 	Sec. 12. Minnesota Statutes 2022, section 256E.35, subdivision 3, is amended to read:
393.25 		Subd. 3.Grants awarded. The commissioner shall allocate funds to participating 
393.26 	fiduciary organizations to provide family asset services. Grant awards must be based on a 
393.27 	plan submitted by a statewide organization representing fiduciary organizations. The 
393.28 	statewide organization must ensure that any interested unrepresented fiduciary organization 
393.29 	have input into the development of the plan. The plan must equitably distribute funds to 
393.30 	achieve geographic balance and document the capacity of participating fiduciary 
394.1 	organizations to manage the program. A portion of funds appropriated for this section may 
394.2 	be expended on evaluation of the Minnesota family assets for independence initiative.

394.3 	Sec. 13. Minnesota Statutes 2022, section 256E.35, subdivision 4a, is amended to read:
394.4 		Subd. 4a.Financial coaching. A financial coach shall provide the following to program 
394.5 	participants:
394.6 	(1) financial education relating to budgeting, debt reduction, asset-specific training, 
394.7 	credit building, and financial stability activities;
394.8 	(2) asset-specific training related to buying a home or vehicle, acquiring postsecondary 
394.9 	education, or starting or expanding a small business, saving for emergencies, or saving for 
394.10 	a child's education; and
394.11 	(3) financial stability education and training to improve and sustain financial security.

394.12 	Sec. 14. Minnesota Statutes 2022, section 256E.35, subdivision 6, is amended to read:
394.13 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
394.14 	participating household must transfer funds withdrawn from a family asset account to its 
394.15 	matching fund custodial account held by the fiscal agent, according to the family asset 
394.16 	agreement. The fiscal agent must determine if the match request is for a permissible use 
394.17 	consistent with the household's family asset agreement.
394.18 	(b) The fiscal agent must ensure the household's custodial account contains the applicable 
394.19 	matching funds to match the balance in the household's account, including interest, on at 
394.20 	least a quarterly basis and at the time of an approved withdrawal. Matches must be a 
394.21 	contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from 
394.22 	the family asset account not to exceed a $6,000 $12,000 lifetime limit.
394.23 	(c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for 
394.24 	Independence Act of 1998, and a participating fiduciary organization is awarded a grant 
394.25 	under that act, participating households with that fiduciary organization must be provided 
394.26 	matches as follows:
394.27 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of 
394.28 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit; 
394.29 	and
394.30 	(2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of 
394.31 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit.
395.1 	(d) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
395.2 	direct payment to the vendor of the goods or services for the permissible use.

395.3 	Sec. 15. Minnesota Statutes 2022, section 256E.35, subdivision 7, is amended to read:
395.4 		Subd. 7.Program reporting. The fiscal agent on behalf of each fiduciary organization 
395.5 	participating in a family assets for independence initiative must report quarterly to the 
395.6 	commissioner of human services identifying the participants with accounts,; the number of 
395.7 	accounts,; the amount of savings and matches for each participant's account,; the uses of 
395.8 	the account, and; the number of businesses, homes, vehicles, and educational services paid 
395.9 	for with money from the account,; and the amount of contributions to Minnesota 529 savings 
395.10 	plans and emergency savings accounts, as well as other information that may be required 
395.11 	for the commissioner to administer the program and meet federal TANF reporting 
395.12 	requirements.

395.13 	Sec. 16. Minnesota Statutes 2022, section 256I.03, subdivision 7, is amended to read:
395.14 		Subd. 7.Countable income. (a) "Countable income" means all income received by an 
395.15 	applicant or recipient as described under section 256P.06, less any applicable exclusions or 
395.16 	disregards. For a recipient of any cash benefit from the SSI program, countable income 
395.17 	means the SSI benefit limit in effect at the time the person is a recipient of housing support, 
395.18 	less the medical assistance personal needs allowance under section 256B.35. If the SSI limit 
395.19 	or benefit is reduced for a person due to events other than receipt of additional income, 
395.20 	countable income means actual income less any applicable exclusions and disregards.
395.21 	(b) For a recipient of any cash benefit from the SSI program who does not live in a 
395.22 	setting described in section 256I.04, subdivision 2a, paragraph (b), clause (2), countable 
395.23 	income equals the SSI benefit limit in effect at the time the person is a recipient of housing 
395.24 	support, less the personal needs allowance under section 256B.35. If the SSI limit or benefit 
395.25 	is reduced for a person due to events other than receipt of additional income, countable 
395.26 	income equals actual income less any applicable exclusions and disregards.
395.27 	(c) For a recipient of any cash benefit from the SSI program who lives in a setting as 
395.28 	described in section 256I.04, subdivision 2a, paragraph (b), clause (2), countable income 
395.29 	equals 30 percent of the SSI benefit limit in effect at the time a person is a recipient of 
395.30 	housing support. If the SSI limit or benefit is reduced for a person due to events other than 
395.31 	receipt of additional income, countable income equals 30 percent of the actual income less 
395.32 	any applicable exclusions and disregards. For recipients under this paragraph, the personal 
395.33 	needs allowance described in section 256B.35 does not apply.
396.1 	(d) Notwithstanding the earned income disregard described in section 256P.03, for a 
396.2 	recipient of unearned income as defined in section 256P.06, subdivision 3, clause (2), other 
396.3 	than SSI and the general assistance personal needs allowance, who lives in a setting described 
396.4 	in section 256I.04, subdivision 2a, paragraph (b), clause (2), countable income equals 30 
396.5 	percent of the recipient's total income after applicable exclusions and disregards. Total 
396.6 	income includes any unearned income as defined in section 256P.06 and any earned income 
396.7 	in the month the person is a recipient of housing support. For recipients under this paragraph, 
396.8 	the personal needs allowance described in section 256B.35 does not apply.
396.9 	(e) For a recipient who lives in a setting as described in section 256I.04, subdivision 2a, 
396.10 	paragraph (b), clause (2), and receives general assistance, the personal needs allowance 
396.11 	described in section 256B.35 is not countable unearned income.

396.12 	EFFECTIVE DATE. This section is effective October 1, 2024.

396.13 	Sec. 17. Minnesota Statutes 2022, section 256I.03, subdivision 13, is amended to read:
396.14 		Subd. 13.Prospective budgeting. "Prospective budgeting" means estimating the amount 
396.15 	of monthly income a person will have in the payment month has the meaning given in 
396.16 	section 256P.01, subdivision 9.

396.17 	EFFECTIVE DATE. This section is effective March 1, 2025.

396.18 	Sec. 18. Minnesota Statutes 2022, section 256I.06, subdivision 6, is amended to read:
396.19 		Subd. 6.Reports. Recipients must report changes in circumstances according to section 
396.20 	256P.07that affect eligibility or housing support payment amounts, other than changes in 
396.21 	earned income, within ten days of the change. Recipients with countable earned income 
396.22 	must complete a household report form at least once every six months according to section 
396.23 	256P.10. If the report form is not received before the end of the month in which it is due, 
396.24 	the county agency must terminate eligibility for housing support payments. The termination 
396.25 	shall be effective on the first day of the month following the month in which the report was 
396.26 	due. If a complete report is received within the month eligibility was terminated, the 
396.27 	individual is considered to have continued an application for housing support payment 
396.28 	effective the first day of the month the eligibility was terminated.

396.29 	EFFECTIVE DATE. This section is effective March 1, 2025.

397.1 	Sec. 19. Minnesota Statutes 2022, section 256I.06, is amended by adding a subdivision 
397.2 	to read:
397.3 		Subd. 6a.When to terminate assistance. An agency must terminate benefits when the 
397.4 	assistance unit fails to submit the household report form before the end of the month in 
397.5 	which it is due. The termination shall be effective on the first day of the month following 
397.6 	the month in which the report was due. If the assistance unit submits the household report 
397.7 	form within 30 days of the termination of benefits and remains eligible, benefits must be 
397.8 	reinstated and made available retroactively for the full benefit month.

397.9 	EFFECTIVE DATE. This section is effective March 1, 2025.

397.10 	Sec. 20. Minnesota Statutes 2022, section 256I.06, subdivision 8, is amended to read:
397.11 		Subd. 8.Amount of housing support payment. (a) The amount of a room and board 
397.12 	payment to be made on behalf of an eligible individual is determined by subtracting the 
397.13 	individual's countable income under section 256I.04, subdivision 1, for a whole calendar 
397.14 	month from the room and board rate for that same month. The housing support payment is 
397.15 	determined by multiplying the housing support rate times the period of time the individual 
397.16 	was a resident or temporarily absent under section 256I.05, subdivision 2a.
397.17 	(b) For an individual with earned income under paragraph (a), prospective budgeting 
397.18 	according to section 256P.09 must be used to determine the amount of the individual's 
397.19 	payment for the following six-month period. An increase in income shall not affect an 
397.20 	individual's eligibility or payment amount until the month following the reporting month. 
397.21 	A decrease in income shall be effective the first day of the month after the month in which 
397.22 	the decrease is reported.
397.23 	(c) For an individual who receives housing support payments under section 256I.04, 
397.24 	subdivision 1, paragraph (c), the amount of the housing support payment is determined by 
397.25 	multiplying the housing support rate times the period of time the individual was a resident.

397.26 	EFFECTIVE DATE. This section is effective March 1, 2025.

397.27 	Sec. 21. Minnesota Statutes 2022, section 256J.08, subdivision 71, is amended to read:
397.28 		Subd. 71.Prospective budgeting. "Prospective budgeting" means a method of 
397.29 	determining the amount of the assistance payment in which the budget month and payment 
397.30 	month are the same has the meaning given in section 256P.01, subdivision 9.

397.31 	EFFECTIVE DATE. This section is effective March 1, 2025.

398.1 	Sec. 22. Minnesota Statutes 2022, section 256J.08, subdivision 79, is amended to read:
398.2 		Subd. 79.Recurring income. "Recurring income" means a form of income which is:
398.3 	(1) received periodically, and may be received irregularly when receipt can be anticipated 
398.4 	even though the date of receipt cannot be predicted; and
398.5 	(2) from the same source or of the same type that is received and budgeted in a 
398.6 	prospective month and is received in one or both of the first two retrospective months.

398.7 	EFFECTIVE DATE. This section is effective March 1, 2025.

398.8 	Sec. 23. Minnesota Statutes 2022, section 256J.11, subdivision 1, is amended to read:
398.9 		Subdivision 1.General citizenship requirements. (a) To be eligible for MFIP, a member 
398.10 	of the assistance unit must be a citizen of the United States, a qualified noncitizen as defined 
398.11 	in section 256J.08, or a noncitizen who is otherwise residing lawfully in the United States.
398.12 	(b) A qualified noncitizen who entered the United States on or after August 22, 1996, 
398.13 	is eligible for MFIP. However, TANF dollars cannot be used to fund the MFIP benefits for 
398.14 	an individual under this paragraph for a period of five years after the date of entry unless 
398.15 	the qualified noncitizen meets one of the following criteria:
398.16 	(1) was admitted to the United States as a refugee under United States Code, title 8, 
398.17 	section 1157;
398.18 	(2) was granted asylum under United States Code, title 8, section 1158;
398.19 	(3) was granted withholding of deportation under the United States Code, title 8, section 
398.20 	1253(h);
398.21 	(4) is a veteran of the United States armed forces with an honorable discharge for a 
398.22 	reason other than noncitizen status, or is a spouse or unmarried minor dependent child of 
398.23 	the same; or
398.24 	(5) is an individual on active duty in the United States armed forces, other than for 
398.25 	training, or is a spouse or unmarried minor dependent child of the same.
398.26 	(c) A person who is not a qualified noncitizen but who is otherwise residing lawfully in 
398.27 	the United States is eligible for MFIP. However, TANF dollars cannot be used to fund the 
398.28 	MFIP benefits for an individual under this paragraph.
398.29 	(d) For purposes of this subdivision, a nonimmigrant in one or more of the classes listed 
398.30 	in United States Code, title 8, section 1101(a)(15)(A)-(S) and (V), or an undocumented 
399.1 	immigrant who resides in the United States without the approval or acquiescence of the 
399.2 	United States Citizenship and Immigration Services, is not eligible for MFIP.

399.3 	EFFECTIVE DATE. This section is effective March 1, 2024, or upon federal approval, 
399.4 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
399.5 	when federal approval is obtained.

399.6 	Sec. 24. Minnesota Statutes 2022, section 256J.21, subdivision 3, is amended to read:
399.7 		Subd. 3.Initial income test. (a) The agency shall determine initial eligibility by 
399.8 	considering all earned and unearned income as defined in section 256P.06. To be eligible 
399.9 	for MFIP, the assistance unit's countable income minus the earned income disregards in 
399.10 	paragraph (a) and section 256P.03 must be below the family wage level according to section 
399.11 	256J.24, subdivision 7, for that size assistance unit.
399.12 	(a) (b) The initial eligibility determination must disregard the following items:
399.13 	(1) the earned income disregard as determined in section 256P.03;
399.14 	(2) dependent care costs must be deducted from gross earned income for the actual 
399.15 	amount paid for dependent care up to a maximum of $200 per month for each child less 
399.16 	than two years of age, and $175 per month for each child two years of age and older;
399.17 	(3) all payments made according to a court order for spousal support or the support of 
399.18 	children not living in the assistance unit's household shall be disregarded from the income 
399.19 	of the person with the legal obligation to pay support; and
399.20 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child under 
399.21 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
399.22 	caregiver according to section 256J.36.
399.23 	(b) After initial eligibility is established, (c) The income test is for a six-month period.
399.24 	The assistance payment calculation is based on the monthly income test prospective budgeting 
399.25 	according to section 256P.09.

399.26 	EFFECTIVE DATE. This section is effective March 1, 2025.

399.27 	Sec. 25. Minnesota Statutes 2022, section 256J.21, subdivision 4, is amended to read:
399.28 		Subd. 4.Monthly Income test and determination of assistance payment. The county 
399.29 	agency shall determine ongoing eligibility and the assistance payment amount according 
399.30 	to the monthly income test. To be eligible for MFIP, the result of the computations in 
399.31 	paragraphs (a) to (e) applied to prospective budgeting must be at least $1.
400.1 	(a) Apply an income disregard as defined in section 256P.03, to gross earnings and 
400.2 	subtract this amount from the family wage level. If the difference is equal to or greater than 
400.3 	the MFIP transitional standard, the assistance payment is equal to the MFIP transitional 
400.4 	standard. If the difference is less than the MFIP transitional standard, the assistance payment 
400.5 	is equal to the difference. The earned income disregard in this paragraph must be deducted 
400.6 	every month there is earned income.
400.7 	(b) All payments made according to a court order for spousal support or the support of 
400.8 	children not living in the assistance unit's household must be disregarded from the income 
400.9 	of the person with the legal obligation to pay support.
400.10 	(c) An allocation for the unmet need of an ineligible spouse or an ineligible child under 
400.11 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
400.12 	caregiver must be made according to section 256J.36.
400.13 	(d) Subtract unearned income dollar for dollar from the MFIP transitional standard to 
400.14 	determine the assistance payment amount.
400.15 	(e) When income is both earned and unearned, the amount of the assistance payment 
400.16 	must be determined by first treating gross earned income as specified in paragraph (a). After 
400.17 	determining the amount of the assistance payment under paragraph (a), unearned income 
400.18 	must be subtracted from that amount dollar for dollar to determine the assistance payment 
400.19 	amount.
400.20 	(f) When the monthly income is greater than the MFIP transitional standard after 
400.21 	deductions and the income will only exceed the standard for one month, the county agency 
400.22 	must suspend the assistance payment for the payment month.

400.23 	EFFECTIVE DATE. This section is effective March 1, 2025.

400.24 	Sec. 26. Minnesota Statutes 2022, section 256J.26, subdivision 1, is amended to read:
400.25 		Subdivision 1.Person convicted of drug offenses. (a) An individual who has been 
400.26 	convicted of a felony level drug offense committed during the previous ten years from the 
400.27 	date of application or recertification is subject to the following:
400.28 	(1) Benefits for the entire assistance unit must be paid in vendor form for shelter and 
400.29 	utilities during any time the applicant is part of the assistance unit.
400.30 	(2) The convicted applicant or participant shall may be subject to random drug testing 
400.31 	as a condition of continued eligibility and. Following any positive test for an illegal controlled 
401.1 	substance is subject to the following sanctions:, the county must provide information about 
401.2 	substance use disorder treatment programs to the applicant or participant.
401.3 	(i) for failing a drug test the first time, the residual amount of the participant's grant after 
401.4 	making vendor payments for shelter and utility costs, if any, must be reduced by an amount 
401.5 	equal to 30 percent of the MFIP standard of need for an assistance unit of the same size. 
401.6 	When a sanction under this subdivision is in effect, the job counselor must attempt to meet 
401.7 	with the person face-to-face. During the face-to-face meeting, the job counselor must explain 
401.8 	the consequences of a subsequent drug test failure and inform the participant of the right to 
401.9 	appeal the sanction under section 256J.40. If a face-to-face meeting is not possible, the 
401.10 	county agency must send the participant a notice of adverse action as provided in section 
401.11 	256J.31, subdivisions 4 and 5, and must include the information required in the face-to-face 
401.12 	meeting; or
401.13 	(ii) for failing a drug test two times, the participant is permanently disqualified from 
401.14 	receiving MFIP assistance, both the cash and food portions. The assistance unit's MFIP 
401.15 	grant must be reduced by the amount which would have otherwise been made available to 
401.16 	the disqualified participant. Disqualification under this item does not make a participant 
401.17 	ineligible for the Supplemental Nutrition Assistance Program (SNAP). Before a 
401.18 	disqualification under this provision is imposed, the job counselor must attempt to meet 
401.19 	with the participant face-to-face. During the face-to-face meeting, the job counselor must 
401.20 	identify other resources that may be available to the participant to meet the needs of the 
401.21 	family and inform the participant of the right to appeal the disqualification under section 
401.22 	256J.40. If a face-to-face meeting is not possible, the county agency must send the participant 
401.23 	a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5, and must 
401.24 	include the information required in the face-to-face meeting.
401.25 	(3) A participant who fails a drug test the first time and is under a sanction due to other 
401.26 	MFIP program requirements is considered to have more than one occurrence of 
401.27 	noncompliance and is subject to the applicable level of sanction as specified under section 
401.28 	256J.46, subdivision 1, paragraph (d).
401.29 	(b) Applicants requesting only SNAP benefits or participants receiving only SNAP 
401.30 	benefits, who have been convicted of a felony-level drug offense that occurred after July 
401.31 	1, 1997, during the previous ten years from the date of application or recertification may, 
401.32 	if otherwise eligible, receive SNAP benefits if. The convicted applicant or participant is
401.33 	may be subject to random drug testing as a condition of continued eligibility. Following a 
401.34 	positive test for an illegal controlled substance, the applicant is subject to the following 
402.1 	sanctions: county must provide information about substance use disorder treatment programs 
402.2 	to the applicant or participant.
402.3 	(1) for failing a drug test the first time, SNAP benefits shall be reduced by an amount 
402.4 	equal to 30 percent of the applicable SNAP benefit allotment. When a sanction under this 
402.5 	clause is in effect, a job counselor must attempt to meet with the person face-to-face. During 
402.6 	the face-to-face meeting, a job counselor must explain the consequences of a subsequent 
402.7 	drug test failure and inform the participant of the right to appeal the sanction under section 
402.8 	256J.40. If a face-to-face meeting is not possible, a county agency must send the participant 
402.9 	a notice of adverse action as provided in section 256J.31, subdivisions 4 and 5, and must 
402.10 	include the information required in the face-to-face meeting; and
402.11 	(2) for failing a drug test two times, the participant is permanently disqualified from 
402.12 	receiving SNAP benefits. Before a disqualification under this provision is imposed, a job 
402.13 	counselor must attempt to meet with the participant face-to-face. During the face-to-face 
402.14 	meeting, the job counselor must identify other resources that may be available to the 
402.15 	participant to meet the needs of the family and inform the participant of the right to appeal 
402.16 	the disqualification under section 256J.40. If a face-to-face meeting is not possible, a county 
402.17 	agency must send the participant a notice of adverse action as provided in section 256J.31, 
402.18 	subdivisions 4 and 5, and must include the information required in the face-to-face meeting.
402.19 	(c) For the purposes of this subdivision, "drug offense" means an offense a conviction
402.20 	that occurred during the previous ten years from the date of application or recertification 
402.21 	of sections 152.021 to 152.025, 152.0261, 152.0262, 152.096, or 152.137. Drug offense 
402.22 	also means a conviction in another jurisdiction of the possession, use, or distribution of a 
402.23 	controlled substance, or conspiracy to commit any of these offenses, if the offense conviction
402.24 	occurred during the previous ten years from the date of application or recertification and 
402.25 	the conviction is a felony offense in that jurisdiction, or in the case of New Jersey, a high 
402.26 	misdemeanor.

402.27 	EFFECTIVE DATE. This section is effective August 1, 2023.

402.28 	Sec. 27. Minnesota Statutes 2022, section 256J.33, subdivision 1, is amended to read:
402.29 		Subdivision 1.Determination of eligibility. (a) A county agency must determine MFIP 
402.30 	eligibility prospectively for a payment month based on retrospectively assessing income 
402.31 	and the county agency's best estimate of the circumstances that will exist in the payment 
402.32 	month.
403.1 	(b) Except as described in section 256J.34, subdivision 1, when prospective eligibility 
403.2 	exists, A county agency must calculate the amount of the assistance payment using 
403.3 	retrospective prospective budgeting. To determine MFIP eligibility and the assistance 
403.4 	payment amount, a county agency must apply countable income, described in sections 
403.5 	256P.06 and 256J.37, subdivisions 3 to 10 9, received by members of an assistance unit or 
403.6 	by other persons whose income is counted for the assistance unit, described under sections 
403.7 	256J.37, subdivisions 1 to 2, and 256P.06, subdivision 1.
403.8 	(c) This income must be applied to the MFIP standard of need or family wage level 
403.9 	subject to this section and sections 256J.34 to 256J.36. Countable income as described in 
403.10 	section 256P.06, subdivision 3, received in a calendar month must be applied to the needs 
403.11 	of an assistance unit.
403.12 	(d) An assistance unit is not eligible when the countable income equals or exceeds the 
403.13 	MFIP standard of need or the family wage level for the assistance unit.

403.14 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
403.15 	to paragraph (b) striking "10" and inserting "9" is effective July 1, 2024.

403.16 	Sec. 28. Minnesota Statutes 2022, section 256J.33, subdivision 2, is amended to read:
403.17 		Subd. 2.Prospective eligibility. An agency must determine whether the eligibility 
403.18 	requirements that pertain to an assistance unit, including those in sections 256J.11 to 256J.15
403.19 	and 256P.02, will be met prospectively for the payment month period. Except for the 
403.20 	provisions in section 256J.34, subdivision 1, The income test will be applied retrospectively
403.21 	prospectively.

403.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

403.23 	Sec. 29. Minnesota Statutes 2022, section 256J.35, is amended to read:
403.24 	256J.35 AMOUNT OF ASSISTANCE PAYMENT.
403.25 	Except as provided in paragraphs (a) to (d) (e), the amount of an assistance payment is 
403.26 	equal to the difference between the MFIP standard of need or the Minnesota family wage 
403.27 	level in section 256J.24 and countable income.
403.28 	(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing 
403.29 	assistance grant of $110 per month, unless:
404.1 	(1) the housing assistance unit is currently receiving public and assisted rental subsidies 
404.2 	provided through the Department of Housing and Urban Development (HUD) and is subject 
404.3 	to section 256J.37, subdivision 3a; or
404.4 	(2) the assistance unit is a child-only case under section 256J.88.
404.5 	(b) On October 1 of each year, the commissioner shall adjust the MFIP housing assistance 
404.6 	grant in paragraph (a) for inflation based on the CPI-U for the prior calendar year.
404.7 	(c) When MFIP eligibility exists for the month of application, the amount of the assistance 
404.8 	payment for the month of application must be prorated from the date of application or the 
404.9 	date all other eligibility factors are met for that applicant, whichever is later. This provision 
404.10 	applies when an applicant loses at least one day of MFIP eligibility.
404.11 	(c) (d) MFIP overpayments to an assistance unit must be recouped according to section 
404.12 	256P.08, subdivision 6.
404.13 	(d) (e) An initial assistance payment must not be made to an applicant who is not eligible 
404.14 	on the date payment is made.

404.15 	EFFECTIVE DATE. This section is effective October 1, 2024.

404.16 	Sec. 30. Minnesota Statutes 2022, section 256J.37, subdivision 3, is amended to read:
404.17 		Subd. 3.Earned income of wage, salary, and contractual employees. The agency 
404.18 	must include gross earned income less any disregards in the initial and monthly income 
404.19 	test. Gross earned income received by persons employed on a contractual basis must be 
404.20 	prorated over the period covered by the contract even when payments are received over a 
404.21 	lesser period of time.

404.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

404.23 	Sec. 31. Minnesota Statutes 2022, section 256J.37, subdivision 3a, is amended to read:
404.24 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the agency 
404.25 	shall count $50 of the value of public and assisted rental subsidies provided through the 
404.26 	Department of Housing and Urban Development (HUD) as unearned income to the cash 
404.27 	portion of the MFIP grant. The full amount of the subsidy must be counted as unearned 
404.28 	income when the subsidy is less than $50. The income from this subsidy shall be budgeted 
404.29 	according to section 256J.34 256P.09.
404.30 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which 
404.31 	includes a participant who is:
405.1 	(1) age 60 or older;
405.2 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
405.3 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
405.4 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
405.5 	suitable employment; or
405.6 	(3) a caregiver whose presence in the home is required due to the illness or incapacity 
405.7 	of another member in the assistance unit, a relative in the household, or a foster child in the 
405.8 	household when the illness or incapacity and the need for the participant's presence in the 
405.9 	home has been certified by a qualified professional and is expected to continue for more 
405.10 	than 30 days.
405.11 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where 
405.12 	the parental caregiver is an SSI participant.

405.13 	EFFECTIVE DATE. This section is effective March 1, 2025.

405.14 	Sec. 32. Minnesota Statutes 2022, section 256J.425, subdivision 1, is amended to read:
405.15 		Subdivision 1.Eligibility. (a) To be eligible for a hardship extension, a participant in 
405.16 	an assistance unit subject to the time limit under section 256J.42, subdivision 1, must be in 
405.17 	compliance in the participant's 60th counted month. For purposes of determining eligibility 
405.18 	for a hardship extension, a participant is in compliance in any month that the participant 
405.19 	has not been sanctioned. In order to maintain eligibility for any of the hardship extension 
405.20 	categories a participant shall develop and comply with either an employment plan or a 
405.21 	family stabilization services plan, whichever is appropriate.
405.22 	(b) If one participant in a two-parent assistance unit is determined to be ineligible for a 
405.23 	hardship extension, the county shall give the assistance unit the option of disqualifying the 
405.24 	ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 
405.25 	one-parent assistance unit.
405.26 	(c) Prior to denying an extension, the county must review the sanction status and 
405.27 	determine whether the sanction is appropriate or if good cause exists under section 256J.57. 
405.28 	If the sanction was inappropriately applied or the participant is granted a good cause 
405.29 	exception before the end of month 60, the participant shall be considered for an extension.

405.30 	EFFECTIVE DATE. This section is effective May 1, 2026.

406.1 	Sec. 33. Minnesota Statutes 2022, section 256J.425, subdivision 4, is amended to read:
406.2 		Subd. 4.Employed participants. (a) An assistance unit subject to the time limit under 
406.3 	section 256J.42, subdivision 1, is eligible to receive assistance under a hardship extension 
406.4 	if the participant who reached the time limit belongs to:
406.5 	(1) a one-parent assistance unit in which the participant is participating in work activities 
406.6 	for at least 30 hours per week, of which an average of at least 25 hours per week every 
406.7 	month are spent participating in employment;
406.8 	(2) a two-parent assistance unit in which the participants are participating in work 
406.9 	activities for at least 55 hours per week, of which an average of at least 45 hours per week 
406.10 	every month are spent participating in employment; or
406.11 	(3) an assistance unit in which a participant is participating in employment for fewer 
406.12 	hours than those specified in clause (1), and the participant submits verification from a 
406.13 	qualified professional, in a form acceptable to the commissioner, stating that the number 
406.14 	of hours the participant may work is limited due to illness or disability, as long as the 
406.15 	participant is participating in employment for at least the number of hours specified by the 
406.16 	qualified professional. The participant must be following the treatment recommendations 
406.17 	of the qualified professional providing the verification. The commissioner shall develop a 
406.18 	form to be completed and signed by the qualified professional, documenting the diagnosis 
406.19 	and any additional information necessary to document the functional limitations of the 
406.20 	participant that limit work hours. If the participant is part of a two-parent assistance unit, 
406.21 	the other parent must be treated as a one-parent assistance unit for purposes of meeting the 
406.22 	work requirements under this subdivision.
406.23 	(b) For purposes of this section, employment means:
406.24 	(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1);
406.25 	(2) subsidized employment under section 256J.49, subdivision 13, clause (2);
406.26 	(3) on-the-job training under section 256J.49, subdivision 13, clause (2);
406.27 	(4) an apprenticeship under section 256J.49, subdivision 13, clause (1);
406.28 	(5) supported work under section 256J.49, subdivision 13, clause (2);
406.29 	(6) a combination of clauses (1) to (5); or
406.30 	(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination 
406.31 	with paid employment.
407.1 	(c) If a participant is complying with a child protection plan under chapter 260C, the 
407.2 	number of hours required under the child protection plan count toward the number of hours 
407.3 	required under this subdivision.
407.4 	(d) The county shall provide the opportunity for subsidized employment to participants 
407.5 	needing that type of employment within available appropriations.
407.6 	(e) To be eligible for a hardship extension for employed participants under this 
407.7 	subdivision, a participant must be in compliance for at least ten out of the 12 months the 
407.8 	participant received MFIP immediately preceding the participant's 61st month on assistance. 
407.9 	If ten or fewer months of eligibility for TANF assistance remain at the time the participant 
407.10 	from another state applies for assistance, the participant must be in compliance every month.
407.11 	(f) (e) The employment plan developed under section 256J.521, subdivision 2, for 
407.12 	participants under this subdivision must contain at least the minimum number of hours 
407.13 	specified in paragraph (a) for the purpose of meeting the requirements for an extension 
407.14 	under this subdivision. The job counselor and the participant must sign the employment 
407.15 	plan to indicate agreement between the job counselor and the participant on the contents of 
407.16 	the plan.
407.17 	(g) (f) Participants who fail to meet the requirements in paragraph (a), without eligibility 
407.18 	for another hardship extension or good cause under section 256J.57, shall be sanctioned
407.19 	subject to sanction or permanently disqualified under subdivision 6. Good cause may only 
407.20 	be granted for that portion of the month for which the good cause reason applies case closure. 
407.21 	Participants must meet all remaining requirements in the approved employment plan or be 
407.22 	subject to sanction or permanent disqualification case closure.
407.23 	(h) (g) If the noncompliance with an employment plan is due to the involuntary loss of 
407.24 	employment, the participant is exempt from the hourly employment requirement under this 
407.25 	subdivision for one month. Participants must meet all remaining requirements in the approved 
407.26 	employment plan or be subject to sanction or permanent disqualification case closure if 
407.27 	ineligible for another hardship extension.

407.28 	EFFECTIVE DATE. This section is effective May 1, 2026.

407.29 	Sec. 34. Minnesota Statutes 2022, section 256J.425, subdivision 5, is amended to read:
407.30 		Subd. 5.Accrual of certain exempt months. (a) Participants who are not eligible for 
407.31 	assistance under a hardship extension under this section shall be eligible for a hardship 
407.32 	extension for a period of time equal to the number of months that were counted toward the 
407.33 	60-month time limit while the participant was a caregiver with a child or an adult in the 
408.1 	household who meets the disability or medical criteria for home care services under section 
408.2 	256B.0651, subdivision 1, paragraph (c), or a home and community-based waiver services 
408.3 	program under chapter 256B, or meets the criteria for severe emotional disturbance under 
408.4 	section 245.4871, subdivision 6, or for serious and persistent mental illness under section 
408.5 	245.462, subdivision 20, paragraph (c), and who was subject to the requirements in section 
408.6 	256J.561, subdivision 2.
408.7 	(b) A participant who received MFIP assistance that counted toward the 60-month time 
408.8 	limit while the participant met the state time limit exemption criteria under section 256J.42, 
408.9 	subdivision 4 or 5, is eligible for assistance under a hardship extension for a period of time 
408.10 	equal to the number of months that were counted toward the 60-month time limit while the 
408.11 	participant met the state time limit exemption criteria under section 256J.42, subdivision 4
408.12 	or 5.
408.13 	(c) After the accrued months have been exhausted, the county agency must determine 
408.14 	if the assistance unit is eligible for an extension under another extension category in 
408.15 	subdivision 2, 3, or 4.
408.16 	(d) At the time of the case review, a county agency must explain to the participant the 
408.17 	basis for receiving a hardship extension based on the accrual of exempt months. The 
408.18 	participant must provide documentation necessary to enable the county agency to determine 
408.19 	whether the participant is eligible to receive a hardship extension based on the accrual of 
408.20 	exempt months or authorize a county agency to verify the information.
408.21 	(e) While receiving extended MFIP assistance under this subdivision, a participant is 
408.22 	subject to the MFIP policies that apply to participants during the first 60 months of MFIP, 
408.23 	unless the participant is a member of a two-parent family in which one parent is extended 
408.24 	under subdivision 3 or 4. For two-parent families in which one parent is extended under 
408.25 	subdivision 3 or 4, the sanction provisions in subdivision 6 shall apply.

408.26 	EFFECTIVE DATE. This section is effective May 1, 2026.

408.27 	Sec. 35. Minnesota Statutes 2022, section 256J.425, subdivision 7, is amended to read:
408.28 		Subd. 7.Status of disqualified participants closed cases. (a) An assistance unit that 
408.29 	is disqualified has its case closed under subdivision 6, paragraph (a), section 256J.46 may 
408.30 	be approved for MFIP if the participant complies with MFIP program requirements and 
408.31 	demonstrates compliance for up to one month. No assistance shall be paid during this period.
408.32 	(b) An assistance unit that is disqualified has its case closed under subdivision 6, 
408.33 	paragraph (a), section 256J.46 and that reapplies under paragraph (a) is subject to sanction 
409.1 	under section 256J.46, subdivision 1, paragraph (c), clause (1), for a first occurrence of 
409.2 	noncompliance. A subsequent occurrence of noncompliance results in a permanent 
409.3 	disqualification.
409.4 	(c) If one participant in a two-parent assistance unit receiving assistance under a hardship 
409.5 	extension under subdivision 3 or 4 is determined to be out of compliance with the 
409.6 	employment and training services requirements under sections 256J.521 to 256J.57, the 
409.7 	county shall give the assistance unit the option of disqualifying the noncompliant participant 
409.8 	from MFIP. In that case, the assistance unit shall be treated as a one-parent assistance unit 
409.9 	for the purposes of meeting the work requirements under subdivision 4. An applicant who 
409.10 	is disqualified from receiving assistance under this paragraph may reapply under paragraph 
409.11 	(a). If a participant is disqualified from MFIP under this subdivision a second time, the 
409.12 	participant is permanently disqualified from MFIP.
409.13 	(d) (c) Prior to a disqualification case closure under this subdivision, a county agency 
409.14 	must review the participant's case to determine if the employment plan is still appropriate 
409.15 	and attempt to meet with the participant face-to-face. If a face-to-face meeting is not 
409.16 	conducted, the county agency must send the participant a notice of adverse action as provided 
409.17 	in section 256J.31. During the face-to-face meeting, the county agency must:
409.18 	(1) determine whether the continued noncompliance can be explained and mitigated by 
409.19 	providing a needed preemployment activity, as defined in section 256J.49, subdivision 13, 
409.20 	clause (9);
409.21 	(2) determine whether the participant qualifies for a good cause exception under section 
409.22 	256J.57;
409.23 	(3) inform the participant of the family violence waiver criteria and make appropriate 
409.24 	referrals if the waiver is requested;
409.25 	(4) inform the participant of the participant's sanction status and explain the consequences 
409.26 	of continuing noncompliance;
409.27 	(5) identify other resources that may be available to the participant to meet the needs of 
409.28 	the family; and
409.29 	(6) inform the participant of the right to appeal under section 256J.40.

409.30 	EFFECTIVE DATE. This section is effective May 1, 2026.

410.1 	Sec. 36. Minnesota Statutes 2022, section 256J.46, subdivision 1, is amended to read:
410.2 		Subdivision 1.Participants not complying with program requirements. (a) A 
410.3 	participant who fails without good cause under section 256J.57 to comply with the 
410.4 	requirements of this chapter for orientation under section 256J.45, or employment and 
410.5 	training services under sections 256J.515 to 256J.57, and who is not subject to a sanction 
410.6 	under subdivision 2, shall be subject to a sanction or case closure as provided in this 
410.7 	subdivision section. Good cause may only be granted for the month for which the good 
410.8 	cause reason applies. Prior to the imposition of a sanction, a county agency shall provide a 
410.9 	notice of intent to sanction under section 256J.57, subdivision 2, and, when applicable, a 
410.10 	notice of adverse action as provided in section 256J.31, subdivision 5.
410.11 	(b) A sanction under this subdivision becomes effective the month following the month 
410.12 	in which a required notice is given. A sanction must not be imposed when a participant 
410.13 	comes into compliance with the requirements for orientation under section 256J.45 prior to 
410.14 	the effective date of the sanction. A sanction must not be imposed when a participant comes 
410.15 	into compliance with the requirements for employment and training services under sections 
410.16 	256J.515 to 256J.57 ten days prior to the effective date of the sanction. For purposes of this 
410.17 	subdivision, each month that a participant fails to comply with a requirement of this chapter 
410.18 	shall be considered a separate occurrence of noncompliance. If both participants in a 
410.19 	two-parent assistance unit are out of compliance at the same time, it is considered one 
410.20 	occurrence of noncompliance.
410.21 	(c) Sanctions for noncompliance shall be imposed as follows:
410.22 	(1) For the first occurrence of noncompliance by a participant in an assistance unit, the 
410.23 	assistance unit's grant shall be reduced by ten percent of the MFIP standard of need for an 
410.24 	assistance unit of the same size with the residual grant paid to the participant. The reduction 
410.25 	in the grant amount must be in effect for a minimum of one month and shall be removed in 
410.26 	the month following the month that the participant returns to compliance.
410.27 	(2) for a the first, second, third, fourth, fifth, or sixth consecutive occurrence of 
410.28 	noncompliance by a participant in an assistance unit, the assistance unit's shelter costs shall 
410.29 	be vendor paid up to the amount of the cash portion of the MFIP grant for which the 
410.30 	assistance unit is eligible. At county option, the assistance unit's utilities may also be vendor 
410.31 	paid up to the amount of the cash portion of the MFIP grant remaining after vendor payment 
410.32 	of the assistance unit's shelter costs. The residual amount of the grant after vendor payment, 
410.33 	if any, must be reduced by an amount are equal to 30 a reduction of five percent of the cash 
410.34 	portion of the MFIP standard of need for an grant received by the assistance unit of the 
411.1 	same size before the residual grant is paid to the assistance unit. The reduction in the grant 
411.2 	amount must be in effect for a minimum of one month and shall be removed in the month 
411.3 	following the month that the participant in a one-parent assistance unit returns to compliance, 
411.4 	unless the requirements in paragraph (h) are met. In a two-parent assistance unit, the grant 
411.5 	reduction must be in effect for a minimum of one month and shall be removed in the month 
411.6 	following the month both participants return to compliance, unless the requirements in 
411.7 	paragraph (h) are met. The vendor payment of shelter costs and, if applicable, utilities shall 
411.8 	be removed six months after the month in which the participant or participants return to 
411.9 	compliance. When an assistance unit comes into compliance with the requirements in section 
411.10 	256.741, or shows good cause under section 256.741, subdivision 10, or 256J.57, the sanction 
411.11 	occurrences for that assistance unit shall be equal to zero sanctions. If an assistance unit is 
411.12 	sanctioned under this clause, the participant's case file must be reviewed to determine if the 
411.13 	employment plan is still appropriate.
411.14 	(d) For a seventh consecutive occurrence of noncompliance by a participant in an 
411.15 	assistance unit, or when the participants in a two-parent assistance unit have a total of seven 
411.16 	occurrences of noncompliance, the county agency shall close the MFIP assistance unit's 
411.17 	financial assistance case, both including the cash and food portions, and redetermine the 
411.18 	family's continued eligibility for Supplemental Nutrition Assistance Program (SNAP) 
411.19 	payments. The MFIP case must remain closed for a minimum of one full month. Before the 
411.20 	case is closed, the county agency must review the participant's case to determine if the 
411.21 	employment plan is still appropriate and attempt to meet with the participant face-to-face. 
411.22 	The participant may bring an advocate to the face-to-face meeting. If a face-to-face meeting 
411.23 	is not conducted, the county agency must send the participant a written notice that includes 
411.24 	the information required under clause (1).
411.25 	(1) During the face-to-face meeting, the county agency must:
411.26 	(i) determine whether the continued noncompliance can be explained and mitigated by 
411.27 	providing a needed preemployment activity, as defined in section 256J.49, subdivision 13, 
411.28 	clause (9);
411.29 	(ii) determine whether the participant qualifies for a good cause exception under section 
411.30 	256J.57, or if the sanction is for noncooperation with child support requirements, determine 
411.31 	if the participant qualifies for a good cause exemption under section 256.741, subdivision 
411.32 	10;
411.33 	(iii) determine whether the work activities in the employment plan are appropriate based 
411.34 	on the criteria in section 256J.521, subdivision 2 or 3;
412.1 	(iv) determine whether the participant qualifies for the family violence waiver;
412.2 	(v) inform the participant of the participant's sanction status and explain the consequences 
412.3 	of continuing noncompliance;
412.4 	(vi) identify other resources that may be available to the participant to meet the needs 
412.5 	of the family; and
412.6 	(vii) inform the participant of the right to appeal under section 256J.40.
412.7 	(2) If the lack of an identified activity or service can explain the noncompliance, the 
412.8 	county must work with the participant to provide the identified activity.
412.9 	(3) The grant must be restored to the full amount for which the assistance unit is eligible 
412.10 	retroactively to the first day of the month in which the participant was found to lack 
412.11 	preemployment activities or to qualify for a family violence waiver or for a good cause 
412.12 	exemption under section 256.741, subdivision 10, or 256J.57.
412.13 	(e) For the purpose of applying sanctions under this section, only consecutive occurrences 
412.14 	of noncompliance that occur after July 1, 2003 on or after May 1, 2026, shall be considered
412.15 	when counting the number of sanction occurrences under this subdivision. Active cases 
412.16 	under sanction on May 1, 2026, shall be considered to have one sanction occurrence. If the 
412.17 	participant is in 30 percent sanction in the month this section takes effect, that month counts 
412.18 	as the first occurrence for purposes of applying the sanctions under this section, but the 
412.19 	sanction shall remain at 30 percent for that month comes into compliance, the assistance 
412.20 	unit is considered to have zero sanctions.
412.21 	(f) An assistance unit whose case is closed under paragraph (d) or (g), may reapply for 
412.22 	MFIP using a form prescribed by the commissioner and shall be eligible if the participant 
412.23 	complies with MFIP program requirements and demonstrates compliance for up to one 
412.24 	month. No assistance shall be paid during this period. The county agency shall not start a 
412.25 	new certification period for a participant who has submitted the reapplication form within 
412.26 	30 calendar days of case closure. The county agency must process the form according to 
412.27 	section 256P.04, except that the county agency shall not require additional verification of 
412.28 	information in the case file unless the information is inaccurate, questionable, or no longer 
412.29 	current. If a participant does not reapply for MFIP within 30 calendar days of case closure, 
412.30 	a new application must be completed.
412.31 	(g) An assistance unit whose case has been closed for noncompliance, that reapplies 
412.32 	under paragraph (f), is subject to sanction under paragraph (c), clause (2), for a first 
413.1 	occurrence of noncompliance. Any subsequent occurrence of noncompliance shall result 
413.2 	in and case closure under paragraph (d).
413.3 	(h) If an assistance unit is in compliance by the 15th of the month in which the assistance 
413.4 	unit has a sanction imposed, the reduction to the assistance unit's cash grant shall be restored 
413.5 	retroactively for the current month and the sanction occurrences shall be equal to zero.

413.6 	EFFECTIVE DATE. This section is effective May 1, 2026.

413.7 	Sec. 37. Minnesota Statutes 2022, section 256J.46, subdivision 2, is amended to read:
413.8 		Subd. 2.Sanctions for refusal to cooperate with support requirements. The grant of 
413.9 	an MFIP caregiver who refuses to cooperate, as determined by the child support enforcement 
413.10 	agency, with support requirements under section 256.741, shall be subject to sanction as 
413.11 	specified in this subdivision and subdivision 1. For a first occurrence of noncooperation, 
413.12 	the assistance unit's grant must be reduced by 30 percent of the applicable MFIP standard 
413.13 	of need. Subsequent occurrences of noncooperation shall be subject to sanction under 
413.14 	subdivision 1, paragraphs (c), clause (2), and (d)., paragraphs (b) to (h), except the assistance 
413.15 	unit's cash portion of the grant must be reduced by 25 percent of the MFIP cash received 
413.16 	by the assistance unit. The residual amount of the grant, if any, must be paid to the caregiver. 
413.17 	A sanction under this subdivision becomes effective the first month following the month 
413.18 	in which a required notice is given. A sanction must not be imposed when a caregiver comes 
413.19 	into compliance with the requirements under section 256.741 prior to the effective date of 
413.20 	the sanction. The sanction shall be removed in the month following the month that the 
413.21 	caregiver cooperates with the support requirements, unless the requirements in subdivision 
413.22 	1, paragraph (h), are met. Each month that an MFIP caregiver fails to comply with the 
413.23 	requirements of section 256.741 must be considered a separate occurrence of noncompliance 
413.24 	for the purpose of applying sanctions under subdivision 1, paragraphs (c), clause (2), and 
413.25 	(d).

413.26 	EFFECTIVE DATE. This section is effective May 1, 2026.

413.27 	Sec. 38. Minnesota Statutes 2022, section 256J.46, subdivision 2a, is amended to read:
413.28 		Subd. 2a.Dual sanctions. (a) Notwithstanding the provisions of subdivisions 1 and 2, 
413.29 	for a participant subject to a sanction for refusal to comply with child support requirements 
413.30 	under subdivision 2 and subject to a concurrent sanction for refusal to cooperate with other 
413.31 	program requirements under subdivision 1, sanctions shall be imposed in the manner 
413.32 	prescribed in this subdivision.
414.1 	Any vendor payment of shelter costs or utilities under this subdivision must remain in 
414.2 	effect for six months after the month in which the participant is no longer subject to sanction 
414.3 	under subdivision 1.
414.4 	(b) If the participant was subject to sanction for:
414.5 	(1) noncompliance under subdivision 1 before being subject to sanction for 
414.6 	noncooperation under subdivision 2; or
414.7 	(2) noncooperation under subdivision 2 before being subject to sanction for 
414.8 	noncompliance under subdivision 1, the participant is considered to have a second occurrence 
414.9 	of noncompliance and shall be sanctioned as provided in subdivision 1, paragraph (c), clause 
414.10 	(2). Each subsequent occurrence of noncompliance shall be considered one additional 
414.11 	occurrence and shall be subject to the applicable level of sanction under subdivision 1. The 
414.12 	requirement that the county conduct a review as specified in subdivision 1, paragraph (d), 
414.13 	remains in effect.
414.14 	(c) (b) A participant who first becomes subject to sanction under both subdivisions 1 
414.15 	and 2 in the same month is subject to sanction as follows:
414.16 	(1) in the first month of noncompliance and noncooperation, the participant's cash portion 
414.17 	of the grant must be reduced by 30 25 percent of the applicable MFIP standard of need cash 
414.18 	received by the assistance unit, with any residual amount paid to the participant;
414.19 	(2) in the second and subsequent months of noncompliance and noncooperation, the 
414.20 	participant shall be subject to the applicable level of sanction under subdivision 12.
414.21 	The requirement that the county conduct a review as specified in subdivision 1, paragraph 
414.22 	(d), remains in effect.
414.23 	(d) (c) A participant remains subject to sanction under subdivision 2 if the participant:
414.24 	(1) returns to compliance and is no longer subject to sanction for noncompliance with 
414.25 	section 256J.45 or sections 256J.515 to 256J.57; or
414.26 	(2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to 
414.27 	256J.57 removed upon completion of the review under subdivision 1, paragraph (e) (d).
414.28 	A participant remains subject to the applicable level of sanction under subdivision 1 if 
414.29 	the participant cooperates and is no longer subject to sanction under subdivision 2.

414.30 	EFFECTIVE DATE. This section is effective May 1, 2026.

415.1 	Sec. 39. Minnesota Statutes 2022, section 256J.95, subdivision 19, is amended to read:
415.2 		Subd. 19.DWP overpayments and underpayments. DWP benefits are subject to 
415.3 	overpayments and underpayments. Anytime an overpayment or an underpayment is 
415.4 	determined for DWP, the correction shall be calculated using prospective budgeting. 
415.5 	Corrections shall be determined based on the policy in section 256J.34, subdivision 1, 
415.6 	paragraphs (a), (b), and (c) 256P.09, subdivisions 1 to 4. ATM errors must be recovered as 
415.7 	specified in section 256P.08, subdivision 7. Cross program recoupment of overpayments 
415.8 	cannot be assigned to or from DWP.

415.9 	EFFECTIVE DATE. This section is effective March 1, 2025.

415.10 	Sec. 40. Minnesota Statutes 2022, section 256P.01, is amended by adding a subdivision 
415.11 	to read:
415.12 		Subd. 5a.Lived-experience engagement. "Lived-experience engagement" means an 
415.13 	intentional engagement of people with lived experience by a federal, Tribal, state, county, 
415.14 	municipal, or nonprofit human services agency funded in part or in whole by federal, state, 
415.15 	local government, Tribal Nation, public, private, or philanthropic money to gather and share 
415.16 	feedback on the impact of human services programs.

415.17 	Sec. 41. Minnesota Statutes 2022, section 256P.01, is amended by adding a subdivision 
415.18 	to read:
415.19 		Subd. 9.Prospective budgeting. "Prospective budgeting" means estimating the amount 
415.20 	of monthly income that an assistance unit will have in the payment month.

415.21 	EFFECTIVE DATE. This section is effective March 1, 2025.

415.22 	Sec. 42. Minnesota Statutes 2022, section 256P.02, subdivision 2, is amended to read:
415.23 		Subd. 2.Personal property limitations. The equity value of an assistance unit's personal 
415.24 	property listed in clauses (1) to (5) must not exceed $10,000 for applicants and participants. 
415.25 	For purposes of this subdivision, personal property is limited to:
415.26 	(1) cash not excluded under subdivision 4;
415.27 	(2) bank accounts not excluded under subdivision 5;
415.28 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
415.29 	(4) vehicles not excluded under subdivision 3; and
415.30 	(5) the full value of business accounts used to pay expenses not related to the business.

416.1 	Sec. 43. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision 
416.2 	to read:
416.3 		Subd. 4.Health and human services recipient engagement income. Income received 
416.4 	from lived-experience engagement, as defined in section 256P.01, subdivision 5a, shall be 
416.5 	excluded when determining the equity value of personal property.

416.6 	Sec. 44. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision 
416.7 	to read:
416.8 		Subd. 5.Account exception. Family asset accounts under section 256E.35 and individual 
416.9 	development accounts authorized under the Assets for Independence Act, Title IV of the 
416.10 	Community Opportunities, Accountability, and Training and Educational Services Human 
416.11 	Services Reauthorization Act of 1998, Public Law 105-285, shall be excluded when 
416.12 	determining the equity value of personal property.

416.13 	Sec. 45. Minnesota Statutes 2022, section 256P.04, subdivision 4, is amended to read:
416.14 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at application:
416.15 	(1) identity of adults;
416.16 	(2) age, if necessary to determine eligibility;
416.17 	(3) immigration status;
416.18 	(4) income;
416.19 	(5) spousal support and child support payments made to persons outside the household;
416.20 	(6) vehicles;
416.21 	(7) checking and savings accounts, including but not limited to any business accounts 
416.22 	used to pay expenses not related to the business;
416.23 	(8) inconsistent information, if related to eligibility;
416.24 	(9) residence; and
416.25 	(10) Social Security number; and.
416.26 	(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item 
416.27 	(ix), for the intended purpose for which it was given and received.
416.28 	(b) Applicants who are qualified noncitizens and victims of domestic violence as defined 
416.29 	under section 256J.08, subdivision 73, clauses (8) and (9), are not required to verify the 
417.1 	information in paragraph (a), clause (10). When a Social Security number is not provided 
417.2 	to the agency for verification, this requirement is satisfied when each member of the 
417.3 	assistance unit cooperates with the procedures for verification of Social Security numbers, 
417.4 	issuance of duplicate cards, and issuance of new numbers which have been established 
417.5 	jointly between the Social Security Administration and the commissioner.

417.6 	EFFECTIVE DATE. This section is effective July 1, 2024.

417.7 	Sec. 46. Minnesota Statutes 2022, section 256P.04, subdivision 8, is amended to read:
417.8 		Subd. 8.Recertification. The agency shall recertify eligibility annually. During 
417.9 	recertification and reporting under section 256P.10, the agency shall verify the following:
417.10 	(1) income, unless excluded, including self-employment earnings;
417.11 	(2) assets when the value is within $200 of the asset limit; and
417.12 	(3) inconsistent information, if related to eligibility.

417.13 	EFFECTIVE DATE. This section is effective March 1, 2025.

417.14 	Sec. 47. Minnesota Statutes 2022, section 256P.06, subdivision 3, is amended to read:
417.15 		Subd. 3.Income inclusions. The following must be included in determining the income 
417.16 	of an assistance unit:
417.17 	(1) earned income; and
417.18 	(2) unearned income, which includes:
417.19 	(i) interest and dividends from investments and savings;
417.20 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
417.21 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
417.22 	interest portion owed on property;
417.23 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
417.24 	(v) interest income from loans made by the participant or household;
417.25 	(vi) cash prizes and winnings;
417.26 	(vii) unemployment insurance income that is received by an adult member of the 
417.27 	assistance unit unless the individual receiving unemployment insurance income is:
417.28 	(A) 18 years of age and enrolled in a secondary school; or
418.1 	(B) 18 or 19 years of age, a caregiver, and is enrolled in school at least half-time;
418.2 	(viii) for the purposes of programs under chapters 256D and 256I, retirement, survivors, 
418.3 	and disability insurance payments;
418.4 	(ix) nonrecurring income over $60 per quarter unless the nonrecurring income is: (A) 
418.5 	from tax refunds, tax rebates, or tax credits; (B) a reimbursement, rebate, award, grant, or 
418.6 	refund of personal or real property or costs or losses incurred when these payments are 
418.7 	made by: a public agency; a court; solicitations through public appeal; a federal, state, or 
418.8 	local unit of government; or a disaster assistance organization; (C) provided as an in-kind 
418.9 	benefit; or (D) earmarked and used for the purpose for which it was intended, subject to 
418.10 	verification requirements under section 256P.04;
418.11 	(x) retirement benefits;
418.12 	(xi) (x) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
418.13 	256I, and 256J;
418.14 	(xii) Tribal per capita payments unless excluded by federal and state law;
418.15 	(xiii) (xi) income from members of the United States armed forces unless excluded from 
418.16 	income taxes according to federal or state law;
418.17 	(xiv)(xii) for the purposes of programs under chapters 119B, 256D, and 256I, all child 
418.18 	support payments for programs under chapters 119B, 256D, and 256I;
418.19 	(xv)(xiii) for the purposes of programs under chapter 256J, the amount of child support 
418.20 	received that exceeds $100 for assistance units with one child and $200 for assistance units 
418.21 	with two or more children for programs under chapter 256J;
418.22 	(xvi) (xiv) spousal support; and
418.23 	(xvii) (xv) workers' compensation.; and
418.24 	(xvi) for the purposes of programs under chapters 119B and 256J, the amount of 
418.25 	retirement, survivors, and disability insurance payments that exceeds the applicable monthly 
418.26 	federal maximum Supplemental Security Income payments.

418.27 	EFFECTIVE DATE. This section is effective September 1, 2024, except the removal 
418.28 	of item (ix) related to nonrecurring income is effective July 1, 2024, and the removal of 
418.29 	item (xii) related to Tribal per capita payments and the addition of item (xvi) related to 
418.30 	retirement, survivors, and disability insurance payments is effective August 1, 2023.

419.1 	Sec. 48. Minnesota Statutes 2022, section 256P.06, is amended by adding a subdivision 
419.2 	to read:
419.3 		Subd. 4.Recipient engagement income. Income received from lived-experience 
419.4 	engagement, as defined in section 256P.01, subdivision 5a, must not be counted as income 
419.5 	for purposes of determining or redetermining eligibility or benefits.

419.6 	Sec. 49. Minnesota Statutes 2022, section 256P.07, subdivision 1, is amended to read:
419.7 		Subdivision 1.Exempted programs. Participants who receive Supplemental Security 
419.8 	Income and qualify for Minnesota supplemental aid under chapter 256D and or for housing 
419.9 	support under chapter 256I on the basis of eligibility for Supplemental Security Income are 
419.10 	exempt from this section reporting income under this chapter.

419.11 	EFFECTIVE DATE. This section is effective March 1, 2025.

419.12 	Sec. 50. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
419.13 	to read:
419.14 		Subd. 1a.Child care assistance programs. Participants who qualify for child care 
419.15 	assistance programs under chapter 119B are exempt from this section except the reporting 
419.16 	requirements in subdivision 6.

419.17 	EFFECTIVE DATE. This section is effective March 1, 2025.

419.18 	Sec. 51. Minnesota Statutes 2022, section 256P.07, subdivision 2, is amended to read:
419.19 		Subd. 2.Reporting requirements. An applicant or participant must provide information 
419.20 	on an application and any subsequent reporting forms about the assistance unit's 
419.21 	circumstances that affect eligibility or benefits. An applicant or assistance unit must report 
419.22 	changes that affect eligibility or benefits as identified in subdivision subdivisions 3, 4, 5, 
419.23 	7, 8, and 9 during the application period or by the tenth of the month following the month 
419.24 	the assistance unit's circumstances changed. When information is not accurately reported, 
419.25 	both an overpayment and a referral for a fraud investigation may result. When information 
419.26 	or documentation is not provided, the receipt of any benefit may be delayed or denied, 
419.27 	depending on the type of information required and its effect on eligibility.

419.28 	EFFECTIVE DATE. This section is effective March 1, 2025.

420.1 	Sec. 52. Minnesota Statutes 2022, section 256P.07, subdivision 3, is amended to read:
420.2 		Subd. 3.Changes that must be reported. An assistance unit must report the changes 
420.3 	or anticipated changes specified in clauses (1) to (12) within ten days of the date they occur, 
420.4 	at the time of recertification of eligibility under section 256P.04, subdivisions 8 and 9, or 
420.5 	within eight calendar days of a reporting period, whichever occurs first. An assistance unit 
420.6 	must report other changes at the time of recertification of eligibility under section 256P.04, 
420.7 	subdivisions 8 and 9, or at the end of a reporting period, as applicable. When an agency 
420.8 	could have reduced or terminated assistance for one or more payment months if a delay in 
420.9 	reporting a change specified under clauses (1) to (12) had not occurred, the agency must 
420.10 	determine whether a timely notice could have been issued on the day that the change 
420.11 	occurred. When a timely notice could have been issued, each month's overpayment 
420.12 	subsequent to that notice must be considered a client error overpayment under section 
420.13 	119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must be reported within 
420.14 	ten days must also be reported for the reporting period in which those changes occurred. 
420.15 	Within ten days, an assistance unit must report:
420.16 	(1) a change in earned income of $100 per month or greater with the exception of a 
420.17 	program under chapter 119B;
420.18 	(2) a change in unearned income of $50 per month or greater with the exception of a 
420.19 	program under chapter 119B;
420.20 	(3) a change in employment status and hours with the exception of a program under 
420.21 	chapter 119B;
420.22 	(4) a change in address or residence;
420.23 	(5) a change in household composition with the exception of programs under chapter 
420.24 	256I;
420.25 	(6) a receipt of a lump-sum payment with the exception of a program under chapter 
420.26 	119B;
420.27 	(7) an increase in assets if over $9,000 with the exception of programs under chapter 
420.28 	119B;
420.29 	(8) a change in citizenship or immigration status;
420.30 	(9) a change in family status with the exception of programs under chapter 256I;
420.31 	(10) a change in disability status of a unit member, with the exception of programs under 
420.32 	chapter 119B;
421.1 	(11) a new rent subsidy or a change in rent subsidy with the exception of a program 
421.2 	under chapter 119B; and
421.3 	(12) a sale, purchase, or transfer of real property with the exception of a program under 
421.4 	chapter 119B.
421.5 	(a) An assistance unit must report changes or anticipated changes as described in this 
421.6 	section.
421.7 	(b) An assistance unit must report:
421.8 	(1) a change in eligibility for Supplemental Security Income, Retirement Survivors 
421.9 	Disability Insurance, or another federal income support;
421.10 	(2) a change in address or residence;
421.11 	(3) a change in household composition with the exception of programs under chapter 
421.12 	256I;
421.13 	(4) cash prizes and winnings according to guidance provided for the Supplemental 
421.14 	Nutrition Assistance Program;
421.15 	(5) a change in citizenship or immigration status;
421.16 	(6) a change in family status with the exception of programs under chapter 256I; and
421.17 	(7) a change that makes the value of the unit's assets at or above the asset limit.
421.18 	(c) When an agency could have reduced or terminated assistance for one or more payment 
421.19 	months if a delay in reporting a change specified under paragraph (b) had not occurred, the 
421.20 	agency must determine whether the agency could have issued a timely notice on the day 
421.21 	that the change occurred. When a timely notice could have been issued, each month's 
421.22 	overpayment subsequent to the notice must be considered a client error overpayment under 
421.23 	section 256P.08.

421.24 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
421.25 	striking clause (6) is effective July 1, 2024.

421.26 	Sec. 53. Minnesota Statutes 2022, section 256P.07, subdivision 4, is amended to read:
421.27 		Subd. 4.MFIP-specific reporting. In addition to subdivision 3, an assistance unit under 
421.28 	chapter 256J, within ten days of the change, must report:
421.29 	(1) a pregnancy not resulting in birth when there are no other minor children; and
422.1 	(2) a change in school attendance of a parent under 20 years of age or of an employed 
422.2 	child.; and
422.3 	(3) an individual in the household who is 18 or 19 years of age attending high school 
422.4 	who graduates or drops out of school.

422.5 	EFFECTIVE DATE. This section is effective March 1, 2025.

422.6 	Sec. 54. Minnesota Statutes 2022, section 256P.07, subdivision 6, is amended to read:
422.7 		Subd. 6.Child care assistance programs-specific reporting. (a) In addition to 
422.8 	subdivision 3, An assistance unit under chapter 119B, within ten days of the change, must 
422.9 	report:
422.10 	(1) a change in a parentally responsible individual's custody schedule for any child 
422.11 	receiving child care assistance program benefits;
422.12 	(2) a permanent end in a parentally responsible individual's authorized activity; and
422.13 	(3) if the unit's family's annual included income exceeds 85 percent of the state median 
422.14 	income, adjusted for family size.;
422.15 	(4) a change in address or residence;
422.16 	(5) a change in household composition;
422.17 	(6) a change in citizenship or immigration status; and
422.18 	(7) a change in family status.
422.19 	(b) An assistance unit subject to section 119B.095, subdivision 1, paragraph (b), must 
422.20 	report a change in the unit's authorized activity status.
422.21 	(c) An assistance unit must notify the county when the unit wants to reduce the number 
422.22 	of authorized hours for children in the unit.

422.23 	EFFECTIVE DATE. This section is effective March 1, 2025.

422.24 	Sec. 55. Minnesota Statutes 2022, section 256P.07, subdivision 7, is amended to read:
422.25 		Subd. 7.Minnesota supplemental aid-specific reporting. (a) In addition to subdivision 
422.26 	3, an assistance unit participating in the Minnesota supplemental aid program under section 
422.27 	256D.44, subdivision 5, paragraph (g), within ten days of the change, chapter 256D and not 
422.28 	receiving Supplemental Security Income must report shelter expenses.:
422.29 	(1) a change in unearned income of $50 per month or greater; and
423.1 	(2) a change in earned income of $100 per month or greater.
423.2 	(b) An assistance unit receiving housing assistance under section 256D.44, subdivision 
423.3 	5, paragraph (g), including assistance units that also receive Supplemental Security Income, 
423.4 	must report:
423.5 	(1) a change in shelter expenses; and
423.6 	(2) a new rent subsidy or a change in rent subsidy.

423.7 	EFFECTIVE DATE. This section is effective March 1, 2025.

423.8 	Sec. 56. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
423.9 	to read:
423.10 		Subd. 8.Housing support-specific reporting. (a) In addition to subdivision 3, an 
423.11 	assistance unit participating in the housing support program under chapter 256I and not 
423.12 	receiving Supplemental Security Income must report:
423.13 	(1) a change in unearned income of $50 per month or greater; and
423.14 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
423.15 	is already subject to six-month reporting requirements in section 256P.10.
423.16 	(b) Notwithstanding the exemptions in subdivisions 1 and 3, an assistance unit receiving 
423.17 	housing support under chapter 256I, including an assistance unit that receives Supplemental 
423.18 	Security Income, must report:
423.19 	(1) a new rent subsidy or a change in rent subsidy;
423.20 	(2) a change in the disability status of a unit member; and
423.21 	(3) a change in household composition if the assistance unit is a participant in housing 
423.22 	support under section 256I.04, subdivision 3, paragraph (a), clause (3).

423.23 	EFFECTIVE DATE. This section is effective March 1, 2025.

423.24 	Sec. 57. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
423.25 	to read:
423.26 		Subd. 9.General assistance-specific reporting. In addition to subdivision 3, an 
423.27 	assistance unit participating in the general assistance program under chapter 256D must 
423.28 	report:
423.29 	(1) a change in unearned income of $50 per month or greater;
424.1 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
424.2 	is already subject to six-month reporting requirements in section 256P.10; and
424.3 	(3) changes in any condition that would result in the loss of basis for eligibility in section 
424.4 	256D.05, subdivision 1, paragraph (a).

424.5 	EFFECTIVE DATE. This section is effective March 1, 2025.

424.6 	Sec. 58. [256P.09] PROSPECTIVE BUDGETING OF BENEFITS.
424.7 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
424.8 	assistance programs under chapter 119B and assistance units that receive housing support 
424.9 	under chapter 256I are not subject to reporting under section 256P.10, and assistance units 
424.10 	that qualify for Minnesota supplemental aid under chapter 256D are exempt from this 
424.11 	section.
424.12 		Subd. 2.Prospective budgeting of benefits. An agency subject to this chapter must use 
424.13 	prospective budgeting to calculate the assistance payment amount.
424.14 		Subd. 3.Initial income. For the purpose of determining an assistance unit's level of 
424.15 	benefits, an agency must take into account the income already received by the assistance 
424.16 	unit during or anticipated to be received during the application period. Income anticipated 
424.17 	to be received only in the initial month of eligibility must only be counted in the initial 
424.18 	month.
424.19 		Subd. 4.Income determination. An agency must use prospective budgeting to determine 
424.20 	the amount of the assistance unit's benefit for the eligibility period based on the best 
424.21 	information available at the time of approval. An agency shall only count anticipated income 
424.22 	when the participant and the agency are reasonably certain of the amount of the payment 
424.23 	and the month in which the payment will be received. If the exact amount of the income is 
424.24 	not known, the agency shall consider only the amounts that can be anticipated as income.
424.25 		Subd. 5.Income changes. An increase in income shall not affect an assistance unit's 
424.26 	eligibility or benefit amount until the next review unless otherwise required to be reported 
424.27 	in section 256P.07. A decrease in income shall be effective on the date that the change 
424.28 	occurs if the change is reported by the tenth of the month following the month when the 
424.29 	change occurred. If the assistance unit does not report the change in income by the tenth of 
424.30 	the month following the month when the change occurred, the change in income shall be 
424.31 	effective on the date the change was reported.

424.32 	EFFECTIVE DATE. This section is effective March 1, 2025.

425.1 	Sec. 59. [256P.10] SIX-MONTH REPORTING.
425.2 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
425.3 	assistance programs under chapter 119B, assistance units that qualify for Minnesota 
425.4 	supplemental aid under chapter 256D, and assistance units that qualify for housing support 
425.5 	under chapter 256I and also receive Supplemental Security Income are exempt from this 
425.6 	section.
425.7 		Subd. 2.Reporting. (a) Every six months, an assistance unit that qualifies for the 
425.8 	Minnesota family investment program under chapter 256J, an assistance unit that qualifies 
425.9 	for general assistance under chapter 256D with an earned income of $100 per month or 
425.10 	greater, or an assistance unit that qualifies for housing support under chapter 256I with an 
425.11 	earned income of $100 per month or greater is subject to six-month reviews. The initial 
425.12 	reporting period may be shorter than six months in order to align with other programs' 
425.13 	reporting periods.
425.14 	(b) An assistance unit that qualifies for the Minnesota family investment program or an 
425.15 	assistance unit that qualifies for general assistance with an earned income of $100 per month 
425.16 	or greater must complete household report forms as required by the commissioner for 
425.17 	redetermination of benefits.
425.18 	(c) An assistance unit that qualifies for housing support with an earned income of $100 
425.19 	per month or greater must complete household report forms as prescribed by the 
425.20 	commissioner to provide information about earned income.
425.21 	(d) An assistance unit that qualifies for housing support and also receives assistance 
425.22 	through the Minnesota family investment program shall be subject to requirements of this 
425.23 	section for purposes of the Minnesota family investment program but not for housing support.
425.24 	(e) An assistance unit covered by this section must submit a household report form in 
425.25 	compliance with the provisions in section 256P.04, subdivision 11.
425.26 	(f) An assistance unit covered by this section may choose to report changes under this 
425.27 	section at any time.
425.28 		Subd. 3.When to terminate assistance. (a) An agency must terminate benefits when 
425.29 	the assistance unit fails to submit the household report form before the end of the six-month 
425.30 	review period. If the assistance unit submits the household report form within 30 days of 
425.31 	the termination of benefits and remains eligible, benefits must be reinstated and made 
425.32 	available retroactively for the full benefit month.
426.1 	(b) When an assistance unit is determined to be ineligible for assistance according to 
426.2 	this section and chapter 256D, 256I, or 256J, the agency must terminate assistance.

426.3 	EFFECTIVE DATE. This section is effective March 1, 2025.

426.4 	Sec. 60. Minnesota Statutes 2022, section 609B.425, subdivision 2, is amended to read:
426.5 		Subd. 2.Benefit eligibility. (a) For general assistance benefits and Minnesota 
426.6 	supplemental aid under chapter 256D, a person convicted of a felony-level drug offense 
426.7 	after July 1, 1997, is ineligible for general assistance benefits and Supplemental Security 
426.8 	Income under chapter 256D until: during the previous ten years from the date of application 
426.9 	or recertification may be subject to random drug testing. The county must provide information 
426.10 	about substance use disorder treatment programs to a person who tests positive for an illegal 
426.11 	controlled substance.
426.12 	(1) five years after completing the terms of a court-ordered sentence; or
426.13 	(2) unless the person is participating in a drug treatment program, has successfully 
426.14 	completed a program, or has been determined not to be in need of a drug treatment program.
426.15 	(b) A person who becomes eligible for assistance under chapter 256D is subject to 
426.16 	random drug testing and shall lose eligibility for benefits for five years beginning the month 
426.17 	following:
426.18 	(1) any positive test for an illegal controlled substance; or
426.19 	(2) discharge of sentence for conviction of another drug felony.
426.20 	(c) (b) Parole violators and fleeing felons are ineligible for benefits and persons 
426.21 	fraudulently misrepresenting eligibility are also ineligible to receive benefits for ten years.

426.22 	EFFECTIVE DATE. This section is effective August 1, 2023.

426.23 	Sec. 61. Minnesota Statutes 2022, section 609B.435, subdivision 2, is amended to read:
426.24 		Subd. 2.Drug offenders; random testing; sanctions. A person who is an applicant for 
426.25 	benefits from the Minnesota family investment program or MFIP, the vehicle for temporary 
426.26 	assistance for needy families or TANF, and who has been convicted of a felony-level drug 
426.27 	offense shall may be subject to certain conditions, including random drug testing, in order 
426.28 	to receive MFIP benefits. Following any positive test for a controlled substance, the convicted 
426.29 	applicant or participant is subject to the following sanctions: county must provide information 
426.30 	about substance use disorder treatment programs to the applicant or participant.
427.1 	(1) a first time drug test failure results in a reduction of benefits in an amount equal to 
427.2 	30 percent of the MFIP standard of need; and
427.3 	(2) a second time drug test failure results in permanent disqualification from receiving 
427.4 	MFIP assistance.
427.5 	A similar disqualification sequence occurs if the applicant is receiving Supplemental Nutrition 
427.6 	Assistance Program (SNAP) benefits.

427.7 	EFFECTIVE DATE. This section is effective August 1, 2023.

427.8 	Sec. 62. COUNTY WORKER TRAINING PROGRAM PILOT.
 427.9 	(a) To the extent permitted under federal law, and subject to any necessary federal 
427.10 	approval, the commissioner of human services must permit Anoka, Dakota, St. Louis, and 
427.11 	Wright Counties to operate a 12-month pilot to provide the four-day mandated training 
427.12 	under Minnesota Statutes, section 256.01, subdivision 2, paragraph (a), clause (1), for the 
427.13 	MAXIS eligibility system and Supplemental Nutrition Assistance Program (SNAP) in-house. 
427.14 	Counties shall be permitted to provide their own training under this section starting 30 days 
427.15 	after receipt of necessary federal approval and only after receiving and agreeing to use the 
427.16 	commissioner's training materials.
427.17 	(b) The commissioner must provide oversight of the training program to ensure county 
427.18 	training is consistent with current curriculum. The commissioner shall determine what 
427.19 	oversight activities will be utilized. If there are changes in state or federal law governing 
427.20 	SNAP or changes are made to MAXIS, counties must not provide training until they have 
427.21 	received and agreed to use the updated curriculum provided by the commissioner.
427.22 	(c) Counties must comply with all applicable state and federal training requirements, 
427.23 	including but not limited to reporting requirements. In addition, no later than 120 days 
427.24 	following completion of the pilot, each county permitted to conduct their own training under 
427.25 	this section must report to the commissioner the following data:
427.26 	(1) the number of classes offered during the pilot period;
427.27 	(2) the number of workers trained during the pilot period; and
427.28 	(3) the number of county staff who provided training during the pilot period.
427.29 	(d) Nothing in this section shall prevent the commissioner from requiring the employees 
427.30 	of the counties participating in the pilot from receiving mandatory training provided by the 
427.31 	commissioner on subjects relating to data privacy and security awareness. Prior to receiving 
428.1 	any in-house training provided for in paragraph (a), any county employee must first receive 
428.2 	all training the commissioner requires pursuant to this section.

428.3 	Sec. 63. REPEALER.
 428.4 	(a) Minnesota Statutes 2022, sections 256.9864; 256J.08, subdivisions 10, 53, 61, 62, 
428.5 	81, and 83; 256J.30, subdivisions 5, 7, and 8; 256J.33, subdivisions 3, 4, and 5; 256J.34, 
428.6 	subdivisions 1, 2, 3, and 4; and 256J.37, subdivision 10, are repealed.
428.7 	(b) Minnesota Statutes 2022, section 256.8799, is repealed.
428.8 	(c) Minnesota Statutes 2022, section 256J.425, subdivision 6, is repealed.

428.9 	EFFECTIVE DATE. Paragraph (a) is effective March 1, 2025, except the repeal of 
428.10 	Minnesota Statutes 2022, sections 256J.08, subdivisions 53 and 62, and 256J.37, subdivision 
428.11 	10, is effective July 1, 2024. Paragraph (c) is effective May 1, 2026.

428.12 	ARTICLE 11
428.13 	HOUSING AND HOMELESSNESS

428.14 	Section 1. Minnesota Statutes 2022, section 145.4716, subdivision 3, is amended to read:
428.15 		Subd. 3.Youth eligible for services. Youth 24 years of age or younger shall be are
428.16 	eligible for all services, support, and programs provided under this section and section 
428.17 	145.4717, and all shelter, housing beds, and services provided by the commissioner of 
428.18 	human services to sexually exploited youth and youth at risk of sexual exploitation under 
428.19 	section 256K.47.

428.20 	Sec. 2. [245.0963] CONTINUUM OF CARE GRANT PROGRAM.
428.21 		Subdivision 1.Establishment. The commissioner of human services must establish a 
428.22 	grant program to maintain funding for shelters and services provided to individuals 
428.23 	experiencing homelessness.
428.24 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
428.25 	must be a nonprofit organization or a county. An eligible applicant must have experience 
428.26 	providing continuum of care services to individuals experiencing homelessness and operating 
428.27 	a community-wide partnership committed to ending homelessness.
428.28 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
428.29 	the commissioner in the time and manner specified by the commissioner.
428.30 		Subd. 4.Grant activities. (a) Grant money must be used for:
429.1 	(1) maintaining funding for a 100-bed family shelter;
429.2 	(2) maintaining funding to provide shelter and services for single adults, including an 
429.3 	expanded shelter for women;
429.4 	(3) developing and operating a familiar faces pilot program for high-frequency unhoused 
429.5 	clients with intensive, 24-hours-a-day, seven-days-a-week staffing;
429.6 	(4) maintaining current day shelter programming; and
429.7 	(5) providing outreach, support services, single point of entry, infrastructure, and extreme 
429.8 	weather support.
429.9 	(b) A grantee may contract with eligible nonprofit organizations and local and Tribal 
429.10 	governmental agencies to provide the services listed under paragraph (a).
429.11 		Subd. 5.Reporting. (a) The grantee must submit a report to the commissioner in the 
429.12 	time and manner specified by the commissioner. The report must include how the grant 
429.13 	money was used and how many individuals were served.
429.14 	(b) The commissioner must submit a report to the chairs and ranking minority members 
429.15 	of the legislative committees with jurisdiction over homelessness no later than six months 
429.16 	after receiving the report under paragraph (a). The report submitted by the commissioner 
429.17 	must include the information specified in paragraph (a).

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

429.19 	Sec. 3. [245.0965] OLMSTED COUNTY HOMELESSNESS GRANT PROGRAM.
429.20 		Subdivision 1.Establishment. The commissioner of human services must establish a 
429.21 	grant program to fund and support shelters and services for persons experiencing 
429.22 	homelessness in Olmsted County.
429.23 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
429.24 	must be a nonprofit organization or a county that provides shelter and services to persons 
429.25 	experiencing homelessness in Olmsted County. An eligible applicant must have experience 
429.26 	with services that house persons experiencing homelessness and aid transitions to permanent 
429.27 	stable housing.
429.28 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
429.29 	the commissioner in the time and manner specified by the commissioner.
429.30 		Subd. 4.Grant activities. (a) Eligible uses of grant money include:
429.31 	(1) operations and services to maintain daytime and overnight shelter;
430.1 	(2) recuperative care shelter;
430.2 	(3) housing-focused case management for persons experiencing homelessness;
430.3 	(4) shelter diversion services;
430.4 	(5) hotel and motel vouchers;
430.5 	(6) shelter for youth, including host homes;
430.6 	(7) transitional housing programs;
430.7 	(8) supportive staffing; and
430.8 	(9) outreach services.
430.9 	(b) The grantee may contract with eligible nonprofit organizations and local and Tribal 
430.10 	governmental agencies to provide the services specified under paragraph (a).
430.11 		Subd. 5.Reporting. (a) The grantee must submit a report to the commissioner in the 
430.12 	time and manner specified by the commissioner. The report must include the number of 
430.13 	persons experiencing homelessness that were served and what the grant money was used 
430.14 	for.
430.15 	(b) The commissioner must submit a report to the chairs and ranking minority members 
430.16 	of the legislative committees with jurisdiction over homelessness no later than six months 
430.17 	after receiving the report under paragraph (a). The report submitted by the commissioner 
430.18 	must include the information specified in paragraph (a).

430.19 	Sec. 4. [245.0966] HENNEPIN COUNTY HOMELESSNESS GRANT PROGRAM.
430.20 		Subdivision 1.Establishment. The commissioner of human services must establish a 
430.21 	grant program to maintain funding for shelters and services provided to individuals 
430.22 	experiencing homelessness in Hennepin County.
430.23 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
430.24 	must be a nonprofit organization or a county that provides shelter and services to persons 
430.25 	experiencing homelessness in Hennepin County. An eligible applicant must have experience 
430.26 	with services that house persons experiencing homelessness and aid transitions to permanent, 
430.27 	stable housing.
430.28 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
430.29 	the commissioner in the time and manner specified by the commissioner.
430.30 		Subd. 4.Grant activities. (a) Grant money must be used for:
431.1 	(1) maintaining current shelter and homeless response programming;
431.2 	(2) maintaining shelter operations and services at Avivo Village, including the shelter 
431.3 	comprised of 100 private dwellings and the American Indian Community Development 
431.4 	Corporation Homeward Bound 50-bed shelter;
431.5 	(3) maintaining shelter operations and services at 24-hours-a-day, seven-days-a-week 
431.6 	shelters;
431.7 	(4) providing housing-focused case management; and
431.8 	(5) providing shelter diversion services.
431.9 	(b) A grantee may contract with eligible nonprofit organizations and local and Tribal 
431.10 	governmental agencies to provide the services listed under paragraph (a).
431.11 		Subd. 5.Reporting. (a) The grantee must submit a report to the commissioner in the 
431.12 	time and manner specified by the commissioner. The report must include how the grant 
431.13 	money was used and how many persons experiencing homelessness were served.
431.14 	(b) The commissioner must submit a report to the chairs and ranking minority members 
431.15 	of the legislative committees with jurisdiction over homelessness no later than six months 
431.16 	after receiving the report under paragraph (a). The report submitted by the commissioner 
431.17 	must include the information specified in paragraph (a).

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

431.19 	Sec. 5. Minnesota Statutes 2022, section 256I.04, subdivision 1, is amended to read:
431.20 		Subdivision 1.Individual eligibility requirements. An individual is eligible for and 
431.21 	entitled to a housing support payment to be made on the individual's behalf if the agency 
431.22 	has approved the setting where the individual will receive housing support and the individual 
431.23 	meets the requirements in paragraph (a), (b), or (c), or (d).
431.24 	(a) The individual is aged, blind, or is over 18 years of age with a disability as determined 
431.25 	under the criteria used by the title II program of the Social Security Act, and meets the 
431.26 	resource restrictions and standards of section 256P.02, and the individual's countable income 
431.27 	after deducting the (1) exclusions and disregards of the SSI program, (2) the medical 
431.28 	assistance personal needs allowance under section 256B.35, and (3) an amount equal to the 
431.29 	income actually made available to a community spouse by an elderly waiver participant 
431.30 	under the provisions of sections 256B.0575, paragraph (a), clause (4), and 256B.058, 
431.31 	subdivision 2, is less than the monthly rate specified in the agency's agreement with the 
431.32 	provider of housing support in which the individual resides.
432.1 	(b) The individual meets a category of eligibility under section 256D.05, subdivision 1, 
432.2 	paragraph (a), clauses (1), (3), (4) to (8), and (13), and paragraph (b), if applicable, and the 
432.3 	individual's resources are less than the standards specified by section 256P.02, and the 
432.4 	individual's countable income as determined under section 256P.06, less the medical 
432.5 	assistance personal needs allowance under section 256B.35 is less than the monthly rate 
432.6 	specified in the agency's agreement with the provider of housing support in which the 
432.7 	individual resides.
432.8 	(c) The individual lacks a fixed, adequate, nighttime residence upon discharge from a 
432.9 	residential behavioral health treatment program, as determined by treatment staff from the 
432.10 	residential behavioral health treatment program. An individual is eligible under this paragraph 
432.11 	for up to three months, including a full or partial month from the individual's move-in date 
432.12 	at a setting approved for housing support following discharge from treatment, plus two full 
432.13 	months.
432.14 	(d) The individual meets the criteria related to establishing a certified disability or 
432.15 	disabling condition in paragraph (a) or (b) and lacks a fixed, adequate, nighttime residence 
432.16 	upon discharge from a correctional facility, as determined by an authorized representative 
432.17 	from a Minnesota-based correctional facility. An individual is eligible under this paragraph 
432.18 	for up to three months, including a full or partial month from the individual's move-in date 
432.19 	at a setting approved for housing support following release, plus two full months. People 
432.20 	who meet the disabling condition criteria established in paragraph (a) or (b) will not have 
432.21 	any countable income for the duration of eligibility under this paragraph.

432.22 	Sec. 6. [256K.47] SAFE HARBOR SHELTER AND HOUSING.
432.23 		Subdivision 1.Grant program established. The commissioner of human services must 
432.24 	establish a safe harbor shelter and housing grant program. Under this grant program, the 
432.25 	commissioner must award grants to providers who are committed to serving sexually 
432.26 	exploited youth and youth at risk of sexual exploitation. Grantees must use grant money to 
432.27 	provide street and community outreach programs, emergency shelter programs, or supportive 
432.28 	housing programs consistent with the program descriptions in this section to address the 
432.29 	specialized outreach, shelter, and housing needs of sexually exploited youth and youth at 
432.30 	risk of sexual exploitation.
432.31 		Subd. 2.Youth eligible services. Youth 24 years of age or younger are eligible for all 
432.32 	shelter, housing beds, and services provided under this section and all services, support, 
432.33 	and programs provided by the commissioner of health to sexually exploited youth and youth 
432.34 	at risk of sexual exploitation under sections 145.4716 and 145.4717.
433.1 		Subd. 3.Street and community outreach. (a) Street and community outreach programs 
433.2 	must locate, contact, and provide information, referrals, and services to eligible youth.
433.3 	(b) Information, referrals, and services provided by street and community outreach 
433.4 	programs may include but are not limited to:
433.5 	(1) family reunification services;
433.6 	(2) conflict resolution or mediation counseling;
433.7 	(3) assistance in obtaining temporary emergency shelter;
433.8 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
433.9 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
433.10 	infections, and pregnancy;
433.11 	(6) referrals to other agencies that provide support services to sexually exploited youth 
433.12 	and youth at risk of sexual exploitation;
433.13 	(7) assistance with education, employment, and independent living skills;
433.14 	(8) aftercare services;
433.15 	(9) specialized services for sexually exploited youth and youth at risk of sexual 
433.16 	exploitation, including youth experiencing homelessness and youth with mental health 
433.17 	needs; and
433.18 	(10) services to address the prevention of sexual exploitation and homelessness.
433.19 		Subd. 4.Emergency shelter program. (a) Emergency shelter programs must provide 
433.20 	eligible youth with referral and walk-in access to emergency short-term residential care. 
433.21 	The program shall provide eligible youth with safe and dignified shelter that includes private 
433.22 	shower facilities, beds, and meals each day and must assist eligible youth with reunification 
433.23 	with that youth's family or legal guardian when required or appropriate.
433.24 	(b) The services provided at emergency shelters may include but are not limited to:
433.25 	(1) specialized services to address the trauma of sexual exploitation;
433.26 	(2) family reunification services;
433.27 	(3) individual, family, and group counseling;
433.28 	(4) assistance obtaining clothing;
433.29 	(5) access to medical and dental care and mental health counseling;
434.1 	(6) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
434.2 	infections, and pregnancy;
434.3 	(7) education and employment services;
434.4 	(8) recreational activities;
434.5 	(9) advocacy and referral services;
434.6 	(10) independent living skills training;
434.7 	(11) aftercare and follow-up services;
434.8 	(12) transportation; and
434.9 	(13) services to address the prevention of sexual exploitation and homelessness.
434.10 		Subd. 5.Supportive housing programs. (a) Supportive housing programs must help 
434.11 	eligible youth find and maintain safe and dignified housing and provide related supportive 
434.12 	services and referrals. Supportive housing programs may also provide rental assistance.
434.13 	(b) The services provided in supportive housing programs may include but are not limited 
434.14 	to:
434.15 	(1) specialized services to address the trauma of sexual exploitation;
434.16 	(2) education and employment services;
434.17 	(3) budgeting and money management;
434.18 	(4) assistance in securing housing appropriate to needs and income;
434.19 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
434.20 	infections, and pregnancy;
434.21 	(6) referral for medical services or chemical dependency treatment;
434.22 	(7) parenting skills;
434.23 	(8) self-sufficiency support services and independent living skills training;
434.24 	(9) aftercare and follow-up services; and
434.25 	(10) services to address the prevention of sexual exploitation and homelessness 
434.26 	prevention.
434.27 		Subd. 6.Funding. Money appropriated for this section may be expended on programs 
434.28 	described in subdivisions 3 to 5, technical assistance, and capacity building to meet the 
434.29 	greatest need on a statewide basis.

435.1 	Sec. 7. [256K.50] FAMILY SUPPORTIVE HOUSING.
435.2 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
435.3 	(b) "Family" means a nontemporary household unit that includes at least one child and 
435.4 	one parent or legal guardian.
435.5 	(c) "Family permanent supportive housing" means housing that:
435.6 	(1) is not time limited;
435.7 	(2) is affordable for those at or below 30 percent of the area median income;
435.8 	(3) offers specialized support services to residents tailored to the needs of children and 
435.9 	families; and
435.10 	(4) is available to families with multiple barriers to obtaining and maintaining housing, 
435.11 	including but not limited to those who are homeless or at risk of homelessness; those with 
435.12 	mental illness, substance use disorders, and other disabilities; and those referred by child 
435.13 	protection services.
435.14 	(d) "Resident" means a resident of family permanent supportive housing.
435.15 		Subd. 2.Specialized family support services. Specialized family support services are 
435.16 	nonmandatory, trauma-informed, and culturally appropriate services designed to help family 
435.17 	residents maintain secure, dignified housing and provide a safe, stable environment for 
435.18 	children. Services provided may include but are not limited to:
435.19 	(1) age-appropriate child-centric services for education and enrichment;
435.20 	(2) stabilization services such as:
435.21 	(i) educational assessments and referrals to educational programs;
435.22 	(ii) career planning, work skill training, job placement, and employment retention;
435.23 	(iii) budgeting and money management;
435.24 	(iv) referrals for counseling regarding violence and sexual exploitation;
435.25 	(v) referrals for medical or psychiatric services or substance use disorder treatment;
435.26 	(vi) parenting skills training;
435.27 	(vii) self-sufficiency support services or life skill training, including tenant education 
435.28 	and support to sustain housing; and
435.29 	(viii) aftercare and follow-up services; and
436.1 	(3) 24-hour-a-day, seven-days-a-week on-site staffing, including but not limited to front 
436.2 	desk and security.
436.3 		Subd. 3.Funding. Money appropriated for this section may be expended on programs 
436.4 	described under subdivision 2, technical assistance, and capacity building to meet the greatest 
436.5 	need on a statewide basis. The commissioner must provide outreach, technical assistance, 
436.6 	and program development support to increase capacity to new and existing service providers 
436.7 	to better meet needs statewide.

436.8 	Sec. 8. Laws 2021, First Special Session chapter 7, article 17, section 5, subdivision 1, is 
436.9 	amended to read:
436.10 		Subdivision 1.Housing transition cost. (a) This act includes $682,000 in fiscal year 
436.11 	2022 and $1,637,000 in fiscal year 2023 for a onetime payment per transition of up to $3,000 
436.12 	to cover costs associated with moving to a community setting that are not covered by other 
436.13 	sources. Covered costs include: (1) lease or rent deposits; (2) security deposits; (3) utilities 
436.14 	setup costs, including telephone and Internet services; and (4) essential furnishings and 
436.15 	supplies. The commissioner of human services shall seek an amendment to the medical 
436.16 	assistance state plan to allow for these payments as a housing stabilization service under 
436.17 	Minnesota Statutes, section 256B.051. The general fund base in this act for this purpose is 
436.18 	$1,227,000 in fiscal year 2024 and $0 in fiscal year 2025.
436.19 	(b) This subdivision expires March 31, 2024.
436.20 	(b) An individual is only eligible for a housing transition cost payment if the individual 
436.21 	is moving from an institution or provider-controlled setting into their own home.

436.22 	EFFECTIVE DATE. This section is effective upon federal approval.

436.23 	Sec. 9. HOMELESS YOUTH CASH STIPEND PILOT PROJECT.
 436.24 		Subdivision 1.Pilot project established. The commissioner of human services shall 
436.25 	establish a homeless youth cash stipend pilot project to provide a direct cash stipend to 
436.26 	homeless youth in Hennepin and St. Louis Counties. The pilot project must be designed to 
436.27 	meet the needs of underserved communities.
436.28 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
436.29 	meanings given.
436.30 	(b) "Commissioner" means the commissioner of human services.
437.1 	(c) "Homeless youth" means a person 18 to 24 years of age who lacks a fixed, regular, 
437.2 	and adequate nighttime residence. The following are not fixed, regular, or adequate nighttime 
437.3 	residences:
437.4 	(1) a supervised publicly or privately operated shelter designed to provide temporary 
437.5 	living accommodations;
437.6 	(2) an institution or a publicly or privately operated shelter designed to provide temporary 
437.7 	living accommodations;
437.8 	(3) transitional housing;
437.9 	(4) a temporary placement with a peer, friend, or family member that has not offered 
437.10 	permanent residence, a residential lease, or temporary lodging for more than 30 days; or
437.11 	(5) a public or private place not designed for, nor ordinarily used as, a regular sleeping 
437.12 	accommodation for human beings.
437.13 		Subd. 3.Administration. The commissioner, as authorized by Minnesota Statutes, 
437.14 	section 256.01, subdivision 2, paragraph (a), clause (6), shall contract with Youthprise to:
437.15 	(1) identify eligible homeless youth under this section;
437.16 	(2) provide technical assistance to cash stipend recipients;
437.17 	(3) engage with cash stipend recipients to develop youth-designed optional services;
437.18 	(4) evaluate the efficacy and cost-effectiveness of the pilot program;
437.19 	(5) collaborate with youth leaders of each county to identify and contract with the 
437.20 	appropriate service providers to offer financial coaching, housing navigation, employment, 
437.21 	education services, and trauma-informed mentoring and support; and
437.22 	(6) submit annual updates and a final report to the commissioner.
437.23 		Subd. 4.Eligibility. Homeless youth who are 18 to 24 years of age and who live in 
437.24 	Hennepin or St. Louis County at the time of initial enrollment are eligible to participate in 
437.25 	the pilot project.
437.26 		Subd. 5.Cash stipend. The commissioner, in consultation with Youthprise and Hennepin 
437.27 	and St. Louis Counties, shall establish a stipend amount for eligible homeless youth who 
437.28 	participate in the pilot project.
437.29 		Subd. 6.Stipends not to be considered income. (a) Notwithstanding any law to the 
437.30 	contrary, cash stipends under this section must not be considered income, assets, or personal 
437.31 	property for purposes of determining eligibility or recertifying eligibility for:
438.1 	(1) child care assistance programs under Minnesota Statutes, chapter 119B;
438.2 	(2) general assistance, Minnesota supplemental aid, and food support under Minnesota 
438.3 	Statutes, chapter 256D;
438.4 	(3) housing support under Minnesota Statutes, chapter 256I;
438.5 	(4) the Minnesota family investment program and diversionary work program under 
438.6 	Minnesota Statutes, chapter 256J; and
438.7 	(5) economic assistance programs under Minnesota Statutes, chapter 256P.
438.8 	(b) The commissioner must not consider cash stipends under this section as income or 
438.9 	assets for medical assistance under Minnesota Statutes, section 256B.056, subdivision 1a, 
438.10 	paragraph (a); 3; or 3c.
438.11 		Subd. 7.Report. The commissioner, in cooperation with Youthprise and Hennepin and 
438.12 	St. Louis Counties, shall submit an annual report on Youthprise's findings regarding the 
438.13 	efficacy and cost-effectiveness of the homeless youth cash stipend pilot project to the chairs 
438.14 	and ranking minority members of the legislative committees with jurisdiction over homeless 
438.15 	youth policy and finance by January 15, 2024, and each January 15 thereafter.
438.16 		Subd. 8.Expiration. This section expires June 30, 2027.

438.17 	Sec. 10. HOUSING STABILIZATION SERVICES INFLATIONARY 
438.18 	ADJUSTMENT.
 438.19 	The commissioner of human services shall seek federal approval to apply biennial 
438.20 	inflationary updates to housing stabilization services rates based on the consumer price 
438.21 	index. Beginning January 1, 2024, the commissioner must update rates using the most 
438.22 	recently available data from the consumer price index.

438.23 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval, 
438.24 	whichever is later. The commissioner shall notify the revisor of statutes when federal 
438.25 	approval is obtained.

439.1 	ARTICLE 12
439.2 	CHILDREN AND FAMILIES

439.3 	Section 1. Minnesota Statutes 2022, section 4.045, is amended to read:
439.4 	4.045 CHILDREN'S CABINET.
439.5 	The Children's Cabinet shall consist of the commissioners of education,; human services,;
439.6 	employment and economic development,; public safety,; corrections,; management and 
439.7 	budget,; health,; administration,; Housing Finance Agency, and; transportation,; and the 
439.8 	director of the Office of Strategic and Long-Range Planning children, youth, and families. 
439.9 	The governor shall designate one member to serve as cabinet chair. The chair is responsible 
439.10 	for ensuring that the duties of the Children's Cabinet are performed.

439.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

439.12 	Sec. 2. Minnesota Statutes 2022, section 10.65, subdivision 2, is amended to read:
439.13 		Subd. 2.Definitions. (a) As used in this section, the following terms have the meanings 
439.14 	given:
439.15 	(1) "agency" means the Department of Administration,; Department of Agriculture,; 
439.16 	Department of Children, Youth, and Families; Department of Commerce,; Department of 
439.17 	Corrections,; Department of Education,; Department of Employment and Economic 
439.18 	Development,; Department of Health,; Office of Higher Education,; Housing Finance 
439.19 	Agency,; Department of Human Rights,; Department of Human Services,; Department of 
439.20 	Information Technology Services,; Department of Iron Range Resources and Rehabilitation,;
439.21 	Department of Labor and Industry,; Minnesota Management and Budget,; Bureau of 
439.22 	Mediation Services,; Department of Military Affairs,; Metropolitan Council,; Department 
439.23 	of Natural Resources,; Pollution Control Agency,; Department of Public Safety,; Department 
439.24 	of Revenue,; Department of Transportation,; Department of Veterans Affairs,; Gambling 
439.25 	Control Board,; Racing Commission,; the Minnesota Lottery,; the Animal Health Board,;
439.26 	and the Board of Water and Soil Resources;
439.27 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
439.28 	governments in the development of policy on matters that have Tribal implications. 
439.29 	Consultation is the proactive, affirmative process of identifying and seeking input from 
439.30 	appropriate Tribal governments and considering their interest as a necessary and integral 
439.31 	part of the decision-making process. This definition adds to statutorily mandated notification 
439.32 	procedures. During a consultation, the burden is on the agency to show that it has made a 
439.33 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
440.1 	officials and the governing body or bodies of an individual Minnesota Tribal government 
440.2 	that the agency or an individual Tribal government may initiate. Formal meetings or 
440.3 	communication between top agency officials and the governing body of a Minnesota Tribal 
440.4 	government is a necessary element of consultation;
440.5 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
440.6 	statements, or other actions that have substantial direct effects on one or more Minnesota 
440.7 	Tribal governments, or on the distribution of power and responsibilities between the state 
440.8 	and Minnesota Tribal governments;
440.9 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
440.10 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
440.11 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
440.12 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
440.13 	and Upper Sioux Community; and
440.14 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
440.15 	allows the result of consultation to be included in the agency's decision-making process for 
440.16 	a matter that has Tribal implications.

440.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

440.18 	Sec. 3. Minnesota Statutes 2022, section 15.01, is amended to read:
440.19 	15.01 DEPARTMENTS OF THE STATE.
440.20 	The following agencies are designated as the departments of the state government: the 
440.21 	Department of Administration; the Department of Agriculture; the Department of Children, 
440.22 	Youth, and Families; the Department of Commerce; the Department of Corrections; the 
440.23 	Department of Education; the Department of Employment and Economic Development; 
440.24 	the Department of Health; the Department of Human Rights; the Department of Information 
440.25 	Technology Services; the Department of Iron Range Resources and Rehabilitation; the 
440.26 	Department of Labor and Industry; the Department of Management and Budget; the 
440.27 	Department of Military Affairs; the Department of Natural Resources; the Department of 
440.28 	Public Safety; the Department of Human Services; the Department of Revenue; the 
440.29 	Department of Transportation; the Department of Veterans Affairs; and their successor 
440.30 	departments.

440.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

441.1 	Sec. 4. Minnesota Statutes 2022, section 15.06, subdivision 1, is amended to read:
441.2 		Subdivision 1.Applicability. This section applies to the following departments or 
441.3 	agencies: the Departments of Administration,; Agriculture,; Children, Youth, and Families;
441.4 	Commerce,; Corrections,; Education,; Employment and Economic Development,; Health,;
441.5 	Human Rights,; Labor and Industry,; Management and Budget,; Natural Resources,; Public 
441.6 	Safety,; Human Services,; Revenue,; Transportation,; and Veterans Affairs; the Housing 
441.7 	Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range 
441.8 	Resources and Rehabilitation; the Department of Information Technology Services; the 
441.9 	Bureau of Mediation Services; and their successor departments and agencies. The heads of 
441.10 	the foregoing departments or agencies are "commissioners."

441.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

441.12 	Sec. 5. Minnesota Statutes 2022, section 15A.0815, subdivision 2, is amended to read:
441.13 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision shall 
441.14 	not exceed 133 percent of the salary of the governor. This limit must be adjusted annually 
441.15 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
441.16 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
441.17 	second prior year to October of the immediately prior year. The commissioner of management 
441.18 	and budget must publish the limit on the department's website. This subdivision applies to 
441.19 	the following positions:
441.20 	Commissioner of administration;
441.21 	Commissioner of agriculture;
441.22 	Commissioner of education;
441.23 	Commissioner of children, youth, and families;
441.24 	Commissioner of commerce;
441.25 	Commissioner of corrections;
441.26 	Commissioner of health;
441.27 	Commissioner, Minnesota Office of Higher Education;
441.28 	Commissioner, Housing Finance Agency;
441.29 	Commissioner of human rights;
441.30 	Commissioner of human services;
442.1 	Commissioner of labor and industry;
442.2 	Commissioner of management and budget;
442.3 	Commissioner of natural resources;
442.4 	Commissioner, Pollution Control Agency;
442.5 	Commissioner of public safety;
442.6 	Commissioner of revenue;
442.7 	Commissioner of employment and economic development;
442.8 	Commissioner of transportation; and
442.9 	Commissioner of veterans affairs.

442.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

442.11 	Sec. 6. Minnesota Statutes 2022, section 43A.08, subdivision 1a, is amended to read:
442.12 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
442.13 	agencies may designate additional unclassified positions according to this subdivision: the 
442.14 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
442.15 	Corrections; Education; Employment and Economic Development; Explore Minnesota 
442.16 	Tourism; Management and Budget; Health; Human Rights; Labor and Industry; Natural 
442.17 	Resources; Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; 
442.18 	the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of 
442.19 	Investment; the Office of Administrative Hearings; the Department of Information 
442.20 	Technology Services; the Offices of the Attorney General, Secretary of State, and State 
442.21 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
442.22 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
442.23 	A position designated by an appointing authority according to this subdivision must 
442.24 	meet the following standards and criteria:
442.25 	(1) the designation of the position would not be contrary to other law relating specifically 
442.26 	to that agency;
442.27 	(2) the person occupying the position would report directly to the agency head or deputy 
442.28 	agency head and would be designated as part of the agency head's management team;
442.29 	(3) the duties of the position would involve significant discretion and substantial 
442.30 	involvement in the development, interpretation, and implementation of agency policy;
443.1 	(4) the duties of the position would not require primarily personnel, accounting, or other 
443.2 	technical expertise where continuity in the position would be important;
443.3 	(5) there would be a need for the person occupying the position to be accountable to, 
443.4 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
443.5 	board or commission, or the employing constitutional officer;
443.6 	(6) the position would be at the level of division or bureau director or assistant to the 
443.7 	agency head; and
443.8 	(7) the commissioner has approved the designation as being consistent with the standards 
443.9 	and criteria in this subdivision.

443.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

443.11 	Sec. 7. Minnesota Statutes 2022, section 119B.011, subdivision 2, is amended to read:
443.12 		Subd. 2.Applicant. "Child care fund applicants" means all parents,; stepparents,; legal 
443.13 	guardians, or; eligible relative caregivers who are; relative custodians who accepted a transfer 
443.14 	of permanent legal and physical custody of a child under section 260C.515, subdivision 4, 
443.15 	or similar permanency disposition in Tribal code; successor custodians or guardians as 
443.16 	established by section 256N.22, subdivision 10; or foster parents providing care to a child 
443.17 	placed in a family foster home under section 260C.007, subdivision 16b. Applicants must 
443.18 	be members of the family and reside in the household that applies for child care assistance 
443.19 	under the child care fund.

443.20 	EFFECTIVE DATE. This section is effective August 25, 2024.

443.21 	Sec. 8. Minnesota Statutes 2022, section 119B.011, subdivision 5, is amended to read:
443.22 		Subd. 5.Child care. "Child care" means the care of a child by someone other than a 
443.23 	parent,; stepparent,; legal guardian,; eligible relative caregiver,; relative custodian who 
443.24 	accepted a transfer of permanent legal and physical custody of a child under section 
443.25 	260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
443.26 	custodian or guardian as established according to section 256N.22, subdivision 10; foster 
443.27 	parent providing care to a child placed in a family foster home under section 260C.007, 
443.28 	subdivision 16b; or the spouses spouse of any of the foregoing in or outside the child's own 
443.29 	home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

443.30 	EFFECTIVE DATE. This section is effective August 25, 2024.

444.1 	Sec. 9. Minnesota Statutes 2022, section 119B.011, subdivision 13, is amended to read:
444.2 		Subd. 13.Family. "Family" means parents,; stepparents,; guardians and their spouses, 
444.3 	or; other eligible relative caregivers and their spouses,; relative custodians who accepted a 
444.4 	transfer of permanent legal and physical custody of a child under section 260C.515, 
444.5 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
444.6 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
444.7 	foster parents providing care to a child placed in a family foster home under section 
444.8 	260C.007, subdivision 16b, and their spouses; and their blood related the blood-related
444.9 	dependent children and adoptive siblings under the age of 18 years living in the same home 
444.10 	including as any of the above. Family includes children temporarily absent from the 
444.11 	household in settings such as schools, foster care, and residential treatment facilities or 
444.12 	parents, stepparents, guardians and their spouses, or other relative caregivers and their 
444.13 	spouses and adults temporarily absent from the household in settings such as schools, military 
444.14 	service, or rehabilitation programs. An adult family member who is not in an authorized 
444.15 	activity under this chapter may be temporarily absent for up to 60 days. When a minor 
444.16 	parent or parents and his, her, or their child or children are living with other relatives, and 
444.17 	the minor parent or parents apply for a child care subsidy, "family" means only the minor 
444.18 	parent or parents and their child or children. An adult age 18 or older who meets this 
444.19 	definition of family and is a full-time high school or postsecondary student may be considered 
444.20 	a dependent member of the family unit if 50 percent or more of the adult's support is provided 
444.21 	by the parents,; stepparents,; guardians and their spouses; relative custodians who accepted 
444.22 	a transfer of permanent legal and physical custody of a child under section 260C.515, 
444.23 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
444.24 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
444.25 	foster parents providing care to a child placed in a family foster home under section 
444.26 	260C.007, subdivision 16b, and their spouses; or eligible relative caregivers and their spouses 
444.27 	residing in the same household.

444.28 	EFFECTIVE DATE. This section is effective August 25, 2024.

444.29 	Sec. 10. Minnesota Statutes 2022, section 119B.03, subdivision 4a, is amended to read:
444.30 		Subd. 4a.Temporary reprioritization Funding priorities. (a) Notwithstanding 
444.31 	subdivision 4 In the event that inadequate funding necessitates the use of waiting lists, 
444.32 	priority for child care assistance under the basic sliding fee assistance program shall be 
444.33 	determined according to this subdivision beginning July 1, 2021, through May 31, 2024.
445.1 	(b) First priority must be given to eligible non-MFIP families who do not have a high 
445.2 	school diploma or commissioner of education-selected high school equivalency certification 
445.3 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
445.4 	education leading to employment and who need child care assistance to participate in the 
445.5 	education program. This includes student parents as defined under section 119B.011, 
445.6 	subdivision 19b. Within this priority, the following subpriorities must be used:
445.7 	(1) child care needs of minor parents;
445.8 	(2) child care needs of parents under 21 years of age; and
445.9 	(3) child care needs of other parents within the priority group described in this paragraph.
445.10 	(c) Second priority must be given to families in which at least one parent is a veteran, 
445.11 	as defined under section 197.447.
445.12 	(d) Third priority must be given to eligible families who do not meet the specifications 
445.13 	of paragraph (b), (c), (e), or (f).
445.14 	(e) Fourth priority must be given to families who are eligible for portable basic sliding 
445.15 	fee assistance through the portability pool under subdivision 9.
445.16 	(f) Fifth priority must be given to eligible families receiving services under section 
445.17 	119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition 
445.18 	year, or if the parents are no longer receiving or eligible for DWP supports.
445.19 	(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on 
445.20 	the date they complete their transition year under section 119B.011, subdivision 20.

445.21 	EFFECTIVE DATE. This section is effective July 1, 2023.

445.22 	Sec. 11. Minnesota Statutes 2022, section 119B.13, subdivision 1, is amended to read:
445.23 		Subdivision 1.Subsidy restrictions. (a) Beginning November 15, 2021 October 30, 
445.24 	2023, the maximum rate paid for child care assistance in any county or county price cluster 
445.25 	under the child care fund shall be:
445.26 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2021 child 
445.27 	care provider rate survey or the rates in effect at the time of the update; and.
445.28 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
445.29 	2021 child care provider rate survey or the rates in effect at the time of the update.
446.1 	(b) Beginning the first full service period on or after January 1, 2025, and every three 
446.2 	years thereafter, the maximum rate paid for child care assistance in a county or county price 
446.3 	cluster under the child care fund shall be:
446.4 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2024 most 
446.5 	recent child care provider rate survey or the rates in effect at the time of the update; and.
446.6 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
446.7 	2024 child care provider rate survey or the rates in effect at the time of the update.
446.8 	The rates under paragraph (a) continue until the rates under this paragraph go into effect.
446.9 	(c) For a child care provider located within the boundaries of a city located in two or 
446.10 	more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child 
446.11 	care assistance shall be equal to the maximum rate paid in the county with the highest 
446.12 	maximum reimbursement rates or the provider's charge, whichever is less. The commissioner 
446.13 	may: (1) assign a county with no reported provider prices to a similar price cluster; and (2) 
446.14 	consider county level access when determining final price clusters.
446.15 	(d) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
446.16 	of the maximum rate allowed under this subdivision.
446.17 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
446.18 	county shall pay the provider's full charges for every child in care up to the maximum 
446.19 	established. The commissioner shall determine the maximum rate for each type of care on 
446.20 	an hourly, full-day, and weekly basis, including special needs and disability care.
446.21 	(f) If a child uses one provider, the maximum payment for one day of care must not 
446.22 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
446.23 	weekly rate.
446.24 	(g) If a child uses two providers under section 119B.097, the maximum payment must 
446.25 	not exceed:
446.26 	(1) the daily rate for one day of care;
446.27 	(2) the weekly rate for one week of care by the child's primary provider; and
446.28 	(3) two daily rates during two weeks of care by a child's secondary provider.
446.29 	(h) Child care providers receiving reimbursement under this chapter must not be paid 
446.30 	activity fees or an additional amount above the maximum rates for care provided during 
446.31 	nonstandard hours for families receiving assistance.
447.1 	(i) If the provider charge is greater than the maximum provider rate allowed, the parent 
447.2 	is responsible for payment of the difference in the rates in addition to any family co-payment 
447.3 	fee.
447.4 	(j) Beginning October 30, 2023, the maximum registration fee paid for child care 
447.5 	assistance in any county or county price cluster under the child care fund shall be set as 
447.6 	follows: (1) beginning November 15, 2021, the greater of the 40th 75th percentile of the 
447.7 	2021 most recent child care provider rate survey or the registration fee in effect at the time 
447.8 	of the update; and (2) beginning the first full service period on or after January 1, 2025, the 
447.9 	maximum registration fee shall be the greater of the 40th percentile of the 2024 child care 
447.10 	provider rate survey or the registration fee in effect at the time of the update. The registration 
447.11 	fees under clause (1) continue until the registration fees under clause (2) go into effect.
447.12 	(k) Maximum registration fees must be set for licensed family child care and for child 
447.13 	care centers. For a child care provider located in the boundaries of a city located in two or 
447.14 	more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid 
447.15 	for child care assistance shall be equal to the maximum registration fee paid in the county 
447.16 	with the highest maximum registration fee or the provider's charge, whichever is less.

447.17 	Sec. 12. [119B.196] FAMILY, FRIEND, AND NEIGHBOR GRANT PROGRAM.
447.18 		Subdivision 1.Establishment. The commissioner of human services shall establish a 
447.19 	family, friend, and neighbor (FFN) grant program to promote children's social-emotional 
447.20 	learning and healthy development, early literacy, and other skills to succeed as learners and 
447.21 	to foster community partnerships that will help children thrive when they enter school.
447.22 		Subd. 2.Grant awards. The commissioner may award grants under this section to the 
447.23 	following entities working with FFN caregivers: community-based organizations, nonprofit 
447.24 	organizations, local or regional libraries, local public health agencies, and Indian Tribes 
447.25 	and Tribal organizations. Grantees may use grant money received under this section to:
447.26 	(1) provide culturally and linguistically appropriate training, support, and resources to 
447.27 	FFN caregivers and children's families to improve and promote children's health, safety, 
447.28 	nutrition, and learning;
447.29 	(2) connect FFN caregivers and children's families with community resources that support 
447.30 	the families' physical and mental health and economic and developmental needs;
447.31 	(3) connect FFN caregivers and children's families to early childhood screening programs 
447.32 	and facilitate referrals to state and local agencies, schools, community organizations, and 
447.33 	medical providers, as appropriate;
448.1 	(4) provide FFN caregivers and children's families with information about high-quality, 
448.2 	community-based early care and learning programs and financial assistance available to the 
448.3 	families, including but not limited to child care assistance under this chapter and early 
448.4 	learning scholarships under section 124D.165;
448.5 	(5) provide FFN caregivers with information about registering as a legal nonlicensed 
448.6 	child care provider as defined in section 119B.011, subdivision 16, and establishing a 
448.7 	licensed family or group family child care program;
448.8 	(6) provide transportation for FFN caregivers and children's families to educational and 
448.9 	other early childhood training activities;
448.10 	(7) translate materials for FFN caregivers and children's families and provide translation 
448.11 	services to FFN caregivers and children's families;
448.12 	(8) develop and disseminate social-emotional learning, health and safety, and early 
448.13 	learning kits to FFN caregivers; and
448.14 	(9) establish play and learning groups for FFN caregivers.
448.15 		Subd. 3.Administration. Applicants must apply for the grants using the forms and 
448.16 	according to timelines established by the commissioner.
448.17 		Subd. 4.Reporting requirements. (a) Grantees shall provide data and program outcomes 
448.18 	to the commissioner in a form and manner specified by the commissioner for the purpose 
448.19 	of evaluating the grant program.
448.20 	(b) Beginning February 1, 2024, and every two years thereafter, the commissioner shall 
448.21 	report to the legislature on program outcomes.

448.22 	Sec. 13. [143.01] DEFINITIONS.
448.23 		Subdivision 1.Application. The definitions in this section apply to this chapter.
448.24 		Subd. 2.Commissioner. "Commissioner" means the commissioner of children, youth, 
448.25 	and families.
448.26 		Subd. 3.Department. "Department" means the Department of Children, Youth, and 
448.27 	Families.

448.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

449.1 	Sec. 14. [143.02] CREATION OF THE DEPARTMENT OF CHILDREN, YOUTH, 
449.2 	AND FAMILIES.
449.3 		Subdivision 1.Department. The Department of Children, Youth, and Families is 
449.4 	established.
449.5 		Subd. 2.Transfer and restructuring provisions. The restructuring of agencies under 
449.6 	this act must be conducted in accordance with sections 15.039 and 43A.045.
449.7 		Subd. 3.Successor and employee protection clause. (a) Personnel relating to the 
449.8 	functions assigned to the commissioner in section 143.03 are transferred to the department 
449.9 	effective 30 days after approval by the commissioner.
449.10 	(b) Before the commissioner's appointment, personnel relating to the functions in this 
449.11 	section may be transferred beginning July 1, 2024, with 30 days' notice from the 
449.12 	commissioner of management and budget.
449.13 	(c) All employees transferred to the department remain in the same employment status, 
449.14 	bargaining unit, and civil service protection as the employees had before the transfer. All 
449.15 	collective bargaining agreements that cover any employee of the Departments of Human 
449.16 	Services, Education, Health, or Public Safety who is transferred to the Department of 
449.17 	Children, Youth, and Families remain in effect.
449.18 	(d) To the extent that departmental changes affect the operations of any school district 
449.19 	or charter school, employers have the obligation to bargain about any changes affecting or 
449.20 	relating to employees' terms and conditions of employment if such changes are necessary 
449.21 	during or after the term of an existing collective bargaining agreement.

449.22 	EFFECTIVE DATE. This section is effective July 1, 2024.

449.23 	Sec. 15. [143.03] COMMISSIONER.
449.24 		Subdivision 1.General. The department is under the administrative control of the 
449.25 	commissioner. The commissioner is appointed by the governor with the advice and consent 
449.26 	of the senate.  The commissioner has the general powers provided in section 15.06, 
449.27 	subdivision 6. The commissioner's salary must be established according to the procedure 
449.28 	in section 15A.0815, subdivision 5, in the same range as specified for the commissioner of 
449.29 	management and budget.
449.30 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
449.31 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
449.32 	out the duties and responsibilities of the commissioner. Any money received under this 
450.1 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
450.2 	The commissioner must biennially report to the chairs and ranking minority members of 
450.3 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
450.4 	list of all grants and gifts received under this subdivision.
450.5 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
450.6 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
450.7 	commissioner.
450.8 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
450.9 	private agencies and for-profit and nonprofit organizations, and individuals using appropriated 
450.10 	money.
450.11 	(d) The commissioner must develop program objectives and performance measures for 
450.12 	evaluating progress toward achieving the objectives. The commissioner must identify the 
450.13 	objectives, performance measures, and current status of achieving the measures in a biennial 
450.14 	report to the chairs and ranking minority members of relevant legislative committees and 
450.15 	divisions. The report is due no later than January 15 each even-numbered year. The report 
450.16 	must include, when possible, the following objectives:
450.17 	(1) centering and including the lived experiences of children and youth, including those 
450.18 	with disabilities and mental illness and their families, in all aspects of the department's work;
450.19 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
450.20 	children and youth facing racial, economic, or geographic inequities;
450.21 	(3) increasing coordination and reducing inefficiencies among the department's programs 
450.22 	and the funding sources that support the programs;
450.23 	(4) increasing the alignment and coordination of family access to child care and early 
450.24 	learning programs and improving systems of support for early childhood and learning 
450.25 	providers and services;
450.26 	(5) improving the connection between the department's programs and the kindergarten 
450.27 	through grade 12 and higher education systems; and
450.28 	(6) minimizing and streamlining the effort required of youth and families to receive 
450.29 	services to which the youth and families are entitled.

450.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

451.1 	Sec. 16. [143.04] STATE AND COUNTY SYSTEMS.
451.2 		Subdivision 1.Establishment of systems. (a) The commissioner shall establish and 
451.3 	enhance computer systems necessary for the efficient operation of the programs the 
451.4 	commissioner supervises, including:
451.5 	(1) management and administration of the Supplemental Nutrition Assistance Program 
451.6 	(SNAP) and income maintenance program, including the electronic distribution of benefits; 
451.7 	and
451.8 	(2) management and administration of the child support enforcement program.
451.9 	(b) The commissioner's development costs incurred by computer systems for statewide 
451.10 	programs administered with that computer system and mandated by state or federal law 
451.11 	must not be assessed against county agencies. The commissioner may charge a county for 
451.12 	development and operating costs incurred by computer systems for functions requested by 
451.13 	the county and not mandated by state or federal law for programs administered by the 
451.14 	computer system incurring the cost.
451.15 	(c) The commissioner shall distribute the nonfederal share of the costs of operating and 
451.16 	maintaining the systems to the commissioner and to the counties participating in the system 
451.17 	in a manner that reflects actual system usage, except that the nonfederal share of the costs 
451.18 	of the MAXIS computer system and child support enforcement systems for statewide 
451.19 	programs administered by those systems and mandated by state or federal law shall be borne 
451.20 	entirely by the commissioner.
451.21 	(d) The commissioner may enter into contractual agreements with federally recognized 
451.22 	Indian Tribes with a reservation in Minnesota to participate in state-operated computer 
451.23 	systems related to the management and administration of the SNAP, income maintenance, 
451.24 	and child support enforcement programs to the extent necessary for the Tribe to operate a 
451.25 	federally approved family assistance program or any other program under the supervision 
451.26 	of the commissioner.
451.27 		Subd. 2.State systems account created. A state systems account for the Department 
451.28 	of Children, Youth, and Families is created in the state treasury. Money collected by the 
451.29 	commissioner for the programs in subdivision 1 must be deposited in the account. Money 
451.30 	in the state systems account and federal matching money are appropriated to the 
451.31 	commissioner for purposes of this section.

451.32 	EFFECTIVE DATE. This section is effective July 1, 2024.

452.1 	Sec. 17. [143.05] RULEMAKING.
452.2 	(a) The commissioner may use the procedure in section 14.386, paragraph (a), to adopt 
452.3 	rules necessary to implement the responsibilities transferred under this article or through 
452.4 	section 16B.37. Section 14.386, paragraph (b), does not apply to these rules.
452.5 	(b) The commissioner must amend Minnesota Rules to make conforming changes related 
452.6 	to the transfer of responsibilities under this act or through section 16B.37. The commissioner 
452.7 	must obtain the approval of the commissioners of human services, education, health, and 
452.8 	public safety for any amendments to or repeal of rules in existence on the effective date of 
452.9 	this section and administered under the authority of those agencies.
452.10 	(c) The time limit in section 14.125 is extended to 36 months for rulemaking under 
452.11 	paragraphs (a) and (b). The commissioner must publish a notice of intent to adopt rules or 
452.12 	a notice of hearing within 36 months of the effective date reported under section 143.05, 
452.13 	subdivision 1, paragraph (c).
452.14 	(d) The commissioner may adopt rules for the administration of activities related to the 
452.15 	department. Rules adopted under this paragraph are subject to the rulemaking requirements 
452.16 	of chapter 14.

452.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

452.18 	Sec. 18. [145.9285] COMMUNITY SOLUTIONS FOR HEALTHY CHILD 
452.19 	DEVELOPMENT GRANT PROGRAM.
452.20 		Subdivision 1.Establishment. The commissioner of health shall establish the community 
452.21 	solutions for healthy child development grant program. The purpose of the program is to:
452.22 	(1) improve child development outcomes as related to the well-being of children of color 
452.23 	and American Indian children from prenatal to grade 3 and their families, including but not 
452.24 	limited to the goals outlined by the Department of Human Services' early childhood systems 
452.25 	reform effort for: early learning; health and well-being; economic security; and safe, stable, 
452.26 	nurturing relationships and environments by funding community-based solutions for 
452.27 	challenges that are identified by the affected community;
452.28 	(2) reduce racial disparities in children's health and development from prenatal to grade 
452.29 	3; and
452.30 	(3) promote racial and geographic equity.
452.31 		Subd. 2.Commissioner's duties. The commissioner shall:
453.1 	(1) develop a request for proposals for the healthy child development grant program in 
453.2 	consultation with the Community Solutions Advisory Council;
453.3 	(2) provide outreach, technical assistance, and program development support to increase 
453.4 	capacity for new and existing service providers in order to better meet statewide needs, 
453.5 	particularly in greater Minnesota and areas where services to reduce health disparities have 
453.6 	not been established;
453.7 	(3) review responses to requests for proposals, in consultation with the Community 
453.8 	Solutions Advisory Council, and award grants under this section;
453.9 	(4) ensure communication with the ethnic councils, Minnesota Indian Affairs Council, 
453.10 	and the state advisory council on early childhood education and care on the request for 
453.11 	proposal process;
453.12 	(5) establish a transparent and objective accountability process, in consultation with the 
453.13 	Community Solutions Advisory Council, that is focused on outcomes that grantees agree 
453.14 	to achieve;
453.15 	(6) provide grantees with access to data to assist grantees in establishing and 
453.16 	implementing effective community-led solutions;
453.17 	(7) maintain data on outcomes reported by grantees; and
453.18 	(8) contract with an independent third-party entity to evaluate the success of the grant 
453.19 	program and to build the evidence base for effective community solutions in reducing health 
453.20 	disparities of children of color and American Indian children from prenatal to grade 3.
453.21 		Subd. 3.Community Solutions Advisory Council; establishment; duties; 
453.22 	compensation. (a) The commissioner, in consultation with the three ethnic councils under 
453.23 	section 15.0145 and the Indian Affairs Council under section 3.922, shall appoint a 
453.24 	13-member Community Solutions Advisory Council, as follows:
453.25 	(1) three members representing Black Minnesotans of African heritage, one of whom 
453.26 	is a parent with a child under the age of eight years at the time of the appointment;
453.27 	(2) three members representing Latino and Latina Minnesotans with an ethnic heritage 
453.28 	from Mexico, a country in Central or South America, Cuba, the Dominican Republic, or 
453.29 	Puerto Rico, one of whom is a parent with a child under the age of eight years at the time 
453.30 	of the appointment;
454.1 	(3) three members representing Asian-Pacific Minnesotans with Asian-Pacific heritage, 
454.2 	one of whom is a parent with a child under the age of eight years at the time of the 
454.3 	appointment;
454.4 	(4) three members representing the American Indian community, one of whom is a 
454.5 	parent of a child under the age of eight years at the time of the appointment; and
454.6 	(5) one member with research or academic expertise in racial equity and healthy child 
454.7 	development.
454.8 	(b) The commissioner must include representation from organizations with expertise in 
454.9 	advocacy on behalf of communities of color and Indigenous communities in areas related 
454.10 	to the grant program.
454.11 	(c) At least three of the 13 members appointed under paragraph (a), clauses (1) to (4), 
454.12 	of the advisory council must come from outside the seven-county metropolitan area.
454.13 	(d) The Community Solutions Advisory Council shall:
454.14 	(1) advise the commissioner on the development of the request for proposals for 
454.15 	community solutions healthy child development grants. In advising the commissioner, the 
454.16 	council must consider how to build on the capacity of communities to promote child and 
454.17 	family well-being and address social determinants of healthy child development;
454.18 	(2) review responses to requests for proposals and advise the commissioner on the 
454.19 	selection of grantees and grant awards;
454.20 	(3) advise the commissioner on the establishment of a transparent and objective 
454.21 	accountability process focused on outcomes the grantees agree to achieve;
454.22 	(4) advise the commissioner on ongoing oversight and necessary support in the 
454.23 	implementation of the program; and
454.24 	(5) support the commissioner on other racial equity and early childhood grant efforts.
454.25 	(e) Member terms, compensation, and removal shall be as provided in section 15.059, 
454.26 	subdivisions 2 to 4.
454.27 	(f) The commissioner must convene meetings of the advisory council at least four times 
454.28 	per year.
454.29 	(g) The advisory council shall expire upon expiration or repeal of the healthy childhood 
454.30 	development program.
455.1 	(h) The commissioner of health must provide meeting space and administrative support 
455.2 	for the advisory council.
455.3 		Subd. 4.Eligible grantees. Organizations eligible to receive grant funding under this 
455.4 	section include:
455.5 	(1) organizations or entities that work with communities of color and American Indian 
455.6 	communities;
455.7 	(2) Tribal Nations and Tribal organizations as defined in section 658P of the Child Care 
455.8 	and Development Block Grant Act of 1990; and
455.9 	(3) organizations or entities focused on supporting healthy child development.
455.10 		Subd. 5.Strategic consideration and priority of proposals; eligible populations; 
455.11 	grant awards. (a) The commissioner, in consultation with the Community Solutions 
455.12 	Advisory Council, shall develop a request for proposals for healthy child development 
455.13 	grants. In developing the proposals and awarding the grants, the commissioner shall consider 
455.14 	building on the capacity of communities to promote child and family well-being and address 
455.15 	social determinants of healthy child development. Proposals must focus on increasing racial 
455.16 	equity and healthy child development and reducing health disparities experienced by children 
455.17 	of color and American Indian children from prenatal to grade 3 and their families.
455.18 	(b) In awarding the grants, the commissioner shall provide strategic consideration and 
455.19 	give priority to proposals from:
455.20 	(1) organizations or entities led by people of color and serving communities of color;
455.21 	(2) organizations or entities led by American Indians and serving American Indians, 
455.22 	including Tribal Nations and Tribal organizations;
455.23 	(3) organizations or entities with proposals focused on healthy development from prenatal 
455.24 	to grade 3;
455.25 	(4) organizations or entities with proposals focusing on multigenerational solutions;
455.26 	(5) organizations or entities located in or with proposals to serve communities located 
455.27 	in counties that are moderate to high risk according to the Wilder Research Risk and Reach 
455.28 	Report; and
455.29 	(6) community-based organizations that have historically served communities of color 
455.30 	and American Indians and have not traditionally had access to state grant funding.
455.31 	The advisory council may recommend additional strategic considerations and priorities to 
455.32 	the commissioner.
456.1 	(c) The first round of grants must be awarded no later than April 15, 2024. Grants must 
456.2 	be awarded annually thereafter. Grants are awarded for a period of three years.
456.3 		Subd. 6.Geographic distribution of grants. The commissioner and the advisory council 
456.4 	shall ensure that grant money is prioritized and awarded to organizations and entities that 
456.5 	are within counties that have a higher proportion of people of color and American Indians 
456.6 	than the state average, to the extent possible.
456.7 		Subd. 7.Report. Grantees must report grant program outcomes to the commissioner on 
456.8 	the forms and according to the timelines established by the commissioner.

456.9 	Sec. 19. Minnesota Statutes 2022, section 256.014, subdivision 1, is amended to read:
456.10 		Subdivision 1.Establishment of systems. (a) The commissioner of human services 
456.11 	shall establish and enhance computer systems necessary for the efficient operation of the
456.12 	medical assistance and other programs the commissioner supervises, including:.
456.13 	(1) management and administration of the Supplemental Nutrition Assistance Program 
456.14 	(SNAP) and income maintenance program, including the electronic distribution of benefits;
456.15 	(2) management and administration of the child support enforcement program; and
456.16 	(3) administration of medical assistance.
456.17 	(b) The commissioner's development costs incurred by computer systems for statewide 
456.18 	programs administered by that computer system and mandated by state or federal law must 
456.19 	not be assessed against county agencies. The commissioner may charge a county for 
456.20 	development and operating costs incurred by computer systems for functions requested by 
456.21 	the county and not mandated by state or federal law for programs administered by the 
456.22 	computer system incurring the cost.
456.23 	(c) The commissioner shall distribute the nonfederal share of the costs of operating and 
456.24 	maintaining the systems to the commissioner and to the counties participating in the system 
456.25 	in a manner that reflects actual system usage, except that the nonfederal share of the costs 
456.26 	of the MAXIS computer system and child support enforcement systems for statewide 
456.27 	programs administered by those systems that system and mandated by state or federal law 
456.28 	shall be borne entirely by the commissioner.
456.29 	The commissioner may enter into contractual agreements with federally recognized 
456.30 	Indian Tribes with a reservation in Minnesota to participate in state-operated computer 
456.31 	systems related to the management and administration of the SNAP, income maintenance, 
456.32 	child support enforcement, and medical assistance programs program to the extent necessary 
457.1 	for the Tribe to operate a federally approved family the medical assistance program or any 
457.2 	other program under the supervision of the commissioner.

457.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

457.4 	Sec. 20. Minnesota Statutes 2022, section 256.014, subdivision 2, is amended to read:
457.5 		Subd. 2.State systems account created. A state systems account for the Department 
457.6 	of Human Services is created in the state treasury. Money collected by the commissioner 
457.7 	of human services for the programs in subdivision 1 must be deposited in the account. 
457.8 	Money in the state systems account and federal matching money is appropriated to the 
457.9 	commissioner of human services for purposes of this section.

457.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

457.11 	Sec. 21. [256E.341] PREPARED MEALS FOOD RELIEF GRANTS.
457.12 		Subdivision 1.Establishment. The commissioner of human services shall establish a 
457.13 	prepared meals grant program to provide hunger relief to Minnesotans experiencing food 
457.14 	insecurity and who have difficulty preparing meals due to limited mobility, disability, age, 
457.15 	or limited resources to prepare their own meal.
457.16 		Subd. 2.Eligible grantees. Eligible grantees are nonprofit organizations and federally 
457.17 	recognized American Indian Tribes or Bands located in Minnesota as defined in section 
457.18 	10.65, with a demonstrated history of providing and distributing prepared meals customized 
457.19 	for the population that they serve, including tailoring meals to the cultural, religious, and 
457.20 	dietary needs of the population served. Eligible grantees must prepare meals in a licensed 
457.21 	commercial kitchen and distribute meals according to ServSafe guidelines.
457.22 		Subd. 3.Application. Applicants for grant money under this section shall apply to the 
457.23 	commissioner on the forms and in the time and manner established by the commissioner.
457.24 		Subd. 4.Allowable uses of grant funds. (a) Eligible grantees must use grant money 
457.25 	awarded under this section to fund a prepared meals program that primarily targets individuals 
457.26 	between 18 and 60 years of age, and their dependents, experiencing food insecurity. Grantees 
457.27 	must avoid duplication with existing state and federal meal programs.
457.28 	(b) Grant money must supplement, but not supplant, any state or federal funding used 
457.29 	to provide prepared meals to Minnesotans experiencing food insecurity.
457.30 		Subd. 5.Duties of the commissioner. (a) The commissioner shall develop a process 
457.31 	for determining eligible grantees under this section.
458.1 	(b) In granting money, the commissioner shall prioritize applicants that:
458.2 	(1) have demonstrated ability to provide prepared meals to racially and geographically 
458.3 	diverse populations at greater risk for food insecurity;
458.4 	(2) work with external community partners to distribute meals targeting nontraditional 
458.5 	meal sites reaching those most in need; and
458.6 	(3) have a demonstrated history of sourcing at least 50 percent of the prepared meal 
458.7 	ingredients from:
458.8 	(i) Minnesota food producers and processors; or
458.9 	(ii) food that is donated or would otherwise be waste.
458.10 	(c) The commissioner shall consider geographic distribution to ensure statewide coverage 
458.11 	when awarding grants and minimize the number of grantees to simplify administrative 
458.12 	burdens and costs.

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

458.14 	Sec. 22. [256E.38] DIAPER DISTRIBUTION GRANT PROGRAM.
458.15 		Subdivision 1.Establishment; purpose. The commissioner of human services shall 
458.16 	establish a diaper distribution program to award competitive grants to eligible applicants 
458.17 	to provide diapers to underresourced families statewide.
458.18 		Subd. 2.Eligibility. To be eligible for a grant under this section, an applicant must 
458.19 	demonstrate its capacity to distribute diapers statewide by having:
458.20 	(1) a network of well-established partners for diaper distribution;
458.21 	(2) the infrastructure needed to efficiently manage diaper procurement and distribution 
458.22 	statewide;
458.23 	(3) relationships with national organizations that support and enhance the work of 
458.24 	addressing diaper need;
458.25 	(4) the ability to engage in building community awareness of diaper need and advocate 
458.26 	for diaper need at local, state, and federal levels;
458.27 	(5) a commitment to and demonstration of working with organizations across ideological 
458.28 	and political spectrums;
458.29 	(6) the ability to address diaper need for children from birth through early childhood; 
458.30 	and
459.1 	(7) a commitment to working within an equity framework by ensuring access to 
459.2 	organizations that provide culturally specific services or are located in communities with 
459.3 	high concentrations of poverty.
459.4 		Subd. 3.Application. Applicants must apply to the commissioner in a form and manner 
459.5 	prescribed by the commissioner. Applications must be filed at the times and for the periods 
459.6 	determined by the commissioner.
459.7 		Subd. 4.Eligible uses of grant money. An eligible applicant that receives grant money 
459.8 	under this section shall use the money to purchase diapers and wipes and may use up to 
459.9 	four percent of the money for administrative costs.
459.10 		Subd. 5.Enforcement. (a) An eligible applicant that receives grant money under this 
459.11 	section must:
459.12 	(1) retain records documenting expenditure of the grant money;
459.13 	(2) report to the commissioner on the use of the grant money; and
459.14 	(3) comply with any additional requirements imposed by the commissioner.
459.15 	(b) The commissioner may require that a report submitted under this subdivision include 
459.16 	an independent audit.

459.17 	Sec. 23. DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING 
459.18 	FEE MONEY.
 459.19 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
459.20 	commissioner of human services must allocate additional basic sliding fee child care money 
459.21 	for calendar year 2025 to counties and Tribes to account for the change in the definition of 
459.22 	family in Minnesota Statutes, section 119B.011, in this article. In allocating the additional 
459.23 	money, the commissioner shall consider:
459.24 	(1) the number of children in the county or Tribe who receive care from a relative 
459.25 	custodian who accepted a transfer of permanent legal and physical custody of a child under 
459.26 	Minnesota Statutes, section 260C.515, subdivision 4, or similar permanency disposition in 
459.27 	Tribal code; successor custodian or guardian as established according to Minnesota Statutes, 
459.28 	section 256N.22, subdivision 10; or foster parents in a family foster home under Minnesota 
459.29 	Statutes, section 260C.007, subdivision 16b; and
459.30 	(2) the average basic sliding fee cost of care in the county or Tribe.

460.1 	Sec. 24. DIRECTION TO COMMISSIONER; COST ESTIMATION MODEL FOR 
460.2 	EARLY CARE AND LEARNING PROGRAMS.
 460.3 	(a) The commissioner of human services shall develop a cost estimation model for 
460.4 	providing early care and learning in the state. In developing the model, the commissioner 
460.5 	shall consult with relevant entities and stakeholders, including but not limited to the State 
460.6 	Advisory Council on Early Childhood Education and Care under Minnesota Statutes, section 
460.7 	124D.141; county administrators; child care resource and referral organizations under 
460.8 	Minnesota Statutes, section 119B.19, subdivision 1; and organizations representing 
460.9 	caregivers, teachers, and directors.
460.10 	(b) The commissioner shall contract with an organization with experience and expertise 
460.11 	in early care and learning cost estimation modeling to conduct the work outlined in this 
460.12 	section. If practicable, the commissioner shall contract with First Children's Finance.
460.13 	(c) The commissioner shall ensure that the model can estimate variation in the cost of 
460.14 	early care and learning by:
460.15 	(1) quality of care;
460.16 	(2) geographic area;
460.17 	(3) type of child care provider and associated licensing standards;
460.18 	(4) age of child;
460.19 	(5) whether the early care and learning is inclusive, including caring for children with 
460.20 	disabilities alongside children without disabilities;
460.21 	(6) provider and staff compensation, including benefits such as professional development 
460.22 	stipends, health care benefits, and retirement benefits;
460.23 	(7) a provider's fixed costs, including rent and mortgage payments, property taxes, and 
460.24 	business-related insurance payments;
460.25 	(8) a provider's operating expenses, including expenses for training and substitutes; and
460.26 	(9) a provider's hours of operation.
460.27 	(d) By January 30, 2025, the commissioner must submit a report to the legislative 
460.28 	committees with jurisdiction over early childhood programs on the development of the cost 
460.29 	estimation model. The report shall include:
460.30 	(1) recommendations for how the model could be used in conjunction with a child care 
460.31 	and early education professional wage scale to set provider payment rates for child care 
461.1 	assistance under Minnesota Statutes, chapter 119B, and great start scholarships under 
461.2 	Minnesota Statutes, section 119C.01; and
461.3 	(2) a plan to seek federal approval to use the model for provider payment rates for child 
461.4 	care assistance.

461.5 	Sec. 25. DIRECTION TO COMMISSIONER; INCREASE FOR MAXIMUM CHILD 
461.6 	CARE ASSISTANCE RATES.
 461.7 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
461.8 	commissioner must allocate the additional basic sliding fee child care money for calendar 
461.9 	year 2024 to counties for updated maximum rates based on relative need to cover maximum 
461.10 	rate increases. In distributing the additional money, the commissioner shall consider the 
461.11 	following factors by county:
461.12 	(1) the number of children;
461.13 	(2) the provider type;
461.14 	(3) the age of children served; and
461.15 	(4) the amount of the increase in maximum rates.

461.16 	Sec. 26. FIRST APPOINTMENTS AND TERMS FOR THE COMMUNITY 
461.17 	SOLUTIONS ADVISORY COUNCIL.
 461.18 	The commissioner of health must appoint members to the Community Solutions Advisory 
461.19 	Council under Minnesota Statutes, section 145.9285, by July 1, 2023, and must convene 
461.20 	the first meeting by September 15, 2023. The commissioner must designate half of the 
461.21 	members appointed under Minnesota Statutes, section 145.9285, subdivision 3, paragraph 
461.22 	(a), clauses (1) to (4), to serve a two-year term and the remaining members will serve a 
461.23 	four-year term. The commissioner may appoint people who are serving on or who have 
461.24 	served on the council established under Laws 2019, First Special Session chapter 9, article 
461.25 	11, section 107, subdivision 3.

461.26 	Sec. 27. APPOINTMENT OF COMMISSIONER OF CHILDREN, YOUTH, AND 
461.27 	FAMILIES.
 461.28 	The governor shall appoint a commissioner-designee of the Department of Children, 
461.29 	Youth, and Families. The person appointed becomes the governor's appointee as the 
461.30 	commissioner of children, youth, and families on July 1, 2024.

461.31 	EFFECTIVE DATE. This section is effective July 1, 2023.

462.1 	Sec. 28. DATA PRACTICES.
 462.2 	(a) To the extent not prohibited by state or federal law, and notwithstanding the data's 
462.3 	classification under Minnesota Statutes, chapter 13:
462.4 	(1) the commissioner of children, youth, and families may access data maintained by 
462.5 	the commissioners of education, health, human services, and public safety related to the 
462.6 	responsibilities transferred under section 29; and
462.7 	(2) the commissioners of education, health, human services, and public safety may access 
462.8 	data maintained by the commissioner of children, youth, and families related to each 
462.9 	department's respective responsibilities transferred under section 29.
462.10 	(b) Data sharing authorized by this section includes only the data necessary to coordinate 
462.11 	department activities and services transferred under section 29.
462.12 	(c) Any data shared under this section retain their classification from the agency holding 
462.13 	the data.
462.14 	(d) Existing limitations and legal requirements under Minnesota Statutes, chapter 13, 
462.15 	including but not limited to any applicable data subject consent requirements, apply to any 
462.16 	data accessed, transferred, disseminated, or shared under this section.
462.17 	(e) This section expires July 1, 2027.

462.18 	Sec. 29. TRANSFERS FROM OTHER AGENCIES.
 462.19 		Subdivision 1.General. (a) Between July 1, 2024, and July 1, 2025, the Departments 
462.20 	of Human Services, Education, Health, and Public Safety must transition all of the 
462.21 	responsibilities held by these departments and described in this section to the Department 
462.22 	of Children, Youth, and Families.
462.23 	(b) Notwithstanding paragraph (a), any programs identified in paragraph (a) that require 
462.24 	federal approval to move to the Department of Children, Youth, and Families must be 
462.25 	transferred on or after July 1, 2024, and upon the federal government granting transfer 
462.26 	authority to the commissioner of children, youth, and families.
462.27 	(c) The commissioner of children, youth, and families must report an effective date of 
462.28 	the transfer of each responsibility identified in this section to the commissioners of 
462.29 	administration, management and budget, and other relevant departments along with the 
462.30 	secretary of the senate, the chief clerk of the house of representatives, and the chairs and 
462.31 	ranking minority members of relevant legislative committees and divisions. The reported 
463.1 	date is the effective date of transfer of responsibilities under Minnesota Statutes, section 
463.2 	15.039.
463.3 	(d) The requirement in Minnesota Statutes, section 16B.37, subdivision 1, that a state 
463.4 	agency must have been in existence for at least one year before being eligible for receiving 
463.5 	a transfer of personnel, powers, or duties does not apply to the Department of Children, 
463.6 	Youth, and Families.
463.7 	(e) Notwithstanding Minnesota Statutes, section 15.039, subdivision 6, for the transfer 
463.8 	of responsibilities conducted under this chapter, the unexpended balance of any appropriation 
463.9 	to an agency for the purposes of any responsibilities that are transferred to the Department 
463.10 	of Children, Youth, and Families, along with the operational functions to support the 
463.11 	responsibilities transferred, including administrative, legal, information technology, and 
463.12 	personnel support, and a proportional share of base funding, are reappropriated under the 
463.13 	same conditions as the original appropriation to the Department of Children, Youth, and 
463.14 	Families effective on the date of the transfer of responsibilities and related elements. The 
463.15 	commissioner of management and budget shall identify and allocate any unexpended 
463.16 	appropriations and base funding.
463.17 	(f) The commissioner of children, youth, and families or management and budget may 
463.18 	request an extension to transfer any responsibility listed in this section. The commissioner 
463.19 	of children, youth, and families or management and budget may request that the transfer of 
463.20 	any responsibility listed in this section be canceled if an effective date has not been reported 
463.21 	under paragraph (c). Any request under this paragraph must be made in writing to the 
463.22 	governor. Upon approval from the governor, the transfer may be delayed or canceled. Within 
463.23 	ten days after receiving the approval of the governor, the commissioner who requested the 
463.24 	transfer shall submit to the chairs and ranking minority members of relevant legislative 
463.25 	committees and divisions a notice of any extensions or cancellations granted under this 
463.26 	paragraph.
463.27 	(g) The commissioner of children, youth, and families must provide four successive 
463.28 	quarterly reports to relevant legislative committees on the status of transferring programs, 
463.29 	responsibilities, and personnel under this section. The first report must cover the quarter 
463.30 	starting July 1, 2024, and each report must be submitted by the 15th of the month following 
463.31 	the quarter end.
463.32 		Subd. 2.Department of Human Services. The powers and duties of the Department 
463.33 	of Human Services with respect to the following responsibilities and related elements are 
464.1 	transferred to the Department of Children, Youth, and Families according to Minnesota 
464.2 	Statutes, section 15.039:
464.3 	(1) family services and community-based collaboratives under Minnesota Statutes, 
464.4 	section 124D.23;
464.5 	(2) child care programs under Minnesota Statutes, chapter 119B;
464.6 	(3) the Parent Aware quality rating and improvement system under Minnesota Statutes, 
464.7 	section 124D.142;
464.8 	(4) migrant child care services under Minnesota Statutes, section 256M.50;
464.9 	(5) early childhood and school-age professional development training under Laws 2007, 
464.10 	chapter 147, article 2, section 56;
464.11 	(6) licensure of family child care and child care centers, child foster care, and private 
464.12 	child placing agencies under Minnesota Statutes, chapter 245A;
464.13 	(7) certification of license-exempt child care centers under Minnesota Statutes, chapter 
464.14 	245H;
464.15 	(8) program integrity and fraud related to the Child Care Assistance Program (CCAP), 
464.16 	the Minnesota Family Investment Program (MFIP), and the Supplemental Nutrition 
464.17 	Assistance Program (SNAP) under Minnesota Statutes, chapters 119B and 245E;
464.18 	(9) SNAP under Minnesota Statutes, sections 256D.60 to 256D.63;
464.19 	(10) electronic benefit transactions under Minnesota Statutes, sections 256.9862, 
464.20 	256.9863, 256.9865, 256.987, 256.9871, 256.9872, and 256J.77;
464.21 	(11) Minnesota food assistance program under Minnesota Statutes, section 256D.64;
464.22 	(12) Minnesota food shelf program under Minnesota Statutes, section 256E.34;
464.23 	(13) MFIP and Temporary Assistance for Needy Families (TANF) under Minnesota 
464.24 	Statutes, sections 256.9864 and 256.9865 and chapters 256J and 256P;
464.25 	(14) Diversionary Work Program (DWP) under Minnesota Statutes, section 256J.95;
464.26 	(15) resettlement programs under Minnesota Statutes, section 256B.06, subdivision 6;
464.27 	(16) child abuse under Minnesota Statutes, chapter 256E;
464.28 	(17) reporting of the maltreatment of minors under Minnesota Statutes, chapter 260E;
464.29 	(18) children in voluntary foster care for treatment under Minnesota Statutes, chapter 
464.30 	260D;
465.1 	(19) juvenile safety and placement under Minnesota Statutes, chapter 260C;
465.2 	(20) the Minnesota Indian Family Preservation Act under Minnesota Statutes, sections 
465.3 	260.751 to 260.835;
465.4 	(21) the Interstate Compact for Juveniles under Minnesota Statutes, section 260.515, 
465.5 	and the Interstate Compact on the Placement of Children under Minnesota Statutes, sections 
465.6 	260.851 to 260.93;
465.7 	(22) adoption under Minnesota Statutes, sections 259.20 to 259.89;
465.8 	(23) Northstar Care for Children under Minnesota Statutes, chapter 256N;
465.9 	(24) child support under Minnesota Statutes, chapters 13, 13B, 214, 256, 256J, 257, 259, 
465.10 	518, 518A, 518C, 551, 552, 571, and 588 and section 609.375;
465.11 	(25) community action programs under Minnesota Statutes, sections 256E.30 to 256E.32; 
465.12 	and
465.13 	(26) Family Assets for Independence in Minnesota under Minnesota Statutes, section 
465.14 	256E.35.
465.15 		Subd. 3.Department of Education. The powers and duties of the Department of 
465.16 	Education with respect to the following responsibilities and related elements are transferred 
465.17 	to the Department of Children, Youth, and Families according to Minnesota Statutes, section 
465.18 	15.039:
465.19 	(1) Head Start Program and Early Head Start under Minnesota Statutes, sections 119A.50 
465.20 	to 119A.545;
465.21 	(2) the early childhood screening program under Minnesota Statutes, sections 121A.16 
465.22 	to 121A.19;
465.23 	(3) early learning scholarships under Minnesota Statutes, section 124D.165;
465.24 	(4) the interagency early childhood intervention system under Minnesota Statutes, 
465.25 	sections 125A.259 to 125A.48;
465.26 	(5) voluntary prekindergarten programs and school readiness plus programs under 
465.27 	Minnesota Statutes, section 124D.151;
465.28 	(6) early childhood family education programs under Minnesota Statutes, sections 
465.29 	124D.13 to 124D.135;
465.30 	(7) school readiness under Minnesota Statutes, sections 124D.15 to 124D.16; and
466.1 	(8) after-school community learning programs under Minnesota Statutes, section 
466.2 	124D.2211.
466.3 		Subd. 4.Department of Public Safety. The powers and duties of the Department of 
466.4 	Public Safety with respect to the following responsibilities and related elements are 
466.5 	transferred to the Department of Children, Youth, and Families according to Minnesota 
466.6 	Statutes, section 15.039:
466.7 	(1) the juvenile justice program under Minnesota Statutes, section 299A.72; and
466.8 	(2) grants-in-aid to youth intervention programs under Minnesota Statutes, section 
466.9 	299A.73.

466.10 	EFFECTIVE DATE. This section is effective July 1, 2024.

466.11 	Sec. 30. TRANSITION REPORT TO THE LEGISLATURE.
 466.12 	By March 1, 2024, the commissioner of management and budget must report to the 
466.13 	legislature on the status of work related to establishing and setting up the Department of 
466.14 	Children, Youth, and Families. The report must address, at a minimum:
466.15 	(1) the completed, ongoing, and anticipated work related to the transfer of programs, 
466.16 	responsibilities, and personnel to the department;
466.17 	(2) the development of interagency agreements for services that will be shared across 
466.18 	agencies;
466.19 	(3) a description of efforts to secure needed federal approvals for the transfer of programs 
466.20 	and responsibilities;
466.21 	(4) engagement with leaders and staff of state agencies; Tribal governments; local service 
466.22 	providers, including but not limited to county agencies, Tribal organizations, and school 
466.23 	districts; families; and relevant stakeholders about the creation of the department and the 
466.24 	transfer of programs, responsibilities, and personnel to the department; and
466.25 	(5) plans and timelines related to the items referenced in clauses (1) to (4).

466.26 	Sec. 31. REVISOR INSTRUCTION.
 466.27 	The revisor of statutes must identify, in consultation with the commissioners of 
466.28 	management and budget; human services; education; health; and public safety and with 
466.29 	nonpartisan legislative offices, any changes to Minnesota Statutes and Minnesota Rules 
466.30 	necessary to facilitate the transfer of responsibilities under this act, the authority to fulfill 
466.31 	the responsibilities under this act, and the related operational functions needed to implement 
467.1 	the necessary legal changes and responsibilities under this act. By February 1, 2024, the 
467.2 	revisor of statutes must submit to the chairs and ranking minority members of relevant 
467.3 	legislative committees and divisions draft legislation with the statutory changes necessary 
467.4 	to implement this act.

467.5 	EFFECTIVE DATE. This section is effective July 1, 2023.

467.6 	Sec. 32. REPEALER.
 467.7 	Minnesota Statutes 2022, section 119B.03, subdivision 4, is repealed.

467.8 	EFFECTIVE DATE. This section is effective July 1, 2023.

467.9 	ARTICLE 13
467.10 	CHILD CARE WORKFORCE

467.11 	Section 1. Minnesota Statutes 2022, section 119B.011, subdivision 19a, is amended to 
467.12 	read:
467.13 		Subd. 19a.Registration. "Registration" means the process used by a county the 
467.14 	commissioner to determine whether the provider selected by a family applying for or 
467.15 	receiving child care assistance to care for that family's children meets the requirements 
467.16 	necessary for payment of child care assistance for care provided by that provider. The 
467.17 	commissioner shall create a process for statewide registration by April 28, 2025.

467.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

467.19 	Sec. 2. Minnesota Statutes 2022, section 119B.125, subdivision 1, is amended to read:
467.20 		Subdivision 1.Authorization. A county or The commissioner must authorize the provider 
467.21 	chosen by an applicant or a participant before the county can authorize payment for care 
467.22 	provided by that provider. The commissioner must establish the requirements necessary for 
467.23 	authorization of providers. A provider must be reauthorized every two years. A legal, 
467.24 	nonlicensed family child care provider also must be reauthorized when another person over 
467.25 	the age of 13 joins the household, a current household member turns 13, or there is reason 
467.26 	to believe that a household member has a factor that prevents authorization. The provider 
467.27 	is required to report all family changes that would require reauthorization. When a provider 
467.28 	has been authorized for payment for providing care for families in more than one county, 
467.29 	the county responsible for reauthorization of that provider is the county of the family with 
467.30 	a current authorization for that provider and who has used the provider for the longest length 
467.31 	of time.

468.1 	EFFECTIVE DATE. This section is effective April 28, 2025.

468.2 	Sec. 3. Minnesota Statutes 2022, section 119B.125, subdivision 1a, is amended to read:
468.3 		Subd. 1a.Background study required. (a) This subdivision only applies to legal, 
468.4 	nonlicensed family child care providers.
468.5 	(b) Prior to authorization, and as part of each reauthorization required in subdivision 1, 
468.6 	the county the commissioner shall perform a background study on every member of the 
468.7 	provider's household who is age 13 and older. The county shall also perform a background 
468.8 	study on an individual who has reached age ten but is not yet age 13 and is living in the 
468.9 	household where the nonlicensed child care will be provided when the county has reasonable 
468.10 	cause as defined under section 245C.02, subdivision 15 individuals identified under section 
468.11 	245C.02, subdivision 6a.
468.12 	(c) After authorization, a background study shall also be performed when an individual 
468.13 	identified under section 245C.02, subdivision 6a, joins the household. The provider must 
468.14 	report all family changes that would require a new background study.
468.15 	(d) At each reauthorization, the commissioner shall ensure that a background study 
468.16 	through NETStudy 2.0 has been performed on all individuals in the provider's household 
468.17 	for whom a background study is required under paragraphs (b) and (c).
468.18 	(e) Prior to a background study through NETStudy 2.0 expiring, another background 
468.19 	study shall be completed on all individuals for whom the background study is expiring.

468.20 	EFFECTIVE DATE. This section is effective April 28, 2025.

468.21 	Sec. 4. Minnesota Statutes 2022, section 119B.125, subdivision 1b, is amended to read:
468.22 		Subd. 1b.Training required. (a) Effective November 1, 2011, Prior to initial 
468.23 	authorization as required in subdivision 1, a legal nonlicensed family child care provider 
468.24 	must complete first aid and CPR training and provide the verification of first aid and CPR 
468.25 	training to the county commissioner. The training documentation must have valid effective 
468.26 	dates as of the date the registration request is submitted to the county commissioner. The 
468.27 	training must have been provided by an individual approved to provide first aid and CPR 
468.28 	instruction and have included CPR techniques for infants and children.
468.29 	(b) Legal nonlicensed family child care providers with an authorization effective before 
468.30 	November 1, 2011, must be notified of the requirements before October 1, 2011, or at 
468.31 	authorization, and must meet the requirements upon renewal of an authorization that occurs 
468.32 	on or after January 1, 2012.
469.1 	(c) (b) Upon each reauthorization after the authorization period when the initial first aid 
469.2 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
469.3 	provide verification of at least eight hours of additional training listed in the Minnesota 
469.4 	Center for Professional Development Registry.
469.5 	(d) (c) This subdivision only applies to legal nonlicensed family child care providers.

469.6 	EFFECTIVE DATE. This section is effective April 28, 2025.

469.7 	Sec. 5. Minnesota Statutes 2022, section 119B.125, subdivision 2, is amended to read:
469.8 		Subd. 2.Persons who cannot be authorized. (a) The provider seeking authorization 
469.9 	under this section shall collect the information required under section 245C.05, subdivision 
469.10 	1, and forward the information to the county agency commissioner. The background study 
469.11 	must include a review of the information required under section 245C.08, subdivisions 2,
469.12 	subdivision 3, and 4, paragraph (b).
469.13 	(b) A legal nonlicensed family child care provider is not authorized under this section 
469.14 	if:
469.15 	(1) the commissioner determines that any household member who is the subject of a 
469.16 	background study is determined to have a disqualifying characteristic under paragraphs (b) 
469.17 	to (e) or under section 245C.14 or 245C.15. If a county has determined that a provider is 
469.18 	able to be authorized in that county, and a family in another county later selects that provider, 
469.19 	the provider is able to be authorized in the second county without undergoing a new 
469.20 	background investigation unless one of the following conditions exists: disqualified from 
469.21 	direct contact with, or from access to, persons served by the program and that disqualification 
469.22 	has not been set aside or a variance has not been granted under chapter 245C;
469.23 	(1) two years have passed since the first authorization;
469.24 	(2) another person age 13 or older has joined the provider's household since the last 
469.25 	authorization;
469.26 	(3) a current household member has turned 13 since the last authorization; or
469.27 	(4) there is reason to believe that a household member has a factor that prevents 
469.28 	authorization.
469.29 	(b) (2) the person has refused to give written consent for disclosure of criminal history 
469.30 	records.;
469.31 	(c) (3) the person has been denied a family child care license or has received a fine or 
469.32 	a sanction as a licensed child care provider that has not been reversed on appeal.;
470.1 	(d) (4) the person has a family child care licensing disqualification that has not been set 
470.2 	aside.; or
470.3 	(e) (5) the person has admitted or a county has found that there is a preponderance of 
470.4 	evidence that fraudulent information was given to the county for child care assistance 
470.5 	application purposes or was used in submitting child care assistance bills for payment.

470.6 	EFFECTIVE DATE. This section is effective April 28, 2025.

470.7 	Sec. 6. Minnesota Statutes 2022, section 119B.125, subdivision 3, is amended to read:
470.8 		Subd. 3.Authorization exception. When a county the commissioner denies a person 
470.9 	authorization as a legal nonlicensed family child care provider under subdivision 2, the 
470.10 	county commissioner later may authorize that person as a provider if the following conditions 
470.11 	are met:
470.12 	(1) after receiving notice of the denial of the authorization, the person applies for and 
470.13 	obtains a valid child care license issued under chapter 245A, issued by a Tribe, or issued 
470.14 	by another state;
470.15 	(2) the person maintains the valid child care license; and
470.16 	(3) the person is providing child care in the state of licensure or in the area under the 
470.17 	jurisdiction of the licensing Tribe.

470.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

470.19 	Sec. 7. Minnesota Statutes 2022, section 119B.125, subdivision 4, is amended to read:
470.20 		Subd. 4.Unsafe care. A county The commissioner may deny authorization as a child 
470.21 	care provider to any applicant or rescind authorization of any provider when the a county 
470.22 	or commissioner knows or has reason to believe that the provider is unsafe or that the 
470.23 	circumstances of the chosen child care arrangement are unsafe. The county must include 
470.24 	the conditions under which a provider or care arrangement will be determined to be unsafe 
470.25 	in the county's child care fund plan under section 119B.08, subdivision 3 commissioner 
470.26 	shall introduce statewide criteria for unsafe care by April 28, 2025.

470.27 	EFFECTIVE DATE. This section is effective April 28, 2025.

470.28 	Sec. 8. Minnesota Statutes 2022, section 119B.125, subdivision 6, is amended to read:
470.29 		Subd. 6.Record-keeping requirement. (a) As a condition of payment, all providers 
470.30 	receiving child care assistance payments must:
471.1 	(1) keep accurate and legible daily attendance records at the site where services are 
471.2 	delivered for children receiving child care assistance; and
471.3 	(2) make those records available immediately to the county or the commissioner upon 
471.4 	request. Any records not provided to a county or the commissioner at the date and time of 
471.5 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
471.6 	to contest an overpayment or disqualification of the provider.
471.7 	(b) As a condition of payment, attendance records must be completed daily and include 
471.8 	the date, the first and last name of each child in attendance, and the times when each child 
471.9 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
471.10 	off to and picked up from the child care provider must be entered by the person dropping 
471.11 	off or picking up the child. The daily attendance records must be retained at the site where 
471.12 	services are delivered for six years after the date of service.
471.13 	(c) A county or the commissioner may deny or revoke a provider's authorization to 
471.14 	receive child care assistance payments under section 119B.13, subdivision 6, paragraph (d), 
471.15 	pursue a fraud disqualification under section 256.98, take an action against the provider 
471.16 	under chapter 245E, or establish an attendance record overpayment under paragraph (d) 
471.17 	against a current or former provider, When the county or the commissioner knows or has 
471.18 	reason to believe that the a current or former provider has not complied with the 
471.19 	record-keeping requirement in this subdivision.:
471.20 	(1) the commissioner may:
471.21 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
471.22 	under section 119B.13, subdivision 6, paragraph (d);
471.23 	(ii) pursue an administrative disqualification under sections 256.046, subdivision 3, and 
471.24 	256.98; or
471.25 	(iii) take an action against the provider under chapter 245E; or
471.26 	(2) a county or the commissioner may establish an attendance record overpayment under 
471.27 	paragraph (d).
471.28 	(d) To calculate an attendance record overpayment under this subdivision, the 
471.29 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
471.30 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
471.31 	incomplete, inaccurate, or otherwise inadequate.
471.32 	(e) The commissioner shall develop criteria for a county to determine an attendance 
471.33 	record overpayment under this subdivision.

472.1 	EFFECTIVE DATE. This section is effective April 28, 2025.

472.2 	Sec. 9. Minnesota Statutes 2022, section 119B.125, subdivision 7, is amended to read:
472.3 		Subd. 7.Failure to comply with attendance record requirements. (a) In establishing 
472.4 	an overpayment claim for failure to provide attendance records in compliance with 
472.5 	subdivision 6, the county or commissioner is limited to the six years prior to the date the 
472.6 	county or the commissioner requested the attendance records.
472.7 	(b) The commissioner or county may periodically audit child care providers to determine 
472.8 	compliance with subdivision 6.
472.9 	(c) When the commissioner or county establishes an overpayment claim against a current 
472.10 	or former provider, the commissioner or county must provide notice of the claim to the 
472.11 	provider. A notice of overpayment claim must specify the reason for the overpayment, the 
472.12 	authority for making the overpayment claim, the time period in which the overpayment 
472.13 	occurred, the amount of the overpayment, and the provider's right to appeal.
472.14 	(d) The commissioner or county shall seek to recoup or recover overpayments paid to 
472.15 	a current or former provider.
472.16 	(e) When a provider has been disqualified or convicted of fraud under section 256.98, 
472.17 	theft under section 609.52, or a federal crime relating to theft of state funds or fraudulent 
472.18 	billing for a program administered by the commissioner or a county, recoupment or recovery 
472.19 	must be sought regardless of the amount of overpayment.

472.20 	EFFECTIVE DATE. This section is effective April 28, 2025.

472.21 	Sec. 10. Minnesota Statutes 2022, section 119B.13, subdivision 6, is amended to read:
472.22 		Subd. 6.Provider payments. (a) A provider shall bill only for services documented 
472.23 	according to section 119B.125, subdivision 6. The provider shall bill for services provided 
472.24 	within ten days of the end of the service period. Payments under the child care fund shall 
472.25 	be made within 21 days of receiving a complete bill from the provider. Counties or the state 
472.26 	may establish policies that make payments on a more frequent basis.
472.27 	(b) If a provider has received an authorization of care and been issued a billing form for 
472.28 	an eligible family, the bill must be submitted within 60 days of the last date of service on 
472.29 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
472.30 	county determines that the provider has shown good cause why the bill was not submitted 
472.31 	within 60 days. Good cause must be defined in the county's child care fund plan under 
472.32 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
473.1 	Any bill submitted more than a year after the last date of service on the bill must not be 
473.2 	paid.
473.3 	(c) If a provider provided care for a time period without receiving an authorization of 
473.4 	care and a billing form for an eligible family, payment of child care assistance may only be 
473.5 	made retroactively for a maximum of three months from the date the provider is issued an 
473.6 	authorization of care and a billing form. For a family at application, if a provider provided 
473.7 	child care during a time period without receiving an authorization of care and a billing form, 
473.8 	a county may only make child care assistance payments to the provider retroactively from 
473.9 	the date that child care began, or from the date that the family's eligibility began under 
473.10 	section 119B.09, subdivision 7, or from the date that the family meets authorization 
473.11 	requirements, not to exceed six months from the date that the provider is issued an 
473.12 	authorization of care and a billing form, whichever is later.
473.13 	(d) A county or The commissioner may refuse to issue a child care authorization to a 
473.14 	certified, licensed, or legal nonlicensed provider, revoke an existing child care authorization 
473.15 	to a certified, licensed, or legal nonlicensed provider, stop payment issued to a certified, 
473.16 	licensed, or legal nonlicensed provider, or refuse to pay a bill submitted by a certified, 
473.17 	licensed, or legal nonlicensed provider if:
473.18 	(1) the provider admits to intentionally giving the county materially false information 
473.19 	on the provider's billing forms;
473.20 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
473.21 	provider intentionally gave the county materially false information on the provider's billing 
473.22 	forms, or provided false attendance records to a county or the commissioner;
473.23 	(3) the provider is in violation of child care assistance program rules, until the agency 
473.24 	determines those violations have been corrected;
473.25 	(4) the provider is operating after:
473.26 	(i) an order of suspension of the provider's license issued by the commissioner;
473.27 	(ii) an order of revocation of the provider's license issued by the commissioner; or
473.28 	(iii) an order of decertification issued to the provider;
473.29 	(5) the provider submits false attendance reports or refuses to provide documentation 
473.30 	of the child's attendance upon request;
473.31 	(6) the provider gives false child care price information; or
474.1 	(7) the provider fails to report decreases in a child's attendance as required under section 
474.2 	119B.125, subdivision 9.
474.3 	(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the county or the 
474.4 	commissioner may withhold the provider's authorization or payment for a period of time 
474.5 	not to exceed three months beyond the time the condition has been corrected.
474.6 	(f) A county's payment policies must be included in the county's child care plan under 
474.7 	section 119B.08, subdivision 3. If payments are made by the state, in addition to being in 
474.8 	compliance with this subdivision, the payments must be made in compliance with section 
474.9 	16A.124.
474.10 	(g) If the commissioner or responsible county agency suspends or refuses payment to a 
474.11 	provider under paragraph (d), clause (1) or (2), or chapter 245E and the provider has:
474.12 	(1) a disqualification for wrongfully obtaining assistance under section 256.98, 
474.13 	subdivision 8, paragraph (c);
474.14 	(2) an administrative disqualification under section 256.046, subdivision 3; or
474.15 	(3) a termination under section 245E.02, subdivision 4, paragraph (c), clause (4), or 
474.16 	245E.06;
474.17 	then the provider forfeits the payment to the commissioner or the responsible county agency, 
474.18 	regardless of the amount assessed in an overpayment, charged in a criminal complaint, or 
474.19 	ordered as criminal restitution.

474.20 	EFFECTIVE DATE. This section is effective April 28, 2025.

474.21 	Sec. 11. Minnesota Statutes 2022, section 119B.16, subdivision 1c, is amended to read:
474.22 		Subd. 1c.Notice to providers. (a) Before taking an action appealable under subdivision 
474.23 	1a, paragraph (b), a county agency or the commissioner must mail written notice to the 
474.24 	provider against whom the action is being taken. Unless otherwise specified under this 
474.25 	chapter, chapter 245E, or Minnesota Rules, chapter 3400, a county agency or the 
474.26 	commissioner must mail the written notice at least 15 calendar days before the adverse 
474.27 	action's effective date.
474.28 	(b) The notice shall state (1) the factual basis for the county agency or department's 
474.29 	determination, (2) the action the county agency or department intends to take, (3) the dollar 
474.30 	amount of the monetary recovery or recoupment, if known, and (4) the provider's right to 
474.31 	appeal the department's proposed action.

474.32 	EFFECTIVE DATE. This section is effective April 28, 2025.

475.1 	Sec. 12. Minnesota Statutes 2022, section 119B.16, subdivision 3, is amended to read:
475.2 		Subd. 3.Fair hearing stayed. (a) If a county agency or the commissioner denies or 
475.3 	revokes a provider's authorization based on a licensing action under section 245A.07, and 
475.4 	the provider appeals, the provider's fair hearing must be stayed until the commissioner issues 
475.5 	an order as required under section 245A.08, subdivision 5.
475.6 	(b) If the commissioner denies or revokes a provider's authorization based on 
475.7 	decertification under section 245H.07, and the provider appeals, the provider's fair hearing 
475.8 	must be stayed until the commissioner issues a final order as required under section 245H.07.

475.9 	EFFECTIVE DATE. This section is effective April 28, 2025.

475.10 	Sec. 13. Minnesota Statutes 2022, section 119B.161, subdivision 2, is amended to read:
475.11 		Subd. 2.Notice. (a) A county agency or The commissioner must mail written notice to 
475.12 	a provider within five days of suspending payment or denying or revoking the provider's 
475.13 	authorization under subdivision 1.
475.14 	(b) The notice must:
475.15 	(1) state the provision under which a county agency or the commissioner is denying, 
475.16 	revoking, or suspending the provider's authorization or suspending payment to the provider;
475.17 	(2) set forth the general allegations leading to the denial, revocation, or suspension of 
475.18 	the provider's authorization. The notice need not disclose any specific information concerning 
475.19 	an ongoing investigation;
475.20 	(3) state that the denial, revocation, or suspension of the provider's authorization is for 
475.21 	a temporary period and explain the circumstances under which the action expires; and
475.22 	(4) inform the provider of the right to submit written evidence and argument for 
475.23 	consideration by the commissioner.
475.24 	(c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the 
475.25 	commissioner suspends payment to a provider under chapter 245E or denies or revokes a 
475.26 	provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or 
475.27 	(2), a county agency or the commissioner must send notice of service authorization closure 
475.28 	to each affected family. The notice sent to an affected family is effective on the date the 
475.29 	notice is created.

475.30 	EFFECTIVE DATE. This section is effective April 28, 2025.

476.1 	Sec. 14. Minnesota Statutes 2022, section 119B.161, subdivision 3, is amended to read:
476.2 		Subd. 3.Duration. If a provider's payment is suspended under chapter 245E or a 
476.3 	provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph 
476.4 	(d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment 
476.5 	suspension remains in effect until:
476.6 	(1) the commissioner or a law enforcement authority determines that there is insufficient 
476.7 	evidence warranting the action and a county agency or the commissioner does not pursue 
476.8 	an additional administrative remedy under chapter 245E or section 256.98; or
476.9 	(2) all criminal, civil, and administrative proceedings related to the provider's alleged 
476.10 	misconduct conclude and any appeal rights are exhausted.

476.11 	EFFECTIVE DATE. This section is effective April 28, 2025.

476.12 	Sec. 15. Minnesota Statutes 2022, section 119B.19, subdivision 7, is amended to read:
476.13 		Subd. 7.Child care resource and referral programs. Within each region, a child care 
476.14 	resource and referral program must:
476.15 	(1) maintain one database of all existing child care resources and services and one 
476.16 	database of family referrals;
476.17 	(2) provide a child care referral service for families;
476.18 	(3) develop resources to meet the child care service needs of families;
476.19 	(4) increase the capacity to provide culturally responsive child care services;
476.20 	(5) coordinate professional development opportunities for child care and school-age 
476.21 	care providers;
476.22 	(6) administer and award child care services grants;
476.23 	(7) cooperate with the Minnesota Child Care Resource and Referral Network and its 
476.24 	member programs to develop effective child care services and child care resources; and
476.25 	(8) assist in fostering coordination, collaboration, and planning among child care programs 
476.26 	and community programs such as school readiness, Head Start, early childhood family 
476.27 	education, local interagency early intervention committees, early childhood screening, 
476.28 	special education services, and other early childhood care and education services and 
476.29 	programs that provide flexible, family-focused services to families with young children to 
476.30 	the extent possible.;
477.1 	(9) administer the child care one-stop regional assistance network to assist child care 
477.2 	providers and individuals interested in becoming child care providers with establishing and 
477.3 	sustaining a licensed family child care or group family child care program or a child care 
477.4 	center; and
477.5 	(10) provide supports that enable economically challenged individuals to obtain the jobs 
477.6 	skills training, career counseling, and job placement assistance necessary to begin a career 
477.7 	path in child care.

477.8 	Sec. 16. [119B.252] EARLY CHILDHOOD REGISTERED APPRENTICESHIP 
477.9 	GRANT PROGRAM.
477.10 		Subdivision 1.Establishment. The commissioner of human services shall, in coordination 
477.11 	with the commissioner of labor and industry, establish an apprenticeship grant program to 
477.12 	provide employment-based training and mentoring opportunities for early childhood workers.
477.13 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
477.14 	meanings given.
477.15 	(b) "Apprentice" means an employee participating in an early childhood registered 
477.16 	apprenticeship program.
477.17 	(c) "Early childhood registered apprenticeship program" means an organization registered 
477.18 	with the Department of Labor and Industry under chapter 178, registered with the Office 
477.19 	of Apprenticeship within the United States Department of Labor, or registered with a 
477.20 	recognized state apprenticeship agency under Code of Federal Regulations, title 29, parts 
477.21 	29 and 30, and who is:
477.22 	(1) a licensed child care center under Minnesota Rules, chapter 9503;
477.23 	(2) a licensed family and group family child care provider under Minnesota Rules, 
477.24 	chapter 9502;
477.25 	(3) a public prekindergarten program under section 124D.13, 124D.135, 124D.15 to 
477.26 	124D.16, 125A.01 to 125A.05, or 125A.26 to 125A.48, or Laws 2017, First Special Session 
477.27 	chapter 5, article 8, section 9;
477.28 	(4) a Head Start program under sections 119A.50 to 119A.54; or
477.29 	(5) a certified, license-exempt child care center under chapter 245H.
477.30 	(d) "Mentor" means an early childhood registered apprenticeship program journeyworker 
477.31 	under section 178.011, subdivision 9, and who has a career lattice step of nine or higher.
478.1 		Subd. 3.Program components. The organization holding the TEACH license with the 
478.2 	Department of Human Services shall distribute the grant and must use the grant for:
478.3 	(1) tuition scholarships for apprentices for courses leading to a higher education degree 
478.4 	in early childhood;
478.5 	(2) stipends for mentors; or
478.6 	(3) stipends for early childhood registered apprenticeship programs.
478.7 		Subd. 4.Grants to apprentices. An apprentice may receive a higher education 
478.8 	scholarship of up to $10,000 for up to 24 months under this section, provided the apprentice:
478.9 	(1) enrolls in an early childhood registered apprenticeship program;
478.10 	(2) is a current participant in good standing in the TEACH scholarship program under 
478.11 	section 119B.251;
478.12 	(3) participates in monthly meetings with a mentor;
478.13 	(4) works toward meeting early childhood competencies identified in Minnesota's 
478.14 	Knowledge and Competency Framework for early childhood professionals, as observed by 
478.15 	a mentor; and
478.16 	(5) works toward the attainment of a higher education degree in early childhood.
478.17 		Subd. 5.Allowable uses. Grant recipients may use grant money for personal expenses.
478.18 		Subd. 6.Stipends for mentors. A mentor shall receive up to $4,000 for each apprentice 
478.19 	mentored under this section, provided the mentor complies with the requirements in the 
478.20 	apprenticeship program standard and completes eight weeks of mentor training and additional 
478.21 	training on observation. The training must be free of charge to mentors.
478.22 		Subd. 7.Stipends for early childhood registered apprenticeship programs. (a) An 
478.23 	early childhood registered apprenticeship program shall receive up to $5,000 for the first 
478.24 	apprentice and up to $2,500 for each additional apprentice employed under this section, 
478.25 	provided the early childhood registered apprenticeship program complies with the 
478.26 	requirements in the apprenticeship program standard and the following requirements:
478.27 	(1) sponsor each apprentice's TEACH scholarship under section 119B.251; and
478.28 	(2) provide each apprentice at least three hours a week of paid release time for 
478.29 	coursework.
478.30 	(b) An early childhood program may not host more than three apprentices at one site in 
478.31 	a 12-month period.

479.1 	Sec. 17. [119B.27] CHILD CARE RETENTION PROGRAM.
479.2 		Subdivision 1.Establishment. A child care retention program is established to provide 
479.3 	eligible child care programs with payments to improve access to child care in Minnesota 
479.4 	and to strengthen the ability of child care programs to recruit and retain qualified early 
479.5 	educators to work in child care programs. The child care retention program shall be 
479.6 	administered by the commissioner of human services.
479.7 		Subd. 2.Eligible programs. (a) The following programs are eligible to receive child 
479.8 	care retention payments under this section:
479.9 	(1) family and group family child care homes licensed under Minnesota Rules, chapter 
479.10 	9502;
479.11 	(2) child care centers licensed under Minnesota Rules, chapter 9503;
479.12 	(3) certified license-exempt child care centers under chapter 245H;
479.13 	(4) Tribally licensed child care programs; and
479.14 	(5) other programs as determined by the commissioner.
479.15 	(b) To be eligible, programs must not be:
479.16 	(1) the subject of a finding of fraud for which the program or individual is currently 
479.17 	serving a penalty or exclusion;
479.18 	(2) the subject of suspended, denied, or terminated payments to a provider under section 
479.19 	256.98, subdivision 1; 119B.13, subdivision 6, paragraph (d), clauses (1) and (2); or 245E.02, 
479.20 	subdivision 4, paragraph (c), clause (4), regardless of whether the action is under appeal;
479.21 	(3) prohibited from receiving public funds under section 245.095, regardless of whether 
479.22 	the action is under appeal; or
479.23 	(4) under license revocation, suspension, temporary immediate suspension, or 
479.24 	decertification, regardless of whether the action is under appeal.
479.25 		Subd. 3.Requirements. (a) As a condition of payment, all providers receiving retention 
479.26 	payments under this section must:
479.27 	(1) complete an application developed by the commissioner for each payment period 
479.28 	for which the eligible program applies for funding;
479.29 	(2) attest and agree in writing that the program was open and operating and served a 
479.30 	minimum number of children, as determined by the commissioner, during the funding 
479.31 	period, with the exceptions of:
480.1 	(i) service disruptions that are necessary to protect the safety and health of children and 
480.2 	child care programs based on public health guidance issued by the Centers for Disease 
480.3 	Control and Prevention, the commissioner of health, the commissioner of human services, 
480.4 	or a local public health agency; and
480.5 	(ii) planned temporary closures for provider vacation and holidays during each payment 
480.6 	period. The maximum allowed duration of vacations and holidays must be established by 
480.7 	the commissioner; and
480.8 	(3) submit data on child enrollment and attendance to the commissioner in the form and 
480.9 	manner prescribed by the commissioner.
480.10 	(b) Money received under this section must be expended by a provider no later than six 
480.11 	months after the date the payment was received.
480.12 	(c) Recipients must comply with all requirements listed in the application under this 
480.13 	section. Methods for demonstrating that requirements have been met shall be determined 
480.14 	by the commissioner.
480.15 	(d) Recipients must keep accurate and legible records of the following at the site where 
480.16 	services are delivered:
480.17 	(1) use of money;
480.18 	(2) attendance records. Daily attendance records must be completed every day and 
480.19 	include the date, the first and last name of each child in attendance, and the times when 
480.20 	each child is dropped off and picked up. To the extent possible, the times that the child was 
480.21 	dropped off and picked up from the child care provider must be entered by the person 
480.22 	dropping off or picking up the child; and
480.23 	(3) staff employment, compensation, and benefits records. Employment, compensation, 
480.24 	and benefits records must include time sheets or other records of daily hours worked; 
480.25 	documentation of compensation and benefits; documentation of written changes to employees' 
480.26 	rate or rates of pay and basis thereof as a result of retention payments, as required under 
480.27 	section 181.032, paragraphs (d) to (f); and any other records required to be maintained under 
480.28 	section 177.30.
480.29 	(e) The requirement to document compensation and benefits only applies to family child 
480.30 	care providers if retention payment money is used for employee compensation and benefits.
480.31 	(f) All records must be retained at the site where services are delivered for six years after 
480.32 	the date of receipt of payment and be made immediately available to the commissioner upon 
480.33 	request. Any records not provided to the commissioner at the date and time of the request 
481.1 	are deemed inadmissible if offered as evidence by a provider in any proceeding to contest 
481.2 	an overpayment or disqualification of the provider.
481.3 	(g) Recipients that fail to meet the requirements under this section are subject to 
481.4 	discontinuation of future installment payments, recovery of overpayments, and actions under 
481.5 	chapter 245E. Except when based on a finding of fraud, actions to establish an overpayment 
481.6 	must be made within six years of receipt of the payments. Once an overpayment is 
481.7 	established, collection may continue until money has been repaid in full. The appeal process 
481.8 	under section 119B.16 applies to actions taken for failure to meet the requirements of this 
481.9 	section.
481.10 		Subd. 4.Providing payments. (a) The commissioner shall provide retention payments 
481.11 	under this section to all eligible programs on a noncompetitive basis.
481.12 	(b) The commissioner shall award retention payments to all eligible programs. The 
481.13 	payment amounts shall be based on the number of full-time equivalent staff who regularly 
481.14 	care for children in the program, including any employees, sole proprietors, or independent 
481.15 	contractors.
481.16 	(c) One full-time equivalent is defined as an individual caring for children 32 hours per 
481.17 	week. An individual can count as more or less than one full-time equivalent staff, but as no 
481.18 	more than two full-time equivalent staff.
481.19 	(d) The amount awarded per full-time equivalent individual caring for children for each 
481.20 	payment type must be established by the commissioner.
481.21 	(e) Payments must be increased by ten percent for providers receiving payments through 
481.22 	the child care assistance programs under section 119B.03 or 119B.05 or early learning 
481.23 	scholarships under section 124D.165 or whose program is located in a child care access 
481.24 	equity area. Child care access equity areas are areas with low access to child care, high 
481.25 	poverty rates, high unemployment rates, low home ownership rates, and low median 
481.26 	household incomes. The commissioner must develop a method for establishing child care 
481.27 	access equity areas.
481.28 	(f) The commissioner shall make payments to eligible programs under this section in 
481.29 	the form, frequency, and manner established by the commissioner.
481.30 		Subd. 5.Eligible uses of money. (a) Recipients that are child care centers licensed under 
481.31 	Minnesota Rules, chapter 9503; certified license-exempt child care centers under chapter 
481.32 	245H; or Tribally licensed child care centers must use money provided under this section 
481.33 	to pay for increases in compensation, benefits, premium pay, or additional federal taxes 
482.1 	assessed on the compensation of employees as a result of paying increased compensation 
482.2 	or premium pay to all paid employees or independent contractors regularly caring for 
482.3 	children. The increases in this paragraph must occur no less frequently than once per year.
482.4 	(b) Recipients that are family and group family child care homes licensed under 
482.5 	Minnesota Rules, chapter 9502, or are Tribally licensed family child care homes shall use 
482.6 	money provided under this section for one or more of the following uses:
482.7 	(1) paying personnel costs, such as payroll, salaries, or similar compensation; employee 
482.8 	benefits; premium pay; or financial incentives for recruitment and retention for an employee, 
482.9 	a sole proprietor, or an independent contractor;
482.10 	(2) paying rent, including rent under a lease agreement, or making payments on any 
482.11 	mortgage obligation, utilities, facility maintenance or improvements, property taxes, or 
482.12 	insurance;
482.13 	(3) purchasing or updating equipment, supplies, goods, or services;
482.14 	(4) providing mental health supports for children; or
482.15 	(5) purchasing training or other professional development.
482.16 		Subd. 6.Legal nonlicensed child care provider payments. (a) Legal nonlicensed child 
482.17 	care providers, as defined in section 119B.011, subdivision 16, may be eligible to apply for 
482.18 	a payment of up to $500 for costs incurred before the first month when payments from the 
482.19 	child care assistance program are issued.
482.20 	(b) Payments must be used on one or more of the following eligible activities to meet 
482.21 	child care assistance program requirements under sections 119B.03 and 119B.05:
482.22 	(1) purchasing or updating equipment, supplies, goods, or services; or
482.23 	(2) purchasing training or other professional development.
482.24 	(c) The commissioner shall determine the form and manner of the application for a 
482.25 	payment under this subdivision.
482.26 		Subd. 7.Carryforward authority. Money appropriated under this section are available 
482.27 	until expended.
482.28 		Subd. 8.Report. By January 1 each year, the commissioner must report to the chairs 
482.29 	and ranking minority members of the legislative committees with jurisdiction over child 
482.30 	care the number of payments provided to recipients and outcomes of the retention payment 
482.31 	program since the last report. This subdivision expires January 31, 2033.

483.1 	Sec. 18. [119B.28] SHARED SERVICES GRANTS.
483.2 	(a) The commissioner of human services shall establish a grant program to distribute 
483.3 	money for the planning, establishment, expansion, improvement, or operation of shared 
483.4 	services alliances to allow family child care providers to achieve economies of scale. The 
483.5 	commissioner must develop a process to fund organizations to operate shared services 
483.6 	alliances that includes application forms, timelines, and standards for renewal. For purposes 
483.7 	of this section, "shared services alliances" means networks of licensed family child care 
483.8 	providers that share services to reduce costs and achieve efficiencies.
483.9 	(b) Programs eligible to be a part of the shared services alliances supported through this 
483.10 	grant program include:
483.11 	(1) family child care or group family child care homes licensed under Minnesota Rules, 
483.12 	chapter 9502;
483.13 	(2) Tribally licensed family child care or group family child care; and
483.14 	(3) individuals in the process of starting a family child care or group family child care 
483.15 	home.
483.16 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
483.17 	organizations.
483.18 	(d) Grantees shall use the grant money to deliver one or more of the following services:
483.19 	(1) pooling the management of payroll and benefits, banking, janitorial services, food 
483.20 	services, and other operations;
483.21 	(2) shared administrative staff for tasks such as record keeping and reporting for programs 
483.22 	such as the child care assistance program, Head Start, the child and adult care food program, 
483.23 	and early learning scholarships;
483.24 	(3) coordination of bulk purchasing;
483.25 	(4) management of a substitute pool;
483.26 	(5) support for implementing shared curriculum and assessments;
483.27 	(6) mentoring child care provider participants to improve business practices;
483.28 	(7) provision of and training in child care management software to simplify processes 
483.29 	such as enrollment, billing, and tracking expenditures;
483.30 	(8) support for a group of providers sharing one or more physical spaces within a larger 
483.31 	building; or
484.1 	(9) other services as determined by the commissioner.
484.2 	(e) The commissioner must consult with the commissioner of management and budget 
484.3 	on program outcomes, evaluation metrics, and progress indicators for the grant program 
484.4 	under this section. The commissioner must only implement program outcomes, evaluation 
484.5 	metrics, and progress indicators that are determined through and agreed upon during the 
484.6 	consultation with the commissioner of management and budget. The commissioner shall 
484.7 	not implement the grant program under this section until the consultation with the 
484.8 	commissioner of management and budget is completed. The commissioner must incorporate 
484.9 	agreed upon program outcomes, evaluation metrics, and progress indicators into grant 
484.10 	applications, requests for proposals, and any reports to the legislature.

484.11 	EFFECTIVE DATE. This section is effective July 1, 2023.

484.12 	Sec. 19. [119B.29] CHILD CARE PROVIDER ACCESS TO TECHNOLOGY 
484.13 	GRANTS.
484.14 	(a) The commissioner of human services shall distribute money provided by this section 
484.15 	through grants to one or more organizations to offer grants or other supports to child care 
484.16 	providers for technology intended to improve the providers' business practices. The 
484.17 	commissioner must develop a process to fund organizations to provide technology supports 
484.18 	that includes application forms, timelines, reporting requirements, and standards for renewal.
484.19 	(b) Programs eligible to be supported through this grant program include:
484.20 	(1) child care centers licensed under Minnesota Rules, chapter 9503;
484.21 	(2) family or group family child care homes licensed under Minnesota Rules, chapter 
484.22 	9502; and
484.23 	(3) Tribally licensed centers, family child care, and group family child care.
484.24 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
484.25 	organizations with the ability to develop technology products for child care business 
484.26 	management or offer training, technical assistance, coaching, or other supports for child 
484.27 	care providers to use technology products for child care business management.
484.28 	(d) Grantees shall use the grant money, either directly or through grants to providers, 
484.29 	for one or more of the following purposes:
484.30 	(1) the purchase of computers or mobile devices for use in business management;
484.31 	(2) access to the Internet through the provision of necessary hardware such as routers 
484.32 	or modems or by covering the costs of monthly fees for Internet access;
485.1 	(3) covering the costs of subscription to child care management software;
485.2 	(4) covering the costs of training in the use of technology for business management 
485.3 	purposes; and
485.4 	(5) other services as determined by the commissioner.

485.5 	Sec. 20. Minnesota Statutes 2022, section 256.046, subdivision 3, is amended to read:
485.6 		Subd. 3.Administrative disqualification of child care providers caring for children 
485.7 	receiving child care assistance. (a) The department or local agency shall pursue an 
485.8 	administrative disqualification, if the child care provider is accused of committing an 
485.9 	intentional program violation, in lieu of a criminal action when it has not been pursued. 
485.10 	Intentional program violations include intentionally making false or misleading statements; 
485.11 	intentionally misrepresenting, concealing, or withholding facts; and repeatedly and 
485.12 	intentionally violating program regulations under chapters 119B and 245E. Intent may be 
485.13 	proven by demonstrating a pattern of conduct that violates program rules under chapters 
485.14 	119B and 245E.
485.15 	(b) To initiate an administrative disqualification, a local agency or the commissioner 
485.16 	must mail written notice by certified mail to the provider against whom the action is being 
485.17 	taken. Unless otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 
485.18 	3400, a local agency or the commissioner must mail the written notice at least 15 calendar 
485.19 	days before the adverse action's effective date. The notice shall state (1) the factual basis 
485.20 	for the agency's determination, (2) the action the agency intends to take, (3) the dollar amount 
485.21 	of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal 
485.22 	the agency's proposed action.
485.23 	(c) The provider may appeal an administrative disqualification by submitting a written 
485.24 	request to the Department of Human Services, Appeals Division. A provider's request must 
485.25 	be received by the Appeals Division no later than 30 days after the date a local agency or
485.26 	the commissioner mails the notice.
485.27 	(d) The provider's appeal request must contain the following:
485.28 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
485.29 	dollar amount involved for each disputed item;
485.30 	(2) the computation the provider believes to be correct, if applicable;
485.31 	(3) the statute or rule relied on for each disputed item; and
486.1 	(4) the name, address, and telephone number of the person at the provider's place of 
486.2 	business with whom contact may be made regarding the appeal.
486.3 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
486.4 	preponderance of the evidence that the provider committed an intentional program violation.
486.5 	(f) The hearing is subject to the requirements of sections 256.045 and 256.0451. The 
486.6 	human services judge may combine a fair hearing and administrative disqualification hearing 
486.7 	into a single hearing if the factual issues arise out of the same or related circumstances and 
486.8 	the provider receives prior notice that the hearings will be combined.
486.9 	(g) A provider found to have committed an intentional program violation and is 
486.10 	administratively disqualified shall be disqualified, for a period of three years for the first 
486.11 	offense and permanently for any subsequent offense, from receiving any payments from 
486.12 	any child care program under chapter 119B.
486.13 	(h) Unless a timely and proper appeal made under this section is received by the 
486.14 	department, the administrative determination of the department is final and binding.

486.15 	EFFECTIVE DATE. This section is effective April 28, 2025.

486.16 	Sec. 21. Minnesota Statutes 2022, section 256.983, subdivision 5, is amended to read:
486.17 		Subd. 5.Child care providers; financial misconduct. (a) A county or Tribal agency 
486.18 	may conduct investigations of financial misconduct by child care providers as described in 
486.19 	chapter 245E. Prior to opening an investigation, a county or Tribal agency must contact the 
486.20 	commissioner to determine whether an investigation under this chapter may compromise 
486.21 	an ongoing investigation.
486.22 	(b) If, upon investigation, a preponderance of evidence shows a provider committed an 
486.23 	intentional program violation, intentionally gave the county or Tribe materially false 
486.24 	information on the provider's billing forms, provided false attendance records to a county, 
486.25 	Tribe, or the commissioner, or committed financial misconduct as described in section 
486.26 	245E.01, subdivision 8, the county or Tribal agency may recommend that the commissioner 
486.27 	suspend a provider's payment pursuant to chapter 245E, or deny or revoke a provider's 
486.28 	authorization pursuant to section 119B.13, subdivision 6, paragraph (d), clause (2), prior to 
486.29 	pursuing other available remedies. The county or tribe must send notice in accordance with 
486.30 	the requirements of section 119B.161, subdivision 2. If a provider's payment is suspended 
486.31 	under this section, the payment suspension shall remain in effect until: (1) the commissioner, 
486.32 	county, tribe, or a law enforcement authority determines that there is insufficient evidence 
486.33 	warranting the action and a county, tribe, or the commissioner does not pursue an additional 
487.1 	administrative remedy under chapter 119B or 245E, or section 256.046 or 256.98; or (2) 
487.2 	all criminal, civil, and administrative proceedings related to the provider's alleged misconduct 
487.3 	conclude and any appeal rights are exhausted.
487.4 	(c) For the purposes of this section, an intentional program violation includes intentionally 
487.5 	making false or misleading statements; intentionally misrepresenting, concealing, or 
487.6 	withholding facts; and repeatedly and intentionally violating program regulations under 
487.7 	chapters 119B and 245E.
487.8 	(d) A provider has the right to administrative review under section 119B.161 if: (1) 
487.9 	payment is suspended under chapter 245E; or (2) the provider's authorization was denied 
487.10 	or revoked under section 119B.13, subdivision 6, paragraph (d), clause (2).

487.11 	EFFECTIVE DATE. This section is effective April 28, 2025.

487.12 	Sec. 22. DIRECTION TO COMMISSIONER; CHILD CARE AND EARLY 
487.13 	EDUCATION PROFESSIONAL WAGE SCALE.
 487.14 	(a) The commissioner of human services shall develop, in consultation with the 
487.15 	commissioner of employment and economic development, the commissioner of education, 
487.16 	the Children's Cabinet, and relevant stakeholders, a child care and early education 
487.17 	professional wage scale that:
487.18 	(1) provides recommended wages that are equivalent to elementary school educators 
487.19 	with similar credentials and experience;
487.20 	(2) provides recommended levels of compensation and benefits, such as professional 
487.21 	development stipends, health care benefits, and retirement benefits, that vary based on child 
487.22 	care and early education professional roles and qualifications, and other criteria established 
487.23 	by the commissioner; and
487.24 	(3) is applicable to the following types of child care and early education programs:
487.25 	(i) licensed family and group family child care under Minnesota Rules, chapter 9502;
487.26 	(ii) licensed child care centers under Minnesota Rules, chapter 9503;
487.27 	(iii) certified, license-exempt child care centers under Minnesota Statutes, chapter 245H;
487.28 	(iv) voluntary prekindergarten and school readiness plus programs;
487.29 	(v) school readiness programs;
487.30 	(vi) early childhood family education programs;
488.1 	(vii) programs for children who are eligible for Part B or Part C of the Individuals with 
488.2 	Disabilities Education Act (Public Law 108-446); and
488.3 	(viii) Head Start programs.
488.4 	(b) By January 30, 2025, the commissioner must submit a report to the legislative 
488.5 	committees with jurisdiction over early childhood programs on the development of the wage 
488.6 	scale, make recommendations for implementing a process for recognizing comparable 
488.7 	competencies, and make recommendations for how the wage scale could be used to inform 
488.8 	payment rates for child care assistance under Minnesota Statutes, chapter 119B, and great 
488.9 	start scholarships under Minnesota Statutes, section 119C.01.

488.10 	Sec. 23. DIRECTION TO COMMISSIONER; TRANSITION CHILD CARE 
488.11 	STABILIZATION GRANTS.
 488.12 	(a) The commissioner of human services must continue providing child care stabilization 
488.13 	grants under Laws 2021, First Special Session chapter 7, article 14, section 21, from July 
488.14 	1, 2023, through no later than December 31, 2023.
488.15 	(b) The commissioner shall award transition child care stabilization grant amounts to 
488.16 	all eligible programs. The transition month grant amounts must be based on the number of 
488.17 	full-time equivalent staff who regularly care for children in the program, including employees, 
488.18 	sole proprietors, or independent contractors. One full-time equivalent staff is defined as an 
488.19 	individual caring for children 32 hours per week. An individual can count as more, or less, 
488.20 	than one full-time equivalent staff, but as no more than two full-time equivalent staff.

488.21 	Sec. 24. RECOGNIZING COMPARABLE COMPETENCIES TO ACHIEVE 
488.22 	COMPARABLE COMPENSATION TASK FORCE.
 488.23 		Subdivision 1.Membership. (a) The Recognizing Comparable Competencies to Achieve 
488.24 	Comparable Compensation Task Force shall consist of the following 16 members, appointed 
488.25 	by the governor:
488.26 	(1) two individuals who are directors of a licensed child care center, one from greater 
488.27 	Minnesota and one from the seven-county metropolitan area;
488.28 	(2) two individuals who are license holders of family child care programs, one from 
488.29 	greater Minnesota and one from the seven-county metropolitan area;
488.30 	(3) four individuals who are early childhood educators, one who works in a licensed 
488.31 	child care center, one who works in a public-school-based early childhood program, one 
489.1 	who works in a Head Start program or a community education program, and one who works 
489.2 	in a licensed family child care setting;
489.3 	(4) one representative of a federally recognized Tribe who has expertise in the early care 
489.4 	and education system;
489.5 	(5) one representative from the Children's Cabinet;
489.6 	(6) two parents of children under five years of age, one parent whose child attends a 
489.7 	private early care and education program and one parent whose child attends a public 
489.8 	program. One parent under this clause must be from greater Minnesota, and the other parent 
489.9 	must be from the seven-county metropolitan area; and
489.10 	(7) four individuals who have expertise in early childhood workforce issues.
489.11 	(b) The governor must select a chair or cochairs for the task force from among the 
489.12 	members. The first task force meeting must be convened by the chair or cochairs and held 
489.13 	no later than September 1, 2023. Thereafter, the chair or cochairs shall convene the task 
489.14 	force at least monthly and may convene other meetings as necessary. The chair or cochairs 
489.15 	shall convene meetings in a manner to allow for access from diverse geographic locations 
489.16 	in Minnesota.
489.17 	(c) Compensation of task force members, filling of task force vacancies, and removal 
489.18 	of task force members are governed by Minnesota Statutes, section 15.059.
489.19 		Subd. 2.Duties. (a) The task force must develop a compensation framework for the 
489.20 	early childhood workforce that incorporates competencies and experiences, as well as 
489.21 	educational attainment.
489.22 	(b) In developing the compensation framework required under this subdivision, the task 
489.23 	force must:
489.24 	(1) identify competencies and experiences to incorporate into the framework, including 
489.25 	but not limited to multilingualism and previous work experience in a direct care setting; 
489.26 	and
489.27 	(2) propose mechanisms for including the compensation framework in the state's early 
489.28 	childhood programs and services.
489.29 		Subd. 3.Administration. (a) The commissioner of management and budget shall provide 
489.30 	staff and administrative services for the task force.
489.31 	(b) The task force expires upon submission of the final report required under subdivision 
489.32 	5, or January 30, 2025, whichever is earlier.
490.1 	(c) The task force is subject to Minnesota Statutes, chapter 13D.
490.2 		Subd. 4.Required reports. By December 1, 2024, the task force must submit its 
490.3 	preliminary findings to the governor and the chairs and ranking minority members of the 
490.4 	legislative committees with jurisdiction over early childhood programs. By January 15, 
490.5 	2025, the task force must submit the compensation framework and proposed mechanisms 
490.6 	for incorporating the framework into the state's early childhood programs and services to 
490.7 	the governor and the chairs and ranking minority members of the legislative committees 
490.8 	with jurisdiction over early childhood programs.

490.9 	ARTICLE 14
490.10 	CHILD SUPPORT, SAFETY, AND PERMANENCY

490.11 	Section 1. [245.0962] QUALITY PARENTING INITIATIVE GRANT PROGRAM.
490.12 		Subdivision 1.Establishment. The commissioner of human services must establish a 
490.13 	quality parenting initiative grant program to implement quality parenting initiative principles 
490.14 	and practices to support children and families experiencing foster care placements.
490.15 		Subd. 2.Eligible applicants. To be eligible for a grant under this section, applicants 
490.16 	must be a nonprofit organization or a nongovernmental organization and must have 
490.17 	experience providing training and technical assistance on how to implement quality parenting 
490.18 	initiative principles and practices.
490.19 		Subd. 3.Application. An organization seeking a grant under this section must apply to 
490.20 	the commissioner in the time and manner specified by the commissioner.
490.21 		Subd. 4.Grant activities. Grant money must be used to provide training and technical 
490.22 	assistance to county and Tribal agencies, community-based agencies, and other stakeholders 
490.23 	on:
490.24 	(1) conducting initial foster care telephone calls under section 260C.219, subdivision 6;
490.25 	(2) supporting practices that create birth family to foster family partnerships; and
490.26 	(3) informing child welfare practices by supporting youth leadership and the participation 
490.27 	of individuals with experience in the foster care system.

490.28 	Sec. 2. Minnesota Statutes 2022, section 256N.26, subdivision 12, is amended to read:
490.29 		Subd. 12.Treatment of Supplemental Security Income. If a child placed in foster 
490.30 	care receives benefits through Supplemental Security Income (SSI) at the time of foster 
490.31 	care placement or subsequent to placement in foster care, the financially responsible agency 
491.1 	may apply to be the payee for the child for the duration of the child's placement in foster 
491.2 	care. If a child continues to be eligible for SSI Supplemental Security Income benefits after 
491.3 	finalization of the adoption or transfer of permanent legal and physical custody and is 
491.4 	determined to be eligible for a payment under Northstar Care for Children, a permanent 
491.5 	caregiver may choose to receive payment from both programs simultaneously. The permanent 
491.6 	caregiver is responsible to report the amount of the payment to the Social Security 
491.7 	Administration and the SSI Supplemental Security Income payment will be reduced as 
491.8 	required by the Social Security Administration.

491.9 	Sec. 3. [256N.262] FOSTER CHILDREN BENEFITS TRUST.
491.10 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
491.11 	the meanings given.
491.12 	(b) "Beneficiary" means a current or former child in foster care who is or was entitled 
491.13 	to cash benefits.
491.14 	(c) "Cash benefits" means all sources of income a child in foster care is entitled to, 
491.15 	including death benefits; survivor benefits; crime victim impact payments; federal cash 
491.16 	benefits from programs administered by the Social Security Administration, including from 
491.17 	the Supplemental Security Income and the Retirement, Survivors, Disability Insurance 
491.18 	programs; and any other eligible income as determined by the Office of the Foster Youth 
491.19 	Ombudsperson.
491.20 		Subd. 2.Establishment. (a) The foster children benefits trust is established. The trust 
491.21 	must be funded by appropriations to the Office of the Foster Youth Ombudsperson to 
491.22 	compensate beneficiaries for cash benefits taken by a financially responsible agency to pay 
491.23 	for the beneficiaries' care. The trust must be managed to ensure the stability and growth of 
491.24 	the trust.
491.25 	(b) All assets of the trust are held in trust for the exclusive benefit of beneficiaries. Assets 
491.26 	must be held in a separate account in the state treasury to be known as the foster children 
491.27 	benefits trust account or in accounts with the third-party provider selected pursuant to 
491.28 	subdivision 9.
491.29 		Subd. 3.Requirements of financially responsible agencies. (a) A financially responsible 
491.30 	agency must assess whether each child the agency is responsible for is eligible to receive 
491.31 	any cash benefits as soon as the custody of the child is transferred to a child placing agency 
491.32 	or responsible social services agency pursuant to section 260C.201, subdivision 1, or custody 
491.33 	of the child is otherwise transferred to the state.
492.1 	(b) If a child placed in foster care is eligible to receive cash benefits, the financially 
492.2 	responsible agency must:
492.3 	(1) apply to be the payee for the child for the duration of the child's placement in foster 
492.4 	care;
492.5 	(2) at least monthly, transfer all cash benefits received on behalf of a beneficiary to the 
492.6 	Office of the Foster Youth Ombudsperson to be deposited in the trust;
492.7 	(3) at least annually, notify the Office of the Foster Youth Ombudsperson of all cash 
492.8 	benefits received for each beneficiary along with documentation identifying the beneficiary 
492.9 	and amounts received for the child;
492.10 	(4) notify each beneficiary 18 years of age or older that the beneficiary may be entitled 
492.11 	to disbursements pursuant to the foster children benefits trust and inform the child how to 
492.12 	contact the Office of the Foster Youth Ombudsperson about the trust; and
492.13 	(5) retain all documentation related to cash benefits received for a beneficiary for at least 
492.14 	five years after the agency is no longer the beneficiary's financially responsible agency.
492.15 	(c) The financially responsible agency is liable to a beneficiary for any benefit payment 
492.16 	that the agency receives as payee for a beneficiary that is not included in the documentation 
492.17 	sent to the Office of the Foster Youth Ombudsperson as required by this subdivision.
492.18 		Subd. 4.Deposits. The Office of the Foster Youth Ombudsperson must deposit an 
492.19 	amount equal to the cash benefits received by a financially responsible agency in a separate 
492.20 	account for each beneficiary.
492.21 		Subd. 5.Ombudsperson's duties. (a) The Office of the Foster Youth Ombudsperson 
492.22 	must keep a record of the amounts deposited pursuant to subdivision 4 and all disbursements 
492.23 	for each beneficiary's account.
492.24 	(b) Annually, the Office of the Foster Youth Ombudsperson must determine the annual 
492.25 	interest earnings of the trust, which include realized capital gains and losses.
492.26 	(c) The Office of the Foster Youth Ombudsperson must apportion any annual capital 
492.27 	gains earnings to the separate beneficiaries' accounts. The rate to be used in this 
492.28 	apportionment, computed to the last full quarter percent, must be determined by dividing 
492.29 	the capital gains earnings by the total invested assets of the trust.
492.30 	(d) For each beneficiary between the ages of 14 and 18, the Office of the Foster Youth 
492.31 	Ombudsperson must notify the beneficiary of the amount of cash benefits received on the 
493.1 	beneficiary's behalf in the prior calendar year and the tax implications of those benefits by 
493.2 	February 1 of each year.
493.3 	(e) Account owner data, account data, and data on beneficiaries of accounts are private 
493.4 	data on individuals or nonpublic data as defined in section 13.02.
493.5 		Subd. 6.Account protections. (a) Trust assets are not subject to claims by creditors of 
493.6 	the state, are not part of the general fund, and are not subject to appropriation by the state.
493.7 	(b) Trust assets may not be used as collateral, as a part of a structured settlement, or in 
493.8 	any way contracted to be paid to anyone who is not the beneficiary.
493.9 	(c) Trust assets are not subject to seizure or garnishment as assets or income of the 
493.10 	beneficiary.
493.11 		Subd. 7.Reports. (a) By December 1, 2024, the Office of the Foster Youth 
493.12 	Ombudsperson must submit a report to the legislative committees with jurisdiction over 
493.13 	human services on the potential tax and state and federal benefit impacts of the trust and 
493.14 	disbursements on beneficiaries and include recommendations on how best to minimize any 
493.15 	increased tax burden or benefit reduction due to the trust.
493.16 	(b) By December 1 of each year, the Office of the Foster Youth Ombudsperson must 
493.17 	submit a report to the legislative committees with jurisdiction over foster youth on the cost 
493.18 	of depositing into the trust pursuant to subdivision 4 and a projection for future costs.
493.19 		Subd. 8.Disbursements. (a) Once a beneficiary has reached 18 years of age, the Office 
493.20 	of the Foster Youth Ombudsperson must disburse $700 each month to the beneficiary until 
493.21 	the beneficiary's account is depleted. If the total amount remaining in a beneficiary's account 
493.22 	is less than $700, the Office of the Foster Youth Ombudsperson must disburse that total 
493.23 	amount remaining to the beneficiary.
493.24 	(b) With each disbursement, the Office of the Foster Youth Ombudsperson must include 
493.25 	information about the potential tax and benefits consequences of the disbursement.
493.26 	(c) On petition of a minor beneficiary who is 14 years of age or older, a court may order 
493.27 	the Office of the Foster Youth Ombudsperson to deliver or pay to the beneficiary or expend 
493.28 	for the beneficiary's benefit the amount of the beneficiary's trust account as the court 
493.29 	considers advisable for the use and benefit of the beneficiary.
493.30 		Subd. 9.Administration. The Office of the Foster Youth Ombudsperson must administer 
493.31 	the program pursuant to this section. The Office of the Foster Youth Ombudsperson may 
493.32 	contract with one or more third parties to carry out some or all of these administrative duties, 
493.33 	including managing the assets of the trust and ensuring that records are maintained.
494.1 		Subd. 10.Repayment program. (a) No later than January 1, 2025, the Office of the 
494.2 	Foster Youth Ombudsperson must identify every person for whom a financially responsible 
494.3 	agency received cash benefits as the person's representative payee between August 1, 2018, 
494.4 	and July 31, 2023, and the amount of money diverted to the financially responsible agency 
494.5 	during that time. The Office of the Foster Youth Ombudsperson must attempt to notify 
494.6 	every individual identified in this paragraph of the individual's potential eligibility for 
494.7 	repayment pursuant to this subdivision no later than July 1, 2025.
494.8 	(b) No later than January 1, 2026, the Office of the Foster Youth Ombudsperson must 
494.9 	begin accepting applications for individuals described in paragraph (a) to receive 
494.10 	compensation for cash benefits diverted to the individual's financially responsible agency 
494.11 	between August 1, 2018, and July 31, 2023. The Office of the Foster Youth Ombudsperson 
494.12 	must develop a system to process the applications and approve all applications that can 
494.13 	show that the applicant had cash benefits diverted to a financially responsible agency between 
494.14 	August 1, 2018, and July 31, 2023.
494.15 	(c) For every beneficiary already enrolled in the foster youth benefits trust that the Office 
494.16 	of the Foster Youth Ombudsperson determines had cash benefits diverted to a financially 
494.17 	responsible agency between August 1, 2018, and July 31, 2023, the Office of the Foster 
494.18 	Youth Ombudsperson must deposit an amount equal to the cash benefits diverted to a 
494.19 	financially responsible agency between August 1, 2018, and July 31, 2023, into the 
494.20 	beneficiary's trust account. The Office of the Foster Youth Ombudsperson must screen 
494.21 	beneficiaries for eligibility under this paragraph automatically without requiring an 
494.22 	application from the beneficiaries.
494.23 	(d) For every applicant under paragraph (b) who is not already enrolled in the foster 
494.24 	youth benefits trust, the Office of the Foster Youth Ombudsperson must directly award the 
494.25 	applicant an amount equal to the cash benefits diverted to a financially responsible agency 
494.26 	between August 1, 2018, and July 31, 2023.
494.27 	(e) No later than January 31, 2025, the Office of the Foster Youth Ombudsperson must 
494.28 	issue a report to the chairs and ranking minority members of the legislative committees with 
494.29 	jurisdiction over foster youth. The report must include:
494.30 	(1) the number of persons identified for whom a financially responsible agency received 
494.31 	cash benefits as the person's representative payee between August 1, 2018, and July 31, 
494.32 	2023; and
494.33 	(2) the Office of the Foster Youth Ombudsperson's plan for notifying eligible persons 
494.34 	described in paragraph (a).
495.1 		Subd. 11.Rulemaking authority. The Office of the Foster Youth Ombudsperson is 
495.2 	authorized, subject to the provisions of chapter 14, to make rules necessary to the operation 
495.3 	of the foster youth benefits trust and repayment program and to aid in performing its 
495.4 	administrative duties and ensuring an equitable result for beneficiaries and former foster 
495.5 	youths.

495.6 	Sec. 4. [260.014] FAMILY FIRST PREVENTION AND EARLY INTERVENTION 
495.7 	ALLOCATION PROGRAM.
495.8 		Subdivision 1.Authorization. The commissioner shall establish a program that allocates 
495.9 	money to counties and federally recognized Tribes in Minnesota to provide prevention and 
495.10 	early intervention services.
495.11 		Subd. 2.Uses. (a) Money allocated to counties and Tribes may be used for the following 
495.12 	purposes:
495.13 	(1) to implement or expand any Family First Prevention Services Act service or program 
495.14 	that is included in the state's prevention plan;
495.15 	(2) to implement or expand any proposed Family First Prevention Services Act service 
495.16 	or program;
495.17 	(3) to implement or expand any existing Family First Prevention Services Act service 
495.18 	or programming; and
495.19 	(4) any other use approved by the commissioner.
495.20 	A county or a Tribe must use at least ten percent of the allocation to provide services and 
495.21 	supports directly to families.
495.22 		Subd. 3.Payments. (a) The commissioner shall allocate state money appropriated under 
495.23 	this section to each county board or Tribe on a calendar-year basis using a formula established 
495.24 	by the commissioner.
495.25 	(b) Notwithstanding this subdivision, to the extent that money is available, no county 
495.26 	or Tribe shall be allocated less than:
495.27 	(1) $25,000 in calendar year 2024;
495.28 	(2) $50,000 in calendar year 2025; and
495.29 	(3) $75,000 in calendar year 2026 and each year thereafter.
495.30 	(c) A county agency or an initiative Tribe must submit a plan and report the use of money 
495.31 	as determined by the commissioner.
496.1 	(d) The commissioner may distribute money under this section for a two-year period.
496.2 		Subd. 4.Prohibition on supplanting existing money. Money received under this section 
496.3 	must be used to address prevention and early intervention staffing, programming, and other 
496.4 	activities as determined by the commissioner. Money must not be used to supplant current 
496.5 	county or Tribal expenditures for these purposes.

496.6 	Sec. 5. [260.0141] FAMILY FIRST PREVENTION SERVICES ACT KINSHIP 
496.7 	NAVIGATOR GRANT PROGRAM.
496.8 		Subdivision 1.Establishment. The commissioner of human services must establish a 
496.9 	kinship navigator grant program as outlined by the federal Family First Prevention Services 
496.10 	Act.
496.11 		Subd. 2.Uses. Eligible grantees must use grant funds to assess and provide support to 
496.12 	meet kinship caregiver needs, provide connection to local and statewide resources, and 
496.13 	provide case management to assist with complex cases.

496.14 	Sec. 6. Minnesota Statutes 2022, section 260.761, subdivision 2, as amended by Laws 
496.15 	2023, chapter 16, section 16, is amended to read:
496.16 		Subd. 2.Notice to Tribes of services or court proceedings involving an Indian 
496.17 	child. (a) When a child-placing agency has information that a family assessment or,
496.18 	investigation, or noncaregiver sex trafficking assessment being conducted may involve an 
496.19 	Indian child, the child-placing agency shall notify the Indian child's Tribe of the family 
496.20 	assessment or, investigation, or noncaregiver sex trafficking assessment according to section 
496.21 	260E.18. The child-placing agency shall provide initial notice shall be provided by telephone 
496.22 	and by email or facsimile and shall include the child's full name and date of birth; the full 
496.23 	names and dates of birth of the child's biological parents; and if known the full names and 
496.24 	dates of birth of the child's grandparents and of the child's Indian custodian. If information 
496.25 	regarding the child's grandparents or Indian custodian is not immediately available, the 
496.26 	child-placing agency shall continue to request this information and shall notify the Tribe 
496.27 	when it is received. Notice shall be provided to all Tribes to which the child may have any 
496.28 	Tribal lineage. The child-placing agency shall request that the Tribe or a designated Tribal 
496.29 	representative participate in evaluating the family circumstances, identifying family and 
496.30 	Tribal community resources, and developing case plans. The child-placing agency shall 
496.31 	continue to include the Tribe in service planning and updates as to the progress of the case.
496.32 	(b) When a child-placing agency has information that a child receiving services may be 
496.33 	an Indian child, the child-placing agency shall notify the Tribe by telephone and by email 
497.1 	or facsimile of the child's full name and date of birth, the full names and dates of birth of 
497.2 	the child's biological parents, and, if known, the full names and dates of birth of the child's 
497.3 	grandparents and of the child's Indian custodian. This notification must be provided so for
497.4 	the Tribe can to determine if the child is a member or eligible for Tribal membership in the 
497.5 	Tribe, and must be provided the agency must provide the notification to the Tribe within 
497.6 	seven days of receiving information that the child may be an Indian child. If information 
497.7 	regarding the child's grandparents or Indian custodian is not available within the seven-day 
497.8 	period, the child-placing agency shall continue to request this information and shall notify 
497.9 	the Tribe when it is received. Notice shall be provided to all Tribes to which the child may 
497.10 	have any Tribal lineage.
497.11 	(c) In all child placement proceedings, when a court has reason to believe that a child 
497.12 	placed in emergency protective care is an Indian child, the court administrator or a designee 
497.13 	shall, as soon as possible and before a hearing takes place, notify the Tribal social services 
497.14 	agency by telephone and by email or facsimile of the date, time, and location of the 
497.15 	emergency protective care or other initial hearing. The court shall make efforts to allow 
497.16 	appearances by telephone or video conference for Tribal representatives, parents, and Indian 
497.17 	custodians.
497.18 	(d) The child-placing agency or individual petitioner shall effect service of any petition 
497.19 	governed by sections 260.751 to 260.835 by certified mail or registered mail, return receipt 
497.20 	requested upon the Indian child's parents, Indian custodian, and Indian child's Tribe at least 
497.21 	10 days before the admit-deny hearing is held. If the identity or location of the Indian child's 
497.22 	parents or Indian custodian and Tribe cannot be determined, the child-placing agency shall 
497.23 	provide the notice required in this paragraph to the United States Secretary of the Interior, 
497.24 	Bureau of Indian Affairs by certified mail, return receipt requested.
497.25 	(e) A Tribe, the Indian child's parents, or the Indian custodian may request up to 20 
497.26 	additional days to prepare for the admit-deny hearing. The court shall allow appearances 
497.27 	by telephone, video conference, or other electronic medium for Tribal representatives, the 
497.28 	Indian child's parents, or the Indian custodian.
497.29 	(f) A child-placing agency or individual petitioner must provide the notices required 
497.30 	under this subdivision at the earliest possible time to facilitate involvement of the Indian 
497.31 	child's Tribe. Nothing in this subdivision is intended to hinder the ability of the child-placing 
497.32 	agency, individual petitioner, and the court to respond to an emergency situation. Lack of 
497.33 	participation by a Tribe shall not prevent the Tribe from intervening in services and 
497.34 	proceedings at a later date. A Tribe may participate in a case at any time. At any stage of 
497.35 	the child-placing agency's involvement with an Indian child, the agency shall provide full 
498.1 	cooperation to the Tribal social services agency, including disclosure of all data concerning 
498.2 	the Indian child. Nothing in this subdivision relieves the child-placing agency of satisfying 
498.3 	the notice requirements in state or federal law.

498.4 	Sec. 7. Minnesota Statutes 2022, section 260C.007, subdivision 6, is amended to read:
498.5 		Subd. 6.Child in need of protection or services. "Child in need of protection or 
498.6 	services" means a child who is in need of protection or services because the child:
498.7 	(1) is abandoned or without parent, guardian, or custodian;
498.8 	(2)(i) has been a victim of physical or sexual abuse as defined in section 260E.03, 
498.9 	subdivision 18 or 20, (ii) resides with or has resided with a victim of child abuse as defined 
498.10 	in subdivision 5 or domestic child abuse as defined in subdivision 13, (iii) resides with or 
498.11 	would reside with a perpetrator of domestic child abuse as defined in subdivision 13 or child 
498.12 	abuse as defined in subdivision 5 or 13, or (iv) is a victim of emotional maltreatment as 
498.13 	defined in subdivision 15;
498.14 	(3) is without necessary food, clothing, shelter, education, or other required care for the 
498.15 	child's physical or mental health or morals because the child's parent, guardian, or custodian 
498.16 	is unable or unwilling to provide that care;
498.17 	(4) is without the special care made necessary by a physical, mental, or emotional 
498.18 	condition because the child's parent, guardian, or custodian is unable or unwilling to provide 
498.19 	that care. Parents of children reported to be in an emergency department or hospital setting 
498.20 	due to mental health or a disability who cannot be safely discharged to their family and are 
498.21 	unable to access necessary services must not be viewed as unable or unwilling to provide 
498.22 	care unless there are other factors present;
498.23 	(5) is medically neglected, which includes, but is not limited to, the withholding of 
498.24 	medically indicated treatment from an infant with a disability with a life-threatening 
498.25 	condition. The term "withholding of medically indicated treatment" means the failure to 
498.26 	respond to the infant's life-threatening conditions by providing treatment, including 
498.27 	appropriate nutrition, hydration, and medication which, in the treating physician's, advanced 
498.28 	practice registered nurse's, or physician assistant's reasonable medical judgment, will be 
498.29 	most likely to be effective in ameliorating or correcting all conditions, except that the term 
498.30 	does not include the failure to provide treatment other than appropriate nutrition, hydration, 
498.31 	or medication to an infant when, in the treating physician's, advanced practice registered 
498.32 	nurse's, or physician assistant's reasonable medical judgment:
498.33 	(i) the infant is chronically and irreversibly comatose;
499.1 	(ii) the provision of the treatment would merely prolong dying, not be effective in 
499.2 	ameliorating or correcting all of the infant's life-threatening conditions, or otherwise be 
499.3 	futile in terms of the survival of the infant; or
499.4 	(iii) the provision of the treatment would be virtually futile in terms of the survival of 
499.5 	the infant and the treatment itself under the circumstances would be inhumane;
499.6 	(6) is one whose parent, guardian, or other custodian for good cause desires to be relieved 
499.7 	of the child's care and custody, including a child who entered foster care under a voluntary 
499.8 	placement agreement between the parent and the responsible social services agency under 
499.9 	section 260C.227;
499.10 	(7) has been placed for adoption or care in violation of law;
499.11 	(8) is without proper parental care because of the emotional, mental, or physical disability, 
499.12 	or state of immaturity of the child's parent, guardian, or other custodian;
499.13 	(9) is one whose behavior, condition, or environment is such as to be injurious or 
499.14 	dangerous to the child or others. An injurious or dangerous environment may include, but 
499.15 	is not limited to, the exposure of a child to criminal activity in the child's home;
499.16 	(10) is experiencing growth delays, which may be referred to as failure to thrive, that 
499.17 	have been diagnosed by a physician and are due to parental neglect;
499.18 	(11) is a sexually exploited youth;
499.19 	(12) has committed a delinquent act or a juvenile petty offense before becoming ten 
499.20 	years old;
499.21 	(13) is a runaway;
499.22 	(14) is a habitual truant;
499.23 	(15) has been found incompetent to proceed or has been found not guilty by reason of 
499.24 	mental illness or mental deficiency in connection with a delinquency proceeding, a 
499.25 	certification under section 260B.125, an extended jurisdiction juvenile prosecution, or a 
499.26 	proceeding involving a juvenile petty offense; or
499.27 	(16) has a parent whose parental rights to one or more other children were involuntarily 
499.28 	terminated or whose custodial rights to another child have been involuntarily transferred to 
499.29 	a relative and there is a case plan prepared by the responsible social services agency 
499.30 	documenting a compelling reason why filing the termination of parental rights petition under 
499.31 	section 260C.503, subdivision 2, is not in the best interests of the child.

500.1 	Sec. 8. Minnesota Statutes 2022, section 260C.007, subdivision 14, is amended to read:
500.2 		Subd. 14.Egregious harm. "Egregious harm" means the infliction of bodily harm to a 
500.3 	child or neglect of a child which demonstrates a grossly inadequate ability to provide 
500.4 	minimally adequate parental care. The egregious harm need not have occurred in the state 
500.5 	or in the county where a termination of parental rights action is otherwise properly venued
500.6 	has proper venue. Egregious harm includes, but is not limited to:
500.7 	(1) conduct towards toward a child that constitutes a violation of sections 609.185 to 
500.8 	609.2114, 609.222, subdivision 2, 609.223, or any other similar law of any other state;
500.9 	(2) the infliction of "substantial bodily harm" to a child, as defined in section 609.02, 
500.10 	subdivision 7a;
500.11 	(3) conduct towards toward a child that constitutes felony malicious punishment of a 
500.12 	child under section 609.377;
500.13 	(4) conduct towards toward a child that constitutes felony unreasonable restraint of a 
500.14 	child under section 609.255, subdivision 3;
500.15 	(5) conduct towards toward a child that constitutes felony neglect or endangerment of 
500.16 	a child under section 609.378;
500.17 	(6) conduct towards toward a child that constitutes assault under section 609.221, 609.222, 
500.18 	or 609.223;
500.19 	(7) conduct towards toward a child that constitutes sex trafficking, solicitation, 
500.20 	inducement, or promotion of, or receiving profit derived from prostitution under section 
500.21 	609.322;
500.22 	(8) conduct towards toward a child that constitutes murder or voluntary manslaughter 
500.23 	as defined by United States Code, title 18, section 1111(a) or 1112(a);
500.24 	(9) conduct towards toward a child that constitutes aiding or abetting, attempting, 
500.25 	conspiring, or soliciting to commit a murder or voluntary manslaughter that constitutes a 
500.26 	violation of United States Code, title 18, section 1111(a) or 1112(a); or
500.27 	(10) conduct toward a child that constitutes criminal sexual conduct under sections 
500.28 	609.342 to 609.345 or sexual extortion under section 609.3458.

500.29 	Sec. 9. Minnesota Statutes 2022, section 260C.80, subdivision 1, is amended to read:
500.30 		Subdivision 1.Office of the Foster Youth Ombudsperson. The Office of the Foster 
500.31 	Youth Ombudsperson is hereby created. The ombudsperson serves at the pleasure of the 
501.1 	governor in the unclassified service, must be selected without regard to political affiliation, 
501.2 	and must be a person highly competent and qualified to work to improve the lives of youth 
501.3 	in the foster care system, while understanding the administration and public policy related 
501.4 	to youth in the foster care system. The ombudsperson may be removed only for just cause. 
501.5 	No person may serve as the foster youth ombudsperson while holding any other public 
501.6 	office. The foster youth ombudsperson is accountable to the governor and may investigate 
501.7 	decisions, acts, and other matters related to the health, safety, and welfare of youth in foster 
501.8 	care to promote the highest attainable standards of competence, efficiency, and justice for 
501.9 	youth who are in the care of the state.

501.10 	Sec. 10. Minnesota Statutes 2022, section 260E.01, is amended to read:
501.11 	260E.01 POLICY.
501.12 	(a) The legislature hereby declares that the public policy of this state is to protect children 
501.13 	whose health or welfare may be jeopardized through maltreatment. While it is recognized 
501.14 	that most parents want to keep their children safe, sometimes circumstances or conditions 
501.15 	interfere with their ability to do so. When this occurs, the health and safety of the children 
501.16 	must be of paramount concern. Intervention and prevention efforts must address immediate 
501.17 	concerns for child safety and the ongoing risk of maltreatment and should engage the 
501.18 	protective capacities of families. In furtherance of this public policy, it is the intent of the 
501.19 	legislature under this chapter to:
501.20 	(1) protect children and promote child safety;
501.21 	(2) strengthen the family;
501.22 	(3) make the home, school, and community safe for children by promoting responsible 
501.23 	child care in all settings; and
501.24 	(4) provide, when necessary, a safe temporary or permanent home environment for 
501.25 	maltreated children.
501.26 	(b) In addition, it is the policy of this state to:
501.27 	(1) require the reporting of maltreatment of children in the home, school, and community 
501.28 	settings;
501.29 	(2) provide for the voluntary reporting of maltreatment of children;
501.30 	(3) require an investigation when the report alleges sexual abuse or substantial child 
501.31 	endangerment, except when the report alleges sex trafficking by a noncaregiver sex trafficker;
502.1 	(4) provide a family assessment, if appropriate, when the report does not allege sexual 
502.2 	abuse or substantial child endangerment; and
502.3 	(5) provide a noncaregiver sex trafficking assessment when the report alleges sex 
502.4 	trafficking by a noncaregiver sex trafficker; and
502.5 	(6) provide protective, family support, and family preservation services when needed 
502.6 	in appropriate cases.

502.7 	EFFECTIVE DATE. This section is effective July 1, 2024.

502.8 	Sec. 11. Minnesota Statutes 2022, section 260E.02, subdivision 1, is amended to read:
502.9 		Subdivision 1.Establishment of team. A county shall establish a multidisciplinary 
502.10 	child protection team that may include, but is not be limited to, the director of the local 
502.11 	welfare agency or designees, the county attorney or designees, the county sheriff or designees, 
502.12 	representatives of health and education, representatives of mental health, representatives of 
502.13 	agencies providing specialized services or responding to youth who experience or are at 
502.14 	risk of experiencing sex trafficking or sexual exploitation, or other appropriate human 
502.15 	services or community-based agencies, and parent groups. As used in this section, a 
502.16 	"community-based agency" may include, but is not limited to, schools, social services 
502.17 	agencies, family service and mental health collaboratives, children's advocacy centers, early 
502.18 	childhood and family education programs, Head Start, or other agencies serving children 
502.19 	and families. A member of the team must be designated as the lead person of the team 
502.20 	responsible for the planning process to develop standards for the team's activities with 
502.21 	battered women's and domestic abuse programs and services.

502.22 	Sec. 12. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
502.23 	to read:
502.24 		Subd. 15a.Noncaregiver sex trafficker. "Noncaregiver sex trafficker" means an 
502.25 	individual who is alleged to have engaged in the act of sex trafficking a child and who is 
502.26 	not a person responsible for the child's care, who does not have a significant relationship 
502.27 	with the child as defined in section 609.341, and who is not a person in a current or recent 
502.28 	position of authority as defined in section 609.341, subdivision 10.

502.29 	EFFECTIVE DATE. This section is effective July 1, 2024.

503.1 	Sec. 13. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
503.2 	to read:
503.3 		Subd. 15b.Noncaregiver sex trafficking assessment. "Noncaregiver sex trafficking 
503.4 	assessment" is a comprehensive assessment of child safety, the risk of subsequent child 
503.5 	maltreatment, and strengths and needs of the child and family. The local welfare agency 
503.6 	shall only perform a noncaregiver sex trafficking assessment when a maltreatment report 
503.7 	alleges sex trafficking of a child by someone other than the child's caregiver. A noncaregiver 
503.8 	sex trafficking assessment does not include a determination of whether child maltreatment 
503.9 	occurred. A noncaregiver sex trafficking assessment includes a determination of a family's 
503.10 	need for services to address the safety of the child or children, the safety of family members, 
503.11 	and the risk of subsequent child maltreatment.

503.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

503.13 	Sec. 14. Minnesota Statutes 2022, section 260E.03, subdivision 22, is amended to read:
503.14 		Subd. 22.Substantial child endangerment. "Substantial child endangerment" means 
503.15 	that a person responsible for a child's care, by act or omission, commits or attempts to 
503.16 	commit an act against a child under their in the person's care that constitutes any of the 
503.17 	following:
503.18 	(1) egregious harm under subdivision 5;
503.19 	(2) abandonment under section 260C.301, subdivision 2;
503.20 	(3) neglect under subdivision 15, paragraph (a), clause (2), that substantially endangers 
503.21 	the child's physical or mental health, including a growth delay, which may be referred to 
503.22 	as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
503.23 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;
503.24 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
503.25 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;
503.26 	(7) sex trafficking, solicitation, inducement, and or promotion of prostitution under 
503.27 	section 609.322;
503.28 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
503.29 	(9) sexual extortion under section 609.3458;
503.30 	(10) solicitation of children to engage in sexual conduct under section 609.352;
504.1 	(11) malicious punishment or neglect or endangerment of a child under section 609.377 
504.2 	or 609.378;
504.3 	(12) use of a minor in sexual performance under section 617.246; or
504.4 	(13) parental behavior, status, or condition that mandates that requiring the county 
504.5 	attorney to file a termination of parental rights petition under section 260C.503, subdivision 
504.6 	2.

504.7 	Sec. 15. Minnesota Statutes 2022, section 260E.14, subdivision 2, is amended to read:
504.8 		Subd. 2.Sexual abuse. (a) The local welfare agency is the agency responsible for 
504.9 	investigating an allegation of sexual abuse if the alleged offender is the parent, guardian, 
504.10 	sibling, or an individual functioning within the family unit as a person responsible for the 
504.11 	child's care, or a person with a significant relationship to the child if that person resides in 
504.12 	the child's household.
504.13 	(b) The local welfare agency is also responsible for assessing or investigating when a 
504.14 	child is identified as a victim of sex trafficking.

504.15 	EFFECTIVE DATE. This section is effective July 1, 2024.

504.16 	Sec. 16. Minnesota Statutes 2022, section 260E.14, subdivision 5, is amended to read:
504.17 		Subd. 5.Law enforcement. (a) The local law enforcement agency is the agency 
504.18 	responsible for investigating a report of maltreatment if a violation of a criminal statute is 
504.19 	alleged.
504.20 	(b) Law enforcement and the responsible agency must coordinate their investigations 
504.21 	or assessments as required under this chapter when the: (1) a report alleges maltreatment 
504.22 	that is a violation of a criminal statute by a person who is a parent, guardian, sibling, person 
504.23 	responsible for the child's care functioning within the family unit, or by a person who lives 
504.24 	in the child's household and who has a significant relationship to the child, in a setting other 
504.25 	than a facility as defined in section 260E.03; or (2) a report alleges sex trafficking of a child.

504.26 	EFFECTIVE DATE. This section is effective July 1, 2024.

504.27 	Sec. 17. Minnesota Statutes 2022, section 260E.17, subdivision 1, is amended to read:
504.28 		Subdivision 1.Local welfare agency. (a) Upon receipt of a report, the local welfare 
504.29 	agency shall determine whether to conduct a family assessment or, an investigation, or a 
504.30 	noncaregiver sex trafficking assessment as appropriate to prevent or provide a remedy for 
504.31 	maltreatment.
505.1 	(b) The local welfare agency shall conduct an investigation when the report involves 
505.2 	sexual abuse, except as indicated in paragraph (f), or substantial child endangerment.
505.3 	(c) The local welfare agency shall begin an immediate investigation if, at any time when 
505.4 	the local welfare agency is using responding with a family assessment response, and the 
505.5 	local welfare agency determines that there is reason to believe that sexual abuse or, substantial 
505.6 	child endangerment, or a serious threat to the child's safety exists.
505.7 	(d) The local welfare agency may conduct a family assessment for reports that do not 
505.8 	allege sexual abuse, except as indicated in paragraph (f), or substantial child endangerment. 
505.9 	In determining that a family assessment is appropriate, the local welfare agency may consider 
505.10 	issues of child safety, parental cooperation, and the need for an immediate response.
505.11 	(e) The local welfare agency may conduct a family assessment on for a report that was 
505.12 	initially screened and assigned for an investigation. In determining that a complete 
505.13 	investigation is not required, the local welfare agency must document the reason for 
505.14 	terminating the investigation and notify the local law enforcement agency if the local law 
505.15 	enforcement agency is conducting a joint investigation.
505.16 	(f) The local welfare agency shall conduct a noncaregiver sex trafficking assessment 
505.17 	when a maltreatment report alleges sex trafficking of a child and the alleged offender is a 
505.18 	noncaregiver sex trafficker as defined by section 260E.03, subdivision 15a.
505.19 	(g) During a noncaregiver sex trafficking assessment, the local welfare agency shall 
505.20 	initiate an immediate investigation if there is reason to believe that a child's parent, caregiver, 
505.21 	or household member allegedly engaged in the act of sex trafficking a child or was alleged 
505.22 	to have engaged in any conduct requiring the agency to conduct an investigation.

505.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

505.24 	Sec. 18. Minnesota Statutes 2022, section 260E.18, is amended to read:
505.25 	260E.18 NOTICE TO CHILD'S TRIBE.
505.26 	The local welfare agency shall provide immediate notice, according to section 260.761, 
505.27 	subdivision 2, to an Indian child's Tribe when the agency has reason to believe that the 
505.28 	family assessment or, investigation, or noncaregiver sex trafficking assessment may involve 
505.29 	an Indian child. For purposes of this section, "immediate notice" means notice provided 
505.30 	within 24 hours.

505.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

506.1 	Sec. 19. Minnesota Statutes 2022, section 260E.20, subdivision 2, is amended to read:
506.2 		Subd. 2.Face-to-face contact. (a) Upon receipt of a screened in report, the local welfare 
506.3 	agency shall conduct a have face-to-face contact with the child reported to be maltreated 
506.4 	and with the child's primary caregiver sufficient to complete a safety assessment and ensure 
506.5 	the immediate safety of the child. When it is possible and the report alleges substantial child 
506.6 	endangerment or sexual abuse, the local welfare agency is not required to provide notice 
506.7 	before conducting the initial face-to-face contact with the child and the child's primary 
506.8 	caregiver.
506.9 	(b) Except in a noncaregiver sex trafficking assessment, the local welfare agency shall 
506.10 	have face-to-face contact with the child and primary caregiver shall occur immediately after 
506.11 	the agency screens in a report if sexual abuse or substantial child endangerment is alleged 
506.12 	and within five calendar days of a screened in report for all other reports. If the alleged 
506.13 	offender was not already interviewed as the primary caregiver, the local welfare agency 
506.14 	shall also conduct a face-to-face interview with the alleged offender in the early stages of 
506.15 	the assessment or investigation, except in a noncaregiver sex trafficking assessment. 
506.16 	Face-to-face contact with the child and primary caregiver in response to a report alleging 
506.17 	sexual abuse or substantial child endangerment may be postponed for no more than five 
506.18 	calendar days if the child is residing in a location that is confirmed to restrict contact with 
506.19 	the alleged offender as established in guidelines issued by the commissioner, or if the local 
506.20 	welfare agency is pursuing a court order for the child's caregiver to produce the child for 
506.21 	questioning under section 260E.22, subdivision 5.
506.22 	(c) At the initial contact with the alleged offender, the local welfare agency or the agency 
506.23 	responsible for assessing or investigating the report must inform the alleged offender of the 
506.24 	complaints or allegations made against the individual in a manner consistent with laws 
506.25 	protecting the rights of the person who made the report. The interview with the alleged 
506.26 	offender may be postponed if it would jeopardize an active law enforcement investigation.
506.27 	In a noncaregiver sex trafficking assessment, the local child welfare agency is not required 
506.28 	to inform or interview the alleged offender.
506.29 	(d) The local welfare agency or the agency responsible for assessing or investigating 
506.30 	the report must provide the alleged offender with an opportunity to make a statement, except 
506.31 	in a noncaregiver sex trafficking assessment. The alleged offender may submit supporting 
506.32 	documentation relevant to the assessment or investigation.

506.33 	EFFECTIVE DATE. This section is effective July 1, 2024.

507.1 	Sec. 20. Minnesota Statutes 2022, section 260E.24, subdivision 2, is amended to read:
507.2 		Subd. 2.Determination after family assessment or a noncaregiver sex trafficking 
507.3 	assessment. After conducting a family assessment or a noncaregiver sex trafficking 
507.4 	assessment, the local welfare agency shall determine whether child protective services are 
507.5 	needed to address the safety of the child and other family members and the risk of subsequent 
507.6 	maltreatment. The local welfare agency must document the information collected under 
507.7 	section 260E.20, subdivision 3, related to the completed family assessment in the child's or 
507.8 	family's case notes.

507.9 	EFFECTIVE DATE. This section is effective July 1, 2024.

507.10 	Sec. 21. Minnesota Statutes 2022, section 260E.24, subdivision 7, is amended to read:
507.11 		Subd. 7.Notification at conclusion of family assessment or a noncaregiver sex 
507.12 	trafficking assessment. Within ten working days of the conclusion of a family assessment
507.13 	or a noncaregiver sex trafficking assessment, the local welfare agency shall notify the parent 
507.14 	or guardian of the child of the need for services to address child safety concerns or significant 
507.15 	risk of subsequent maltreatment. The local welfare agency and the family may also jointly 
507.16 	agree that family support and family preservation services are needed.

507.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

507.18 	Sec. 22. Minnesota Statutes 2022, section 260E.33, subdivision 1, is amended to read:
507.19 		Subdivision 1.Following a family assessment or a noncaregiver sex trafficking 
507.20 	assessment. Administrative reconsideration is not applicable to a family assessment or 
507.21 	noncaregiver sex trafficking assessment since no determination concerning maltreatment 
507.22 	is made.

507.23 	EFFECTIVE DATE. This section is effective July 1, 2024.

507.24 	Sec. 23. Minnesota Statutes 2022, section 260E.35, subdivision 6, is amended to read:
507.25 		Subd. 6.Data retention. (a) Notwithstanding sections 138.163 and 138.17, a record 
507.26 	maintained or a record derived from a report of maltreatment by a local welfare agency, 
507.27 	agency responsible for assessing or investigating the report, court services agency, or school 
507.28 	under this chapter shall be destroyed as provided in paragraphs (b) to (e) by the responsible 
507.29 	authority.
507.30 	(b) For a report alleging maltreatment that was not accepted for an assessment or an 
507.31 	investigation, a family assessment case, a noncaregiver sex trafficking assessment case, and 
508.1 	a case where an investigation results in no determination of maltreatment or the need for 
508.2 	child protective services, the record must be maintained for a period of five years after the 
508.3 	date that the report was not accepted for assessment or investigation or the date of the final 
508.4 	entry in the case record. A record of a report that was not accepted must contain sufficient 
508.5 	information to identify the subjects of the report, the nature of the alleged maltreatment, 
508.6 	and the reasons as to why the report was not accepted. Records under this paragraph may 
508.7 	not be used for employment, background checks, or purposes other than to assist in future 
508.8 	screening decisions and risk and safety assessments.
508.9 	(c) All records relating to reports that, upon investigation, indicate either maltreatment 
508.10 	or a need for child protective services shall be maintained for ten years after the date of the 
508.11 	final entry in the case record.
508.12 	(d) All records regarding a report of maltreatment, including a notification of intent to 
508.13 	interview that was received by a school under section 260E.22, subdivision 7, shall be 
508.14 	destroyed by the school when ordered to do so by the agency conducting the assessment or 
508.15 	investigation. The agency shall order the destruction of the notification when other records 
508.16 	relating to the report under investigation or assessment are destroyed under this subdivision.
508.17 	(e) Private or confidential data released to a court services agency under subdivision 3, 
508.18 	paragraph (d), must be destroyed by the court services agency when ordered to do so by the 
508.19 	local welfare agency that released the data. The local welfare agency or agency responsible 
508.20 	for assessing or investigating the report shall order destruction of the data when other records 
508.21 	relating to the assessment or investigation are destroyed under this subdivision.

508.22 	EFFECTIVE DATE. This section is effective July 1, 2024.

508.23 	Sec. 24. Minnesota Statutes 2022, section 518A.31, is amended to read:
508.24 	518A.31 SOCIAL SECURITY OR VETERANS' BENEFIT PAYMENTS 
508.25 	RECEIVED ON BEHALF OF THE CHILD.
508.26 	(a) The amount of the monthly Social Security benefits or apportioned veterans' benefits 
508.27 	provided for a joint child shall be included in the gross income of the parent on whose 
508.28 	eligibility the benefits are based.
508.29 	(b) The amount of the monthly survivors' and dependents' educational assistance provided 
508.30 	for a joint child shall be included in the gross income of the parent on whose eligibility the 
508.31 	benefits are based.
508.32 	(c) If Social Security or apportioned veterans' benefits are provided for a joint child 
508.33 	based on the eligibility of the obligor, and are received by the obligee as a representative 
509.1 	payee for the child or by the child attending school, then the amount of the benefits shall 
509.2 	also be subtracted from the obligor's net child support obligation as calculated pursuant to 
509.3 	section 518A.34.
509.4 	(d) If the survivors' and dependents' educational assistance is provided for a joint child 
509.5 	based on the eligibility of the obligor, and is received by the obligee as a representative 
509.6 	payee for the child or by the child attending school, then the amount of the assistance shall 
509.7 	also be subtracted from the obligor's net child support obligation as calculated under section 
509.8 	518A.34.
509.9 	(e) Upon a motion to modify child support, any regular or lump sum payment of Social 
509.10 	Security or apportioned veterans' benefit received by the obligee for the benefit of the joint 
509.11 	child based upon the obligor's disability prior to filing the motion to modify may be used 
509.12 	to satisfy arrears that remain due for the period of time for which the benefit was received. 
509.13 	This paragraph applies only if the derivative benefit was not considered in the guidelines 
509.14 	calculation of the previous child support order.

509.15 	EFFECTIVE DATE. This section is effective January 1, 2025.

509.16 	Sec. 25. Minnesota Statutes 2022, section 518A.32, subdivision 3, is amended to read:
509.17 		Subd. 3.Parent not considered voluntarily unemployed, underemployed, or employed 
509.18 	on a less than full-time basis. A parent is not considered voluntarily unemployed, 
509.19 	underemployed, or employed on a less than full-time basis upon a showing by the parent 
509.20 	that:
509.21 	(1) the unemployment, underemployment, or employment on a less than full-time basis 
509.22 	is temporary and will ultimately lead to an increase in income;
509.23 	(2) the unemployment, underemployment, or employment on a less than full-time basis 
509.24 	represents a bona fide career change that outweighs the adverse effect of that parent's 
509.25 	diminished income on the child; or
509.26 	(3) the unemployment, underemployment, or employment on a less than full-time basis 
509.27 	is because a parent is physically or mentally incapacitated or due to incarceration.; or
509.28 	(4) a governmental agency authorized to determine eligibility for general assistance or 
509.29 	supplemental Social Security income has determined that the individual is eligible to receive 
509.30 	general assistance or supplemental Social Security income. Actual income earned by the 
509.31 	parent may be considered for the purpose of calculating child support.

509.32 	EFFECTIVE DATE. This section is effective January 1, 2025.

510.1 	Sec. 26. Minnesota Statutes 2022, section 518A.32, subdivision 4, is amended to read:
510.2 		Subd. 4.TANF or MFIP recipient. If the parent of a joint child is a recipient of a 
510.3 	temporary assistance to a needy family (TANF) cash grant, or comparable state-funded 
510.4 	Minnesota family investment program (MFIP) benefits, no potential income is to be imputed 
510.5 	to that parent.

510.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

510.7 	Sec. 27. Minnesota Statutes 2022, section 518A.34, is amended to read:
510.8 	518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
510.9 	(a) To determine the presumptive child support obligation of a parent, the court shall 
510.10 	follow the procedure set forth in this section.
510.11 	(b) To determine the obligor's basic support obligation, the court shall:
510.12 	(1) determine the gross income of each parent under section 518A.29;
510.13 	(2) calculate the parental income for determining child support (PICS) of each parent, 
510.14 	by subtracting from the gross income the credit, if any, for each parent's nonjoint children 
510.15 	under section 518A.33;
510.16 	(3) determine the percentage contribution of each parent to the combined PICS by 
510.17 	dividing the combined PICS into each parent's PICS;
510.18 	(4) determine the combined basic support obligation by application of the guidelines in 
510.19 	section 518A.35;
510.20 	(5) determine each parent's share of the combined basic support obligation by multiplying 
510.21 	the percentage figure from clause (3) by the combined basic support obligation in clause 
510.22 	(4); and
510.23 	(6) apply the parenting expense adjustment formula provided in section 518A.36 to 
510.24 	determine the obligor's basic support obligation.
510.25 	(c) If the parents have split custody of joint children, child support must be calculated 
510.26 	for each joint child as follows:
510.27 	(1) the court shall determine each parent's basic support obligation under paragraph (b) 
510.28 	and include the amount of each parent's obligation in the court order. If the basic support 
510.29 	calculation results in each parent owing support to the other, the court shall offset the higher 
510.30 	basic support obligation with the lower basic support obligation to determine the amount 
510.31 	to be paid by the parent with the higher obligation to the parent with the lower obligation. 
511.1 	For the purpose of the cost-of-living adjustment required under section 518A.75, the 
511.2 	adjustment must be based on each parent's basic support obligation prior to offset. For the 
511.3 	purposes of this paragraph, "split custody" means that there are two or more joint children 
511.4 	and each parent has at least one joint child more than 50 percent of the time;
511.5 	(2) if each parent pays all child care expenses for at least one joint child, the court shall 
511.6 	calculate child care support for each joint child as provided in section 518A.40. The court 
511.7 	shall determine each parent's child care support obligation and include the amount of each 
511.8 	parent's obligation in the court order. If the child care support calculation results in each 
511.9 	parent owing support to the other, the court shall offset the higher child care support 
511.10 	obligation with the lower child care support obligation to determine the amount to be paid 
511.11 	by the parent with the higher obligation to the parent with the lower obligation; and
511.12 	(3) if each parent pays all medical or dental insurance expenses for at least one joint 
511.13 	child, medical support shall be calculated for each joint child as provided in section 518A.41. 
511.14 	The court shall determine each parent's medical support obligation and include the amount 
511.15 	of each parent's obligation in the court order. If the medical support calculation results in 
511.16 	each parent owing support to the other, the court shall offset the higher medical support 
511.17 	obligation with the lower medical support obligation to determine the amount to be paid by 
511.18 	the parent with the higher obligation to the parent with the lower obligation. Unreimbursed 
511.19 	and uninsured medical expenses are not included in the presumptive amount of support 
511.20 	owed by a parent and are calculated and collected as provided in section 518A.41.
511.21 	(d) The court shall determine the child care support obligation for the obligor as provided 
511.22 	in section 518A.40.
511.23 	(e) The court shall determine the medical support obligation for each parent as provided 
511.24 	in section 518A.41. Unreimbursed and uninsured medical expenses are not included in the 
511.25 	presumptive amount of support owed by a parent and are calculated and collected as described 
511.26 	in section 518A.41.
511.27 	(f) The court shall determine each parent's total child support obligation by adding 
511.28 	together each parent's basic support, child care support, and health care coverage obligations 
511.29 	as provided in this section.
511.30 	(g) If Social Security benefits or veterans' benefits are received by one parent as a 
511.31 	representative payee for a joint child based on the other parent's eligibility, the court shall 
511.32 	subtract the amount of benefits from the other parent's net child support obligation, if any.
511.33 	Any benefit received by the obligee for the benefit of the joint child based upon the obligor's 
512.1 	disability or past earnings in any given month in excess of the child support obligation must 
512.2 	not be treated as an arrearage payment or a future payment.
512.3 	(h) The final child support order shall separately designate the amount owed for basic 
512.4 	support, child care support, and medical support. If applicable, the court shall use the 
512.5 	self-support adjustment and minimum support adjustment under section 518A.42 to determine 
512.6 	the obligor's child support obligation.

512.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

512.8 	Sec. 28. Minnesota Statutes 2022, section 518A.41, is amended to read:
512.9 	518A.41 MEDICAL SUPPORT.
512.10 		Subdivision 1.Definitions. The definitions in this subdivision apply to this chapter and 
512.11 	chapter 518.
512.12 	(a) "Health care coverage" means medical, dental, or other health care benefits that are 
512.13 	provided by one or more health plans. Health care coverage does not include any form of 
512.14 	public coverage private health care coverage, including fee for service, health maintenance 
512.15 	organization, preferred provider organization, and other types of private health care coverage. 
512.16 	Health care coverage also means public health care coverage under which medical or dental 
512.17 	services could be provided to a dependent child.
512.18 	(b) "Health carrier" means a carrier as defined in sections 62A.011, subdivision 2, and 
512.19 	62L.02, subdivision 16.
512.20 	(c) "Health plan" (b) "Private health care coverage" means a health plan, other than any 
512.21 	form of public coverage, that provides medical, dental, or other health care benefits and is:
512.22 	(1) provided on an individual or group basis;
512.23 	(2) provided by an employer or union;
512.24 	(3) purchased in the private market; or
512.25 	(4) provided through MinnesotaCare under chapter 256L; or
512.26 	(4) (5) available to a person eligible to carry insurance for the joint child, including a 
512.27 	party's spouse or parent.
512.28 	Health plan Private health care coverage includes, but is not limited to, a health plan meeting 
512.29 	the definition under section 62A.011, subdivision 3, except that the exclusion of coverage 
512.30 	designed solely to provide dental or vision care under section 62A.011, subdivision 3, clause 
512.31 	(6), does not apply to the definition of health plan private health care coverage under this 
513.1 	section; a group health plan governed under the federal Employee Retirement Income 
513.2 	Security Act of 1974 (ERISA); a self-insured plan under sections 43A.23 to 43A.317 and 
513.3 	471.617; and a policy, contract, or certificate issued by a community-integrated service 
513.4 	network licensed under chapter 62N.
513.5 	(c) "Public health care coverage" means health care benefits provided by any form of 
513.6 	medical assistance under chapter 256B. Public health care coverage does not include 
513.7 	MinnesotaCare or health plans subsidized by federal premium tax credits or federal 
513.8 	cost-sharing reductions.
513.9 	(d) "Medical support" means providing health care coverage for a joint child by carrying 
513.10 	health care coverage for the joint child or by contributing to the cost of health care coverage,
513.11 	public coverage, unreimbursed medical health-related expenses, and uninsured medical
513.12 	health-related expenses of the joint child.
513.13 	(e) "National medical support notice" means an administrative notice issued by the public 
513.14 	authority to enforce health insurance provisions of a support order in accordance with Code 
513.15 	of Federal Regulations, title 45, section 303.32, in cases where the public authority provides 
513.16 	support enforcement services.
513.17 	(f) "Public coverage" means health care benefits provided by any form of medical 
513.18 	assistance under chapter 256B. Public coverage does not include MinnesotaCare or health 
513.19 	plans subsidized by federal premium tax credits or federal cost-sharing reductions.
513.20 	(g) (f) "Uninsured medical health-related expenses" means a joint child's reasonable and 
513.21 	necessary health-related medical and dental expenses if the joint child is not covered by a 
513.22 	health plan or public coverage private health insurance care when the expenses are incurred.
513.23 	(h) (g) "Unreimbursed medical health-related expenses" means a joint child's reasonable 
513.24 	and necessary health-related medical and dental expenses if a joint child is covered by a 
513.25 	health plan or public coverage health care coverage and the plan or health care coverage 
513.26 	does not pay for the total cost of the expenses when the expenses are incurred. Unreimbursed 
513.27 	medical health-related expenses do not include the cost of premiums. Unreimbursed medical
513.28 	health-related expenses include, but are not limited to, deductibles, co-payments, and 
513.29 	expenses for orthodontia, and prescription eyeglasses and contact lenses, but not 
513.30 	over-the-counter medications if coverage is under a health plan provided through health 
513.31 	care coverage.
513.32 		Subd. 2.Order. (a) A completed national medical support notice issued by the public 
513.33 	authority or a court order that complies with this section is a qualified medical child support 
514.1 	order under the federal Employee Retirement Income Security Act of 1974 (ERISA), United 
514.2 	States Code, title 29, section 1169(a).
514.3 	(b) Every order addressing child support must state:
514.4 	(1) the names, last known addresses, and Social Security numbers of the parents and the 
514.5 	joint child that is a subject of the order unless the court prohibits the inclusion of an address 
514.6 	or Social Security number and orders the parents to provide the address and Social Security 
514.7 	number to the administrator of the health plan;
514.8 	(2) if a joint child is not presently enrolled in health care coverage, whether appropriate 
514.9 	health care coverage for the joint child is available and, if so, state:
514.10 	(i) the parents' responsibilities for carrying health care coverage;
514.11 	(ii) the cost of premiums and how the cost is allocated between the parents; and
514.12 	(iii) the circumstances, if any, under which an obligation to provide private health care 
514.13 	coverage for the joint child will shift from one parent to the other; and
514.14 	(3) if appropriate health care coverage is not available for the joint child, (iv) whether 
514.15 	a contribution for medical support public health care coverage is required; and
514.16 	(4) (3) how unreimbursed or uninsured medical health-related expenses will be allocated 
514.17 	between the parents.
514.18 		Subd. 3.Determining appropriate health care coverage. Public health care coverage 
514.19 	is presumed appropriate. In determining whether a parent has appropriate private health 
514.20 	care coverage for the joint child, the court must consider the following factors:
514.21 	(1) comprehensiveness of private health care coverage providing medical benefits. 
514.22 	Dependent private health care coverage providing medical benefits is presumed 
514.23 	comprehensive if it includes medical and hospital coverage and provides for preventive, 
514.24 	emergency, acute, and chronic care; or if it meets the minimum essential coverage definition 
514.25 	in United States Code, title 26, section 5000A(f). If both parents have private health care 
514.26 	coverage providing medical benefits that is presumed comprehensive under this paragraph, 
514.27 	the court must determine which parent's private health care coverage is more comprehensive 
514.28 	by considering what other benefits are included in the private health care coverage;
514.29 	(2) accessibility. Dependent private health care coverage is accessible if the covered 
514.30 	joint child can obtain services from a health plan provider with reasonable effort by the 
514.31 	parent with whom the joint child resides. Private health care coverage is presumed accessible 
514.32 	if:
515.1 	(i) primary care is available within 30 minutes or 30 miles of the joint child's residence 
515.2 	and specialty care is available within 60 minutes or 60 miles of the joint child's residence;
515.3 	(ii) the private health care coverage is available through an employer and the employee 
515.4 	can be expected to remain employed for a reasonable amount of time; and
515.5 	(iii) no preexisting conditions exist to unduly delay enrollment in private health care 
515.6 	coverage;
515.7 	(3) the joint child's special medical needs, if any; and
515.8 	(4) affordability. Dependent private health care coverage is presumed affordable if it is 
515.9 	reasonable in cost. If both parents have health care coverage available for a joint child that 
515.10 	is comparable with regard to comprehensiveness of medical benefits, accessibility, and the 
515.11 	joint child's special needs, the least costly health care coverage is presumed to be the most 
515.12 	appropriate health care coverage for the joint child the premium to cover the marginal cost 
515.13 	of the joint child does not exceed five percent of the parents' combined monthly PICS. A 
515.14 	court may additionally consider high deductibles and the cost to enroll the parent if the 
515.15 	parent must enroll themselves in private health care coverage to access private health care 
515.16 	coverage for the child.
515.17 		Subd. 4.Ordering health care coverage. (a) If a joint child is presently enrolled in 
515.18 	health care coverage, the court must order that the parent who currently has the joint child 
515.19 	enrolled continue that enrollment unless the parties agree otherwise or a party requests a 
515.20 	change in coverage and the court determines that other health care coverage is more 
515.21 	appropriate.
515.22 	(b) If a joint child is not presently enrolled in health care coverage providing medical 
515.23 	benefits, upon motion of a parent or the public authority, the court must determine whether 
515.24 	one or both parents have appropriate health care coverage providing medical benefits for 
515.25 	the joint child.
515.26 	(a) If a joint child is presently enrolled in health care coverage, the court shall order that 
515.27 	the parent who currently has the joint child enrolled in health care coverage continue that 
515.28 	enrollment if the health care coverage is appropriate as defined under subdivision 3.
515.29 	(c) (b) If only one parent has appropriate health care coverage providing medical benefits 
515.30 	available, the court must order that parent to carry the coverage for the joint child.
515.31 	(d) (c) If both parents have appropriate health care coverage providing medical benefits 
515.32 	available, the court must order the parent with whom the joint child resides to carry the 
515.33 	health care coverage for the joint child, unless:
516.1 	(1) a party expresses a preference for private health care coverage providing medical 
516.2 	benefits available through the parent with whom the joint child does not reside;
516.3 	(2) the parent with whom the joint child does not reside is already carrying dependent 
516.4 	private health care coverage providing medical benefits for other children and the cost of 
516.5 	contributing to the premiums of the other parent's health care coverage would cause the 
516.6 	parent with whom the joint child does not reside extreme hardship; or
516.7 	(3) the parties agree as to which parent will carry health care coverage providing medical 
516.8 	benefits and agree on the allocation of costs.
516.9 	(e) (d) If the exception in paragraph (d) (c), clause (1) or (2), applies, the court must 
516.10 	determine which parent has the most appropriate health care coverage providing medical 
516.11 	benefits available and order that parent to carry health care coverage for the joint child.
516.12 	(f) (e) If neither parent has appropriate health care coverage available, the court must 
516.13 	order the parents to:
516.14 	(1) contribute toward the actual health care costs of the joint children based on a pro 
516.15 	rata share; or.
516.16 	(2) if the joint child is receiving any form of public coverage, the parent with whom the 
516.17 	joint child does not reside shall contribute a monthly amount toward the actual cost of public 
516.18 	coverage. The amount of the noncustodial parent's contribution is determined by applying 
516.19 	the noncustodial parent's PICS to the premium scale for MinnesotaCare under section 
516.20 	256L.15, subdivision 2, paragraph (d). If the noncustodial parent's PICS meets the eligibility 
516.21 	requirements for MinnesotaCare, the contribution is the amount the noncustodial parent 
516.22 	would pay for the child's premium. If the noncustodial parent's PICS exceeds the eligibility 
516.23 	requirements, the contribution is the amount of the premium for the highest eligible income 
516.24 	on the premium scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph 
516.25 	(d). For purposes of determining the premium amount, the noncustodial parent's household 
516.26 	size is equal to one parent plus the child or children who are the subject of the child support 
516.27 	order. The custodial parent's obligation is determined under the requirements for public 
516.28 	coverage as set forth in chapter 256B; or
516.29 	(3) if the noncustodial parent's PICS meet the eligibility requirement for public coverage 
516.30 	under chapter 256B or the noncustodial parent receives public assistance, the noncustodial 
516.31 	parent must not be ordered to contribute toward the cost of public coverage.
517.1 	(g) (f) If neither parent has appropriate health care coverage available, the court may 
517.2 	order the parent with whom the child resides to apply for public health care coverage for 
517.3 	the child.
517.4 	(h) The commissioner of human services must publish a table with the premium schedule 
517.5 	for public coverage and update the chart for changes to the schedule by July 1 of each year.
517.6 	(i) (g) If a joint child is not presently enrolled in private health care coverage providing 
517.7 	dental benefits, upon motion of a parent or the public authority, the court must determine 
517.8 	whether one or both parents have appropriate dentalprivate health care coverage providing 
517.9 	dental benefits for the joint child, and the court may order a parent with appropriate dental
517.10 	private health care coverage providing dental benefits available to carry the health care 
517.11 	coverage for the joint child.
517.12 	(j) (h) If a joint child is not presently enrolled in available private health care coverage 
517.13 	providing benefits other than medical benefits or dental benefits, upon motion of a parent 
517.14 	or the public authority, the court may determine whether that other private health care 
517.15 	coverage providing other health benefits for the joint child is appropriate, and the court may 
517.16 	order a parent with that appropriate private health care coverage available to carry the 
517.17 	coverage for the joint child.
517.18 		Subd. 5.Medical support costs; unreimbursed and uninsured medical health-related
517.19 	expenses. (a) Unless otherwise agreed to by the parties and approved by the court, the court 
517.20 	must order that the cost of private health care coverage and all unreimbursed and uninsured 
517.21 	medical health-related expenses under the health plan be divided between the obligor and 
517.22 	obligee based on their proportionate share of the parties' combined monthly PICS. The 
517.23 	amount allocated for medical support is considered child support but is not subject to a 
517.24 	cost-of-living adjustment under section 518A.75.
517.25 	(b) If a party owes a joint child basic support obligation for a joint child and is ordered 
517.26 	to carry private health care coverage for the joint child, and the other party is ordered to 
517.27 	contribute to the carrying party's cost for coverage, the carrying party's child basic support 
517.28 	payment must be reduced by the amount of the contributing party's contribution.
517.29 	(c) If a party owes a joint childbasic support obligation for a joint child and is ordered 
517.30 	to contribute to the other party's cost for carrying private health care coverage for the joint 
517.31 	child, the contributing party's child support payment must be increased by the amount of 
517.32 	the contribution. The contribution toward private health care coverage must not be charged 
517.33 	in any month in which the party ordered to carry private health care coverage fails to maintain 
517.34 	private coverage.
518.1 	(d) If the party ordered to carry private health care coverage for the joint child already 
518.2 	carries dependent private health care coverage for other dependents and would incur no 
518.3 	additional premium costs to add the joint child to the existing health care coverage, the court 
518.4 	must not order the other party to contribute to the premium costs for health care coverage 
518.5 	of the joint child.
518.6 	(e) If a party ordered to carry private health care coverage for the joint child does not 
518.7 	already carry dependent private health care coverage but has other dependents who may be 
518.8 	added to the ordered health care coverage, the full premium costs of the dependent private 
518.9 	health care coverage must be allocated between the parties in proportion to the party's share 
518.10 	of the parties' combined monthly PICS, unless the parties agree otherwise.
518.11 	(f) If a party ordered to carry private health care coverage for the joint child is required 
518.12 	to enroll in a health plan so that the joint child can be enrolled in dependent private health 
518.13 	care coverage under the plan, the court must allocate the costs of the dependent private 
518.14 	health care coverage between the parties. The costs of the private health care coverage for 
518.15 	the party ordered to carry the health care coverage for the joint child must not be allocated 
518.16 	between the parties.
518.17 	(g) If the joint child is receiving any form of public health care coverage:
518.18 	(1) the parent with whom the joint child does not reside shall contribute a monthly 
518.19 	amount toward the actual cost of public health care coverage. The amount of the noncustodial 
518.20 	parent's contribution is determined by applying the noncustodial parent's PICS to the premium 
518.21 	scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). If the 
518.22 	noncustodial parent's PICS meets the eligibility requirements for MinnesotaCare, the 
518.23 	contribution is the amount that the noncustodial parent would pay for the child's premium;
518.24 	(2) if the noncustodial parent's PICS exceeds the eligibility requirements, the contribution 
518.25 	is the amount of the premium for the highest eligible income on the premium scale for 
518.26 	MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). For purposes of 
518.27 	determining the premium amount, the noncustodial parent's household size is equal to one 
518.28 	parent plus the child or children who are the subject of the order;
518.29 	(3) the custodial parent's obligation is determined under the requirements for public 
518.30 	health care coverage in chapter 256B; or
518.31 	(4) if the noncustodial parent's PICS is less than 200 percent of the federal poverty 
518.32 	guidelines for one person or the noncustodial parent receives public assistance, the 
518.33 	noncustodial parent must not be ordered to contribute toward the cost of public health care 
518.34 	coverage.
519.1 	(h) The commissioner of human services must publish a table for section 256L.15, 
519.2 	subdivision 2, paragraph (d), and update the table with changes to the schedule by July 1 
519.3 	of each year.
519.4 		Subd. 6.Notice or court order sent to party's employer, union, or health carrier. (a) 
519.5 	The public authority must forward a copy of the national medical support notice or court 
519.6 	order for private health care coverage to the party's employer within two business days after 
519.7 	the date the party is entered into the work reporting system under section 256.998.
519.8 	(b) The public authority or a party seeking to enforce an order for private health care 
519.9 	coverage must forward a copy of the national medical support notice or court order to the 
519.10 	obligor's employer or union, or to the health carrier under the following circumstances:
519.11 	(1) the party ordered to carry private health care coverage for the joint child fails to 
519.12 	provide written proof to the other party or the public authority, within 30 days of the effective 
519.13 	date of the court order, that the party has applied for private health care coverage for the 
519.14 	joint child;
519.15 	(2) the party seeking to enforce the order or the public authority gives written notice to 
519.16 	the party ordered to carry private health care coverage for the joint child of its intent to 
519.17 	enforce medical support. The party seeking to enforce the order or public authority must 
519.18 	mail the written notice to the last known address of the party ordered to carry private health 
519.19 	care coverage for the joint child; and
519.20 	(3) the party ordered to carry private health care coverage for the joint child fails, within 
519.21 	15 days after the date on which the written notice under clause (2) was mailed, to provide 
519.22 	written proof to the other party or the public authority that the party has applied for private 
519.23 	health care coverage for the joint child.
519.24 	(c) The public authority is not required to forward a copy of the national medical support 
519.25 	notice or court order to the obligor's employer or union, or to the health carrier, if the court 
519.26 	orders private health care coverage for the joint child that is not employer-based or 
519.27 	union-based coverage.
519.28 		Subd. 7.Employer or union requirements. (a) An employer or union must forward 
519.29 	the national medical support notice or court order to its health plan within 20 business days 
519.30 	after the date on the national medical support notice or after receipt of the court order.
519.31 	(b) Upon determination by an employer's or union's health plan administrator that a joint 
519.32 	child is eligible to be covered under the health plan, the employer or union and health plan 
519.33 	must enroll the joint child as a beneficiary in the health plan, and the employer must withhold 
520.1 	any required premiums from the income or wages of the party ordered to carry health care 
520.2 	coverage for the joint child.
520.3 	(c) If enrollment of the party ordered to carry private health care coverage for a joint 
520.4 	child is necessary to obtain dependent private health care coverage under the plan, and the 
520.5 	party is not enrolled in the health plan, the employer or union must enroll the party in the 
520.6 	plan.
520.7 	(d) Enrollment of dependents and, if necessary, the party ordered to carry private health 
520.8 	care coverage for the joint child must be immediate and not dependent upon open enrollment 
520.9 	periods. Enrollment is not subject to the underwriting policies under section 62A.048.
520.10 	(e) Failure of the party ordered to carry private health care coverage for the joint child 
520.11 	to execute any documents necessary to enroll the dependent in the health plan does not 
520.12 	affect the obligation of the employer or union and health plan to enroll the dependent in a 
520.13 	plan. Information and authorization provided by the public authority, or by a party or 
520.14 	guardian, is valid for the purposes of meeting enrollment requirements of the health plan.
520.15 	(f) An employer or union that is included under the federal Employee Retirement Income 
520.16 	Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), may not deny 
520.17 	enrollment to the joint child or to the parent if necessary to enroll the joint child based on 
520.18 	exclusionary clauses described in section 62A.048.
520.19 	(g) A new employer or union of a party who is ordered to provide private health care 
520.20 	coverage for a joint child must enroll the joint child in the party's health plan as required 
520.21 	by a national medical support notice or court order.
520.22 		Subd. 8.Health plan requirements. (a) If a health plan administrator receives a 
520.23 	completed national medical support notice or court order, the plan administrator must notify 
520.24 	the parties, and the public authority if the public authority provides support enforcement 
520.25 	services, within 40 business days after the date of the notice or after receipt of the court 
520.26 	order, of the following:
520.27 	(1) whether health care coverage is available to the joint child under the terms of the 
520.28 	health plan and, if not, the reason why health care coverage is not available;
520.29 	(2) whether the joint child is covered under the health plan;
520.30 	(3) the effective date of the joint child's coverage under the health plan; and
520.31 	(4) what steps, if any, are required to effectuate the joint child's coverage under the health 
520.32 	plan.
521.1 	(b) If the employer or union offers more than one plan and the national medical support 
521.2 	notice or court order does not specify the plan to be carried, the plan administrator must 
521.3 	notify the parents and the public authority if the public authority provides support 
521.4 	enforcement services. When there is more than one option available under the plan, the 
521.5 	public authority, in consultation with the parent with whom the joint child resides, must 
521.6 	promptly select from available plan options.
521.7 	(c) The plan administrator must provide the parents and public authority, if the public 
521.8 	authority provides support enforcement services, with a notice of the joint child's enrollment, 
521.9 	description of the health care coverage, and any documents necessary to effectuate coverage.
521.10 	(d) The health plan must send copies of all correspondence regarding the private health 
521.11 	care coverage to the parents.
521.12 	(e) An insured joint child's parent's signature is a valid authorization to a health plan for 
521.13 	purposes of processing an insurance reimbursement payment to the medical services provider 
521.14 	or to the parent, if medical services have been prepaid by that parent.
521.15 		Subd. 9.Employer or union liability. (a) An employer or union that willfully fails to 
521.16 	comply with the order or notice is liable for any uninsured medical health-related expenses 
521.17 	incurred by the dependents while the dependents were eligible to be enrolled in the health 
521.18 	plan and for any other premium costs incurred because the employer or union willfully 
521.19 	failed to comply with the order or notice.
521.20 	(b) An employer or union that fails to comply with the order or notice is subject to a 
521.21 	contempt finding, a $250 civil penalty under section 518A.73, and is subject to a civil penalty 
521.22 	of $500 to be paid to the party entitled to reimbursement or the public authority. Penalties 
521.23 	paid to the public authority are designated for child support enforcement services.
521.24 		Subd. 10.Contesting enrollment. (a) A party may contest a joint child's enrollment in 
521.25 	a health plan on the limited grounds that the enrollment is improper due to mistake of fact 
521.26 	or that the enrollment meets the requirements of section 518.145.
521.27 	(b) If the party chooses to contest the enrollment, the party must do so no later than 15 
521.28 	days after the employer notifies the party of the enrollment by doing the following:
521.29 	(1) filing a motion in district court or according to section 484.702 and the expedited 
521.30 	child support process rules if the public authority provides support enforcement services;
521.31 	(2) serving the motion on the other party and public authority if the public authority 
521.32 	provides support enforcement services; and
522.1 	(3) securing a date for the matter to be heard no later than 45 days after the notice of 
522.2 	enrollment.
522.3 	(c) The enrollment must remain in place while the party contests the enrollment.
522.4 		Subd. 11.Disenrollment; continuation of coverage; coverage options. (a) Unless a 
522.5 	court order provides otherwise, a child for whom a party is required to provide private health 
522.6 	care coverage under this section must be covered as a dependent of the party until the child 
522.7 	is emancipated, until further order of the court, or as consistent with the terms of the health 
522.8 	care coverage.
522.9 	(b) The health carrier, employer, or union may not disenroll or eliminate health care 
522.10 	coverage for the child unless:
522.11 	(1) the health carrier, employer, or union is provided satisfactory written evidence that 
522.12 	the court order is no longer in effect;
522.13 	(2) the joint child is or will be enrolled in comparable private health care coverage 
522.14 	through another health plan that will take effect no later than the effective date of the 
522.15 	disenrollment;
522.16 	(3) the employee is no longer eligible for dependent health care coverage; or
522.17 	(4) the required premium has not been paid by or on behalf of the joint child.
522.18 	(c) The health plan must provide 30 days' written notice to the joint child's parents, and 
522.19 	the public authority if the public authority provides support enforcement services, before 
522.20 	the health plan disenrolls or eliminates the joint child's health care coverage.
522.21 	(d) A joint child enrolled in private health care coverage under a qualified medical child 
522.22 	support order, including a national medical support notice, under this section is a dependent 
522.23 	and a qualified beneficiary under the Consolidated Omnibus Budget and Reconciliation Act 
522.24 	of 1985 (COBRA), Public Law 99-272. Upon expiration of the order, the joint child is 
522.25 	entitled to the opportunity to elect continued health care coverage that is available under 
522.26 	the health plan. The employer or union must provide notice to the parties and the public 
522.27 	authority, if it provides support services, within ten days of the termination date.
522.28 	(e) If the public authority provides support enforcement services and a plan administrator 
522.29 	reports to the public authority that there is more than one coverage option available under 
522.30 	the health plan, the public authority, in consultation with the parent with whom the joint 
522.31 	child resides, must promptly select health care coverage from the available options.
523.1 		Subd. 12.Spousal or former spousal coverage. The court must require the parent with 
523.2 	whom the joint child does not reside to provide dependent private health care coverage for 
523.3 	the benefit of the parent with whom the joint child resides if the parent with whom the child 
523.4 	does not reside is ordered to provide dependent private health care coverage for the parties' 
523.5 	joint child and adding the other parent to the health care coverage results in no additional 
523.6 	premium cost.
523.7 		Subd. 13.Disclosure of information. (a) If the public authority provides support 
523.8 	enforcement services, the parties must provide the public authority with the following 
523.9 	information:
523.10 	(1) information relating to dependent health care coverage or public coverage available 
523.11 	for the benefit of the joint child for whom support is sought, including all information 
523.12 	required to be included in a medical support order under this section;
523.13 	(2) verification that application for court-ordered health care coverage was made within 
523.14 	30 days of the court's order; and
523.15 	(3) the reason that a joint child is not enrolled in court-ordered health care coverage, if 
523.16 	a joint child is not enrolled in health care coverage or subsequently loses health care coverage.
523.17 	(b) Upon request from the public authority under section 256.978, an employer, union, 
523.18 	or plan administrator, including an employer subject to the federal Employee Retirement 
523.19 	Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), must 
523.20 	provide the public authority the following information:
523.21 	(1) information relating to dependent private health care coverage available to a party 
523.22 	for the benefit of the joint child for whom support is sought, including all information 
523.23 	required to be included in a medical support order under this section; and
523.24 	(2) information that will enable the public authority to determine whether a health plan 
523.25 	is appropriate for a joint child, including, but not limited to, all available plan options, any 
523.26 	geographic service restrictions, and the location of service providers.
523.27 	(c) The employer, union, or plan administrator must not release information regarding 
523.28 	one party to the other party. The employer, union, or plan administrator must provide both 
523.29 	parties with insurance identification cards and all necessary written information to enable 
523.30 	the parties to utilize the insurance benefits for the covered dependent.
523.31 	(d) The public authority is authorized to release to a party's employer, union, or health 
523.32 	plan information necessary to verify availability of dependent private health care coverage, 
523.33 	or to establish, modify, or enforce medical support.
524.1 	(e) An employee must disclose to an employer if medical support is required to be 
524.2 	withheld under this section and the employer must begin withholding according to the terms 
524.3 	of the order and under section 518A.53. If an employee discloses an obligation to obtain 
524.4 	private health care coverage and health care coverage is available through the employer, 
524.5 	the employer must make all application processes known to the individual and enroll the 
524.6 	employee and dependent in the plan.
524.7 		Subd. 14.Child support enforcement services. The public authority must take necessary 
524.8 	steps to establish, enforce, and modify an order for medical support if the joint child receives 
524.9 	public assistance or a party completes an application for services from the public authority 
524.10 	under section 518A.51.
524.11 		Subd. 15.Enforcement. (a) Remedies available for collecting and enforcing child 
524.12 	support apply to medical support.
524.13 	(b) For the purpose of enforcement, the following are additional support:
524.14 	(1) the costs of individual or group health or hospitalization coverage;
524.15 	(2) dental coverage;
524.16 	(3) medical costs ordered by the court to be paid by either party, including health care 
524.17 	coverage premiums paid by the obligee because of the obligor's failure to obtain health care 
524.18 	coverage as ordered; and
524.19 	(4) liabilities established under this subdivision.
524.20 	(c) A party who fails to carry court-ordered dependent private health care coverage is 
524.21 	liable for the joint child's uninsured medical health-related expenses unless a court order 
524.22 	provides otherwise. A party's failure to carry court-ordered health care coverage, or to 
524.23 	provide other medical support as ordered, is a basis for modification of medical support 
524.24 	under section 518A.39, subdivision 8, unless it meets the presumption in section 518A.39, 
524.25 	subdivision 2.
524.26 	(d) Payments by the health carrier or employer for services rendered to the dependents 
524.27 	that are directed to a party not owed reimbursement must be endorsed over to and forwarded 
524.28 	to the vendor or appropriate party or the public authority. A party retaining insurance 
524.29 	reimbursement not owed to the party is liable for the amount of the reimbursement.
524.30 		Subd. 16.Offset. (a) If a party is the parent with primary physical custody as defined 
524.31 	in section 518A.26, subdivision 17, and is an obligor ordered to contribute to the other 
524.32 	party's cost for carrying health care coverage for the joint child, the other party's child 
524.33 	support and spousal maintenance obligations are subject to an offset under subdivision 5.
525.1 	(b) The public authority, if the public authority provides child support enforcement 
525.2 	services, may remove the offset to a party's child support obligation when:
525.3 	(1) the party's court-ordered private health care coverage for the joint child terminates;
525.4 	(2) the party does not enroll the joint child in other private health care coverage; and
525.5 	(3) a modification motion is not pending.
525.6 	The public authority must provide notice to the parties of the action. If neither party requests 
525.7 	a hearing, the public authority must remove the offset effective the first day of the month 
525.8 	following termination of the joint child's private health care coverage.
525.9 	(c) The public authority, if the public authority provides child support enforcement 
525.10 	services, may resume the offset when the party ordered to provide private health care 
525.11 	coverage for the joint child has resumed the court-ordered private health care coverage or 
525.12 	enrolled the joint child in other private health care coverage. The public authority must 
525.13 	provide notice to the parties of the action. If neither party requests a hearing, the public 
525.14 	authority must resume the offset effective the first day of the month following certification 
525.15 	that private health care coverage is in place for the joint child.
525.16 	(d) A party may contest the public authority's action to remove or resume the offset to 
525.17 	the child support obligation if the party makes a written request for a hearing within 30 days 
525.18 	after receiving written notice. If a party makes a timely request for a hearing, the public 
525.19 	authority must schedule a hearing and send written notice of the hearing to the parties by 
525.20 	mail to the parties' last known addresses at least 14 days before the hearing. The hearing 
525.21 	must be conducted in district court or in the expedited child support process if section 
525.22 	484.702 applies. The district court or child support magistrate must determine whether 
525.23 	removing or resuming the offset is appropriate and, if appropriate, the effective date for the 
525.24 	removal or resumption.
525.25 		Subd. 16a.Suspension or reinstatement of medical support contribution.  (a) If a 
525.26 	party is the parent with primary physical custody, as defined in section 518A.26, subdivision 
525.27 	17, and is ordered to carry private health care coverage for the joint child but fails to carry 
525.28 	the court-ordered private health care coverage, the public authority may suspend the medical 
525.29 	support obligation of the other party if that party has been court-ordered to contribute to the 
525.30 	cost of the private health care coverage carried by the parent with primary physical custody 
525.31 	of the joint child.
526.1 	(b) If the public authority provides child support enforcement services, the public 
526.2 	authority may suspend the other party's medical support contribution toward private health 
526.3 	care coverage when:
526.4 	(1) the party's court-ordered private health care coverage for the joint child terminates;
526.5 	(2) the party does not enroll the joint child in other private health care coverage; and
526.6 	(3) a modification motion is not pending.
526.7 	The public authority must provide notice to the parties of the action. If neither party requests 
526.8 	a hearing, the public authority must remove the medical support contribution effective the 
526.9 	first day of the month following the termination of the joint child's private health care 
526.10 	coverage.
526.11 	(c) If the public authority provides child support enforcement services, the public authority 
526.12 	may reinstate the medical support contribution when the party ordered to provide private 
526.13 	health care coverage for the joint child has resumed the joint child's court-ordered private 
526.14 	health care coverage or has enrolled the joint child in other private health care coverage. 
526.15 	The public authority must provide notice to the parties of the action. If neither party requests 
526.16 	a hearing, the public authority must resume the medical support contribution effective the 
526.17 	first day of the month following certification that the joint child is enrolled in private health 
526.18 	care coverage.
526.19 	(d) A party may contest the public authority's action to suspend or reinstate the medical 
526.20 	support contribution if the party makes a written request for a hearing within 30 days after 
526.21 	receiving written notice. If a party makes a timely request for a hearing, the public authority 
526.22 	must schedule a hearing and send written notice of the hearing to the parties by mail to the 
526.23 	parties' last known addresses at least 14 days before the hearing. The hearing must be 
526.24 	conducted in district court or in the expedited child support process if section 484.702 
526.25 	applies. The district court or child support magistrate must determine whether suspending 
526.26 	or reinstating the medical support contribution is appropriate and, if appropriate, the effective 
526.27 	date of the removal or reinstatement of the medical support contribution.
526.28 		Subd. 17.Collecting unreimbursed or uninsured medical health-related expenses. (a) 
526.29 	This subdivision and subdivision 18 apply when a court order has determined and ordered 
526.30 	the parties' proportionate share and responsibility to contribute to unreimbursed or uninsured 
526.31 	medical health-related expenses.
526.32 	(b) A party requesting reimbursement of unreimbursed or uninsured medical
526.33 	health-related expenses must initiate a request to the other party within two years of the 
527.1 	date that the requesting party incurred the unreimbursed or uninsured medicalhealth-related 
527.2 	expenses. If a court order has been signed ordering the contribution towards toward
527.3 	unreimbursed or uninsured expenses, a two-year limitations provision must be applied to 
527.4 	any requests made on or after January 1, 2007. The provisions of this section apply 
527.5 	retroactively to court orders signed before January 1, 2007. Requests for unreimbursed or 
527.6 	uninsured expenses made on or after January 1, 2007, may include expenses incurred before 
527.7 	January 1, 2007, and on or after January 1, 2005.
527.8 	(c) A requesting party must mail a written notice of intent to collect the unreimbursed 
527.9 	or uninsured medical health-related expenses and a copy of an affidavit of health care 
527.10 	expenses to the other party at the other party's last known address.
527.11 	(d) The written notice must include a statement that the other party has 30 days from 
527.12 	the date the notice was mailed to (1) pay in full; (2) agree to a payment schedule; or (3) file 
527.13 	a motion requesting a hearing to contest the amount due or to set a court-ordered monthly 
527.14 	payment amount. If the public authority provides services, the written notice also must 
527.15 	include a statement that, if the other party does not respond within the 30 days, the requesting 
527.16 	party may submit the amount due to the public authority for collection.
527.17 	(e) The affidavit of health care expenses must itemize and document the joint child's 
527.18 	unreimbursed or uninsured medical health-related expenses and include copies of all bills, 
527.19 	receipts, and insurance company explanations of benefits.
527.20 	(f) If the other party does not respond to the request for reimbursement within 30 days, 
527.21 	the requesting party may commence enforcement against the other party under subdivision 
527.22 	18; file a motion for a court-ordered monthly payment amount under paragraph (i); or notify 
527.23 	the public authority, if the public authority provides services, that the other party has not 
527.24 	responded.
527.25 	(g) The notice to the public authority must include: a copy of the written notice, a copy 
527.26 	of the affidavit of health care expenses, and copies of all bills, receipts, and insurance 
527.27 	company explanations of benefits.
527.28 	(h) If noticed under paragraph (f), the public authority must serve the other party with 
527.29 	a notice of intent to enforce unreimbursed and uninsured medicalhealth-related expenses 
527.30 	and file an affidavit of service by mail with the district court administrator. The notice must 
527.31 	state that the other party has 14 days to (1) pay in full; or (2) file a motion to contest the 
527.32 	amount due or to set a court-ordered monthly payment amount. The notice must also state 
527.33 	that if there is no response within 14 days, the public authority will commence enforcement 
527.34 	of the expenses as arrears under subdivision 18.
528.1 	(i) To contest the amount due or set a court-ordered monthly payment amount, a party 
528.2 	must file a timely motion and schedule a hearing in district court or in the expedited child 
528.3 	support process if section 484.702 applies. The moving party must provide the other party 
528.4 	and the public authority, if the public authority provides services, with written notice at 
528.5 	least 14 days before the hearing by mailing notice of the hearing to the public authority and 
528.6 	to the requesting party at the requesting party's last known address. The moving party must 
528.7 	file the affidavit of health care expenses with the court at least five days before the hearing. 
528.8 	The district court or child support magistrate must determine liability for the expenses and 
528.9 	order that the liable party is subject to enforcement of the expenses as arrears under 
528.10 	subdivision 18 or set a court-ordered monthly payment amount.
528.11 		Subd. 18.Enforcing unreimbursed or uninsured medical health-related expenses 
528.12 	as arrears. (a) Unreimbursed or uninsured medical health-related expenses enforced under 
528.13 	this subdivision are collected as arrears.
528.14 	(b) If the liable party is the parent with primary physical custody as defined in section 
528.15 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
528.16 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
528.17 	or uninsured expenses remain after the deduction, the expenses must be collected as follows:
528.18 	(1) If the requesting party owes a current child support obligation to the liable party, 20 
528.19 	percent of each payment received from the requesting party must be returned to the requesting 
528.20 	party. The total amount returned to the requesting party each month must not exceed 20 
528.21 	percent of the current monthly support obligation.
528.22 	(2) If the requesting party does not owe current child support or arrears, a payment 
528.23 	agreement under section 518A.69 is required. If the liable party fails to enter into or comply 
528.24 	with a payment agreement, the requesting party or the public authority, if the public authority 
528.25 	provides services, may schedule a hearing to set a court-ordered payment. The requesting 
528.26 	party or the public authority must provide the liable party with written notice of the hearing 
528.27 	at least 14 days before the hearing.
528.28 	(c) If the liable party is not the parent with primary physical custody as defined in section 
528.29 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
528.30 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
528.31 	or uninsured expenses remain after the deduction, the expenses must be added and collected 
528.32 	as arrears owed by the liable party.

528.33 	EFFECTIVE DATE. This section is effective January 1, 2025.

529.1 	Sec. 29. Minnesota Statutes 2022, section 518A.42, subdivision 1, is amended to read:
529.2 		Subdivision 1.Ability to pay. (a) It is a rebuttable presumption that a child support 
529.3 	order should not exceed the obligor's ability to pay. To determine the amount of child support 
529.4 	the obligor has the ability to pay, the court shall follow the procedure set out in this section.
529.5 	(b) The court shall calculate the obligor's income available for support by subtracting a 
529.6 	monthly self-support reserve equal to 120 percent of the federal poverty guidelines for one 
529.7 	person from the obligor's parental income for determining child support (PICS). If benefits 
529.8 	under section 518A.31 are received by the obligee as a representative payee for a joint child 
529.9 	or are received by the child attending school, based on the other parent's eligibility, the court 
529.10 	shall subtract the amount of benefits from the obligor's PICS before subtracting the 
529.11 	self-support reserve. If the obligor's income available for support calculated under this 
529.12 	paragraph is equal to or greater than the obligor's support obligation calculated under section 
529.13 	518A.34, the court shall order child support under section 518A.34.
529.14 	(c) If the obligor's income available for support calculated under paragraph (b) is more 
529.15 	than the minimum support amount under subdivision 2, but less than the guideline amount 
529.16 	under section 518A.34, then the court shall apply a reduction to the child support obligation 
529.17 	in the following order, until the support order is equal to the obligor's income available for 
529.18 	support:
529.19 	(1) medical support obligation;
529.20 	(2) child care support obligation; and
529.21 	(3) basic support obligation.
529.22 	(d) If the obligor's income available for support calculated under paragraph (b) is equal 
529.23 	to or less than the minimum support amount under subdivision 2 or if the obligor's gross 
529.24 	income is less than 120 percent of the federal poverty guidelines for one person, the minimum 
529.25 	support amount under subdivision 2 applies.

529.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

529.27 	Sec. 30. Minnesota Statutes 2022, section 518A.42, subdivision 3, is amended to read:
529.28 		Subd. 3.Exception. (a) This section does not apply to an obligor who is incarcerated
529.29 	or is a recipient of a general assistance grant, Supplemental Security Income, temporary 
529.30 	assistance for needy families (TANF) grant, or comparable state-funded Minnesota family 
529.31 	investment program (MFIP) benefits.
530.1 	(b) If the court finds the obligor receives no income and completely lacks the ability to 
530.2 	earn income, the minimum basic support amount under this subdivision does not apply.
530.3 	(c) If the obligor's basic support amount is reduced below the minimum basic support 
530.4 	amount due to the application of the parenting expense adjustment, the minimum basic 
530.5 	support amount under this subdivision does not apply and the lesser amount is the guideline 
530.6 	basic support.

530.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

530.8 	Sec. 31. Minnesota Statutes 2022, section 518A.65, is amended to read:
530.9 	518A.65 DRIVER'S LICENSE SUSPENSION.
530.10 	(a) This paragraph is effective July 1, 2023. Upon motion of an obligee, which has been 
530.11 	properly served on the obligor and upon which there has been an opportunity for hearing, 
530.12 	if a court finds that the obligor has been or may be issued a driver's license by the 
530.13 	commissioner of public safety and the obligor is in arrears in court-ordered child support 
530.14 	or maintenance payments, or both, in an amount equal to or greater than three times the 
530.15 	obligor's total monthly support and maintenance payments and is not in compliance with a 
530.16 	written payment agreement pursuant to section 518A.69 that is approved by the court, a 
530.17 	child support magistrate, or the public authority, the court shall may order the commissioner 
530.18 	of public safety to suspend the obligor's driver's license. The court may consider the 
530.19 	circumstances in paragraph (i) to determine whether driver's license suspension is an 
530.20 	appropriate remedy that is likely to induce the payment of child support. The court may 
530.21 	consider whether driver's license suspension would have a direct harmful effect on the 
530.22 	obligor or joint children that would make driver's license suspension an inappropriate remedy. 
530.23 	The public authority may not administratively reinstate a driver's license suspended by the 
530.24 	court unless specifically authorized in the court order. This paragraph expires December 
530.25 	31, 2025.
530.26 	(b) This paragraph is effective January 1, 2026. Upon motion of an obligee, which has 
530.27 	been properly served on the obligor and upon which there has been an opportunity for 
530.28 	hearing, if a court finds that the obligor has a valid driver's license issued by the commissioner 
530.29 	of public safety and the obligor is in arrears in court-ordered child support or maintenance 
530.30 	payments, or both, in an amount equal to or greater than three times the obligor's total 
530.31 	monthly support and maintenance payments and is not in compliance with a written payment 
530.32 	agreement pursuant to section 518A.69 that is approved by the court, a child support 
530.33 	magistrate, or the public authority, the court may order the commissioner of public safety 
530.34 	to suspend the obligor's driver's license. The court may consider the circumstances in 
531.1 	paragraph (i) to determine whether driver's license suspension is an appropriate remedy that 
531.2 	is likely to induce the payment of child support. The court may consider whether driver's 
531.3 	license suspension would have a direct harmful effect on the obligor or joint children that 
531.4 	would make driver's license suspension an inappropriate remedy. The public authority may 
531.5 	not administratively reinstate a driver's license suspended by the court unless specifically 
531.6 	authorized in the court order.
531.7 	(c) The court's order must be stayed for 90 days in order to allow the obligor to execute 
531.8 	a written payment agreement pursuant to section 518A.69. The payment agreement must 
531.9 	be approved by either the court or the public authority responsible for child support 
531.10 	enforcement. If the obligor has not executed or is not in compliance with a written payment 
531.11 	agreement pursuant to section 518A.69 after the 90 days expires, the court's order becomes 
531.12 	effective and the commissioner of public safety shall suspend the obligor's driver's license. 
531.13 	The remedy under this section is in addition to any other enforcement remedy available to 
531.14 	the court. An obligee may not bring a motion under this paragraph within 12 months of a 
531.15 	denial of a previous motion under this paragraph.
531.16 	(b) (d) This paragraph is effective July 1, 2023. If a public authority responsible for child 
531.17 	support enforcement determines that the obligor has been or may be issued a driver's license 
531.18 	by the commissioner of public safety and; the obligor is in arrears in court-ordered child 
531.19 	support or maintenance payments or both in an amount equal to or greater than three times 
531.20 	the obligor's total monthly support and maintenance payments and not in compliance with 
531.21 	a written payment agreement pursuant to section 518A.69 that is approved by the court, a 
531.22 	child support magistrate, or the public authority, the public authority shall direct the 
531.23 	commissioner of public safety to suspend the obligor's driver's license unless exercising 
531.24 	administrative discretion under paragraph (i). The remedy under this section is in addition 
531.25 	to any other enforcement remedy available to the public authority. This paragraph expires 
531.26 	December 31, 2025.
531.27 	(e) This paragraph is effective January 1, 2026. If a public authority responsible for child 
531.28 	support enforcement determines that:
531.29 	(1) the obligor has a valid driver's license issued by the commissioner of public safety;
531.30 	(2) the obligor is in arrears in court-ordered child support or maintenance payments or 
531.31 	both in an amount equal to or greater than three times the obligor's total monthly support 
531.32 	and maintenance payments;
532.1 	(3) the obligor is not in compliance with a written payment agreement pursuant to section 
532.2 	518A.69 that is approved by the court, a child support magistrate, or the public authority; 
532.3 	and
532.4 	(4) the obligor's mailing address is known to the public authority;
532.5 	then the public authority shall direct the commissioner of public safety to suspend the 
532.6 	obligor's driver's license unless exercising administrative discretion under paragraph (i). 
532.7 	The remedy under this section is in addition to any other enforcement remedy available to 
532.8 	the public authority.
532.9 	(c) (f) At least 90 days prior to notifying the commissioner of public safety according 
532.10 	to paragraph (b) (d), the public authority must mail a written notice to the obligor at the 
532.11 	obligor's last known address, that it intends to seek suspension of the obligor's driver's 
532.12 	license and that the obligor must request a hearing within 30 days in order to contest the 
532.13 	suspension. If the obligor makes a written request for a hearing within 30 days of the date 
532.14 	of the notice, a court hearing must be held. Notwithstanding any law to the contrary, the 
532.15 	obligor must be served with 14 days' notice in writing specifying the time and place of the 
532.16 	hearing and the allegations against the obligor. The notice must include information that 
532.17 	apprises the obligor of the requirement to develop a written payment agreement that is 
532.18 	approved by a court, a child support magistrate, or the public authority responsible for child 
532.19 	support enforcement regarding child support, maintenance, and any arrearages in order to 
532.20 	avoid license suspension. The notice may be served personally or by mail. If the public 
532.21 	authority does not receive a request for a hearing within 30 days of the date of the notice, 
532.22 	and the obligor does not execute a written payment agreement pursuant to section 518A.69
532.23 	that is approved by the public authority within 90 days of the date of the notice, the public 
532.24 	authority shall direct the commissioner of public safety to suspend the obligor's driver's 
532.25 	license under paragraph (b) (d).
532.26 	(d) (g) At a hearing requested by the obligor under paragraph (c) (f), and on finding that 
532.27 	the obligor is in arrears in court-ordered child support or maintenance payments or both in 
532.28 	an amount equal to or greater than three times the obligor's total monthly support and 
532.29 	maintenance payments, the district court or child support magistrate shall order the 
532.30 	commissioner of public safety to suspend the obligor's driver's license or operating privileges 
532.31 	unless:
532.32 	(1) the court or child support magistrate determines that the obligor has executed and is 
532.33 	in compliance with a written payment agreement pursuant to section 518A.69 that is approved 
532.34 	by the court, a child support magistrate, or the public authority.; or
533.1 	(2) the court, in its discretion, determines that driver's license suspension is unlikely to 
533.2 	induce payment of child support or would have direct harmful effects on the obligor or joint 
533.3 	child that makes driver's license suspension an inappropriate remedy. The court may consider 
533.4 	the circumstances in paragraph (i) in exercising the court's discretion.
533.5 	(e) (h) An obligor whose driver's license or operating privileges are suspended may:
533.6 	(1) provide proof to the public authority responsible for child support enforcement that 
533.7 	the obligor is in compliance with all written payment agreements pursuant to section 518A.69;
533.8 	(2) bring a motion for reinstatement of the driver's license. At the hearing, if the court 
533.9 	or child support magistrate orders reinstatement of the driver's license, the court or child 
533.10 	support magistrate must establish a written payment agreement pursuant to section 518A.69; 
533.11 	or
533.12 	(3) seek a limited license under section 171.30. A limited license issued to an obligor 
533.13 	under section 171.30 expires 90 days after the date it is issued.
533.14 	Within 15 days of the receipt of that proof or a court order, the public authority shall 
533.15 	inform the commissioner of public safety that the obligor's driver's license or operating 
533.16 	privileges should no longer be suspended.
533.17 	(i) Prior to notifying the commissioner of public safety that an obligor's driver's license 
533.18 	should be suspended or after an obligor's driving privileges have been suspended, the public 
533.19 	authority responsible for child support enforcement may use administrative authority to end 
533.20 	the suspension process or inform the commissioner of public safety that the obligor's driving 
533.21 	privileges should no longer be suspended under any of the following circumstances:
533.22 	(1) the full amount of court-ordered payments have been received for at least one month;
533.23 	(2) an income withholding notice has been sent to an employer or payor of money;
533.24 	(3) payments less than the full court-ordered amount have been received and the 
533.25 	circumstances of the obligor demonstrate the obligor's substantial intent to comply with the 
533.26 	order;
533.27 	(4) the obligor receives public assistance;
533.28 	(5) the case is being reviewed by the public authority for downward modification due 
533.29 	to changes in the obligor's financial circumstances or a party has filed a motion to modify 
533.30 	the child support order;
533.31 	(6) the obligor no longer lives in the state and the child support case is in the process of 
533.32 	interstate enforcement;
534.1 	(7) the obligor is currently incarcerated for one week or more or is receiving in-patient 
534.2 	treatment for physical health, mental health, chemical dependency, or other treatment. This 
534.3 	clause applies for six months after the obligor is no longer incarcerated or receiving in-patient 
534.4 	treatment;
534.5 	(8) the obligor is temporarily or permanently disabled and unable to pay child support;
534.6 	(9) the obligor has presented evidence to the public authority that the obligor needs 
534.7 	driving privileges to maintain or obtain the obligor's employment;
534.8 	(10) the obligor has not had a meaningful opportunity to pay toward arrears; and
534.9 	(11) other circumstances of the obligor indicate that a temporary condition exists for 
534.10 	which suspension of a driver's license for the nonpayment of child support is not appropriate. 
534.11 	When considering whether driver's license suspension is appropriate, the public authority 
534.12 	must assess: (i) whether suspension of the driver's license is likely to induce payment of 
534.13 	child support; and (ii) whether suspension of the driver's license would have direct harmful 
534.14 	effects on the obligor or joint children that make driver's license suspension an inappropriate 
534.15 	remedy.
534.16 	The presence of circumstances in this paragraph does not prevent the public authority from 
534.17 	proceeding with a suspension of a driver's license.
534.18 	(f) (j) In addition to the criteria established under this section for the suspension of an 
534.19 	obligor's driver's license, a court, a child support magistrate, or the public authority may 
534.20 	direct the commissioner of public safety to suspend the license of a party who has failed, 
534.21 	after receiving notice, to comply with a subpoena relating to a paternity or child support 
534.22 	proceeding. Notice to an obligor of intent to suspend must be served by first class mail at 
534.23 	the obligor's last known address. The notice must inform the obligor of the right to request 
534.24 	a hearing. If the obligor makes a written request within ten days of the date of the hearing, 
534.25 	a hearing must be held. At the hearing, the only issues to be considered are mistake of fact 
534.26 	and whether the obligor received the subpoena.
534.27 	(g) (k) The license of an obligor who fails to remain in compliance with an approved 
534.28 	written payment agreement may be suspended. Prior to suspending a license for 
534.29 	noncompliance with an approved written payment agreement, the public authority must 
534.30 	mail to the obligor's last known address a written notice that (1) the public authority intends 
534.31 	to seek suspension of the obligor's driver's license under this paragraph, and (2) the obligor 
534.32 	must request a hearing, within 30 days of the date of the notice, to contest the suspension. 
534.33 	If, within 30 days of the date of the notice, the public authority does not receive a written 
534.34 	request for a hearing and the obligor does not comply with an approved written payment 
535.1 	agreement, the public authority must direct the Department of Public Safety to suspend the 
535.2 	obligor's license under paragraph (b) (d). If the obligor makes a written request for a hearing 
535.3 	within 30 days of the date of the notice, a court hearing must be held. Notwithstanding any 
535.4 	law to the contrary, the obligor must be served with 14 days' notice in writing specifying 
535.5 	the time and place of the hearing and the allegations against the obligor. The notice may be 
535.6 	served personally or by mail at the obligor's last known address. If the obligor appears at 
535.7 	the hearing and the court determines that the obligor has failed to comply with an approved 
535.8 	written payment agreement, the court or public authority shall notify the Department of 
535.9 	Public Safety to suspend the obligor's license under paragraph (b) (d). If the obligor fails 
535.10 	to appear at the hearing, the court or public authority must notify the Department of Public 
535.11 	Safety to suspend the obligor's license under paragraph (b) (d).

535.12 	EFFECTIVE DATE. This section is effective July 1, 2023, unless otherwise specified.

535.13 	Sec. 32. Minnesota Statutes 2022, section 518A.77, is amended to read:
535.14 	518A.77 GUIDELINES REVIEW.
535.15 	(a) No later than 2006 and every four years after that, the Department of Human Services 
535.16 	must conduct a review of the child support guidelines as required under Code of Federal 
535.17 	Regulations, title 45, section 302.56(h).
535.18 	(b) This section expires January 1, 2032.

535.19 	ARTICLE 15
535.20 	MISCELLANEOUS

535.21 	Section 1. Minnesota Statutes 2022, section 256.01, is amended by adding a subdivision 
535.22 	to read:
535.23 		Subd. 43.Grant program reporting. The commissioner must submit a report to the 
535.24 	chairs and ranking minority members of the legislative committees with jurisdiction over 
535.25 	health and human services by December 31, 2023, and by each December 31 thereafter on 
535.26 	the following information:
535.27 	(1) the number of grant programs administered by the commissioner that required a 
535.28 	full-time equivalent staff appropriation or administrative appropriation in order to implement;
535.29 	(2) the total amount of funds appropriated to the commissioner for full-time equivalent 
535.30 	staff or administration for all the grant programs; and
535.31 	(3) for each grant program administered by the commissioner:
536.1 	(i) the amount of funds appropriated to the commissioner for full-time equivalent staff 
536.2 	or administration to administer that particular grant program;
536.3 	(ii) the actual amount of funds that were spent on full-time equivalent staff or 
536.4 	administration to administer that particular grant program; and
536.5 	(iii) if there were funds appropriated that were not spent on full-time equivalent staff or 
536.6 	administration to administer that particular grant program, what the funds were actually 
536.7 	spent on.

536.8 	Sec. 2. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; CHILD 
536.9 	CARE AND DEVELOPMENT BLOCK GRANT ALLOCATIONS.
 536.10 	(a) The commissioner of human services shall allocate $22,000,000 in fiscal year 2024, 
536.11 	$8,000,000 in fiscal year 2025, $8,000,000 in fiscal year 2026, and $8,000,000 in fiscal 
536.12 	year 2027 from the child care and development block grant for the child care assistance 
536.13 	program rates under Minnesota Statutes, section 119B.13.
536.14 	(b) The commissioner of human services shall allocate $7,824,000 in fiscal year 2025, 
536.15 	$8,406,000 in fiscal year 2026, and $8,960,000 in fiscal year 2027 from the child care and 
536.16 	development block grant for the basic sliding fee program under Minnesota Statutes, section 
536.17 	119B.03.
536.18 	(c) The commissioner of human services shall allocate $2,920,000 in fiscal year 2026 
536.19 	and $2,920,000 in fiscal year 2027 from the child care and development block grant for the 
536.20 	child care one-stop shop regional assistance network under Minnesota Statutes, section 
536.21 	119B.19, subdivision 7, clause (9).
536.22 	(d) The commissioner of human services shall allocate $500,000 in fiscal year 2026 and 
536.23 	$500,000 in fiscal year 2027 from the child care and development block grant for the shared 
536.24 	services grants under Minnesota Statutes, section 119B.28.
536.25 	(e) The commissioner of human services shall allocate $300,000 in fiscal year 2026 and 
536.26 	$300,000 in fiscal year 2027 from the child care and development block grant for child care 
536.27 	provider access to technology grants under Minnesota Statutes, section 119B.29.

536.28 	Sec. 3. INFORMATION TECHNOLOGY PROJECTS FOR SERVICE DELIVERY 
536.29 	TRANSFORMATION.
 536.30 		Subdivision 1.Uses of appropriations. Amounts appropriated to the commissioner of 
536.31 	human services for subdivisions 3 to 7 must be expended only to achieve the outcomes 
537.1 	identified in each subdivision. The commissioner must allocate available appropriations to 
537.2 	maximize federal funding and achieve the outcomes specified in subdivisions 3 to 7.
537.3 		Subd. 2.Reports required. (a) The commissioner of human services, in consultation 
537.4 	with the commissioner of information technology services, must submit a report to the chairs 
537.5 	and ranking minority members of the legislative committees with jurisdiction over health 
537.6 	and human services policy and finance by October 1, 2023, that identifies:
537.7 	(1) a schedule of planned completion dates for the projects included in subdivisions 3 
537.8 	to 7;
537.9 	(2) the projected budget amount for each project included in subdivisions 3 to 7; and
537.10 	(3) baseline metrics and other performance indicators against which progress will be 
537.11 	measured so the outcomes identified in subdivisions 3 to 7 are achieved.
537.12 	(b) To the extent practicable, the metrics and performance indicators required under 
537.13 	paragraph (a) must be specific and expressed in easily understood terms, measurable, 
537.14 	achievable, relevant, and time bound. Any changes to the reporting requirements under this 
537.15 	subdivision must be developed in consultation with the commissioner of information 
537.16 	technology services and reported to the chairs and ranking minority members of the 
537.17 	legislative committees with jurisdiction over health and human services policy and finance 
537.18 	in the report submitted under paragraph (c).
537.19 	(c) By October 1, 2024, and each October 1 thereafter, the commissioner must submit 
537.20 	a report to the chairs and ranking minority members of the legislative committees with 
537.21 	jurisdiction over health and human services policy and finance that identifies the actual 
537.22 	amounts expended for each project in subdivisions 3 to 7, including a description of the 
537.23 	types and purposes of expenditures. The report must also describe progress toward achieving 
537.24 	the outcomes for each project based on the baseline metrics and performance indicators 
537.25 	established in the report required under paragraph (a) during the previous fiscal year.
537.26 		Subd. 3.Transforming service delivery. Any amount appropriated for this subdivision 
537.27 	is to advance efforts to develop and maintain a person-centered human services system by 
537.28 	increasing the ease, speed, and simplicity of accessing human services for Minnesotans, 
537.29 	and for county, Tribal, and state human services workers. Outcomes to be achieved include:
537.30 	(1) funding foundational work and persistent cross-functional product teams of business 
537.31 	and technology resources to support ongoing iterative development that:
538.1 	(i) improves the experience of Minnesotans interacting with the human services system, 
538.2 	including reducing the overall time from an application to the determination of eligibility 
538.3 	and receiving of benefits;
538.4 	(ii) improves information technology delivery times and efficiency of software 
538.5 	development by increasing business agility to respond to new or shifting needs; and
538.6 	(iii) improves the experience of county and Tribal human services workers; and
538.7 	(2) developing and hosting dashboards, visualizations, or analytics that can be shared 
538.8 	with external partners and the public to foster data-driven decision making.
538.9 		Subd. 4.Integrated services for children and families. (a) Any amount appropriated 
538.10 	for this subdivision is to stabilize and update legacy information technology systems, 
538.11 	modernize systems, and develop a plan for the future of information technology systems 
538.12 	for the programs that serve children and families. Outcomes to be achieved include:
538.13 	(1) reducing unscheduled downtime on Social Services Information System by at least 
538.14 	50 percent;
538.15 	(2) completing the transition of automated child support systems from mainframe 
538.16 	technology to a web-based environment;
538.17 	(3) making information received regarding an individual's eligibility for benefits easier 
538.18 	to understand; and
538.19 	(4) enhancing the child support participant portal to provide additional options for 
538.20 	uploading and updating information, making payments, exchanging data securely, and 
538.21 	providing other features requested by users of the portal.
538.22 	(b) The commissioner must contract with an independent consultant to perform a thorough 
538.23 	evaluation of the SSIS, which supports the child protection system in Minnesota. The 
538.24 	consultant must make recommendations for improving the current system for usability, 
538.25 	system performance, and federal Comprehensive Child Welfare Information System 
538.26 	compliance and must address technical problems and identify any unnecessary or unduly 
538.27 	burdensome data entry requirements that have contributed to system capacity issues. The 
538.28 	consultant must assist the commissioner with selecting a platform for future development 
538.29 	of an information technology system for child protection.
538.30 	(c) The commissioner of human services must conduct a study and develop 
538.31 	recommendations to streamline and reduce SSIS data entry requirements for child protection 
538.32 	cases. The study must be completed in partnership with local social services agencies and 
538.33 	others, as determined by the commissioner. The study must review all input fields required 
539.1 	on current reporting forms and determine which input fields and information are required 
539.2 	under state or federal law. By June 30, 2024, the commissioner must provide a status report 
539.3 	and an implementation timeline to the chairs and ranking minority members of the legislative 
539.4 	committees with jurisdiction over child protection. The status report must include information 
539.5 	about procedures for soliciting ongoing user input from stakeholders, progress on solicitation 
539.6 	and hiring of a consultant to conduct the system evaluation required under paragraph (a), 
539.7 	and a report on progress and completed efforts to streamline data entry requirements and 
539.8 	improve user experience.
539.9 		Subd. 5.Medicaid Management Information System modernization. Any amount 
539.10 	appropriated for this subdivision is to meet federal compliance requirements and enhance, 
539.11 	modernize, and stabilize the functionality of Minnesota's Medicaid Management Information 
539.12 	System. Outcomes to be achieved include:
539.13 	(1) reducing disruptions and delays in filling prescriptions for medical assistance and 
539.14 	MinnesotaCare enrollees, and improving call center support for pharmacies and enrollees 
539.15 	to ensure prompt resolution of issues;
539.16 	(2) improving the timeliness and accuracy of claims processing and approval of prior 
539.17 	authorization requests; and
539.18 	(3) advancing the exchange of health information between providers and trusted partners 
539.19 	so that enrollee care is timely, coordinated, proactive, and reflects the preferences and culture 
539.20 	of the enrollee and their family.
539.21 		Subd. 6.Provider licensing and reporting hub. Any amount appropriated for this 
539.22 	subdivision is to develop, implement, and support ongoing maintenance and operations of 
539.23 	an integrated human services provider licensing and reporting hub. Outcomes to be achieved 
539.24 	include:
539.25 	(1) creating and maintaining user personas for all provider licensing and reporting hub 
539.26 	users that document the unique requirements for each user;
539.27 	(2) creating an electronic licensing application within the provider licensing and reporting 
539.28 	hub to ensure efficient data collection and analysis; and
539.29 	(3) creating a persistent, cross-functional product team of business and technology 
539.30 	resources to support the ongoing iterative development of the provider licensing and reporting 
539.31 	hub.
539.32 		Subd. 7.Improving the Minnesota Eligibility Technology System functionality. Any 
539.33 	amount appropriated for this subdivision is to meet federal compliance requirements and 
540.1 	for necessary repairs to improve the core functionality of the Minnesota Eligibility 
540.2 	Technology System to improve the speed and accuracy of eligibility determinations and 
540.3 	reduce the administrative burden for state, county, and Tribal workers. Outcomes to be 
540.4 	achieved include:
540.5 	(1) implementing the capability for medical assistance and MinnesotaCare enrollees to 
540.6 	apply, renew, and make changes to their eligibility and select health plans online;
540.7 	(2) reducing manual data entry and other steps taken by county and Tribal eligibility 
540.8 	workers to improve the accuracy and timeliness of eligibility determinations; and
540.9 	(3) completing necessary changes to comply with federal requirements.

540.10 	Sec. 4. OUTCOMES AND EVALUATION CONSULTATION REQUIREMENTS.
 540.11 	For any section in this act that includes program outcomes, evaluation metrics or 
540.12 	requirements, progress indicators, or other related measurements, any commissioner must 
540.13 	consult with the commissioner of management and budget to develop outcomes, metrics or 
540.14 	requirements, indicators, or other related measurements for each section in this act affected 
540.15 	by this section. The commissioner must only implement program outcomes, evaluation 
540.16 	metrics or requirements, progress indicators, or other related measurements that are 
540.17 	determined through and agreed upon during the consultation with the commissioner of 
540.18 	management and budget. The commissioner shall not implement any sections affected by 
540.19 	this section until the consultation with the commissioner of management and budget is 
540.20 	completed. The commissioner must incorporate agreed-upon program outcomes, evaluation 
540.21 	metrics, and progress indicators into grant applications, requests for proposals, and any 
540.22 	reports to the legislature.

540.23 	Sec. 5. FINANCIAL REVIEW OF GRANT AND BUSINESS SUBSIDY 
540.24 	RECIPIENTS.
 540.25 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
540.26 	meanings given.
540.27 	(b) "Grant" means a grant or business subsidy funded by an appropriation in this act.
540.28 	(c) "Grantee" means a business entity as defined in Minnesota Statutes, section 5.001.
540.29 		Subd. 2.Financial information required; determination of ability to perform. Before 
540.30 	an agency awards a competitive, legislatively-named, single source, or sole source grant, 
540.31 	the agency must assess the risk that a grantee cannot or would not perform the required 
540.32 	duties. In making this assessment, the agency must review the following information:
541.1 	(1) the grantee's history of performing duties similar to those required by the grant, 
541.2 	whether the size of the grant requires the grantee to perform services at a significantly 
541.3 	increased scale, and whether the size of the grant will require significant changes to the 
541.4 	operation of the grantee's organization;
541.5 	(2) for a grantee that is a nonprofit organization, the grantee's Form 990 or Form 990-EZ 
541.6 	filed with the Internal Revenue Service in each of the prior three years. If the grantee has 
541.7 	not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the 
541.8 	grantee must demonstrate to the grantor's satisfaction that the grantee is exempt and must 
541.9 	instead submit the grantee's most recent board-reviewed financial statements and 
541.10 	documentation of internal controls;
541.11 	(3) for a for-profit business, three years of federal and state tax returns, current financial 
541.12 	statements, certification that the business is not under bankruptcy proceedings, and disclosure 
541.13 	of any liens on its assets. If a business has not been in business long enough to have three 
541.14 	years of tax returns, the grantee must demonstrate to the grantor's satisfaction that the grantee 
541.15 	has appropriate internal financial controls;
541.16 	(4) evidence of registration and good standing with the secretary of state under Minnesota 
541.17 	Statutes, chapter 317A, or other applicable law;
541.18 	(5) if the grantee's total annual revenue exceeds $750,000, the grantee's most recent 
541.19 	financial audit performed by an independent third party in accordance with generally accepted 
541.20 	accounting principles; and
541.21 	(6) certification, provided by the grantee, that none of its principals have been convicted 
541.22 	of a financial crime.
541.23 		Subd. 3.Additional measures for some grantees. The agency may require additional 
541.24 	information and must provide enhanced oversight for grants that have not previously received 
541.25 	state or federal grants for similar amounts or similar duties and so have not yet demonstrated 
541.26 	the ability to perform the duties required under the grant on the scale required.
541.27 		Subd. 4.Assistance from administration. An agency without adequate resources or 
541.28 	experience to perform obligations under this section may contract with the commissioner 
541.29 	of administration to perform the agency's duties under this section.
541.30 		Subd. 5.Agency authority to not award grant. If an agency determines that there is 
541.31 	an appreciable risk that a grantee receiving a competitive, single source, or sole source grant 
541.32 	cannot or would not perform the required duties under the grant agreement, the agency must 
541.33 	notify the grantee and the commissioner of administration and give the grantee an opportunity 
542.1 	to respond to the agency's concerns. If the grantee does not satisfy the agency's concerns 
542.2 	within 45 days, the agency must not award the grant.
542.3 		Subd. 6.Legislatively-named grantees. If an agency determines that there is an 
542.4 	appreciable risk that a grantee receiving a legislatively-named grant cannot or would not 
542.5 	perform the required duties under the grant agreement, the agency must notify the grantee, 
542.6 	the commissioner of administration, and the chair and ranking minority members of Ways 
542.7 	and Means Committee in the house of representatives, the chairs and ranking minority 
542.8 	members of the Finance Committee in the senate, and the chairs and ranking minority 
542.9 	members of the committees in the house of representatives and the senate with primary 
542.10 	jurisdiction over the bill in which the money for the grant was appropriated. The agency 
542.11 	must give the grantee an opportunity to respond to the agency's concerns. If the grantee 
542.12 	does not satisfy the agency's concerns within 45 days, the agency must delay award of the 
542.13 	grant until adjournment of the next regular or special legislative session.
542.14 		Subd. 7.Subgrants. If a grantee will disburse the money received from the grant to 
542.15 	other organizations to perform duties required under the grant agreement, the agency must 
542.16 	be a party to agreements between the grantee and a subgrantee. Before entering agreements 
542.17 	for subgrants, the agency must perform the financial review required under this section with 
542.18 	respect to the subgrantees.
542.19 		Subd. 8.Effect. The requirements of this section are in addition to other requirements 
542.20 	imposed by law, the commissioner of administration under Minnesota Statutes, sections 
542.21 	16B.97 to 16B.98, or agency grant policy.

542.22 	ARTICLE 16
542.23 	HEALTH CARE AFFORDABILITY AND DELIVERY

542.24 	Section 1. [62J.86] DEFINITIONS.
542.25 		Subdivision 1.Definitions. For the purposes of sections 62J.86 to 62J.92, the following 
542.26 	terms have the meanings given.
542.27 		Subd. 2.Advisory council. "Advisory council" means the Health Care Affordability 
542.28 	Advisory Council established under section 62J.88.
542.29 		Subd. 3.Board. "Board" means the Health Care Affordability Board established under 
542.30 	section 62J.87.

543.1 	Sec. 2. [62J.87] HEALTH CARE AFFORDABILITY BOARD.
543.2 		Subdivision 1.Membership. (a) The Health Care Affordability Board consists of 13 
543.3 	members, appointed as follows:
543.4 	(1) five members appointed by the governor;
543.5 	(2) two members appointed by the majority leader of the senate;
543.6 	(3) two members appointed by the minority leader of the senate;
543.7 	(4) two members appointed by the speaker of the house; and
543.8 	(5) two members appointed by the minority leader of the house of representatives.
543.9 	(b) All appointed members must have knowledge and demonstrated expertise in one or 
543.10 	more of the following areas: health care finance, health economics, health care management 
543.11 	or administration at a senior level, health care consumer advocacy, representing the health 
543.12 	care workforce as a leader in a labor organization, purchasing health care insurance as a 
543.13 	health benefits administrator, delivery of primary care, health plan company administration, 
543.14 	public or population health, and addressing health disparities and structural inequities.
543.15 	(c) A member may not participate in board proceedings involving an organization, 
543.16 	activity, or transaction in which the member has either a direct or indirect financial interest, 
543.17 	other than as an individual consumer of health services.
543.18 	(d) The Legislative Coordinating Commission shall coordinate appointments under this 
543.19 	subdivision to ensure that board members are appointed by August 1, 2023, and that board 
543.20 	members as a whole meet all of the criteria related to the knowledge and expertise specified 
543.21 	in paragraph (b).
543.22 		Subd. 2.Terms. (a) Board appointees shall serve four-year terms. A board member shall 
543.23 	not serve more than three consecutive terms.
543.24 	(b) A board member may resign at any time by giving written notice to the board.
543.25 		Subd. 3.Chair; other officers. (a) The board shall elect a chair by a majority of the 
543.26 	members. The chair shall serve for two years.
543.27 	(b) The board shall elect a vice-chair and other officers from its membership as it deems 
543.28 	necessary.
543.29 		Subd. 4.Staff; technical assistance; contracting. (a) The board shall hire a full-time 
543.30 	executive director and other staff, who shall serve in the unclassified service. The executive 
544.1 	director must have significant knowledge and expertise in health economics and demonstrated 
544.2 	experience in health policy.
544.3 	(b) The attorney general shall provide legal services to the board.
544.4 	(c) The Health Economics Division within the Department of Health shall provide 
544.5 	technical assistance to the board in analyzing health care trends and costs and in setting 
544.6 	health care spending growth targets.
544.7 	(d) The board may employ or contract for professional and technical assistance, including 
544.8 	actuarial assistance, as the board deems necessary to perform the board's duties.
544.9 		Subd. 5.Access to information. (a) The board may request that a state agency provide 
544.10 	the board with any publicly available information in a usable format as requested by the 
544.11 	board, at no cost to the board.
544.12 	(b) The board may request from a state agency unique or custom data sets, and the agency 
544.13 	may charge the board for providing the data at the same rate the agency would charge any 
544.14 	other public or private entity.
544.15 	(c) Any information provided to the board by a state agency must be de-identified. For 
544.16 	purposes of this subdivision, "de-identification" means the process used to prevent the 
544.17 	identity of a person or business from being connected with the information and ensuring 
544.18 	all identifiable information has been removed.
544.19 	(d) Any data submitted to the board shall retain its original classification under the 
544.20 	Minnesota Data Practices Act in chapter 13.
544.21 		Subd. 6.Compensation. Board members shall not receive compensation but may receive 
544.22 	reimbursement for expenses as authorized under section 15.059, subdivision 3.
544.23 		Subd. 7.Meetings. (a) Meetings of the board are subject to chapter 13D. The board shall 
544.24 	meet publicly at least quarterly. The board may meet in closed session when reviewing 
544.25 	proprietary information as specified in section 62J.71, subdivision 4.
544.26 	(b) The board shall announce each public meeting at least two weeks prior to the 
544.27 	scheduled date of the meeting. Any materials for the meeting shall be made public at least 
544.28 	one week prior to the scheduled date of the meeting.
544.29 	(c) At each public meeting, the board shall provide the opportunity for comments from 
544.30 	the public, including the opportunity for written comments to be submitted to the board 
544.31 	prior to a decision by the board.

545.1 	Sec. 3. [62J.88] HEALTH CARE AFFORDABILITY ADVISORY COUNCIL.
545.2 		Subdivision 1.Establishment. The governor shall appoint a Health Care Affordability 
545.3 	Advisory Council to provide advice to the board on health care costs and access issues and 
545.4 	to represent the views of patients and other stakeholders. Members of the advisory council 
545.5 	shall be appointed based on their knowledge and demonstrated expertise in one or more of 
545.6 	the following areas: health care delivery, ensuring health care access for diverse populations, 
545.7 	public and population health, patient perspectives, health care cost trends and drivers, clinical 
545.8 	and health services research, innovation in health care delivery, and health care benefits 
545.9 	management.
545.10 		Subd. 2.Duties; reports. (a) The council shall provide technical recommendations to 
545.11 	the board on:
545.12 	(1) the identification of economic indicators and other metrics related to the development 
545.13 	and setting of health care spending growth targets;
545.14 	(2) data sources for measuring health care spending; and
545.15 	(3) measurement of the impact of health care spending growth targets on diverse 
545.16 	communities and populations, including but not limited to those communities and populations 
545.17 	adversely affected by health disparities.
545.18 	(b) The council shall report technical recommendations and a summary of its activities 
545.19 	to the board and the chairs and ranking minority members of the legislative committees 
545.20 	with primary jurisdiction over health care policy and finance at least annually, and shall 
545.21 	submit additional reports on its activities and recommendations to the board, as requested 
545.22 	by the board or at the discretion of the council.
545.23 		Subd. 3.Terms. (a) Advisory council members shall serve four-year terms.
545.24 	(b) Removal and vacancies of advisory council members shall be governed by section 
545.25 	15.059.
545.26 		Subd. 4.Compensation. Advisory council members may be compensated according to 
545.27 	section 15.059.
545.28 		Subd. 5.Meetings. The advisory council shall meet at least quarterly. Meetings of the 
545.29 	advisory council are subject to chapter 13D.
545.30 		Subd. 6.Expiration. Notwithstanding section 15.059, the advisory council shall not 
545.31 	expire.

546.1 	Sec. 4. [62J.89] DUTIES OF THE BOARD.
546.2 		Subdivision 1.General. (a) The board shall monitor the administration and reform of 
546.3 	the health care delivery and payment systems in the state. The board shall:
546.4 	(1) set health care spending growth targets for the state, as specified under section 62J.90;
546.5 	(2) enhance the transparency of provider organizations;
546.6 	(3) monitor the adoption and effectiveness of alternative payment methodologies;
546.7 	(4) foster innovative health care delivery and payment models that lower health care 
546.8 	cost growth while improving the quality of patient care;
546.9 	(5) monitor and review the impact of changes within the health care marketplace; and
546.10 	(6) monitor patient access to necessary health care services.
546.11 	(b) The board shall establish goals to reduce health care disparities in racial and ethnic 
546.12 	communities and to ensure access to quality care for persons with disabilities or with chronic 
546.13 	or complex health conditions.
546.14 		Subd. 2.Market trends. The board shall monitor efforts to reform the health care 
546.15 	delivery and payment system in Minnesota to understand emerging trends in the commercial 
546.16 	health insurance market, including large self-insured employers and the state's public health 
546.17 	care programs, in order to identify opportunities for state action to achieve:
546.18 	(1) improved patient experience of care, including quality and satisfaction;
546.19 	(2) improved health of all populations, including a reduction in health disparities; and
546.20 	(3) a reduction in the growth of health care costs.
546.21 		Subd. 3.Recommendations for reform. The board shall make recommendations for 
546.22 	legislative policy, market, or any other reforms to:
546.23 	(1) lower the rate of growth in commercial health care costs and public health care 
546.24 	program spending in the state;
546.25 	(2) positively impact the state's rankings in the areas listed in this subdivision and 
546.26 	subdivision 2; and
546.27 	(3) improve the quality and value of care for all Minnesotans, and for specific populations 
546.28 	adversely affected by health inequities.
546.29 		Subd. 4.Office of Patient Protection. The board shall establish an Office of Patient 
546.30 	Protection, to be operational by January 1, 2025. The office shall assist consumers with 
547.1 	issues related to access and quality of health care, and advise the legislature on ways to 
547.2 	reduce consumer health care spending and improve consumer experiences by reducing 
547.3 	complexity for consumers.

547.4 	Sec. 5. [62J.90] HEALTH CARE SPENDING GROWTH TARGETS.
547.5 		Subdivision 1.Establishment and administration. The board shall establish and 
547.6 	administer the health care spending growth target program to limit health care spending 
547.7 	growth in the state, and shall report regularly to the legislature and the public on progress 
547.8 	toward these targets.
547.9 		Subd. 2.Methodology. (a) The board shall develop a methodology to establish annual 
547.10 	health care spending growth targets and the economic indicators to be used in establishing 
547.11 	the initial and subsequent target levels.
547.12 	(b) The health care spending growth target must:
547.13 	(1) use a clear and operational definition of total state health care spending;
547.14 	(2) promote a predictable and sustainable rate of growth for total health care spending 
547.15 	as measured by an established economic indicator, such as the rate of increase of the state's 
547.16 	economy or of the personal income of residents of this state, or a combination;
547.17 	(3) define the health care markets and the entities to which the targets apply;
547.18 	(4) take into consideration the potential for variability in targets across public and private 
547.19 	payers;
547.20 	(5) account for the health status of patients; and
547.21 	(6) incorporate specific benchmarks related to health equity.
547.22 	(c) In developing, implementing, and evaluating the growth target program, the board 
547.23 	shall:
547.24 	(1) consider the incorporation of quality of care and primary care spending goals;
547.25 	(2) ensure that the program does not place a disproportionate burden on communities 
547.26 	most impacted by health disparities, the providers who primarily serve communities most 
547.27 	impacted by health disparities, or individuals who reside in rural areas or have high health 
547.28 	care needs;
547.29 	(3) explicitly consider payment models that help ensure financial sustainability of rural 
547.30 	health care delivery systems and the ability to provide population health;
548.1 	(4) allow setting growth targets that encourage an individual health care entity to serve 
548.2 	populations with greater health care risks by incorporating:
548.3 	(i) a risk factor adjustment reflecting the health status of the entity's patient mix; and
548.4 	(ii) an equity adjustment accounting for the social determinants of health and other 
548.5 	factors related to health equity for the entity's patient mix;
548.6 	(5) ensure that growth targets:
548.7 	(i) do not constrain the Minnesota health care workforce, including the need to provide 
548.8 	competitive wages and benefits;
548.9 	(ii) do not limit the use of collective bargaining or place a floor or ceiling on health care 
548.10 	workforce compensation; and
548.11 	(iii) promote workforce stability and maintain high-quality health care jobs; and
548.12 	(6) consult with the advisory council and other stakeholders.
548.13 		Subd. 3.Data. The board shall identify data to be used for tracking performance in 
548.14 	meeting the growth target and identify methods of data collection necessary for efficient 
548.15 	implementation by the board. In identifying data and methods, the board shall:
548.16 	(1) consider the availability, timeliness, quality, and usefulness of existing data, including 
548.17 	the data collected under section 62U.04;
548.18 	(2) assess the need for additional investments in data collection, data validation, or data 
548.19 	analysis capacity to support the board in performing its duties; and
548.20 	(3) minimize the reporting burden to the extent possible.
548.21 		Subd. 4.Setting growth targets; related duties. (a) The board, by June 15, 2024, and 
548.22 	by June 15 of each succeeding calendar year through June 15, 2028, shall establish annual 
548.23 	health care spending growth targets for the next calendar year consistent with the 
548.24 	requirements of this section. The board shall set annual health care spending growth targets 
548.25 	for the five-year period from January 1, 2025, through December 31, 2029.
548.26 	(b) The board shall periodically review all components of the health care spending 
548.27 	growth target program methodology, economic indicators, and other factors. The board may 
548.28 	revise the annual spending growth targets after a public hearing, as appropriate. If the board 
548.29 	revises a spending growth target, the board must provide public notice at least 60 days 
548.30 	before the start of the calendar year to which the revised growth target will apply.
549.1 	(c) The board, based on an analysis of drivers of health care spending and evidence from 
549.2 	public testimony, shall evaluate strategies and new policies, including the establishment of 
549.3 	accountability mechanisms, that are able to contribute to meeting growth targets and limiting 
549.4 	health care spending growth without increasing disparities in access to health care.
549.5 		Subd. 5.Hearings. At least annually, the board shall hold public hearings to present 
549.6 	findings from spending growth target monitoring. The board shall also regularly hold public 
549.7 	hearings to take testimony from stakeholders on health care spending growth, setting and 
549.8 	revising health care spending growth targets, the impact of spending growth and growth 
549.9 	targets on health care access and quality, and as needed to perform the duties assigned under 
549.10 	section 62J.89, subdivisions 1, 2, and 3.

549.11 	Sec. 6. [62J.91] NOTICE TO HEALTH CARE ENTITIES.
549.12 		Subdivision 1.Notice. (a) The board shall provide notice to all health care entities that 
549.13 	have been identified by the board as exceeding the spending growth target for any given 
549.14 	year.
549.15 	(b) For purposes of this section, "health care entity" shall be defined by the board during 
549.16 	the development of the health care spending growth methodology. When developing this 
549.17 	methodology, the board shall consider a definition of health care entity that includes clinics, 
549.18 	hospitals, ambulatory surgical centers, physician organizations, accountable care 
549.19 	organizations, integrated provider and plan systems, and other entities defined by the board, 
549.20 	provided that physician organizations with a patient panel of 15,000 or fewer, or which 
549.21 	represent providers who collectively receive less than $25,000,000 in annual net patient 
549.22 	service revenue from health plan companies and other payers, shall be exempt.
549.23 		Subd. 2.Performance improvement plans. (a) The board shall establish and implement 
549.24 	procedures to assist health care entities to improve efficiency and reduce cost growth by 
549.25 	requiring some or all health care entities provided notice under subdivision 1 to file and 
549.26 	implement a performance improvement plan. The board shall provide written notice of this 
549.27 	requirement to health care entities.
549.28 	(b) Within 45 days of receiving a notice of the requirement to file a performance 
549.29 	improvement plan, a health care entity shall:
549.30 	(1) file a performance improvement plan with the board; or
549.31 	(2) file an application with the board to waive the requirement to file a performance 
549.32 	improvement plan or extend the timeline for filing a performance improvement plan.
550.1 	(c) The health care entity may file any documentation or supporting evidence with the 
550.2 	board to support the health care entity's application to waive or extend the timeline to file 
550.3 	a performance improvement plan. The board shall require the health care entity to submit 
550.4 	any other relevant information it deems necessary in considering the waiver or extension 
550.5 	application, provided that this information shall be made public at the discretion of the 
550.6 	board. The board may waive or delay the requirement for a health care entity to file a 
550.7 	performance improvement plan in response to a waiver or extension request in light of all 
550.8 	information received from the health care entity, based on a consideration of the following 
550.9 	factors:
550.10 	(1) the costs, price, and utilization trends of the health care entity over time, and any 
550.11 	demonstrated improvement in reducing per capita medical expenses adjusted by health 
550.12 	status;
550.13 	(2) any ongoing strategies or investments that the health care entity is implementing to 
550.14 	improve future long-term efficiency and reduce cost growth;
550.15 	(3) whether the factors that led to increased costs for the health care entity can reasonably 
550.16 	be considered to be unanticipated and outside of the control of the entity. These factors may 
550.17 	include but shall not be limited to age and other health status adjusted factors and other cost 
550.18 	inputs such as pharmaceutical expenses and medical device expenses;
550.19 	(4) the overall financial condition of the health care entity; and
550.20 	(5) any other factors the board considers relevant. If the board declines to waive or 
550.21 	extend the requirement for the health care entity to file a performance improvement plan, 
550.22 	the board shall provide written notice to the health care entity that its application for a waiver 
550.23 	or extension was denied and the health care entity shall file a performance improvement 
550.24 	plan.
550.25 	(d) A health care entity shall file a performance improvement plan with the board:
550.26 	(1) within 45 days of receipt of an initial notice;
550.27 	(2) if the health care entity has requested a waiver or extension, within 45 days of receipt 
550.28 	of a notice that such waiver or extension has been denied; or
550.29 	(3) if the health care entity is granted an extension, on the date given on the extension.
550.30 	The performance improvement plan shall identify the causes of the entity's cost growth and 
550.31 	shall include but not be limited to specific strategies, adjustments, and action steps the entity 
550.32 	proposes to implement to improve cost performance. The proposed performance improvement 
550.33 	plan shall include specific identifiable and measurable expected outcomes and a timetable 
551.1 	for implementation. The timetable for a performance improvement plan must not exceed 
551.2 	18 months.
551.3 	(e) The board shall approve any performance improvement plan that it determines is 
551.4 	reasonably likely to address the underlying cause of the entity's cost growth and has a 
551.5 	reasonable expectation for successful implementation. If the board determines that the 
551.6 	performance improvement plan is unacceptable or incomplete, the board may provide 
551.7 	consultation on the criteria that have not been met and may allow an additional time period 
551.8 	of up to 30 calendar days for resubmission. Upon approval of the proposed performance 
551.9 	improvement plan, the board shall notify the health care entity to begin immediate 
551.10 	implementation of the performance improvement plan. Public notice shall be provided by 
551.11 	the board on its website, identifying that the health care entity is implementing a performance 
551.12 	improvement plan. All health care entities implementing an approved performance 
551.13 	improvement plan shall be subject to additional reporting requirements and compliance 
551.14 	monitoring, as determined by the board. The board shall provide assistance to the health 
551.15 	care entity in the successful implementation of the performance improvement plan.
551.16 	(f) All health care entities shall in good faith work to implement the performance 
551.17 	improvement plan. At any point during the implementation of the performance improvement 
551.18 	plan, the health care entity may file amendments to the performance improvement plan, 
551.19 	subject to approval of the board. At the conclusion of the timetable established in the 
551.20 	performance improvement plan, the health care entity shall report to the board regarding 
551.21 	the outcome of the performance improvement plan. If the board determines the performance 
551.22 	improvement plan was not implemented successfully, the board shall:
551.23 	(1) extend the implementation timetable of the existing performance improvement plan;
551.24 	(2) approve amendments to the performance improvement plan as proposed by the health 
551.25 	care entity;
551.26 	(3) require the health care entity to submit a new performance improvement plan; or
551.27 	(4) waive or delay the requirement to file any additional performance improvement 
551.28 	plans.
551.29 	Upon the successful completion of the performance improvement plan, the board shall 
551.30 	remove the identity of the health care entity from the board's website. The board may assist 
551.31 	health care entities with implementing the performance improvement plans or otherwise 
551.32 	ensure compliance with this subdivision.
551.33 	(g) If the board determines that a health care entity has:
552.1 	(1) willfully neglected to file a performance improvement plan with the board within 
552.2 	45 days as required;
552.3 	(2) failed to file an acceptable performance improvement plan in good faith with the 
552.4 	board;
552.5 	(3) failed to implement the performance improvement plan in good faith; or
552.6 	(4) knowingly failed to provide information required by this subdivision to the board or 
552.7 	knowingly provided false information, the board may assess a civil penalty to the health 
552.8 	care entity of not more than $500,000. The board may only impose a civil penalty if the 
552.9 	board determines that the health care entity is unlikely to voluntarily comply with all 
552.10 	applicable provisions of this subdivision.

552.11 	Sec. 7. [62J.92] REPORTING REQUIREMENTS.
552.12 		Subdivision 1.General requirement. (a) The board shall present the reports required 
552.13 	by this section to the chairs and ranking members of the legislative committees with primary 
552.14 	jurisdiction over health care finance and policy. The board shall also make these reports 
552.15 	available to the public on the board's website.
552.16 	(b) The board may contract with a third-party vendor for technical assistance in preparing 
552.17 	the reports.
552.18 		Subd. 2.Progress reports. The board shall submit written progress updates about the 
552.19 	development and implementation of the health care spending growth target program by 
552.20 	February 15, 2025, and February 15, 2026. The updates must include reporting on board 
552.21 	membership and activities, program design decisions, planned timelines for implementation 
552.22 	of the program, and the progress of implementation. The reports must include the 
552.23 	methodological details underlying program design decisions.
552.24 		Subd. 3.Health care spending trends. By December 15, 2025, and every December 
552.25 	15 thereafter, the board shall submit a report on health care spending trends and the health 
552.26 	care spending growth target program that includes:
552.27 	(1) spending growth in aggregate and for entities subject to health care spending growth 
552.28 	targets relative to established target levels;
552.29 	(2) findings from analyses of drivers of health care spending growth;
552.30 	(3) estimates of the impact of health care spending growth on Minnesota residents, 
552.31 	including for communities most impacted by health disparities, related to their access to 
552.32 	insurance and care, value of health care, and the ability to pursue other spending priorities;
553.1 	(4) the potential and observed impact of the health care growth targets on the financial 
553.2 	viability of the rural delivery system;
553.3 	(5) changes under consideration for revising the methodology to monitor or set growth 
553.4 	targets;
553.5 	(6) recommendations for initiatives to assist health care entities in meeting health care 
553.6 	spending growth targets, including broader and more transparent adoption of value-based 
553.7 	payment arrangements; and
553.8 	(7) the number of health care entities whose spending growth exceeded growth targets, 
553.9 	information on performance improvement plans and the extent to which the plans were 
553.10 	completed, and any civil penalties imposed on health care entities related to noncompliance 
553.11 	with performance improvement plans and related requirements.

553.12 	Sec. 8. Minnesota Statutes 2022, section 62K.15, is amended to read:
553.13 	62K.15 ANNUAL OPEN ENROLLMENT PERIODS; SPECIAL ENROLLMENT 
553.14 	PERIODS.
553.15 	(a) Health carriers offering individual health plans must limit annual enrollment in the 
553.16 	individual market to the annual open enrollment periods for MNsure. Nothing in this section 
553.17 	limits the application of special or limited open enrollment periods as defined under the 
553.18 	Affordable Care Act.
553.19 	(b) Health carriers offering individual health plans must inform all applicants at the time 
553.20 	of application and enrollees at least annually of the open and special enrollment periods as 
553.21 	defined under the Affordable Care Act.
553.22 	(c) Health carriers offering individual health plans must provide a special enrollment 
553.23 	period for enrollment in the individual market by employees of a small employer that offers 
553.24 	a qualified small employer health reimbursement arrangement in accordance with United 
553.25 	States Code, title 26, section 9831(d). The special enrollment period shall be available only 
553.26 	to employees newly hired by a small employer offering a qualified small employer health 
553.27 	reimbursement arrangement, and to employees employed by the small employer at the time 
553.28 	the small employer initially offers a qualified small employer health reimbursement 
553.29 	arrangement. For employees newly hired by the small employer, the special enrollment 
553.30 	period shall last for 30 days after the employee's first day of employment. For employees 
553.31 	employed by the small employer at the time the small employer initially offers a qualified 
553.32 	small employer health reimbursement arrangement, the special enrollment period shall last 
553.33 	for 30 days after the date the arrangement is initially offered to employees.
554.1 	(d) The commissioner of commerce shall enforce this section.
554.2 	(e) Health carriers offering individual health plans through MNsure must provide a 
554.3 	special enrollment period as required under the easy enrollment health insurance outreach 
554.4 	program under section 62V.13.

554.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
554.6 	31, 2023, and applies to health plans offered, issued, or sold on or after January 1, 2024.

554.7 	Sec. 9. Minnesota Statutes 2022, section 62U.04, subdivision 11, is amended to read:
554.8 		Subd. 11.Restricted uses of the all-payer claims data. (a) Notwithstanding subdivision 
554.9 	4, paragraph (b), and subdivision 5, paragraph (b), the commissioner or the commissioner's 
554.10 	designee shall only use the data submitted under subdivisions 4 and 5 for the following 
554.11 	purposes:
554.12 	(1) to evaluate the performance of the health care home program as authorized under 
554.13 	section 62U.03, subdivision 7;
554.14 	(2) to study, in collaboration with the reducing avoidable readmissions effectively 
554.15 	(RARE) campaign, hospital readmission trends and rates;
554.16 	(3) to analyze variations in health care costs, quality, utilization, and illness burden based 
554.17 	on geographical areas or populations;
554.18 	(4) to evaluate the state innovation model (SIM) testing grant received by the Departments 
554.19 	of Health and Human Services, including the analysis of health care cost, quality, and 
554.20 	utilization baseline and trend information for targeted populations and communities; and
554.21 	(5) to compile one or more public use files of summary data or tables that must:
554.22 	(i) be available to the public for no or minimal cost by March 1, 2016, and available by 
554.23 	web-based electronic data download by June 30, 2019;
554.24 	(ii) not identify individual patients, payers, or providers;
554.25 	(iii) be updated by the commissioner, at least annually, with the most current data 
554.26 	available;
554.27 	(iv) contain clear and conspicuous explanations of the characteristics of the data, such 
554.28 	as the dates of the data contained in the files, the absence of costs of care for uninsured 
554.29 	patients or nonresidents, and other disclaimers that provide appropriate context; and
554.30 	(v) not lead to the collection of additional data elements beyond what is authorized under 
554.31 	this section as of June 30, 2015.; and
555.1 	(6) to provide technical assistance to the Health Care Affordability Board to implement 
555.2 	sections 62J.86 to 62J.92.
555.3 	(b) The commissioner may publish the results of the authorized uses identified in 
555.4 	paragraph (a) so long as the data released publicly do not contain information or descriptions 
555.5 	in which the identity of individual hospitals, clinics, or other providers may be discerned.
555.6 	(c) Nothing in this subdivision shall be construed to prohibit the commissioner from 
555.7 	using the data collected under subdivision 4 to complete the state-based risk adjustment 
555.8 	system assessment due to the legislature on October 1, 2015.
555.9 	(d) The commissioner or the commissioner's designee may use the data submitted under 
555.10 	subdivisions 4 and 5 for the purpose described in paragraph (a), clause (3), until July 1, 
555.11 	2023.
555.12 	(e) The commissioner shall consult with the all-payer claims database work group 
555.13 	established under subdivision 12 regarding the technical considerations necessary to create 
555.14 	the public use files of summary data described in paragraph (a), clause (5).

555.15 	Sec. 10. [62V.12] STATE-FUNDED COST-SHARING REDUCTIONS.
555.16 		Subdivision 1.Establishment. (a) The board must develop and administer a state-funded 
555.17 	cost-sharing reduction program for eligible persons who enroll in a silver level qualified 
555.18 	health plan through MNsure. The board must implement the cost-sharing reduction program 
555.19 	for plan years beginning on or after January 1, 2024.
555.20 	(b) For purposes of this section, an "eligible person" is an individual who meets the 
555.21 	eligibility criteria to receive a cost-sharing reduction under Code of Federal Regulations, 
555.22 	title 45, section 155.305(g).
555.23 		Subd. 2.Reduction in cost-sharing. (a) The cost-sharing reduction program must use 
555.24 	state funds to reduce enrollee cost-sharing by increasing the actuarial value of silver level 
555.25 	health plans for eligible persons beyond the 73 percent value established in Code of Federal 
555.26 	Regulations, title 45, section 156.420(a)(3)(ii), to an actuarial value of 87 percent.
555.27 	(b) Paragraph (a) applies beginning for plan year 2024 for eligible individuals expected 
555.28 	to have a household income above 200 percent of the federal poverty level but that does 
555.29 	not exceed 250 percent of the federal poverty level, for the benefit year for which coverage 
555.30 	is requested.
555.31 	(c) Beginning for plan year 2026, the cost-sharing reduction program applies for eligible 
555.32 	individuals expected to have a household income above 250 percent of the federal poverty 
556.1 	level but that does not exceed 300 percent of the federal poverty level, for the benefit year 
556.2 	for which coverage is requested. Under this paragraph, the cost-sharing reduction program 
556.3 	applies by increasing the actuarial value of silver level health plans for eligible persons to 
556.4 	the 73 percent actuarial value established in Code of Federal Regulations, title 45, section 
556.5 	156.420(a)(3)(ii).
556.6 		Subd. 3.Administration. The board, when administering the program, must:
556.7 	(1) allow eligible persons to enroll in a silver level health plan with a state-funded 
556.8 	cost-sharing reduction;
556.9 	(2) modify the MNsure shopping tool to display the total cost-sharing reduction benefit 
556.10 	available to individuals eligible under this section; and
556.11 	(3) reimburse health carriers on a quarterly basis for the cost to the health plan providing 
556.12 	the state-funded cost-sharing reductions.

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

556.14 	Sec. 11. [62V.13] EASY ENROLLMENT HEALTH INSURANCE OUTREACH 
556.15 	PROGRAM.
556.16 		Subdivision 1.Establishment. The board, in cooperation with the commissioner of 
556.17 	revenue, must establish the easy enrollment health insurance outreach program to:
556.18 	(1) reduce the number of uninsured Minnesotans and increase access to affordable health 
556.19 	insurance coverage;
556.20 	(2) allow the commissioner of revenue to provide return information, at the request of 
556.21 	the taxpayer, to MNsure to provide the taxpayer with information about the potential 
556.22 	eligibility for financial assistance and health insurance enrollment options through MNsure;
556.23 	(3) allow MNsure to estimate taxpayer potential eligibility for financial assistance for 
556.24 	health insurance coverage; and
556.25 	(4) allow MNsure to conduct targeted outreach to assist interested taxpayer households 
556.26 	in applying for and enrolling in affordable health insurance options through MNsure, 
556.27 	including connecting interested taxpayer households with a navigator or broker for free 
556.28 	enrollment assistance.
556.29 		Subd. 2.Screening for eligibility for insurance assistance. Upon receipt of and based 
556.30 	on return information received from the commissioner of revenue under section 270B.14, 
556.31 	subdivision 22, MNsure may make a projected assessment on whether the interested 
557.1 	taxpayer's household may qualify for a financial assistance program for health insurance 
557.2 	coverage.
557.3 		Subd. 3.Outreach letter and special enrollment period. (a) MNsure must provide a 
557.4 	written letter of the projected assessment under subdivision 2 to a taxpayer who indicates 
557.5 	to the commissioner of revenue that the taxpayer is interested in obtaining information on 
557.6 	access to health insurance.
557.7 	(b) MNsure must allow a special enrollment period for taxpayers who receive the outreach 
557.8 	letter in paragraph (a) and are determined eligible to enroll in a qualified health plan through 
557.9 	MNsure. The triggering event for the special enrollment period is the day the outreach letter 
557.10 	under this subdivision is mailed to the taxpayer. An eligible individual, and their dependents, 
557.11 	have 65 days from the triggering event to select a qualifying health plan and coverage for 
557.12 	the qualifying health plan is effective the first day of the month after plan selection.
557.13 	(c) Taxpayers who have a member of the taxpayer's household currently enrolled in a 
557.14 	qualified health plan through MNsure are not eligible for the special enrollment under 
557.15 	paragraph (b).
557.16 	(d) MNsure must provide information about the easy enrollment health insurance outreach 
557.17 	program and the special enrollment period described in this subdivision to the general public.
557.18 		Subd. 4.Appeals. (a) Projected eligibility assessments for financial assistance under 
557.19 	this section are not appealable.
557.20 	(b) Qualification for the special enrollment period under this section is appealable to 
557.21 	MNsure under this chapter and Minnesota Rules, chapter 7700.

557.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
557.23 	31, 2023, and applies to health plans offered, issued, or sold on or after January 1, 2024.

557.24 	Sec. 12. Minnesota Statutes 2022, section 256.962, subdivision 5, is amended to read:
557.25 		Subd. 5.Incentive program. Beginning January 1, 2008, the commissioner shall establish 
557.26 	an incentive program for organizations and licensed insurance producers under chapter 60K 
557.27 	that directly identify and assist potential enrollees in filling out and submitting an application. 
557.28 	For each applicant who is successfully enrolled in MinnesotaCare or medical assistance, 
557.29 	the commissioner, within the available appropriation, shall pay the organization or licensed 
557.30 	insurance producer a $70 $100 application assistance bonus. The organization or licensed 
557.31 	insurance producer may provide an applicant a gift certificate or other incentive upon 
557.32 	enrollment.

558.1 	EFFECTIVE DATE. This section is effective July 1, 2023.

558.2 	Sec. 13. Minnesota Statutes 2022, section 256B.04, is amended by adding a subdivision 
558.3 	to read:
558.4 		Subd. 26.Disenrollment under medical assistance and MinnesotaCare. (a) The 
558.5 	commissioner shall regularly update mailing addresses and other contact information for 
558.6 	medical assistance and MinnesotaCare enrollees in cases of returned mail and nonresponse 
558.7 	using information available through managed care and county-based purchasing plans, state 
558.8 	health and human services programs, and other sources.
558.9 	(b) The commissioner shall not disenroll an individual from medical assistance or 
558.10 	MinnesotaCare in cases of returned mail until the commissioner makes at least two attempts 
558.11 	by phone, email, or other methods to contact the individual. The commissioner may disenroll 
558.12 	the individual after providing no less than 30 days for the individual to respond to the most 
558.13 	recent contact attempt.

558.14 	Sec. 14. Minnesota Statutes 2022, section 256B.056, subdivision 7, is amended to read:
558.15 		Subd. 7.Period of eligibility. (a) Eligibility is available for the month of application 
558.16 	and for three months prior to application if the person was eligible in those prior months. 
558.17 	A redetermination of eligibility must occur every 12 months.
558.18 	(b) Notwithstanding any other law to the contrary:
558.19 	(1) a child under 21 years of age who is determined eligible for medical assistance must 
558.20 	remain eligible for a period of 12 months; and
558.21 	(2) a child under six years of age who is determined eligible for medical assistance must 
558.22 	remain eligible through the month in which the child reaches six years of age.
558.23 	(c) A child's eligibility under paragraph (b) may be terminated earlier if:
558.24 	(i) the child or the child's representative requests voluntary termination of eligibility;
558.25 	(ii) the child ceases to be a resident of this state;
558.26 	(iii) the child dies;
558.27 	(iv) the child attains the maximum age; or
558.28 	(v) the agency determines eligibility was erroneously granted at the most recent eligibility 
558.29 	determination due to agency error or fraud, abuse, or perjury attributed to the child or the 
558.30 	child's representative.
559.1 	(b) (d) For a person eligible for an insurance affordability program as defined in section 
559.2 	256B.02, subdivision 19, who reports a change that makes the person eligible for medical 
559.3 	assistance, eligibility is available for the month the change was reported and for three months 
559.4 	prior to the month the change was reported, if the person was eligible in those prior months.

559.5 	EFFECTIVE DATE. This section is effective January 1, 2024, or upon federal approval 
559.6 	and the implementation of required administrative and systems changes, whichever is later. 
559.7 	The commissioner of human services shall notify the revisor of statutes when federal approval 
559.8 	is obtained.

559.9 	Sec. 15. Minnesota Statutes 2022, section 256B.0631, is amended by adding a subdivision 
559.10 	to read:
559.11 		Subd. 1a.Prohibition on cost-sharing and deductibles. The medical assistance benefit 
559.12 	plan must not include cost-sharing or deductibles for any medical assistance recipient or 
559.13 	benefit.

559.14 	EFFECTIVE DATE. This section is effective July 1, 2025, and applies to all medical 
559.15 	assistance benefit plans offered, issued, or renewed on or after that date.

559.16 	Sec. 16. Minnesota Statutes 2022, section 256L.04, subdivision 7a, is amended to read:
559.17 		Subd. 7a.Ineligibility. Adults whose income is greater than the limits established under 
559.18 	this section may not enroll in the MinnesotaCare program, except as provided in subdivision 
559.19 	15.

559.20 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
559.21 	whichever is later, subject to certification under section 32. The commissioner of human 
559.22 	services shall notify the revisor of statutes when federal approval is obtained.

559.23 	Sec. 17. Minnesota Statutes 2022, section 256L.04, subdivision 10, is amended to read:
559.24 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited to 
559.25 	citizens or nationals of the United States and lawfully present noncitizens as defined in 
559.26 	Code of Federal Regulations, title 8, section 103.12. Undocumented noncitizens, with the 
559.27 	exception of children under 19 years of age, are ineligible for MinnesotaCare. For purposes 
559.28 	of this subdivision, an undocumented noncitizen is an individual who resides in the United 
559.29 	States without the approval or acquiescence of the United States Citizenship and Immigration 
559.30 	Services. Families with children who are citizens or nationals of the United States must 
559.31 	cooperate in obtaining satisfactory documentary evidence of citizenship or nationality 
560.1 	according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 
560.2 	109-171.
560.3 	(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and 
560.4 	individuals who are lawfully present and ineligible for medical assistance by reason of 
560.5 	immigration status and who have incomes equal to or less than 200 percent of federal poverty 
560.6 	guidelines.

560.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

560.8 	Sec. 18. Minnesota Statutes 2022, section 256L.04, is amended by adding a subdivision 
560.9 	to read:
560.10 		Subd. 15.Persons eligible for public option. (a) Families and individuals with income 
560.11 	above the maximum income eligibility limit specified in subdivision 1 or 7 but who meet 
560.12 	all other MinnesotaCare eligibility requirements are eligible for MinnesotaCare. All other 
560.13 	provisions of this chapter apply unless otherwise specified.
560.14 	(b) Families and individuals may enroll in MinnesotaCare under this subdivision only 
560.15 	during an annual open enrollment period or special enrollment period, as designated by 
560.16 	MNsure in compliance with Code of Federal Regulations, title 45, parts 155.410 and 155.420.

560.17 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
560.18 	whichever is later, subject to certification under section 32. The commissioner of human 
560.19 	services shall notify the revisor of statutes when federal approval is obtained.

560.20 	Sec. 19. Minnesota Statutes 2022, section 256L.07, subdivision 1, is amended to read:
560.21 		Subdivision 1.General requirements. Individuals enrolled in MinnesotaCare under 
560.22 	section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under section 
560.23 	256L.04, subdivision 7, whose income increases above 200 percent of the federal poverty 
560.24 	guidelines, are no longer eligible for the program and shall must be disenrolled by the 
560.25 	commissioner, unless the individuals continue MinnesotaCare enrollment through the public 
560.26 	option under section 256L.04, subdivision 15. For persons disenrolled under this subdivision, 
560.27 	MinnesotaCare coverage terminates the last day of the calendar month in which the 
560.28 	commissioner sends advance notice according to Code of Federal Regulations, title 42, 
560.29 	section 431.211, that indicates the income of a family or individual exceeds program income 
560.30 	limits.

561.1 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
561.2 	whichever is later, subject to certification under section 32. The commissioner of human 
561.3 	services shall notify the revisor of statutes when federal approval is obtained.

561.4 	Sec. 20. Minnesota Statutes 2022, section 256L.15, subdivision 2, is amended to read:
561.5 		Subd. 2.Sliding fee scale; monthly individual or family income. (a) The commissioner 
561.6 	shall establish a sliding fee scale to determine the percentage of monthly individual or family 
561.7 	income that households at different income levels must pay to obtain coverage through the 
561.8 	MinnesotaCare program. The sliding fee scale must be based on the enrollee's monthly 
561.9 	individual or family income.
561.10 	(b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums according 
561.11 	to the premium scale specified in paragraph (d).
561.12 	(c) (b) Paragraph (b) (a) does not apply to:
561.13 	(1) children 20 years of age or younger; and
561.14 	(2) individuals with household incomes below 35 percent of the federal poverty
561.15 	guidelines.
561.16 	(d) The following premium scale is established for each individual in the household who 
561.17 	is 21 years of age or older and enrolled in MinnesotaCare:

561.18
561.19	Federal Poverty Guideline 
Greater than or Equal to
	Less than
	Individual Premium 
Amount
	
561.20	35%
	55%
	$4
	
561.21	55%
	80%
	$6
	
561.22	80%
	90%
	$8
	
561.23	90%
	100%
	$10
	
561.24	100%
	110%
	$12
	
561.25	110%
	120%
	$14
	
561.26	120%
	130%
	$15
	
561.27	130%
	140%
	$16
	
561.28	140%
	150%
	$25
	
561.29	150%
	160%
	$37
	
561.30	160%
	170%
	$44
	
561.31	170%
	180%
	$52
	
561.32	180%
	190%
	$61
	
561.33	190%
	200%
	$71
	
561.34	200%
		$80
	
562.1 	(e) (c) Beginning January 1, 2021 2024, the commissioner shall continue to charge 
562.2 	premiums in accordance with the simplified premium scale established to comply with the 
562.3 	American Rescue Plan Act of 2021, in effect from January 1, 2021, through December 31, 
562.4 	2025, for families and individuals eligible under section 256L.04, subdivisions 1 and 7. The 
562.5 	commissioner shall adjust the premium scale established under paragraph (d) as needed to 
562.6 	ensure that premiums do not exceed the amount that an individual would have been required 
562.7 	to pay if the individual was enrolled in an applicable benchmark plan in accordance with 
562.8 	the Code of Federal Regulations, title 42, section 600.505 (a)(1).
562.9 	(d) The commissioner shall establish a sliding premium scale for persons eligible through 
562.10 	the public option under section 256L.04, subdivision 15. Beginning January 1, 2027, persons 
562.11 	eligible through the public option shall pay premiums according to this premium scale. 
562.12 	Persons eligible through the public option who are 20 years of age or younger are exempt 
562.13 	from paying premiums.

562.14 	EFFECTIVE DATE. This section is effective January 1, 2024, and certification under 
562.15 	section 32 is not required, except that paragraph (d) is effective January 1, 2027, or upon 
562.16 	federal approval, whichever is later, subject to certification under section 32. The 
562.17 	commissioner of human services shall notify the revisor of statutes when federal approval 
562.18 	is obtained.

562.19 	Sec. 21. Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision 
562.20 	to read:
562.21 		Subd. 22.Disclosure to MNsure board. The commissioner may disclose a return or 
562.22 	return information to the MNsure board if a taxpayer makes the designation under section 
562.23 	290.433 on an income tax return filed with the commissioner. The commissioner must only 
562.24 	disclose data necessary to provide the taxpayer with information about the potential eligibility 
562.25 	for financial assistance and health insurance enrollment options under section 62V.13.

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

562.27 	Sec. 22. [290.433] EASY ENROLLMENT HEALTH INSURANCE OUTREACH 
562.28 	PROGRAM CHECKOFF.
562.29 		Subdivision 1.Taxpayer designation. Any individual who files an income tax return 
562.30 	may designate on their original return a request that the commissioner provide their return 
562.31 	information to the MNsure board for purposes of providing the individual with information 
562.32 	about potential eligibility for financial assistance and health insurance enrollment options 
563.1 	under section 62V.13, to the extent necessary to administer the easy enrollment health 
563.2 	insurance outreach program.
563.3 		Subd. 2.Form. The commissioner shall notify filers of their ability to make the 
563.4 	designation in subdivision 1 on their income tax return.

563.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
563.6 	31, 2023.

563.7 	Sec. 23. DIRECTION TO MNSURE BOARD AND COMMISSIONER.
 563.8 	The MNsure board and the commissioner of the Department of Revenue must develop 
563.9 	and implement systems, policies, and procedures that encourage, facilitate, and streamline 
563.10 	data sharing, projected eligibility assessments, and notice to taxpayers to achieve the purpose 
563.11 	of the easy enrollment health insurance outreach program under Minnesota Statutes, section 
563.12 	62V.13, for operation beginning with tax year 2023.

563.13 	Sec. 24. RECOMMENDATIONS; OFFICE OF PATIENT PROTECTION.
 563.14 	(a) The commissioners of human services, health, and commerce and the MNsure board 
563.15 	shall submit to the health care affordability board and the chairs and ranking minority 
563.16 	members of the legislative committees with primary jurisdiction over health and human 
563.17 	services finance and policy and commerce by January 15, 2024, a report on the organization 
563.18 	and duties of the Office of Patient Protection, to be established under Minnesota Statutes, 
563.19 	section 62J.89, subdivision 4. The report must include recommendations on how the office 
563.20 	shall:
563.21 	(1) coordinate or consolidate within the office existing state agency patient protection 
563.22 	activities, including but not limited to the activities of ombudsman offices and the MNsure 
563.23 	board;
563.24 	(2) enforce standards and procedures under Minnesota Statutes, chapter 62M, for 
563.25 	utilization review organizations;
563.26 	(3) work with private sector and state agency consumer assistance programs to assist 
563.27 	consumers with questions or concerns relating to public programs and private insurance 
563.28 	coverage;
563.29 	(4) establish and implement procedures to assist consumers aggrieved by restrictions on 
563.30 	patient choice, denials of services, and reductions in quality of care resulting from any final 
563.31 	action by a payer or provider; and
564.1 	(5) make health plan company quality of care and patient satisfaction information and 
564.2 	other information collected by the office readily accessible to consumers on the board's 
564.3 	website.
564.4 	(b) The commissioners and the MNsure board shall consult with stakeholders as they 
564.5 	develop the recommendations. The stakeholders consulted must include but are not limited 
564.6 	to organizations and individuals representing: underserved communities; persons with 
564.7 	disabilities; low-income Minnesotans; senior citizens; and public and private sector health 
564.8 	plan enrollees, including persons who purchase coverage through MNsure, health plan 
564.9 	companies, and public and private sector purchasers of health coverage.
564.10 	(c) The commissioners and the MNsure board may contract with a third party to develop 
564.11 	the report and recommendations.

564.12 	Sec. 25. TRANSITION TO MINNESOTACARE PUBLIC OPTION.
 564.13 	(a) The commissioner of human services must continue to administer MinnesotaCare 
564.14 	as a basic health program in accordance with Minnesota Statutes, section 256L.02, 
564.15 	subdivision 5, and must seek federal waivers, approvals, and law changes as required under 
564.16 	section 26.
564.17 	(b) The commissioner must present an implementation plan for the MinnesotaCare public 
564.18 	option under Minnesota Statutes, section 256L.04, subdivision 15, to the chairs and ranking 
564.19 	minority members of the legislative committees with jurisdiction over health care policy 
564.20 	and finance by December 15, 2024. The plan must include:
564.21 	(1) recommendations for any changes to the MinnesotaCare public option necessary to 
564.22 	continue federal basic health program funding or to receive other federal funding;
564.23 	(2) recommendations for ensuring sufficient provider participation in MinnesotaCare;
564.24 	(3) estimates of state costs related to the MinnesotaCare public option;
564.25 	(4) a description of the proposed premium scale for persons eligible through the public 
564.26 	option, including an analysis of the extent to which the proposed premium scale:
564.27 	(i) ensures affordable premiums for persons across the income spectrum enrolled under 
564.28 	the public option; and
564.29 	(ii) avoids premium cliffs for persons transitioning to and enrolled under the public 
564.30 	option; and
565.1 	(5) draft legislation that includes any additional policy and conforming changes necessary 
565.2 	to implement the MinnesotaCare public option and the implementation plan 
565.3 	recommendations.
565.4 	(c) The commissioner shall present to the chairs and ranking minority members of the 
565.5 	legislative committees with jurisdiction over health care policy and finance, by January 15, 
565.6 	2025, a report comparing service delivery and payment system models for delivering services 
565.7 	to MinnesotaCare enrollees eligible under Minnesota Statutes, section 256L.04, subdivisions 
565.8 	1, 7, and 15. The report must compare the current delivery model with at least two alternative 
565.9 	models. The alternative models must include a state-based model in which the state holds 
565.10 	the plan risk as the insurer and may contract with a third-party administrator for claims 
565.11 	processing and plan administration. The alternative models may include but are not limited 
565.12 	to:
565.13 	(1) expanding the use of integrated health partnerships under Minnesota Statutes, section 
565.14 	256B.0755;
565.15 	(2) delivering care under fee-for-service through a primary care case management system; 
565.16 	and
565.17 	(3) continuing to contract with managed care and county-based purchasing plans for 
565.18 	some or all enrollees under modified contracts.
565.19 	(d) The report must also include:
565.20 	(1) a description of how each model would address:
565.21 	(i) racial inequities in the delivery of health care and health care outcomes;
565.22 	(ii) geographic inequities in the delivery of health care;
565.23 	(iii) incentives for preventive care and other best practices; and
565.24 	(iv) reimbursement of providers for high-quality, value-based care at levels sufficient 
565.25 	to sustain or increase enrollee access to care;
565.26 	(2) a comparison of the projected cost of each model; and
565.27 	(3) an implementation timeline for each model that includes the earliest date by which 
565.28 	each model could be implemented if authorized during the 2025 legislative session.

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

566.1 	Sec. 26. REQUEST FOR FEDERAL APPROVAL.
 566.2 	(a) The commissioner of human services must seek all federal waivers, approvals, and 
566.3 	law changes necessary to implement a MinnesotaCare public option and any related changes 
566.4 	to state law, including but not limited to those waivers, approvals, and law changes necessary 
566.5 	to allow the state to:
566.6 	(1) continue receiving federal basic health program payments for basic health 
566.7 	program-eligible MinnesotaCare enrollees and to receive other federal funding for the 
566.8 	MinnesotaCare public option;
566.9 	(2) receive federal payments equal to the value of premium tax credits and cost-sharing 
566.10 	reductions that MinnesotaCare enrollees with household incomes greater than 200 percent 
566.11 	of the federal poverty guidelines would otherwise have received; and
566.12 	(3) receive federal payments equal to the value of emergency medical assistance that 
566.13 	would otherwise have been paid to the state for covered services provided to eligible 
566.14 	enrollees.
566.15 	(b) In implementing this section, the commissioner of human services must contract 
566.16 	with one or more independent entities to conduct an actuarial analysis of the implementation, 
566.17 	administration, and effects of the provisions of a MinnesotaCare public option and any 
566.18 	related changes to state law, including but not limited to benefits, costs, impacts on coverage, 
566.19 	and affordability to the state and eligible enrollees, impacts on the state's individual market, 
566.20 	and compliance with federal law, at a minimum as necessary to obtain any waivers, approvals, 
566.21 	and law changes sought under this section.
566.22 	(c) In implementing this section, the commissioner of human services must consult with 
566.23 	the commissioner of commerce and the Board of Directors of MNsure and may contract 
566.24 	for technical assistance.

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

566.26 	Sec. 27. ANALYSIS OF BENEFITS AND COSTS OF A UNIVERSAL HEALTH 
566.27 	CARE SYSTEM.
 566.28 		Subdivision 1.Definitions. (a) "Total public and private health care spending" means:
566.29 	(1) spending on all medical care including but not limited to dental, vision and hearing, 
566.30 	mental health, chemical dependency treatment, prescription drugs, medical equipment and 
566.31 	supplies, long-term care, and home care, whether paid through premiums, co-pays and 
567.1 	deductibles, other out-of-pocket payments, or other funding from government, employers, 
567.2 	or other sources; and
567.3 	(2) the costs associated with administering, delivering, and paying for the care. The costs 
567.4 	of administering, delivering, and paying for the care includes all expenses by insurers, 
567.5 	providers, employers, individuals, and government to select, negotiate, purchase, and 
567.6 	administer insurance and care including but not limited to coverage for health care, dental, 
567.7 	long-term care, prescription drugs, medical expense portions of workers compensation and 
567.8 	automobile insurance, and the cost of administering and paying for all health care products 
567.9 	and services that are not covered by insurance.
567.10 	(b) "All necessary care" means the full range of services listed in the proposed Minnesota 
567.11 	Health Plan legislation, including medical, dental, vision and hearing, mental health, chemical 
567.12 	dependency treatment, reproductive and sexual health, prescription drugs, medical equipment 
567.13 	and supplies, long-term care, home care, and coordination of care.
567.14 		Subd. 2.Initial assumptions. (a) When calculating administrative savings under the 
567.15 	universal health proposal, the analysts shall recognize that simple, direct payment of medical 
567.16 	services avoids the need for provider networks, eliminates prior authorization requirements, 
567.17 	and eliminates administrative complexity of other payment schemes along with the need 
567.18 	for creating risk adjustment mechanisms, and measuring, tracking, and paying under those 
567.19 	risk adjusted or nonrisk adjusted payment schemes by both providers and payors.
567.20 	(b) The analysts shall assume that, while gross provider payments may be reduced to 
567.21 	reflect reduced administrative costs, net provider income would remain similar to the current 
567.22 	system. However, they shall not assume that payment rate negotiations will track current 
567.23 	Medicaid, Medicare, or market payment rates or a combination of those rates, because 
567.24 	provider compensation, after adjusting for reduced administrative costs, would not be 
567.25 	universally raised or lowered but would be negotiated based on market needs, so provider 
567.26 	compensation might be raised in an underserved area such as mental health but lowered in 
567.27 	other areas.

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

567.29 	Sec. 28. BENEFIT AND COST ANALYSIS OF A UNIVERSAL HEALTH REFORM 
567.30 	PROPOSAL.
 567.31 		Subdivision 1.Contract for analysis of proposal. The commissioner of health shall 
567.32 	contract with one or more independent entities to conduct an analysis of the benefits and 
567.33 	costs of a legislative proposal for a universal health care financing system and a similar 
568.1 	analysis of the current health care financing system to assist the state in comparing the 
568.2 	proposal to the current system. The contract must strive to produce estimates for all elements 
568.3 	in subdivision 3.
568.4 		Subd. 2.Proposal. The commissioner of health, with input from the commissioners of 
568.5 	human services and commerce, shall submit to the contractor for analysis the legislative 
568.6 	proposal known as the Minnesota Health Plan, proposed in 2023 Senate File No. 2740; 
568.7 	House File No. 2798, if enacted, that would offer a universal health care plan designed to 
568.8 	meet a set of principles, including:
568.9 	(1) ensure all Minnesotans are covered;
568.10 	(2) cover all necessary care; and
568.11 	(3) allow patients to choose their doctors, hospitals, and other providers.
568.12 		Subd. 3.Proposal analysis. (a) The analysis must measure the performance of both the 
568.13 	proposed Minnesota Health Plan and the current public and private health care financing 
568.14 	system over a ten-year period to contrast the impact on:
568.15 	(1) coverage: the number of people who are uninsured versus the number of people who 
568.16 	are insured;
568.17 	(2) benefit completeness: adequacy of coverage measured by the completeness of the 
568.18 	coverage and the number of people lacking coverage for key necessary care elements such 
568.19 	as dental, long-term care, medical equipment or supplies, vision and hearing, or other health 
568.20 	services that are not covered, if any. The analysis must take into account the vast variety of 
568.21 	benefit designs in the commercial market and report the extent of coverage in each area;
568.22 	(3) underinsurance: whether people with coverage can afford the care they need or 
568.23 	whether cost prevents them from accessing care. This includes affordability in terms of 
568.24 	premiums, deductibles, and out-of-pocket expenses;
568.25 	(4) system capacity: the timeliness and appropriateness of the care received and whether 
568.26 	people turn to inappropriate care such as emergency rooms because of a lack of proper care 
568.27 	in accordance with clinical guidelines; and
568.28 	(5) health care spending: total public and private health care spending in Minnesota 
568.29 	under the current system versus under the Minnesota Health Plan legislative proposal, 
568.30 	including all spending by individuals, businesses, and government. Where relevant, the 
568.31 	analysis shall be broken out by key necessary care areas, such as medical, dental, and mental 
568.32 	health. The analysis of total health care spending shall examine whether there are savings 
568.33 	or additional costs under the legislative proposal compared to the existing system due to:
569.1 	(i) changes in cost of insurance, billing, underwriting, marketing, evaluation, and other 
569.2 	administrative functions for all entities involved in the health care system, including savings 
569.3 	from global budgeting for hospitals and institutional care instead of billing for individual 
569.4 	services provided;
569.5 	(ii) changed prices on medical services and products, including pharmaceuticals, due to 
569.6 	price negotiations under the proposal;
569.7 	(iii) impact on utilization, health outcomes, and workplace absenteeism due to prevention, 
569.8 	early intervention, and health-promoting activities;
569.9 	(iv) shortages or excess capacity of medical facilities, equipment, and personnel, including 
569.10 	caregivers and staff, under either the current system or the proposal, including capacity of 
569.11 	clinics, hospitals, and other appropriate care sites versus inappropriate emergency room 
569.12 	usage. The analysis shall break down capacity by geographic differences such as rural versus 
569.13 	metro, and disparate access by population group;
569.14 	(v) the impact on state, local, and federal government non-health-care expenditures. 
569.15 	This may include areas such as reduced crime and out-of-home placement costs due to 
569.16 	mental health or chemical dependency coverage. Additional definition may further develop 
569.17 	hypotheses for other impacts that warrant analysis;
569.18 	(vi) job losses or gains within the health care system; specifically, in health care delivery, 
569.19 	health billing, and insurance administration;
569.20 	(vii) job losses or gains elsewhere in the economy under the proposal due to 
569.21 	implementation of the resulting reduction of insurance and administrative burdens on 
569.22 	businesses; and
569.23 	(viii) impact on disparities in health care access and outcomes.
569.24 	(b) The contractor or contractors shall propose an iterative process for designing and 
569.25 	conducting the analysis. Steps shall be reviewed with and approved by the commissioner 
569.26 	of health and lead house and senate authors of the legislative proposal, and shall include 
569.27 	but not be limited to:
569.28 	(1) clarification of the specifics of the proposal. The analysis shall assume that the 
569.29 	provisions in the proposal are not preempted by federal law or that the federal government 
569.30 	gives a waiver to the preemptions;
569.31 	(2) additional data elements needed to accomplish goals of the analysis;
570.1 	(3) assumptions analysts are using in their analysis and the quality of the evidence behind 
570.2 	those assumptions;
570.3 	(4) timing of each stage of the project with agreed upon decision points;
570.4 	(5) approaches to address any services currently provided in the existing health care 
570.5 	system that may not be provided for within the Minnesota Health Plan as proposed; and
570.6 	(6) optional scenarios provided by contractor or contractors with minor alterations in 
570.7 	the proposed plan related to services covered or cost-sharing if those scenarios might be 
570.8 	helpful to the legislature.
570.9 	(c) The commissioner shall issue a final report by January 15, 2026, and may provide 
570.10 	interim reports and status updates to the governor and the chairs and ranking minority 
570.11 	members of the legislative committees with jurisdiction over health and human services 
570.12 	policy and finance aligned with the iterative process defined above.
570.13 	(d) The contractor may offer a modeling tool as deliverable with a line-item cost provided.

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

570.15 	Sec. 29. APPOINTMENTS AND INITIAL MEETING OF THE HEALTH CARE 
570.16 	AFFORDABILITY BOARD.
 570.17 	Appointing authorities must make first appointments to the Health Care Affordability 
570.18 	Board under Minnesota Statutes, section 62J.87, by October 1, 2023. The governor must 
570.19 	designate one member to serve as an acting chair until the council selects a chair at its first 
570.20 	meeting. The acting chair must convene the first meeting by January 1, 2024.

570.21 	Sec. 30. TERMS OF INITIAL APPOINTEES OF THE HEALTH CARE 
570.22 	AFFORDABILITY ADVISORY COUNCIL.
 570.23 	Notwithstanding Minnesota Statutes, section 62J.88, subdivision 3, the initial appointed 
570.24 	members of the Health Care Affordability Advisory Council under Minnesota Statutes, 
570.25 	section 62J.88, shall serve staggered terms of two, three, and four years determined by lot 
570.26 	by the secretary of state.

570.27 	Sec. 31. REPEALER.
 570.28 	Minnesota Statutes 2022, section 256B.0631, subdivisions 1, 2, and 3, are repealed.

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

571.1 	Sec. 32. CONTINGENT EFFECTIVE DATE.
 571.2 	Sections 16, 18, and 19, and the specified portion of section 20, are effective January 1, 
571.3 	2027, or upon federal approval, whichever is later, but only if the commissioner of human 
571.4 	services certifies to the legislature the following:
571.5 	(1) that implementation of those sections will not result in substantial reduction in federal 
571.6 	basic health program funding for MinnesotaCare enrollees with incomes not exceeding 200 
571.7 	percent of the federal poverty guidelines;
571.8 	(2) premiums necessary to operationalize the program are deemed affordable in 
571.9 	accordance with applicable federal law;
571.10 	(3) the actuarial value of benefit does not fall below 94 percent and the benefit set is 
571.11 	equal to or greater than that historically available in MinnesotaCare;
571.12 	(4) the 1332 waiver was approved consistent, or without substantial deviation, from the 
571.13 	implementation plan;
571.14 	(5) the commissioner of commerce certifies that the public option would expand plan 
571.15 	options available for individuals purchasing coverage;
571.16 	(6) the state receives a substantially similar pass-through funding amount from the federal 
571.17 	government that would have otherwise gone to enrollees' advanced premium tax credits;
571.18 	(7) individuals currently served by the MinnesotaCare program are not disproportionately 
571.19 	or substantively negatively impacted in order to make the public option affordable or 
571.20 	implementable; and
571.21 	(8) individuals currently served by the Medical Assistance program are not 
571.22 	disproportionately or substantively negatively impacted in order to make the public option 
571.23 	affordable or implementable.
571.24 	The commissioner of human services shall notify the revisor of statutes when federal approval 
571.25 	is obtained.

571.26 	ARTICLE 17
571.27 	FORECAST ADJUSTMENTS

571.28	Section 1. HUMAN SERVICES FORECAST ADJUSTMENTS.
 	
571.29 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
571.30 	shown in parentheses, are subtracted from the appropriations in Laws 2021, First Special 
571.31 	Session chapter 7, article 15, and Laws 2021, First Special Session chapter 7, article 16, 
571.32 	from the general fund, or any other fund named, to the commissioner of human services for 
572.1 	the purposes specified in this article, to be available for the fiscal year indicated for each 
572.2 	purpose. The figure "2023" used in this article means that the appropriations listed are 
572.3 	available for the fiscal year ending June 30, 2023.

572.4				APPROPRIATIONS
	
572.5				Available for the Year
	
572.6				Ending June 30
	
572.7					2023

572.8
572.9	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

572.10	Subdivision 1.Total Appropriation
 	$
	(1,459,845,000)

572.11	Appropriations by Fund
	
572.12		2023
		
572.13	General
	(1,235,088,000)
		
572.14	Health Care Access
	(203,530,000)
		
572.15	Federal TANF
	(21,227,000)

572.16	Subd. 2.Forecasted Programs
 					
572.17
572.18
572.19
572.20	(a) Minnesota Family 
Investment Program 
(MFIP)/Diversionary Work 
Program (DWP)

572.21	Appropriations by Fund
	
572.22		2023
		
572.23	General
	(99,000)
		
572.24	Federal TANF
	(21,227,000)

572.25	(b) MFIP Child Care Assistance
		(36,957,000)

572.26	(c) General Assistance
		(1,632,000)

572.27	(d) Minnesota Supplemental Aid
		783,000

572.28	(e) Housing Support
		180,000

572.29	(f) Northstar Care for Children
		(18,038,000)

572.30	(g) MinnesotaCare
		(203,530,000)
			
572.31 	This appropriation is from the health care 
572.32 	access fund.

572.33	(h) Medical Assistance
		(1,172,921,000)

572.34	(i) Behavioral Health Fund
		(6,404,000)

573.1 	Sec. 3. EFFECTIVE DATE.
 573.2 	Sections 1 and 2 are effective the day following final enactment.

573.3 	ARTICLE 18
573.4 	APPROPRIATIONS

573.5	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
573.6 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
573.7 	and for the purposes specified in this article. The appropriations are from the general fund, 
573.8 	or another named fund, and are available for the fiscal years indicated for each purpose. 
573.9 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
573.10 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
573.11 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
573.12 	is fiscal years 2024 and 2025.

573.13				APPROPRIATIONS
	
573.14				Available for the Year
	
573.15				Ending June 30
	
573.16					2024
		2025

573.17
573.18	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

573.19	Subdivision 1.Total Appropriation
 	$
	3,937,170,000
	$
	4,182,045,000

573.20	Appropriations by Fund
	
573.21		2024
	2025
	
573.22	General
	2,777,291,000
	2,710,181,000
	
573.23
573.24	State Government 
Special Revenue
	4,901,000
	5,409,000
	
573.25	Health Care Access
	877,862,000
	1,184,598,000
	
573.26	Federal TANF
	276,953,000
	281,694,000
	
573.27	Lottery Prize
	163,000
	163,000
	
573.28 	The amounts that may be spent for each 
573.29 	purpose are specified in the following 
573.30 	subdivisions.

573.31	Subd. 2.TANF Maintenance of Effort
 					
574.1 	(a) Nonfederal expenditures. The 
574.2 	commissioner shall ensure that sufficient 
574.3 	qualified nonfederal expenditures are made 
574.4 	each year to meet the state's maintenance of 
574.5 	effort requirements of the TANF block grant 
574.6 	specified under Code of Federal Regulations, 
574.7 	title 45, section 263.1. In order to meet these 
574.8 	basic TANF maintenance of effort 
574.9 	requirements, the commissioner may report 
574.10 	as TANF maintenance of effort expenditures 
574.11 	only nonfederal money expended for allowable 
574.12 	activities listed in the following clauses:
574.13 	(1) MFIP cash, diversionary work program, 
574.14 	and food assistance benefits under Minnesota 
574.15 	Statutes, chapter 256J;
574.16 	(2) the child care assistance programs under 
574.17 	Minnesota Statutes, sections 119B.03 and 
574.18 	119B.05, and county child care administrative 
574.19 	costs under Minnesota Statutes, section 
574.20 	119B.15;
574.21 	(3) state and county MFIP administrative costs 
574.22 	under Minnesota Statutes, chapters 256J and 
574.23 	256K;
574.24 	(4) state, county, and Tribal MFIP 
574.25 	employment services under Minnesota 
574.26 	Statutes, chapters 256J and 256K;
574.27 	(5) expenditures made on behalf of legal 
574.28 	noncitizen MFIP recipients who qualify for 
574.29 	the MinnesotaCare program under Minnesota 
574.30 	Statutes, chapter 256L;
574.31 	(6) qualifying working family credit 
574.32 	expenditures under Minnesota Statutes, section 
574.33 	290.0671;
575.1 	(7) qualifying Minnesota education credit 
575.2 	expenditures under Minnesota Statutes, section 
575.3 	290.0674; and
575.4 	(8) qualifying Head Start expenditures under 
575.5 	Minnesota Statutes, section 119A.50.
575.6 	(b) Nonfederal expenditures; reporting. For 
575.7 	the activities listed in paragraph (a), clauses 
575.8 	(2) to (8), the commissioner must report only 
575.9 	expenditures that are excluded from the 
575.10 	definition of assistance under Code of Federal 
575.11 	Regulations, title 45, section 260.31.
575.12 	(c) Limitations; exceptions. The 
575.13 	commissioner must not claim an amount of 
575.14 	TANF maintenance of effort in excess of the 
575.15 	75 percent standard in Code of Federal 
575.16 	Regulations, title 45, section 263.1(a)(2), 
575.17 	except:
575.18 	(1) to the extent necessary to meet the 80 
575.19 	percent standard under Code of Federal 
575.20 	Regulations, title 45, section 263.1(a)(1), if it 
575.21 	is determined by the commissioner that the 
575.22 	state will not meet the TANF work 
575.23 	participation target rate for the current year;
575.24 	(2) to provide any additional amounts under 
575.25 	Code of Federal Regulations, title 45, section 
575.26 	264.5, that relate to replacement of TANF 
575.27 	funds due to the operation of TANF penalties; 
575.28 	and
575.29 	(3) to provide any additional amounts that may 
575.30 	contribute to avoiding or reducing TANF work 
575.31 	participation penalties through the operation 
575.32 	of the excess maintenance of effort provisions 
575.33 	of Code of Federal Regulations, title 45, 
575.34 	section 261.43(a)(2).
576.1 	(d) Supplemental expenditures. For the 
576.2 	purposes of paragraph (c), the commissioner 
576.3 	may supplement the maintenance of effort 
576.4 	claim with working family credit expenditures 
576.5 	or other qualified expenditures to the extent 
576.6 	such expenditures are otherwise available after 
576.7 	considering the expenditures allowed in this 
576.8 	subdivision.
576.9 	(e) Reduction of appropriations; exception.
576.10 	The requirement in Minnesota Statutes, section 
576.11 	256.011, subdivision 3, that federal grants or 
576.12 	aids secured or obtained under that subdivision 
576.13 	be used to reduce any direct appropriations 
576.14 	provided by law does not apply if the grants 
576.15 	or aids are federal TANF funds.
576.16 	(f) IT appropriations generally. This 
576.17 	appropriation includes funds for information 
576.18 	technology projects, services, and support. 
576.19 	Notwithstanding Minnesota Statutes, section 
576.20 	16E.0466, funding for information technology 
576.21 	project costs must be incorporated into the 
576.22 	service level agreement and paid to Minnesota 
576.23 	IT Services by the Department of Human 
576.24 	Services under the rates and mechanism 
576.25 	specified in that agreement.
576.26 	(g) Receipts for systems project.
576.27 	Appropriations and federal receipts for 
576.28 	information technology systems projects for 
576.29 	MAXIS, PRISM, MMIS, ISDS, METS, and 
576.30 	SSIS must be deposited in the state systems 
576.31 	account authorized in Minnesota Statutes, 
576.32 	section 256.014. Money appropriated for 
576.33 	information technology projects approved by 
576.34 	the chief information officer funded by the 
576.35 	legislature, and approved by the commissioner 
577.1 	of management and budget may be transferred 
577.2 	from one project to another and from 
577.3 	development to operations as the 
577.4 	commissioner of human services considers 
577.5 	necessary. Any unexpended balance in the 
577.6 	appropriation for these projects does not 
577.7 	cancel and is available for ongoing 
577.8 	development and operations.
577.9 	(h) Federal SNAP education and training 
577.10 	grants. Federal funds available during fiscal 
577.11 	years 2024 and 2025 for Supplemental 
577.12 	Nutrition Assistance Program Education and 
577.13 	Training and SNAP Quality Control 
577.14 	Performance Bonus grants are appropriated 
577.15 	to the commissioner of human services for the 
577.16 	purposes allowable under the terms of the 
577.17 	federal award. This paragraph is effective the 
577.18 	day following final enactment.

577.19	Subd. 3.Central Office; Operations

577.20	Appropriations by Fund
	
577.21	General
	255,556,000
	242,971,000
	
577.22
577.23	State Government 
Special Revenue
	4,776,000
	5,284,000
	
577.24	Health Care Access
	9,347,000
	11,244,000
	
577.25	Federal TANF
	1,090,000
	1,194,000
	
577.26 	(a) Administrative recovery; set-aside. The 
577.27 	commissioner may invoice local entities 
577.28 	through the SWIFT accounting system as an 
577.29 	alternative means to recover the actual cost of 
577.30 	administering the following provisions:
577.31 	(1) the statewide data management system 
577.32 	authorized in Minnesota Statutes, section 
577.33 	125A.744, subdivision 3;
577.34 	(2) repayment of the special revenue 
577.35 	maximization account as provided under 
578.1 	Minnesota Statutes, section 245.495, 
578.2 	paragraph (b);
578.3 	(3) repayment of the special revenue 
578.4 	maximization account as provided under 
578.5 	Minnesota Statutes, section 256B.0625, 
578.6 	subdivision 20, paragraph (k);
578.7 	(4) targeted case management under 
578.8 	Minnesota Statutes, section 256B.0924, 
578.9 	subdivision 6, paragraph (g);
578.10 	(5) residential services for children with severe 
578.11 	emotional disturbance under Minnesota 
578.12 	Statutes, section 256B.0945, subdivision 4, 
578.13 	paragraph (d); and
578.14 	(6) repayment of the special revenue 
578.15 	maximization account as provided under 
578.16 	Minnesota Statutes, section 256F.10, 
578.17 	subdivision 6, paragraph (b).
578.18 	(b) Transforming service delivery.
578.19 	$8,225,000 in fiscal year 2024 and $7,411,000 
578.20 	in fiscal year 2025 are from the general fund 
578.21 	for transforming service delivery projects. The 
578.22 	base for this appropriation is $5,614,000 in 
578.23 	fiscal year 2026 and $5,614,000 in fiscal year 
578.24 	2027.
578.25 	(c) Integrated services for children and 
578.26 	families. $6,691,000 in fiscal year 2024 and 
578.27 	$4,053,000 in fiscal year 2025 are from the 
578.28 	general fund for integrated services for 
578.29 	children and families projects. The base for 
578.30 	this appropriation is $3,246,000 in fiscal year 
578.31 	2026 and $2,082,000 in fiscal year 2027.
578.32 	(d) Medicaid management information 
578.33 	system modernization. $7,636,000 in fiscal 
578.34 	year 2024 is for Medicaid management 
579.1 	information system modernization projects. 
579.2 	This is a onetime appropriation.
579.3 	(e) Provider licensing and reporting hub.
579.4 	$5,986,000 in fiscal year 2024 and $2,834,000 
579.5 	in fiscal year 2025 are from the general fund 
579.6 	for provider licensing and reporting hub 
579.7 	projects. The base for this appropriation is 
579.8 	$2,607,000 in fiscal year 2026 and $2,249,000 
579.9 	in fiscal year 2027.
579.10 	(f) Improving the Minnesota eligibility 
579.11 	technology system functionality. $8,888,000 
579.12 	in fiscal year 2024 is from the general fund 
579.13 	for projects to improve the Minnesota 
579.14 	eligibility technology system functionality. 
579.15 	The base for this appropriation is $384,000 in 
579.16 	fiscal year 2026 and $384,000 in fiscal year 
579.17 	2027.
579.18 	(g) Base level adjustment. The general fund 
579.19 	base is $234,129,000 in fiscal year 2026 and 
579.20 	$233,067,000 in fiscal year 2027. The state 
579.21 	government special revenue base is $4,880,000 
579.22 	in fiscal year 2026 and $4,710,000 in fiscal 
579.23 	year 2027.

579.24	Subd. 4.Central Office; Children and Families

579.25	Appropriations by Fund
	
579.26	General
	38,943,000
	36,803,000
	
579.27	Federal TANF
	2,582,000
	2,582,000
	
579.28 	(a) Quadrennial review of child support 
579.29 	guidelines. $64,000 in fiscal year 2024 and 
579.30 	$32,000 in fiscal year 2025 are from the 
579.31 	general fund for a quadrennial review of child 
579.32 	support guidelines.
579.33 	(b) Transfer. The commissioner must transfer 
579.34 	$64,000 in fiscal year 2024 and $32,000 in 
580.1 	fiscal year 2025 from the general fund to the 
580.2 	special revenue fund to be used for the 
580.3 	quadrennial review of child support guidelines.
580.4 	(c) Recognizing comparable competencies 
580.5 	to achieve comparable compensation task 
580.6 	force. $141,000 in fiscal year 2024 and 
580.7 	$165,000 in fiscal year 2025 are from the 
580.8 	general fund for the Recognizing Comparable 
580.9 	Competencies to Achieve Comparable 
580.10 	Compensation Task Force. This is a onetime 
580.11 	appropriation.
580.12 	(d) Child care and early education 
580.13 	professional wage scale. $637,000 in fiscal 
580.14 	year 2024 and $565,000 in fiscal year 2025 
580.15 	are from the general fund for developing a 
580.16 	wage scale for child care and early education 
580.17 	professionals. This is a onetime appropriation.
580.18 	(e) Cost estimation model for early care and 
580.19 	learning programs. $100,000 in fiscal year 
580.20 	2024 is from the general fund for developing 
580.21 	a cost estimation model for providing early 
580.22 	care and learning.
580.23 	(f) Integrated services for children and 
580.24 	families. $2,259,000 in fiscal year 2024 and 
580.25 	$2,542,000 in fiscal year 2025 are from the 
580.26 	general fund for integrated services for 
580.27 	children and families projects. The base for 
580.28 	this appropriation is $2,002,000 in fiscal year 
580.29 	2026 and $1,830,000 in fiscal year 2027.
580.30 	(g) Base level adjustment. The general fund 
580.31 	base is $35,606,000 in fiscal year 2026 and 
580.32 	$35,470,000 in fiscal year 2027.

580.33	Subd. 5.Central Office; Health Care

581.1	Appropriations by Fund
	
581.2	General
	30,477,000
	32,949,000
	
581.3	Health Care Access
	28,168,000
	28,168,000
	
581.4 	(a) Medical assistance and MinnesotaCare 
581.5 	accessibility improvements. $1,350,000 in 
581.6 	fiscal year 2024 is from the general fund to 
581.7 	improve the accessibility of applications, 
581.8 	forms, and other consumer support resources 
581.9 	and services for medical assistance and 
581.10 	MinnesotaCare enrollees with limited English 
581.11 	proficiency.
581.12 	(b) Palliative care benefit study. $150,000 
581.13 	in fiscal year 2024 is from the general fund 
581.14 	for a study of the fiscal, medical, and social 
581.15 	impacts of implementing a palliative care 
581.16 	benefit in medical assistance and 
581.17 	MinnesotaCare. This is a onetime 
581.18 	appropriation. The commissioner must report 
581.19 	the results of the study to the chairs and 
581.20 	ranking minority members of the legislative 
581.21 	committees with jurisdiction over health care 
581.22 	by January 15, 2024.
581.23 	(c) Transforming service delivery. $155,000 
581.24 	in fiscal year 2024 and $180,000 in fiscal year 
581.25 	2025 are from the general fund for 
581.26 	transforming service delivery projects.
581.27 	(d) Improving the Minnesota eligibility 
581.28 	technology system functionality. $866,000 
581.29 	in fiscal year 2024 and $384,000 in fiscal year 
581.30 	2025 are from the general fund for improving 
581.31 	the Minnesota eligibility technology system 
581.32 	functionality.
581.33 	(e) Base level adjustment. The general fund 
581.34 	base is $42,202,000 in fiscal year 2026 and 
581.35 	$42,527,000 in fiscal year 2027.

582.1
582.2	Subd. 6.Central Office; Aging and Disabilities 
Services

582.3	Appropriations by Fund
	
582.4	General
	39,454,000
	35,416,000
	
582.5
582.6	State Government 
Special Revenue
	125,000
	125,000
	
582.7 	(a) Catholic Charities homeless elders 
582.8 	program. $728,000 in fiscal year 2024 and 
582.9 	$728,000 in fiscal year 2025 are for a grant to 
582.10 	Catholic Charities of St. Paul and Minneapolis 
582.11 	to operate its homeless elders program. This 
582.12 	is a onetime appropriation.
582.13 	(b) Integrated services for children and 
582.14 	families. $143,000 in fiscal year 2024 and 
582.15 	$165,000 in fiscal year 2025 are from the 
582.16 	general fund for integrated services for 
582.17 	children and families projects.
582.18 	(b) Base level adjustment. The general fund 
582.19 	base is $34,688,000 in fiscal year 2026 and 
582.20 	$34,688,000 in fiscal year 2027.

582.21
582.22	Subd. 7.Central Office; Behavioral Health, Deaf 
and Hard of Hearing, and Housing Services

582.23	Appropriations by Fund
	
582.24	General
	25,902,000
	25,095,000
	
582.25	Lottery Prize
	163,000
	163,000
	
582.26 	(a) Homeless management system. $250,000 
582.27 	in fiscal year 2024 and $1,000,000 in fiscal 
582.28 	year 2025 are from the general fund for a 
582.29 	homeless management information system. 
582.30 	The base for this appropriation is $1,140,000 
582.31 	in fiscal year 2026 and $1,140,000 in fiscal 
582.32 	year 2027.
582.33 	(b) Base level adjustment. The general fund 
582.34 	base is $24,484,000 in fiscal year 2026 and 
582.35 	$24,085,000 in fiscal year 2027.

583.1	Subd. 8.Forecasted Programs; MFIP/DWP

583.2	Appropriations by Fund
	
583.3	General
	82,652,000
	91,628,000
	
583.4	Federal TANF
	105,337,000
	109,974,000

583.5
583.6	Subd. 9.Forecasted Programs; MFIP Child Care 
Assistance
 		38,743,000
		143,055,000

583.7
583.8	Subd. 10.Forecasted Programs; General 
Assistance
 		52,026,000
		74,776,000
	
583.9 	Emergency general assistance. The amount 
583.10 	appropriated for emergency general assistance 
583.11 	is limited to no more than $6,729,812 in fiscal 
583.12 	year 2024 and $6,729,812 in fiscal year 2025. 
583.13 	Funds to counties shall be allocated by the 
583.14 	commissioner using the allocation method 
583.15 	under Minnesota Statutes, section 256D.06.

583.16
583.17	Subd. 11.Forecasted Programs; Minnesota 
Supplemental Aid
 		58,548,000
		60,357,000

583.18
583.19	Subd. 12.Forecasted Programs; Housing 
Support
 		211,692,000
		224,231,000

583.20
583.21	Subd. 13.Forecasted Programs; Northstar Care 
for Children
 		113,912,000
		124,546,000

583.22	Subd. 14.Forecasted Programs; MinnesotaCare
 		89,323,000
		57,124,000
	
583.23 	This appropriation is from the health care 
583.24 	access fund.

583.25
583.26	Subd. 15.Forecasted Programs; Medical 
Assistance

583.27	Appropriations by Fund
	
583.28	General
	1,220,215,000
	944,121,000
	
583.29	Health Care Access
	747,559,000
	1,084,597,000
	
583.30 	The health care access fund base is 
583.31 	$878,419,000 in fiscal year 2026 and 
583.32 	$1,197,599,000 in fiscal year 2027.

584.1
584.2	Subd. 16.Forecasted Programs; Alternative 
Care
 		158,000
		460,000

584.3
584.4	Subd. 17.Forecasted Programs; Behavioral 
Health Fund
 		1,344,000
		3,181,000

584.5
584.6	Subd. 18.Grant Programs; Support Services 
Grants

584.7	Appropriations by Fund
	
584.8	General
	8,715,000
	8,715,000
	
584.9	Federal TANF
	96,311,000
	96,311,000

584.10
584.11	Subd. 19.Grant Programs; Basic Sliding Fee 
Child Assistance Care Grants
 		64,203,000
		113,974,000
	
584.12 	The general fund base is $144,560,000 in 
584.13 	fiscal year 2026 and $142,007,000 in fiscal 
584.14 	year 2027.

584.15
584.16	Subd. 20.Grant Programs; Child Care 
Development Grants
 		150,248,000
		156,729,000
	
584.17 	(a) Child care provider retention payments.
584.18 	$101,566,000 in fiscal year 2024 and 
584.19 	$141,598,000 in fiscal year 2025 are for the 
584.20 	child care provider retention program 
584.21 	payments under Minnesota Statutes, section 
584.22 	119B.27. The base for this appropriation is 
584.23 	$144,202,000 in fiscal year 2026 and 
584.24 	$144,202,000 in fiscal year 2027.
584.25 	(b) Transition grant program. $41,895,000 
584.26 	in fiscal year 2024 is for transition grants for 
584.27 	child care providers that intend to participate 
584.28 	in the child care retention program. This is a 
584.29 	onetime appropriation and is available until 
584.30 	June 30, 2025.
584.31 	(c) REETAIN grant program. $1,000,000 
584.32 	in fiscal year 2024 and $1,000,000 in fiscal 
584.33 	year 2025 are for the REETAIN grant program 
584.34 	under Minnesota Statutes, section 119B.195. 
584.35 	The general fund base for this appropriation 
585.1 	is $1,500,000 in fiscal year 2026 and 
585.2 	$1,500,000 in fiscal year 2027.
585.3 	(d) Child care workforce development 
585.4 	grants administration. $1,300,000 in fiscal 
585.5 	year 2025 is for a grant to the statewide child 
585.6 	care resource and referral network to 
585.7 	administer child care workforce development 
585.8 	grants under Minnesota Statutes, section 
585.9 	119B.19, subdivision 7, clause (10).
585.10 	(e) Scholarship program. $695,000 in fiscal 
585.11 	year 2025 is for a scholarship program for 
585.12 	early childhood and school-age educators 
585.13 	under Minnesota Statutes, section 119B.251.
585.14 	(f) Child care one-stop shop. $2,920,000 in 
585.15 	fiscal year 2025 is for a grant to the statewide 
585.16 	child care resource and referral network to 
585.17 	administer the child care one-stop shop 
585.18 	regional assistance network under Minnesota 
585.19 	Statutes, section 119B.19, subdivision 7, 
585.20 	clause (9). The base for this appropriation is 
585.21 	$0 in fiscal year 2026 and $0 in fiscal year 
585.22 	2027.
585.23 	(g) Shared services grants. $500,000 in fiscal 
585.24 	year 2024 and $500,000 in fiscal year 2025 
585.25 	are for shared services grants under Minnesota 
585.26 	Statutes, section 119B.28. The base for this 
585.27 	appropriation is $0 in fiscal year 2026 and $0 
585.28 	in fiscal year 2027.
585.29 	(h) Access to technology grants. $300,000 
585.30 	in fiscal year 2024 and $300,000 in fiscal year 
585.31 	2025 are for child care provider access to 
585.32 	technology grants under Minnesota Statutes, 
585.33 	section 119B.29. The base for this 
586.1 	appropriation is $0 in fiscal year 2026 and $0 
586.2 	in fiscal year 2027.
586.3 	(i) Business training and consultation.
586.4 	$1,250,000 in fiscal year 2024 and $1,500,000 
586.5 	in fiscal year 2025 are for business training 
586.6 	and consultation under Minnesota Statutes, 
586.7 	section 119B.25, subdivision 3, paragraph (a), 
586.8 	clause (6).
586.9 	(j) Early childhood registered 
586.10 	apprenticeship grant program. $2,000,000 
586.11 	in fiscal year 2024 and $2,000,000 in fiscal 
586.12 	year 2025 are for the early childhood 
586.13 	registered apprenticeship grant program under 
586.14 	Minnesota Statutes, section 119B.252.
586.15 	(k) Family, friend, and neighbor grant 
586.16 	program. $3,179,000 in fiscal year 2024 and 
586.17 	$3,179,000 in fiscal year 2025 are for the 
586.18 	family, friend, and neighbor grant program 
586.19 	under Minnesota Statutes, section 119B.196.
586.20 	(l) Base level adjustment. The general fund 
586.21 	base is $156,113,000 in fiscal year 2026 and 
586.22 	$156,113,000 in fiscal year 2027.

586.23
586.24	Subd. 21.Grant Programs; Child Support 
Enforcement Grants
 		50,000
		50,000

586.25
586.26	Subd. 22.Grant Programs; Children's Services 
Grants

586.27	Appropriations by Fund
	
586.28	General
	75,524,000
	85,181,000
	
586.29	Federal TANF
	140,000
	140,000
	
586.30 	(a) Mille Lacs Band of Ojibwe American 
586.31 	Indian child welfare initiative. $3,337,000 
586.32 	in fiscal year 2024 and $5,294,000 in fiscal 
586.33 	year 2025 are from the general fund for the 
586.34 	Mille Lacs Band of Ojibwe to join the 
587.1 	American Indian child welfare initiative. The 
587.2 	base for this appropriation is $7,893,000 in 
587.3 	fiscal year 2026 and $7,893,000 in fiscal year 
587.4 	2027.
587.5 	(b) Grants for kinship navigator services. 
587.6 	$764,000 in fiscal year 2024 and $764,000 in 
587.7 	fiscal year 2025 are from the general fund for 
587.8 	grants for kinship navigator services and 
587.9 	grants to Tribal Nations for kinship navigator 
587.10 	services. The base for this appropriation is 
587.11 	$750,000 in fiscal year 2026 and $750,000 in 
587.12 	fiscal year 2027.
587.13 	(c) Family First Prevention and Early 
587.14 	Intervention assessment response grants. 
587.15 	$6,100,000 in fiscal year 2024 and $9,800,000 
587.16 	in fiscal year 2025 are from the general fund 
587.17 	for family assessment response grants under 
587.18 	Minnesota Statutes, section 260.014.
587.19 	(d) Grants for evidence-based prevention 
587.20 	and early intervention services. $3,000,000 
587.21 	in fiscal year 2024 and $7,000,000 in fiscal 
587.22 	year 2025 are from the general fund for grants 
587.23 	to support evidence-based prevention and early 
587.24 	intervention services under Minnesota 
587.25 	Statutes, section 260.014. The base for this 
587.26 	appropriation is $10,000,000 in fiscal year 
587.27 	2026 and $10,000,000 in fiscal year 2027.
587.28 	(e) Grant to administer pool of qualified 
587.29 	individuals for assessments. $450,000 in 
587.30 	fiscal year 2024 and $450,000 in fiscal year 
587.31 	2025 are from the general fund for grants to 
587.32 	establish and manage a pool of state-funded 
587.33 	qualified individuals to conduct assessments 
587.34 	for out-of-home placement of a child in a 
587.35 	qualified residential treatment program.
588.1 	(f) Grants to counties to reduce foster care 
588.2 	caseloads. $3,000,000 in fiscal year 2024 and 
588.3 	$3,000,000 in fiscal year 2025 are from the 
588.4 	general fund for grants to counties and 
588.5 	American Indian child welfare initiative Tribes 
588.6 	to reduce extended foster care caseload sizes.
588.7 	(g) Quality parenting initiative grant 
588.8 	program. $100,000 in fiscal year 2024 and 
588.9 	$100,000 in fiscal year 2025 are from the 
588.10 	general fund for a grant to Quality Parenting 
588.11 	Initiative Minnesota under Minnesota Statutes, 
588.12 	section 245.0962.
588.13 	(h) Payments to counties to reimburse 
588.14 	revenue loss. $2,000,000 in fiscal year 2024 
588.15 	and $2,000,000 in fiscal year 2025 are for 
588.16 	payments to counties to reimburse the revenue 
588.17 	loss attributable to prohibiting counties, as the 
588.18 	financially responsible agency for a child 
588.19 	placed in foster care, from receiving 
588.20 	Supplemental Security Income on behalf of 
588.21 	the child placed in foster care during the time 
588.22 	the child is in foster care under Minnesota 
588.23 	Statutes, section 256N.26, subdivision 12.
588.24 	(h) Base level adjustment. The general fund 
588.25 	base is $91,001,000 in fiscal year 2026 and 
588.26 	$91,001,000 in fiscal year 2027.

588.27
588.28	Subd. 23.Grant Programs; Children and 
Community Service Grants
 		62,356,000
		62,356,000

588.29
588.30	Subd. 24.Grant Programs; Children and 
Economic Support Grants
 		70,823,000
		74,829,000
	
588.31 	(a) Fraud prevention initiative start-up 
588.32 	grants. $400,000 in fiscal year 2024 is for 
588.33 	start-up grants to the Red Lake Nation, White 
588.34 	Earth Nation, and Mille Lacs Band of Ojibwe 
588.35 	to develop a fraud prevention program. This 
589.1 	is a onetime appropriation and is available 
589.2 	until June 30, 2025.
589.3 	(b) Grants to promote food security among 
589.4 	Tribal Nations and American Indian 
589.5 	communities. $1,851,000 in fiscal year 2024 
589.6 	and $1,851,000 in fiscal year 2025 are for 
589.7 	grants to support food security among Tribal 
589.8 	Nations and American Indian communities 
589.9 	under Minnesota Statutes, section 256E.341.
589.10 	(c) Minnesota food shelf program grants.
589.11 	$2,827,000 in fiscal year 2024 and $2,827,000 
589.12 	in fiscal year 2025 are for the Minnesota food 
589.13 	shelf program under Minnesota Statutes, 
589.14 	section 256E.34.
589.15 	(d) Grant to CornerHouse children's 
589.16 	advocacy center. $315,000 in fiscal year 2024 
589.17 	and $315,000 in fiscal year 2025 are for a 
589.18 	grant to CornerHouse children's advocacy 
589.19 	center. The grant must be used to establish a 
589.20 	child maltreatment prevention program serving 
589.21 	rural, urban, and suburban communities across 
589.22 	the state and to expand response services in 
589.23 	Hennepin and Anoka Counties for children 
589.24 	who have experienced maltreatment. This 
589.25 	paragraph does not expire.
589.26 	(e) Hennepin County homelessness grant 
589.27 	program. $5,095,000 in fiscal year 2025 is 
589.28 	for a grant to Hennepin County under 
589.29 	Minnesota Statutes, section 245.0966. The 
589.30 	base for this appropriation is $10,191,000 in 
589.31 	fiscal year 2026 and $10,191,000 in fiscal year 
589.32 	2027.
589.33 	(f) Diaper distribution grant program. 
589.34 	$500,000 in fiscal year 2024 and $500,000 in 
590.1 	fiscal year 2025 are for the diaper distribution 
590.2 	grant program under Minnesota Statutes, 
590.3 	section 256E.38.
590.4 	(g) Prepared meals food relief. $1,250,000 
590.5 	in fiscal year 2024 and $1,250,000 in fiscal 
590.6 	year 2025 are for prepared meals food relief 
590.7 	grants under Minnesota Statutes, section 
590.8 	256E.341.
590.9 	(h) Family supportive housing. $4,000,000 
590.10 	in fiscal year 2024 and $4,000,000 in fiscal 
590.11 	year 2025 are for the grants under Minnesota 
590.12 	Statutes, section 256K.50.
590.13 	(i) Chosen family grants. $1,939,000 in fiscal 
590.14 	year 2024 is for grants to providers serving 
590.15 	homeless youth and youth at risk of 
590.16 	homelessness in Minnesota to establish or 
590.17 	expand services that formalize situations 
590.18 	where a caring adult whom a youth considers 
590.19 	chosen family allows the youth to stay at the 
590.20 	adult's residence to avoid being homeless. This 
590.21 	is a onetime appropriation and is available 
590.22 	until June 30, 2025.
590.23 	(j) Homeless youth cash stipend pilot 
590.24 	project. $3,000,000 in fiscal year 2024 and 
590.25 	$3,000,000 in fiscal year 2025 are for a grant 
590.26 	to Youthprise for the homeless youth cash 
590.27 	stipend pilot project. The grant must be used 
590.28 	to provide cash stipends to homeless youth, 
590.29 	provide cash incentives for stipend recipients 
590.30 	to participate in periodic surveys, provide 
590.31 	youth-designed optional services, and 
590.32 	complete a legislative report. The general fund 
590.33 	base for this appropriation is $3,000,000 in 
590.34 	fiscal year 2026, $3,000,000 in fiscal year 
590.35 	2027, and $0 in fiscal year 2028 and thereafter.
591.1 	(k) Olmsted County homelessness grant 
591.2 	program. $1,164,000 in fiscal year 2024 and 
591.3 	$1,164,000 in fiscal year 2025 are for a grant 
591.4 	to Olmsted County under Minnesota Statutes, 
591.5 	section 245.0965.
591.6 	(l) Continuum of care grant program. 
591.7 	$6,595,000 in fiscal year 2024 and $6,595,000 
591.8 	in fiscal year 2025 are for a grant to Ramsey 
591.9 	County for the Heading Home Ramsey 
591.10 	Continuum of Care under Minnesota Statutes, 
591.11 	section 245.0963. Of these amounts, ten 
591.12 	percent in fiscal year 2024 and ten percent in 
591.13 	fiscal year 2025 may be used by the grantee 
591.14 	for administrative expenses.
591.15 	(m) Base level adjustment. The general fund 
591.16 	base is $79,925,000 in fiscal year 2026 and 
591.17 	$79,925,000 in fiscal year 2027.

591.18	Subd. 25.Grant Programs; Health Care Grants

591.19	Appropriations by Fund
	
591.20	General
	7,311,000
	7,311,000
	
591.21	Health Care Access
	3,465,000
	3,465,000
	
591.22 	(a) Grant to Indian Health Board of 
591.23 	Minneapolis. $2,500,000 in fiscal year 2024 
591.24 	and $2,500,000 in fiscal year 2025 are from 
591.25 	the general fund for a grant to the Indian 
591.26 	Health Board of Minneapolis to support 
591.27 	continued access to health care coverage 
591.28 	through medical assistance and 
591.29 	MinnesotaCare, improve access to quality 
591.30 	care, and increase vaccination rates among 
591.31 	urban American Indians. The general fund 
591.32 	base for this appropriation is $2,500,000 in 
591.33 	fiscal year 2026 and $0 in fiscal year 2027.
592.1 	(b) Base level adjustment. The general fund 
592.2 	base is $7,311,000 in fiscal year 2026 and 
592.3 	$4,811,000 in fiscal year 2027.

592.4
592.5	Subd. 26.Grant Programs; Housing Support 
Grants
 		18,364,000
		10,364,000

592.6
592.7	Subd. 27.Grant Programs; Adult Mental Health 
Grants
 		108,545,000
		114,407,000
	
592.8 	(a) Mobile crisis grants to Tribal Nations. 
592.9 	$1,000,000 in fiscal year 2024 and $1,000,000 
592.10 	in fiscal year 2025 are for mobile crisis grants 
592.11 	under Minnesota Statutes section 245.4661, 
592.12 	subdivision 9, paragraph (b), clause (15), to 
592.13 	Tribal Nations.
592.14 	(b) Mental health provider supervision 
592.15 	grant program. $1,500,000 in fiscal year 
592.16 	2024 and $1,500,000 in fiscal year 2025 are 
592.17 	for the mental health provider supervision 
592.18 	grant program under Minnesota Statutes, 
592.19 	section 245.4663.
592.20 	(c) Mental health professional scholarship 
592.21 	grant program. $750,000 in fiscal year 2024 
592.22 	and $750,000 in fiscal year 2025 are for the 
592.23 	mental health professional scholarship grant 
592.24 	program under Minnesota Statutes, section 
592.25 	245.4664.
592.26 	(d) Minnesota State University, Mankato 
592.27 	community behavioral health center. 
592.28 	$750,000 in fiscal year 2024 and $750,000 in 
592.29 	fiscal year 2025 are for a grant to the Center 
592.30 	for Rural Behavioral Health at Minnesota State 
592.31 	University, Mankato to establish a community 
592.32 	behavioral health center and training clinic. 
592.33 	The community behavioral health center must 
592.34 	provide comprehensive, culturally specific, 
592.35 	trauma-informed, practice- and 
593.1 	evidence-based, person- and family-centered 
593.2 	mental health and substance use disorder 
593.3 	treatment services in Blue Earth County and 
593.4 	the surrounding region to individuals of all 
593.5 	ages, regardless of an individual's ability to 
593.6 	pay or place of residence. The community 
593.7 	behavioral health center and training clinic 
593.8 	must also provide training and workforce 
593.9 	development opportunities to students enrolled 
593.10 	in the university's training programs in the 
593.11 	fields of social work, counseling and student 
593.12 	personnel, alcohol and drug studies, 
593.13 	psychology, and nursing. Upon request, the 
593.14 	commissioner must make information 
593.15 	regarding the use of this grant funding 
593.16 	available to the chairs and ranking minority 
593.17 	members of the legislative committees with 
593.18 	jurisdiction over behavioral health. This is a 
593.19 	onetime appropriation.
593.20 	(e) Base level adjustment. The general fund 
593.21 	base is $123,797,000 in fiscal year 2026 and 
593.22 	$123,797,000 in fiscal year 2027.

593.23
593.24	Subd. 28.Grant Programs; Child Mental Health 
Grants
 		39,180,000
		35,326,000
	
593.25 	(a) Psychiatric residential treatment facility 
593.26 	start-up grants. $1,000,000 in fiscal year 
593.27 	2024 and $1,000,000 in fiscal year 2025 are 
593.28 	for psychiatric residential treatment facility 
593.29 	start-up grants under Minnesota Statutes, 
593.30 	section 256B.0941, subdivision 5.
593.31 	(b) Psychatric residential treatment 
593.32 	facilities specialization grants. $1,050,000 
593.33 	in fiscal year 2024 and $1,050,000 in fiscal 
593.34 	year 2025 are for psychiatric residential 
593.35 	treatment facilities specialization grants under 
594.1 	Minnesota Statutes, section 256B.0941, 
594.2 	subdivision 5.
594.3 	(c) Emerging mood disorder grants. 
594.4 	$1,250,000 in fiscal year 2024 and $1,250,000 
594.5 	in fiscal year 2025 are for emerging mood 
594.6 	disorder grants under Minnesota Statutes, 
594.7 	section 245.4904, for evidence-informed 
594.8 	interventions for youth and young adults who 
594.9 	are at higher risk of developing a mood 
594.10 	disorder or are already experiencing an 
594.11 	emerging mood disorder.
594.12 	(d) Implementation grants for mobile 
594.13 	response and stabilization services. 
594.14 	$1,000,000 in fiscal year 2024 and $1,000,000 
594.15 	in fiscal year 2025 are for grants to implement 
594.16 	the mobile response and stabilization services 
594.17 	model to promote access to crisis response 
594.18 	services, reduce admissions to psychiatric 
594.19 	hospitals, and reduce out-of-home placement 
594.20 	services.
594.21 	(e) Grants for infant and early childhood 
594.22 	mental health consultations. $1,000,000 in 
594.23 	fiscal year 2024 and $1,000,000 in fiscal year 
594.24 	2025 are for grants under Minnesota Statutes, 
594.25 	section 245.4889, subdivision 1, paragraph 
594.26 	(b), clause (14), for infant and early childhood 
594.27 	mental health consultations throughout the 
594.28 	state, including Tribal Nations for expertise 
594.29 	in young children's development and early 
594.30 	childhood services.
594.31 	(f) African American Child Wellness 
594.32 	Institute. $1,000,000 in fiscal year 2024 and 
594.33 	$1,000,000 in fiscal year 2025 are for a grant 
594.34 	to the African American Child Wellness 
594.35 	Institute to provide culturally specific mental 
595.1 	health and substance use disorder services 
595.2 	under Minnesota Statutes, section 245.0961.
595.3 	(g) Headway Emotional Health Services. 
595.4 	$300,000 in fiscal year 2024 and $300,000 in 
595.5 	fiscal year 2025 are for a grant to Headway 
595.6 	Emotional Health Services for day treatment 
595.7 	transportation costs on nonschool days, student 
595.8 	nutrition, and student learning experiences 
595.9 	such as technology, arts, and outdoor activity. 
595.10 	This is a onetime appropriation.
595.11 	(h) Base level adjustment. The general fund 
595.12 	base is $35,026,000 in fiscal year 2026 and 
595.13 	$35,026,000 in fiscal year 2027.

595.14
595.15	Subd. 29.Grant Programs; Chemical 
Dependency Treatment Support Grants
 		2,350,000
		1,350,000
	
595.16 	Overdose prevention grants. $1,000,000 in 
595.17 	fiscal year 2024 is for a grant to the Steve 
595.18 	Rummler Hope Network for statewide 
595.19 	outreach, education, training, and distribution 
595.20 	of naloxone kits. Of this amount, 50 percent 
595.21 	of the money appropriated must be provided 
595.22 	to the Ka Joog nonprofit organization for 
595.23 	collaborative outreach in East African and 
595.24 	Somali communities in Minnesota. This is a 
595.25 	onetime appropriation and is available until 
595.26 	June 30, 2025.

595.27	Subd. 30.Technical Activities
 		71,493,000
		71,493,000
	
595.28 	This appropriation is from the federal TANF 
595.29 	fund.

595.30	Sec. 3. COMMISSIONER OF HEALTH

595.31	Subdivision 1.Total Appropriation
 	$
	442,138,000
	$
	423,582,000

595.32	Appropriations by Fund
	
595.33		2024
	2025
	
595.34	General
	295,036,000
	269,339,000
	
596.1
596.2	State Government 
Special Revenue
	83,674,000
	86,204,000
	
596.3	Health Care Access
	51,715,000
	56,326,000
	
596.4	Federal TANF
	11,713,000
	11,713,000
	
596.5 	The amounts that may be spent for each 
596.6 	purpose are specified in the following 
596.7 	subdivisions.

596.8	Subd. 2.Health Improvement

596.9	Appropriations by Fund
	
596.10	General
	232,717,000
	206,576,000
	
596.11
596.12	State Government 
Special Revenue
	12,693,000
	12,984,000
	
596.13	Health Care Access
	51,715,000
	56,326,000
	
596.14	Federal TANF
	11,713,000
	11,713,000
	
596.15 	(a) Studies of telehealth expansion and 
596.16 	payment parity. $1,200,000 in fiscal year 
596.17 	2024 is from the general fund for studies of 
596.18 	telehealth expansion and payment parity. This 
596.19 	is a onetime appropriation and is available 
596.20 	until June 30, 2025.
596.21 	(b) Advancing equity through capacity 
596.22 	building and resource allocation grant 
596.23 	program. $500,000 in fiscal year 2024 and 
596.24 	$500,000 in fiscal year 2025 are from the 
596.25 	general fund for grants under Minnesota 
596.26 	Statutes, section 144.9821.
596.27 	(c) Community health workers. $971,000 
596.28 	in fiscal year 2024 and $971,000 in fiscal year 
596.29 	2025 are from the general fund for grants 
596.30 	under Minnesota Statutes, section 144.1462.
596.31 	(d) Community solutions for healthy child 
596.32 	development grants. $3,678,000 in fiscal year 
596.33 	2024 and $3,698,000 in fiscal year 2025 are 
596.34 	from the general fund for grants under 
596.35 	Minnesota Statutes, section 145.9257.
597.1 	(e) Cultural communications program.
597.2 	$1,724,000 in fiscal year 2024 and $1,724,000 
597.3 	in fiscal year 2025 are from the general fund 
597.4 	for the cultural communications program 
597.5 	established in Minnesota Statutes, section 
597.6 	144.0752.
597.7 	(f) Emergency preparedness and response.
597.8 	$16,825,000 in fiscal year 2024 and 
597.9 	$16,662,000 in fiscal year 2025 are from the 
597.10 	general fund for public health emergency 
597.11 	preparedness and response, the sustainability 
597.12 	of the strategic stockpile, and COVID-19 
597.13 	pandemic response transition.
597.14 	(g) Family planning grants. $7,900,000 in 
597.15 	fiscal year 2024 and $7,900,000 in fiscal year 
597.16 	2025 are from the general fund for grants 
597.17 	under Minnesota Statutes, section 145.925.
597.18 	(h) Healthy Beginnings, Healthy Families.
597.19 	$5,250,000 in fiscal year 2024 and $5,250,000 
597.20 	in fiscal year 2025 are from the general fund 
597.21 	for grants under Minnesota Statutes, section 
597.22 	145.9571.
597.23 	(i) Help Me Connect. $463,000 in fiscal year 
597.24 	2024 and $921,000 in fiscal year 2025 are 
597.25 	from the general fund for the Help Me 
597.26 	Connect program under Minnesota Statutes, 
597.27 	section 145.988.
597.28 	(j) Home visiting. $9,250,000 in fiscal year 
597.29 	2024 and $9,250,000 in fiscal year 2025 are 
597.30 	from the general fund to start up or expand 
597.31 	home visiting programs for priority 
597.32 	populations under Minnesota Statutes, section 
597.33 	145.87.
598.1 	(k) No Surprises Act enforcement.
598.2 	$1,210,000 in fiscal year 2024 and $1,090,000 
598.3 	in fiscal year 2025 are from the general fund 
598.4 	for implementation of the federal No Surprises 
598.5 	Act under Minnesota Statutes, section 
598.6 	62Q.021, and a statewide provider directory. 
598.7 	The general fund base for this appropriation 
598.8 	is $855,000 in fiscal year 2026 and $855,000 
598.9 	in fiscal year 2027.
598.10 	(l) Office of African American Health.
598.11 	$1,000,000 in fiscal year 2024 and $1,000,000 
598.12 	in fiscal year 2025 are from the general fund 
598.13 	for grants under the authority of the  Office of 
598.14 	African American Health under Minnesota 
598.15 	Statutes, section 144.0756.
598.16 	(m) Office of American Indian Health.
598.17 	$1,000,000 in fiscal year 2024 and $1,000,000 
598.18 	in fiscal year 2025 are from the general fund 
598.19 	for grants under the authority of the Office of 
598.20 	American Indian Health under Minnesota 
598.21 	Statutes, section 144.0757.
598.22 	(n) Public health system transformation 
598.23 	grants. (1) $9,844,000 in fiscal year 2024 and 
598.24 	$9,844,000 in fiscal year 2025 are from the 
598.25 	general fund for grants under Minnesota 
598.26 	Statutes, section 145A.131, subdivision 1, 
598.27 	paragraph (f).
598.28 	(2) $535,000 in fiscal year 2024 and $535,000 
598.29 	in fiscal year 2025 are from the general fund 
598.30 	for grants under Minnesota Statutes, section 
598.31 	145A.14, subdivision 2, paragraph (b).
598.32 	(3) $321,000 in fiscal year 2024 and $321,000 
598.33 	in fiscal year 2025 are from the general fund 
599.1 	for grants under Minnesota Statutes, section 
599.2 	144.0759.
599.3 	(o) Health care workforce.  (1) $1,154,000 
599.4 	in fiscal year 2024 and $3,117,000 in fiscal 
599.5 	year 2025 are from the health care access fund 
599.6 	for rural training tracks and rural clinicals 
599.7 	grants under Minnesota Statutes, section 
599.8 	144.1508. The base for this appropriation is 
599.9 	$4,502,000 in fiscal year 2026 and $4,502,000 
599.10 	in fiscal year 2027.
599.11 	(2) $323,000 in fiscal year 2024 and $323,000 
599.12 	in fiscal year 2025 are from the health care 
599.13 	access fund for immigrant international 
599.14 	medical graduate training grants under 
599.15 	Minnesota Statutes, section 144.1911.
599.16 	(3) $5,771,000 in fiscal year 2024 and 
599.17 	$5,147,000 in fiscal year 2025 are from the 
599.18 	health care access fund for site-based clinical 
599.19 	training grants under Minnesota Statutes, 
599.20 	section 144.1505. The base for this 
599.21 	appropriation is $4,426,000 in fiscal year 2026 
599.22 	and $4,426,000 in fiscal year 2027.
599.23 	(4) $1,000,000 in fiscal year 2024 and 
599.24 	$1,000,000 in fiscal year 2025 are from the 
599.25 	health care access fund for mental health 
599.26 	grants for health care professional grants. This 
599.27 	is a onetime appropriation and is available 
599.28 	until June 30, 2027.
599.29 	(5) $2,500,000 in fiscal year 2024 and 
599.30 	$2,500,000 in fiscal year 2025 are from the 
599.31 	health care access fund for health professionals 
599.32 	loan forgiveness under Minnesota Statutes, 
599.33 	section 144.1501, subdivision 1, paragraph 
599.34 	(h).
600.1 	(6) $708,000 in fiscal year 2024 and $708,000 
600.2 	in fiscal year 2025 are from the health care 
600.3 	access fund for primary care employee 
600.4 	recruitment education loan forgiveness under 
600.5 	Minnesota Statutes, section 144.1504.
600.6 	(7) $350,000 in fiscal year 2024 and $350,000 
600.7 	in fiscal year 2025 are from the health care 
600.8 	access fund for workforce research and data 
600.9 	analysis of shortages, maldistribution of health 
600.10 	care providers in Minnesota, and the factors 
600.11 	that influence decisions of health care 
600.12 	providers to practice in rural areas of 
600.13 	Minnesota.
600.14 	(p) School health. $800,000 in fiscal year 
600.15 	2024 and $800,000 in fiscal year 2025 are 
600.16 	from the general fund for grants under 
600.17 	Minnesota Statutes, section 145.903.
600.18 	(q) Long COVID. $3,146,000 in fiscal year 
600.19 	2024 and $3,146,000 in fiscal year 2025 are 
600.20 	from the general fund for grants and to 
600.21 	implement Minnesota Statutes, section 
600.22 	145.361.
600.23 	(r) Workplace violence prevention grants 
600.24 	for health care entities. $4,400,000 in fiscal 
600.25 	year 2024 is from the general fund for grants 
600.26 	to health care entities to improve employee 
600.27 	safety or security. This is a onetime 
600.28 	appropriation and is available until June 30, 
600.29 	2025.
600.30 	(s) Clinical dental education innovation 
600.31 	grants. $1,122,000 in fiscal year 2024 and 
600.32 	$1,122,000 in fiscal year 2025 are from the 
600.33 	general fund for clinical dental education 
601.1 	innovation grants under Minnesota Statutes, 
601.2 	section 144.1913.
601.3 	(t) Skin-lightening products public 
601.4 	awareness and education grant program.
601.5 	$200,000 in fiscal year 2024 is from the 
601.6 	general fund for a grant to the Beautywell 
601.7 	Project under Minnesota Statutes, section 
601.8 	145.9275. This is a onetime appropriation.
601.9 	(u) Emmett Louis Till Victims Recovery 
601.10 	Program. $500,000 in fiscal year 2024 is from 
601.11 	the general fund for a grant to the Emmett 
601.12 	Louis Till Victims Recovery Program. The 
601.13 	commissioner must not use any of this 
601.14 	appropriation for administration. This is a 
601.15 	onetime appropriation and is available until 
601.16 	June 30, 2025.
601.17 	(v) Federally qualified health centers 
601.18 	apprenticeship program. $750,000 in fiscal 
601.19 	year 2024 and $750,000 in fiscal year 2025 
601.20 	are from the general fund for grants under 
601.21 	Minnesota Statutes, section 145.9272, and for 
601.22 	the study of the feasibility of establishing 
601.23 	additional federally qualified health centers 
601.24 	apprenticeship programs.
601.25 	(w) Alzheimer's public information 
601.26 	program. $80,000 in fiscal year 2024 and 
601.27 	$80,000 in fiscal year 2025 are from the 
601.28 	general fund for grants to community-based 
601.29 	organizations to co-create culturally specific 
601.30 	messages to targeted communities and to 
601.31 	promote public awareness materials online 
601.32 	through diverse media channels. This is a 
601.33 	onetime appropriation and is available until 
601.34 	June 30, 2027.
602.1 	(x) African American Babies Coalition 
602.2 	grant. $260,000 in fiscal year 2024 and 
602.3 	$260,000 in fiscal year 2025 are from the 
602.4 	general fund for a grant to the Amherst H. 
602.5 	Wilder Foundation for a grant under 
602.6 	Minnesota Statutes, section 144.645, for the 
602.7 	African American Babies Coalition initiative.
602.8 	(y) (1) Health professional loan forgiveness 
602.9 	account. $9,661,000 in fiscal year 2024 is 
602.10 	from the general fund for eligible mental 
602.11 	health professional loan forgiveness under 
602.12 	Minnesota Statutes, section 144.1501. This is 
602.13 	a onetime appropriation.
602.14 	(2) Transfer. The commissioner must transfer 
602.15 	$9,661,000 in fiscal year 2024 from the 
602.16 	general fund to the health professional loan 
602.17 	forgiveness account under Minnesota Statutes, 
602.18 	section 144.1501, subdivision 2.
602.19 	(z) Primary care residency expansion grant 
602.20 	program. $400,000 in fiscal year 2024 and 
602.21 	$400,000 in fiscal year 2025 are from the 
602.22 	general fund for a psychiatry resident under 
602.23 	Minnesota Statutes, section 144.1506.
602.24 	(aa) Pediatric primary care mental health 
602.25 	training grant program. $1,000,000 in fiscal 
602.26 	year 2024 and $1,000,000 in fiscal year 2025 
602.27 	are from the general fund for grants under 
602.28 	Minnesota Statutes, section 144.1507.
602.29 	(bb) Mental health cultural community 
602.30 	continuing education grant program. 
602.31 	$500,000 in fiscal year 2024 and $500,000 in 
602.32 	fiscal year 2025 are from the general fund for 
602.33 	grants under Minnesota Statutes, section 
602.34 	144.1511.
603.1 	(cc) Labor trafficking services grant 
603.2 	program. $500,000 in fiscal year 2024 and 
603.3 	$500,000 in fiscal year 2025 are from the 
603.4 	general fund for grants under Minnesota 
603.5 	Statutes, section 144.3885.
603.6 	(dd) Alzheimer's disease and dementia care 
603.7 	training program. $449,000 in fiscal year 
603.8 	2025 and $449,000 in fiscal year 2026 are to 
603.9 	implement the Alzheimer's disease and 
603.10 	dementia care training program under 
603.11 	Minnesota Statutes, section 144.6504.
603.12 	(ee) Grant to Minnesota Alliance for 
603.13 	Volunteer Advancement. $138,000 in fiscal 
603.14 	year 2024 is from the general fund for a grant 
603.15 	to the Minnesota Alliance for Volunteer 
603.16 	Advancement to administer needs-based 
603.17 	volunteerism subgrants targeting 
603.18 	underresourced nonprofit organizations in 
603.19 	greater Minnesota to support selected 
603.20 	organizations' ongoing efforts to address and 
603.21 	minimize disparities in access to human 
603.22 	services through increased volunteerism. 
603.23 	Subgrant applicants must demonstrate that the 
603.24 	populations to be served by the subgrantee are 
603.25 	underserved or suffer from or are at risk of 
603.26 	homelessness, hunger, poverty, lack of access 
603.27 	to health care, or deficits in education. The 
603.28 	Minnesota Alliance for Volunteer 
603.29 	Advancement must give priority to 
603.30 	organizations that are serving the needs of 
603.31 	vulnerable populations. This is a onetime 
603.32 	appropriation and is available until June 30, 
603.33 	2025.
603.34 	(ff) Palliative Care Advisory Council. 
603.35 	$40,000 in fiscal year 2024 and $40,000 in 
604.1 	fiscal year 2025 are from the general fund for 
604.2 	grants under Minnesota Statutes, section 
604.3 	144.059.
604.4 	(gg) Universal health care system study. 
604.5 	$1,815,000 in fiscal year 2024 and $580,000 
604.6 	in fiscal year 2025 are from the general fund 
604.7 	for an economic analysis of benefits and costs 
604.8 	of a universal health care system. The base for 
604.9 	this appropriation is $580,000 in fiscal year 
604.10 	2026 and $0 in fiscal year 2027.
604.11 	(hh) Study of the development of a statewide 
604.12 	registry for provider orders for 
604.13 	life-sustaining treatment. $365,000 in fiscal 
604.14 	year 2024 and $365,000 in fiscal year 2025 
604.15 	are from the general fund for a study of the 
604.16 	development of a statewide registry for 
604.17 	provider orders for life-sustaining treatment. 
604.18 	This is a onetime appropriation.
604.19 	(ii) 988 Suicide and crisis lifeline. $4,000,000 
604.20 	in fiscal year 2024 is from the general fund 
604.21 	for 988 national suicide prevention lifeline 
604.22 	grants under Minnesota Statutes, section 
604.23 	145.561. This is a onetime appropriation.
604.24 	(jj) Fetal and infant mortality case review 
604.25 	committee. $664,000 in fiscal year 2024 and 
604.26 	$875,000 in fiscal year 2025 are from the 
604.27 	general fund for grants under Minnesota 
604.28 	Statutes, section 145.9011.
604.29 	(kk) Equitable Health Care Task Force.
604.30 	$779,000 in fiscal year 2024 and $749,000 in 
604.31 	fiscal year 2025 are from the general fund for 
604.32 	the Equitable Health Care Task Force. This is 
604.33 	a onetime appropriation.
605.1 	(ll) Medical education and research costs.
605.2 	$300,000 in fiscal year 2024 and $300,000 in 
605.3 	fiscal year 2025 are from the general fund for 
605.4 	the medical education and research costs 
605.5 	program under Minnesota Statutes, section 
605.6 	62J.692.
605.7 	(mm) Special Guerilla Unit Veterans grant 
605.8 	program. $250,000 in fiscal year 2024 and 
605.9 	$250,000 in fiscal year 2025 are from the 
605.10 	general fund for a grant to the Special 
605.11 	Guerrilla Units Veterans and Families of the 
605.12 	United States of America under Minnesota 
605.13 	Statutes, section 144.0701.
605.14 	(nn) TANF Appropriations. (1) TANF funds 
605.15 	must be used as follows:
605.16 	(i) $3,579,000 in fiscal year 2024 and 
605.17 	$3,579,000 in fiscal year 2025 are from the 
605.18 	TANF fund for home visiting and nutritional 
605.19 	services listed under Minnesota Statutes, 
605.20 	section 145.882, subdivision 7, clauses (6) and 
605.21 	(7). Funds must be distributed to community 
605.22 	health boards according to Minnesota Statutes, 
605.23 	section 145A.131, subdivision 1;
605.24 	(ii) $2,000,000 in fiscal year 2024 and 
605.25 	$2,000,000 in fiscal year 2025 are from the 
605.26 	TANF fund for decreasing racial and ethnic 
605.27 	disparities in infant mortality rates under 
605.28 	Minnesota Statutes, section 145.928, 
605.29 	subdivision 7;
605.30 	(iii) $4,978,000 in fiscal year 2024 and 
605.31 	$4,978,000 in fiscal year 2025 are from the 
605.32 	TANF fund for the family home visiting grant 
605.33 	program under Minnesota Statutes, section 
605.34 	145A.17. $4,000,000 of the funding in fiscal 
606.1 	year 2024 and $4,000,000 in fiscal year 2025 
606.2 	must be distributed to community health 
606.3 	boards under Minnesota Statutes, section 
606.4 	145A.131, subdivision 1. $978,000 of the 
606.5 	funding in fiscal year 2024 and $978,000 in 
606.6 	fiscal year 2025 must be distributed to Tribal 
606.7 	governments under Minnesota Statutes, section 
606.8 	145A.14, subdivision 2a;
606.9 	(iv) $1,156,000 in fiscal year 2024 and 
606.10 	$1,156,000 in fiscal year 2025 are from the 
606.11 	TANF fund for family planning grants under 
606.12 	Minnesota Statutes, section 145.925; and
606.13 	(v) the commissioner may use up to 6.23 
606.14 	percent of the funds appropriated from the 
606.15 	TANF fund each fiscal year to conduct the 
606.16 	ongoing evaluations required under Minnesota 
606.17 	Statutes, section 145A.17, subdivision 7, and 
606.18 	training and technical assistance as required 
606.19 	under Minnesota Statutes, section 145A.17, 
606.20 	subdivisions 4 and 5.
606.21 	(2) TANF Carryforward. Any unexpended 
606.22 	balance of the TANF appropriation in the first 
606.23 	year does not cancel but is available in the 
606.24 	second year.
606.25 	(oo) Base level adjustments. The general 
606.26 	fund base is $204,079,000 in fiscal year 2026 
606.27 	and $203,440,000 in fiscal year 2027. The 
606.28 	state government special revenue fund base is 
606.29 	$12,853,000 in fiscal year 2026 and 
606.30 	$12,853,000 in fiscal year 2027. The health 
606.31 	care access fund base is $56,361,000 in fiscal 
606.32 	year 2026 and $55,761,000 in fiscal year 2027.

606.33	Subd. 3.Health Protection

607.1	Appropriations by Fund
	
607.2	General
	43,827,000
	44,358,000
	
607.3
607.4	State Government 
Special Revenue
	70,981,000
	73,220,000
	
607.5 	(a) Climate resiliency. $6,000,000 in fiscal 
607.6 	year 2024 and $6,000,000 in fiscal year 2025 
607.7 	are from the general fund for grants under 
607.8 	Minnesota Statutes, section 144.9981. The 
607.9 	base for this appropriation is $1,500,000 in 
607.10 	fiscal year 2026 and $1,500,000 in fiscal year 
607.11 	2027.
607.12 	(b) Homeless mortality study. $134,000 in 
607.13 	fiscal year 2024 and $149,000 in fiscal year 
607.14 	2025 are from the general fund for a homeless 
607.15 	mortality study. The general fund base for this 
607.16 	appropriation is $104,000 in fiscal year 2026 
607.17 	and $0 in fiscal year 2027.
607.18 	(c) Lead remediation in schools and child 
607.19 	care settings. $146,000 in fiscal year 2024 
607.20 	and $239,000 in fiscal year 2025 are from the 
607.21 	general fund for grants under Minnesota 
607.22 	Statutes, section 145.9272.
607.23 	(d) MinnesotaOne Health Antimicrobial 
607.24 	Stewardship Collaborative. $312,000 in 
607.25 	fiscal year 2024 and $312,000 in fiscal year 
607.26 	2025 are from the general fund for the 
607.27 	Minnesota One Health Antibiotic Stewardship 
607.28 	Collaborative under Minnesota Statutes, 
607.29 	section 144.0526.
607.30 	(e) Strengthening public drinking water 
607.31 	systems infrastructure. $4,420,000 in fiscal 
607.32 	year 2024 and $4,420,000 in fiscal year 2025 
607.33 	are from the general fund for grants under 
607.34 	Minnesota Statutes, section 144.3832. The 
607.35 	base for this appropriation is $1,580,000 in 
608.1 	fiscal year 2026 and $1,580,000 in fiscal year 
608.2 	2027.
608.3 	(f) HIV prevention health equity. $1,264,000 
608.4 	in fiscal year 2024 and $1,264,000 in fiscal 
608.5 	year 2025 are from the general fund for equity 
608.6 	in HIV prevention. This is a onetime 
608.7 	appropriation.
608.8 	(g) Green burials study and report. $79,000 
608.9 	in fiscal year 2024 is from the general fund 
608.10 	for a study and report on green burials. This 
608.11 	is a onetime appropriation.
608.12 	(h) Base level adjustments. The general fund 
608.13 	base is $34,020,000 in fiscal year 2026 and 
608.14 	$33,916,000 in fiscal year 2027.

608.15	Subd. 4.Health Operations
 		18,492,000
		18,405,000
	
608.16 	Notwithstanding Minnesota Statutes, section 
608.17 	16E.21, subdivision 4, the amount transferred 
608.18 	to the information and telecommunications 
608.19 	account under Minnesota Statutes, section 
608.20 	16E.21, subdivision 2, for the business process 
608.21 	automation and external website 
608.22 	modernization projects approved by the 
608.23 	Legislative Advisory Commission on June 24, 
608.24 	2019, is available until June 30, 2024.

608.25	Sec. 4. HEALTH-RELATED BOARDS

608.26	Subdivision 1.Total Appropriation
 	$
	32,160,000
	$
	32,166,000

608.27	Appropriations by Fund
	
608.28	General
	1,222,000
	468,000
	
608.29
608.30	State Government 
Special Revenue
	30,862,000
	31,660,000
	
608.31	Health Care Access
	76,000
	38,000
	
608.32 	The amounts that may be spent for each 
608.33 	purpose are specified in the following 
608.34 	subdivisions.

609.1
609.2	Subd. 2.Board of Behavioral Health and 
Therapy
 		1,022,000
		1,044,000

609.3	Subd. 3.Board of Chiropractic Examiners
 		773,000
		790,000

609.4	Subd. 4.Board of Dentistry
 		4,100,000
		4,163,000
	
609.5 	(a) Administrative services unit; operating 
609.6 	costs. Of this appropriation, $1,936,000 in 
609.7 	fiscal year 2024 and $1,960,000 in fiscal year 
609.8 	2025 are for operating costs of the 
609.9 	administrative services unit. The 
609.10 	administrative services unit may receive and 
609.11 	expend reimbursements for services it 
609.12 	performs for other agencies.
609.13 	(b) Administrative services unit; volunteer 
609.14 	health care provider program. Of this 
609.15 	appropriation, $150,000 in fiscal year 2024 
609.16 	and $150,000 in fiscal year 2025 are to pay 
609.17 	for medical professional liability coverage 
609.18 	required under Minnesota Statutes, section 
609.19 	214.40.
609.20 	(c) Administrative services unit; retirement 
609.21 	costs. Of this appropriation, $237,000 in fiscal 
609.22 	year 2024 and $237,000 in fiscal year 2025 
609.23 	are for the administrative services unit to pay 
609.24 	for the retirement costs of health-related board 
609.25 	employees. This funding may be transferred 
609.26 	to the health board incurring retirement costs. 
609.27 	Any board that has an unexpended balance for 
609.28 	an amount transferred under this paragraph 
609.29 	shall transfer the unexpended amount to the 
609.30 	administrative services unit. If the amount 
609.31 	appropriated in the first year of the biennium 
609.32 	is not sufficient, the amount from the second 
609.33 	year of the biennium is available.
609.34 	(d) Administrative services unit; contested 
609.35 	cases and other legal proceedings. Of this 
610.1 	appropriation, $200,000 in fiscal year 2024 
610.2 	and $200,000 in fiscal year 2025 are for costs 
610.3 	of contested case hearings and other 
610.4 	unanticipated costs of legal proceedings 
610.5 	involving health-related boards under this 
610.6 	section. Upon certification by a health-related 
610.7 	board to the administrative services unit that 
610.8 	unanticipated costs for legal proceedings will 
610.9 	be incurred and that available appropriations 
610.10 	are insufficient to pay for the unanticipated 
610.11 	costs for that board, the administrative services 
610.12 	unit is authorized to transfer money from this 
610.13 	appropriation to the board for payment of costs 
610.14 	for contested case hearings and other 
610.15 	unanticipated costs of legal proceedings with 
610.16 	the approval of the commissioner of 
610.17 	management and budget. The commissioner 
610.18 	of management and budget must require any 
610.19 	board that has an unexpended balance or an 
610.20 	amount transferred under this paragraph to 
610.21 	transfer the unexpended amount to the 
610.22 	administrative services unit to be deposited in 
610.23 	the state government special revenue fund.

610.24
610.25	Subd. 5.Board of Dietetics and Nutrition 
Practice
 		213,000
		217,000

610.26
610.27	Subd. 6.Board of Executives for Long-term 
Services and Supports
 		705,000
		736,000

610.28	Subd. 7.Board of Marriage and Family Therapy
 		443,000
		456,000

610.29	Subd. 8.Board of Medical Practice
 		5,779,000
		5,971,000

610.30	Subd. 9.Board of Nursing
 		6,039,000
		6,275,000

610.31
610.32	Subd. 10.Board of Occupational Therapy 
Practice
 		480,000
		480,000

610.33	Subd. 11.Board of Optometry
 		270,000
		280,000

610.34	Subd. 12.Board of Pharmacy

611.1	Appropriations by Fund
	
611.2	General
	1,222,000
	468,000
	
611.3
611.4	State Government 
Special Revenue
	5,328,000
	5,309,000
	
611.5	Health Care Access
	76,000
	38,000
	
611.6 	(a) Prescription monitoring program. 
611.7 	$754,000 in fiscal year 2024 is from the 
611.8 	general fund for the Minnesota prescription 
611.9 	monitoring program under Minnesota Statutes, 
611.10 	section 152.126. This is a onetime 
611.11 	appropriation and is available until June 30, 
611.12 	2025.
611.13 	(b) Medication repository program.
611.14 	$450,000 in fiscal year 2024 and $450,000 in 
611.15 	fiscal year 2025 are from the general fund for 
611.16 	a contract under Minnesota Statutes, section 
611.17 	151.555.
611.18 	(c) Base level adjustment. The state 
611.19 	government special revenue fund base is 
611.20 	$5,159,000 in fiscal year 2026 and $5,159,000 
611.21 	in fiscal year 2027. The health care access 
611.22 	fund base is $0 in fiscal year 2026 and $0 in 
611.23 	fiscal year 2027.

611.24	Subd. 13.Board of Physical Therapy
 		678,000
		694,000

611.25	Subd. 14.Board of Podiatric Medicine
 		253,000
		257,000

611.26	Subd. 15.Board of Psychology
 		2,618,000
		2,734,000
	
611.27 	Health professionals service program. This 
611.28 	appropriation includes $1,234,000 in fiscal 
611.29 	year 2024 and $1,324,000 in fiscal year 2025 
611.30 	for the health professional services program.

611.31	Subd. 16.Board of Social Work
 		1,779,000
		1,839,000

611.32	Subd. 17.Board of Veterinary Medicine
 		382,000
		415,000
	
612.1 	Base adjustment. The state government 
612.2 	special revenue fund base is $461,000 in fiscal 
612.3 	year 2026 and $461,000 in fiscal year 2027.

612.4
612.5	Sec. 5. EMERGENCY MEDICAL SERVICES 
REGULATORY BOARD
 	$
	6,800,000
	$
	6,176,000
	
612.6 	(a) Cooper/Sams volunteer ambulance 
612.7 	program. $950,000 in fiscal year 2024 and 
612.8 	$950,000 in fiscal year 2025 are for the 
612.9 	Cooper/Sams volunteer ambulance program 
612.10 	under Minnesota Statutes, section 144E.40.
612.11 	(1) Of this amount, $861,000 in fiscal year 
612.12 	2024 and $861,000 in fiscal year 2025 are for 
612.13 	the ambulance service personnel longevity 
612.14 	award and incentive program under Minnesota 
612.15 	Statutes, section 144E.40.
612.16 	(2) Of this amount, $89,000 in fiscal year 2024 
612.17 	and $89,000 in fiscal year 2025 are for 
612.18 	operations of the ambulance service personnel 
612.19 	longevity award and incentive program under 
612.20 	Minnesota Statutes, section 144E.40.
612.21 	(b) Operations. $2,421,000 in fiscal year 2024 
612.22 	and $2,480,000 in fiscal year 2025 are for 
612.23 	board operations.
612.24 	(c) Emergency medical services fund.
612.25 	$1,385,000 in fiscal year 2024 and $1,385,000 
612.26 	in fiscal year 2025 are for distribution to 
612.27 	regional emergency medical services systems 
612.28 	for the purposes specified in Minnesota 
612.29 	Statutes, section 144E.50. Notwithstanding 
612.30 	Minnesota Statutes, section 144E.50, 
612.31 	subdivision 5, in each year the board must 
612.32 	distribute this appropriation equally among 
612.33 	the eight emergency medical services systems 
612.34 	designated by the board.
613.1 	(d) Ambulance training grants. $361,000 in 
613.2 	fiscal year 2024 and $361,000 in fiscal year 
613.3 	2025 are for training grants under Minnesota 
613.4 	Statutes, section 144E.35.
613.5 	(e) Medical resource communication center 
613.6 	grants. $1,633,000 in fiscal year 2024 and 
613.7 	$970,000 in fiscal year 2025 are for medical 
613.8 	resource communication center grants under 
613.9 	Minnesota Statutes, section 144E.53.

613.10	Sec. 6. OMBUDSPERSON FOR FAMILIES
 	$
	759,000
	$
	776,000

613.11
613.12	Sec. 7. OMBUDSPERSON FOR AMERICAN 
INDIAN FAMILIES
 	$
	336,000
	$
	340,000

613.13
613.14	Sec. 8. OFFICE OF THE FOSTER YOUTH 
OMBUDSPERSON
 	$
	742,000
	$
	759,000

613.15	Sec. 9. MNSURE

613.16	Appropriations by Fund
	
613.17	General
	27,447,000
	45,526,000
	
613.18	Health Care Access
	2,270,000
	1,470,000
	
613.19 	(a) Technology Modernization. $11,025,000 
613.20 	in fiscal year 2024 and $10,726,000 in fiscal 
613.21 	year 2025 are from the general fund to 
613.22 	establish a single end-to-end information 
613.23 	technology system with seamless, real-time 
613.24 	interoperability between qualified health plan 
613.25 	eligibility and enrollment services. The base 
613.26 	for this appropriation is $3,521,000 in fiscal 
613.27 	year 2026 and $0 in fiscal year 2027.
613.28 	(b) Easy Enrollment. $70,000 in fiscal year 
613.29 	2024 and $70,000 in fiscal year 2025 are from 
613.30 	the general fund to implement easy enrollment.
613.31 	(c) Transfer. The Board of Directors of 
613.32 	MNsure must transfer $11,095,000 in fiscal 
613.33 	year 2024 and $14,996,000 in fiscal year 2025 
613.34 	from the general fund to the enterprise account 
614.1 	under Minnesota Statutes, section 62V.07. The 
614.2 	base for this transfer is $3,591,000 in fiscal 
614.3 	year 2026 and $70,000 in fiscal year 2027.
614.4 	(d) Minnesota insulin safety net public 
614.5 	awareness campaign.  $800,000 in fiscal year 
614.6 	2024 is from the health care access fund for a 
614.7 	public awareness campaign for the insulin 
614.8 	safety net program under Minnesota Statutes, 
614.9 	section 151.74. This is a onetime appropriation 
614.10 	and is available until June 30, 2025.
614.11 	(e) Cost-sharing reduction program. 
614.12 	$15,000,000 in fiscal year 2024 and 
614.13 	$30,000,000 in fiscal year 2025 are from the 
614.14 	general fund to implement the cost-sharing 
614.15 	reduction program under Minnesota Statutes, 
614.16 	section 62V.12.
614.17 	(f) Base level adjustment. The general fund 
614.18 	base is $34,121,000 in fiscal year 2026 and 
614.19 	$30,600,000 in fiscal year 2027.

614.20
614.21	Sec. 10. RARE DISEASE ADVISORY 
COUNCIL
 	$
	654,000
	$
	602,000

614.22	Sec. 11. COMMISSIONER OF REVENUE
 	$
	40,000
	$
	4,000
	
614.23 	Easy enrollment. $40,000 in fiscal year 2024 
614.24 	and $4,000 in fiscal year 2025 are for the 
614.25 	administrative costs associated with the easy 
614.26 	enrollment program.

614.27
614.28	Sec. 12. COMMISSIONER OF 
MANAGEMENT AND BUDGET
 	$
	12,613,000
	$
	2,516,000
	
614.29 	(a) Outcomes and evaluation consultation. 
614.30 	$450,000 in fiscal year 2024 and $450,000 in 
614.31 	fiscal year 2025 are for outcomes and 
614.32 	evaluation consultation requirements.
614.33 	(b) Department of Children, Youth, and 
614.34 	Families. $11,931,000 in fiscal year 2024 and 
615.1 	$2,066,000 in fiscal year 2025 are to establish 
615.2 	the Department of Children, Youth, and 
615.3 	Families. This is a onetime appropriation.
615.4 	(c) Impact evaluation. $232,000 in fiscal year 
615.5 	2024 is for the Keeping Nurses at the Bedside 
615.6 	Act impact evaluation. This is a onetime 
615.7 	appropriation.
615.8 	(d) Base adjustment. The general fund base 
615.9 	is $450,000 in fiscal year 2026 and $450,000 
615.10 	in fiscal year 2027.

615.11
615.12	Sec. 13. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES
 	$
	823,000
	$
	3,521,000

615.13	Sec. 14. COMMISSIONER OF COMMERCE
 	$
	42,000
	$
	51,000
	
615.14 	(a) Heath Care Affordability Board 
615.15 	Requirements. $42,000 in fiscal year 2024 
615.16 	and $17,000 in fiscal year 2025 are for 
615.17 	responsibilities related to the Health Care 
615.18 	Affordability Board.
615.19 	(b) Defrayal of costs for mandated coverage 
615.20 	of biomarker testing. $17,000 in fiscal year 
615.21 	2025 is for administrative costs to implement 
615.22 	mandated coverage of biomarker testing to 
615.23 	diagnose, treat, manage, and monitor illness 
615.24 	or disease. The base for this appropriation is 
615.25 	$2,611,000 in fiscal year 2026 and $2,611,000 
615.26 	in fiscal year 2027. The base includes 
615.27 	$2,594,000 in fiscal year 2026 and $2,594,000 
615.28 	in fiscal year 2027 for defrayal of costs for 
615.29 	mandated coverage of biomarker testing to 
615.30 	diagnose, treat, manage, and monitor illness 
615.31 	or disease.
615.32 	(c) Consultation for coverage of services 
615.33 	provided by pharmacists. $17,000 in fiscal 
615.34 	year 2025 is for consultation with health plan 
616.1 	companies, pharmacies, and pharmacy benefit 
616.2 	managers to develop guidance and implement 
616.3 	equal coverage for services provided by 
616.4 	pharmacists. This is a onetime appropriation.
616.5 	(d) Base adjustment. The general fund base 
616.6 	is $2,628,000 in fiscal year 2026 and 
616.7 	$2,628,000 in fiscal year 2027.

616.8
616.9	Sec. 15. HEALTH CARE AFFORDABILITY 
BOARD
 	$
	1,336,000
	$
	1,727,000
	
616.10 	Base adjustment. The general fund base is 
616.11 	$1,793,000 in fiscal year 2026 and $1,790,000 
616.12 	in fiscal year 2027.

616.13 	Sec. 16. Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 32, 
616.14 	as amended by Laws 2022, chapter 98, article 15, section 7, subdivision 32, is amended to 
616.15 	read:

616.16
616.17	Subd. 32.Grant Programs; Child Mental Health 
Grants
 		30,167,000
		30,182,000
	
616.18 	(a) Children's Residential Facilities.
616.19 	$1,964,000 in fiscal year 2022 and $1,979,000 
616.20 	in fiscal year 2023 are to reimburse counties 
616.21 	and Tribal governments for a portion of the 
616.22 	costs of treatment in children's residential 
616.23 	facilities. The commissioner shall distribute 
616.24 	the appropriation to counties and Tribal 
616.25 	governments proportionally based on a 
616.26 	methodology developed by the commissioner. 
616.27 	The fiscal year 2022 appropriation is available 
616.28 	until June 30, 2023 base for this appropriation 
616.29 	is $0 in fiscal year 2025.
616.30 	(b) Base Level Adjustment. The general fund 
616.31 	base is $29,580,000 in fiscal year 2024 and 
616.32 	$27,705,000 $25,726,000 in fiscal year 2025.

617.1 	Sec. 17. Laws 2021, First Special Session chapter 7, article 16, section 3, subdivision 2, 
617.2 	as amended by Laws 2022, chapter 98, article 1, section 68, is amended to read:

617.3	Subd. 2.Health Improvement

617.4	Appropriations by Fund
	
617.6617.5
	General
	123,714,000
	124,000,000
122,800,000
	
617.7
617.8	State Government 
Special Revenue
	11,967,000
	11,290,000
	
617.9	Health Care Access
	37,512,000
	36,832,000
	
617.10	Federal TANF
	11,713,000
	11,713,000
	
617.11 	(a) TANF Appropriations. (1) $3,579,000 in 
617.12 	fiscal year 2022 and $3,579,000 in fiscal year 
617.13 	2023 are from the TANF fund for home 
617.14 	visiting and nutritional services listed under 
617.15 	Minnesota Statutes, section 145.882, 
617.16 	subdivision 7, clauses (6) and (7). Funds must 
617.17 	be distributed to community health boards 
617.18 	according to Minnesota Statutes, section 
617.19 	145A.131, subdivision 1;
617.20 	(2) $2,000,000 in fiscal year 2022 and 
617.21 	$2,000,000 in fiscal year 2023 are from the 
617.22 	TANF fund for decreasing racial and ethnic 
617.23 	disparities in infant mortality rates under 
617.24 	Minnesota Statutes, section 145.928, 
617.25 	subdivision 7;
617.26 	(3) $4,978,000 in fiscal year 2022 and 
617.27 	$4,978,000 in fiscal year 2023 are from the 
617.28 	TANF fund for the family home visiting grant 
617.29 	program according to Minnesota Statutes, 
617.30 	section 145A.17. $4,000,000 of the funding 
617.31 	in each fiscal year must be distributed to 
617.32 	community health boards according to 
617.33 	Minnesota Statutes, section 145A.131, 
617.34 	subdivision 1. $978,000 of the funding in each 
617.35 	fiscal year must be distributed to tribal 
618.1 	governments according to Minnesota Statutes, 
618.2 	section 145A.14, subdivision 2a;
618.3 	(4) $1,156,000 in fiscal year 2022 and 
618.4 	$1,156,000 in fiscal year 2023 are from the 
618.5 	TANF fund for family planning grants under 
618.6 	Minnesota Statutes, section 145.925; and
618.7 	(5) the commissioner may use up to 6.23 
618.8 	percent of the funds appropriated from the 
618.9 	TANF fund each fiscal year to conduct the 
618.10 	ongoing evaluations required under Minnesota 
618.11 	Statutes, section 145A.17, subdivision 7, and 
618.12 	training and technical assistance as required 
618.13 	under Minnesota Statutes, section 145A.17, 
618.14 	subdivisions 4 and 5.
618.15 	(b) TANF Carryforward. Any unexpended 
618.16 	balance of the TANF appropriation in the first 
618.17 	year of the biennium does not cancel but is 
618.18 	available for the second year.
618.19 	(c) Tribal Public Health Grants. $500,000 
618.20 	in fiscal year 2022 and $500,000 in fiscal year 
618.21 	2023 are from the general fund for Tribal 
618.22 	public health grants under Minnesota Statutes, 
618.23 	section 145A.14, for public health 
618.24 	infrastructure projects as defined by the Tribal 
618.25 	government.
618.26 	(d) Public Health Infrastructure Funds.
618.27 	$6,000,000 in fiscal year 2022 and $6,000,000 
618.28 	in fiscal year 2023 are from the general fund 
618.29 	for public health infrastructure funds to 
618.30 	distribute to community health boards and 
618.31 	Tribal governments to support their ability to 
618.32 	meet national public health standards.
618.33 	(e) Public Health System Assessment and 
618.34 	Oversight. $1,500,000 in fiscal year 2022 and 
619.1 	$1,500,000 in fiscal year 2023 are from the 
619.2 	general fund for the commissioner to assess 
619.3 	the capacity of the public health system to 
619.4 	meet national public health standards and 
619.5 	oversee public health system improvement 
619.6 	efforts.
619.7 	(f) Health Professional Education Loan 
619.8 	Forgiveness. Notwithstanding the priorities 
619.9 	and distribution requirements under Minnesota 
619.10 	Statutes, section 144.1501, $3,000,000 in 
619.11 	fiscal year 2022 and $3,000,000 in fiscal year 
619.12 	2023 are from the general fund for loan 
619.13 	forgiveness under article 3, section 43, for 
619.14 	individuals who are eligible alcohol and drug 
619.15 	counselors, eligible medical residents, or 
619.16 	eligible mental health professionals, as defined 
619.17 	in article 3, section 43. The general fund base 
619.18 	for this appropriation is $2,625,000 in fiscal 
619.19 	year 2024 and $0 in fiscal year 2025. The 
619.20 	health care access fund base for this 
619.21 	appropriation is $875,000 in fiscal year 2024, 
619.22 	$3,500,000 in fiscal year 2025, and $0 in fiscal 
619.23 	year 2026. The general fund amounts in this 
619.24 	paragraph are available until March 31, 2024. 
619.25 	This paragraph expires on April 1, 2024.
619.26 	(g) Mental Health Cultural Community 
619.27 	Continuing Education Grant Program.
619.28 	$500,000 in fiscal year 2022 and $500,000 in 
619.29 	fiscal year 2023 are from the general fund for 
619.30 	the mental health cultural community 
619.31 	continuing education grant program. This is 
619.32 	a onetime appropriation
619.33 	(h) Birth Records; Homeless Youth. $72,000 
619.34 	in fiscal year 2022 and $32,000 in fiscal year 
619.35 	2023 are from the state government special 
620.1 	revenue fund for administration and issuance 
620.2 	of certified birth records and statements of no 
620.3 	vital record found to homeless youth under 
620.4 	Minnesota Statutes, section 144.2255.
620.5 	(i) Supporting Healthy Development of 
620.6 	Babies During Pregnancy and Postpartum.
620.7 	$260,000 in fiscal year 2022 and $260,000 in 
620.8 	fiscal year 2023 are from the general fund for 
620.9 	a grant to the Amherst H. Wilder Foundation 
620.10 	for the African American Babies Coalition 
620.11 	initiative for community-driven training and 
620.12 	education on best practices to support healthy 
620.13 	development of babies during pregnancy and 
620.14 	postpartum. Grant funds must be used to build 
620.15 	capacity in, train, educate, or improve 
620.16 	practices among individuals, from youth to 
620.17 	elders, serving families with members who 
620.18 	are Black, indigenous, or people of color, 
620.19 	during pregnancy and postpartum. This is a 
620.20 	onetime appropriation and is available until 
620.21 	June 30, 2023.
620.22 	(j) Dignity in Pregnancy and Childbirth.
620.23 	$494,000 in fiscal year 2022 and $200,000 in 
620.24 	fiscal year 2023 are from the general fund for 
620.25 	purposes of Minnesota Statutes, section 
620.26 	144.1461. Of this appropriation: (1) $294,000 
620.27 	in fiscal year 2022 is for a grant to the 
620.28 	University of Minnesota School of Public 
620.29 	Health's Center for Antiracism Research for 
620.30 	Health Equity, to develop a model curriculum 
620.31 	on anti-racism and implicit bias for use by 
620.32 	hospitals with obstetric care and birth centers 
620.33 	to provide continuing education to staff caring 
620.34 	for pregnant or postpartum women. The model 
620.35 	curriculum must be evidence-based and must 
621.1 	meet the criteria in Minnesota Statutes, section 
621.2 	144.1461, subdivision 2, paragraph (a); and 
621.3 	(2) $200,000 in fiscal year 2022 and $200,000 
621.4 	in fiscal year 2023 are for purposes of 
621.5 	Minnesota Statutes, section 144.1461, 
621.6 	subdivision 3.
621.7 	(k) Congenital Cytomegalovirus (CMV). (1) 
621.8 	$196,000 in fiscal year 2022 and $196,000 in 
621.9 	fiscal year 2023 are from the general fund for 
621.10 	outreach and education on congenital 
621.11 	cytomegalovirus (CMV) under Minnesota 
621.12 	Statutes, section 144.064.
621.13 	(2) Contingent on the Advisory Committee on 
621.14 	Heritable and Congenital Disorders 
621.15 	recommending and the commissioner of health 
621.16 	approving inclusion of CMV in the newborn 
621.17 	screening panel in accordance with Minnesota 
621.18 	Statutes, section 144.065, subdivision 3, 
621.19 	paragraph (d), $656,000 in fiscal year 2023 is 
621.20 	from the state government special revenue 
621.21 	fund for follow-up services.
621.22 	(l) Nonnarcotic Pain Management and 
621.23 	Wellness. $649,000 in fiscal year 2022 is from 
621.24 	the general fund for nonnarcotic pain 
621.25 	management and wellness in accordance with 
621.26 	Laws 2019, chapter 63, article 3, section 1, 
621.27 	paragraph (n).
621.28 	(m) Base Level Adjustments. The general 
621.29 	fund base is $121,201,000 in fiscal year 2024 
621.30 	and $116,344,000 in fiscal year 2025, of which 
621.31 	$750,000 in fiscal year 2024 and $750,000 in 
621.32 	fiscal year 2025 are for fetal alcohol spectrum 
621.33 	disorders prevention grants under Minnesota 
621.34 	Statutes, section 145.267. The health care 
622.1 	access fund base is $38,385,000 in fiscal year 
622.2 	2024 and $40,644,000 in fiscal year 2025.

622.3 	Sec. 18. TRANSFERS.
 622.4 		Subdivision 1.Grants. The commissioner of human services, with the approval of the 
622.5 	commissioner of management and budget, may transfer unencumbered appropriation balances 
622.6 	for the biennium ending June 30, 2025, within fiscal years among the MFIP; general 
622.7 	assistance; medical assistance; MinnesotaCare; MFIP child care assistance under Minnesota 
622.8 	Statutes, section 119B.05; Minnesota supplemental aid program; group residential housing 
622.9 	program; the entitlement portion of Northstar Care for Children under Minnesota Statutes, 
622.10 	chapter 256N; and the entitlement portion of the behavioral health fund between fiscal years 
622.11 	of the biennium. The commissioner shall inform the chairs and ranking minority members 
622.12 	of the legislative committees with jurisdiction over health and human services quarterly 
622.13 	about transfers made under this subdivision.
622.14 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
622.15 	may be transferred within the Department of Human Services and the Department of Health 
622.16 	as the commissioners consider necessary, with the advance approval of the commissioner 
622.17 	of management and budget. The commissioners shall inform the chairs and ranking minority 
622.18 	members of the legislative committees with jurisdiction over health and human services 
622.19 	finance quarterly about transfers made under this section.

622.20 	Sec. 19. INDIRECT COSTS NOT TO FUND PROGRAMS.
 622.21 	The commissioner of health shall not use indirect cost allocations to pay for the 
622.22 	operational costs of any program for which they are responsible.

622.23 	Sec. 20. EXPIRATION OF UNCODIFIED LANGUAGE.
 622.24 	All uncodified language contained in this article expires on June 30, 2025, unless a 
622.25 	different expiration date is explicit.