1.1 	A bill for an act
1.2 	relating to state government; establishing budget provisions for the Departments 
1.3 	of Human Services, Health, and Children, Youth, and Families; modifying 
1.4 	provisions relating to health, health licensing boards, health and education facilities, 
1.5 	pharmacy benefits, health care finance, behavioral health, children's mental health 
1.6 	terminology, assertive community treatment and intensive residential treatment 
1.7 	services, background studies, Department of Human Services program integrity, 
1.8 	human services licensing, economic supports, child protection and welfare, early 
1.9 	care and learning, and children and families licensing; making conforming changes 
1.10 	for the statutory establishment of the Department of Children, Youth, and Families; 
1.11 	making forecast adjustments; requiring reports; establishing criminal penalties; 
1.12 	permitting rulemaking; appropriating money;amending Minnesota Statutes 2024, 
1.13 	sections 3.732, subdivision 1; 10A.01, subdivision 35; 13.46, subdivision 3; 
1.14 	62A.673, subdivision 2; 62D.21; 62D.211; 62E.23, subdivision 1; 62J.461, 
1.15 	subdivisions 3, 4, 5; 62J.51, subdivision 19a; 62J.581; 62J.84, subdivisions 2, 3, 
1.16 	6, 10, 11, 12, 13, 14, 15; 62K.10, subdivisions 2, 5, 6; 62M.17, subdivision 2; 
1.17 	62Q.522, subdivision 1; 62Q.527, subdivisions 1, 2, 3; 62U.04, by adding a 
1.18 	subdivision; 103I.005, subdivision 17b; 103I.101, subdivisions 2, 5, 6, by adding 
1.19 	a subdivision; 103I.208, subdivisions 1, 1a, 2; 103I.235, subdivision 1; 103I.525, 
1.20 	subdivisions 2, 6, 8; 103I.531, subdivisions 2, 6, 8; 103I.535, subdivisions 2, 6, 
1.21 	8; 103I.541, subdivisions 2b, 2c, 4; 103I.545, subdivisions 1, 2; 103I.601, 
1.22 	subdivisions 2, 4; 121A.61, subdivision 3; 128C.02, subdivision 5; 136A.25; 
1.23 	136A.26; 136A.27; 136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 
1.24 	22, by adding a subdivision; 136A.32, subdivisions 1, 4, by adding a subdivision; 
1.25 	136A.33; 136A.34, subdivisions 3, 4; 136A.36; 136A.38; 136A.41; 136A.42; 
1.26 	136F.67, subdivision 1; 138.912, subdivisions 1, 2, 3, 4, 6; 142A.03, subdivision 
1.27 	2, by adding a subdivision; 142A.609, subdivisions 11, 12; 142A.76, subdivisions 
1.28 	2, 3; 142B.01, subdivision 15; 142B.05, subdivision 3; 142B.10, subdivision 14; 
1.29 	142B.16, subdivision 2; 142B.171, subdivision 2; 142B.30, subdivision 1, by 
1.30 	adding a subdivision; 142B.41, by adding a subdivision; 142B.47; 142B.51, 
1.31 	subdivision 2; 142B.65, subdivisions 8, 9; 142B.66, subdivision 3; 142B.70, 
1.32 	subdivisions 7, 8; 142B.80; 142C.06, by adding a subdivision; 142C.11, subdivision 
1.33 	8; 142C.12, subdivisions 1, 6; 142D.31, subdivision 2; 142E.03, subdivision 3; 
1.34 	142E.11, subdivisions 1, 2; 142E.13, subdivision 2; 142E.15, subdivision 1; 
1.35 	142E.16, subdivisions 3, 7; 142E.51, subdivisions 5, 6; 142G.02, subdivision 56; 
1.36 	142G.27, subdivision 4; 142G.42, subdivision 3; 144.064, subdivision 3; 144.0758, 
1.37 	subdivision 3; 144.1205, subdivisions 2, 4, 8, 9, 10; 144.121, subdivisions 1a, 2, 
1.38 	5, by adding subdivisions; 144.1215, by adding a subdivision; 144.1222, 
2.1 	subdivisions 1a, 2d; 144.125, subdivisions 1, 2; 144.3831, subdivision 1; 144.50, 
2.2 	by adding a subdivision; 144.55, subdivision 1a; 144.554; 144.555, subdivisions 
2.3 	1a, 1b; 144.562, subdivisions 2, 3; 144.563; 144.608, subdivision 2; 144.651, 
2.4 	subdivision 2; 144.966, subdivision 2; 144.99, subdivision 1; 144A.43, subdivision 
2.5 	15; 144E.123, subdivision 3; 144E.35; 144G.08, subdivision 45; 144G.45, 
2.6 	subdivision 6; 145.8811; 145.901, subdivision 1; 145.987, subdivisions 1, 2; 
2.7 	147.01, subdivision 7; 147.037, by adding a subdivision; 147A.02; 147D.03, 
2.8 	subdivision 1; 148.108, subdivision 1, by adding subdivisions; 148.191, subdivision 
2.9 	2; 148.241; 148.512, subdivision 17a; 148.5192, subdivision 3; 148.5194, 
2.10 	subdivision 3b; 148.56, subdivision 1; 148.6401; 148.6402, subdivisions 1, 7, 8, 
2.11 	13, 14, 16, 16a, 19, 20, 23, 25, by adding subdivisions; 148.6403; 148.6404; 
2.12 	148.6405; 148.6408, subdivision 2, by adding a subdivision; 148.6410, subdivision 
2.13 	2, by adding a subdivision; 148.6412, subdivisions 2, 3; 148.6415; 148.6418; 
2.14 	148.6420, subdivision 1; 148.6423, subdivisions 1, 2, by adding a subdivision; 
2.15 	148.6425, subdivision 2, by adding subdivisions; 148.6428; 148.6432, subdivisions 
2.16 	1, 2, 3, 4, by adding a subdivision; 148.6435; 148.6438; 148.6443, subdivisions 
2.17 	3, 4, 5, 6, 7, 8; 148.6445, by adding subdivisions; 148.6448, subdivisions 1, 2, 4, 
2.18 	6; 148.6449, subdivisions 1, 2, 7; 148B.53, subdivision 3; 148E.180, subdivisions 
2.19 	1, 5, 7, by adding subdivisions; 148F.11, subdivision 1; 149A.02, by adding a 
2.20 	subdivision; 150A.105, by adding a subdivision; 151.01, subdivisions 15, 23; 
2.21 	151.065, subdivisions 1, 3, 6; 151.101; 151.555, subdivisions 6, 10; 151.741, 
2.22 	subdivision 5; 152.12, subdivision 1; 153B.85, subdivisions 1, 3; 156.015, by 
2.23 	adding subdivisions; 157.16, subdivisions 2, 2a, 3, 3a, by adding a subdivision; 
2.24 	245.095, subdivision 5, by adding a subdivision; 245.0962, subdivision 1; 245.462, 
2.25 	subdivisions 4, 20; 245.4661, subdivisions 2, 6, 7, 9; 245.4662, subdivision 1; 
2.26 	245.467, subdivision 4; 245.4682, subdivision 3; 245.469; 245.4711, subdivisions 
2.27 	1, 4; 245.4712, subdivisions 1, 3; 245.4835, subdivision 2; 245.4863; 245.487, 
2.28 	subdivision 2; 245.4871, subdivisions 3, 4, 5, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 
2.29 	32, 34, by adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 
2.30 	1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, 
2.31 	subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 
2.32 	245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 
2.33 	3; 245.4905; 245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, 
2.34 	subdivision 2; 245.492, subdivision 3; 245.50, subdivision 3, by adding a 
2.35 	subdivision; 245.697, subdivision 2a; 245.814, subdivision 3; 245.826; 245.91, 
2.36 	subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245.975, subdivision 1; 245A.03, 
2.37 	subdivision 2; 245A.04, subdivisions 1, 7; 245A.05; 245A.07, subdivision 2; 
2.38 	245A.16, subdivision 1; 245A.18, subdivision 1; 245A.242, subdivision 2; 245A.26, 
2.39 	subdivisions 1, 2; 245C.02, by adding a subdivision; 245C.05, by adding a 
2.40 	subdivision; 245C.08, subdivision 3; 245C.13, subdivision 2; 245C.14, by adding 
2.41 	a subdivision; 245C.15, subdivision 4a, by adding a subdivision; 245C.22, 
2.42 	subdivision 5; 245D.02, subdivision 4a; 245I.05, subdivisions 3, 5; 245I.06, 
2.43 	subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 245I.23, subdivision 
2.44 	7; 246C.12, subdivision 4; 252.27, subdivision 1; 254B.04, subdivision 1a; 254B.05, 
2.45 	subdivision 1a; 254B.06, by adding a subdivision; 256.01, by adding a subdivision; 
2.46 	256.478, subdivision 2; 256.9657, by adding a subdivision; 256.969, subdivision 
2.47 	2b; 256.98, subdivision 1; 256.983, subdivision 4; 256B.02, subdivision 11; 
2.48 	256B.0371, subdivision 3; 256B.04, subdivision 21; 256B.051, subdivision 3; 
2.49 	256B.055, subdivision 12; 256B.0615, subdivisions 1, 3; 256B.0616, subdivisions 
2.50 	1, 4, 5; 256B.0622, subdivisions 1, 3a, 7a, 8, 11, 12; 256B.0625, subdivisions 2, 
2.51 	3b, 13, 13c, 13d, 13e, 17a, 20, 25c, 30, 54, by adding subdivisions; 256B.064, 
2.52 	subdivision 1a; 256B.0659, subdivision 21; 256B.0757, subdivisions 2, 5, by 
2.53 	adding a subdivision; 256B.0943, subdivisions 1, 3, 9, 12, 13; 256B.0945, 
2.54 	subdivision 1; 256B.0946, subdivision 6; 256B.0947, subdivision 3a; 256B.12; 
2.55 	256B.1973, by adding a subdivision; 256B.69, subdivisions 6d, 23, by adding a 
2.56 	subdivision; 256B.692, subdivision 2; 256B.76, subdivisions 1, 6, by adding a 
2.57 	subdivision; 256B.761; 256B.766; 256B.77, subdivision 7a; 256B.82; 256B.85, 
2.58 	subdivision 12; 256D.44, subdivision 5; 256L.03, subdivision 5; 256R.01, by 
3.1 	adding a subdivision; 260.65; 260.66, subdivision 1; 260.691, subdivision 1; 
3.2 	260.692; 260.810, subdivisions 1, 2; 260.821, subdivision 2; 260B.157, subdivision 
3.3 	3; 260C.001, subdivision 2; 260C.007, subdivisions 16, 19, 26d, 27b; 260C.150, 
3.4 	subdivision 3; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 260C.202, 
3.5 	subdivision 2, by adding a subdivision; 260C.204; 260C.221, subdivision 2; 
3.6 	260C.223, subdivisions 1, 2; 260C.301, subdivision 4; 260C.331, subdivision 1; 
3.7 	260C.452, subdivision 4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, 
3.8 	subdivision 1; 260D.04; 260D.06, subdivision 2; 260D.07; 260E.03, subdivision 
3.9 	15; 260E.09; 260E.11, subdivision 3; 260E.20, subdivision 1; 260E.24, subdivisions 
3.10 	1, 2; 295.50, subdivisions 3, 9b; 295.52, subdivisions 1, 1a, 2, 3, 4; 326.72, 
3.11 	subdivision 1; 326.75, subdivisions 3, 3a; 327.15, subdivisions 2, 3, 4, by adding 
3.12 	a subdivision; 354B.20, subdivision 7; Laws 2021, First Special Session chapter 
3.13 	7, article 2, section 81; Laws 2023, chapter 70, article 7, section 34; article 20, 
3.14 	section 2, subdivision 30; Laws 2024, chapter 127, article 67, sections 4; 6; 
3.15 	proposing coding for new law in Minnesota Statutes, chapters 62J; 62Q; 62V; 
3.16 	142B; 142F; 144; 144E; 145; 148; 153; 245; 256B; 260E; 295; 306; 307; 609; 
3.17 	proposing coding for new law as Minnesota Statutes, chapter 148G; repealing 
3.18 	Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; 62E.25; 
3.19 	62J.824; 62K.10, subdivision 3; 103I.550; 136A.29, subdivision 4; 138.912, 
3.20 	subdivision 7; 148.108, subdivisions 2, 3, 4; 148.6402, subdivision 22a; 148.6420, 
3.21 	subdivisions 2, 3, 4; 148.6423, subdivisions 4, 5, 7, 8, 9; 148.6425, subdivision 3; 
3.22 	148.6430; 148.6445, subdivisions 5, 6, 8; 156.015, subdivision 1; 245A.11, 
3.23 	subdivision 8; 256B.0622, subdivision 4; 256B.0625, subdivision 38; Minnesota 
3.24 	Rules, parts 2500.1150; 2500.2030; 4695.2900; 6800.5100, subpart 5; 6800.5400, 
3.25 	subparts 5, 6; 6900.0250, subparts 1, 2; 9100.0400, subparts 1, 3; 9100.0500; 
3.26 	9100.0600.
3.27 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.28 	ARTICLE 1
3.29 	DEPARTMENT OF HEALTH FINANCE

3.30 	Section 1. Minnesota Statutes 2024, section 62D.21, is amended to read:
3.31 	62D.21 FEES.
3.32 	Every health maintenance organization subject to sections 62D.01 to 62D.30 shall pay 
3.33 	to the commissioner of health the following fees as prescribed by the commissioner of health 
3.34 	pursuant to section 144.122 for the following:
3.35 	(1) filing an application for a certificate of authority: $10,000;
3.36 	(2) filing an amendment to a certificate of authority: $125;
3.37 	(3) filing each annual report: $400; and
3.38 	(4) other filings, as specified by rule.
3.39 	(4) filing each quarterly report: $200; and
3.40 	(5) filing annual plan review documents, amendments to plan documents, and quality 
3.41 	plans: $125.

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

4.2 	Sec. 2. Minnesota Statutes 2024, section 62D.211, is amended to read:
4.3 	62D.211 RENEWAL FEE.
4.4 	Each health maintenance organization subject to sections 62D.01 to 62D.30 shall submit 
4.5 	to the commissioner of health each year before June 15 a certificate of authority renewal 
4.6 	fee in the amount of $10,000 $30,000 each plus 20 88 cents per person enrolled in the health 
4.7 	maintenance organization on December 31 of the preceding year. The commissioner may 
4.8 	adjust the renewal fee in rule under the provisions of chapter 14.

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

4.10 	Sec. 3. [62J.8241] FACILITY FEES PROHIBITED.
4.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
4.12 	the meanings given.
4.13 	(b) "Control" has the meaning given in section 145D.01.
4.14 	(c) "Facility fee" means any separate charge or billing by a provider-based clinic in 
4.15 	addition to a professional fee for physicians' services that is intended to cover building, 
4.16 	electronic medical records systems, billing, and other administrative and operational 
4.17 	expenses.
4.18 	(d) "Health care clearinghouse" has the meaning given in Code of Federal Regulations, 
4.19 	title 45, section 160.103.
4.20 	(e) "Health care provider" has the meaning given in section 145B.02. Health care provider 
4.21 	does not include any hospital that:
4.22 	(1) is certified by the Centers for Medicare and Medicaid Services as a Medicare critical 
4.23 	access hospital; and
4.24 	(2) is not affiliated, by governance or control, with a health system or other hospital.
4.25 	(f) "NPI" means the standard, unique health identifier for health care providers that is 
4.26 	issued by the national provider system in accordance with Code of Federal Regulations, 
4.27 	title 45, section 162.
4.28 	(g) "Provider-based clinic" means the site of an off-campus clinic or provider office, 
4.29 	located at least 250 yards from the main hospital buildings or as determined by the Centers 
4.30 	for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144 
5.1 	or a health system that operates one or more hospitals licensed under chapter 144 and is 
5.2 	primarily engaged in providing diagnostic and therapeutic care, including medical history, 
5.3 	physical examinations, assessment of health status, and treatment monitoring. This definition 
5.4 	does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, 
5.5 	pharmacy, or educational services and does not include facilities designated as rural health 
5.6 	clinics.
5.7 		Subd. 2.Provider-based clinic prohibition. (a) Health care providers are prohibited 
5.8 	from charging, billing, or collecting a facility fee for the following when provided at a 
5.9 	provider-based clinic: (1) services provided by telehealth as defined in section 62A.673, 
5.10 	subdivision 2, paragraph (h), when the patient is located outside the facility; and (2) the 
5.11 	provision of preventive items and services, as defined in section 62Q.46, subdivision 1.
5.12 	(b) Health care providers are prohibited from charging, billing, or collecting a facility 
5.13 	fee directly from a patient for those services set forth in paragraph (a), clause (2).
5.14 		Subd. 3.Unique NPI. (a) Provider-based clinics must apply for, obtain, and use on all 
5.15 	claims for reimbursement or payment for health services provided at the provider-based 
5.16 	clinic, a unique NPI that is distinct from the hospital's NPI.
5.17 	(b) The provider-based clinic's unique NPI must be included on any claim for 
5.18 	reimbursement or payment for health services provided at the provider-based clinic, 
5.19 	regardless of whether the claim is filed or submitted by or through a central office of the 
5.20 	hospital or a health care clearinghouse.
5.21 		Subd. 4.Notification. (a) If a hospital or health system charges a facility fee utilizing 
5.22 	a CPT evaluation and management code or assessment and management code for outpatient 
5.23 	services provided at a provider-based clinic where a professional fee is also expected to be 
5.24 	charged, the hospital or health system must provide the patient with a written notice that 
5.25 	includes the following information:
5.26 	(1) that the provider-based clinic is part of a hospital or health system and that the hospital 
5.27 	or health system charges a facility fee that is in addition to and separate from the professional 
5.28 	fee charged by the provider;
5.29 	(2) the amount of the patient's potential financial liability, including any facility fee 
5.30 	likely to be charged, and, where professional medical services are provided by an affiliated 
5.31 	provider, any professional fee likely to be charged, or, if the exact type and extent of the 
5.32 	professional medical services needed are not known or the terms of a patient's health 
5.33 	insurance coverage are not known with reasonable certainty, an estimate of the patient's 
6.1 	financial liability based on typical or average charges for visits to the provider-based clinic, 
6.2 	including the facility fee;
6.3 	(3) a statement that the patient's actual financial liability will depend on the professional 
6.4 	medical services actually provided to the patient;
6.5 	(4) an explanation that the patient may incur financial liability that is greater than the 
6.6 	patient would incur if the professional medical services were not provided by a 
6.7 	provider-based clinic;
6.8 	(5) a telephone number the patient may call for additional information regarding the 
6.9 	patient's potential financial liability, including an estimate of the facility fee likely to be 
6.10 	charged based on the scheduled professional medical services; and
6.11 	(6) that a patient covered by a health insurance policy should contact the health insurer 
6.12 	for additional information regarding the hospital's or health system's charges and fees, 
6.13 	including the patient's potential financial liability, if any, for the charges and fees.
6.14 	(b) If a hospital or health system charges a facility fee without utilizing a CPT evaluation 
6.15 	and management code for outpatient services provided at a provider-based clinic, the hospital 
6.16 	or health system must provide the patient with a written notice that includes the following 
6.17 	information:
6.18 	(1) that the provider-based clinic is part of a hospital or health system and that the hospital 
6.19 	or health system charges a facility fee that may be in addition to and separate from the 
6.20 	professional fee charged by a provider;
6.21 	(2) a statement that the patient's actual financial liability will depend on the professional 
6.22 	medical services actually provided to the patient;
6.23 	(3) an explanation that the patient may incur financial liability that is greater than the 
6.24 	patient would incur if the provider-based clinic was not hospital-based;
6.25 	(4) a telephone number the patient may call for additional information regarding the 
6.26 	patient's potential financial liability, including an estimate of the facility fee likely to be 
6.27 	charged based on the scheduled professional medical services; and
6.28 	(5) that a patient covered by a health insurance policy should contact the health insurer 
6.29 	for additional information regarding the hospital's or health system's charges and fees, 
6.30 	including the patient's potential financial liability, if any, for the charges and fees.
6.31 	(c) Each initial billing statement that includes a facility fee must:
7.1 	(1) clearly identify the fee as a facility fee that is billed in addition to, or separately from, 
7.2 	any professional fee billed by the provider;
7.3 	(2) provide the corresponding Medicare facility fee reimbursement rate for the same 
7.4 	service as a comparison or, if there is no corresponding Medicare facility fee for the service:
7.5 	(i) the approximate amount Medicare would have paid the hospital for the facility fee 
7.6 	on the billing statement; or
7.7 	(ii) the percentage of the hospital's charges that Medicare would have paid the hospital 
7.8 	for the facility fee;
7.9 	(3) include a statement that the facility fee is intended to cover the hospital's or health 
7.10 	system's operational expenses;
7.11 	(4) inform the patient that the patient's financial liability may have been less if the services 
7.12 	had been provided at a facility not owned or operated by the hospital or health system; and
7.13 	(5) include written notice of the patient's right to request a reduction in the facility fee 
7.14 	or any other portion of the bill and a telephone number that the patient may use to request 
7.15 	such a reduction without regard to whether the patient qualifies for, or is likely to be granted, 
7.16 	any reduction.
7.17 	No later than October 15, 2025, and annually thereafter, each hospital, health system, and 
7.18 	provider-based clinic must submit to the commissioner of health a sample of a billing 
7.19 	statement issued by the hospital, health system, or provider-based clinic that complies with 
7.20 	the provisions of this paragraph and which represents the format of billing statements 
7.21 	received by patients. The billing statement must not contain patient identifying information.
7.22 	(d) The written notices described in paragraphs (a) to (c) and (g) to (i) must be in plain 
7.23 	language and in a form that may be reasonably understood by a patient who does not possess 
7.24 	special knowledge regarding hospital or health system facility fee charges. On and after 
7.25 	October 1, 2025, the notices must include tag lines in at least the top 15 languages spoken 
7.26 	in Minnesota indicating that the notice is available in each of those top 15 languages. The 
7.27 	15 languages must be either the languages in the list published by the Department of Health 
7.28 	and Human Services in connection with section 1557 of the Patient Protection and Affordable 
7.29 	Care Act, P.L. 111-148, or, as determined by the hospital or health system, the top 15 
7.30 	languages in the geographic area of the provider-based clinic.
7.31 	(e) For nonemergency care, if a patient's appointment is scheduled to occur ten or more 
7.32 	days after the appointment is made, such written notice must be sent to the patient by first 
7.33 	class mail, encrypted electronic mail, or a secure patient Internet portal not more than three 
8.1 	days after the appointment is made. If an appointment is scheduled to occur less than ten 
8.2 	days after the appointment is made or if the patient arrives without an appointment, such 
8.3 	notice must be hand-delivered to the patient when the patient arrives at the provider-based 
8.4 	clinic. For emergency care, such written notice must be provided to the patient as soon as 
8.5 	practicable after the patient is stabilized in accordance with the federal Emergency Medical 
8.6 	Treatment and Active Labor Act, United States Code, title 42, section 1395dd, as amended 
8.7 	from time to time, or is determined not to have an emergency medical condition and before 
8.8 	the patient leaves the provider-based clinic. If the patient is unconscious, under great duress, 
8.9 	or for any other reason unable to read the notice and understand and act on the patient's 
8.10 	rights, the notice must be provided to the patient's representative as soon as practicable.
8.11 	(f) Paragraphs (a) to (e) do not apply if a patient is insured by Medicare or the medical 
8.12 	assistance program under chapter 256B or is receiving services under a workers' 
8.13 	compensation plan established to provide medical services.
8.14 	(g) A provider-based clinic must prominently display written notice in locations that are 
8.15 	readily accessible to and visible by patients, including patient waiting or appointment 
8.16 	check-in areas, stating the following:
8.17 	(1) that the provider-based clinic is part of a hospital or health system;
8.18 	(2) the name of the hospital or health system; and
8.19 	(3) that if the provider-based clinic charges a facility fee, the patient may incur a financial 
8.20 	liability greater than the patient would incur if the provider-based clinic was not 
8.21 	hospital-based.
8.22 	On and after October 1, 2025, such notices must include tag lines in at least the top 15 
8.23 	languages spoken in Minnesota indicating that the notice is available in each of those top 
8.24 	15 languages. The 15 languages must be either the languages in the list published by the 
8.25 	Department of Health and Human Services in connection with section 1557 of the Patient 
8.26 	Protection and Affordable Care Act, P.L. 111-148, or, as determined by the hospital or 
8.27 	health system, the top 15 languages in the geographic area of the provider-based clinic. No 
8.28 	later than October 1, 2025, and annually thereafter, each provider-based clinic must submit 
8.29 	a copy of the written notice required by this paragraph to the commissioner of health.
8.30 	(h) A provider-based clinic must identify itself to the public and payers as being 
8.31 	hospital-based, including, at a minimum, by stating the name of the hospital or health system 
8.32 	in its signage, marketing materials, websites, and stationery.
9.1 	(i) A provider-based clinic must, when scheduling services for which a facility fee may 
9.2 	be charged, inform the patient:
9.3 	(1) that the provider-based clinic is part of a hospital or health system;
9.4 	(2) of the name of the hospital or health system;
9.5 	(3) that the hospital or health system may charge a facility fee in addition to and separate 
9.6 	from the professional fee charged by the provider; and
9.7 	(4) of the telephone number the patient may call for additional information regarding 
9.8 	such patient's potential financial liability.
9.9 	(j) If any transaction described in section 145D.01, subdivision 2, results in the 
9.10 	establishment of a provider-based clinic where facility fees may be billed, the hospital or 
9.11 	health system that is the purchaser in the transaction must, no later than 30 days after the 
9.12 	transaction, provide written notice by first class mail of the transaction to each patient served 
9.13 	within the three years preceding the date of the transaction by the health care facility that 
9.14 	has been purchased as part of the transaction. The notice must include the following 
9.15 	information:
9.16 	(1) a statement that the health care facility is now a provider-based clinic and is part of 
9.17 	a hospital or health system, the health care facility's full legal and business name, and the 
9.18 	date of the facility's acquisition by a hospital or health system;
9.19 	(2) the name, business address, and telephone number of the hospital or health system 
9.20 	that is the purchaser of the health care facility;
9.21 	(3) a statement that the provider-based clinic bills, or is likely to bill, patients a facility 
9.22 	fee that may be in addition to, and separate from, any professional fee billed by a health 
9.23 	care provider at the provider-based clinic;
9.24 	(4) a statement that the patient's actual financial liability will depend on the professional 
9.25 	medical services actually provided to the patient and an explanation that the patient may 
9.26 	incur financial liability that is greater than the patient would incur if the provider-based 
9.27 	clinic were not a provider-based clinic;
9.28 	(5) the estimated amount or range of amounts the provider-based clinic may bill for a 
9.29 	facility fee or an example of the average facility fee billed at the provider-based clinic for 
9.30 	the most common services provided at the provider-based clinic; and
9.31 	(6) a statement that, before seeking services at the provider-based clinic, a patient covered 
9.32 	by a health insurance policy should contact the patient's health insurer for additional 
10.1 	information regarding the provider-based clinic fees, including the patient's potential financial 
10.2 	liability, if any, for the fees.
10.3 	A copy of the written notice provided to patients in accordance with this subdivision must 
10.4 	be filed with the commissioner of health. The Department of Health must post a link to the 
10.5 	notice on its website. A hospital, health system, or provider-based clinic must not collect a 
10.6 	facility fee for services provided at a provider-based clinic that is subject to the provisions 
10.7 	of this subdivision from the date of the transaction until at least 30 days after the written 
10.8 	notice required pursuant to this subdivision is mailed to the patient or a copy of the notice 
10.9 	is filed with the commissioner of health, whichever is later. By July 1, 2026, and annually 
10.10 	thereafter, each provider-based clinic that was the subject of a transaction, as described in 
10.11 	section 145D.01, subdivision 2, during the preceding calendar year must report to the 
10.12 	commissioner of health the number of patients served by the provider-based clinic in the 
10.13 	preceding three years.
10.14 		Subd. 5.Reporting. (a) By January 15, 2027, and each year thereafter, hospitals licensed 
10.15 	under chapter 144 and health systems operating one or more hospitals licensed under chapter 
10.16 	144 must submit a report to the commissioner of health identifying facility fees charged, 
10.17 	billed, and collected during the preceding calendar year. The commissioner must publish 
10.18 	the information reported on a publicly accessible website. The report shall be in the format 
10.19 	prescribed by the commissioner of health.
10.20 	(b) The report under this subdivision must include the following information for each 
10.21 	facility owned or operated by the hospital or health system providing services for which a 
10.22 	facility fee is charged, billed, or collected:
10.23 	(1) the name and full address of each facility;
10.24 	(2) the number of patient visits at each facility; and
10.25 	(3) the number, total amount, and range of allowable facility fees paid at each facility 
10.26 	by Medicare, medical assistance, MinnesotaCare, and private insurance.
10.27 	(c) The report under this subdivision must include the following information for the 
10.28 	entire hospital or health system:
10.29 	(1) the total amount charged and billed for facility fees;
10.30 	(2) the total amount collected from facility fees;
10.31 	(3) the top ten procedures or services provided by the hospital or health system that 
10.32 	generated the greatest amount of facility fee gross revenue, the volume of each of these ten 
10.33 	procedures or services and the gross and net revenue totals for each procedure or service, 
11.1 	and the total net amount of revenue received by the hospital or health system derived from 
11.2 	facility fees;
11.3 	(4) the top ten procedures or services, based on patient volume, provided by the hospital 
11.4 	or health system for which facility fees are charged, billed, or collected, based on patient 
11.5 	volume, including the gross and net revenue totals received for each such procedure or 
11.6 	service; and
11.7 	(5) any other information related to facility fees that the commissioner of health may 
11.8 	require.
11.9 		Subd. 6.Interaction with medical assistance. The medical assistance program in chapter 
11.10 	256B is not required to comply with any provision of this section if compliance with the 
11.11 	provision would:
11.12 	(1) prevent the state from receiving federal financial participation for medical assistance 
11.13 	coverage; or
11.14 	(2) result in a lower level of coverage or reduced access to coverage for medical assistance 
11.15 	enrollees.
11.16 		Subd. 7.Enforcement. (a) A violation of this section is an unlawful business practice 
11.17 	for purposes of section 8.31. The attorney general may enforce this section pursuant to 
11.18 	section 8.31.
11.19 	(b) In addition to penalties provided in paragraph (a), the commissioner of health may, 
11.20 	pursuant to the procedures in sections 144.99 and 144.991, impose an administrative penalty 
11.21 	on a health care provider for failure to comply with subdivision 6. The penalty must not 
11.22 	exceed $1,000 per occurrence.
11.23 	(c) The commissioner of health or the commissioner's designee may audit any health 
11.24 	care provider for compliance with the requirements of this section. A health care provider 
11.25 	must make available, upon written request of the commissioner or the commissioner's 
11.26 	designee, copies of any books, documents, records, or data that are necessary for the purposes 
11.27 	of completing the audit for four years after the furnishing of any services for which a facility 
11.28 	fee was charged, billed, or collected.

11.29 	EFFECTIVE DATE. This section is effective January 1, 2026, except that subdivision 
11.30 	2 is effective January 1, 2027.

12.1 	Sec. 4. Minnesota Statutes 2024, section 62U.04, is amended by adding a subdivision to 
12.2 	read:
12.3 		Subd. 14.Unique NPI. Data submitted under this section relating to a provider-based 
12.4 	clinic, as defined in section 62J.8241, and that includes an NPI, as defined in section 
12.5 	62J.8241, must include the provider-based clinic's unique NPI that is distinct from the 
12.6 	hospital's NPI.

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

12.8 	Sec. 5. Minnesota Statutes 2024, section 103I.101, subdivision 6, is amended to read:
12.9 		Subd. 6.Fees for variances. The commissioner shall charge a nonrefundable application 
12.10 	fee of $275 $325 to cover the administrative cost of processing a request for a variance or 
12.11 	modification of rules adopted by the commissioner under this chapter.

12.12 	Sec. 6. Minnesota Statutes 2024, section 103I.208, subdivision 1, is amended to read:
12.13 		Subdivision 1.Well notification fee. The well notification fee to be paid by a property 
12.14 	owner is:
12.15 	(1) for construction of a water supply well, $275 $325, which includes the state core 
12.16 	function fee;
12.17 	(2) for a well sealing, $75 $125 for each well or temporary boring, which includes the 
12.18 	state core function fee, except that: (i) a single notification and fee of $75 $125 is required 
12.19 	for all temporary borings on a single property and sealed within 72 hours of start of 
12.20 	construction; and (ii) temporary borings less than 25 feet in depth are exempt from the 
12.21 	notification and fee requirements in this chapter;
12.22 	(3) for construction of a dewatering well, $275 $330, which includes the state core 
12.23 	function fee, for each dewatering well, except a dewatering project comprising five or more 
12.24 	dewatering wells shall be assessed a single fee of $1,375 $1,620 for the dewatering wells 
12.25 	recorded on the notification; and
12.26 	(4) for construction of an environmental well, $275 $330, which includes the state core 
12.27 	function fee, except that a single fee of $275 is required for all environmental wells recorded 
12.28 	on the notification that are located on a single property, and except that no fee is required 
12.29 	for construction of a temporary boring for each environmental well, except an environmental 
12.30 	well site project comprising five or more environmental wells shall be assessed a single fee 
12.31 	of $1,620 for the environmental wells recorded on the notification.

13.1 	Sec. 7. Minnesota Statutes 2024, section 103I.208, subdivision 1a, is amended to read:
13.2 		Subd. 1a.State core function fee. The state core function fee to be collected by the 
13.3 	state and delegated community health boards and used to support state core functions is:
13.4 	(1) for a new well, $20 $40; and
13.5 	(2) for a well sealing, $5 $15.

13.6 	Sec. 8. Minnesota Statutes 2024, section 103I.208, subdivision 2, is amended to read:
13.7 		Subd. 2.Permit fee. (a) The permit fee to be paid by a property owner is:
13.8 	(1) for a water supply well that is not in use under a maintenance permit, $175 $225
13.9 	annually;
13.10 	(2) for an environmental well that is unsealed under a maintenance permit, $175 annually 
13.11 	except no fee is required for an environmental well owned by a federal agency, state agency, 
13.12 	or local unit of government that is unsealed under a maintenance permit. "Local unit of 
13.13 	government" means a statutory or home rule charter city, town, county, or soil and water 
13.14 	conservation district, a watershed district, an organization formed for the joint exercise of 
13.15 	powers under section 471.59, a community health board, or other special purpose district 
13.16 	or authority with local jurisdiction in water and related land resources management;
13.17 	(3) for environmental wells on an environmental well site that are unsealed under a 
13.18 	maintenance permit,:
13.19 	$175 (i) $225 annually for one to ten environmental wells per site regardless of the 
13.20 	number of environmental wells located on site;
13.21 	(ii) $325 annually for 11 to 20 environmental wells per site; and
13.22 	(iii) $425 annually for 21 or more environmental wells per site;
13.23 	(4) for a groundwater thermal exchange device, in addition to the notification fee for 
13.24 	water supply wells, $275 $350 for systems using 20 gallons per minute or less and $590 
13.25 	for systems using over 20 gallons per minute, which includes the state core function fee;
13.26 	(5) for a bored geothermal heat exchanger with less than ten tons of heating/cooling 
13.27 	capacity, $275 $350;
13.28 	(6) for a bored geothermal heat exchanger with ten to 50 tons of heating/cooling capacity, 
13.29 	$515 $590;
13.30 	(7) for a bored geothermal heat exchanger with greater than 50 tons of heating/cooling 
13.31 	capacity, $740 $815;
14.1 	(8) for a dewatering well that is unsealed under a maintenance permit, $175 $330 annually 
14.2 	for each dewatering well, except a dewatering project comprising more than five or more
14.3 	dewatering wells shall be issued a single permit for $875 $1,620 annually for dewatering 
14.4 	wells recorded on the permit;
14.5 	(9) for an elevator boring, $275 $325 for each boring; and
14.6 	(10) for a submerged closed loop heat exchanger system, in addition to the notification 
14.7 	fee for water supply wells, $3,250, which includes the state core function fee.
14.8 	(b) For purposes of this subdivision, an environmental well site includes all of the 
14.9 	environmental wells on a single property. A single property is considered one tax parcel or 
14.10 	multiple contiguous parcels with the same owner.

14.11 	Sec. 9. Minnesota Statutes 2024, section 103I.235, subdivision 1, is amended to read:
14.12 		Subdivision 1.Disclosure of wells to buyer. (a) Before signing an agreement to sell or 
14.13 	transfer real property, the seller must disclose in writing to the buyer information about the 
14.14 	status and location of all known wells on the property, by delivering to the buyer either a 
14.15 	statement by the seller that the seller does not know of any wells on the property, or a 
14.16 	disclosure statement indicating the legal description and county, and a map drawn from 
14.17 	available information showing the location of each well to the extent practicable. In the 
14.18 	disclosure statement, the seller must indicate, for each well, whether the well is in use, not 
14.19 	in use, or sealed.
14.20 	(b) At the time of closing of the sale, the disclosure statement information, name and 
14.21 	mailing address of the buyer, and the quartile, section, township, and range in which each 
14.22 	well is located must be provided on a well disclosure certificate signed by the seller or a 
14.23 	person authorized to act on behalf of the seller.
14.24 	(c) A well disclosure certificate need not be provided if the seller does not know of any 
14.25 	wells on the property and the deed or other instrument of conveyance contains the statement: 
14.26 	"The Seller certifies that the Seller does not know of any wells on the described real 
14.27 	property."
14.28 	(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate 
14.29 	required by this subdivision shall be signed by the buyer or a person authorized to act on 
14.30 	behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure 
14.31 	certificate is not required if the following statement appears on the deed followed by the 
14.32 	signature of the grantee or, if there is more than one grantee, the signature of at least one 
14.33 	of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the 
15.1 	described real property." The statement and signature of the grantee may be on the front or 
15.2 	back of the deed or on an attached sheet and an acknowledgment of the statement by the 
15.3 	grantee is not required for the deed to be recordable.
15.4 	(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
15.5 	(1) that consists solely of a sale or transfer of severed mineral interests; or
15.6 	(2) that consists of an individual condominium unit as described in chapters 515 and 
15.7 	515B.
15.8 	(f) For an area owned in common under chapter 515 or 515B the association or other 
15.9 	responsible person must report to the commissioner by July 1, 1992, the location and status 
15.10 	of all wells in the common area. The association or other responsible person must notify 
15.11 	the commissioner within 30 days of any change in the reported status of wells.
15.12 	(g) If the seller fails to provide a required well disclosure certificate, the buyer, or a 
15.13 	person authorized to act on behalf of the buyer, may sign a well disclosure certificate based 
15.14 	on the information provided on the disclosure statement required by this section or based 
15.15 	on other available information.
15.16 	(h) A county recorder or registrar of titles may not record a deed or other instrument of 
15.17 	conveyance dated after October 31, 1990, for which a certificate of value is required under 
15.18 	section 272.115, or any deed or other instrument of conveyance dated after October 31, 
15.19 	1990, from a governmental body exempt from the payment of state deed tax, unless the 
15.20 	deed or other instrument of conveyance contains the statement made in accordance with 
15.21 	paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all the 
15.22 	information required by paragraph (b) or (d). The county recorder or registrar of titles must 
15.23 	not accept a certificate unless it contains all the required information. The county recorder 
15.24 	or registrar of titles shall note on each deed or other instrument of conveyance accompanied 
15.25 	by a well disclosure certificate that the well disclosure certificate was received. The notation 
15.26 	must include the statement "No wells on property" if the disclosure certificate states there 
15.27 	are no wells on the property. The well disclosure certificate shall not be filed or recorded 
15.28 	in the records maintained by the county recorder or registrar of titles. After noting "No wells 
15.29 	on property" on the deed or other instrument of conveyance, the county recorder or registrar 
15.30 	of titles shall destroy or return to the buyer the well disclosure certificate. The county 
15.31 	recorder or registrar of titles shall collect from the buyer or the person seeking to record a 
15.32 	deed or other instrument of conveyance, a fee of $50 $54 for receipt of a completed well 
15.33 	disclosure certificate. By the tenth day of each month, the county recorder or registrar of 
15.34 	titles shall transmit the well disclosure certificates to the commissioner of health. By the 
16.1 	tenth day after the end of each calendar quarter, the county recorder or registrar of titles 
16.2 	shall transmit to the commissioner of health $42.50 $46.50 of the fee for each well disclosure 
16.3 	certificate received during the quarter. The commissioner shall maintain the well disclosure 
16.4 	certificate for at least six years. The commissioner may store the certificate as an electronic 
16.5 	image. A copy of that image shall be as valid as the original.
16.6 	(i) No new well disclosure certificate is required under this subdivision if the buyer or 
16.7 	seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed or 
16.8 	other instrument of conveyance that the status and number of wells on the property have 
16.9 	not changed since the last previously filed well disclosure certificate. The following 
16.10 	statement, if followed by the signature of the person making the statement, is sufficient to 
16.11 	comply with the certification requirement of this paragraph: "I am familiar with the property 
16.12 	described in this instrument and I certify that the status and number of wells on the described 
16.13 	real property have not changed since the last previously filed well disclosure certificate." 
16.14 	The certification and signature may be on the front or back of the deed or on an attached 
16.15 	sheet and an acknowledgment of the statement is not required for the deed or other instrument 
16.16 	of conveyance to be recordable.
16.17 	(j) The commissioner in consultation with county recorders shall prescribe the form for 
16.18 	a well disclosure certificate and provide well disclosure certificate forms to county recorders 
16.19 	and registrars of titles and other interested persons.
16.20 	(k) Failure to comply with a requirement of this subdivision does not impair:
16.21 	(1) the validity of a deed or other instrument of conveyance as between the parties to 
16.22 	the deed or instrument or as to any other person who otherwise would be bound by the deed 
16.23 	or instrument; or
16.24 	(2) the record, as notice, of any deed or other instrument of conveyance accepted for 
16.25 	filing or recording contrary to the provisions of this subdivision.

16.26 	Sec. 10. Minnesota Statutes 2024, section 103I.525, subdivision 2, is amended to read:
16.27 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
16.28 	of a well contractor is $75 $100. The commissioner may not act on an application until the 
16.29 	application fee is paid.
16.30 	(b) The renewal fee for certification as a representative of a well contractor is $75 $100. 
16.31 	The commissioner may not renew a certification until the renewal fee is paid.
16.32 	(c) A certified representative must file an application and a renewal application fee to 
16.33 	renew the certification by the date stated in the certification. The renewal application must 
17.1 	include information that the certified representative has met continuing education 
17.2 	requirements established by the commissioner by rule.

17.3 	Sec. 11. Minnesota Statutes 2024, section 103I.525, subdivision 6, is amended to read:
17.4 		Subd. 6.License fee. The fee for a well contractor's license is $250 $300.

17.5 	Sec. 12. Minnesota Statutes 2024, section 103I.525, subdivision 8, is amended to read:
17.6 		Subd. 8.Renewal. (a) A licensee must file an application and a renewal application fee 
17.7 	to renew the license by the date stated in the license.
17.8 	(b) The renewal application fee for a well contractor's license is $250 $300.
17.9 	(c) The renewal application must include information that the certified representative 
17.10 	of the applicant has met continuing education requirements established by the commissioner 
17.11 	by rule.
17.12 	(d) At the time of the renewal, the commissioner must have on file all properly completed 
17.13 	well and boring construction reports, well and boring sealing reports, reports of elevator 
17.14 	borings, water sample analysis reports, well and boring permits, and well notifications for 
17.15 	work conducted by the licensee since the last license renewal.

17.16 	Sec. 13. Minnesota Statutes 2024, section 103I.531, subdivision 2, is amended to read:
17.17 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
17.18 	of a limited well/boring contractor is $75 $100. The commissioner may not act on an 
17.19 	application until the application fee is paid.
17.20 	(b) The renewal fee for certification as a representative of a limited well/boring contractor 
17.21 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
17.22 	(c) The fee for three or more limited well/boring contractor certifications is $225 $275.
17.23 	(d) A certified representative must file an application and a renewal application fee to 
17.24 	renew the certification by the date stated in the certification. The renewal application must 
17.25 	include information that the certified representative has met continuing education 
17.26 	requirements established by the commissioner by rule.

17.27 	Sec. 14. Minnesota Statutes 2024, section 103I.531, subdivision 6, is amended to read:
17.28 		Subd. 6.License fee. The fee for a limited well/boring contractor's license is $75 $100. 
17.29 	The fee for three or more limited well/boring contractor licenses is $225 $275.

18.1 	Sec. 15. Minnesota Statutes 2024, section 103I.531, subdivision 8, is amended to read:
18.2 		Subd. 8.Renewal. (a) A person must file an application and a renewal application fee 
18.3 	to renew the limited well/boring contractor's license by the date stated in the license.
18.4 	(b) The renewal application fee for a limited well/boring contractor's license is $75 $100.
18.5 	(c) The renewal application must include information that the certified representative 
18.6 	of the applicant has met continuing education requirements established by the commissioner 
18.7 	by rule.
18.8 	(d) At the time of the renewal, the commissioner must have on file all properly completed 
18.9 	well and boring construction reports, well and boring sealing reports, well and boring 
18.10 	permits, water quality sample reports, and well notifications for work conducted by the 
18.11 	licensee since the last license renewal.

18.12 	Sec. 16. Minnesota Statutes 2024, section 103I.535, subdivision 2, is amended to read:
18.13 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
18.14 	of an elevator boring contractor is $75 $100. The commissioner may not act on an application 
18.15 	until the application fee is paid.
18.16 	(b) The renewal fee for certification as a representative of an elevator boring contractor 
18.17 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
18.18 	(c) A certified representative must file an application and a renewal application fee to 
18.19 	renew the certification by the date stated in the certification. The renewal application must 
18.20 	include information that the certified representative has met continuing education 
18.21 	requirements established by the commissioner by rule.

18.22 	Sec. 17. Minnesota Statutes 2024, section 103I.535, subdivision 6, is amended to read:
18.23 		Subd. 6.License fee. The fee for an elevator boring contractor's license is $75 $100.

18.24 	Sec. 18. Minnesota Statutes 2024, section 103I.535, subdivision 8, is amended to read:
18.25 		Subd. 8.Renewal. (a) A person must file an application and a renewal application fee 
18.26 	to renew the license by the date stated in the license.
18.27 	(b) The renewal application fee for an elevator boring contractor's license is $75 $100.
18.28 	(c) The renewal application must include information that the certified representative 
18.29 	of the applicant has met continuing education requirements established by the commissioner 
18.30 	by rule.
19.1 	(d) At the time of renewal, the commissioner must have on file all reports and permits 
19.2 	for elevator boring work conducted by the licensee since the last license renewal.

19.3 	Sec. 19. Minnesota Statutes 2024, section 103I.541, subdivision 2b, is amended to read:
19.4 		Subd. 2b.Issuance of license. If a person employs a certified representative, submits 
19.5 	the bond under subdivision 3, and pays the license fee of $75 $100 for an environmental 
19.6 	well contractor license, the commissioner shall issue an environmental well contractor 
19.7 	license to the applicant. The fee for an individual registration is $75 $100. The commissioner 
19.8 	may not act on an application until the application fee is paid.

19.9 	Sec. 20. Minnesota Statutes 2024, section 103I.541, subdivision 2c, is amended to read:
19.10 		Subd. 2c.Certification fee. (a) The application fee for certification as a representative 
19.11 	of an environmental well contractor is $75 $100. The commissioner may not act on an 
19.12 	application until the application fee is paid.
19.13 	(b) The renewal fee for certification as a representative of an environmental well 
19.14 	contractor is $75 $100. The commissioner may not renew a certification until the renewal 
19.15 	fee is paid.
19.16 	(c) A certified representative must file an application and a renewal application fee to 
19.17 	renew the certification by the date stated in the certification. The renewal application must 
19.18 	include information that the certified representative has met continuing education 
19.19 	requirements established by the commissioner by rule.

19.20 	Sec. 21. Minnesota Statutes 2024, section 103I.541, subdivision 4, is amended to read:
19.21 		Subd. 4.License renewal. (a) A person must file an application and a renewal application 
19.22 	fee to renew the license by the date stated in the license.
19.23 	(b) The renewal application fee for an environmental well contractor's license is $75
19.24 	$100.
19.25 	(c) The renewal application must include information that the certified representative 
19.26 	of the applicant has met continuing education requirements established by the commissioner 
19.27 	by rule.
19.28 	(d) At the time of the renewal, the commissioner must have on file all well and boring 
19.29 	construction reports, well and boring sealing reports, well permits, and notifications for 
19.30 	work conducted by the licensed person since the last license renewal.

20.1 	Sec. 22. Minnesota Statutes 2024, section 103I.545, subdivision 1, is amended to read:
20.2 		Subdivision 1.Drilling machine. (a) A person may not use a drilling machine such as 
20.3 	a cable tool, rotary tool, hollow rod tool, or auger for a drilling activity requiring a license 
20.4 	under this chapter unless the drilling machine is registered with the commissioner.
20.5 	(b) A person must apply for the registration on forms prescribed by the commissioner 
20.6 	and submit a $75 $125 registration fee.
20.7 	(c) A registration is valid for one year.

20.8 	Sec. 23. Minnesota Statutes 2024, section 103I.545, subdivision 2, is amended to read:
20.9 		Subd. 2.Hoist. (a) A person may not use a machine such as a hoist for an activity 
20.10 	requiring a license under this chapter to repair wells or borings, seal wells or borings, or 
20.11 	install pumps unless the machine is registered with the commissioner.
20.12 	(b) A person must apply for the registration on forms prescribed by the commissioner 
20.13 	and submit a $75 $125 registration fee.
20.14 	(c) A registration is valid for one year.

20.15 	Sec. 24. Minnesota Statutes 2024, section 103I.601, subdivision 2, is amended to read:
20.16 		Subd. 2.License required to make borings. (a) Except as provided in paragraph (d), 
20.17 	a person must not make an exploratory boring without an explorer's license. The fee for an 
20.18 	explorer's license is $75 $100. The explorer's license is valid until the date prescribed in the 
20.19 	license by the commissioner.
20.20 	(b) A person must file an application and renewal application fee to renew the explorer's 
20.21 	license by the date stated in the license. The renewal application fee is $75 $100.
20.22 	(c) If the licensee submits an application fee after the required renewal date, the licensee:
20.23 	(1) must include a late fee of $75; and
20.24 	(2) may not conduct activities authorized by an explorer's license until the renewal 
20.25 	application, renewal application fee, late fee, and sealing reports required in subdivision 9 
20.26 	are submitted.
20.27 	(d) An explorer must designate a responsible individual to supervise and oversee the 
20.28 	making of exploratory borings.
21.1 	(1) Before an individual supervises or oversees an exploratory boring, the individual 
21.2 	must file an application and application fee of $75 $100 to qualify as a certified responsible 
21.3 	individual.
21.4 	(2) The individual must take and pass an examination relating to construction, location, 
21.5 	and sealing of exploratory borings. A professional engineer or geoscientist licensed under 
21.6 	sections 326.02 to 326.15 or a professional geologist certified by the American Institute of 
21.7 	Professional Geologists is not required to take the examination required in this subdivision, 
21.8 	but must be certified as a responsible individual to supervise an exploratory boring.
21.9 	(3) The individual must file an application and a renewal fee of $75 $100 to renew the 
21.10 	responsible individual's certification by the date stated in the certification. If the certified 
21.11 	responsible individual submits an application fee after the renewal date, the certified 
21.12 	responsible individual must include a late fee of $75 and may not supervise or oversee 
21.13 	exploratory borings until the renewal application, application fee, and late fee are submitted.

21.14 	Sec. 25. Minnesota Statutes 2024, section 103I.601, subdivision 4, is amended to read:
21.15 		Subd. 4.Notification and map of borings. (a) By ten days before beginning exploratory 
21.16 	boring, an explorer must submit to the commissioner of health a notification of the proposed 
21.17 	boring map and a fee of $275 $325 for each boring constructed.
21.18 	(b) By ten days before beginning exploratory boring, an explorer must submit to the 
21.19 	commissioners of health and natural resources a county road map on a single sheet of paper 
21.20 	that is 8-1/2 by 11 inches in size and having a scale of one-half inch equal to one mile, as 
21.21 	prepared by the Department of Transportation, or a 7.5 minute series topographic map 
21.22 	(1:24,000 scale), as prepared by the United States Geological Survey, showing the location 
21.23 	of each proposed exploratory boring to the nearest estimated 40 acre parcel. Exploratory 
21.24 	boring that is proposed on the map may not be commenced later than 180 days after 
21.25 	submission of the map, unless a new map is submitted.

21.26 	Sec. 26. [144.063] DEMENTIA SERVICES PROGRAM ESTABLISHED.
21.27 	The commissioner of health shall establish the dementia services program to:
21.28 	(1) facilitate the coordination and support of:
21.29 	(i) state-funded policies and programs that relate to Alzheimer's disease and related 
21.30 	forms of dementia;
21.31 	(ii) outreach programs and services between state agencies, local public health 
21.32 	departments, Tribal Nations, educational institutions, and community groups for the purpose 
22.1 	of fostering public awareness and education regarding Alzheimer's disease and related forms 
22.2 	of dementia; and
22.3 	(iii) services and activities between groups that are interested in dementia research, 
22.4 	programs, and services, including area agencies on aging, service providers, advocacy 
22.5 	groups, legal services, emergency personnel, law enforcement, local public health 
22.6 	departments, Tribal Nations, and state colleges and universities;
22.7 	(2) facilitate the coordination, review, publication, and implementation of and updates 
22.8 	to the Minnesota Dementia Strategic Plan;
22.9 	(3) use and share data related to the impact of Alzheimer's disease and related forms of 
22.10 	dementia in Minnesota to guide statewide action; and
22.11 	(4) incorporate early detection and risk reduction strategies into existing department-led 
22.12 	public health programs.

22.13 	Sec. 27. Minnesota Statutes 2024, section 144.064, subdivision 3, is amended to read:
22.14 		Subd. 3.Commissioner duties. (a) The commissioner shall make available to health 
22.15 	care practitioners, women who may become pregnant, expectant parents, and parents of 
22.16 	infants up-to-date and evidence-based information about congenital CMV that has been 
22.17 	reviewed by experts with knowledge of the disease. The information shall include the 
22.18 	following:
22.19 	(1) the recommendation to consider testing for congenital CMV if the parent or legal 
22.20 	guardian of the infant elected not to have newborn screening performed under section 
22.21 	144.125, the infant failed a newborn hearing screening, or pregnancy history suggests 
22.22 	increased risk for congenital CMV infection;
22.23 	(2) the incidence of CMV;
22.24 	(3) the transmission of CMV to pregnant women and women who may become pregnant;
22.25 	(4) birth defects caused by congenital CMV;
22.26 	(5) available preventative measures to avoid the infection of women who are pregnant 
22.27 	or may become pregnant; and
22.28 	(6) resources available for families of children born with congenital CMV.
22.29 	(b) The commissioner shall follow existing department practice, inclusive of community 
22.30 	engagement, to ensure that the information in paragraph (a) is culturally and linguistically 
22.31 	appropriate for all recipients.
23.1 	(c) The commissioner shall establish an outreach program to:
23.2 	(1) educate women who may become pregnant, expectant parents, and parents of infants 
23.3 	about CMV; and
23.4 	(2) raise awareness for CMV among health care practitioners.
23.5 	(d) The Advisory Committee on Heritable and Congenital Disorders established under 
23.6 	section 144.1255 shall review congenital CMV for inclusion on the list of tests to be 
23.7 	performed under section 144.125. If the committee recommends and the commissioner 
23.8 	approves the recommendation of adding congenital CMV to the newborn screening panel, 
23.9 	the commissioner shall publish the addition in the State Register and the per specimen fee 
23.10 	for screening under section 144.125, subdivision 1, paragraph (c), shall be increased by 
23.11 	$43, for a total of $220 per specimen, effective upon publication in the State Register.

23.12 	Sec. 28. Minnesota Statutes 2024, section 144.1205, subdivision 2, is amended to read:
23.13 		Subd. 2.Initial and annual fee. (a) A licensee must pay an initial fee that is equivalent 
23.14 	to the annual fee upon issuance of the initial license.
23.15 	(b) A licensee must pay an annual fee at least 60 days before the anniversary date of the 
23.16 	issuance of the license. The annual fee is as follows:

23.17	TYPE
		LICENSE FEE
	
23.1923.18
	Academic broad scope - type A, B, or C
		$25,896
$34,500
		
23.2123.20
	Academic broad scope - type A, B, or C (4-8 locations)
		$31,075
$41,400
		
23.2323.22
	Academic broad scope - type A, B, or C (9 or more locations)
		$36,254
$48,300
		
23.2523.24
	Medical broad scope - type A
		$25,896
$34,500
		
23.2723.26
	Medical broad scope - type A (4-8 locations)
		$31,075
$41,400
		
23.2923.28
	Medical broad scope - type A (9 or more locations)
		$36,254
$48,300
		
23.30
23.31
23.32	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$4,784
$6,600
		
23.33
23.34
23.35	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies (4-8 locations)
		$5,740
$7,900
		
23.36
23.37
23.38	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies (9 or more locations)
		$6,697
$9,200
		
24.224.1
	Teletherapy
		$11,648
$15,500
		
24.424.3
	Gamma knife
		$11,648
$15,500
		
24.624.5
	Veterinary medicine
		$2,600
$3,500
		
24.824.7
	In vitro testing lab
		$2,600
$3,500
		
24.1024.9	Nuclear pharmacy
		$11,440
$15,300
		
24.1224.11
	Nuclear pharmacy (5 or more locations)
		$13,728
$18,300
		
24.1424.13
	Radiopharmaceutical distribution (10 CFR 32.72)
		$4,992
$6,700
		
24.15
24.16	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$11,440
$15,300
		
24.17
24.18	Radiopharmaceutical processing and distribution (10 CFR 
32.72) (5 or more locations)
		$13,728
$18,300
		
24.2024.19
	Medical sealed sources - distribution (10 CFR 32.74)
		$4,992
$6,700
		
24.21
24.22	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$11,440
$15,300
		
24.23
24.24	Medical sealed sources - processing and distribution (10 CFR 
32.74) (5 or more locations)
		$13,728
$18,300
		
24.2624.25
	Well logging - sealed sources
		$4,888
$6,600
		
24.27
24.28	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$2,600
$3,800
		
24.29
24.30	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (4-8 locations)
		$3,120
$4,500
		
24.31
24.32	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (9 or more locations)
		$3,640
$5,200
		
24.3424.33
	X-ray fluorescent analyzer
		$1,976
$2,700
		
24.3624.35
	Manufacturing and distribution - type A broad scope
		$25,896
$34,500
		
24.37
24.38	Manufacturing and distribution - type A broad scope (4-8 
locations)
		$31,075
$41,400
		
24.39
24.40	Manufacturing and distribution - type A broad scope (9 or more 
locations)
		$36,254
$48,300
		
24.4224.41
	Manufacturing and distribution - type B or C broad scope
		$22,880
$30,500
		
24.43
24.44	Manufacturing and distribution - type B or C broad scope (4-8 
locations)
		$27,456
$36,600
		
24.45
24.46	Manufacturing and distribution - type B or C broad scope (9 
or more locations)
		$32,032
$42,700
		
25.225.1
	Manufacturing and distribution - other
		$6,864
$9,200
		
25.425.3
	Manufacturing and distribution - other (4-8 locations)
		$8,236
$11,000
		
25.625.5
	Manufacturing and distribution - other (9 or more locations)
		$9,609
$12,800
		
25.825.7
	Nuclear laundry
		$24,232
$32,300
		
25.1025.9	Decontamination services
		$6,448
$8,600
		
25.1225.11
	Leak test services only
		$2,600
$3,500
		
25.1425.13
	Instrument calibration service only
		$2,600
$3,500
		
25.1625.15
	Service, maintenance, installation, source changes, etc.
		$6,448
$8,600
		
25.1825.17
	Waste disposal service, prepackaged only
		$7,800
$10,400
		
25.2025.19
	Waste disposal
		$10,816
$14,400
		
25.2225.21
	Distribution - general licensed devices (sealed sources)
		$2,288
$3,100
		
25.2425.23
	Distribution - general licensed material (unsealed sources)
		$1,456
$2,000
		
25.2625.25
	Industrial radiography - fixed or temporary location
		$12,792
$17,200
		
25.27
25.28	Industrial radiography - fixed or temporary location (5 or more 
locations)
		$16,629
$22,300
		
25.3025.29
	Irradiators, self-shielding
		$3,744
$5,000
		
25.3225.31
	Irradiators, other, less than 10,000 curies
		$6,968
$9,300
		
25.3425.33
	Research and development - type A, B, or C broad scope
		$12,376
$16,500
		
25.35
25.36	Research and development - type A, B, or C broad scope (4-8 
locations)
		$14,851
$19,800
		
25.37
25.38	Research and development - type A, B, or C broad scope (9 or 
more locations)
		$17,326
$23,100
		
25.4025.39
	Research and development - other
		$5,824
$7,800
		
25.4225.41
	Storage - no operations
		$2,600
$3,500
		
25.4425.43
	Source material - shielding
		$759
$1,100
		
25.4625.45
	Special nuclear material plutonium - neutron source in device
		$4,784
$6,400
		
26.1
26.2	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$4,784
$6,400
		
26.3
26.4	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$6,864
$9,200
		
26.626.5
	Accelerator-produced radioactive material
		$4,992
$6,700
		
26.826.7
	Nonprofit educational institutions
		$500
$700

26.9 	Sec. 29. Minnesota Statutes 2024, section 144.1205, subdivision 4, is amended to read:
26.10 		Subd. 4.Initial and renewal application fee. A licensee must pay an initial and a 
26.11 	renewal application fee according to this subdivision.

26.12	TYPE
	APPLICATION FEE
	
26.1426.13
	Academic broad scope - type A, B, or C
		$6,808
$9,100
		
26.1626.15
	Medical broad scope - type A
		$4,508
$6,000
		
26.17
26.18
26.19	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$1,748
$2,350
		
26.2126.20
	Teletherapy
		$6,348
$8,450
		
26.2326.22
	Gamma knife
		$6,348
$8,450
		
26.2526.24
	Veterinary medicine
		$1,104
$1,500
		
26.2726.26
	In vitro testing lab
		$1,104
$1,500
		
26.2926.28
	Nuclear pharmacy
		$5,612
$7,500
		
26.3126.30
	Radiopharmaceutical distribution (10 CFR 32.72)
		$2,484
$3,350
		
26.32
26.33	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$5,612
$7,500
		
26.3526.34
	Medical sealed sources - distribution (10 CFR 32.74)
		$2,484
$3,350
		
26.36
26.37	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$5,612
$7,500
		
26.3926.38
	Well logging - sealed sources
		$1,840
$2,450
		
26.40
26.41	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$1,104
$1,500
		
26.4326.42
	X-ray fluorescent analyzer
		$671
$900
		
27.227.1
	Manufacturing and distribution - type A, B, and C broad scope
		$6,854
$9,150
		
27.427.3
	Manufacturing and distribution - other
		$2,668
$3,550
		
27.627.5
	Nuclear laundry
		$11,592
$15,450
		
27.827.7
	Decontamination services
		$3,036
$4,050
		
27.1027.9	Leak test services only
		$1,104
$1,500
		
27.1227.11
	Instrument calibration service only
		$1,104
$1,500
		
27.1427.13
	Service, maintenance, installation, source changes, etc.
		$3,036
$4,050
		
27.1627.15
	Waste disposal service, prepackaged only
		$2,576
$3,450
		
27.1827.17
	Waste disposal
		$1,748
$2,350
		
27.2027.19
	Distribution - general licensed devices (sealed sources)
		$1,012
$1,350
		
27.2227.21
	Distribution - general licensed material (unsealed sources)
		$598
$800
		
27.2427.23
	Industrial radiography - fixed or temporary location
		$3,036
$4,050
		
27.2627.25
	Irradiators, self-shielding
		$1,656
$2,250
		
27.2827.27
	Irradiators, other, less than 10,000 curies
		$3,404
$4,550
		
27.3027.29
	Research and development - type A, B, or C broad scope
		$5,704
$7,600
		
27.3227.31
	Research and development - other
		$2,760
$3,700
		
27.3427.33
	Storage - no operations
		$1,104
$1,500
		
27.3627.35
	Source material - shielding
		$156
$250
		
27.3827.37
	Special nuclear material plutonium - neutron source in device
		$1,380
$1,850
		
27.39
27.40	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$1,380
$1,850
		
27.41
27.42	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$2,668
$3,550
		
27.4427.43
	Accelerator-produced radioactive material
		$4,715
$6,300
		
27.4627.45
	Nonprofit educational institutions
		$345
$500

28.1 	Sec. 30. Minnesota Statutes 2024, section 144.1205, subdivision 8, is amended to read:
28.2 		Subd. 8.Reciprocity fee. A licensee submitting an application for reciprocal recognition 
28.3 	of a materials license issued by another agreement state or the United States Nuclear 
28.4 	Regulatory Commission for a period of 180 days or less during a calendar year must pay 
28.5 	$2,400 $3,200. For a period of 181 days or more, the licensee must obtain a license under 
28.6 	subdivision 4.

28.7 	Sec. 31. Minnesota Statutes 2024, section 144.1205, subdivision 9, is amended to read:
28.8 		Subd. 9.Fees for license amendments. A licensee must pay a fee of $600 $800 to 
28.9 	amend a license as follows:
28.10 	(1) to amend a license requiring review including, but not limited to, addition of isotopes, 
28.11 	procedure changes, new authorized users, or a new radiation safety officer; or
28.12 	(2) to amend a license requiring review and a site visit including, but not limited to, 
28.13 	facility move or addition of processes.

28.14 	Sec. 32. Minnesota Statutes 2024, section 144.1205, subdivision 10, is amended to read:
28.15 		Subd. 10.Fees for general license registrations. A person required to register generally 
28.16 	licensed devices according to Minnesota Rules, part 4731.3215, must pay an annual 
28.17 	registration fee of $450 $600.

28.18 	Sec. 33. Minnesota Statutes 2024, section 144.121, subdivision 1a, is amended to read:
28.19 		Subd. 1a.Fees for ionizing radiation-producing equipment. (a) A facility with ionizing 
28.20 	radiation-producing equipment and other sources of ionizing radiation must pay an initial 
28.21 	or annual renewal registration fee consisting of a base facility fee of $100 $155 and an 
28.22 	additional fee for each x-ray tube, as follows:

28.2328.24	(1)
	medical or veterinary equipment
	$
	100
130
		
28.2528.26	(2)
	dental x-ray equipment
	$
	40
60
		
28.2728.28	(3)
	x-ray equipment not used on 
humans or animals
	$
	100
130
		
28.2928.30
28.31	(4)
	devices with sources of ionizing 
radiation not used on humans or 
animals
	$
	100
130
		
28.3228.33	(5)
	security screening system
	$
	100
160
		
29.129.2	(6)
	radiation therapy and accelerator 
x-ray equipment
	$
	1,000
		
29.329.4	(7)
	industrial accelerator x-ray 
equipment
	$
	300
		
29.5 	(b) A facility with radiation therapy and accelerator equipment must pay an initial or 
29.6 	annual registration fee of $500. A facility with an industrial accelerator must pay an initial 
29.7 	or annual registration fee of $150.
29.8 	(c) (b) Electron microscopy equipment is exempt from the registration fee requirements 
29.9 	of this section.
29.10 	(d) (c) For purposes of this section, a security screening system means ionizing 
29.11 	radiation-producing equipment designed and used for security screening of humans who 
29.12 	are in the custody of a correctional or detention facility, and used by the facility to image 
29.13 	and identify contraband items concealed within or on all sides of a human body. For purposes 
29.14 	of this section, a correctional or detention facility is a facility licensed under section 241.021 
29.15 	and operated by a state agency or political subdivision charged with detection, enforcement, 
29.16 	or incarceration in respect to state criminal and traffic laws. The commissioner shall adopt 
29.17 	rules to establish requirements for the use of security screening systems. Notwithstanding 
29.18 	section 14.125, the authority to adopt these rules does not expire.

29.19 	Sec. 34. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
29.20 	to read:
29.21 		Subd. 1e.Fee for service provider of ionizing radiation-producing equipment. A 
29.22 	service provider of ionizing radiation-producing equipment and other sources of ionizing 
29.23 	radiation must pay an initial or annual renewal fee of $115.

29.24 	Sec. 35. Minnesota Statutes 2024, section 144.121, subdivision 2, is amended to read:
29.25 		Subd. 2.Inspections. Periodic radiation safety inspections of the x-ray equipment and 
29.26 	other sources of ionizing radiation shall be made by the commissioner of health. The 
29.27 	frequency of safety inspections shall be prescribed by the commissioner on the basis of
29.28 	based on the frequency of radiation exposure risk to occupational and public health from
29.29 	use of the x-ray equipment and other source of ionizing radiation, provided that each source 
29.30 	shall be inspected at least once every four years.

30.1 	Sec. 36. Minnesota Statutes 2024, section 144.121, subdivision 5, is amended to read:
30.2 		Subd. 5.Examination for individual operating x-ray systems. (a) An individual in a 
30.3 	facility with x-ray systems for use on living humans that is registered under subdivision 1 
30.4 	may not operate, nor may the facility allow the individual to operate, x-ray systems unless 
30.5 	the individual has passed a national or state examination.
30.6 	(b) Individuals who may operate x-ray systems include:
30.7 	(1) an individual who has passed the American Registry of Radiologic Technologists 
30.8 	(ARRT) registry for radiography examination;
30.9 	(2) an individual who has passed the American Chiropractic Registry of Radiologic 
30.10 	Technologists (ACRRT) registry examination and is limited to radiography of spines and 
30.11 	extremities;
30.12 	(3) a registered limited scope x-ray operator and a registered bone densitometry equipment 
30.13 	operator who passed the examination requirements in paragraphs (d) and (e) and practices 
30.14 	according to subdivision 5a;
30.15 	(4) an x-ray operator who has the original certificate or the original letter of passing the 
30.16 	examination that was required before January 1, 2008, under Minnesota Statutes 2008, 
30.17 	section 144.121, subdivision 5a, paragraph (b), clause (1);
30.18 	(5) an individual who has passed the American Registry of Radiologic Technologists 
30.19 	(ARRT) registry for radiation therapy examination according to subdivision 5e;
30.20 	(6) a cardiovascular technologist according to subdivision 5c;
30.21 	(7) a nuclear medicine technologist according to subdivision 5d;
30.22 	(8) an individual who has passed the examination for a dental hygienist under section 
30.23 	150A.06 and only operates dental x-ray systems;
30.24 	(9) an individual who has passed the examination for a dental therapist under section 
30.25 	150A.06 and only operates dental x-ray systems;
30.26 	(10) an individual who has passed the examination for a dental assistant under section 
30.27 	150A.06 and only operates dental x-ray systems;
30.28 	(11) an individual who has passed the examination under Minnesota Rules, part 
30.29 	3100.8500, subpart 3 3100.1320, and only operates dental x-ray systems; and
30.30 	(12) a qualified practitioner who is licensed by a health-related licensing board with 
30.31 	active practice authority and is working within the practitioner's scope of practice.
31.1 	(c) Except for individuals under clauses (3) and (4), an individual who is participating 
31.2 	in a training or educational program in any of the occupations listed in paragraph (b) is 
31.3 	exempt from the examination requirement within the scope and for the duration of the 
31.4 	training or educational program.
31.5 	(d) The Minnesota examination for limited scope x-ray operators must include:
31.6 	(1) radiation protection, radiation physics and radiobiology, equipment operation and 
31.7 	quality assurance, image acquisition and technical evaluation, and patient interactions and 
31.8 	management; and
31.9 	(2) at least one of the following regions of the human anatomy: chest, extremities, skull 
31.10 	and sinus, spine, or podiatry. The examinations must include the anatomy of, and radiographic 
31.11 	positions and projections for, the specific regions.
31.12 	(e) The examination for bone densitometry equipment operators must include:
31.13 	(1) osteoporosis, bone physiology, bone health and patient education, patient preparation, 
31.14 	fundamental principals, biological effects of radiation, units of measurements, radiation 
31.15 	protection in bone densitometry, fundamentals of x-ray production, quality control, measuring 
31.16 	bone mineral testing, determining quality in bone mineral testing, file and database 
31.17 	management; and
31.18 	(2) dual x-ray absorptiometry scanning of the lumbar spine, proximal femur, and forearm. 
31.19 	The examination must include the anatomy, scan acquisition, and scan analysis for these 
31.20 	three procedures.
31.21 	(f) A limited scope x-ray operator, and a bone densitometry equipment operator, who 
31.22 	are required to take an examination under this subdivision must submit to the commissioner 
31.23 	a registration application for the examination and a $25 processing fee. The processing fee 
31.24 	shall be deposited in the state treasury and credited to the state government special revenue 
31.25 	fund.

31.26 	Sec. 37. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
31.27 	to read:
31.28 		Subd. 10.Service provider practice; service technician. (a) A service technician is a 
31.29 	service provider who performs one or more of the following, including but not limited to: 
31.30 	assembly, installation, calibration, equipment performance evaluation, preventive 
31.31 	maintenance, repair, replacement, or disabling of ionizing radiation-producing equipment 
31.32 	and other sources of ionizing radiation. A service technician may not perform an equipment 
32.1 	performance evaluation on computed tomography, medical cone beam computed tomography, 
32.2 	and fluoroscopy equipment.
32.3 	(b) In order to provide service technician services, a service provider must register with 
32.4 	the commissioner as a service technician, meet the applicable requirements in Minnesota 
32.5 	Rules, chapter 4732, and pay the fee in subdivision 1e.

32.6 	Sec. 38. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.7 	to read:
32.8 		Subd. 11.Service provider practice; vendor. (a) A vendor is a service provider who 
32.9 	performs one or more of the following services, including but not limited to: sales, leasing, 
32.10 	lending, transferring, disposal, or demonstration of ionizing radiation-producing equipment 
32.11 	and other sources of ionizing radiation.
32.12 	(b) In order to provide vendor services, a service provider must register with the 
32.13 	commissioner as a vendor, meet the applicable requirements in Minnesota Rules, chapter 
32.14 	4732, and pay the fee in subdivision 1e.

32.15 	Sec. 39. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.16 	to read:
32.17 		Subd. 12.Service provider practice; qualified medical physicist. (a) A qualified 
32.18 	medical physicist is a service provider who provides medical physics services and must be 
32.19 	certified in diagnostic medical physics, diagnostic radiological physics, radiological physics, 
32.20 	diagnostic imaging physics, or diagnostic radiology physics by the American Board of 
32.21 	Radiology, the American Board of Medical Physics, or the Canadian College of Physicists 
32.22 	in Medicine.
32.23 	(b) In order to provide medical physics services a service provider must register with 
32.24 	the commissioner as a qualified medical physicist, meet the applicable requirements in 
32.25 	Minnesota Rules, chapter 4732, and pay the fee in subdivision 1e.

32.26 	Sec. 40. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.27 	to read:
32.28 		Subd. 13.Service provider practice; qualified expert. (a) A qualified expert is a service 
32.29 	provider who provides expert physics services, and must be certified in the appropriate 
32.30 	fields or specialties in which physics services are provided by the American Board of Health 
32.31 	Physics, the American Board of Medical Physics, the American Board of Radiology, the 
33.1 	American Board of Science in Nuclear Medicine, or the Canadian College of Physicists in 
33.2 	Medicine.
33.3 	(b) In order to provide health physics services, a service provider must register with the 
33.4 	commissioner as a qualified expert, meet the applicable requirements in Minnesota Rules, 
33.5 	chapter 4732, and pay the fee in subdivision 1e.

33.6 	Sec. 41. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
33.7 	to read:
33.8 		Subd. 14.Service provider practice; physicist assistant. (a) A physicist assistant is a 
33.9 	service provider who provides expert physics or medical physics services under the 
33.10 	supervision of a qualified expert or a qualified medical physicist and must be deemed 
33.11 	competent by a qualified expert or a qualified medical physicist in the appropriate fields or 
33.12 	specialties in which services are provided.
33.13 	(b) In order to provide health physics or medical physics services under the supervision 
33.14 	of a qualified expert or a qualified medical physicist, a physicist assistant must register with 
33.15 	the commissioner as a physicist assistant, meet the applicable requirements in Minnesota 
33.16 	Rules, chapter 4732, and pay the fee under subdivision 1e.
33.17 	(c) Supervision as used in this subdivision refers to either personal or general supervision 
33.18 	of a physicist assistant by a qualified expert or a qualified medical physicist according to 
33.19 	Minnesota Rules, chapter 4732.

33.20 	Sec. 42. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
33.21 	to read:
33.22 		Subd. 15.Service provider compliance. A service provider registered with the 
33.23 	commissioner under Minnesota Rules, chapter 4732, must, upon renewal of registration, 
33.24 	comply with the applicable requirements under this section and submit the fee under 
33.25 	subdivision 1e.

33.26 	Sec. 43. Minnesota Statutes 2024, section 144.1215, is amended by adding a subdivision 
33.27 	to read:
33.28 		Subd. 5.Rulemaking authority. The commissioner shall adopt rules to implement this 
33.29 	section. Notwithstanding section 14.125, the authority to adopt these rules does not expire.

34.1 	Sec. 44. Minnesota Statutes 2024, section 144.1222, subdivision 1a, is amended to read:
34.2 		Subd. 1a.Fees. All plans and specifications for public pool and spa construction, 
34.3 	installation, or alteration or requests for a variance that are submitted to the commissioner 
34.4 	according to Minnesota Rules, part 4717.3975, shall be accompanied by the appropriate 
34.5 	fees. All public pool construction plans submitted for review after January 1, 2009, must 
34.6 	be certified by a professional engineer registered in the state of Minnesota. If the 
34.7 	commissioner determines, upon review of the plans, that inadequate fees were paid, the 
34.8 	necessary additional fees shall be paid before plan approval. For purposes of determining 
34.9 	fees, a project is defined as a proposal to construct or install a public pool, spa, special 
34.10 	purpose pool, or wading pool and all associated water treatment equipment and drains, 
34.11 	gutters, decks, water recreation features, spray pads, and those design and safety features 
34.12 	that are within five feet of any pool or spa. Plans submitted less than 30 days prior to 
34.13 	construction are subject to 50 percent of the original plan review fee. The commissioner 
34.14 	shall charge the following fees for plan review and inspection of public pools and spas and 
34.15 	for requests for variance from the public pool and spa rules:
34.16 	(1) each pool, $1,500 $1,600;
34.17 	(2) each spa pool, $800 $900;
34.18 	(3) each slide, $600 $650;
34.19 	(4) projects valued at $250,000 or more, the greater of the sum of the fees in clauses (1), 
34.20 	(2), and (3) or 0.5 percent of the documented estimated project cost to a maximum fee of 
34.21 	$15,000;
34.22 	(5) alterations to an existing pool without changing the size or configuration of the pool, 
34.23 	$600 $700;
34.24 	(6) removal or replacement of pool disinfection equipment only, $100 $200; and
34.25 	(7) request for variance from the public pool and spa rules, $500 $550.

34.26 	Sec. 45. [144.1223] REGISTERED SANITARIANS AND REGISTERED 
34.27 	ENVIRONMENTAL HEALTH SPECIALIST APPLICATION FEES.
34.28 	(a) Fees to be submitted with initial or renewal applications are as follows:
34.29 	(1) initial application fee, $55;
34.30 	(2) biennial renewal application fee, $55; and
35.1 	(3) penalty for late submission of renewal application, $20, if not renewed by designated 
35.2 	renewal date.
35.3 	(b) Additionally, a $5 technology fee must be paid with the initial registration or 
35.4 	registration renewal.

35.5 	Sec. 46. Minnesota Statutes 2024, section 144.125, subdivision 1, is amended to read:
35.6 		Subdivision 1.Duty to perform testing. (a) It is the duty of (1) the administrative officer 
35.7 	or other person in charge of each institution caring for infants 28 days or less of age, (2) the 
35.8 	person required in pursuance of the provisions of section 144.215, to register the birth of a 
35.9 	child, or (3) the nurse midwife or midwife in attendance at the birth, to arrange to have 
35.10 	administered to every infant or child in its care tests for heritable and congenital disorders 
35.11 	according to subdivision 2 and rules prescribed by the state commissioner of health.
35.12 	(b) Testing, recording of test results, reporting of test results, and follow-up of infants 
35.13 	with heritable congenital disorders, including hearing loss detected through the early hearing 
35.14 	detection and intervention program in section 144.966, shall be performed at the times and 
35.15 	in the manner prescribed by the commissioner of health.
35.16 	(c) The fee to support the newborn screening program, including tests administered 
35.17 	under this section and section 144.966, shall be $177 $184 per specimen. This fee amount 
35.18 	shall be deposited in the state treasury and credited to the state government special revenue 
35.19 	fund.
35.20 	(d) The fee to offset the cost of the support services provided under section 144.966, 
35.21 	subdivision 3a, shall be $15 per specimen. This fee shall be deposited in the state treasury 
35.22 	and credited to the general fund.

35.23 	Sec. 47. Minnesota Statutes 2024, section 144.125, subdivision 2, is amended to read:
35.24 		Subd. 2.Determination of tests to be administered. (a) The commissioner shall 
35.25 	periodically revise the list of tests to be administered for determining the presence of a 
35.26 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
35.27 	science, new and improved testing methods, or other factors that will improve the public 
35.28 	health. In determining whether a test must be administered, the commissioner shall take 
35.29 	into consideration the adequacy of analytical methods to detect the heritable or congenital 
35.30 	disorder, the ability to treat or prevent medical conditions caused by the heritable or 
35.31 	congenital disorder, and the severity of the medical conditions caused by the heritable or 
35.32 	congenital disorder. The list of tests to be performed may be revised if the changes are 
36.1 	recommended by the advisory committee established under section 144.1255, approved by 
36.2 	the commissioner, and published in the State Register. The revision is exempt from the 
36.3 	rulemaking requirements in chapter 14, and sections 14.385 and 14.386 do not apply.
36.4 	(b) The commissioner shall revise the list of tests to be administered for determining 
36.5 	the presence of a heritable or congenital disorder to include metachromatic leukodystrophy 
36.6 	(MLD).

36.7 	Sec. 48. Minnesota Statutes 2024, section 144.3831, subdivision 1, is amended to read:
36.8 		Subdivision 1.Fee setting. The commissioner of health may assess an annual fee of 
36.9 	$9.72 $15.22 for every service connection to a public water supply that is owned or operated 
36.10 	by a home rule charter city, a statutory city, a city of the first class, or a town. The 
36.11 	commissioner of health may also assess an annual fee for every service connection served 
36.12 	by a water user district defined in section 110A.02.

36.13 	Sec. 49. Minnesota Statutes 2024, section 144.55, subdivision 1a, is amended to read:
36.14 		Subd. 1a.License fee. The annual license fee for outpatient surgical centers is $1,512
36.15 	$1,966.

36.16 	Sec. 50. Minnesota Statutes 2024, section 144.554, is amended to read:
36.17 	144.554 HEALTH FACILITIES CONSTRUCTION PLAN SUBMITTAL AND 
36.18 	FEES.
36.19 	For hospitals, nursing homes, assisted living facilities, boarding care homes, residential 
36.20 	hospices, supervised living facilities, freestanding outpatient surgical centers, and end-stage 
36.21 	renal disease facilities, the commissioner shall collect a fee for the review and approval of 
36.22 	architectural, mechanical, and electrical plans and specifications submitted before 
36.23 	construction begins for each project relative to construction of new buildings, additions to 
36.24 	existing buildings, or remodeling or alterations of existing buildings. All fees collected in 
36.25 	this section shall be deposited in the state treasury and credited to the state government 
36.26 	special revenue fund. Fees must be paid at the time of submission of final plans for review 
36.27 	and are not refundable. The fee is calculated as follows:

36.28	Construction project total estimated cost
	Fee
	
36.29	$0 - $10,000
	$30 $45
	
36.30	$10,001 - $50,000
	$150 $225
	
36.31	$50,001 - $100,000
	$300 $450
	
36.32	$100,001 - $150,000
	$450 $675
	
37.1	$150,001 - $200,000
	$600 $900
	
37.2	$200,001 - $250,000
	$750 $1,125
	
37.3	$250,001 - $300,000
	$900 $1,350
	
37.4	$300,001 - $350,000
	$1,050 $1,575
	
37.5	$350,001 - $400,000
	$1,200 $1,800
	
37.6	$400,001 - $450,000
	$1,350 $2,025
	
37.7	$450,001 - $500,000
	$1,500 $2,250
	
37.8	$500,001 - $550,000
	$1,650 $2,475
	
37.9	$550,001 - $600,000
	$1,800 $2,700
	
37.10	$600,001 - $650,000
	$1,950 $2,925
	
37.11	$650,001 - $700,000
	$2,100 $3,150
	
37.12	$700,001 - $750,000
	$2,250 $3,375
	
37.13	$750,001 - $800,000
	$2,400 $3,600
	
37.14	$800,001 - $850,000
	$2,550 $3,825
	
37.15	$850,001 - $900,000
	$2,700 $4,050
	
37.16	$900,001 - $950,000
	$2,850 $4,275
	
37.17	$950,001 - $1,000,000
	$3,000 $4,500
	
37.18	$1,000,001 - $1,050,000
	$3,150 $4,725
	
37.19	$1,050,001 - $1,100,000
	$3,300 $4,950
	
37.20	$1,100,001 - $1,150,000
	$3,450 $5,175
	
37.21	$1,150,001 - $1,200,000
	$3,600 $5,400
	
37.22	$1,200,001 - $1,250,000
	$3,750 $5,625
	
37.23	$1,250,001 - $1,300,000
	$3,900 $5,850
	
37.24	$1,300,001 - $1,350,000
	$4,050 $6,075
	
37.25	$1,350,001 - $1,400,000
	$4,200 $6,300
	
37.26	$1,400,001 - $1,450,000
	$4,350 $6,525
	
37.27	$1,450,001 - $1,500,000
	$4,500 $6,750
	
37.28	$1,500,001 and over - $2,000,000
	$4,800 $7,200
	
37.29	$2,000,001 - $3,000,000
	$7,650
	
37.30	$3,000,001 - $4,000,000
	$8,100
	
37.31	$4,000,001 - $7,000,000
	$8,550
	
37.32	$7,000,001 - $15,000,000
	$9,000
	
37.33	$15,000,001 - $50,000,000
	$9,450
	
37.34	$50,000,001 and over
	$9,900

38.1 	Sec. 51. Minnesota Statutes 2024, section 144.562, subdivision 2, is amended to read:
38.2 		Subd. 2.Eligibility for license condition. (a) A hospital is not eligible to receive a 
38.3 	license condition for swing beds unless (1) it either has a licensed bed capacity of less than 
38.4 	50 beds defined in the federal Medicare regulations, Code of Federal Regulations, title 42, 
38.5 	section 482.66, or it has a licensed bed capacity of 50 beds or more and has swing beds that 
38.6 	were approved for Medicare reimbursement before May 1, 1985, or it has a licensed bed 
38.7 	capacity of less than 65 beds and the available nursing homes within 50 miles have had, in 
38.8 	the aggregate, an average occupancy rate of 96 percent or higher in the most recent two 
38.9 	years as documented on the statistical reports to the Department of Health; and (2) it is 
38.10 	located in a rural area as defined in the federal Medicare regulations, Code of Federal 
38.11 	Regulations, title 42, section 482.66.
38.12 	(b) Except for those critical access hospitals established under section 144.1483, clause 
38.13 	(9), and section 1820 of the federal Social Security Act, United States Code, title 42, section 
38.14 	1395i-4, that have an attached nursing home or that owned a nursing home located in the 
38.15 	same municipality as of May 1, 2005, eligible hospitals are allowed a total number of days 
38.16 	of swing bed use per year as provided in paragraph (c). Critical access hospitals that have 
38.17 	an attached nursing home or that owned a nursing home located in the same municipality 
38.18 	as of May 1, 2005, are allowed swing bed use as provided in federal law. A critical access 
38.19 	hospital described in section 144.5621 is allowed an unlimited number of days of swing 
38.20 	bed use per year.
38.21 	(c) An eligible hospital is allowed a total of 3,000 days of swing bed use in calendar 
38.22 	year 2020. Beginning in calendar year 2021, and for each subsequent calendar year until 
38.23 	calendar year 2027, the total number of days of swing bed use per year is increased by 200 
38.24 	swing bed use days. Beginning in calendar year 2028, an eligible hospital is allowed a total 
38.25 	of 4,500 days of swing bed use per year.
38.26 	(d) Days of swing bed use for medical care that an eligible hospital has determined are 
38.27 	charity care shall not count toward the applicable limit in paragraph (b) or (c). For purposes 
38.28 	of this paragraph, "charity care" means care that an eligible hospital provided for free or at 
38.29 	a discount to persons who cannot afford to pay and for which the eligible hospital did not 
38.30 	expect payment.
38.31 	(e) Days of swing bed use for care of a person who has been denied admission to every 
38.32 	Medicare-certified skilled nursing facility within 25 miles of the eligible hospital shall not 
38.33 	count toward the applicable limit in paragraphs (b) and (c). Eligible hospitals must maintain 
38.34 	documentation that they have contacted each skilled nursing facility within 25 miles to 
39.1 	determine if any skilled nursing facility beds are available and if the skilled nursing facilities 
39.2 	are willing to admit the patient. Skilled nursing facilities that are contacted must admit the 
39.3 	patient or deny admission within 24 hours of being contacted by the eligible hospital. Failure 
39.4 	to respond within 24 hours is deemed a denial of admission.
39.5 	(f) Except for critical access hospitals that have an attached nursing home or that owned 
39.6 	a nursing home located in the same municipality as of May 1, 2005, the commissioner of 
39.7 	health may approve swing bed use beyond 2,000 days as long as there are no Medicare 
39.8 	certified skilled nursing facility beds available within 25 miles of that hospital that are 
39.9 	willing to admit the patient and the patient agrees to the referral being sent to the skilled 
39.10 	nursing facility. Critical access hospitals exceeding 2,000 swing bed days must maintain 
39.11 	documentation that they have contacted skilled nursing facilities within 25 miles to determine 
39.12 	if any skilled nursing facility beds are available that are willing to admit the patient and the 
39.13 	patient agrees to the referral being sent to the skilled nursing facility. This paragraph expires 
39.14 	January 1, 2020.
39.15 	(g) After reaching 2,000 days of swing bed use in a year, an eligible hospital to which 
39.16 	this limit applies may admit six additional patients to swing beds each year without seeking 
39.17 	approval from the commissioner or being in violation of this subdivision. These six swing 
39.18 	bed admissions are exempt from the limit of 2,000 annual swing bed days for hospitals 
39.19 	subject to this limit. This paragraph expires January 1, 2020.
39.20 	(h) A health care system that is in full compliance with this subdivision may allocate its 
39.21 	total limit of swing bed days among the hospitals within the system, provided that no hospital 
39.22 	in the system without an attached nursing home may exceed 2,000 swing bed days per year. 
39.23 	This paragraph expires January 1, 2020.

39.24 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
39.25 	whichever is later. The commissioners of health and human services shall inform the revisor 
39.26 	of statutes when federal approval is obtained.

39.27 	Sec. 52. Minnesota Statutes 2024, section 144.562, subdivision 3, is amended to read:
39.28 		Subd. 3.Approval of license condition. (a) The commissioner of health shall approve 
39.29 	a license condition for swing beds if the hospital meets all of the criteria of this subdivision.
39.30 	(b) The hospital must meet the eligibility criteria in subdivision 2.
39.31 	(c) The hospital must be in compliance with the Medicare conditions of participation 
39.32 	for swing beds under Code of Federal Regulations, title 42, section 482.66.
40.1 	(d) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
40.2 	the length of stay of a patient receiving services in a swing bed to not more than 40 days, 
40.3 	or the duration of Medicare eligibility, unless the commissioner of health approves a greater 
40.4 	length of stay in an emergency situation. To determine whether an emergency situation 
40.5 	exists, the commissioner shall require the hospital to provide documentation that continued 
40.6 	services in the swing bed are required by the patient; that no skilled nursing facility beds 
40.7 	are available within 25 miles from the patient's home, or in some more remote facility of 
40.8 	the resident's choice, that can provide the appropriate level of services required by the 
40.9 	patient; and that other alternative services are not available to meet the needs of the patient. 
40.10 	If the commissioner approves a greater length of stay, the hospital shall develop a plan 
40.11 	providing for the discharge of the patient upon the availability of a nursing home bed or 
40.12 	other services that meet the needs of the patient. Permission to extend a patient's length of 
40.13 	stay must be requested by the hospital at least ten days prior to the end of the maximum 
40.14 	length of stay.
40.15 	(e) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
40.16 	admission to a swing bed only to (1) patients who have been hospitalized and not yet 
40.17 	discharged from the facility, or (2) patients who are transferred directly from an acute care 
40.18 	hospital.
40.19 	(f) The hospital must agree, in writing, to report to the commissioner of health by 
40.20 	December 1, 1985, and annually thereafter, in a manner required by the commissioner (1) 
40.21 	the number of patients readmitted to a swing bed within 60 days of a patient's discharge 
40.22 	from the facility, (2) the hospital's charges for care in a swing bed during the reporting 
40.23 	period with a description of the care provided for the rate charged, and (3) the number of 
40.24 	beds used by the hospital for transitional care and similar subacute inpatient care.
40.25 	(g) The hospital must agree, in writing, to report statistical data on the utilization of the 
40.26 	swing beds on forms supplied by the commissioner. The data must include the number of 
40.27 	swing beds, the number of admissions to and discharges from swing beds, Medicare 
40.28 	reimbursed patient days, total patient days, and other information required by the 
40.29 	commissioner to assess the utilization of swing beds.

40.30 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
40.31 	whichever is later. The commissioners of health and human services shall inform the revisor 
40.32 	of statutes when federal approval is obtained.

41.1 	Sec. 53. [144.5621] SWING BED APPROVAL; EXCEPTIONS.
41.2 	The conditions and limitations in section 144.562, paragraphs (d) and (e), do not apply 
41.3 	to any hospital located in Cook County that:
41.4 	(1) is designated as a critical access hospital under section 144.1483, clause (9), and 
41.5 	United States Code, title 42, section 1395i-4; and
41.6 	(2) has an attached nursing home.
41.7 	Any swing bed located in a hospital described in this section may be used to provide nursing 
41.8 	care without requiring a prior hospital stay. The nursing care provided to a patient in a swing 
41.9 	bed is a covered medical assistance service under section 256B.0625, subdivision 2b.

41.10 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
41.11 	whichever is later. The commissioners of health and human services shall inform the revisor 
41.12 	of statutes when federal approval is obtained.

41.13 	Sec. 54. Minnesota Statutes 2024, section 144.563, is amended to read:
41.14 	144.563 NURSING SERVICES PROVIDED IN A HOSPITAL; PROHIBITED 
41.15 	PRACTICES.
41.16 	A hospital that has been granted a license condition under section 144.562or 144.5621 
41.17 	must not provide to patients not reimbursed by Medicare or medical assistance the types of 
41.18 	services that would be usually and customarily provided and reimbursed under medical 
41.19 	assistance or Medicare as services of a skilled nursing facility or intermediate care facility 
41.20 	for more than 42 days and only for patients who have been hospitalized and no longer require 
41.21 	an acute level of care. Permission to extend a patient's length of stay may be granted by the 
41.22 	commissioner if requested by the physician at least ten days prior to the end of the maximum 
41.23 	length of stay.

41.24 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
41.25 	whichever is later. The commissioners of health and human services shall inform the revisor 
41.26 	of statutes when federal approval is obtained.

41.27 	Sec. 55. Minnesota Statutes 2024, section 144E.35, is amended to read:
41.28 	144E.35 REIMBURSEMENT TO AMBULANCE SERVICES FOR VOLUNTEER
41.29 	EDUCATION COSTS.
41.30 		Subdivision 1.Repayment for volunteer Reimbursement for education costs; 
41.31 	ambulance service eligibility. A licensed ambulance service shall be reimbursed by the 
42.1 	director for the necessary expense of the initial education of a volunteer ambulance attendant 
42.2 	upon successful completion by the attendant of an EMT education course, or a continuing 
42.3 	education course for EMT care, or both, which has been approved by the director, pursuant 
42.4 	to section 144E.285 (a) Except as provided in subdivision 3, the director must reimburse 
42.5 	all eligible Minnesota licensed ambulance services that apply for reimbursement under this 
42.6 	section for the necessary expenses of initial EMR and EMT education and EMR and EMT 
42.7 	continuing education for ambulance attendants who satisfy the criteria in subdivision 2. 
42.8 	Reimbursement may include tuition, transportation, food, lodging, hourly payment for the 
42.9 	time spent in the education course, and other necessary expenditures, except that in no 
42.10 	instance shall a volunteer licensed ambulance attendant service be reimbursed more than 
42.11 	$900:
42.12 	(1) $1,200 for an ambulance attendant's successful completion of an initial EMT education 
42.13 	course, and $375;
42.14 	(2) $400 for an ambulance attendant's successful completion of a an EMT continuing 
42.15 	education course;
42.16 	(3) $600 for an ambulance attendant's successful completion of an initial EMR education 
42.17 	course; and
42.18 	(4) $200 for an ambulance attendant's successful completion of an EMR continuing 
42.19 	education course.
42.20 	(b) To be eligible for reimbursement, a licensed ambulance service must have responded 
42.21 	to 5,000 or fewer calls in the most recent calendar year.
42.22 		Subd. 2.Reimbursement provisions Ambulance attendant criteria. Reimbursement 
42.23 	must be paid under provisions of this section when documentation is provided to the director 
42.24 	that the individualambulance attendant:
42.25 	(1) successfully completed an initial EMR or EMT education course approved by the 
42.26 	director under section 144E.285, a continuing education course for EMR or EMT care 
42.27 	approved by the director under section 144E.285, or both; and
42.28 	(2) has served for one year from the date of the final certification exam as an active 
42.29 	member of a Minnesota licensed ambulance service.
42.30 		Subd. 3.Discontinuance of reimbursement. If the state is unable to meet its financial 
42.31 	obligations under subdivision 1 as the obligations become due, the director must discontinue 
42.32 	reimbursing ambulance services for education costs until the state is again able to meet the 
42.33 	financial obligations under subdivision 1 as the obligations become due. An ambulance 
43.1 	service whose application is not approved due to lack of funding may resubmit the application 
43.2 	in the next fiscal year.

43.3 	Sec. 56. [144E.38] AMBULANCE SERVICE TRAINING AND STAFFING GRANT 
43.4 	PROGRAM.
43.5 		Subdivision 1.Definition. For purposes of this section, "employee" has the meaning 
43.6 	given in section 181.960, subdivision 2.
43.7 		Subd. 2.Grant program. The director must establish and administer a program to award 
43.8 	grants to eligible ambulance services for certain costs to train ambulance service employees 
43.9 	as emergency medical technicians and staff the ambulance service.
43.10 		Subd. 3.Eligible ambulance services. To be eligible for a grant under this section, an 
43.11 	ambulance service must:
43.12 	(1) be licensed under this chapter; and
43.13 	(2) in the calendar year prior to the year in which the ambulance service first applies for 
43.14 	a grant under this section, have had at least 50 percent of its staffing provided by emergency 
43.15 	medical technicians.
43.16 		Subd. 4.Application. An eligible ambulance service seeking a grant under this section 
43.17 	must apply to the director in a form and manner and according to a timeline specified by 
43.18 	the director. In its application, the eligible ambulance service must specify the number of 
43.19 	individuals it plans to hire using the grant money, the number of employee training hours 
43.20 	it plans to fund using the grant money, and other information required by the director.
43.21 		Subd. 5.Allowable uses of grant money; maximum grant amount. (a) An ambulance 
43.22 	service must use grant money awarded under this section only for one or more of the 
43.23 	following:
43.24 	(1) tuition for employees attending an emergency medical technician (EMT) education 
43.25 	program approved by the director;
43.26 	(2) employee examination fees for EMT certification;
43.27 	(3) fees for background studies for new EMT employees; and
43.28 	(4) incurred wage and benefit costs of employees while attending an EMT education 
43.29 	program or program-related activities. Wage and benefit costs under this clause must be 
43.30 	commensurate with the wages and benefits the ambulance service provides to an entry-level 
43.31 	EMT and must not exceed $26 per hour.
44.1 	(b) The grant amount awarded to an ambulance service must not exceed the amount 
44.2 	needed for the costs in paragraph (a).
44.3 		Subd. 6.Grant program oversight. An ambulance service receiving a grant under this 
44.4 	section must provide the director with information necessary for the director to administer 
44.5 	and evaluate the grant program.
44.6 		Subd. 7.Reporting to municipalities. (a) In order to be eligible to receive a grant under 
44.7 	this section, an ambulance service must collect and report to each respective municipality 
44.8 	in the licensee's primary service area prehospital care data for all emergency responses 
44.9 	provided by the licensee within the boundaries of each respective municipality. For purposes 
44.10 	of this subdivision, "municipality" means a city or town.
44.11 	(b) A licensee must collect and report the following prehospital care data items as 
44.12 	provided in paragraph (a):
44.13 	(1) total number of emergency ambulance calls;
44.14 	(2) dispatch reason;
44.15 	(3) type of emergency service requested for each emergency ambulance call;
44.16 	(4) response mode to scene;
44.17 	(5) fee schedule for service;
44.18 	(6) percent transport disposition;
44.19 	(7) transport destination;
44.20 	(8) unit hour utilization by service area; and
44.21 	(9) mutual aid given and received by municipality.
44.22 	(c) A licensee must provide the report of prehospital care data of all data items listed in 
44.23 	paragraph (b) to the governing body of the municipality by February 15 of each year.

44.24 	Sec. 57. Minnesota Statutes 2024, section 144G.45, subdivision 6, is amended to read:
44.25 		Subd. 6.New construction; plans. (a) For all new licensure and construction beginning 
44.26 	on or after August 1, 2021, the following must be provided to the commissioner:
44.27 	(1) architectural and engineering plans and specifications for new construction must be 
44.28 	prepared and signed by architects and engineers who are registered in Minnesota. Final 
44.29 	working drawings and specifications for proposed construction must be submitted to the 
44.30 	commissioner for review and approval;
45.1 	(2) final architectural plans and specifications must include elevations and sections 
45.2 	through the building showing types of construction, and must indicate dimensions and 
45.3 	assignments of rooms and areas, room finishes, door types and hardware, elevations and 
45.4 	details of nurses' work areas, utility rooms, toilet and bathing areas, and large-scale layouts 
45.5 	of dietary and laundry areas. Plans must show the location of fixed equipment and sections 
45.6 	and details of elevators, chutes, and other conveying systems. Fire walls and smoke partitions 
45.7 	must be indicated. The roof plan must show all mechanical installations. The site plan must 
45.8 	indicate the proposed and existing buildings, topography, roadways, walks and utility service 
45.9 	lines; and
45.10 	(3) final mechanical and electrical plans and specifications must address the complete 
45.11 	layout and type of all installations, systems, and equipment to be provided. Heating plans 
45.12 	must include heating elements, piping, thermostatic controls, pumps, tanks, heat exchangers, 
45.13 	boilers, breeching, and accessories. Ventilation plans must include room air quantities, 
45.14 	ducts, fire and smoke dampers, exhaust fans, humidifiers, and air handling units. Plumbing 
45.15 	plans must include the fixtures and equipment fixture schedule; water supply and circulating 
45.16 	piping, pumps, tanks, riser diagrams, and building drains; the size, location, and elevation 
45.17 	of water and sewer services; and the building fire protection systems. Electrical plans must 
45.18 	include fixtures and equipment, receptacles, switches, power outlets, circuits, power and 
45.19 	light panels, transformers, and service feeders. Plans must show location of nurse call signals, 
45.20 	cable lines, fire alarm stations, and fire detectors and emergency lighting.
45.21 	(b) Unless construction is begun within one year after approval of the final working 
45.22 	drawing and specifications, the drawings must be resubmitted for review and approval.
45.23 	(c) The commissioner must be notified within 30 days before completion of construction 
45.24 	so that the commissioner can make arrangements for a final inspection by the commissioner.
45.25 	(d) At least one set of complete life safety plans, including changes resulting from 
45.26 	remodeling or alterations, must be kept on file in the facility.
45.27 	(e) For new construction beginning on or after July 1, 2025, the licensee must comply 
45.28 	with section 144.554 to submit applicable construction plans and fees to the commissioner.

45.29 	Sec. 58. [145.9231] EPILEPSY AND RELATED SEIZURE DISORDERS; DATA 
45.30 	COLLECTION AND STATE COORDINATION PLAN.
45.31 		Subdivision 1.Data collection. The commissioner of health must collect, analyze, and 
45.32 	report data on epilepsy and related seizure disorders in Minnesota. The data must include 
46.1 	number of diagnoses, clinical outcomes, mortality rates, and related population health data 
46.2 	for each calendar year. Deidentified data must be made publicly available.
46.3 		Subd. 2.State coordination plan. The commissioner of health must use the data on 
46.4 	epilepsy and seizure disorders to inform statewide efforts and build coordinated systems 
46.5 	and partnerships to support community-led and culturally responsive strategies to ensure 
46.6 	that Minnesotans at risk for or living with epilepsy and seizure disorders and their caregivers 
46.7 	have equitable access to opportunities and resources to support their well-being and quality 
46.8 	of life. The commissioner of health must use the data to identify areas of need and 
46.9 	recommend strategies to address gaps.

46.10 	Sec. 59. Minnesota Statutes 2024, section 151.555, subdivision 6, is amended to read:
46.11 		Subd. 6.Standards and procedures for accepting donations of drugs and supplies
46.12 	and purchasing drugs from licensed wholesalers. (a) Notwithstanding any other law or 
46.13 	rule, a donor may donate drugs or medical supplies to the central repository or a local 
46.14 	repository if the drug or supply meets the requirements of this section as determined by a 
46.15 	pharmacist or practitioner who is employed by or under contract with the central repository 
46.16 	or a local repository.
46.17 	(b) A drug is eligible for donation under the medication repository program if the 
46.18 	following requirements are met:
46.19 	(1) the drug's expiration date is at least six months after the date the drug was donated. 
46.20 	If a donated drug bears an expiration date that is less than six months from the donation 
46.21 	date, the drug may be accepted and distributed if the drug is in high demand and can be 
46.22 	dispensed for use by a patient before the drug's expiration date;
46.23 	(2) the drug is in its original, sealed, unopened, tamper-evident packaging that includes 
46.24 	the expiration date. Single-unit-dose drugs may be accepted if the single-unit-dose packaging 
46.25 	is unopened;
46.26 	(3) the drug or the packaging does not have any physical signs of tampering, misbranding, 
46.27 	deterioration, compromised integrity, or adulteration;
46.28 	(4) the drug does not require storage temperatures other than normal room temperature 
46.29 	as specified by the manufacturer or United States Pharmacopoeia, unless the drug is being 
46.30 	donated directly by its manufacturer, a wholesale drug distributor, or a pharmacy located 
46.31 	in Minnesota; and
46.32 	(5) the drug is not a controlled substance.
47.1 	(c) A medical supply is eligible for donation under the medication repository program 
47.2 	if the following requirements are met:
47.3 	(1) the supply has no physical signs of tampering, misbranding, or alteration and there 
47.4 	is no reason to believe it has been adulterated, tampered with, or misbranded;
47.5 	(2) the supply is in its original, unopened, sealed packaging; and
47.6 	(3) if the supply bears an expiration date, the date is at least six months later than the 
47.7 	date the supply was donated. If the donated supply bears an expiration date that is less than 
47.8 	six months from the date the supply was donated, the supply may be accepted and distributed 
47.9 	if the supply is in high demand and can be dispensed for use by a patient before the supply's 
47.10 	expiration date.
47.11 	(d) The board shall develop the medication repository donor form and make it available 
47.12 	on the board's website. Prior to the first donation from a new donor, a central repository or 
47.13 	local repository shall verify and record the following information on the donor form:
47.14 	(1) the donor's name, address, phone number, and license number, if applicable;
47.15 	(2) that the donor will only make donations in accordance with the program;
47.16 	(3) to the best of the donor's knowledge, only drugs or supplies that have been properly 
47.17 	stored under appropriate temperature and humidity conditions will be donated; and
47.18 	(4) to the best of the donor's knowledge, only drugs or supplies that have never been 
47.19 	opened, used, tampered with, adulterated, or misbranded will be donated.
47.20 	(e) Notwithstanding any other law or rule, a central repository or a local repository may 
47.21 	receive donated drugs from donors. Donated drugs and supplies may be shipped or delivered 
47.22 	to the premises of the central repository or a local repository, and shall be inspected by a 
47.23 	pharmacist or an authorized practitioner who is employed by or under contract with the 
47.24 	repository and who has been designated by the repository prior to dispensing. A drop box 
47.25 	must not be used to deliver or accept donations.
47.26 	(f) The central repository and local repository shall maintain a written or electronic 
47.27 	inventory of all drugs and supplies donated to the repository upon acceptance of each drug 
47.28 	or supply. For each drug, the inventory must include the drug's name, strength, quantity, 
47.29 	manufacturer, expiration date, and the date the drug was donated. For each medical supply, 
47.30 	the inventory must include a description of the supply, its manufacturer, the date the supply 
47.31 	was donated, and, if applicable, the supply's brand name and expiration date. The board 
47.32 	may waive the requirement under this paragraph if an entity is under common ownership 
48.1 	or control with a central repository or local repository and either the entity or the repository 
48.2 	maintains an inventory containing all the information required under this paragraph.
48.3 	(g) The central repository may purchase a drug from a wholesaler licensed by the Board 
48.4 	of Pharmacy to fill prescriptions for eligible patients when the repository does not have a 
48.5 	sufficient supply of donated drugs to fill the prescription. The central repository may use 
48.6 	any purchased drugs remaining after filling the prescriptions for which the drugs were 
48.7 	initially purchased to fill other prescriptions. Whenever possible, the repository must use 
48.8 	donated drugs to fill prescriptions.

48.9 	Sec. 60. Minnesota Statutes 2024, section 151.555, subdivision 10, is amended to read:
48.10 		Subd. 10.Distribution of donated drugs and supplies. (a) The central repository and 
48.11 	local repositories may distribute drugs and supplies donated under the medication repository 
48.12 	program to other participating repositories for use pursuant to this program.
48.13 	(b) A local repository that elects not to dispense donated drugs or supplies that are 
48.14 	suitable for donation and dispensing must transfer all those donated drugs and supplies to 
48.15 	the central repository. A copy of the donor form that was completed by the original donor 
48.16 	under subdivision 6 must be provided to the central repository at the time of transfer. A 
48.17 	local repository must dispose of drugs and supplies in its possession that are not suitable 
48.18 	for donation or dispensing pursuant to subdivision 7.

48.19 	Sec. 61. Minnesota Statutes 2024, section 157.16, subdivision 2, is amended to read:
48.20 		Subd. 2.License renewal. Initial and renewal licenses for all food and beverage service 
48.21 	establishments, youth camps, hotels, motels, lodging establishments, public pools, and 
48.22 	resorts shall be issued on an annual basis. Any person who operates a place of business after 
48.23 	the expiration date of a license or without having submitted an application and paid the fee 
48.24 	shall be deemed to have violated the provisions of this chapter and shall be subject to 
48.25 	enforcement action, as provided in the Health Enforcement Consolidation Act, sections 
48.26 	144.989 to 144.993. In addition, a penalty of $60 $100 shall be added to the total of the 
48.27 	license fee for any food and beverage service establishment operating without a license as 
48.28 	a mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special 
48.29 	event food stand, and a penalty of $120 $200 shall be added to the total of the license fee 
48.30 	for all restaurants, food carts, hotels, motels, lodging establishments, youth camps, public 
48.31 	pools, and resorts operating without a license for a period of up to 30 days. A late fee of 
48.32 	$360 $450 shall be added to the license fee for establishments operating more than 30 days 
48.33 	without a license.

49.1 	Sec. 62. Minnesota Statutes 2024, section 157.16, subdivision 2a, is amended to read:
49.2 		Subd. 2a.Food manager certification. An applicant for certification or certification 
49.3 	renewal as a food manager must submit to the commissioner a $35 $45 nonrefundable 
49.4 	certification fee payable to the Department of Health. The commissioner shall issue a 
49.5 	duplicate certificate to replace a lost, destroyed, or mutilated certificate if the applicant 
49.6 	submits a completed application on a form provided by the commissioner for a duplicate 
49.7 	certificate and pays $20 $25 to the department for the cost of duplication. In addition, a $5 
49.8 	technology fee must be paid with the initial certification, certification renewal, or duplicate 
49.9 	certificate application.

49.10 	Sec. 63. Minnesota Statutes 2024, section 157.16, subdivision 3, is amended to read:
49.11 		Subd. 3.Establishment fees; definitions. (a) The following fees are required for food 
49.12 	and beverage service establishments, youth camps, hotels, motels, lodging establishments, 
49.13 	public pools, and resorts licensed under this chapter. Food and beverage service 
49.14 	establishments must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), 
49.15 	or (4). The license fee for new operators previously licensed under this chapter for the same 
49.16 	calendar year is one-half of the appropriate annual license fee, plus any penalty that may 
49.17 	be required. The license fee for operators opening on or after October 1 is one-half of the 
49.18 	appropriate annual license fee, plus any penalty that may be required.
49.19 	(b) All food and beverage service establishments, except special event food stands, and 
49.20 	all hotels, motels, lodging establishments, public pools, and resorts shall pay an annual base 
49.21 	fee of $165 $300.
49.22 	(c) A special event food stand shall pay a flat fee of $55 $75 annually. "Special event 
49.23 	food stand" means a fee category where food is prepared or served in conjunction with 
49.24 	celebrations, county fairs, or special events from a special event food stand as defined in 
49.25 	section 157.15.
49.26 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
49.27 	establishment, other than a special event food stand and a school concession stand, and each 
49.28 	hotel, motel, lodging establishment, public pool, and resort shall pay an additional annual 
49.29 	fee for each fee category, additional food service, or required additional inspection specified 
49.30 	in this paragraph:
49.31 	(1) Category 1 establishment, $110 $185. "Category 1 establishment" means a fee 
49.32 	category that provides one or more of the following items or is one of the listed 
49.33 	establishments or facilities:
50.1 	(i) serves prepackaged food that is served in the package;
50.2 	(ii) serves a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
50.3 	(iii) serves soft drinks, coffee, or nonalcoholic beverages;
50.4 	(iv) provides cleaning for eating, drinking, or cooking utensils, when the only food 
50.5 	served is prepared off site;
50.6 	(v) a food establishment where the method of food preparation meets the definition of 
50.7 	a low-risk establishment in section 157.20; or
50.8 	(vi) operates as a child care facility licensed under section 142B.05 and Minnesota Rules, 
50.9 	chapter 9503.
50.10 	(2) Category 2 establishment, $245 $430. "Category 2 establishment" means an 
50.11 	establishment that is not a Category 1 establishment and is either:
50.12 	(i) a food establishment where the method of food preparation meets the definition of a 
50.13 	medium-risk establishment in section 157.20; or
50.14 	(ii) an elementary or secondary school as defined in section 120A.05.
50.15 	(3) Category 3 establishment, $385 $670. "Category 3 establishment" means an 
50.16 	establishment that is not a Category 1 or Category 2 establishment and is either:
50.17 	(i) a food establishment where the method of food preparation meets the definition of a 
50.18 	high-risk establishment in section 157.20; or
50.19 	(ii) an establishment where 500 or more meals are prepared per day and served at one 
50.20 	or more separate locations.
50.21 	(4) Other food and beverage service, including food carts, mobile food units, seasonal 
50.22 	temporary food stands, and seasonal permanent food stands, $85 $150.
50.23 	(5) Lodging per sleeping accommodation unit, $11 $15, including hotels, motels, lodging 
50.24 	establishments, and resorts, up to a maximum of $1,100 $1,500. "Lodging per sleeping 
50.25 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
50.26 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
50.27 	beds in a dormitory.
50.28 	(6) First public pool, $355 $455; each additional public pool, $200 $300. "Public pool" 
50.29 	means a fee category that has the meaning given in section 144.1222, subdivision 4.
50.30 	(7) First spa, $200 $300; each additional spa, $110 $200. "Spa pool" means a fee category 
50.31 	that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
51.1 	(8) Private sewer or water, $60 $85. "Individual private water" means a fee category 
51.2 	with a water supply other than a community public water supply as defined in Minnesota 
51.3 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
51.4 	sewage treatment system which uses subsurface treatment and disposal.
51.5 	(9) Additional food service, $175 $250. "Additional food service" means a location at 
51.6 	a food service establishment, other than the primary food preparation and service area, used 
51.7 	to prepare or serve beverages or food to the public. Additional food service does not apply 
51.8 	to school concession stands.
51.9 	(10) Additional inspection fee, $250 $350. "Additional inspection fee" means a fee to 
51.10 	conduct the second inspection each year for elementary and secondary education facility 
51.11 	school lunch programs when required by the Richard B. Russell National School Lunch 
51.12 	Act.
51.13 	(11) HACCP verification, $175 $225. "HACCP verification" means an annual fee 
51.14 	category for a business that performs one or more specialized process that requires an 
51.15 	HACCP plan as required in chapter 31 and Minnesota Rules, chapter 4626.
51.16 	(e) A fee for review of construction plans must accompany the initial license application 
51.17 	for restaurants, hotels, motels, lodging establishments, resorts, seasonal food stands, and 
51.18 	mobile food units. Plans submitted less than 30 days prior to construction are subject to 50 
51.19 	percent of the original plan review fee. A fee for review of an HACCP plan for specialized 
51.20 	processing must be submitted and approved prior to preparing and serving the specialized 
51.21 	processed food for human consumption. The fees for construction plan reviews and HACCP 
51.22 	plan reviews are as follows:

51.23	Service Area
	Type
	Fee
	
51.2551.24
	Food
	category 1 establishment
	$400
$550
	
51.2751.26
		category 2 establishment
	$450
$750
	
51.2951.28
		category 3 food establishment
	$500
$800
	
51.3151.30
		additional food service
	$250
$400
	
51.3351.32
		HACCP Plan Review
	$500
$600
	
51.3551.34
	Transient food service
	food cart
	$250
$500
	
51.3751.36
		seasonal permanent food stand
	$250
$500
	
52.252.1
		seasonal temporary food stand
	$250
$500
	
52.452.3
		mobile food unit
	$350
$700
	
52.652.5
	Lodging
	less than 25 rooms
	$375
$450
	
52.852.7
		25 to less than 100 rooms
	$400
$500
	
52.1052.9		100 rooms or more
	$500
$600
	
52.1252.11
		less than five cabins
	$350
$400
	
52.1452.13
		five to less than ten cabins
	$400
$450
	
52.1652.15
		ten cabins or more
	$450
$500
	
52.17 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
52.18 	establishments, resorts, seasonal food stands, and mobile food units are extensively 
52.19 	remodeled, a fee must be submitted with the remodeling plans. The fee for this construction 
52.20 	plan review is as follows:

52.21	Service Area
	Type
	Fee
	
52.2352.22
	Food
	category 1 establishment
	$300
$450
	
52.2552.24
		category 2 establishment
	$350
$500
	
52.2752.26
		category 3 establishment
	$400
$550
	
52.2952.28
		additional food service
	$250
$400
	
52.3152.30
	Transient food service
	food cart
	$250
$400
	
52.3352.32
		seasonal permanent food stand
	$250
$400
	
52.3552.34
		seasonal temporary food stand
	$250
$400
	
52.3752.36
		mobile food unit
	$250
$400
	
52.3952.38
	Lodging
	less than 25 rooms
	$250
$300
	
52.4152.40
		25 to less than 100 rooms
	$300
$350
	
52.4352.42
		100 rooms or more
	$450
$500
	
53.253.1
		less than five cabins
	$250
$300
	
53.453.3
		five to less than ten cabins
	$350
$400
	
53.653.5
		ten cabins or more
	$400
$450
	
53.7 	(g) Special event food stands are not required to submit construction or remodeling plans 
53.8 	for review.
53.9 	(h) Youth camps shall pay an annual single fee for food and lodging as follows:
53.10 	(1) camps with up to 99 campers, $325 $375;
53.11 	(2) camps with 100 to 199 campers, $550 $600; and
53.12 	(3) camps with 200 or more campers, $750 $800.
53.13 	(i) A youth camp which pays fees under paragraph (d) is not required to pay fees under 
53.14 	paragraph (h).

53.15 	Sec. 64. Minnesota Statutes 2024, section 157.16, subdivision 3a, is amended to read:
53.16 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that operates a 
53.17 	licensed boarding establishment, food and beverage service establishment, seasonal temporary 
53.18 	or permanent food stand, special event food stand, mobile food unit, food cart, resort, hotel, 
53.19 	motel, or lodging establishment in Minnesota must submit to the commissioner a $40 $50
53.20 	annual statewide hospitality fee for each licensed activity. The fee for establishments licensed 
53.21 	by the Department of Health is required at the same time the licensure fee is due. For 
53.22 	establishments licensed by local governments, the fee is due by July 1 of each year.

53.23 	Sec. 65. Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to 
53.24 	read:
53.25 		Subd. 3b.Technology fee. Every food and beverage service establishment, youth camp, 
53.26 	hotel, motel, lodging establishment, public pool, and resort licensed under this chapter must 
53.27 	pay a $5 technology fee for each licensed activity for the initial license and with each 
53.28 	renewal.

53.29 	Sec. 66. Minnesota Statutes 2024, section 256B.0625, subdivision 2, is amended to read:
53.30 		Subd. 2.Skilled and intermediate nursing care. (a) Medical assistance covers skilled 
53.31 	nursing home services and services of intermediate care facilities, including training and 
53.32 	habilitation services, as defined in section 252.41, subdivision 3, for persons with 
54.1 	developmental disabilities who are residing in intermediate care facilities for persons with 
54.2 	developmental disabilities. Medical assistance must not be used to pay the costs of nursing 
54.3 	care provided to a patient in a swing bed as defined in section 144.562, unless (1) the facility 
54.4 	in which the swing bed is located is eligible as a sole community provider, as defined in 
54.5 	Code of Federal Regulations, title 42, section 412.92, or the facility is a public hospital 
54.6 	owned by a governmental entity with 15 or fewer licensed acute care beds; (2) the Centers 
54.7 	for Medicare and Medicaid Services approves the necessary state plan amendments; (3) the 
54.8 	patient was screened as provided by law; (4) the patient no longer requires acute care 
54.9 	services; and (5) no nursing home beds are available within 25 miles of the facility. The 
54.10 	commissioner shall exempt a facility from compliance with the sole community provider 
54.11 	requirement in clause (1) if, as of January 1, 2004, the facility had an agreement with the 
54.12 	commissioner to provide medical assistance swing bed services.
54.13 	(b) Medical assistance also covers up to ten days of nursing care provided to a patient 
54.14 	in a swing bed if: (1) the patient's physician, advanced practice registered nurse, or physician 
54.15 	assistant certifies that the patient has a terminal illness or condition that is likely to result 
54.16 	in death within 30 days and that moving the patient would not be in the best interests of the 
54.17 	patient and patient's family; (2) no open nursing home beds are available within 25 miles 
54.18 	of the facility; and (3) no open beds are available in any Medicare hospice program within 
54.19 	50 miles of the facility. The daily medical assistance payment for nursing care for the patient 
54.20 	in the swing bed is the statewide average medical assistance skilled nursing care per diem 
54.21 	as computed annually by the commissioner on July 1 of each year.

54.22 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
54.23 	whichever is later. The commissioners of health and human services shall inform the revisor 
54.24 	of statutes when federal approval is obtained.

54.25 	Sec. 67. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
54.26 	to read:
54.27 		Subd. 2b.Nursing care provided to a patient in a swing bed. (a) Medical assistance 
54.28 	must not be used to pay the costs of nursing care provided to a patient in a swing bed as 
54.29 	defined in section 144.562, unless:
54.30 	(1) the facility where the swing bed is located is eligible as a sole community provider, 
54.31 	as defined in Code of Federal Regulations, title 42, section 412.92, or the facility is a public 
54.32 	hospital owned by a governmental entity with 15 or fewer licensed acute care beds;
54.33 	(2) the Centers for Medicare and Medicaid Services approves the necessary state plan 
54.34 	amendments;
55.1 	(3) the patient was screened as provided by law;
55.2 	(4) the patient no longer requires acute care services; and
55.3 	(5) no nursing home beds are available within 25 miles of the facility.
55.4 	(b) The commissioner shall exempt a facility from compliance with the sole community 
55.5 	provider requirement in paragraph (a), clause (1), if, as of January 1, 2004, the facility had 
55.6 	an agreement with the commissioner to provide medical assistance swing bed services.
55.7 	(c) Medical assistance also covers up to ten days of nursing care provided to a patient 
55.8 	in a swing bed if:
55.9 	(1) the patient's physician, advanced practice registered nurse, or physician assistant 
55.10 	certifies that the patient has a terminal illness or condition that is likely to result in death 
55.11 	within 30 days and that moving the patient would not be in the best interests of the patient 
55.12 	and patient's family;
55.13 	(2) no open nursing home beds are available within 25 miles of the facility; and
55.14 	(3) no open beds are available in any Medicare hospice program within 50 miles of the 
55.15 	facility.
55.16 	(d) The commissioner shall exempt any facility described under section 144.5621 from 
55.17 	compliance with the requirements of paragraph (a), clauses (3) and (5), and paragraph (c), 
55.18 	and medical assistance covers an unlimited number of days of nursing care provided to a 
55.19 	patient in a swing bed at a facility described under section 144.5621.
55.20 	(e) The daily medical assistance payment for nursing care for the patient in the swing 
55.21 	bed is the statewide average medical assistance skilled nursing care per diem as computed 
55.22 	annually by the commissioner on July 1 of each year.

55.23 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
55.24 	whichever is later. The commissioners of health and human services shall inform the revisor 
55.25 	of statutes when federal approval is obtained.

55.26 	Sec. 68. Minnesota Statutes 2024, section 256B.692, subdivision 2, is amended to read:
55.27 		Subd. 2.Duties of commissioner of health. (a) Notwithstanding chapters 62D and 62N, 
55.28 	a county that elects to purchase medical assistance in return for a fixed sum without regard 
55.29 	to the frequency or extent of services furnished to any particular enrollee is not required to 
55.30 	obtain a certificate of authority under chapter 62D or 62N. The county board of 
55.31 	commissioners is the governing body of a county-based purchasing program. In a multicounty 
55.32 	arrangement, the governing body is a joint powers board established under section 471.59.
56.1 	(b) A county that elects to purchase medical assistance services under this section must 
56.2 	satisfy the commissioner of health that the requirements for assurance of consumer protection, 
56.3 	provider protection, and fiscal solvency of chapter 62D, applicable to health maintenance 
56.4 	organizations will be met according to the following schedule:
56.5 	(1) for a county-based purchasing plan approved on or before June 30, 2008, the plan 
56.6 	must have in reserve:
56.7 	(i) at least 50 percent of the minimum amount required under chapter 62D as of January 
56.8 	1, 2010;
56.9 	(ii) at least 75 percent of the minimum amount required under chapter 62D as of January 
56.10 	1, 2011;
56.11 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D as of 
56.12 	January 1, 2012; and
56.13 	(iv) at least 100 percent of the minimum amount required under chapter 62D as of January 
56.14 	1, 2013; and
56.15 	(2) for a county-based purchasing plan first approved after June 30, 2008, the plan must 
56.16 	have in reserve:
56.17 	(i) at least 50 percent of the minimum amount required under chapter 62D at the time 
56.18 	the plan begins enrolling enrollees;
56.19 	(ii) at least 75 percent of the minimum amount required under chapter 62D after the first 
56.20 	full calendar year;
56.21 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D after the 
56.22 	second full calendar year; and
56.23 	(iv) at least 100 percent of the minimum amount required under chapter 62D after the 
56.24 	third full calendar year.
56.25 	(c) Until a plan is required to have reserves equaling at least 100 percent of the minimum 
56.26 	amount required under chapter 62D, the plan may demonstrate its ability to cover any losses 
56.27 	by satisfying the requirements of chapter 62N. A county-based purchasing plan must also 
56.28 	assure the commissioner of health that the requirements of sections 62J.041; 62J.48; 62J.71 
56.29 	to 62J.73; all applicable provisions of chapter 62Q, including sections 62Q.075; 62Q.1055; 
56.30 	62Q.106; 62Q.12; 62Q.135; 62Q.14; 62Q.19; 62Q.23, paragraph (c); 62Q.43; 62Q.47; 
56.31 	62Q.50; 62Q.52 to 62Q.56; 62Q.58; 62Q.68 to 62Q.72; and 72A.201 will be met.
57.1 	(d) All enforcement and rulemaking powers available under chapters 62D, 62J, 62N, 
57.2 	and 62Q are hereby granted to the commissioner of health with respect to counties that 
57.3 	purchase medical assistance services under this section.
57.4 	(e) The commissioner, in consultation with county government, shall develop 
57.5 	administrative and financial reporting requirements for county-based purchasing programs 
57.6 	relating to sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 62N.31, 
57.7 	and other sections as necessary, that are specific to county administrative, accounting, and 
57.8 	reporting systems and consistent with other statutory requirements of counties.
57.9 	(f) The commissioner shall collect from a county-based purchasing plan under this 
57.10 	section the following fees:
57.11 	(1) fees attributable to the costs of audits and other examinations of plan financial 
57.12 	operations. These fees are subject to the provisions of Minnesota Rules, part 4685.2800, 
57.13 	subpart 1, item F; and
57.14 	(2) an annual fee of $21,500 $30,000, to be paid by June 15 of each calendar year.
57.15 	All fees collected under this paragraph shall be deposited in the state government special 
57.16 	revenue fund.

57.17 	Sec. 69. Minnesota Statutes 2024, section 256R.01, is amended by adding a subdivision 
57.18 	to read:
57.19 		Subd. 1a.Payment rates for nursing care provided to a patient in a swing 
57.20 	bed. Payment rates paid to any hospital for nursing care provided to a patient in a swing 
57.21 	bed must be those rates established pursuant to section 256B.0625, subdivision 2b.

57.22 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
57.23 	whichever is later. The commissioners of health and human services shall inform the revisor 
57.24 	of statutes when federal approval is obtained.

57.25 	Sec. 70. Minnesota Statutes 2024, section 326.72, subdivision 1, is amended to read:
57.26 		Subdivision 1.When license required. A person within the state intending to directly 
57.27 	perform or cause to be performed through subcontracting or similar delegation any 
57.28 	asbestos-related work either for financial gain or with respect to the person's own property 
57.29 	shall first apply for and obtain a license from the commissioner. The license shall be in 
57.30 	writing, be dated when issued, contain an expiration date, be signed by the commissioner, 
57.31 	and give the name and address of the person to whom it is issued.
58.1 	The domiciled owner of a single family residence is not required to hold a license or 
58.2 	pay a project permit fee to conduct asbestos-related work in the domiciled residence.
58.3 	Any person performing any asbestos-related work within the state must be licensed by 
58.4 	the commissioner, whether directly performing asbestos work or causing it to be performed 
58.5 	through subcontracting or similar delegation. A domiciled owner of a single-family residence 
58.6 	is not required to hold a license or pay a project permit fee to conduct asbestos-related work 
58.7 	in the domiciled residence.

58.8 	Sec. 71. Minnesota Statutes 2024, section 326.75, subdivision 3, is amended to read:
58.9 		Subd. 3.Permit fee. Five calendar days before beginning asbestos-related work, a person 
58.10 	shall pay a project permit fee to the commissioner equal to two three percent of the total 
58.11 	costs of the asbestos-related work. For asbestos-related work performed in single or 
58.12 	multifamily residences, of greater than ten but less than 260 linear feet of asbestos-containing 
58.13 	material on pipes, or greater than six but less than 160 square feet of asbestos-containing 
58.14 	material on other facility components, a person shall pay a project permit fee of $35 to the 
58.15 	commissioner.

58.16 	Sec. 72. Minnesota Statutes 2024, section 326.75, subdivision 3a, is amended to read:
58.17 		Subd. 3a.Asbestos-related training course permit fee. The commissioner shall establish 
58.18 	by rule a permit fee to be paid by A training course provider shall pay the commissioner a 
58.19 	fee of $500 on application for a training course permit or and $250 for the renewal of a 
58.20 	permit of each asbestos-related training course required for certification or registration.

58.21 	Sec. 73. Minnesota Statutes 2024, section 327.15, subdivision 2, is amended to read:
58.22 		Subd. 2.License renewal. Initial and renewal licenses for all manufactured home parks 
58.23 	and recreational camping areas shall be issued annually and shall have an expiration date 
58.24 	included on the license. Any person who operates a manufactured home park or recreational 
58.25 	camping area after the expiration date of a license or without having submitted an application 
58.26 	and paid the fee shall be deemed to have violated the provisions of this chapter and shall 
58.27 	be subject to enforcement action, as provided in the Health Enforcement Consolidation Act, 
58.28 	sections 144.989 to 144.993. In addition, a penalty of $120 $200 shall be added to the total 
58.29 	of the license fee for any manufactured home park or recreational camping area operating 
58.30 	without a license for a period of up to 30 days. A late fee of $360 $450 shall be added to 
58.31 	the license fee for any manufactured home park or recreational camping area operating 
58.32 	more than 30 days without a license.

59.1 	Sec. 74. Minnesota Statutes 2024, section 327.15, subdivision 3, is amended to read:
59.2 		Subd. 3.Fees, manufactured home parks and recreational camping areas. (a) The 
59.3 	following fees are required for manufactured home parks and recreational camping areas 
59.4 	licensed under this chapter. Fees collected under this section shall be deposited in the state 
59.5 	government special revenue fund. Recreational camping areas and manufactured home 
59.6 	parks shall pay the highest applicable base fee under paragraph (b). The license fee for new 
59.7 	operators of a manufactured home park or recreational camping area previously licensed 
59.8 	under this chapter for the same calendar year is one-half of the appropriate annual license 
59.9 	fee, plus any penalty that may be required. The license fee for operators opening on or after 
59.10 	October 1 is one-half of the appropriate annual license fee, plus any penalty that may be 
59.11 	required.
59.12 	(b) All manufactured home parks and recreational camping areas shall pay the following 
59.13 	annual base fee:
59.14 	(1) a manufactured home park, $165 $280; and
59.15 	(2) a recreational camping area with:
59.16 	(i) 24 or less sites, $55 $100;
59.17 	(ii) 25 to 99 sites, $230 $410; and
59.18 	(iii) 100 or more sites, $330 $610.
59.19 	In addition to the base fee, manufactured home parks and recreational camping areas shall 
59.20 	pay $5 $8 for each licensed site. This paragraph does not apply to special event recreational 
59.21 	camping areas. Operators of a manufactured home park or a recreational camping area also 
59.22 	licensed under section 157.16 for the same location shall pay only one base fee, whichever 
59.23 	is the highest of the base fees found in this section or section 157.16.
59.24 	(c) In addition to the fee in paragraph (b), each manufactured home park or recreational 
59.25 	camping area shall pay an additional annual fee for each fee category specified in this 
59.26 	paragraph:
59.27 	(1) Manufactured home parks and recreational camping areas with public swimming 
59.28 	pools and spas shall pay the appropriate fees specified in section 157.16.
59.29 	(2) Individual private sewer or water, $60 $85. "Individual private water" means a fee 
59.30 	category with a water supply other than a community public water supply as defined in 
59.31 	Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 
59.32 	subsurface sewage treatment system which uses subsurface treatment and disposal.
60.1 	(d) The following fees must accompany a plan review application for initial construction 
60.2 	of a manufactured home park or recreational camping area:
60.3 	(1) for initial construction of less than 25 sites, $375 $400;
60.4 	(2) for initial construction of 25 to 99 sites, $400 $425; and
60.5 	(3) for initial construction of 100 or more sites, $500 $525.
60.6 	(e) The following fees must accompany a plan review application when an existing 
60.7 	manufactured home park or recreational camping area is expanded:
60.8 	(1) for expansion of less than 25 sites, $250 $300;
60.9 	(2) for expansion of 25 to 99 sites, $300 $350; and
60.10 	(3) for expansion of 100 or more sites, $450 $500.

60.11 	Sec. 75. Minnesota Statutes 2024, section 327.15, subdivision 4, is amended to read:
60.12 		Subd. 4.Fees, special event recreational camping areas. (a) The following fees are 
60.13 	required for special event recreational camping areas licensed under this chapter.
60.14 	(b) All special event recreational camping areas shall pay an annual fee of $150 $250
60.15 	plus $1 $4 for each licensed site.
60.16 	(c) A special event recreational camping area shall pay a late fee of $360 $450 for failing 
60.17 	to obtain a license prior to operating.
60.18 	(d) The following fees must accompany a plan review application for initial construction 
60.19 	of a special event recreational camping area:
60.20 	(1) for initial construction of less than 25 special event recreational camping sites, $375
60.21 	$475;
60.22 	(2) for initial construction of 25 to 99 sites, $400 $500; and
60.23 	(3) for initial construction of 100 or more sites, $500 $600.
60.24 	(e) The following fees must accompany a plan review application for expansion of a 
60.25 	special event recreational camping area:
60.26 	(1) for expansion of less than 25 sites, $250 $300;
60.27 	(2) for expansion of 25 to 99 sites, $300 $350; and
60.28 	(3) for expansion of 100 or more sites, $450 $500.

61.1 	Sec. 76. Minnesota Statutes 2024, section 327.15, is amended by adding a subdivision to 
61.2 	read:
61.3 		Subd. 5.Technology fee. All manufactured home parks, recreational camping areas, 
61.4 	and special event camping areas must pay a $5 technology fee at initial licensing and upon 
61.5 	each renewal.

61.6 	Sec. 77. SPOKEN LANGUAGE HEALTH CARE INTERPRETER WORK GROUP.
 61.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
61.8 	the meanings given.
61.9 	(b) "Commissioner" means the commissioner of health.
61.10 	(c) "Common languages" means the 15 most frequent languages without regard to dialect 
61.11 	in Minnesota.
61.12 	(d) "Registered interpreter" means a spoken language interpreter who is listed on the 
61.13 	Department of Health's spoken language health care interpreter roster.
61.14 	(e) "Work group" means the spoken language health care interpreter work group 
61.15 	established in subdivision 2.
61.16 		Subd. 2.Composition. The commissioner shall, after receiving work group candidate 
61.17 	applications, appoint 15 members to the work group consisting of the following members:
61.18 	(1) three members who are interpreters listed on the Department of Health's spoken 
61.19 	language health care interpreter roster and who are Minnesota residents. Of these members: 
61.20 	(i) each must be an interpreter for a different language; (ii) at least one must have a national 
61.21 	certification credential; and (iii) at least one must have been listed on the roster as an 
61.22 	interpreter in a language other than the common languages and must have completed a 
61.23 	nationally recognized training program for health care interpreters that is, at a minimum, 
61.24 	40 hours in length;
61.25 	(2) three members representing limited English proficiency (LEP) individuals. Of these 
61.26 	members, two must represent LEP individuals who are not proficient in a common language 
61.27 	and one must represent LEP individuals who are proficient in a language that is not one of 
61.28 	the common languages;
61.29 	(3) one member representing a health plan company;
61.30 	(4) one member representing a Minnesota health system who is not an interpreter;
62.1 	(5) two members representing interpreter agencies, including one member representing 
62.2 	agencies whose main office is located outside the seven-county metropolitan area and one 
62.3 	member representing agencies whose main office is located within the seven-county 
62.4 	metropolitan area;
62.5 	(6) one member representing the Department of Health;
62.6 	(7) one member representing the Department of Human Services;
62.7 	(8) one member representing an interpreter training program or postsecondary educational 
62.8 	institution program providing interpreter courses or skills assessment;
62.9 	(9) one member who is affiliated with a Minnesota-based or Minnesota chapter of a 
62.10 	national or international organization representing interpreters; and
62.11 	(10) one member who is a licensed direct care health provider.
62.12 		Subd. 3.Duties. The work group must compile a list of recommendations to support 
62.13 	and improve access to the critical health care interpreting services provided across the state, 
62.14 	including but not limited to:
62.15 	(1) changing requirements for registered and certified interpreters to reflect changing 
62.16 	needs of the Minnesota health care community and emerging national standards of training, 
62.17 	competency, and testing;
62.18 	(2) addressing barriers for interpreters to gain access to the roster, including barriers to 
62.19 	interpreters of uncommon languages and interpreters in rural areas;
62.20 	(3) reimbursing spoken language health care interpreting;
62.21 	(4) identifying gaps in interpreter services in rural areas and recommending ways to 
62.22 	address interpreter training and funding needs;
62.23 	(5) providing training, certification, and continuing education programs;
62.24 	(6) convening a meeting of public and private sector representatives of the spoken 
62.25 	language health care interpreters community to identify ongoing sources of financial 
62.26 	assistance to aid individual interpreters in meeting interpreter training and testing registry 
62.27 	requirements;
62.28 	(7) conducting surveys of people receiving and providing interpreter services to 
62.29 	understand changing needs and consumer quality care; and
62.30 	(8) suggesting changes in requirements and qualifications on telehealth or remote 
62.31 	interpreting.
63.1 		Subd. 4.Compensation; expense reimbursement. Compensation shall be offered to 
63.2 	work group members not being compensated for their participation in work group activities 
63.3 	as part of their existing job duties. Work group members shall be compensated and 
63.4 	reimbursed for expenses for work group activities under section 15.059, subdivision 3.
63.5 		Subd. 5.Administrative support; meeting space; meeting facilitation. The 
63.6 	commissioner must provide meeting space and administrative support for the work group. 
63.7 	The commissioner may contract with a neutral independent consultant to provide this 
63.8 	administrative support and to facilitate and lead the meetings of the work group.
63.9 		Subd. 6.Deadline for appointments. The commissioner must appoint members to the 
63.10 	work group by August 15, 2025.
63.11 		Subd. 7.Expiration. This section expires on November 2, 2026, or upon submission 
63.12 	of the report required under subdivision 9, whichever is earlier.
63.13 		Subd. 8.Initial spoken language health care interpreter work group meetings. The 
63.14 	commissioner shall convene the first meeting of the work group by October 1, 2025. Prior 
63.15 	to the first meeting, work group members must receive results from previously conducted 
63.16 	surveys and gather evidence-based research on interpreter services in Minnesota. During 
63.17 	the first meetings, work group members may consult with subject matter experts, including 
63.18 	but not limited to signed language interpreting experts, academic experts with knowledge 
63.19 	of interpreting research, and academic health experts to address specific gaps in spoken 
63.20 	language health care interpreting. The work group shall provide a minimum of two 
63.21 	opportunities for public comment. These opportunities shall be announced with at least four 
63.22 	weeks' notice, with publicity in the five most common languages in Minnesota. Interpreters 
63.23 	for those same languages shall be provided during the public comment opportunities.
63.24 		Subd. 9.Report. The commissioner must provide the chairs and ranking minority 
63.25 	members of the legislative committees with jurisdiction over health care interpreter services 
63.26 	with recommendations, including draft legislation and any statutory changes needed to 
63.27 	implement the recommendations, to improve and support access to health care interpreting 
63.28 	services statewide by November 1, 2026.

63.29 	Sec. 78. AFRICAN AMERICAN-FOCUSED HOMEPLACE GRANT PROGRAM.
 63.30 	(a) The commissioner of health must establish a grant program to strengthen and 
63.31 	implement the current model of the African American-focused Homeplace in Hennepin 
63.32 	County. The purpose of the model is to improve access to culturally centered healing and 
64.1 	care during pregnancy and the postpartum period, with the goal of improving maternal and 
64.2 	child health outcomes.
64.3 	(b) By December 15, 2026, the grantee must submit a report to the commissioner of 
64.4 	health on the implementation and progress of Homeplace in Hennepin County. The report 
64.5 	must outline outcomes achieved and recommendations for future funding and program 
64.6 	expansion.

64.7 	Sec. 79. EMERGENCY AMBULANCE SERVICE GRANTS.
 64.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
64.9 	the meanings given.
64.10 	(b) "Ambulance service" has the meaning given in Minnesota Statutes, section 144E.001, 
64.11 	subdivision 3.
64.12 	(c) "Capital expenses" means expenses that are incurred by a licensed ambulance service 
64.13 	provider for the purchase, improvement, or maintenance of long-term assets to improve the 
64.14 	efficiency or capability of the ambulance services, with an expected useful life of greater 
64.15 	than five years.
64.16 	(d) "Director" means the director of the Office of Emergency Medical Services.
64.17 	(e) "EMS responses" means the number of responses provided within a primary service 
64.18 	area during calendar year 2024 by the licensed ambulance service provider designated to 
64.19 	serve the primary service area.
64.20 	(f) "Licensed ambulance service provider" or "provider" means a natural person, 
64.21 	partnership, association, corporation, Tribal government, or unit of government that possesses 
64.22 	an ambulance service license under Minnesota Statutes, chapter 144E.
64.23 	(g) "Metropolitan county" means a metropolitan county listed in Minnesota Statutes, 
64.24 	section 473.121, subdivision 4.
64.25 	(h) "Multiple license holder" means a licensed ambulance service provider, a licensed 
64.26 	ambulance service provider's parent company, a subsidiary of the licensed ambulance service 
64.27 	provider, or a subsidiary of the licensed ambulance service provider's parent company that 
64.28 	collectively holds more than one license.
64.29 	(i) "Nonexcluded license" means a license that is not excluded under subdivision 3 from 
64.30 	receiving grants under this section.
65.1 	(j) "Operational expenses" means costs related to personnel expenses, supplies and 
65.2 	equipment, fuel, vehicle maintenance, travel, education, fundraising, and expenses associated 
65.3 	with obtaining advanced life support intercepts.
65.4 	(k) "Primary service area" has the meaning given in Minnesota Statutes, section 144E.001, 
65.5 	subdivision 10.
65.6 	(l) "Response density" means the quotient of EMS responses divided by the square 
65.7 	mileage of the primary service area.
65.8 	(m) "Unit of government" means a county, a statutory or home rule charter city, or a 
65.9 	township.
65.10 		Subd. 2.Excluded services. The director must exclude EMS responses by a specialized 
65.11 	life support service as described in Minnesota Statutes, section 144E.101, subdivision 9, 
65.12 	when calculating EMS responses, response density, and grant payments under this section.
65.13 		Subd. 3.Certain multiple license holders excluded. (a) Except as provided under 
65.14 	paragraph (b), all licenses held by a multiple license holder are ineligible for grant payments 
65.15 	under this section if any license held by a multiple license holder is designated to serve a 
65.16 	primary service area, any portion of which is located within the cities of Duluth, Mankato, 
65.17 	Moorhead, Rochester, or St. Cloud, or a metropolitan county.
65.18 	(b) For a multiple license holder affiliated with a private, nonprofit adult hospital that 
65.19 	is located in Hennepin County and designated by the commissioner of health as a level I 
65.20 	trauma hospital, only the licenses held by the multiple license holder and located entirely 
65.21 	within one or more metropolitan counties are ineligible for grant payments under this section.
65.22 		Subd. 4.Eligibility. A licensed ambulance service provider is eligible for grants under 
65.23 	this section if the licensed ambulance service provider:
65.24 	(1) possessed a nonexcluded license in calendar year 2023;
65.25 	(2) continues to operate under the nonexcluded license during calendar year 2025; and
65.26 	(3) completes the requirements under subdivision 5.
65.27 		Subd. 5.Application process. (a) An eligible licensed ambulance service provider may 
65.28 	apply to the director, in the form and manner determined by the director, for a grant under 
65.29 	this section. Applications must be submitted by September 16, 2025. The director may 
65.30 	require an eligible licensed ambulance service provider to submit any information necessary, 
65.31 	including financial statements, to make the calculations under subdivision 6. An eligible 
66.1 	licensed ambulance service provider who applies for a grant under this section must provide 
66.2 	a copy of the application to the executive director of the board by September 16, 2025.
66.3 	(b) The director must establish a process for verifying the data submitted with applications 
66.4 	under this section. By September 20, 2025, for each eligible licensed ambulance service 
66.5 	provider that applies for a grant under paragraph (a), the director must certify the following 
66.6 	information:
66.7 	(1) EMS responses by primary service area reported for calendar year 2024;
66.8 	(2) EMS responses by primary service area reported for calendar year 2024 that were 
66.9 	provided by a specialized life support service;
66.10 	(3) information necessary to determine the location of each primary service area, including 
66.11 	municipalities served; and
66.12 	(4) the square mileage of each primary service area as of January 1, 2025.
66.13 		Subd. 6.Director calculations. (a) Prior to determining a grant amount for eligible 
66.14 	licensed ambulance service providers, the director must make the calculations in paragraphs 
66.15 	(b) to (d).
66.16 	(b) The director must determine the amount equal to dividing 20 percent of the amount 
66.17 	appropriated for grant payments under this section equally among all eligible licensed 
66.18 	ambulance service providers who possess at least one nonexcluded license. Eligible licensed 
66.19 	ambulance service providers who possess only one nonexcluded license do not qualify for 
66.20 	a payment under this paragraph if the nonexcluded license has a response density greater 
66.21 	than 30.
66.22 	(c) For each nonexcluded license with a response density less than or equal to 30 held 
66.23 	by an eligible licensed ambulance service provider, the director must determine the amount 
66.24 	equal to the product of 40 percent of the amount appropriated for grants under this section 
66.25 	multiplied by the quotient of the square mileage of the primary service area served under 
66.26 	the nonexcluded license divided by the total square mileage of all primary service areas 
66.27 	served under nonexcluded licenses.
66.28 	(d) For each nonexcluded license with a response density less than or equal to 30 held 
66.29 	by an eligible licensed ambulance service provider, the director must determine the amount 
66.30 	equal to the product of 40 percent of the amount appropriated for grants under this section 
66.31 	multiplied by the quotient of the number of points determined under clauses (1) to (4) for 
66.32 	each nonexcluded license with a response density less than or equal to 30 divided by the 
66.33 	total points determined under clauses (1) to (4) for all nonexcluded licenses with a response 
67.1 	density less than or equal to 30 held by eligible licensed ambulance service providers. For 
67.2 	calculations under this paragraph, the director must determine points as follows:
67.3 	(1) for EMS response one to EMS response 500, a nonexcluded license is awarded ten 
67.4 	points for each EMS response;
67.5 	(2) for EMS response 501 to EMS response 1,500, a nonexcluded license is awarded 
67.6 	five points for each EMS response;
67.7 	(3) for EMS response 1,501 to EMS response 2,500, a nonexcluded license is awarded 
67.8 	zero points for each EMS response; and
67.9 	(4) for EMS response 2,501 and each subsequent EMS response, a nonexcluded license's 
67.10 	points are reduced by two points for each EMS response, except a nonexcluded license's 
67.11 	total awarded points must not be reduced below zero.
67.12 		Subd. 7.Grant amount. The director must make a grant award to each eligible licensed 
67.13 	ambulance service provider in the amount equal to the sum of the amounts calculated in 
67.14 	subdivision 6, paragraphs (b) to (d), for each nonexcluded license held by the eligible 
67.15 	licensed ambulance service.
67.16 		Subd. 8.Eligible uses. A licensed ambulance service provider must spend grant money 
67.17 	received under this section on operational expenses and capital expenses incurred to provide 
67.18 	ambulance services within the licensed ambulance service provider's primary service area 
67.19 	that is located in Minnesota.
67.20 		Subd. 9.Administration. (a) The director must certify the grant amount to each licensed 
67.21 	ambulance service provider by December 1, 2025.
67.22 	(b) The director must award the full grant amount to each eligible licensed ambulance 
67.23 	service provider by December 26, 2025.
67.24 	(c) Any money not spent on or encumbered for eligible uses by December 31, 2026, 
67.25 	must be returned to the director.
67.26 		Subd. 10.Report. By February 15, 2027, each licensed ambulance service provider that 
67.27 	receives a grant under this section must submit a report to the director and the chairs and 
67.28 	ranking minority members of the legislative committees with jurisdiction over health finance 
67.29 	and policy. The report must include the grant amount that each licensed ambulance service 
67.30 	provider received, the grant amount that was spent on or encumbered for operational 
67.31 	expenses, the grant amount that was spent on or encumbered for capital expenses, and 
67.32 	documentation sufficient to establish that grant money was spent on or encumbered for 
68.1 	eligible uses as defined in subdivision 8. The director may request financial statements or 
68.2 	other information necessary to verify that grants were spent on eligible uses.

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

68.4 	Sec. 80. RULEMAKING.
 68.5 	The Department of Health must adopt rules using the expedited process under Minnesota 
68.6 	Statutes, section 14.389, to amend certain parts in Minnesota Rules, chapter 4695, to conform 
68.7 	with the changes made in this act.

68.8 	Sec. 81. REPEALER.
 68.9 	(a) Minnesota Statutes 2024, sections 62J.824; and 103I.550, are repealed.
68.10 	(b) Minnesota Rules, part 4695.2900, is repealed.

68.11 	ARTICLE 2
68.12 	DEPARTMENT OF HEALTH POLICY

68.13 	Section 1. Minnesota Statutes 2024, section 62J.461, subdivision 3, is amended to read:
68.14 		Subd. 3.Reporting by covered entities to the commissioner. (a) Each 340B covered 
68.15 	entity shall report to the commissioner by April 1 of each year the following information 
68.16 	for transactions conducted by the 340B covered entity or on its behalf, and related to its 
68.17 	participation in the federal 340B program for the previous calendar year:
68.18 	(1) the aggregated acquisition cost for prescription drugs obtained under the 340B 
68.19 	program;
68.20 	(2) the aggregated payment amount received for drugs obtained under the 340B program 
68.21 	and dispensed or administered to patients;:
68.22 	(i) that are net of the contracted price for insurance claims payments; and
68.23 	(ii) that reflect the portion of payment received from grants, cash, or other payment types 
68.24 	that relate to the dispensing or administering of drugs obtained under the 340B program;
68.25 	(3) the number of pricing units dispensed or administered for prescription drugs described 
68.26 	in clause (2); and
68.27 	(4) the aggregated payments made:
68.28 	(i) to contract pharmacies to dispense drugs obtained under the 340B program;
69.1 	(ii) to any other entity that is not the covered entity and is not a contract pharmacy for 
69.2 	managing any aspect of the covered entity's 340B program; and
69.3 	(iii) for all other internal, direct expenses related to administering the 340B program
69.4 	with a detailed description of the direct costs included.
69.5 	The information under clauses (2) and (3) must be reported by payer type, including but 
69.6 	not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in 
69.7 	the form and manner prescribed by the commissioner.
69.8 	(b) For covered entities that are hospitals, the information required under paragraph (a), 
69.9 	clauses (1) to (3), must also be reported at the national drug code level for the 50 most 
69.10 	frequently dispensed or administered drugs by the facility under the 340B program.
69.11 	(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as 
69.12 	nonpublic data, as defined in section 13.02, subdivision 9.

69.13 	Sec. 2. Minnesota Statutes 2024, section 62J.461, subdivision 4, is amended to read:
69.14 		Subd. 4.Enforcement and exceptions. (a) Any health care covered entity subject to 
69.15 	reporting under this section that fails to provide data in the form and manner prescribed by 
69.16 	the commissioner is subject to the levy of a fine paid to the commissioner of up to $500 for 
69.17 	each day the data are past due. Any fine levied against the entity under this subdivision is 
69.18 	subject to the contested case and judicial review provisions of sections 14.57and to14.69.
69.19 	(b) The commissioner may grant an entity an extension of or exemption from the reporting 
69.20 	obligations under this subdivision section, upon a showing of good cause by the entity.

69.21 	Sec. 3. Minnesota Statutes 2024, section 62J.461, subdivision 5, is amended to read:
69.22 		Subd. 5.Reports to the legislature. By November 15, 2024, and by November 15 of 
69.23 	each year thereafter, the commissioner shall submit to the chairs and ranking minority 
69.24 	members of the legislative committees with jurisdiction over health care finance and policy, 
69.25 	a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). The 
69.26 	following information must be included in the report For all 340B entities whose net 340B 
69.27 	revenue constitutes a significant share, as determined by the commissioner, of all net 340B 
69.28 	revenue across all 340B covered entities in Minnesota, the following information must also 
69.29 	be included in the report:
69.30 	(1) the information submitted under subdivision 2; and
70.1 	(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as 
70.2 	calculated using the data submitted under subdivision 3, paragraph (a), with net revenue 
70.3 	being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a), 
70.4 	clauses (1) and (4).
70.5 	For all other entities, the data in the report must be aggregated to the entity type or groupings 
70.6 	of entity types in a manner that prevents the identification of an individual entity and any 
70.7 	entity's specific data value reported for an individual data element.

70.8 	Sec. 4. Minnesota Statutes 2024, section 62J.51, subdivision 19a, is amended to read:
70.9 		Subd. 19a.Uniform explanation of benefits document. "Uniform explanation of 
70.10 	benefits document" means either the document associated with and explaining the details 
70.11 	of a group purchaser's claim adjudication for services rendered or its electronic equivalent 
70.12 	under section 62J.581, which is sent to a patient.

70.13 	Sec. 5. Minnesota Statutes 2024, section 62J.581, is amended to read:
70.14 	62J.581 STANDARDS FOR MINNESOTA UNIFORM HEALTH CARE 
70.15 	REIMBURSEMENT DOCUMENTS.
70.16 		Subdivision 1.Minnesota uniform remittance advice.  All group purchasers shall 
70.17 	provide a uniform claim payment/advice transaction to health care providers when a claim 
70.18 	is adjudicated. The uniform claim payment/advice transaction shall comply with section 
70.19 	62J.536, subdivision 1, paragraph (b), and rules adopted under section 62J.536, subdivision 
70.20 	2.
70.21 		Subd. 2.Minnesota uniform explanation of benefits document. (a) All group 
70.22 	purchasers shall provide a uniform explanation of benefits document to health care patients 
70.23 	when an explanation of benefits document is provided as otherwise required or permitted 
70.24 	by law. The uniform explanation of benefits document shall comply with the standards 
70.25 	prescribed in this section.
70.26 	(b) Notwithstanding paragraph (a), this section does not apply to group purchasers not 
70.27 	included as covered entities under United States Code, title 42, sections 1320d to 1320d-8, 
70.28 	as amended from time to time, and the regulations promulgated under those sections.
70.29 		Subd. 3.Scope. For purposes of sections 62J.50 to 62J.61, the uniform claim 
70.30 	payment/advice transaction and uniform explanation of benefits document format specified 
70.31 	in subdivision 4 shall apply to all health care services delivered by a health care provider 
70.32 	or health care provider organization in Minnesota, regardless of the location of the payer. 
71.1 	Health care services not paid on an individual claims basis, such as capitated payments, are 
71.2 	not included in this section. A health plan company is excluded from the requirements in 
71.3 	subdivisions 1 and subdivision 2 if they comply with section 62A.01, subdivisions 2 and 
71.4 	3.
71.5 		Subd. 4.Specifications. (a) The uniform explanation of benefits document shall be 
71.6 	provided by use of a paper document conforming to the specifications in this section or its 
71.7 	electronic equivalent under paragraph (b).
71.8 	(b) Group purchasers may make the uniform explanation of benefits available in a version 
71.9 	that can be accessed by health care patients electronically if:
71.10 	(1) the group purchaser making the uniform explanation of benefits available 
71.11 	electronically provides health care patients the ability to choose whether to receive paper, 
71.12 	electronic, or both paper and electronic versions of their uniform explanation of benefits;
71.13 	(2) the group purchaser provides clear, readily accessible information and instructions 
71.14 	for the patient to communicate their choice; and
71.15 	(3) health care patients not responding to the opportunity to make a choice will receive 
71.16 	at a minimum a paper uniform explanation of benefits.
71.17 	(c) The commissioner, after consulting with the Administrative Uniformity Committee, 
71.18 	shall specify the data elements and definitions for the paper uniform explanation of benefits 
71.19 	document. The commissioner and the Administrative Uniformity Committee must consult 
71.20 	with the Minnesota Dental Association and Delta Dental Plan of Minnesota before requiring 
71.21 	under this section the use of a paper document for the uniform explanation of benefits 
71.22 	document or the uniform claim payment/advice transaction for dental care services. Any 
71.23 	electronic version of the uniform explanation of benefits must use the same data elements 
71.24 	and definitions as the paper uniform explanation of benefits.
71.25 		Subd. 5.Effective date. The requirements in subdivisions 1 and 2 are effective June 30, 
71.26 	2007. The requirements in subdivisions 1 and 2 apply regardless of when the health care 
71.27 	service was provided to the patient.

71.28 	Sec. 6. Minnesota Statutes 2024, section 62J.84, subdivision 2, is amended to read:
71.29 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
71.30 	have the meanings given.
71.31 	(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics 
71.32 	license application approved under United States Code, title 42, section 262(K)(3).
72.1 	(c) "Brand name drug" means a drug that is produced or distributed pursuant to:
72.2 	(1) a new drug application approved under United States Code, title 21, section 355(c), 
72.3 	except for a generic drug as defined under Code of Federal Regulations, title 42, section 
72.4 	447.502; or
72.5 	(2) a biologics license application approved under United States Code, title 42, section 
72.6 	262(a)(c).
72.7 	(d) "Commissioner" means the commissioner of health.
72.8 	(e) "Generic drug" means a drug that is marketed or distributed pursuant to:
72.9 	(1) an abbreviated new drug application approved under United States Code, title 21, 
72.10 	section 355(j);
72.11 	(2) an authorized generic as defined under Code of Federal Regulations, title 42, section 
72.12 	447.502; or
72.13 	(3) a drug that entered the market the year before 1962 and was not originally marketed 
72.14 	under a new drug application.
72.15 	(f) "Manufacturer" means a drug manufacturer licensed under section 151.252.
72.16 	(g) "New prescription drug" or "new drug" means a prescription drug approved for 
72.17 	marketing by the United States Food and Drug Administration (FDA) for which no previous 
72.18 	wholesale acquisition cost has been established for comparison.
72.19 	(h) "Patient assistance program" means a program that a manufacturer offers to the public 
72.20 	in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs 
72.21 	by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other 
72.22 	means.
72.23 	(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision 
72.24 	8.
72.25 	(j) "Price" means the wholesale acquisition cost as defined in United States Code, title 
72.26 	42, section 1395w-3a(c)(6)(B).
72.27 	(k) "30-day supply" means the total daily dosage units of a prescription drug 
72.28 	recommended by the prescribing label approved by the FDA for 30 days. If the 
72.29 	FDA-approved prescribing label includes more than one recommended daily dosage, the 
72.30 	30-day supply is based on the maximum recommended daily dosage on the FDA-approved 
72.31 	prescribing label.
73.1 	(l) "Course of treatment" means the total dosage of a single prescription for a prescription 
73.2 	drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing 
73.3 	label includes more than one recommended dosage for a single course of treatment, the 
73.4 	course of treatment is the maximum recommended dosage on the FDA-approved prescribing 
73.5 	label.
73.6 	(m) "Drug product family" means a group of one or more prescription drugs that share 
73.7 	a unique generic drug description or nontrade name and dosage form.
73.8 	(n) "Individual salable unit" means the smallest container of product introduced into 
73.9 	commerce by the manufacturer or repackager that is intended by the manufacturer or 
73.10 	repackager for individual sale to a dispenser.
73.11 	(o) (n) "National drug code" means the three-segment code maintained by the federal 
73.12 	Food and Drug Administration that includes a labeler code, a product code, and a package 
73.13 	code for a drug product and that has been converted to an 11-digit format consisting of five 
73.14 	digits in the first segment, four digits in the second segment, and two digits in the third 
73.15 	segment. A three-segment code shall be considered converted to an 11-digit format when, 
73.16 	as necessary, at least one "0" has been added to the front of each segment containing less 
73.17 	than the specified number of digits such that each segment contains the specified number 
73.18 	of digits.
73.19 	(p) (o) "Pharmacy" or "pharmacy provider" means a community/outpatient pharmacy 
73.20 	as defined in Minnesota Rules, part 6800.0100, subpart 2, that is also licensed as a pharmacy 
73.21 	by the Board of Pharmacy under section 151.19.
73.22 	(q) (p) "Pharmacy benefit manager" or "PBM" means an entity licensed to act as a 
73.23 	pharmacy benefit manager under section 62W.03.
73.24 	(r) (q) "Pricing unit" means the smallest dispensable amount of a prescription drug 
73.25 	product that could be dispensed or administered.
73.26 	(s) (r) "Rebate" means a discount, chargeback, or other price concession that affects the 
73.27 	price of a prescription drug product, regardless of whether conferred through regular 
73.28 	aggregate payments, on a claim-by-claim basis at the point of sale, as part of retrospective 
73.29 	financial reconciliations, including reconciliations that also reflect other contractual 
73.30 	arrangements, or by any other method. "Rebate" does not mean a bona fide service fee as 
73.31 	defined in Code of Federal Regulations, title 42, section 447.502.
73.32 	(t) (s) "Reporting entity" means any manufacturer, pharmacy, pharmacy benefit manager, 
73.33 	wholesale drug distributor, or any other entity required to submit data under this section.
74.1 	(u) (t) "Wholesale drug distributor" or "wholesaler" means an entity that:
74.2 	(1) is licensed to act as a wholesale drug distributor under section 151.47; and.
74.3 	(2) distributes prescription drugs, for which it is not the manufacturer, to persons or 
74.4 	entities, or both, other than a consumer or patient in the state.

74.5 	Sec. 7. Minnesota Statutes 2024, section 62J.84, subdivision 3, is amended to read:
74.6 		Subd. 3.Prescription drug price increases reporting. (a) Beginning January 1, 2022, 
74.7 	a drug manufacturer must submit to the commissioner the information described in paragraph 
74.8 	(b) for each prescription drug for which the price was $100 or greater for a 30-day supply 
74.9 	or for a course of treatment lasting less than 30 days and:
74.10 	(1) for brand name drugs where there is an increase of ten percent or greater in the price 
74.11 	over the previous 12-month period or an increase of 16 percent or greater in the price over 
74.12 	the previous 24-month period; and
74.13 	(2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in 
74.14 	the price over the previous 12-month period.
74.15 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
74.16 	the commissioner no later than 60 days after the price increase goes into effect, in the form 
74.17 	and manner prescribed by the commissioner, the following information, if applicable:
74.18 	(1) the description and price of the drug and the net increase, expressed as a percentage, 
74.19 	with the following listed separately:
74.20 	(i) the national drug code;
74.21 	(ii) the product name;
74.22 	(iii) the dosage form;
74.23 	(iv) the strength; and
74.24 	(v) the package size;
74.25 	(2) the factors that contributed to the price increase;
74.26 	(3) the name of any generic version of the prescription drug available on the market;
74.27 	(4) the year the prescription drug was introduced for sale in the United States;
74.28 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
74.29 	the United States and the price of the drug on the last day of each of the five calendar years 
74.30 	preceding the price increase;
75.1 	(5) (6) the direct costs incurred during the previous 12-month period by the manufacturer 
75.2 	that are associated with the prescription drug, listed separately:
75.3 	(i) to manufacture the prescription drug;
75.4 	(ii) to market the prescription drug, including advertising costs; and
75.5 	(iii) to distribute the prescription drug;
75.6 	(7) the number of units of the prescription drug sold during the previous 12-month period;
75.7 	(6) (8) the total sales revenue for the prescription drug during the previous 12-month 
75.8 	period;
75.9 	(9) the total rebate payable amount accrued for the prescription drug during the previous 
75.10 	12-month period;
75.11 	(7) (10) the manufacturer's net profit attributable to the prescription drug during the 
75.12 	previous 12-month period;
75.13 	(8) (11) the total amount of financial assistance the manufacturer has provided through 
75.14 	patient prescription assistance programs during the previous 12-month period, if applicable;
75.15 	(9) (12) any agreement between a manufacturer and another entity contingent upon any 
75.16 	delay in offering to market a generic version of the prescription drug;
75.17 	(10) (13) the patent expiration date of the prescription drug if it is under patent;
75.18 	(11) (14) the name and location of the company that manufactured the drug;
75.19 	(12) (15) if a brand name prescription drug, the highest price paid for the prescription 
75.20 	drug during the previous calendar year in the ten countries, excluding the United States, 
75.21 	that charged the highest single price for the prescription drug; and
75.22 	(13) (16) if the prescription drug was acquired by the manufacturer during the previous 
75.23 	12-month period, all of the following information:
75.24 	(i) price at acquisition;
75.25 	(ii) price in the calendar year prior to acquisition;
75.26 	(iii) name of the company from which the drug was acquired;
75.27 	(iv) date of acquisition; and
75.28 	(v) acquisition price.
75.29 	(c) The manufacturer may submit any documentation necessary to support the information 
75.30 	reported under this subdivision.

76.1 	Sec. 8. Minnesota Statutes 2024, section 62J.84, subdivision 6, is amended to read:
76.2 		Subd. 6.Public posting of prescription drug price information. (a) The commissioner 
76.3 	shall post on the department's website, or may contract with a private entity or consortium 
76.4 	that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the 
76.5 	following information:
76.6 	(1) a list of the prescription drugs reported under subdivisions 3, 4, and 11 to 14 and the 
76.7 	manufacturers of those prescription drugs; and
76.8 	(2) a list of reporting entities that reported prescription drug price information under 
76.9 	subdivisions 3, 4, and 11 to 14; and
76.10 	(2) (3) information reported to the commissioner under subdivisions 3, 4, and 11 to 14, 
76.11 	aggregated on a per-drug basis in a manner that does not allow the identification of a reporting 
76.12 	entity that is not the manufacturer of the drug.
76.13 	(b) The information must be published in an easy-to-read format and in a manner that 
76.14 	identifies the information that is disclosed on a per-drug basis and must not be aggregated 
76.15 	in a manner that prevents the identification of the prescription drug.
76.16 	(c) The commissioner shall not post to the department's website or a private entity 
76.17 	contracting with the commissioner shall not post any information described in this section 
76.18 	if the information is not public data under section 13.02, subdivision 8a; or is trade secret 
76.19 	information under section 13.37, subdivision 1, paragraph (b); or is trade secret information 
76.20 	pursuant to the Defend Trade Secrets Act of 2016, United States Code, title 18, section 
76.21 	1836, as amended. If a reporting entity believes information should be withheld from public 
76.22 	disclosure pursuant to this paragraph, the reporting entity must clearly and specifically 
76.23 	identify that information and describe the legal basis in writing when the reporting entity 
76.24 	submits the information under this section. If the commissioner disagrees with the reporting 
76.25 	entity's request to withhold information from public disclosure, the commissioner shall 
76.26 	provide the reporting entity written notice that the information will be publicly posted 30 
76.27 	days after the date of the notice.
76.28 	(d) If the commissioner withholds any information from public disclosure pursuant to 
76.29 	this subdivision, the commissioner shall post to the department's website a report describing 
76.30 	the nature of the information and the commissioner's basis for withholding the information 
76.31 	from disclosure.
76.32 	(e) To the extent the information required to be posted under this subdivision is collected 
76.33 	and made available to the public by another state, by the University of Minnesota, or through 
77.1 	an online drug pricing reference and analytical tool, the commissioner may reference the 
77.2 	availability of this drug price data from another source including, within existing 
77.3 	appropriations, creating the ability of the public to access the data from the source for 
77.4 	purposes of meeting the reporting requirements of this subdivision.

77.5 	Sec. 9. Minnesota Statutes 2024, section 62J.84, subdivision 10, is amended to read:
77.6 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
77.7 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
77.8 	department's website a list of prescription drugs that the commissioner determines to represent 
77.9 	a substantial public interest and for which the commissioner intends to request data under 
77.10 	subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion 
77.11 	of prescription drugs on any information the commissioner determines is relevant to providing 
77.12 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
77.13 	the state, and the commissioner shall consider drug product families that include prescription 
77.14 	drugs:
77.15 	(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;
77.16 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
77.17 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
77.18 	are available; or
77.19 	(3) that are identified by members of the public during a public comment process.
77.20 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
77.21 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
77.22 	department of:
77.23 	(1) the requirement to report under subdivisions 11 to 14.; and
77.24 	(2) the reporting period for which data must be provided.
77.25 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
77.26 	substantial public interest in any one notice.
77.27 	(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14, 
77.28 	including section 14.386, in implementing this subdivision.

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

78.1 	Sec. 10. Minnesota Statutes 2024, section 62J.84, subdivision 11, is amended to read:
78.2 		Subd. 11.Manufacturer prescription drug substantial public interest reporting. (a) 
78.3 	Beginning January 1, 2024, a manufacturer must submit to the commissioner the information 
78.4 	described in paragraph (b) for any prescription drug:
78.5 	(1) included in a notification to report issued to the manufacturer by the department 
78.6 	under subdivision 10;
78.7 	(2) which the manufacturer manufactures or repackages;
78.8 	(3) for which the manufacturer sets the wholesale acquisition cost; and
78.9 	(4) for which the manufacturer has not submitted data under subdivision 3 during the 
78.10 	120-day period prior to the date of the notification to report.
78.11 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
78.12 	the commissioner no later than 60 days after the date of the notification to report, in the 
78.13 	form and manner prescribed by the commissioner, the following information, if applicable:
78.14 	(1) a description of the drug with the following listed separately:
78.15 	(i) the national drug code;
78.16 	(ii) the product name;
78.17 	(iii) the dosage form;
78.18 	(iv) the strength; and
78.19 	(v) the package size;
78.20 	(2) the price of the drug product on the later of:
78.21 	(i) the day one year prior to the date of the notification to report;
78.22 	(ii) the introduced to market date; or
78.23 	(iii) the acquisition date;
78.24 	(3) the price of the drug product on the date of the notification to report;
78.25 	(4) the year the prescription drug was introduced for sale in the United States;
78.26 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
78.27 	the United States and the price of the drug on the last day of each of the five calendar years 
78.28 	preceding the date of the notification to report;
79.1 	(5) (6) the direct costs incurred during the 12-month period prior to the date of reporting 
79.2 	period specified in the notification to report by the manufacturers that are associated with 
79.3 	the prescription drug, listed separately:
79.4 	(i) to manufacture the prescription drug;
79.5 	(ii) to market the prescription drug, including advertising costs; and
79.6 	(iii) to distribute the prescription drug;
79.7 	(6) (7) the number of units of the prescription drug sold during the 12-month period 
79.8 	prior to the date of reporting period specified in the notification to report;
79.9 	(7) (8) the total sales revenue for the prescription drug during the 12-month period prior 
79.10 	to the date of reporting period specified in the notification to report;
79.11 	(8) (9) the total rebate payable amount accrued for the prescription drug during the 
79.12 	12-month period prior to the date of reporting period specified in the notification to report;
79.13 	(9) (10) the manufacturer's net profit attributable to the prescription drug during the 
79.14 	12-month period prior to the date of reporting period specified in the notification to report;
79.15 	(10) (11) the total amount of financial assistance the manufacturer has provided through 
79.16 	patient prescription assistance programs during the 12-month period prior to the date of
79.17 	reporting period specified in the notification to report, if applicable;
79.18 	(11) (12) any agreement between a manufacturer and another entity contingent upon 
79.19 	any delay in offering to market a generic version of the prescription drug;
79.20 	(12) (13) the patent expiration date of the prescription drug if the prescription drug is 
79.21 	under patent;
79.22 	(13) (14) the name and location of the company that manufactured the drug;
79.23 	(14) (15) if the prescription drug is a brand name prescription drug, the ten countries 
79.24 	other than the United States that paid the highest prices for the prescription drug during the 
79.25 	previous calendar year and their prices; and
79.26 	(15) (16) if the prescription drug was acquired by the manufacturer within a 12-month 
79.27 	period prior to the date of the reporting period specified in the notification to report, all of 
79.28 	the following information:
79.29 	(i) the price at acquisition;
79.30 	(ii) the price in the calendar year prior to acquisition;
79.31 	(iii) the name of the company from which the drug was acquired;
80.1 	(iv) the date of acquisition; and
80.2 	(v) the acquisition price.
80.3 	(c) The manufacturer may submit any documentation necessary to support the information 
80.4 	reported under this subdivision.

80.5 	Sec. 11. Minnesota Statutes 2024, section 62J.84, subdivision 12, is amended to read:
80.6 		Subd. 12.Pharmacy prescription drug substantial public interest reporting. (a) 
80.7 	Beginning January 1, 2024, a pharmacy must submit to the commissioner the information 
80.8 	described in paragraph (b) for any prescription drug:
80.9 	(1) included in a notification to report issued to the pharmacy by the department under 
80.10 	subdivision 10.; and
80.11 	(2) that the pharmacy dispensed in Minnesota or mailed to a Minnesota address.
80.12 	(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the 
80.13 	commissioner no later than 60 days after the date of the notification to report, in the form 
80.14 	and manner prescribed by the commissioner, the following information, if applicable:
80.15 	(1) a description of the drug with the following listed separately:
80.16 	(i) the national drug code;
80.17 	(ii) the product name;
80.18 	(iii) the dosage form;
80.19 	(iv) the strength; and
80.20 	(v) the package size;
80.21 	(2) the number of units of the drug acquired during the 12-month period prior to the date 
80.22 	of reporting period specified in the notification to report;
80.23 	(3) the total spent before rebates by the pharmacy to acquire the drug during the 12-month 
80.24 	period prior to the date of reporting period specified in the notification to report;
80.25 	(4) the total rebate receivable amount accrued by the pharmacy for the drug during the 
80.26 	12-month period prior to the date of reporting period specified in the notification to report;
80.27 	(5) the number of pricing units of the drug dispensed by the pharmacy during the 
80.28 	12-month period prior to the date of reporting period specified in the notification to report;
81.1 	(6) the total payment receivable by the pharmacy for dispensing the drug including 
81.2 	ingredient cost, dispensing fee, and administrative fees during the 12-month period prior 
81.3 	to the date of reporting period specified in the notification to report;
81.4 	(7) the total rebate payable amount accrued by the pharmacy for the drug during the 
81.5 	12-month period prior to the date of reporting period specified in the notification to report; 
81.6 	and
81.7 	(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed 
81.8 	where no claim was submitted to a health care service plan or health insurer during the 
81.9 	12-month period prior to the date of reporting period specified in the notification to report.
81.10 	(c) The pharmacy may submit any documentation necessary to support the information 
81.11 	reported under this subdivision.
81.12 	(d) The commissioner may grant extensions, exemptions, or both to compliance with 
81.13 	the requirements of paragraphs (a) and (b) by small or independent pharmacies, if compliance 
81.14 	with paragraphs (a) and (b) would represent a hardship or undue burden to the pharmacy. 
81.15 	The commissioner may establish procedures for small or independent pharmacies to request 
81.16 	extensions or exemptions under this paragraph.

81.17 	Sec. 12. Minnesota Statutes 2024, section 62J.84, subdivision 13, is amended to read:
81.18 		Subd. 13.PBM prescription drug substantial public interest reporting. (a) Beginning 
81.19 	January 1, 2024, a PBM must submit to the commissioner the information described in 
81.20 	paragraph (b) for any prescription drug:
81.21 	(1) included in a notification to report issued to the PBM by the department under 
81.22 	subdivision 10.; and
81.23 	(2) for which the PBM fulfilled pharmacy benefit management duties for Minnesota 
81.24 	residents.
81.25 	(b) For each of the drugs described in paragraph (a), the PBM shall submit to the 
81.26 	commissioner no later than 60 days after the date of the notification to report, in the form 
81.27 	and manner prescribed by the commissioner, the following information, if applicable:
81.28 	(1) a description of the drug with the following listed separately:
81.29 	(i) the national drug code;
81.30 	(ii) the product name;
81.31 	(iii) the dosage form;
82.1 	(iv) the strength; and
82.2 	(v) the package size;
82.3 	(2) the number of pricing units of the drug product filled for which the PBM administered 
82.4 	claims during the 12-month period prior to the date of reporting period specified in the 
82.5 	notification to report;
82.6 	(3) the total reimbursement amount accrued and payable to pharmacies for pricing units 
82.7 	of the drug product filled for which the PBM administered claims during the 12-month 
82.8 	period prior to the date of reporting period specified in the notification to report;
82.9 	(4) the total reimbursement or administrative fee amount, or both, accrued and receivable 
82.10 	from payers for pricing units of the drug product filled for which the PBM administered 
82.11 	claims during the 12-month period prior to the date of reporting period specified in the 
82.12 	notification to report;
82.13 	(5) the total administrative fee amount accrued and receivable from payers for pricing 
82.14 	units of the drug product filled during the reporting period specified in the notification to 
82.15 	report;
82.16 	(5) (6) the total rebate receivable amount accrued by the PBM for the drug product 
82.17 	during the 12-month period prior to the date of reporting period specified in the notification 
82.18 	to report; and
82.19 	(6) (7) the total rebate payable amount accrued by the PBM for the drug product during 
82.20 	the 12-month period prior to the date of reporting period specified in the notification to 
82.21 	report.
82.22 	(c) The PBM may submit any documentation necessary to support the information 
82.23 	reported under this subdivision.

82.24 	Sec. 13. Minnesota Statutes 2024, section 62J.84, subdivision 14, is amended to read:
82.25 		Subd. 14.Wholesale drug distributor prescription drug substantial public interest 
82.26 	reporting. (a) Beginning January 1, 2024, a wholesale drug distributor that distributes 
82.27 	prescription drugs, for which it is not the manufacturer, to persons or entities, or both, other 
82.28 	than a consumer or patient in the state, must submit to the commissioner the information 
82.29 	described in paragraph (b) for any prescription drug:
82.30 	(1) included in a notification to report issued to the wholesale drug distributor by the 
82.31 	department under subdivision 10.; and
82.32 	(2) that the wholesale drug distributor distributed within or into Minnesota.
83.1 	(b) For each of the drugs described in paragraph (a), the wholesale drug distributor shall 
83.2 	submit to the commissioner no later than 60 days after the date of the notification to report, 
83.3 	in the form and manner prescribed by the commissioner, the following information, if 
83.4 	applicable:
83.5 	(1) a description of the drug with the following listed separately:
83.6 	(i) the national drug code;
83.7 	(ii) the product name;
83.8 	(iii) the dosage form;
83.9 	(iv) the strength; and
83.10 	(v) the package size;
83.11 	(2) the number of units of the drug product acquired by the wholesale drug distributor 
83.12 	during the 12-month period prior to the date of reporting period specified in the notification 
83.13 	to report;
83.14 	(3) the total spent before rebates by the wholesale drug distributor to acquire the drug 
83.15 	product during the 12-month period prior to the date of reporting period specified in the 
83.16 	notification to report;
83.17 	(4) the total rebate receivable amount accrued by the wholesale drug distributor for the 
83.18 	drug product during the 12-month period prior to the date of reporting period specified in
83.19 	the notification to report;
83.20 	(5) the number of units of the drug product sold by the wholesale drug distributor during 
83.21 	the 12-month period prior to the date of reporting period specified in the notification to 
83.22 	report;
83.23 	(6) gross revenue from sales in the United States generated by the wholesale drug 
83.24 	distributor for this the drug product during the 12-month period prior to the date of reporting 
83.25 	period specified in the notification to report; and
83.26 	(7) total rebate payable amount accrued by the wholesale drug distributor for the drug 
83.27 	product during the 12-month period prior to the date of reporting period specified in the 
83.28 	notification to report.
83.29 	(c) The wholesale drug distributor may submit any documentation necessary to support 
83.30 	the information reported under this subdivision.

84.1 	Sec. 14. Minnesota Statutes 2024, section 62J.84, subdivision 15, is amended to read:
84.2 		Subd. 15.Registration requirements. Beginning Effective January 1, 2024 2026, a 
84.3 	reporting entity subject to this chapter shall register, or update existing registration 
84.4 	information, with the department in a form and manner prescribed by the commissioner by 
84.5 	January 30 each year.

84.6 	Sec. 15. Minnesota Statutes 2024, section 62K.10, subdivision 2, is amended to read:
84.7 		Subd. 2.Primary care; mental health services; general hospital services Time and 
84.8 	distance standards. The maximum travel distance or time shall be the lesser of 30 miles 
84.9 	or 30 minutes to the nearest provider of each of the following services: primary care services, 
84.10 	mental health services, and general hospital services Health carriers must meet the time and 
84.11 	distance standards under Code of Federal Regulations, title 45, section 155.1050.

84.12 	Sec. 16. Minnesota Statutes 2024, section 62K.10, subdivision 5, is amended to read:
84.13 		Subd. 5.Waiver. (a) A health carrier may apply to the commissioner of health for a 
84.14 	waiver of the requirements in subdivision 2 or 3 if it is unable to meet the statutory 
84.15 	requirements. A waiver application must be submitted on a form provided by the 
84.16 	commissioner, must be accompanied by an application fee of $500 for each application to 
84.17 	waive the requirements in subdivision 2 or 3 for one or more provider types per county, and 
84.18 	must:
84.19 	(1) demonstrate with specific data that the requirement of subdivision 2 or 3 is not 
84.20 	feasible in a particular service area or part of a service area; and
84.21 	(2) include specific information as to the steps that were and will be taken to address 
84.22 	the network inadequacy, and, for steps that will be taken prospectively to address network 
84.23 	inadequacy, the time frame within which those steps will be taken.
84.24 	(b) The commissioner shall establish guidelines for evaluating waiver applications, 
84.25 	standards governing approval or denial of a waiver application, and standards for steps that 
84.26 	health carriers must take to address the network inadequacy and allow the health carrier to 
84.27 	meet network adequacy requirements within a reasonable time period. The commissioner 
84.28 	shall review each waiver application using these guidelines and standards and shall approve 
84.29 	a waiver application only if:
84.30 	(1) the standards for approval established by the commissioner are satisfied; and
84.31 	(2) the steps that were and will be taken to address the network inadequacy and the time 
84.32 	frame for taking these steps satisfy the standards established by the commissioner.
85.1 	(c) If, in its waiver application, a health carrier demonstrates to the commissioner that 
85.2 	there are no providers of a specific type or specialty in a county, the commissioner may 
85.3 	approve a waiver in which the health carrier is allowed to address network inadequacy in 
85.4 	that county by providing for patient access to providers of that type or specialty via telehealth, 
85.5 	as defined in section 62A.673, subdivision 2.
85.6 	(d) The waiver shall automatically expire after one year. Upon or prior to expiration of 
85.7 	a waiver, a health carrier unable to meet the requirements in subdivision 2 or 3 must submit 
85.8 	a new waiver application under paragraph (a) and must also submit evidence of steps the 
85.9 	carrier took to address the network inadequacy. When the commissioner reviews a waiver 
85.10 	application for a network adequacy requirement which has been waived for the carrier for 
85.11 	the most recent one-year period, the commissioner shall also examine the steps the carrier 
85.12 	took during that one-year period to address network inadequacy, and shall only approve a 
85.13 	subsequent waiver application that satisfies the requirements in paragraph (b), demonstrates 
85.14 	that the carrier took the steps it proposed to address network inadequacy, and explains why 
85.15 	the carrier continues to be unable to satisfy the requirements in subdivision 2 or 3.
85.16 	(e) Application fees collected under this subdivision shall be deposited in the state 
85.17 	government special revenue fund in the state treasury.

85.18 	Sec. 17. Minnesota Statutes 2024, section 62K.10, subdivision 6, is amended to read:
85.19 		Subd. 6.Referral centers. Subdivisions Subdivision 2 and 3 shall not apply if an enrollee 
85.20 	is referred to a referral center for health care services. A referral center is a medical facility 
85.21 	that provides highly specialized medical care, including but not limited to organ transplants. 
85.22 	A health carrier or preferred provider organization may consider the volume of services 
85.23 	provided annually, case mix, and severity adjusted mortality and morbidity rates in 
85.24 	designating a referral center.

85.25 	Sec. 18. Minnesota Statutes 2024, section 103I.005, subdivision 17b, is amended to read:
85.26 		Subd. 17b.Temporary boring. "Temporary boring" means an excavation that is 15 
85.27 	feet or more in depth, is sealed within 72 hours of the time of construction, and is drilled, 
85.28 	cored, washed, driven, dug, jetted, or otherwise constructed to:
85.29 	(1) conduct physical, chemical, or biological testing of groundwater, including 
85.30 	groundwater quality monitoring;
86.1 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
86.2 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
86.3 	resistance;
86.4 	(3) measure groundwater levels, including use of a piezometer; and or
86.5 	(4) determine groundwater flow direction or velocity.

86.6 	Sec. 19. Minnesota Statutes 2024, section 103I.101, subdivision 2, is amended to read:
86.7 		Subd. 2.Duties. The commissioner shall:
86.8 	(1) regulate the drilling, construction, modification, repair, and sealing of wells and 
86.9 	borings;
86.10 	(2) examine and license:
86.11 	(i) well contractors;
86.12 	(ii) persons constructing, repairing, and sealing bored geothermal heat exchangers;
86.13 	(iii) persons modifying or repairing well casings above the pitless unit or adaptor, well 
86.14 	screens, well diameters, and installing well pumps or pumping equipment;
86.15 	(iv) persons constructing, repairing, and sealing dewatering wells;
86.16 	(v) persons sealing wells or borings; and
86.17 	(vi) persons excavating or drilling holes for the installation of elevator borings; and
86.18 	(vii) persons installing, removing, or maintaining groundwater thermal exchange devices 
86.19 	and submerged closed loop heat exchangers;
86.20 	(3) examine and license environmental well contractors;
86.21 	(4) license explorers engaged in exploratory boring and examine individuals who 
86.22 	supervise or oversee exploratory boring;
86.23 	(5) after consultation with the commissioner of natural resources and the Pollution 
86.24 	Control Agency, establish standards for the design, location, construction, repair, and sealing 
86.25 	of wells and borings within the state; and
86.26 	(6) issue permits for wells, groundwater thermal devices, bored geothermal heat 
86.27 	exchangers, installation of submerged closed loop heat exchanger systems, and elevator 
86.28 	borings.

87.1 	Sec. 20. Minnesota Statutes 2024, section 103I.101, subdivision 5, is amended to read:
87.2 		Subd. 5.Commissioner to adopt rules. The commissioner shall adopt rules including:
87.3 	(1) issuance of licenses for:
87.4 	(i) qualified well contractors;
87.5 	(ii) persons constructing, repairing, and sealing dewatering wells;
87.6 	(iii) persons sealing wells or borings;
87.7 	(iv) persons installing, modifying, or repairing well casings, well screens, well diameters, 
87.8 	and well pumps or pumping equipment;
87.9 	(v) persons constructing, repairing, and sealing bored geothermal heat exchangers;
87.10 	(vi) persons constructing, repairing, and sealing elevator borings; and
87.11 	(vii) persons constructing, repairing, and sealing environmental wells; and
87.12 	(viii) persons installing, removing, or maintaining groundwater thermal exchange devices 
87.13 	and submerged closed loop heat exchangers;
87.14 	(2) establishment of conditions for examination and review of applications for license 
87.15 	and certification;
87.16 	(3) establishment of conditions for revocation and suspension of license and certification;
87.17 	(4) establishment of minimum standards for design, location, construction, repair, and 
87.18 	sealing of wells and borings to implement the purpose and intent of this chapter;
87.19 	(5) establishment of a system for reporting on wells and borings drilled and sealed;
87.20 	(6) establishment of standards for the construction, maintenance, sealing, and water 
87.21 	quality monitoring of wells in areas of known or suspected contamination;
87.22 	(7) establishment of wellhead protection measures for wells serving public water supplies;
87.23 	(8) establishment of procedures to coordinate collection of well and boring data with 
87.24 	other state and local governmental agencies;
87.25 	(9) establishment of criteria and procedures for submission of well and boring logs, 
87.26 	formation samples or well or boring cuttings, water samples, or other special information 
87.27 	required for and water resource mapping; and
87.28 	(10) establishment of minimum standards for design, location, construction, maintenance, 
87.29 	repair, sealing, safety, and resource conservation related to borings, including exploratory 
87.30 	borings as defined in section 103I.005, subdivision 9.

88.1 	Sec. 21. Minnesota Statutes 2024, section 103I.101, is amended by adding a subdivision 
88.2 	to read:
88.3 		Subd. 7.Inspection. At a minimum, the commissioner of health shall inspect at least 
88.4 	25 percent of well construction notifications each year under this section.

88.5 	Sec. 22. Minnesota Statutes 2024, section 138.912, subdivision 1, is amended to read:
88.6 		Subdivision 1.Establishment. The healthy eating, here at home program is established 
88.7 	to provide incentives for low-income Minnesotans to use federal Supplemental Nutrition 
88.8 	Assistance Program (SNAP) or SUN bucks (Summer EBT) benefits for healthy purchases 
88.9 	at Minnesota-based farmers' markets, mobile markets, and direct-farmer sales, including 
88.10 	community-supported agriculture shares.

88.11 	Sec. 23. Minnesota Statutes 2024, section 138.912, subdivision 2, is amended to read:
88.12 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
88.13 	(b) "Healthy eating, here at home" means a program administered by the Minnesota 
88.14 	Humanities Center Department of Health to provide incentives for low-income Minnesotans 
88.15 	to use SNAP or SUN bucks (Summer EBT) benefits for healthy purchases at Minnesota-based 
88.16 	farmers' markets.
88.17 	(c) "Healthy purchases" means SNAP-eligible foods.
88.18 	(d) "Minnesota-based farmers' market" means a physical market as defined in section 
88.19 	28A.151, subdivision 1, paragraph (b), and also includes mobile markets and direct-farmer 
88.20 	sales, including through a community-supported agriculture model.
88.21 	(e) "Voucher" means a physical or electronic credit.
88.22 	(f) "Eligible household" means an individual or family that is determined to be a recipient 
88.23 	of SNAP or SUN bucks (Summer EBT).

88.24 	Sec. 24. Minnesota Statutes 2024, section 138.912, subdivision 3, is amended to read:
88.25 		Subd. 3.Grants. The Minnesota Humanities Center commissioner shall allocate grant 
88.26 	funds to nonprofit organizations that work with Minnesota-based farmers' markets to provide 
88.27 	up to $10 vouchers to SNAP or SUN bucks (Summer EBT) participants who use electronic 
88.28 	benefits transfer (EBT) cards for healthy purchases. Funds may also be provided for vouchers 
88.29 	distributed through nonprofit organizations engaged in healthy cooking and food education 
88.30 	outreach to eligible households for use at farmers' markets. Funds appropriated under this 
88.31 	section may not be used for healthy cooking classes or food education outreach. When 
89.1 	awarding grants, the Minnesota Humanities Center commissioner must consider how the 
89.2 	nonprofit organizations will achieve geographic balance, including specific efforts to reach 
89.3 	eligible households across the state, and the organizations' capacity to manage the 
89.4 	programming and outreach.

89.5 	Sec. 25. Minnesota Statutes 2024, section 138.912, subdivision 4, is amended to read:
89.6 		Subd. 4.Household eligibility; participation. To be eligible for a healthy eating, here 
89.7 	at home voucher, an eligible household must meet the Minnesota SNAP or SUN bucks 
89.8 	(Summer EBT) eligibility requirements under section 142F.10.

89.9 	Sec. 26. Minnesota Statutes 2024, section 138.912, subdivision 6, is amended to read:
89.10 		Subd. 6.Program reporting. The nonprofit organizations that receive grant funds must 
89.11 	report annually to the Minnesota Humanities Center commissioner with information regarding 
89.12 	the operation of the program, including the number of vouchers issued and the number of 
89.13 	people served. To the extent practicable, the nonprofit organizations must report on the 
89.14 	usage of the vouchers and evaluate the program's effectiveness.

89.15 	Sec. 27. Minnesota Statutes 2024, section 144.0758, subdivision 3, is amended to read:
89.16 		Subd. 3.Eligible grantees. (a) Organizations eligible to receive grant funding under 
89.17 	this section are Minnesota's Tribal Nations in accordance with paragraph (b) and urban 
89.18 	American Indian community-based organizations in accordance with paragraph (c).
89.19 	(b) Minnesota's Tribal Nations may choose to receive funding under this section according 
89.20 	to a noncompetitive funding formula specified by the commissioner.
89.21 	(c) Urban American Indian community-based organizations are eligible to apply for 
89.22 	funding under this section by submitting a proposal for consideration by the commissioner.

89.23 	Sec. 28. Minnesota Statutes 2024, section 144.1222, subdivision 2d, is amended to read:
89.24 		Subd. 2d.Hot tubs Spa pools on rental houseboats property. (a) For the purposes of 
89.25 	this subdivision, "spa pool" has the meaning given in Minnesota Rules, part 4717.0250, 
89.26 	subpart 9.
89.27 	(a)(b) Except as provided in paragraph (c), a hot water spa pool intended for seated 
89.28 	recreational use, including a hot tub or whirlpool, that is located on a houseboat that is rented 
89.29 	to the public the property of a stand-alone, single-unit rental property, offered for rent by 
90.1 	the property owner or through a resort, and only intended to be used by the occupants of 
90.2 	the rental property:
90.3 	(1) is not a public pool and;
90.4 	(2) is exempt from the requirements for public pools under subdivisions 1 to 2c, 4, and 
90.5 	5 and Minnesota Rules, chapter 4717, except as otherwise provided in this paragraph; and
90.6 	(3) may be used by renters so long as:
90.7 	(i) the water temperature in the spa pool does not exceed 106 degrees Fahrenheit; and
90.8 	(ii) prior to check-in by each new rental party, the resort or property owner tests the 
90.9 	water in the spa pool for the concentration of chlorine or bromine, pH, and alkalinity, and 
90.10 	the water in the spa pool meets the requirements for disinfection residue, pH, and alkalinity 
90.11 	in Minnesota Rules, part 4717.1750, subparts 4, 5, and 6.
90.12 	(b) (c) A spa pool intended for seated recreational use, including a hot tub or whirlpool, 
90.13 	that is located on a houseboat that is rented to the public:
90.14 	(1) is not a public pool;
90.15 	(2) is exempt from the requirements for public pools under subdivisions 1 to 2c, 4, and 
90.16 	5 and Minnesota Rules, chapter 4717; and
90.17 	(3) is exempt from the requirements under paragraph (b), clause (3).
90.18 	(d) A political subdivision must not adopt a local law, rule, or ordinance that prohibits 
90.19 	the operation of, or establishes additional requirements for, a spa pool that meets the criteria 
90.20 	in paragraph (b) or (c).
90.21 	(e) A hot water spa pool under this subdivision must be conspicuously posted with the 
90.22 	following notice and must be provided to renters upon check in:
90.23 	"NOTICE
90.24 	This spa is exempt from state and local anti-entrapment and sanitary requirements that 
90.25 	prevent disease transmission waterborne diseases such as Legionnaires' disease, Pseudomonas 
90.26 	folliculitis (hot tub rash), and chemical burns and is not subject to inspection.
90.27 	USE AT YOUR OWN RISK
90.28 	This notice is required under Minnesota Statutes, section 144.1222, subdivision 2d."

91.1 	Sec. 29. Minnesota Statutes 2024, section 144.50, is amended by adding a subdivision to 
91.2 	read:
91.3 		Subd. 8.Controlling person. (a) "Controlling person" includes the following individuals, 
91.4 	if applicable, as deemed appropriate by the hospital:
91.5 	(1) any officer of the organization;
91.6 	(2) any hospital administrator; and
91.7 	(3) any managerial official.
91.8 	(b) Controlling person does not include:
91.9 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
91.10 	loan and thrift company, investment banking firm, or insurance company unless the entity 
91.11 	directly or through a subsidiary operates a hospital;
91.12 	(2) government and government-sponsored entities such as the United States Department 
91.13 	of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the 
91.14 	Minnesota Housing Finance Agency which provide loans, financing, and insurance products 
91.15 	for housing sites;
91.16 	(3) an individual who is a state or federal official, a state or federal employee, or a 
91.17 	member or employee of the governing body of a political subdivision of the state or federal 
91.18 	government that operates one or more hospitals, unless the individual is also an officer, 
91.19 	owner, or managerial official of the hospital, receives any remuneration from a hospital, or 
91.20 	who is a controlling person not otherwise excluded in this subdivision;
91.21 	(4) a natural person who is a member of a tax-exempt organization under section 290.05, 
91.22 	subdivision 2, unless the individual is also a controlling person not otherwise excluded in 
91.23 	this subdivision; and
91.24 	(5) a natural person who owns less than five percent of the outstanding common shares 
91.25 	of a corporation:
91.26 	(i) whose securities are exempt by virtue of section 80A.45, clause (6); or
91.27 	(ii) whose transactions are exempt by virtue of section 80A.46, clause (7).

91.28 	Sec. 30. Minnesota Statutes 2024, section 144.555, subdivision 1a, is amended to read:
91.29 		Subd. 1a.Notice of closing, curtailing operations, relocating services, or ceasing to 
91.30 	offer certain services; hospitals. (a) The controlling persons of a hospital licensed under 
91.31 	sections 144.50 to 144.56 or a hospital campus must notify the commissioner of health, the 
92.1 	public, and others at least 182 days before the hospital or hospital campus voluntarily plans 
92.2 	to implement one of the scheduled actions listed in paragraph (b), unless the controlling 
92.3 	persons can demonstrate to the commissioner that meeting the advanced notice requirement 
92.4 	is not feasible and the commissioner approves a shorter advanced notice.
92.5 	(b) The following scheduled actions require advanced notice under paragraph (a):
92.6 	(1) ceasing operations;
92.7 	(2) curtailing operations to the extent that patients inpatients or emergency department 
92.8 	services must be relocated;
92.9 	(3) relocating the provision of inpatient health services or emergency department services
92.10 	to another hospital or another hospital campus; or
92.11 	(4) ceasing to offer inpatient maternity care and inpatient newborn care services, inpatient
92.12 	intensive care unit services, inpatient mental health services, or inpatient substance use 
92.13 	disorder treatment services.
92.14 	(c) A notice required under this subdivision must comply with the requirements in 
92.15 	subdivision 1d.
92.16 	(d) The commissioner shall cooperate with the controlling persons and advise them 
92.17 	about relocating the patients.
92.18 	(e) For purposes of this subdivision, "inpatient" means services that are provided to a 
92.19 	person who has been admitted to a hospital for bed occupancy.

92.20 	Sec. 31. Minnesota Statutes 2024, section 144.555, subdivision 1b, is amended to read:
92.21 		Subd. 1b.Public hearing. Within 30 days after receiving notice under subdivision 1a, 
92.22 	the commissioner shall conduct a public hearing on the scheduled cessation of operations, 
92.23 	curtailment of operations, relocation of health services, or cessation in offering health 
92.24 	services. The commissioner must provide adequate public notice of the hearing in a time 
92.25 	and manner determined by the commissioner. The commissioner must ensure that video 
92.26 	conferencing technology will be used to allow members of the public to view and participate 
92.27 	in the hearing. The controlling persons of the hospital or hospital campus must participate 
92.28 	in the public hearing. The public hearing must be held at a location that is within ten miles 
92.29 	of the hospital or hospital campus and can accommodate anticipated public attendance or 
92.30 	with the commissioner's approval as close as is practicable, and that is provided or arranged 
92.31 	by the hospital or hospital campus. Video conferencing technology must be used to allow 
93.1 	members of the public to view and participate in the hearing. The public hearing must 
93.2 	include:
93.3 	(1) an explanation by the controlling persons of the reasons for ceasing or curtailing 
93.4 	operations, relocating health services, or ceasing to offer any of the listed health services;
93.5 	(2) a description of the actions that controlling persons will take to ensure that residents 
93.6 	in the hospital's or campus's service area have continued access to the health services being 
93.7 	eliminated, curtailed, or relocated;
93.8 	(3) an opportunity for public testimony for at least one hour on the scheduled cessation 
93.9 	or curtailment of operations, relocation of health services, or cessation in offering any of 
93.10 	the listed health services, and on the hospital's or campus's plan to ensure continued access 
93.11 	to those health services being eliminated, curtailed, or relocated; and
93.12 	(4) an opportunity for the controlling persons to respond to questions from interested 
93.13 	persons.

93.14 	Sec. 32. Minnesota Statutes 2024, section 144.608, subdivision 2, is amended to read:
93.15 		Subd. 2.Council administration. (a) The council must meet at least twice a year but 
93.16 	may meet more frequently at the call of the chair, a majority of the council members, or the 
93.17 	commissioner.
93.18 	(b) The terms, compensation, and removal of members of the council are governed by 
93.19 	section 15.059. The council expires June 30, 2025 2035.
93.20 	(c) The council may appoint subcommittees and work groups. Subcommittees shall 
93.21 	consist of council members. Work groups may include noncouncil members. Noncouncil 
93.22 	members shall be compensated for work group activities under section 15.059, subdivision 
93.23 	3, but shall receive expenses only.

93.24 	Sec. 33. Minnesota Statutes 2024, section 144.966, subdivision 2, is amended to read:
93.25 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The commissioner 
93.26 	of health shall establish a Newborn Hearing Screening Advisory Committee to advise and 
93.27 	assist the Department of Health; Department of Children, Youth, and Families; and the 
93.28 	Department of Education in:
93.29 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
93.30 	audiological assessment and early medical, audiological, and educational intervention 
93.31 	services for children who are deaf or hard-of-hearing;
94.1 	(2) designing protocols for tracking children from birth through age three that may have 
94.2 	passed newborn screening but are at risk for delayed or late onset of permanent hearing 
94.3 	loss;
94.4 	(3) designing a technical assistance program to support facilities implementing the 
94.5 	screening program and facilities conducting rescreening and diagnostic audiological 
94.6 	assessment;
94.7 	(4) designing implementation and evaluation of a system of follow-up and tracking; and
94.8 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
94.9 	culturally appropriate services for children with a confirmed hearing loss and their families.
94.10 	(b) The commissioner of health shall appoint at least one member from each of the 
94.11 	following groups with no less than two of the members being deaf or hard-of-hearing:
94.12 	(1) a representative from a consumer organization representing culturally deaf persons;
94.13 	(2) a parent with a child with hearing loss representing a parent organization;
94.14 	(3) a consumer from an organization representing oral communication options;
94.15 	(4) a consumer from an organization representing cued speech communication options;
94.16 	(5) an audiologist who has experience in evaluation and intervention of infants and 
94.17 	young children;
94.18 	(6) a speech-language pathologist who has experience in evaluation and intervention of 
94.19 	infants and young children;
94.20 	(7) two primary care providers who have experience in the care of infants and young 
94.21 	children, one of which shall be a pediatrician;
94.22 	(8) a representative from the early hearing detection intervention teams;
94.23 	(9) a representative from the Department of Education resource center for the deaf and 
94.24 	hard-of-hearing or the representative's designee;
94.25 	(10) a representative of the Commission of the Deaf, DeafBlind and Hard of Hearing;
94.26 	(11) a representative from the Department of Human Services Deaf and Hard-of-Hearing 
94.27 	Services Division;
94.28 	(12) one or more of the Part C coordinators from the Department of Education; the 
94.29 	Department of Health; the Department of Children, Youth, and Families; or the Department 
94.30 	of Human Services or the department's designees;
95.1 	(13) the Department of Health early hearing detection and intervention coordinators;
95.2 	(14) two birth hospital representatives from one rural and one urban hospital;
95.3 	(15) a pediatric geneticist;
95.4 	(16) an otolaryngologist;
95.5 	(17) a representative from the Newborn Screening Advisory Committee under this 
95.6 	subdivision;
95.7 	(18) a representative of the Department of Education regional low-incidence facilitators;
95.8 	(19) a representative from the deaf mentor program; and
95.9 	(20) a representative of the Minnesota State Academy for the Deaf from the Minnesota 
95.10 	State Academies staff.
95.11 	The commissioner must complete the initial appointments required under this subdivision 
95.12 	by September 1, 2007, and the initial appointments under clauses (19) and (20) by September 
95.13 	1, 2019.
95.14 	(c) The Department of Health member shall chair the first meeting of the committee. At 
95.15 	the first meeting, the committee shall elect a chair from its membership. The committee 
95.16 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
95.17 	written bylaws to govern its activities. The Department of Health shall provide technical 
95.18 	and administrative support services as required by the committee. These services shall 
95.19 	include technical support from individuals qualified to administer infant hearing screening, 
95.20 	rescreening, and diagnostic audiological assessments.
95.21 	Members of the committee shall receive no compensation for their service, but shall be 
95.22 	reimbursed as provided in section 15.059 for expenses incurred as a result of their duties 
95.23 	as members of the committee.
95.24 	(d) By February 15, 2015, and by February 15 of the odd-numbered years after that date, 
95.25 	the commissioner shall report to the chairs and ranking minority members of the legislative 
95.26 	committees with jurisdiction over health and data privacy on the activities of the committee 
95.27 	that have occurred during the past two years.
95.28 	(e) This subdivision expires June 30, 2025.

95.29 	EFFECTIVE DATE. This section is effective the day following final enactment or 
95.30 	June 30, 2025, whichever is earlier.

96.1 	Sec. 34. Minnesota Statutes 2024, section 144E.123, subdivision 3, is amended to read:
96.2 		Subd. 3.Review. Prehospital care data may be reviewed by the director or its designees. 
96.3 	The data shall be classified as private data on individuals under chapter 13, the Minnesota 
96.4 	Government Data Practices Act. The director may share with the Washington/Baltimore 
96.5 	High Intensity Drug Trafficking Area's Overdose Detection Mapping Application Program 
96.6 	(ODMAP) data that identifies where and when an overdose incident happens, fatality status, 
96.7 	suspected drug type, naloxone administration, and first responder type. ODMAP may:
96.8 	(1) allow secure access to the system by authorized users to report information about an 
96.9 	overdose incident;
96.10 	(2) allow secure access to the system by authorized users to view, in near real time, 
96.11 	information about overdose incidents reported;
96.12 	(3) produce a map in near real time of the approximate locations of confirmed or 
96.13 	suspected overdose incidents reported; and
96.14 	(4) enable access to overdose incident information that assists in state and local decisions 
96.15 	regarding the allocation of public health, public safety, and educational resources for the 
96.16 	purposes of monitoring and reporting data related to suspected overdoses.

96.17 	Sec. 35. [145.076] INFORMED CONSENT REQUIRED FOR SENSITIVE 
96.18 	EXAMINATIONS.
96.19 		Subdivision 1.Definition. For purposes of this section, "sensitive examination" means 
96.20 	a pelvic, breast, urogenital, or rectal examination.
96.21 		Subd. 2.Informed consent required; exceptions. A health professional, or a student 
96.22 	or resident participating in a course of instruction, clinical training, or a residency program 
96.23 	for a health profession, shall not perform a sensitive examination on an anesthetized or 
96.24 	unconscious patient unless:
96.25 	(1) the patient or the patient's legally authorized representative provided prior, written, 
96.26 	informed consent to the sensitive examination and the sensitive examination is necessary 
96.27 	for preventive, diagnostic, or treatment purposes;
96.28 	(2) the patient or the patient's legally authorized representative provided prior, written, 
96.29 	informed consent to a surgical procedure or diagnostic examination and the sensitive 
96.30 	examination is within the scope of care ordered for that surgical procedure or diagnostic 
96.31 	examination;
97.1 	(3) the patient is unconscious and incapable of providing informed consent and the 
97.2 	sensitive examination is necessary for diagnostic or treatment purposes; or
97.3 	(4) a court ordered a sensitive examination to be performed for purposes of collection 
97.4 	of evidence.
97.5 		Subd. 3.Penalty; ground for disciplinary action. A person who violates this section 
97.6 	is subject to disciplinary action by the health-related licensing board regulating the person.

97.7 	Sec. 36. Minnesota Statutes 2024, section 145.8811, is amended to read:
97.8 	145.8811 MATERNAL AND CHILD HEALTH ADVISORY TASK FORCE
97.9 	COMMITTEE.
97.10 		Subdivision 1.Composition of task force committee. The commissioner shall establish 
97.11 	and appoint a Maternal and Child Health Advisory Task Force Committee consisting of 15 
97.12 	members who will provide equal representation from:
97.13 	(1) professionals with expertise in maternal and child health services;
97.14 	(2) representatives of community health boards as defined in section 145A.02, subdivision 
97.15 	5; and
97.16 	(3) consumer representatives interested in the health of mothers and children.
97.17 	No members shall be employees of the Minnesota Department of Health. Section 15.059
97.18 	governs the Maternal and Child Health Advisory Task Force Committee. Notwithstanding 
97.19 	section 15.059, the Maternal and Child Health Advisory Task Force Committee does not 
97.20 	expire.
97.21 		Subd. 2.Duties. The advisory task force committee shall meet on a regular basis to 
97.22 	perform the following duties:
97.23 	(1) review and report on the health care needs of mothers and children throughout the 
97.24 	state of Minnesota;
97.25 	(2) review and report on the type, frequency, and impact of maternal and child health 
97.26 	care services provided to mothers and children under existing maternal and child health 
97.27 	care programs, including programs administered by the commissioner of health;
97.28 	(3) establish, review, and report to the commissioner a list of program guidelines and 
97.29 	criteria which the advisory task force committee considers essential to providing an effective 
97.30 	maternal and child health care program to low-income populations and high-risk persons 
97.31 	and fulfilling the purposes defined in section 145.88;
98.1 	(4) make recommendations to the commissioner for the use of other federal and state 
98.2 	funds available to meet maternal and child health needs;
98.3 	(5) make recommendations to the commissioner of health on priorities for funding the 
98.4 	following maternal and child health services:
98.5 	(i) prenatal, delivery, and postpartum care;
98.6 	(ii) comprehensive health care for children, especially from birth through five years of 
98.7 	age;
98.8 	(iii) adolescent health services;
98.9 	(iv) family planning services;
98.10 	(v) preventive dental care;
98.11 	(vi) special services for chronically ill and disabled children; and
98.12 	(vii) any other services that promote the health of mothers and children; and
98.13 	(6) establish in consultation with the commissioner statewide outcomes that will improve 
98.14 	the health status of mothers and children.

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

98.16 	Sec. 37. Minnesota Statutes 2024, section 145.901, subdivision 1, is amended to read:
98.17 		Subdivision 1.Purpose. Within the limits of available funding, the commissioner of 
98.18 	health may must conduct maternal death studies to assist the planning, implementation, and 
98.19 	evaluation of medical, health, and welfare service systems and to reduce the numbers of 
98.20 	preventable maternal deaths in Minnesota.

98.21 	Sec. 38. Minnesota Statutes 2024, section 145.987, subdivision 1, is amended to read:
98.22 		Subdivision 1.Establishment; composition of advisory council. The health equity 
98.23 	advisory and leadership (HEAL) council consists of 18 members appointed by the 
98.24 	commissioner of health, including but not limited to members who will provide representation 
98.25 	from the following groups:
98.26 	(1) African American and African heritage communities;
98.27 	(2) Asian American and Pacific Islander communities;
98.28 	(3) Latina/o/x communities;
98.29 	(4) American Indian communities and Tribal governments and nations;
99.1 	(5) disability communities;
99.2 	(6) lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities; and
99.3 	(7) representatives who reside outside the seven-county metropolitan area.

99.4 	Sec. 39. Minnesota Statutes 2024, section 145.987, subdivision 2, is amended to read:
99.5 		Subd. 2.Organization and meetings. (a) Terms, compensation, and removal of members 
99.6 	of the advisory council shall be as provided in section 15.059, subdivisions 2 to 4, except 
99.7 	that terms for advisory council members shall be for two years. Members may be reappointed 
99.8 	to serve up to two additional terms. Notwithstanding section 15.059, subdivision 6, the 
99.9 	advisory council shall not expire. The commissioner shall recommend appointments to 
99.10 	replace members vacating their positions in a timely manner, no more than three months 
99.11 	after the advisory council reviews panel recommendations.
99.12 	(b) The commissioner must convene meetings at least quarterly and must provide meeting 
99.13 	space and administrative support to the advisory council. Subcommittees may be convened 
99.14 	as necessary. Advisory council meetings are subject to the Open Meeting Law under chapter 
99.15 	13D.

99.16 	Sec. 40. [148.781] CENTRAL SERVICE TECHNICIAN.
99.17 		Subdivision 1.Application. This section applies to persons who perform the functions 
99.18 	of a central service technician in a health care facility.
99.19 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
99.20 	given:
99.21 	(1) "central service technician" means a person who decontaminates, inspects, assembles, 
99.22 	packages, and sterilizes reusable medical instruments or devices used by a health care 
99.23 	facility;
99.24 	(2) "health care facility" means a hospital or ambulatory surgical center; and
99.25 	(3) "health care practitioner" means an individual regulated by a health-related licensing 
99.26 	board as defined in section 214.01, subdivision 2, or by the commissioner of health under 
99.27 	sections 148.511 to 148.5198, to the extent the individual provides services in a health care 
99.28 	facility and the tasks of a central service technician are within the individual's scope of 
99.29 	practice. Health care practitioner includes an intern, resident, or fellow who performs or 
99.30 	assists with surgery.
100.1 		Subd. 3.Requirements for central service technician. (a) A health care facility shall 
100.2 	employ or otherwise retain the services of a central service technician only if the central 
100.3 	service technician:
100.4 	(1) has successfully passed a nationally accredited examination for central service 
100.5 	technicians and holds and maintains one of the following credentials administered by a 
100.6 	nationally accredited central service technician credentialing organization: a certified 
100.7 	registered central service technician credential, a certified endoscope reprocessor credential, 
100.8 	a certified sterile processing and distribution technician credential, or a certified flexible 
100.9 	endoscope reprocessor credential; or
100.10 	(2) provides evidence that the person was employed by or was retained as a central 
100.11 	service technician by a health care facility on or before December 31, 2027.
100.12 	(b) A central service technician who does not meet the requirements of paragraph (a), 
100.13 	clause (1), shall have 24 months from the date of hire to obtain a certified registered central 
100.14 	service technician credential, a certified endoscope reprocessor credential, a certified sterile 
100.15 	processing and distribution technician credential, or a certified flexible endoscope reprocessor 
100.16 	credential.
100.17 	(c) A person who qualifies to operate as a central service technician in a health care 
100.18 	facility under paragraph (a) must annually complete ten hours of continuing education 
100.19 	credits to remain qualified to operate as a central service technician. The continuing education 
100.20 	required under this paragraph must be related to the functions of a central service technician.
100.21 	(d) Nothing in this subdivision shall prohibit the following persons from performing the 
100.22 	tasks or functions of a central service technician:
100.23 	(1) a health care practitioner;
100.24 	(2) a person who holds or maintains a registration, certification, or license by a nationally 
100.25 	accredited credentialing organization to perform health care services; or
100.26 	(3) a student or intern performing the functions of a central service technician under the 
100.27 	direct supervision of a health care practitioner as part of the student's or intern's training or 
100.28 	internship.
100.29 	(e) A health care facility shall, upon the written request of a central service technician, 
100.30 	verify in writing the central service technician's dates of employment or the contract period 
100.31 	during which the central service technician provided services to the health care facility.

100.32 	EFFECTIVE DATE. This section is effective 180 days after final enactment.

101.1 	Sec. 41. TRANSFER OF PROGRAM.
 101.2 	The healthy eating, here at home program is transferred from the Minnesota Humanities 
101.3 	Center to the Department of Health on July 1, 2025. The provisions of Minnesota Statutes, 
101.4 	section 15.039, apply to this transfer.

101.5 	Sec. 42. REVISOR INSTRUCTION.
 101.6 	The revisor of statutes shall renumber Minnesota Statutes, section 138.912, as section 
101.7 	144.0554. The revisor shall make any cross-reference changes necessary resulting from the 
101.8 	renumbering of the healthy eating, here at home program.

101.9 	Sec. 43. REPEALER.
 101.10 	Minnesota Statutes 2024, sections 62K.10, subdivision 3; and 138.912, subdivision 7,
101.11 	are repealed.

101.12 	ARTICLE 3
101.13 	HEALTH LICENSING BOARDS

101.14 	Section 1. Minnesota Statutes 2024, section 144.99, subdivision 1, is amended to read:
101.15 		Subdivision 1.Remedies available. The provisions of chapters 103I and 157 and sections 
101.16 	115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14), 
101.17 	and (15); 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385; 
101.18 	144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98; 
101.19 	144.992;147.037, subdivision 1b, paragraph (d); 326.70 to 326.785; 327.10 to 327.131; 
101.20 	and 327.14 to 327.28 and all rules, orders, stipulation agreements, settlements, compliance 
101.21 	agreements, licenses, registrations, certificates, and permits adopted or issued by the 
101.22 	department or under any other law now in force or later enacted for the preservation of 
101.23 	public health may, in addition to provisions in other statutes, be enforced under this section.

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

101.25 	Sec. 2. Minnesota Statutes 2024, section 144A.43, subdivision 15, is amended to read:
101.26 		Subd. 15.Occupational therapist. "Occupational therapist" means a person who is 
101.27 	licensed under sections 148.6401 to 148.6449 has the meaning given in section 148.6402, 
101.28 	subdivision 14.

102.1 	Sec. 3. Minnesota Statutes 2024, section 144G.08, subdivision 45, is amended to read:
102.2 		Subd. 45.Occupational therapist. "Occupational therapist" means a person who is 
102.3 	licensed under sections 148.6401 to 148.6449 has the meaning given in section 148.6402, 
102.4 	subdivision 14.

102.5 	Sec. 4. Minnesota Statutes 2024, section 147.01, subdivision 7, is amended to read:
102.6 		Subd. 7.Physician application and license fees. (a) The board may charge the following 
102.7 	nonrefundable application and license fees processed pursuant to sections 147.02, 147.03, 
102.8 	147.037, 147.0375, and 147.38:
102.9 	(1) physician application fee, $200;
102.10 	(2) physician annual registration renewal fee, $192;
102.11 	(3) physician endorsement to other states, $40;
102.12 	(4) physician emeritus license, $50;
102.13 	(5) physician late fee, $60;
102.14 	(6) nonrenewable 24-month limited license, $392;
102.15 	(7) initial physician license for limited license holder, $192;
102.16 	(6) (8) duplicate license fee, $20;
102.17 	(7) (9) certification letter fee, $25;
102.18 	(8) (10) education or training program approval fee, $100;
102.19 	(9) (11) report creation and generation fee, $60 per hour;
102.20 	(10) (12) examination administration fee (half day), $50;
102.21 	(11) (13) examination administration fee (full day), $80;
102.22 	(12) (14) fees developed by the Interstate Commission for determining physician 
102.23 	qualification to register and participate in the interstate medical licensure compact, as 
102.24 	established in rules authorized in and pursuant to section 147.38, not to exceed $1,000; and
102.25 	(13) (15) verification fee, $25.
102.26 	(b) The board may prorate the initial annual license fee. All licensees are required to 
102.27 	pay the full fee upon license renewal. The revenue generated from the fee must be deposited 
102.28 	in an account in the state government special revenue fund.

103.1 	Sec. 5. Minnesota Statutes 2024, section 147.037, is amended by adding a subdivision to 
103.2 	read:
103.3 		Subd. 1b.Limited license. (a) A limited license under this section is valid for one 
103.4 	24-month period and is not renewable or eligible for reapplication. The board may issue a 
103.5 	limited license, valid for 24 months, to any person who satisfies the requirements of 
103.6 	subdivision 1, paragraphs (a) to (c) and (e) to (g), and who:
103.7 	(1) pursuant to a license or other authorization to practice, has practiced medicine, as 
103.8 	defined in section 147.081, subdivision 3, clauses (2) to (4), for at least 60 months in the 
103.9 	previous 12 years outside of the United States;
103.10 	(2) submits sufficient evidence of an offer to practice within the context of a collaborative 
103.11 	agreement within a hospital or clinical setting where the limited license holder and physicians 
103.12 	work together to provide patient care;
103.13 	(3) provides services in a designated rural area or underserved urban community as 
103.14 	defined in section 144.1501; and
103.15 	(4) submits two letters of recommendation in support of a limited license, which must 
103.16 	include one letter from a physician with whom the applicant previously worked and one 
103.17 	letter from an administrator of the hospital or clinical setting in which the applicant previously 
103.18 	worked. The letters of recommendation must attest to the applicant's good medical standing. 
103.19 	The board may accept alternative forms of proof that demonstrate good medical standing 
103.20 	where there are extenuating circumstances that prevent an applicant from providing letters.
103.21 	(b) For purposes of this subdivision, a person has satisfied the requirements of subdivision 
103.22 	1, paragraph (e), if the person has passed steps or levels one and two of the USMLE or the 
103.23 	COMLEX-USA with passing scores as recommended by the USMLE program or National 
103.24 	Board of Osteopathic Medical Examiners within three attempts.
103.25 	(c) A person issued a limited license under this subdivision must not be required to 
103.26 	present evidence satisfactory to the board of the completion of one year of graduate clinical 
103.27 	medical training in a program accredited by a national accrediting organization approved 
103.28 	by the board.
103.29 	(d) An employer of a limited license holder must pay the limited license holder at least 
103.30 	an amount equivalent to a medical resident in a comparable field. The employer must carry 
103.31 	medical malpractice insurance covering a limited license holder for the duration of the 
103.32 	employment. The commissioner of health may issue a correction order under section 144.99, 
103.33 	subdivision 3, requiring an employer to comply with this paragraph. An employer must not 
104.1 	retaliate against or discipline an employee for raising a complaint or pursuing enforcement 
104.2 	relating to this paragraph.
104.3 	(e) The board may issue a full and unrestricted license to practice medicine to a person 
104.4 	who holds a limited license issued pursuant to paragraph (a) and who has:
104.5 	(1) held the limited license for two years and is in good standing to practice medicine 
104.6 	in Minnesota;
104.7 	(2) practiced for a minimum of 1,692 hours per year for each of the previous two years;
104.8 	(3) submitted a letter of recommendation in support of a full and unrestricted license 
104.9 	containing all attestations required under paragraph (i) from any physician who participated 
104.10 	in the collaborative agreement;
104.11 	(4) passed steps or levels one, two, and three of the USMLE or COMLEX-USA with 
104.12 	passing scores as recommended by the USMLE program or National Board of Osteopathic 
104.13 	Medical Examiners within three attempts; and
104.14 	(5) completed 20 hours of continuing medical education.
104.15 	(f) A limited license holder must submit to the board, every six months or upon request, 
104.16 	a statement certifying whether the person is still employed as a physician in Minnesota and 
104.17 	whether the person has been subjected to professional discipline as a result of the person's 
104.18 	practice. The board may suspend or revoke a limited license if a majority of the board 
104.19 	determines that the licensee is no longer employed as a physician in Minnesota by an 
104.20 	employer. The licensee must be granted an opportunity to be heard prior to the board's 
104.21 	determination. Upon request by the limited license holder, the limited license holder may 
104.22 	have 90 days to regain employment. A licensee may change employers during the duration 
104.23 	of the limited license if the licensee has another offer of employment. In the event that a 
104.24 	change of employment occurs, the licensee must still work the number of hours required 
104.25 	under paragraph (e), clause (2), to be eligible for a full and unrestricted license to practice 
104.26 	medicine.
104.27 	(g) In addition to any other remedy provided by law, the board may, without a hearing, 
104.28 	temporarily suspend the license of a limited license holder if the board finds that the limited 
104.29 	license holder has violated a statute or rule that the board is empowered to enforce and 
104.30 	continued practice by the limited license holder would create a serious risk of harm to the 
104.31 	public. The suspension shall take effect upon written notice to the limited license holder 
104.32 	specifying the statute or rule violated. The suspension shall remain in effect until the board 
104.33 	issues a final order in the matter after a hearing. At the time it issues the suspension notice, 
105.1 	the board shall schedule a disciplinary hearing to be held pursuant to the Administrative 
105.2 	Procedure Act. The limited license holder shall be provided with at least 20 days' notice of 
105.3 	any hearing held pursuant to this subdivision. The hearing shall be scheduled to begin no 
105.4 	later than 30 days after the issuance of the suspension order.
105.5 	(h) For purposes of this subdivision, "collaborative agreement" means a mutually agreed 
105.6 	upon plan for the overall working relationship and collaborative arrangement between a 
105.7 	holder of a limited license and one or more physicians licensed under this chapter that 
105.8 	designates the scope of services that can be provided to manage the care of patients. The 
105.9 	limited license holder and one of the collaborating physicians must have experience in 
105.10 	providing care to patients with the same or similar medical conditions. Under the 
105.11 	collaborative agreement, the limited license holder must shadow the collaborating physician 
105.12 	for four weeks, after which time the limited license holder must staff all patient encounters 
105.13 	with the collaborating physician for an additional four weeks. After that time, the 
105.14 	collaborating physician has discretion to allow the limited license holder to see patients 
105.15 	independently and will require the limited license holder to present patients at their discretion. 
105.16 	However, the limited license holder must be supervised by the collaborating physician for 
105.17 	a minimum of two hours per week. A limited license holder may practice medicine without 
105.18 	a collaborating physician physically present, but the limited license holder and collaborating 
105.19 	physicians must be able to easily contact each other by radio, telephone, or other 
105.20 	telecommunication device while the limited license holder practices medicine. The limited 
105.21 	license holder must have one-on-one practice reviews with each collaborating physician, 
105.22 	provided in person or through eye-to-eye electronic media while maintaining visual contact, 
105.23 	for at least two hours per week.
105.24 	(i) At least one collaborating physician must submit a letter to the board, after the limited 
105.25 	license holder has practiced under the license for 12 months, attesting that:
105.26 	(1) the limited license holder has a basic understanding of federal and state laws regarding 
105.27 	the provision of health care, including but not limited to:
105.28 	(i) medical licensing obligations and standards; and
105.29 	(ii) the Health Insurance Portability and Accountability Act, Public Law 104-191;
105.30 	(2) the limited license holder has a basic understanding of documentation standards;
105.31 	(3) the limited license holder has a thorough understanding of which medications are 
105.32 	available and unavailable in the United States;
106.1 	(4) the limited license holder has a thorough understanding of American medical standards 
106.2 	of care;
106.3 	(5) the limited license holder has demonstrated mastery of each of the following:
106.4 	(i) gathering a history and performing a physical exam;
106.5 	(ii) developing and prioritizing a differential diagnosis following a clinical encounter 
106.6 	and selecting a working diagnosis;
106.7 	(iii) recommending and interpreting common diagnostic and screening tests;
106.8 	(iv) entering and discussing orders and prescriptions;
106.9 	(v) providing an oral presentation of a clinical encounter;
106.10 	(vi) giving a patient handover to transition care responsibly;
106.11 	(vii) recognizing a patient requiring urgent care and initiating an evaluation; and
106.12 	(viii) obtaining informed consent for tests, procedures, and treatments; and
106.13 	(6) the limited license holder is providing appropriate medical care.
106.14 	(j) The board must not grant a license under this section unless the applicant possesses 
106.15 	federal immigration status that allows the applicant to practice as a physician in the United 
106.16 	States.

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

106.18 	Sec. 6. Minnesota Statutes 2024, section 147A.02, is amended to read:
106.19 	147A.02 QUALIFICATIONS FOR LICENSURE.
106.20 	(a) The board may grant a license as a physician assistant to an applicant who:
106.21 	(1) submits an application on forms approved by the board;
106.22 	(2) pays the appropriate fee as determined by the board;
106.23 	(3) has current certification from the National Commission on Certification of Physician 
106.24 	Assistants, or its successor agency as approved by the board;
106.25 	(4) certifies that the applicant is mentally and physically able to engage safely in practice 
106.26 	as a physician assistant;
106.27 	(5) has no licensure, certification, or registration as a physician assistant under current 
106.28 	discipline, revocation, suspension, or probation for cause resulting from the applicant's 
107.1 	practice as a physician assistant, unless the board considers the condition and agrees to 
107.2 	licensure;
107.3 	(6) submits any other information the board deems necessary to evaluate the applicant's 
107.4 	qualifications; and
107.5 	(7) has been approved by the board.
107.6 	(b) All persons registered as physician assistants as of June 30, 1995, are eligible for 
107.7 	continuing license renewal. All persons applying for licensure after that date shall be licensed 
107.8 	according to this chapter.
107.9 	(c) A physician assistant who qualifies for licensure must practice for at least 2,080 
107.10 	hours, within the context of a collaborative agreement, within a hospital or integrated clinical 
107.11 	setting where physician assistants and physicians work together to provide patient care. The 
107.12 	physician assistant shall submit written evidence to the board with the application, or upon 
107.13 	completion of the required collaborative practice experience. For purposes of this paragraph, 
107.14 	a collaborative agreement is a mutually agreed upon plan for the overall working relationship 
107.15 	and collaborative arrangement between a physician assistant, and one or more physicians 
107.16 	licensed under chapter 147 or licensed in another state or United States territory, that 
107.17 	designates the scope of services that can be provided collaboration necessary to manage the 
107.18 	care of patients. The physician assistant and one of the collaborative physicians must have 
107.19 	experience in providing care to patients with the same or similar medical conditions. The 
107.20 	collaborating physician is not required to be physically present so long as the collaborating 
107.21 	physician and physician assistant are or can be easily in contact with each other by radio, 
107.22 	telephone, or other telecommunication device.

107.23 	Sec. 7. Minnesota Statutes 2024, section 147D.03, subdivision 1, is amended to read:
107.24 		Subdivision 1.General. Within the meaning of sections 147D.01 to 147D.27, a person 
107.25 	who shall publicly profess to be a traditional midwife and who, for a fee, shall assist or 
107.26 	attend to a woman in pregnancy, childbirth outside a hospital, and postpartum, shall be 
107.27 	regarded as practicing traditional midwifery. A certified midwife licensed by the Board of 
107.28 	Nursing under chapter 148G is not subject to the provisions of this chapter.

107.29 	Sec. 8. Minnesota Statutes 2024, section 148.108, subdivision 1, is amended to read:
107.30 		Subdivision 1.Fees. In addition to the fees established in Minnesota Rules, chapter 
107.31 	2500, The board is authorized to charge the fees in this section.

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

108.1 	Sec. 9. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision to 
108.2 	read:
108.3 		Subd. 5.Chiropractic license fees. Fees for chiropractic licensure are the following 
108.4 	amounts but may be adjusted lower by board action:
108.5 	(1) initial application for licensure fee, $600;
108.6 	(2) annual renewal of an active license fee, $250;
108.7 	(3) annual renewal of an inactive license fee, 75 percent of the current active license 
108.8 	renewal fee under clause (2);
108.9 	(4) late renewal penalty fee, $150 per month late; and
108.10 	(5) application for reinstatement of a voluntarily retired or inactive license fee, $100.

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

108.12 	Sec. 10. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
108.13 	to read:
108.14 		Subd. 6.Acupuncture registration fees. Fees for acupuncture registration are the 
108.15 	following amounts but may be adjusted lower by board action:
108.16 	(1) initial application acupuncture registration fee, $400;
108.17 	(2) annual renewal of active acupuncture registration fee, $200;
108.18 	(3) annual renewal of inactive acupuncture registration fee, 75 percent of the current 
108.19 	active acupuncture registration renewal fee under clause (2); and
108.20 	(4) reinstatement of nonrenewed acupuncture registration fee, $400.

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

108.22 	Sec. 11. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
108.23 	to read:
108.24 		Subd. 7.Independent examiner registration fees. Fees for independent examiner 
108.25 	registration are the following amounts but may be adjusted lower by board action:
108.26 	(1) initial application independent examiner registration fee, $400;
108.27 	(2) annual renewal of independent examiner registration fee, $200; and
108.28 	(3) reinstatement of nonrenewed independent examiner registration fee, $400.

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

109.2 	Sec. 12. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
109.3 	to read:
109.4 		Subd. 8.Animal chiropractic registration fees. Fees for animal chiropractic registration 
109.5 	are the following amounts but may be adjusted lower by board action:
109.6 	(1) initial application animal chiropractic registration fee, $400;
109.7 	(2) annual renewal of active animal chiropractic registration fee, $200;
109.8 	(3) annual renewal of inactive animal chiropractic registration fee, 75 percent of the 
109.9 	current active animal chiropractic renewal fee under clause (2); and
109.10 	(4) reinstatement of nonrenewed animal chiropractic registration fee, $400.

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

109.12 	Sec. 13. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
109.13 	to read:
109.14 		Subd. 9.Graduate preceptorship registration fee. The application fee for graduate 
109.15 	preceptorship registration is $500, but may be adjusted lower by board action.

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

109.17 	Sec. 14. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
109.18 	to read:
109.19 		Subd. 10.Professional firm registration fees. In addition to fees authorized under 
109.20 	chapter 319B, the late renewal penalty fee for professional firm registration is $5 per month 
109.21 	late.

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

109.23 	Sec. 15. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
109.24 	to read:
109.25 		Subd. 11.Miscellaneous fees. Fees under this subdivision are the following amounts 
109.26 	but may be adjusted lower by board action:
109.27 	(1) annual continuing education sponsorship fee, $1,000;
109.28 	(2) individual continuing education seminar sponsorship fee, $400;
110.1 	(3) mailing list request fee, $500;
110.2 	(4) license verification fee, $50;
110.3 	(5) duplicate certificate fee, $50; and
110.4 	(6) document copies fee, $0.25 per side of document page.

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

110.6 	Sec. 16. Minnesota Statutes 2024, section 148.191, subdivision 2, is amended to read:
110.7 		Subd. 2.Powers. (a) The board is authorized to adopt and, from time to time, revise 
110.8 	rules not inconsistent with the law, as may be necessary to enable it to carry into effect the 
110.9 	provisions of sections 148.171 to 148.285 and chapter 148G. The board shall prescribe by 
110.10 	rule curricula and standards for schools and courses preparing persons for licensure under 
110.11 	sections 148.171 to 148.285 and 148G.12. It shall conduct or provide for surveys of such 
110.12 	schools and courses at such times as it may deem necessary. It shall approve such schools 
110.13 	and courses as meet the requirements of sections 148.171 to 148.285 or section 148G.12,
110.14 	and board rules. It shall examine, license, and renew the license of duly qualified applicants. 
110.15 	It shall hold examinations at least once in each year at such time and place as it may 
110.16 	determine. It shall by rule adopt, evaluate, and periodically revise, as necessary, requirements 
110.17 	for licensure and for registration and renewal of registration as defined in section 148.231
110.18 	and chapter 148G. It shall maintain a record of all persons licensed by the board to practice 
110.19 	advanced practice, professional, or practical nursing, or certified as a midwife. It shall cause 
110.20 	the prosecution of all persons violating sections 148.171 to 148.285 or chapter 148G, and 
110.21 	have power to incur such necessary expense therefor. It shall register public health nurses 
110.22 	who meet educational and other requirements established by the board by rule, including 
110.23 	payment of a fee. It shall have power to issue subpoenas, and to compel the attendance of 
110.24 	witnesses and the production of all necessary documents and other evidentiary material. 
110.25 	Any board member may administer oaths to witnesses, or take their affirmation. It shall 
110.26 	keep a record of all its proceedings.
110.27 	(b) The board shall have access to hospital, nursing home, and other medical records of 
110.28 	a patient cared for by a nurse or certified midwife under review. If the board does not have 
110.29 	a written consent from a patient permitting access to the patient's records, the nurse, certified 
110.30 	midwife, or facility shall delete any data in the record that identifies the patient before 
110.31 	providing it to the board. The board shall have access to such other records as reasonably 
110.32 	requested by the board to assist the board in its investigation. Nothing herein may be 
110.33 	construed to allow access to any records protected by section 145.64. The board shall 
111.1 	maintain any records obtained pursuant to this paragraph as investigative data under chapter 
111.2 	13.
111.3 	(c) The board may accept and expend grants or gifts of money or in-kind services from 
111.4 	a person, a public or private entity, or any other source for purposes consistent with the 
111.5 	board's role and within the scope of its statutory authority.
111.6 	(d) The board may accept registration fees for meetings and conferences conducted for 
111.7 	the purposes of board activities that are within the scope of its authority.

111.8 	Sec. 17. Minnesota Statutes 2024, section 148.241, is amended to read:
111.9 	148.241 EXPENSES.
111.10 		Subdivision 1.Appropriation. The expenses of administering sections 148.171 to 
111.11 	148.285and chapter 148G shall be paid from the appropriation made to the Minnesota 
111.12 	Board of Nursing.
111.13 		Subd. 2.Expenditure. All amounts appropriated to the board shall be held subject to 
111.14 	the order of the board to be used only for the purpose of meeting necessary expenses incurred 
111.15 	in the performance of the purposes of sections 148.171 to 148.285 and chapter 148G, and 
111.16 	the duties imposed thereby as well as the promotion of nursing or certified midwifery 
111.17 	education and standards of nursing or certified midwifery care in this state.

111.18 	Sec. 18. Minnesota Statutes 2024, section 148.512, subdivision 17a, is amended to read:
111.19 		Subd. 17a.Speech-language pathology assistant. "Speech-language pathology assistant" 
111.20 	means a person who meets the qualifications under section 148.5181 and provides 
111.21 	speech-language pathology services under the supervision of a licensed speech-language 
111.22 	pathologist under sections 122A.183 and 122A.184 or in accordance with section 148.5192.

111.23 	Sec. 19. Minnesota Statutes 2024, section 148.5192, subdivision 3, is amended to read:
111.24 		Subd. 3.Supervision requirements. (a) A supervising speech-language pathologist 
111.25 	shall authorize and accept full responsibility for the performance, practice, and activity of 
111.26 	a speech-language pathology assistant. The amount and type of supervision required must 
111.27 	be based on the skills and experience of the speech-language pathology assistant. A minimum 
111.28 	of one hour every 30 days of consultative supervision time must be documented for each 
111.29 	speech-language pathology assistant.
111.30 	(b) A supervising speech-language pathologist must:
111.31 	(1) be licensed under sections 122A.183, 122A.184, or 148.511 to 148.5198;
112.1 	(2) hold a certificate of clinical competence from the American Speech-Language-Hearing 
112.2 	Association or its equivalent as approved by the commissioner; and
112.3 	(3) have completed at least ten hours of continuing education in supervision.
112.4 	(c) Once every 60 days, the supervising speech-language pathologist must treat or cotreat 
112.5 	with the speech-language pathology assistant each client on the speech-language pathology 
112.6 	assistant's caseload.
112.7 	(d) For purposes of this section, "direct supervision" means observation and guidance 
112.8 	by the supervising speech-language pathologist during the performance of a delegated duty 
112.9 	that occurs either on-site and in-view or through the use of real-time, two-way interactive 
112.10 	audio and visual communication. The supervision requirements described in this section 
112.11 	are minimum requirements. Additional supervision requirements may be imposed at the 
112.12 	discretion of the supervising speech-language pathologist.
112.13 	(e) A supervising speech-language pathologist must be available to communicate with 
112.14 	a speech-language pathology assistant at any time the assistant is in direct contact with a 
112.15 	client.
112.16 	(f) A supervising speech-language pathologist must document activities performed by 
112.17 	the assistant that are directly supervised by the supervising speech-language pathologist. 
112.18 	At a minimum, the documentation must include:
112.19 	(1) information regarding the quality of the speech-language pathology assistant's 
112.20 	performance of the delegated duties; and
112.21 	(2) verification that any delegated clinical activity was limited to duties authorized to 
112.22 	be performed by the speech-language pathology assistant under this section.
112.23 	(g) A supervising speech-language pathologist must review and cosign all informal 
112.24 	treatment notes signed or initialed by the speech-language pathology assistant.
112.25 	(h) A full-time, speech-language pathologist may supervise no more than two full-time, 
112.26 	speech-language pathology assistants or the equivalent of two full-time assistants.

112.27 	Sec. 20. Minnesota Statutes 2024, section 148.5194, subdivision 3b, is amended to read:
112.28 		Subd. 3b.Speech-language pathology assistant licensure fees. The fee for initial 
112.29 	licensure as a speech-language pathology assistant is $493 must not exceed $220. The fee 
112.30 	for licensure renewal for a speech-language pathology assistant is $493 must not exceed 
112.31 	$220.

113.1 	Sec. 21. Minnesota Statutes 2024, section 148.56, subdivision 1, is amended to read:
113.2 		Subdivision 1.Optometry defined. (a) Any person shall be deemed to be practicing 
113.3 	optometry within the meaning of sections 148.52 to 148.62 who shall in any way:
113.4 	(1) advertise as an optometrist;
113.5 	(2) employ any means, including the use of autorefractors or other automated testing 
113.6 	devices, for the measurement of the powers of vision or the adaptation of lenses or prisms 
113.7 	for the aid thereof;
113.8 	(3) possess testing appliances for the purpose of the measurement of the powers of vision;
113.9 	(4) diagnose any disease, optical deficiency or deformity, or visual or muscular anomaly 
113.10 	of the visual system consisting of the human eye and its accessory or subordinate anatomical 
113.11 	parts;
113.12 	(5) prescribe lenses, including plano or cosmetic contact lenses, or prisms for the 
113.13 	correction or the relief of same;
113.14 	(6) employ or prescribe ocular exercises, orthoptics, or habilitative and rehabilitative 
113.15 	therapeutic vision care; or
113.16 	(7) prescribe or administer legend drugs to aid in the diagnosis, cure, mitigation, 
113.17 	prevention, treatment, or management of disease, deficiency, deformity, or abnormality of 
113.18 	the human eye and adnexa included in the curricula of accredited schools or colleges of 
113.19 	optometry, and as limited by Minnesota statute and adopted rules by the Board of Optometry, 
113.20 	or who holds oneself out as being able to do so.
113.21 	(b) In the course of treatment, nothing in this section shall allow:
113.22 	(1) legend drugs to be administered intravenously, intramuscularly, or by injection, 
113.23 	except for treatment of anaphylaxis or by sub-Tenon, retrobulbar, or intravitreal injection;
113.24 	(2) invasive surgery including, but not limited to, surgery using lasers;
113.25 	(3) Schedule II and III oral legend drugs and oral steroids to be administered or 
113.26 	prescribed; or
113.27 	(4) oral antivirals to be prescribed or administered for more than ten days; or steroids 
113.28 	to be administered or prescribed for more than 14 days without consultation with a physician.
113.29 	(5) oral carbonic anhydrase inhibitors to be prescribed or administered for more than 
113.30 	seven days.

114.1 	Sec. 22. Minnesota Statutes 2024, section 148.6401, is amended to read:
114.2 	148.6401 SCOPE.
114.3 	Sections 148.6401 to 148.6449 148.645 apply to persons who are applicants for licensure, 
114.4 	who are licensed, who use protected titles, or who represent that they are licensed as 
114.5 	occupational therapists or occupational therapy assistants practitioners.

114.6 	Sec. 23. Minnesota Statutes 2024, section 148.6402, subdivision 1, is amended to read:
114.7 		Subdivision 1.Scope. For the purpose of sections 148.6401 to 148.6449 148.645, the 
114.8 	following terms have the meanings given them.

114.9 	Sec. 24. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
114.10 	to read:
114.11 		Subd. 2a.Accreditation Council for Occupational Therapy Education or 
114.12 	ACOTE. "Accreditation Council for Occupational Therapy Education" or "ACOTE" means 
114.13 	the entity that accredits occupational therapy education programs in the United States and 
114.14 	its territories and establishes, approves, and administers educational standards ensuring 
114.15 	consistency across all occupational therapy education.

114.16 	Sec. 25. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
114.17 	to read:
114.18 		Subd. 5a.Continuing competence. "Continuing competence" means the process in 
114.19 	which an occupational therapy practitioner develops and maintains the knowledge, critical 
114.20 	reasoning, interpersonal skills, performance skills, and ethical practice necessary to perform 
114.21 	their occupational therapy responsibilities.

114.22 	Sec. 26. Minnesota Statutes 2024, section 148.6402, subdivision 7, is amended to read:
114.23 		Subd. 7.Credentialing Certification examination for occupational 
114.24 	therapist. "Credentialing Certification examination for occupational therapist" means the 
114.25 	examination sponsored by the National Board for Certification in Occupational Therapy 
114.26 	for credentialing certification as an a registered occupational therapist, registered.

114.27 	Sec. 27. Minnesota Statutes 2024, section 148.6402, subdivision 8, is amended to read:
114.28 		Subd. 8.CredentialingCertification examination for occupational therapy 
114.29 	assistant. "Credentialing Certification examination for occupational therapy assistant" 
115.1 	means the examination sponsored by the National Board for Certification in Occupational 
115.2 	Therapy for credentialing certification as a certified occupational therapy assistant.

115.3 	Sec. 28. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
115.4 	to read:
115.5 		Subd. 12a.Face-to-face supervision. "Face-to-face supervision" means supervision 
115.6 	occurring between a supervisor and a supervisee within each other's sight or presence. 
115.7 	Face-to-face supervision includes real-time audio and video communication where the 
115.8 	supervisor and supervisee can see each other and clearly visualize the services being provided.

115.9 	Sec. 29. Minnesota Statutes 2024, section 148.6402, subdivision 13, is amended to read:
115.10 		Subd. 13.Licensed health care professional. "Licensed health care professional" means 
115.11 	a person licensed in good standing in Minnesota to practice medicine, osteopathic medicine, 
115.12 	chiropractic, podiatry, advanced practice registered nursing, or dentistry, or is a person 
115.13 	registered as a licensed physician assistant in Minnesota.

115.14 	Sec. 30. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
115.15 	to read:
115.16 		Subd. 13a.National Board for Certification in Occupational Therapy or 
115.17 	NBCOT. "National Board for Certification in Occupational Therapy" or "NBCOT" means 
115.18 	the entity that administers the certification examination and provides initial and renewal 
115.19 	board certification for occupational therapy practitioners providing services in the United 
115.20 	States, or any successor entity performing the certification examination and initial and 
115.21 	renewal board certification.

115.22 	Sec. 31. Minnesota Statutes 2024, section 148.6402, subdivision 14, is amended to read:
115.23 		Subd. 14.Occupational therapist. "Occupational therapist" means an individual who 
115.24 	meets the qualifications in sections 148.6401 to 148.6449 and is licensed by the board
115.25 	licensed to practice occupational therapy under sections 148.6401 to 148.645 who is 
115.26 	responsible for and directs the evaluation process, discharge planning process, development 
115.27 	of intervention plans, and provision of occupational therapy services.

115.28 	Sec. 32. Minnesota Statutes 2024, section 148.6402, subdivision 16, is amended to read:
115.29 		Subd. 16.Occupational therapy assistant. "Occupational therapy assistant" means an 
115.30 	individual who meets the qualifications for an occupational therapy assistant in sections 
116.1 	148.6401 to 148.6449 and is licensed by the board licensed to assist in the practice of 
116.2 	occupational therapy under sections 148.6401 to 148.645 who works under the appropriate 
116.3 	supervision of and in partnership with an occupational therapist, unless exempted under 
116.4 	section 148.6432.

116.5 	Sec. 33. Minnesota Statutes 2024, section 148.6402, subdivision 16a, is amended to read:
116.6 		Subd. 16a.Occupational therapy practitioner. "Occupational therapy practitioner" 
116.7 	means any individual licensed as either an occupational therapist or occupational therapy 
116.8 	assistant under sections 148.6401 to 148.6449 148.645.

116.9 	Sec. 34. Minnesota Statutes 2024, section 148.6402, subdivision 19, is amended to read:
116.10 		Subd. 19.License or licensed. "License" or "licensed" means the act or status of a 
116.11 	natural person who meets the requirements of sections 148.6401 to 148.6449 148.645.

116.12 	Sec. 35. Minnesota Statutes 2024, section 148.6402, subdivision 20, is amended to read:
116.13 		Subd. 20.Licensee. "Licensee" means a person who meets the requirements of sections 
116.14 	148.6401 to 148.6449 148.645.

116.15 	Sec. 36. Minnesota Statutes 2024, section 148.6402, subdivision 23, is amended to read:
116.16 		Subd. 23.Service competency. (a) "Service competency" of an occupational therapy 
116.17 	assistant in performing evaluation tasks means the ability of an occupational therapy assistant 
116.18 	to obtain the same information as the supervising occupational therapist when evaluating 
116.19 	a client's function.
116.20 	(b) "Service competency" of an occupational therapy assistant in performing treatment 
116.21 	procedures means the ability of an occupational therapy assistant to perform treatment 
116.22 	procedures in a manner such that the outcome, documentation, and follow-up are equivalent 
116.23 	to that which would have been achieved had the supervising occupational therapist performed 
116.24 	the treatment procedure.
116.25 	(c) "Service competency" of an occupational therapist means the ability of an occupational 
116.26 	therapist to consistently perform an assessment task or intervention procedure with the level 
116.27 	of skill recognized as satisfactory within the appropriate acceptable prevailing practice
116.28 	national practice standards of occupational therapy.

117.1 	Sec. 37. Minnesota Statutes 2024, section 148.6402, subdivision 25, is amended to read:
117.2 		Subd. 25.Temporary licensure. "Temporary licensure" means a method of licensure 
117.3 	described in section 148.6418, by which an individual who (1) has completed an approved 
117.4 	or accredited education program but has not met the examination requirement; or (2) 
117.5 	possesses a credential from another jurisdiction or the National Board for Certification in 
117.6 	Occupational Therapy but who has not submitted the documentation required by section 
117.7 	148.6420, subdivisions 3 and 4, may qualify for Minnesota licensure for a limited time 
117.8 	period.

117.9 	Sec. 38. Minnesota Statutes 2024, section 148.6403, is amended to read:
117.10 	148.6403 LICENSURE; PROTECTED TITLES AND RESTRICTIONS ON USE; 
117.11 	EXEMPT PERSONS; SANCTIONS.
117.12 		Subdivision 1.Unlicensed practice prohibited. A person must not engage in the practice 
117.13 	of occupational therapy unless the person is licensed as an occupational therapy practitioner 
117.14 	in accordance with sections 148.6401 to 148.6449 148.645.
117.15 		Subd. 2.Protected titles and restrictions on use. Use of the phrase "occupational 
117.16 	therapy," or "occupational therapist," or "occupational therapy assistant," or the initials 
117.17 	"OT" or "OTA" alone or in combination with any other words or initials to form an 
117.18 	occupational title, or to indicate or imply that the person is licensed by the state as an 
117.19 	occupational therapist or occupational therapy assistant, is prohibited unless that person is 
117.20 	licensed under sections 148.6401 to 148.6449 148.645.
117.21 		Subd. 3.Use of "Minnesota licensed." Use of the term "Minnesota licensed" in 
117.22 	conjunction with titles protected under this section by any person is prohibited unless that 
117.23 	person is licensed under sections 148.6401 to 148.6449 148.645.
117.24 		Subd. 4.Persons licensed or certified in other states. A person who is licensed in 
117.25 	Minnesota and licensed or certified in another state jurisdiction may use the designation 
117.26 	"licensed" or "certified" with a protected title only if the state jurisdiction of licensure or 
117.27 	certification is clearly indicated.
117.28 		Subd. 5.Exempt persons. This section does not apply to:
117.29 	(1) a person employed as an occupational therapy practitioner by the government of the 
117.30 	United States or any agency of it. However, use of the protected titles under those 
117.31 	circumstances is allowed only in connection with performance of official duties for the 
117.32 	federal government;
118.1 	(2) a student participating in supervised fieldwork or supervised coursework that is 
118.2 	necessary to meet the requirements of section 148.6408, subdivision 1, or 148.6410, 
118.3 	subdivision 1, if the person is designated by a title which clearly indicates the person's status 
118.4 	as a student trainee. Any use of the protected titles under these circumstances is allowed 
118.5 	only while the person is performing the duties of the supervised fieldwork or supervised 
118.6 	coursework; or
118.7 	(3) a person visiting and then leaving the state and performing occupational therapy 
118.8 	services while in the state, if the services are performed no more than 30 days in a calendar 
118.9 	year as part of a professional activity that is limited in scope and duration and is in association 
118.10 	with an occupational therapist licensed under sections 148.6401 to 148.6449, and
118.11 	(i) the (3) a person who is credentialed under the law of another state which that has 
118.12 	credentialing requirements at least as stringent as the requirements of sections 148.6401 to 
118.13 	148.6449 148.645; or
118.14 	(ii) the (4) a person who meets the requirements for certification as an occupational 
118.15 	therapist registered (OTR) or a certified occupational therapy assistant (COTA), established 
118.16 	by the National Board for Certification in Occupational Therapy.; or
118.17 	(5) an occupational therapy practitioner who possesses an active compact privilege under 
118.18 	section 148.645.
118.19 		Subd. 6.Sanctions. A person who practices occupational therapy or holds out as an 
118.20 	occupational therapy practitioner by or through the use of any title described in subdivision 
118.21 	2 without prior licensure according to sections 148.6401 to 148.6449 148.645 is subject to 
118.22 	sanctions or action against continuing the activity according to section 148.6448, chapter 
118.23 	214, or other statutory authority.
118.24 		Subd. 7.Exemption. Nothing in sections 148.6401 to 148.6449 148.645 shall prohibit 
118.25 	the practice of any profession or occupation licensed or registered by the state by any person 
118.26 	duly licensed or registered to practice the profession or occupation or to perform any act 
118.27 	that falls within the scope of practice of the profession or occupation.

118.28 	Sec. 39. Minnesota Statutes 2024, section 148.6404, is amended to read:
118.29 	148.6404 SCOPE OF PRACTICE.
118.30 	(a) The practice of occupational therapy means the therapeutic use of everyday activities
118.31 	life occupations with individuals or, groups, or populations for the purpose of enhancing 
118.32 	or enabling participation in those occupations. It is the promotion of The practice of 
118.33 	occupational therapy promotes health and well-being through the use of occupational therapy 
119.1 	services that includes screening, evaluation, intervention, and consultation to develop, 
119.2 	recover, and maintain a client's:
119.3 	(1) sensory integrative, neuromuscular, motor, emotional, motivational, cognitive, or 
119.4 	psychosocial components of performance;
119.5 	(2) daily living skills;
119.6 	(3) feeding and swallowing skills;
119.7 	(4) play and leisure skills;
119.8 	(5) educational participation skills;
119.9 	(6) functional performance and work participation skills;
119.10 	(7) community mobility; and
119.11 	(8) health and wellness.
119.12 	(b) Occupational therapy services include but are not limited to:
119.13 	(1) designing, fabricating, or applying rehabilitative technology, such as selected orthotic 
119.14 	and prosthetic devices, and providing training in the functional use of these devices;
119.15 	(2) designing, fabricating, or adapting assistive technology and providing training in the 
119.16 	functional use of assistive devices;
119.17 	(3) adapting environments using assistive technology such as environmental controls, 
119.18 	wheelchair modifications, and positioning; and
119.19 	(4) employing applying physical agent, manual, and mechanical modalities in preparation 
119.20 	for or as an adjunct to purposeful activity to meet established functional occupational therapy 
119.21 	goals; and
119.22 	(5) educating and training individuals, including families, caregivers, groups, and 
119.23 	populations.
119.24 	(c) Occupational therapy services must be based on nationally established standards of 
119.25 	practice.

119.26 	Sec. 40. Minnesota Statutes 2024, section 148.6405, is amended to read:
119.27 	148.6405 LICENSURE APPLICATION REQUIREMENTS: PROCEDURES AND 
119.28 	QUALIFICATIONS.
119.29 	(a) An applicant for licensure must comply with the application requirements in section 
119.30 	148.6420. To qualify for licensure, an applicant must satisfy one of the requirements in 
120.1 	paragraphs (b) to (f) sections 148.6408 to 148.6415, or section 148.645 and not be subject 
120.2 	to denial of licensure under section 148.6448.
120.3 	(b) A person who applies for licensure as an occupational therapist and who has not 
120.4 	been credentialed by the National Board for Certification in Occupational Therapy or another 
120.5 	jurisdiction must meet the requirements in section 148.6408.
120.6 	(c) A person who applies for licensure as an occupational therapy assistant and who has 
120.7 	not been credentialed by the National Board for Certification in Occupational Therapy or 
120.8 	another jurisdiction must meet the requirements in section 148.6410.
120.9 	(d) A person who is certified by the National Board for Certification in Occupational 
120.10 	Therapy may apply for licensure by equivalency and must meet the requirements in section 
120.11 	148.6412.
120.12 	(e) A person who is credentialed in another jurisdiction and who was previously certified 
120.13 	by the National Board for Certification in Occupational Therapy may apply for licensure 
120.14 	by reciprocity and must meet the requirements in section 148.6415.
120.15 	(f) (b) A person who applies for temporary licensure must meet the requirements in 
120.16 	section 148.6418.
120.17 	(c) A person who applies for licensure under section 148.6408 or 148.6410 more than 
120.18 	two years after the person's initial NBCOT certification was issued and who has not practiced 
120.19 	in any jurisdiction must submit:
120.20 	(1) a completed and signed application for licensure on forms provided by the board 
120.21 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
120.22 	and (2); and
120.23 	(2) proof of a minimum of 24 continuing education contact hours by an occupational 
120.24 	therapist applicant, or a minimum of 18 hours by an occupational therapy assistant applicant, 
120.25 	completed within the two years proceeding the application and meeting the requirements 
120.26 	of section 148.6443.
120.27 	(g) (d) A person who applies for licensure under paragraph (b), (c), or (f) more than two 
120.28 	and less than four years after meeting the examination requirements in section 148.6408, 
120.29 	subdivision 2, or 148.6410, subdivision 2, section 148.6408 or 148.6410 after the person's 
120.30 	initial NBCOT certification has expired must submit the following:
120.31 	(1) a completed and signed application for licensure on forms provided by the board
120.32 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
120.33 	and (2); and
121.1 	(2) the license application fee required under section 148.6445; evidence of:
121.2 	(i) completion of an occupational therapy refresher program that contains both theoretical 
121.3 	and clinical components completed within the last year; or
121.4 	(ii) current NBCOT certification.
121.5 	(3) if applying for occupational therapist licensure, proof of having met a minimum of 
121.6 	24 contact hours of continuing education in the two years preceding licensure application, 
121.7 	or if applying for occupational therapy assistant licensure, proof of having met a minimum 
121.8 	of 18 contact hours of continuing education in the two years preceding licensure application;
121.9 	(4) verified documentation of successful completion of 160 hours of supervised practice 
121.10 	approved by the board under a limited license specified in section 148.6425, subdivision 3, 
121.11 	paragraph (c); and
121.12 	(5) additional information as requested by the board to clarify information in the 
121.13 	application, including information to determine whether the individual has engaged in 
121.14 	conduct warranting disciplinary action under section 148.6448. The information must be 
121.15 	submitted within 30 calendar days from the date of the board's request.
121.16 	(h) A person who applies for licensure under paragraph (b), (c), or (f) four years or more 
121.17 	after meeting the examination requirements in section 148.6408, subdivision 2, or 148.6410, 
121.18 	subdivision 2, must:
121.19 	(1) meet all the requirements in paragraph (g) except clauses (3) and (4);
121.20 	(2) submit documentation of having retaken and achieved a qualifying score on the 
121.21 	credentialing examination for occupational therapists or occupational therapy assistants, or 
121.22 	of having completed an occupational therapy refresher program that contains both a 
121.23 	theoretical and clinical component approved by the board; and
121.24 	(3) submit verified documentation of successful completion of 480 hours of supervised 
121.25 	practice approved by the board under a limited license specified in section 148.6425, 
121.26 	subdivision 3, paragraph (c). The 480 hours of supervised practice must be completed in 
121.27 	six months and may be completed at the applicant's place of work. Only refresher courses 
121.28 	completed within one year prior to the date of application qualify for approval.

121.29 	Sec. 41. Minnesota Statutes 2024, section 148.6408, is amended by adding a subdivision 
121.30 	to read:
121.31 		Subd. 1a.Qualifications. To be licensed as an occupational therapist, an applicant must:
121.32 	(1) satisfy the education and examination requirements of subdivisions 1b and 2; or
122.1 	(2) satisfy the requirements for licensure by equivalency under section 148.6412 or 
122.2 	licensure by reciprocity under section 148.6415 as applicable based on the current status of 
122.3 	the applicant's NBCOT certification.

122.4 	Sec. 42. Minnesota Statutes 2024, section 148.6408, subdivision 2, is amended to read:
122.5 		Subd. 2.Qualifying examination score required. (a) An applicant must achieve a 
122.6 	qualifying score on the credentialing certification examination for occupational therapist.
122.7 	(b) The board shall determine the qualifying score for the credentialing certification
122.8 	examination for occupational therapist. In determining the qualifying score, the board shall 
122.9 	consider the cut scoreas recommended by the National Board for Certification in 
122.10 	Occupational Therapy, or other national credentialing certification organization approved 
122.11 	by the board, using the modified Angoff method for determining cut score or another method 
122.12 	for determining cut score that is recognized as appropriate and acceptable by industry 
122.13 	standards.
122.14 	(c) The applicant is responsible for Applicants for licensure must:
122.15 	(1) making make arrangements to take the credentialing certification examination for 
122.16 	an occupational therapist;
122.17 	(2) bearing bear all expenses associated with taking the examination; and
122.18 	(3) having the examination scores sent directly to the board from the testing service that 
122.19 	administers the examination submit an application and other materials as required by the 
122.20 	board under section 148.6420.

122.21 	Sec. 43. Minnesota Statutes 2024, section 148.6410, is amended by adding a subdivision 
122.22 	to read:
122.23 		Subd. 1a.Qualifications. To be licensed as an occupational therapist assistant, an 
122.24 	applicant must:
122.25 	(1) satisfy the education and examination requirements of subdivisions 1b and 2; or
122.26 	(2) satisfy the requirements for licensure by equivalency under section 148.6412 or 
122.27 	licensure by reciprocity under section 148.6415 as applicable based on the current status of 
122.28 	the applicant's NBCOT certification.

123.1 	Sec. 44. Minnesota Statutes 2024, section 148.6410, subdivision 2, is amended to read:
123.2 		Subd. 2.Qualifying examination score required. (a) An applicant for licensure must 
123.3 	achieve a qualifying score on the credentialing certification examination for occupational 
123.4 	therapy assistants.
123.5 	(b) The board shall determine the qualifying score for the credentialing certification
123.6 	examination for occupational therapy assistants. In determining the qualifying score, the 
123.7 	board shall consider the cut score as recommended by the National Board for Certification 
123.8 	in Occupational Therapy, or other national credentialing certification organization approved 
123.9 	by the board, using the modified Angoff method for determining cut score or another method 
123.10 	for determining cut score that is recognized as appropriate and acceptable by industry 
123.11 	standards.
123.12 	(c) The applicant is responsible for Applicants for licensure must:
123.13 	(1) making make all arrangements to take the credentialing certification examination 
123.14 	for occupational therapy assistants;
123.15 	(2) bearing bear all expense associated with taking the examination; and
123.16 	(3) having the examination scores sent directly to the board from the testing service that 
123.17 	administers the examination submit an application and other materials as required by the 
123.18 	board under section 148.6420.

123.19 	Sec. 45. Minnesota Statutes 2024, section 148.6412, subdivision 2, is amended to read:
123.20 		Subd. 2.Persons currently certified by National Board for Certification in 
123.21 	Occupational Therapy NBCOT. The board may license any person certified by the National 
123.22 	Board for Certification in Occupational Therapy who holds current NBCOT certification
123.23 	as an occupational therapist if the board determines the requirements for certification are 
123.24 	equivalent to or exceed the requirements for licensure as an occupational therapist under 
123.25 	section 148.6408 therapy practitioner. The board may license any person certified by the 
123.26 	National Board for Certification in Occupational Therapy as an occupational therapy assistant 
123.27 	if the board determines the requirements for certification are equivalent to or exceed the 
123.28 	requirements for licensure as an occupational therapy assistant under section 148.6410.
123.29 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
123.30 	for discipline in sections 148.6401 to 148.6449 148.645.

123.31 	Sec. 46. Minnesota Statutes 2024, section 148.6412, subdivision 3, is amended to read:
123.32 		Subd. 3.Application procedures. Applicants for licensure by equivalency must provide:
124.1 	(1) the application materials as required by section 148.6420, subdivisions subdivision
124.2 	1, 3, and 4; and.
124.3 	(2) the fees required by section 148.6445.

124.4 	Sec. 47. Minnesota Statutes 2024, section 148.6415, is amended to read:
124.5 	148.6415 LICENSURE BY RECIPROCITY.
124.6 	A person who is not certified by the National Board for Certification in Occupational 
124.7 	Therapy The board may license any person who does not hold current NBCOT certification
124.8 	but who holds a compact privilege or a current credential as an occupational therapist therapy 
124.9 	practitioner in the District of Columbia or a state or territory of the United States whose 
124.10 	standards for credentialing are determined by the board to be equivalent to or exceed the 
124.11 	requirements for licensure under section 148.6408may be eligible for licensure by reciprocity 
124.12 	as an occupational therapist. A person who is not certified by the National Board for 
124.13 	Certification in Occupational Therapy but who holds a current credential as an occupational 
124.14 	therapy assistant in the District of Columbia or a state or territory of the United States whose 
124.15 	standards for credentialing are determined by the board to be equivalent to or exceed the 
124.16 	requirements for licensure under section 148.6410 may be eligible for licensure by reciprocity 
124.17 	as an occupational therapy assistant. or 148.6410 as an occupational therapy practitioner.
124.18 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
124.19 	for discipline in sections 148.6401 to 148.6449 148.645. An applicant must provide:
124.20 	(1) the application materials as required by section 148.6420, subdivisions subdivision
124.21 	1, 3, and 4; and
124.22 	(2) the fees required by section 148.6445;
124.23 	(3) a copy of a current and unrestricted credential for the practice of occupational therapy 
124.24 	as either an occupational therapist or occupational therapy assistant;
124.25 	(4) a letter from the jurisdiction that issued the credential describing the applicant's 
124.26 	qualifications that entitled the applicant to receive the credential; and
124.27 	(5) (2) other information necessary to determine whether the credentialing standards of 
124.28 	the jurisdiction that issued the credential are equivalent to or exceed the requirements for 
124.29 	licensure under sections 148.6401 to 148.6449 148.645.

125.1 	Sec. 48. Minnesota Statutes 2024, section 148.6418, is amended to read:
125.2 	148.6418 TEMPORARY LICENSURE.
125.3 		Subdivision 1.Application. The board shall issue temporary licensure as an occupational 
125.4 	therapist or occupational therapy assistant practitioner to applicants who are not the subject 
125.5 	of a disciplinary action or past disciplinary action, nor disqualified on the basis of items 
125.6 	listed in section 148.6448, subdivision 1.
125.7 		Subd. 2.Procedures. To be eligible for temporary licensure, an applicant must submit 
125.8 	a completed application for temporary licensure on forms provided by the board, the fees 
125.9 	required by section 148.6445, and one of the following:
125.10 	(1) evidence of successful completion of the requirements in section 148.6408, 
125.11 	subdivision 1, or 148.6410, subdivision 1;
125.12 	(2) a copy of a current and unrestricted credential for the practice of occupational therapy 
125.13 	as either an occupational therapist or occupational therapy assistant practitioner in another 
125.14 	jurisdiction; or
125.15 	(3) a copy of a current and unrestricted certificate certification from the National Board 
125.16 	for Certification in Occupational Therapy stating that the applicant is certified as an 
125.17 	occupational therapist or occupational therapy assistant practitioner.
125.18 		Subd. 3.Additional documentation. Persons who are credentialed certified by the 
125.19 	National Board for Certification in Occupational Therapy or credentialed by another 
125.20 	jurisdiction must provide an affidavit a statement with the application for temporary licensure 
125.21 	stating that they are not the subject of a pending investigation or disciplinary action and 
125.22 	have not been the subject of a disciplinary action in the past.
125.23 		Subd. 4.Supervision required. An applicant who has graduated from an accredited 
125.24 	occupational therapy program, as required by section 148.6408, subdivision 1, or 148.6410, 
125.25 	subdivision 1, and who has not passed the examination required by section 148.6408, 
125.26 	subdivision 2, or 148.6410, subdivision 2, must practice under the supervision of a licensed 
125.27 	occupational therapist. The supervising therapist must, at a minimum, supervise the person 
125.28 	working under temporary licensure in the performance of the initial evaluation, determination 
125.29 	of the appropriate intervention plan, and periodic review and modification of the intervention 
125.30 	plan. The supervising therapist must observe the person working under temporary licensure 
125.31 	in order to ensure service competency in carrying out evaluation, intervention planning, 
125.32 	and intervention implementation. The frequency of face-to-face collaboration between the 
125.33 	person working under temporary licensure and the supervising therapist must be based on 
126.1 	the condition of each patient or client, the complexity of intervention and evaluation 
126.2 	procedures, and the proficiencies of the person practicing under temporary licensure. 
126.3 	Following demonstrated service competency of the applicant, supervision must occur no 
126.4 	less than every ten intervention days or every 30 calendar days, whichever occurs first. The 
126.5 	occupational therapist or occupational therapy assistant practitioner working under temporary 
126.6 	licensure must provide verification of supervision on the application form provided by the 
126.7 	board. Supervising occupational therapists must have a minimum of six months of fully 
126.8 	licensed practice to supervise a temporary licensee. The occupational therapy practitioner 
126.9 	working under temporary licensure must notify the board before changing supervision.
126.10 		Subd. 5.Qualifying examination requirement; expiration and renewability. (a) A 
126.11 	person issued a temporary license pursuant to subdivision 2, clause (1), must demonstrate 
126.12 	to the board within the temporary licensure period successful completion of the qualifying 
126.13 	examination requirement under section 148.6408, subdivision 2, or section 148.6410, 
126.14 	subdivision 2. A temporary license holder who fails the qualifying examination for a second 
126.15 	time shall have their temporary license revoked effective upon notification to the temporary 
126.16 	license holder of the examination score. It is the temporary license holder's obligation to 
126.17 	submit to the board their qualifying examination scores and to refrain from practice if their 
126.18 	temporary license is revoked. Failure to do so subjects the temporary license holder to 
126.19 	disciplinary action pursuant to section 148.6448, subdivision 1, clause (5) (6). The board 
126.20 	must not issue a temporary license to a person with two or more certification examination 
126.21 	failures.
126.22 	(b) A temporary license expires six months from the date of issuance or on the date the 
126.23 	board grants or denies licensure, whichever occurs first.
126.24 	(c) A temporary license is not renewable.

126.25 	Sec. 49. Minnesota Statutes 2024, section 148.6420, subdivision 1, is amended to read:
126.26 		Subdivision 1.Applications for initial licensure. (a) An applicant for initial licensure 
126.27 	must:
126.28 	(1) submit a completed application for licensure on forms provided by the board and 
126.29 	must supply the all information and documentation requested on the application, including:
126.30 	(i) the applicant's name, business address and business telephone number, business 
126.31 	setting, primary email address, and daytime home or mobile telephone number;
126.32 	(ii) the name and location of the occupational therapy program the applicant completed;
127.1 	(iii) (ii) a description of the applicant's education and training, including the name and 
127.2 	location of the occupational therapy program the applicant completed and a list of degrees 
127.3 	received from all other educational institutions attended;
127.4 	(iv) (iii) the applicant's work history for the six years preceding the application;
127.5 	(v) (iv) a list of all credentials currently and previously held in Minnesota and other 
127.6 	jurisdictions;
127.7 	(vi) (v) a description of any jurisdiction's refusal to credential the applicant;
127.8 	(vii) (vi) a description of all professional disciplinary actions initiated against the applicant 
127.9 	in any jurisdiction;
127.10 	(viii) (vii) information on any physical or mental condition or substance use disorder 
127.11 	that impairs the person's ability to engage in the practice of occupational therapy with 
127.12 	reasonable judgment or safety;
127.13 	(ix) (viii) a description of any misdemeanor or felony conviction that relates to honesty 
127.14 	or to the practice of occupational therapy charges or convictions; and
127.15 	(x) (ix) a description of any state or federal court order, including a conciliation court 
127.16 	judgment or a disciplinary order, related to the individual's occupational therapy practice;
127.17 	(2) submit with the application all fees required by section 148.6445;
127.18 	(3) sign a statement that the information in the application is true and correct to the best 
127.19 	of the applicant's knowledge and belief;
127.20 	(4) sign a waiver authorizing the board to obtain access to the applicant's records in this 
127.21 	or any other state in which the applicant holds or previously held a credential for the practice 
127.22 	of an occupation, has completed an accredited occupational therapy education program, or 
127.23 	engaged in the practice of occupational therapy;
127.24 	(x) any legal information required under chapter 214;
127.25 	(xi) either documentation to demonstrate the completion of the required education and 
127.26 	examination requirements under section 148.6408, subdivisions 1b and 2, or 148.6410, 
127.27 	subdivisions 1b and 2; for applicants for licensure by equivalency under section 148.6412, 
127.28 	documentation of current NBCOT certification; for applicants for licensure by reciprocity 
127.29 	under section 148.6415, documentation submitted directly by the appropriate commission 
127.30 	or government body verifying the license or credential; or verification from the Compact 
127.31 	Commission of the applicant's practice status in Compact Commission states;
127.32 	(xii) all application fees required by section 148.6445;
128.1 	(xiii) evidence of completing a criminal background check according to section 214.075; 
128.2 	and
128.3 	(xiv) a signed statement affirming that the information in the application is true and 
128.4 	correct to the best of the applicant's knowledge and belief;
128.5 	(5)(2) submit additional information as requested by the board; and
128.6 	(6) (3) submit the any additional information required for licensure by equivalency, 
128.7 	licensure by reciprocity, licensure by compact privilege, and temporary licensure as specified 
128.8 	in sections 148.6408 to 148.6418. and 148.645. An applicant applying under section 148.6418 
128.9 	is exempt from providing documentation related to a criminal background check under 
128.10 	clause (1), item (xiii). An applicant applying under section 148.6418, subdivision 4, is 
128.11 	exempt from providing documentation related to previously held licenses or credentials 
128.12 	under clause (1), item (iv).
128.13 	(b) The board must not verify the status of an applicant under paragraph (a), clause (1), 
128.14 	item (xi), by using another jurisdiction's publicly available website unless the other 
128.15 	jurisdiction fails to provide the requested documentation after the applicant provides 
128.16 	documentation of making the request.

128.17 	Sec. 50. Minnesota Statutes 2024, section 148.6423, subdivision 1, is amended to read:
128.18 		Subdivision 1.Renewal requirements. To be eligible for licensure renewal, a licensee 
128.19 	must:
128.20 	(1) submit a completed and signed application for licensure renewal; on forms provided 
128.21 	by the board, including:
128.22 	(i) updated personal information, including the renewal applicant's name, business 
128.23 	address and business telephone number, primary email address, and home or mobile telephone 
128.24 	number;
128.25 	(ii) information regarding any change to the renewal applicant's responses to section 
128.26 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
128.27 	(iii) a signed statement affirming that the information in the renewal application is true 
128.28 	and correct to the best of the applicant's knowledge and belief; and
128.29 	(iv) any legal information required under chapter 214;
128.30 	(2) submit the renewal fee required under section 148.6445;
129.1 	(3) if audited, submit proof of having met the continuing education requirement of section 
129.2 	148.6443; and
129.3 	(4) submit additional information as requested by the board to clarify information 
129.4 	presented in the renewal application. The information must be submitted within 30 calendar 
129.5 	days of the board's request.

129.6 	Sec. 51. Minnesota Statutes 2024, section 148.6423, is amended by adding a subdivision 
129.7 	to read:
129.8 		Subd. 1a.License period. Following the initial license period, a license period begins 
129.9 	on the first day of the month after the licensee's birth month and must be renewed biennially.

129.10 	Sec. 52. Minnesota Statutes 2024, section 148.6423, subdivision 2, is amended to read:
129.11 		Subd. 2.Renewal deadline. (a) Except as provided in paragraph (c), licenses must be 
129.12 	renewed every two years on or before the first day of the month after the licensee's birth 
129.13 	month. Licensees must comply with the following procedures in paragraphs (b) to (e).
129.14 	(b) Each license must state an expiration date. An application for licensure renewal must 
129.15 	be received by the board at least 30 calendar days on or before the expiration date.
129.16 	(c) If the board changes the renewal schedule and the expiration date is less than two 
129.17 	years, the fee and the continuing education contact hours to be reported at the next renewal 
129.18 	must be prorated.
129.19 	(d) An application for licensure renewal not received within the time required under 
129.20 	paragraph (b), but received on or before the expiration date, must be accompanied by a late 
129.21 	fee in addition to the renewal fee specified by section 148.6445.
129.22 	(e) Licensure renewals received after the expiration date must comply with the 
129.23 	requirements of section 148.6425.

129.24 	Sec. 53. Minnesota Statutes 2024, section 148.6425, subdivision 2, is amended to read:
129.25 		Subd. 2.Licensure renewal within one year after licensure expiration date. A licensee 
129.26 	whose application for licensure renewal is received after the licensure expiration date but 
129.27 	within one year of the expiration date must submit the following:
129.28 	(1) a completed and signed renewal application for licensure following lapse in licensed 
129.29 	status; on forms provided by the board, including:
130.1 	(i) updated personal information, including the renewal applicant's name, business 
130.2 	address and business telephone number, primary email address, and home or mobile telephone 
130.3 	number;
130.4 	(ii) information regarding any change to the renewal applicant's responses to section 
130.5 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
130.6 	(iii) a signed statement affirming that the information in the renewal application is true 
130.7 	and correct to the best of the applicant's knowledge and belief;
130.8 	(iv) information regarding any change to the renewal applicant's responses to section 
130.9 	148.6420, subdivision 1, paragraph (a), clause (1), item (xi);
130.10 	(v) NBCOT verification of certification documentation; and
130.11 	(vi) any legal information required under chapter 214;
130.12 	(2) the renewal fee and the late fee required under section 148.6445;
130.13 	(3) proof of having met the continuing education requirements in section 148.6443, 
130.14 	subdivision 1; and
130.15 	(4) an employment verification form; and
130.16 	(4) (5) additional information as requested by the board to clarify information in the 
130.17 	application, including information to determine whether the licensee has engaged in conduct 
130.18 	warranting disciplinary action as set forth in section 148.6448. The information must be 
130.19 	submitted within 30 calendar days from the date of the board's request.

130.20 	Sec. 54. Minnesota Statutes 2024, section 148.6425, is amended by adding a subdivision 
130.21 	to read:
130.22 		Subd. 4.Licensure renewal within two years after license expiration date. A licensee 
130.23 	whose application for license renewal is received more than one year but less than two years 
130.24 	after the expiration date must submit the following:
130.25 	(1) a completed and signed renewal application for licensure following lapse in licensed 
130.26 	status on forms provided by the board, including all information listed in subdivision 2, 
130.27 	clause (1);
130.28 	(2) the renewal fee and the late fee required under section 148.6445;
130.29 	(3) proof of having met the continuing education requirements in section 148.6443;
130.30 	(4) an employment verification form;
131.1 	(5) evidence of completion of a criminal background check as required under section 
131.2 	214.075 and the associated fee; and
131.3 	(6) additional information as requested by the board to clarify information in the 
131.4 	application, including information to determine whether the licensee has engaged in conduct 
131.5 	warranting disciplinary action as set forth in section 148.6448. The information must be 
131.6 	submitted within 30 calendar days from the date of the board's request.

131.7 	Sec. 55. Minnesota Statutes 2024, section 148.6425, is amended by adding a subdivision 
131.8 	to read:
131.9 		Subd. 5.Expiration due to nonrenewal after two years. The board shall not renew, 
131.10 	reissue, reinstate, or restore a license that is not subject to a pending review, investigation, 
131.11 	or disciplinary action and has not been renewed within one biennial renewal cycle of the 
131.12 	license expiration. An individual whose license has expired under this subdivision for 
131.13 	nonrenewal must obtain a new license by applying for licensure and fulfilling all requirements 
131.14 	then in existence for an initial license to practice occupational therapy in Minnesota.

131.15 	Sec. 56. Minnesota Statutes 2024, section 148.6428, is amended to read:
131.16 	148.6428 CHANGE OF CONTACT INFORMATION OR EMPLOYMENT.
131.17 	A licensee who changes a name, primary email address, address, employment, business 
131.18 	address, or business telephone number must inform the board of the change of name, primary 
131.19 	email address, address, employment, business address, or business telephone number within 
131.20 	30 calendar days from the effective date of the change. A change in name must be 
131.21 	accompanied by a copy of a marriage certificate, government-issued identification card, 
131.22 	Social Security card, or court order. All notices or other correspondence served on a licensee 
131.23 	by the board at the licensee's contact information on file with the board must be considered 
131.24 	as having been received by the licensee.

131.25 	Sec. 57. [148.6431] JURISPRUDENCE EXAMINATION.
131.26 	The board may require occupational therapy practitioners to take an open-book 
131.27 	jurisprudence examination on state laws and rules regarding the practice of occupational 
131.28 	therapy and occupational therapy assisting.

131.29 	Sec. 58. Minnesota Statutes 2024, section 148.6432, subdivision 1, is amended to read:
131.30 		Subdivision 1.Applicability. If the professional standards identified in section 148.6430
131.31 	subdivision 1a permit an occupational therapist to delegate an evaluation, reevaluation, or 
132.1 	treatment procedure, the occupational therapist must provide supervision consistent with 
132.2 	this section.

132.3 	Sec. 59. Minnesota Statutes 2024, section 148.6432, is amended by adding a subdivision 
132.4 	to read:
132.5 		Subd. 1a.Delegation of duties. (a) The occupational therapist may delegate to an 
132.6 	occupational therapy assistant those portions of the client's evaluation, reevaluation, and 
132.7 	intervention that, according to prevailing national practice standards, can be performed by 
132.8 	an occupational therapy assistant.
132.9 	(b) The occupational therapist is responsible for all duties delegated to the occupational 
132.10 	therapy assistant.
132.11 	(c) The occupational therapist may not delegate portions of an evaluation or reevaluation 
132.12 	of a person whose condition is changing rapidly.

132.13 	Sec. 60. Minnesota Statutes 2024, section 148.6432, subdivision 2, is amended to read:
132.14 		Subd. 2.Evaluations. The occupational therapist shall determine the frequency of 
132.15 	evaluations and reevaluations for each client. The occupational therapy assistant shall inform 
132.16 	the occupational therapist of the need for more frequent reevaluation if indicated by the 
132.17 	client's condition or response to treatment. Before delegating a portion of a client's evaluation 
132.18 	pursuant to section 148.6430 subdivision 1a, the occupational therapist shall ensure the 
132.19 	service competency of the occupational therapy assistant in performing the evaluation 
132.20 	procedure and shall provide supervision consistent with the condition of the patient or client 
132.21 	and the complexity of the evaluation procedure.

132.22 	Sec. 61. Minnesota Statutes 2024, section 148.6432, subdivision 3, is amended to read:
132.23 		Subd. 3.Intervention. (a) The occupational therapist must determine the frequency and 
132.24 	manner of supervision of an occupational therapy assistant performing intervention 
132.25 	procedures delegated pursuant to section 148.6430 subdivision 1a based on the condition 
132.26 	of the patient or client, the complexity of the intervention procedure, and the service 
132.27 	competency of the occupational therapy assistant.
132.28 	(b) Face-to-face collaboration between the occupational therapist and the occupational 
132.29 	therapy assistant must occur for all clients every ten intervention days or every 30 days, 
132.30 	whichever comes first, during which time the occupational therapist is responsible for:
133.1 	(1) planning and documenting an initial intervention plan and discharge from 
133.2 	interventions;
133.3 	(2) reviewing intervention goals, therapy programs, and client progress;
133.4 	(3) supervising changes in the intervention plan;
133.5 	(4) conducting or observing intervention procedures for selected clients and documenting 
133.6 	appropriateness of intervention procedures. Clients must be selected based on the 
133.7 	occupational therapy services provided to the client and the role of the occupational therapist 
133.8 	and the occupational therapy assistant in those services; and
133.9 	(5) ensuring the service competency of the occupational therapy assistant in performing 
133.10 	delegated intervention procedures.
133.11 	(c) Face-to-face collaboration must occur more frequently if necessary to meet the 
133.12 	requirements of paragraph (a) or (b).
133.13 	(d) The occupational therapist must document compliance with this subdivision in the 
133.14 	client's file or chart.

133.15 	Sec. 62. Minnesota Statutes 2024, section 148.6432, subdivision 4, is amended to read:
133.16 		Subd. 4.Exception. (a) The supervision requirements of this section do not apply to an 
133.17 	occupational therapy assistant who:
133.18 	(1) works in an activities program; and
133.19 	(2) does not perform occupational therapy services.
133.20 	(b) The occupational therapy assistant must meet all other applicable requirements of 
133.21 	sections 148.6401 to 148.6449 148.645.

133.22 	Sec. 63. Minnesota Statutes 2024, section 148.6435, is amended to read:
133.23 	148.6435 COORDINATION OF SERVICES.
133.24 	An occupational therapist must:
133.25 	(1) collect information necessary to ensure that the provision of occupational therapy 
133.26 	services are consistent with the client's physical and mental health status. The information 
133.27 	required to make this determination may include, but is not limited to, contacting the client's 
133.28 	licensed health care professional for health history, current health status, current medications, 
133.29 	and precautions;
134.1 	(2) modify or terminate occupational therapy intervention of a client that is not beneficial 
134.2 	to the client, not tolerated by the client, or refused by the client, and if intervention was 
134.3 	terminated for a medical reason, notify the client's licensed health care professional by 
134.4 	correspondence postmarked or delivered to the licensed health care professional within one 
134.5 	week of the termination of intervention;
134.6 	(3) (2) refer a client to an appropriate health care, social service, or education practitioner 
134.7 	if the client's condition requires services not within the occupational therapist's service 
134.8 	competency or not within the practice of occupational therapy generally, or if the client's 
134.9 	acuity warrants alternative care; and
134.10 	(4) (3) participate and cooperate in the coordination of occupational therapy services 
134.11 	with other related services, as a member of the professional community serving the client.

134.12 	Sec. 64. Minnesota Statutes 2024, section 148.6438, is amended to read:
134.13 	148.6438 RECIPIENT NOTIFICATION.
134.14 		Subdivision 1.Required notification. (a) In the absence of a physician, advanced 
134.15 	practice registered nurse, or physician assistantlicensed health care provider referral or 
134.16 	prior authorization, and before providing occupational therapy services for remuneration 
134.17 	or expectation of payment from the client, an occupational therapist must provide the 
134.18 	following written notification in all capital letters of 12-point or larger boldface type, to the 
134.19 	client, parent, or guardian in a format meeting national accessibility standards and the needs 
134.20 	of the client, parent, or guardian:
134.21 	"Your health care provider, insurer, or plan may require a physician, advanced practice 
134.22 	registered nurse, or physician assistant licensed health care provider referral or prior 
134.23 	authorization and you may be obligated for partial or full payment for occupational therapy 
134.24 	services rendered."
134.25 	(b) Information other than this notification may be included as long as the notification 
134.26 	remains conspicuous on the face of the document. A nonwritten disclosure format may be 
134.27 	used to satisfy the recipient notification requirement when necessary to accommodate the 
134.28 	physical condition of a client or client's guardian.
134.29 		Subd. 2.Evidence of recipient notification. The occupational therapist is responsible 
134.30 	for providing evidence of compliance with the recipient notification requirement of this 
134.31 	section with documentation of the client, parent, or guardian agreement.

135.1 	Sec. 65. Minnesota Statutes 2024, section 148.6443, subdivision 3, is amended to read:
135.2 		Subd. 3.Activities qualifying for continuing education contact hours. (a) The activities 
135.3 	in this subdivision qualify for continuing education contact hours if they meet all other 
135.4 	requirements of this section.
135.5 	(b) A minimum of one-half of the required contact hours must be directly related to 
135.6 	occupational therapy practice. The remaining contact hours may be related to occupational 
135.7 	therapy practice, the delivery of occupational therapy services, or to the practitioner's current 
135.8 	professional role.
135.9 	(c) A licensee may obtain an unlimited number of contact hours in any two-year 
135.10 	continuing education period through participation in the following:
135.11 	(1) attendance at educational programs of annual conferences, lectures, panel discussions, 
135.12 	workshops, in-service training, seminars, and symposiums;
135.13 	(2) successful completion of college or university courses. The licensee must obtain a 
135.14 	grade of at least a "C" or a pass in a pass/fail course in order to receive credit. One college 
135.15 	credit equals six continuing education contact hours; or
135.16 	(3) successful completion of home study courses that require the participant to 
135.17 	demonstrate the participant's knowledge following completion of the course provide 
135.18 	documentation that the course was completed and that meet the requirements in subdivision 
135.19 	2.
135.20 	(d) A licensee may obtain a maximum of one-half of the required contact hours in any 
135.21 	two-year continuing education period for:
135.22 	(1) teaching continuing education or occupational therapy related courses that meet the 
135.23 	requirements of this section. A licensee is entitled to earn a maximum of two contact hours 
135.24 	as preparation time for each contact hour of presentation time. Contact hours may be claimed 
135.25 	only once for teaching the same course in any two-year continuing education period. A 
135.26 	course schedule or brochure must be maintained for audit;
135.27 	(2) supervising occupational therapist or occupational therapy assistant students. A 
135.28 	licensee may earn one contact hour for every eight hours of student supervision. Licensees 
135.29 	must ensure they receive documentation regarding each student supervised and the dates 
135.30 	and hours each student was supervised. Contact hours obtained by student supervision must 
135.31 	be obtained by supervising students from an occupational therapy education program 
135.32 	accredited by the Accreditation Council for Occupational Therapy Education; and
136.1 	(3) teaching or participating in courses related to leisure activities, recreational activities, 
136.2 	or hobbies if the practitioner uses these interventions within the practitioner's current practice 
136.3 	or employment; and
136.4 	(4)(3) engaging in research activities or outcome studies that are related to the practice 
136.5 	of occupational therapy and associated with grants, postgraduate studies, or publications in 
136.6 	professional journals or books.
136.7 	(e) A licensee may obtain a maximum of two contact hours in any two-year continuing 
136.8 	education period for continuing education activities in the following areas:
136.9 	(1) personal skill topics: career burnout, communication skills, human relations, and 
136.10 	similar topics;
136.11 	(2) training that is obtained in conjunction with a licensee's employment, occurs during 
136.12 	a licensee's normal workday, and does not include subject matter specific to the fundamentals 
136.13 	of occupational therapy basic life support and CPR training; and
136.14 	(3) participation for a minimum of one year on a professional committee or board.

136.15 	Sec. 66. Minnesota Statutes 2024, section 148.6443, subdivision 4, is amended to read:
136.16 		Subd. 4.Activities not qualifying for continuing education contact hours.  Credit 
136.17 	must not be granted for the following activities: hospital patient rounds,; entertainment or 
136.18 	recreational activities,; volunteering; noneducational association meetings,; and employment 
136.19 	orientation sessions and meetings, including but not limited to training required at the 
136.20 	beginning of employment, annually, or routinely that is related to the employer's organization 
136.21 	requirements.

136.22 	Sec. 67. Minnesota Statutes 2024, section 148.6443, subdivision 5, is amended to read:
136.23 		Subd. 5.Reporting continuing education contact hours. Each licensee must use the 
136.24 	continuing education reporting form to verify meeting the continuing education requirements 
136.25 	of this section. The licensee must maintain documentation, including but not limited to a 
136.26 	signed certificate, transcript, or similar evidence of participation in an activity. The 
136.27 	documentation must include a:
136.28 	(1) the title of the continuing education activity;
136.29 	(2) a brief description of the continuing education activity prepared by the presenter or 
136.30 	sponsor;
136.31 	(3) the name of the sponsor, presenter, or author;
137.1 	(4) the location and attendance dates;
137.2 	(5) the number of contact hours; and
137.3 	(6) the licensee's name.

137.4 	Sec. 68. Minnesota Statutes 2024, section 148.6443, subdivision 6, is amended to read:
137.5 		Subd. 6.Auditing continuing education reports. (a) The board may audit a percentage 
137.6 	of the continuing education reports based on random selection. A licensee shall maintain 
137.7 	all documentation required by this section for two years after the last day of the biennial 
137.8 	licensure period in which the contact hours were earned.
137.9 	(b) All renewal applications that are received after the expiration date may be subject 
137.10 	to a continuing education report audit.
137.11 	(c) Any licensee against whom a complaint is filed may be subject to a continuing 
137.12 	education report audit.
137.13 	(d) The licensee shall make the following information available to the board for auditing 
137.14 	purposes:
137.15 	(1) a copy of the completed continuing education reporting form for the continuing 
137.16 	education reporting period that is the subject of the audit including all supporting 
137.17 	documentation required by subdivision 5;
137.18 	(2) documentation of university, college, or vocational school courses by a transcript 
137.19 	and a course syllabus, listing in a course bulletin, or equivalent documentation that includes 
137.20 	the course title, instructor's name, course dates, number of contact hours, and course content, 
137.21 	objectives, or goals; and
137.22 	(3) verification of attendance by that meets the requirements of subdivision 5 by 
137.23 	submitting:
137.24 	(i) a signature ofcertificate of attendance, or if a certificate is not available, other 
137.25 	documentation from the presenter or a designee at the continuing education activity on the 
137.26 	continuing education report form or a certificate of attendance with the course name, course 
137.27 	date, and licensee's name submitted directly to the board confirming the requirements; or
137.28 	(ii) a summary or outline of the educational content of an audio or video educational 
137.29 	activity to verify the licensee's participation in the activity if a designee is not available to 
137.30 	sign the continuing education report form; or
138.1 	(iii) (ii) verification of self-study programs by a certificate of completion or other 
138.2 	documentation indicating that the individual has demonstrated knowledge and has 
138.3 	successfully completed the program.

138.4 	Sec. 69. Minnesota Statutes 2024, section 148.6443, subdivision 7, is amended to read:
138.5 		Subd. 7.Waiver Deferral of continuing education requirements. The board may 
138.6 	waive or defer all or part of the continuing education requirements of this section if the 
138.7 	licensee submits a written request and provides satisfactory evidence to the board of illness, 
138.8 	injury, financial hardship, family hardship, or other similar extenuating circumstances that 
138.9 	preclude completion of the requirements during the licensure period. The request for a 
138.10 	waiver deferral must be in writing, state the circumstances that constitute hardship, state 
138.11 	the period of time the licensee wishes to have the continuing education requirement waived
138.12 	deferred, and state the alternative measures that will be taken if a waiver deferral is granted. 
138.13 	The board must set forth, in writing, the reasons for granting or denying the waiver deferral. 
138.14 	Waivers Deferrals granted by the board must specify, in writing, the time limitation and 
138.15 	required alternative measures to be taken by the licensee. A request for waiver deferral must 
138.16 	be denied if the board finds that the circumstances stated by the licensee do not support a 
138.17 	claim of hardship, the requested time period for waiver deferral is unreasonable, the 
138.18 	alternative measures proposed by the licensee are not equivalent to the continuing education 
138.19 	activity being waived deferred, or the request for waiver deferral is not submitted to the 
138.20 	board within 60 calendar days of the expiration date.

138.21 	Sec. 70. Minnesota Statutes 2024, section 148.6443, subdivision 8, is amended to read:
138.22 		Subd. 8.Penalties for noncompliance. The board shall refuse to renew or grant, or 
138.23 	shall suspend, condition, limit, or otherwise qualify the license of any person who the board 
138.24 	determines has failed to comply with the continuing education requirements of this section. 
138.25 	A licensee may request reconsideration of the board's determination of noncompliance or 
138.26 	the penalty imposed under this section by making a written request to the board within 30 
138.27 	calendar days of the date of notification to the applicant. Individuals requesting 
138.28 	reconsideration may submit information that the licensee wants considered in the 
138.29 	reconsideration.

138.30 	Sec. 71. Minnesota Statutes 2024, section 148.6445, is amended by adding a subdivision 
138.31 	to read:
138.32 		Subd. 5a.Compact privilege fee.  The fee for interstate licensure compact privilege to 
138.33 	practice is $150.

139.1 	Sec. 72. Minnesota Statutes 2024, section 148.6445, is amended by adding a subdivision 
139.2 	to read:
139.3 		Subd. 7a.Active mailing list. The fee for the standard active licensee mailing list 
139.4 	delivered electronically is $500.

139.5 	Sec. 73. Minnesota Statutes 2024, section 148.6448, subdivision 1, is amended to read:
139.6 		Subdivision 1.Grounds for denial of licensure or discipline. The board may deny an 
139.7 	application for licensure, may approve licensure with conditions, or may discipline a licensee 
139.8 	using any disciplinary actions listed in subdivision 3 on proof that the individual has:
139.9 	(1) intentionally submitted false or misleading information to the board;
139.10 	(2) obtained a license by means of fraud, misrepresentation, or concealment of material 
139.11 	facts;
139.12 	(3) failed, within 30 days, to provide information in response to a written request by the 
139.13 	board;
139.14 	(3) (4) performed services of an occupational therapist or occupational therapy assistant
139.15 	practitioner in an incompetent manner or in a manner that falls below the community standard 
139.16 	of care or national practice standards of care;
139.17 	(4) (5) failed to satisfactorily perform occupational therapy services during a period of 
139.18 	temporary licensure;
139.19 	(5) (6) violated sections 148.6401 to 148.6449 148.645;
139.20 	(6) (7) failed to perform services with reasonable judgment, skill, or safety due to the 
139.21 	use of alcohol or drugs, or other physical or mental impairment;
139.22 	(7) (8) been convicted of violating any state or federal law, rule, or regulation which 
139.23 	directly that reasonably relates to the practice of occupational therapy;
139.24 	(9) failed to report other licensees that have violated sections 148.6401 to 148.645;
139.25 	(8) (10) aided or abetted another person in violating any provision of sections 148.6401
139.26 	to 148.6449 148.645;
139.27 	(9) (11) been disciplined for conduct in the practice of an occupation by the state of 
139.28 	Minnesota, another jurisdiction, or a national professional association, if any of the grounds 
139.29 	for discipline are the same or substantially equivalent to those in sections 148.6401 to 
139.30 	148.6449 148.645;
140.1 	(10) (12) not cooperated with the board in an investigation conducted according to 
140.2 	subdivision 2;
140.3 	(11) (13) advertised in a manner that is false or misleading;
140.4 	(12) (14) engaged in dishonest, unethical, or unprofessional conduct in connection with 
140.5 	the practice of occupational therapy that is likely to deceive, defraud, or harm the public;
140.6 	(15) improperly managed client records, including but not limited to failure to maintain 
140.7 	client records in a manner that meets community standards of care or nationally accepted 
140.8 	practice standards;
140.9 	(13)(16) demonstrated a willful or careless disregard for the health, welfare, or safety 
140.10 	of a client;
140.11 	(17) inappropriately supervised or delegated or assigned tasks to an occupational therapy 
140.12 	assistant, occupational therapy student, rehabilitation aide, or other licensed professional;
140.13 	(14) (18) performed medical diagnosis or provided intervention, other than occupational 
140.14 	therapy, without being licensed to do so under the laws of this state;
140.15 	(15) (19) paid or promised to pay a commission or part of a fee to any person who 
140.16 	contacts the occupational therapist therapy practitioner for consultation or sends patients to 
140.17 	the occupational therapist therapy practitioner for intervention;
140.18 	(16) (20) engaged in an incentive payment arrangement, other than that prohibited by 
140.19 	clause (15) (19), that promotes occupational therapy overutilization, whereby the referring 
140.20 	person or person who controls the availability of occupational therapy services to a client 
140.21 	profits unreasonably as a result of client intervention;
140.22 	(17) (21) engaged in abusive or fraudulent billing practices, including violations of 
140.23 	federal Medicare and Medicaid laws, Food and Drug Administration regulations, or state 
140.24 	medical assistance laws;
140.25 	(18) (22) obtained money, property, or services from a consumer through the use of 
140.26 	undue influence, high pressure sales tactics, harassment, duress, deception, or fraud;
140.27 	(19) (23) performed services for a client who had no possibility of benefiting from the 
140.28 	services;
140.29 	(20) (24) failed to refer a client for medical evaluation when appropriate or when a client 
140.30 	indicated symptoms associated with diseases that could be medically or surgically treated;
141.1 	(21) (25) engaged in conduct with a client that is sexual or may reasonably be interpreted 
141.2 	by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning to 
141.3 	a patient;
141.4 	(22) (26) violated a federal or state court order, including a conciliation court judgment, 
141.5 	or a disciplinary order issued by the board, related to the person's occupational therapy 
141.6 	practice; or
141.7 	(23)(27) any other just cause related to the practice of occupational therapy.

141.8 	Sec. 74. Minnesota Statutes 2024, section 148.6448, subdivision 2, is amended to read:
141.9 		Subd. 2.Investigation of complaints. The board may initiate an investigation upon 
141.10 	receiving a complaint or other oral or written communication that alleges or implies that a 
141.11 	person has violated sections 148.6401 to 148.6449 148.645. In the receipt, investigation, 
141.12 	and hearing of a complaint that alleges or implies a person has violated sections 148.6401
141.13 	to 148.6449 148.645, the board must follow the procedures in sections 214.10 and 214.103.

141.14 	Sec. 75. Minnesota Statutes 2024, section 148.6448, subdivision 4, is amended to read:
141.15 		Subd. 4.Effect of specific disciplinary action on use of title. Upon notice from the 
141.16 	board denying licensure renewal or upon notice that disciplinary actions have been imposed 
141.17 	and the person is no longer entitled to practice occupational therapy and use the occupational 
141.18 	therapy and licensed titles, the person shall cease to practice occupational therapy, to use 
141.19 	titles protected by sections 148.6401 to 148.6449 148.645, and to represent to the public 
141.20 	that the person is licensed by the board.

141.21 	Sec. 76. Minnesota Statutes 2024, section 148.6448, subdivision 6, is amended to read:
141.22 		Subd. 6.Authority to contract.  The board shall contract with the health professionals 
141.23 	services program as authorized by sections 214.31 to 214.37 to provide these services to 
141.24 	practitioners under this chapter. The health professionals services program does not affect 
141.25 	the board's authority to discipline violations of sections 148.6401 to 148.6449 148.645.

141.26 	Sec. 77. Minnesota Statutes 2024, section 148.6449, subdivision 1, is amended to read:
141.27 		Subdivision 1.Creation. The Board of Occupational Therapy Practice consists of 11 
141.28 	members appointed by the governor. The members are:
141.29 	(1) five occupational therapists licensed under sections 148.6401 to 148.6449 148.645;
142.1 	(2) three occupational therapy assistants licensed under sections 148.6401 to 148.6449
142.2 	148.645; and
142.3 	(3) three public members, including two members who have received occupational 
142.4 	therapy services or have a family member who has received occupational therapy services, 
142.5 	and one member who is a health care professional or health care provider licensed in 
142.6 	Minnesota.

142.7 	Sec. 78. Minnesota Statutes 2024, section 148.6449, subdivision 2, is amended to read:
142.8 		Subd. 2.Qualifications of board members. (a) The occupational therapy practitioners 
142.9 	appointed to the board must represent a variety of practice areas and settings.
142.10 	(b) At least two occupational therapy practitioners three members of the board must be 
142.11 	employed or reside outside the seven-county metropolitan area.
142.12 	(c) Board members must not serve for more than two full consecutive terms.
142.13 	(d) Interstate licensure compact privilege holders are not eligible to serve on the board.

142.14 	Sec. 79. Minnesota Statutes 2024, section 148.6449, subdivision 7, is amended to read:
142.15 		Subd. 7.Duties of the Board of Occupational Therapy Practice. (a) The board shall:
142.16 	(1) adopt and enforce rules and laws necessary for licensing occupational therapy 
142.17 	practitioners;
142.18 	(2) adopt and enforce rules for regulating the professional conduct of the practice of 
142.19 	occupational therapy;
142.20 	(3) issue licenses to qualified individuals in accordance with sections 148.6401 to 
142.21 	148.6449 148.645;
142.22 	(4) assess and collect fees for the issuance and renewal of licenses;
142.23 	(5) educate the public about the requirements for licensing occupational therapy 
142.24 	practitioners, educate occupational therapy practitioners about the rules of conduct, and 
142.25 	enable the public to file complaints against applicants and licensees who may have violated 
142.26 	sections 148.6401 to 148.6449 148.645; and
142.27 	(6) investigate individuals engaging in practices that violate sections 148.6401 to 
142.28 	148.6449 148.645 and take necessary disciplinary, corrective, or other action according to 
142.29 	section 148.6448.
143.1 	(b) The board may adopt rules necessary to define standards or carry out the provisions 
143.2 	of sections 148.6401 to 148.6449 148.645. Rules shall be adopted according to chapter 14.

143.3 	Sec. 80. Minnesota Statutes 2024, section 148B.53, subdivision 3, is amended to read:
143.4 		Subd. 3.Fee Fees. Nonrefundable fees are as follows:
143.5 	(1) initial license application fee for licensed professional counseling (LPC) - $150;
143.6 	(2) initial license fee for LPC - $250;
143.7 	(3) annual active license renewal fee for LPC - $250 or equivalent;
143.8 	(4) annual inactive license renewal fee for LPC - $125;
143.9 	(5) initial license application fee for licensed professional clinical counseling (LPCC) - 
143.10 	$150;
143.11 	(6) initial license fee for LPCC - $250;
143.12 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
143.13 	(8) annual inactive license renewal fee for LPCC - $125;
143.14 	(9) license renewal late fee - $100 per month or portion thereof;
143.15 	(10) copy of board order or stipulation - $10;
143.16 	(11) certificate of good standing or license verification - $25;
143.17 	(12) duplicate certificate fee - $25;
143.18 	(13) professional firm renewal fee - $25;
143.19 	(14) sponsor application for approval of a continuing education course - $60;
143.20 	(15) initial registration fee - $50;
143.21 	(16) annual registration renewal fee - $25;
143.22 	(17) approved supervisor application processing fee - $30; and
143.23 	(18) temporary license for members of the military - $250; and
143.24 	(19) interstate compact privilege to practice fee - not to exceed $100.

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

144.1 	Sec. 81. Minnesota Statutes 2024, section 148E.180, subdivision 1, is amended to read:
144.2 		Subdivision 1.Application fees. (a) Nonrefundable application fees for licensure may 
144.3 	not exceed the following amounts but may be adjusted lower by board action:
144.4 	(1) for a licensed social worker, $75;
144.5 	(2) for a licensed graduate social worker, $75;
144.6 	(3) for a licensed independent social worker, $75;
144.7 	(4) for a licensed independent clinical social worker, $75;
144.8 	(5) for a temporary license, $50; and
144.9 	(6) for a license by endorsement, $115; and
144.10 	(7) for a compact multistate license, $75.
144.11 	(b) The fee for criminal background checks is the fee charged by the Bureau of Criminal 
144.12 	Apprehension. The criminal background check fee must be included with the application 
144.13 	fee as required according to section 148E.055.

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

144.15 	Sec. 82. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
144.16 	to read:
144.17 		Subd. 2a.Compact multistate license fees. Nonrefundable compact multistate license 
144.18 	fees must not exceed the following amounts but may be adjusted lower by board action:
144.19 	(1) for a licensed social worker, $115;
144.20 	(2) for a licensed graduate social worker, $210;
144.21 	(3) for a licensed independent social worker, $305; and
144.22 	(4) for a licensed independent clinical social worker, $335.

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

144.24 	Sec. 83. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
144.25 	to read:
144.26 		Subd. 3a.Compact multistate renewal fees. Nonrefundable renewal fees for compact 
144.27 	multistate licensure must not exceed the following amounts but may be adjusted lower by 
144.28 	board action:
145.1 	(1) for a licensed social worker, $115;
145.2 	(2) for a licensed graduate social worker, $210;
145.3 	(3) for a licensed independent social worker, $305; and
145.4 	(4) for a licensed independent clinical social worker, $335.

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

145.6 	Sec. 84. Minnesota Statutes 2024, section 148E.180, subdivision 5, is amended to read:
145.7 		Subd. 5.Late fees. Late fees are the following nonrefundable amounts:
145.8 	(1) renewal late fee, one-fourth of the applicable renewal fee specified in subdivision
145.9 	subdivisions 3 and 3a;
145.10 	(2) supervision plan late fee, $40; and
145.11 	(3) license late fee, $100 plus the prorated share of the applicable license fee fees specified 
145.12 	in subdivision subdivisions 2 and 2a for the number of months during which the individual 
145.13 	practiced social work without a license.

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

145.15 	Sec. 85. Minnesota Statutes 2024, section 148E.180, subdivision 7, is amended to read:
145.16 		Subd. 7.Reactivation fees. Reactivation fees are the following nonrefundable amounts:
145.17 	(1) reactivation from a temporary leave or emeritus status, the prorated share of the 
145.18 	renewal fee specified in subdivision 3; and
145.19 	(2) reactivation of an expired license, 1-1/2 times the applicable renewal fees specified 
145.20 	in subdivision subdivisions 3 and 3a.

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

145.22 	Sec. 86. [148G.01] TITLE.
145.23 	This chapter shall be referred to as the Minnesota Certified Midwife Practice Act.

145.24 	Sec. 87. [148G.02] SCOPE.
145.25 	This chapter applies to all applicants and licensees, all persons who use the title certified 
145.26 	midwife, and all persons in or out of this state who provide certified midwifery services to 
145.27 	patients who reside in this state, unless there are specific applicable exemptions provided 
145.28 	by law.

146.1 	Sec. 88. [148G.03] DEFINITIONS.
146.2 		Subdivision 1.Scope. For purposes of this chapter, the definitions in this section have 
146.3 	the meanings given.
146.4 		Subd. 2.Board. "Board" means the Minnesota Board of Nursing.
146.5 		Subd. 3.Certification. "Certification" means the formal recognition by the American 
146.6 	Midwifery Certification Board of the knowledge, skills, and experience demonstrated by 
146.7 	the achievement of standards identified by the American College of Nurse Midwives or any 
146.8 	successor organization.
146.9 		Subd. 4.Certified midwife. "Certified midwife" means an individual who holds a current 
146.10 	and valid national certification as a certified midwife from the American Midwifery 
146.11 	Certification Board or any successor organization and who is licensed by the board under 
146.12 	this chapter.
146.13 		Subd. 5.Certified midwifery practice. "Certified midwifery practice" means:
146.14 	(1) managing, diagnosing, and treating women's primary health care beginning in 
146.15 	adolescence, including pregnancy, childbirth, the postpartum period, care of the newborn, 
146.16 	family planning, partner care management relating to sexual health, and gynecological care 
146.17 	of women;
146.18 	(2) ordering, performing, supervising, and interpreting diagnostic studies within the 
146.19 	scope of certified midwifery practice, excluding:
146.20 	(i) interpreting and performing specialized ultrasound examinations; and
146.21 	(ii) interpreting computed tomography scans, magnetic resonance imaging scans, positron 
146.22 	emission tomography scans, nuclear scans, and mammography;
146.23 	(3) prescribing pharmacologic and nonpharmacologic therapies appropriate to midwifery 
146.24 	practice;
146.25 	(4) consulting with, collaborating with, or referring to other health care providers as 
146.26 	warranted by the needs of the patient; and
146.27 	(5) performing the role of educator in the theory and practice of midwifery.
146.28 		Subd. 6.Collaborating. "Collaborating" means the process in which two or more health 
146.29 	care professionals work together to meet the health care needs of a patient, as warranted by 
146.30 	the needs of the patient.
147.1 		Subd. 7.Consulting. "Consulting" means the process in which a certified midwife who 
147.2 	maintains primary management responsibility for a patient's care seeks advice or opinion 
147.3 	of a physician, an advanced practice registered nurse, or another member of the health care 
147.4 	team.
147.5 		Subd. 8.Encumbered. "Encumbered" means:
147.6 	(1) a license or other credential that is revoked, is suspended, or contains limitations on 
147.7 	the full and unrestricted practice of certified midwifery when the revocation, suspension, 
147.8 	or limitation is imposed by a state licensing board or other state regulatory entity; or
147.9 	(2) a license or other credential that is voluntarily surrendered.
147.10 		Subd. 9.Licensure period. "Licensure period" means the interval of time during which 
147.11 	the certified midwife is authorized to engage in certified midwifery. The initial licensure 
147.12 	period is from six to 29 full calendar months starting on the day of licensure and ending on 
147.13 	the last day of the certified midwife's month of birth in an even-numbered year if the year 
147.14 	of birth is an even-numbered year, or in an odd-numbered year if the year of birth is an 
147.15 	odd-numbered year. Subsequent licensure renewal periods are 24 months. For licensure 
147.16 	renewal, the period starts on the first day of the month following expiration of the previous 
147.17 	licensure period. The period ends the last day of the certified midwife's month of birth in 
147.18 	an even- or odd-numbered year according to the certified midwife's year of birth.
147.19 		Subd. 10.Licensed practitioner. "Licensed practitioner" means a physician licensed 
147.20 	under chapter 147, an advanced practice registered nurse licensed under sections 148.171 
147.21 	to 148.235, or a certified midwife licensed under this chapter.
147.22 		Subd. 11.Midwifery education program. "Midwifery education program" means a 
147.23 	program of theory and practice offered by a university or college that leads to the preparation 
147.24 	and eligibility for certification in midwifery and is accredited by the Accreditation 
147.25 	Commission for Midwifery Education or any successor organization recognized by the 
147.26 	United States Department of Education or the Council for Higher Education Accreditation.
147.27 		Subd. 12.Patient. "Patient" means a recipient of care provided by a certified midwife 
147.28 	within the scope of certified midwifery practice, including an individual, family, group, or 
147.29 	community.
147.30 		Subd. 13.Prescribing. "Prescribing" means the act of generating a prescription for the 
147.31 	preparation of, use of, or manner of using a drug or therapeutic device under section 148G.09. 
147.32 	Prescribing does not include recommending the use of a drug or therapeutic device that is 
148.1 	not required by the federal Food and Drug Administration to meet the labeling requirements 
148.2 	for prescription drugs and devices.
148.3 		Subd. 14.Prescription. "Prescription" means a written direction or an oral direction 
148.4 	reduced to writing provided to or for a patient for the preparation or use of a drug or 
148.5 	therapeutic device. The requirements of section 151.01, subdivisions 16, 16a, and 16b, apply 
148.6 	to prescriptions for drugs.
148.7 		Subd. 15.Referral. "Referral" means the process in which a certified midwife directs 
148.8 	a patient to a physician or another health care professional for management of a particular 
148.9 	problem or aspect of the patient's care.
148.10 		Subd. 16.Supervision. "Supervision" means monitoring and establishing the initial 
148.11 	direction of, setting expectations for, directing activities in, evaluating, and changing a 
148.12 	course of action in certified midwifery care.

148.13 	Sec. 89. [148G.04] CERTIFIED MIDWIFE LICENSING.
148.14 		Subdivision 1.Licensure. (a) No person shall practice as a certified midwife or serve 
148.15 	as the faculty of record for clinical instruction in a midwifery distance learning program 
148.16 	unless the person is licensed by the board under this chapter.
148.17 	(b) An applicant for a license to practice as a certified midwife must apply to the board 
148.18 	in a format prescribed by the board and pay a fee in an amount determined under section 
148.19 	148G.11.
148.20 	(c) To be eligible for licensure, an applicant must:
148.21 	(1) not hold an encumbered license or other credential as a certified midwife or equivalent 
148.22 	professional designation in any state or territory;
148.23 	(2) hold a current and valid certification as a certified midwife from the American 
148.24 	Midwifery Certification Board or any successor organization acceptable to the board and 
148.25 	provide primary source verification of certification to the board in a format prescribed by 
148.26 	the board;
148.27 	(3) have completed a graduate-level midwifery education program that includes clinical 
148.28 	experience, is accredited by the Accreditation Commission for Midwifery Education or any 
148.29 	successor organization recognized by the United States Department of Education or the 
148.30 	Council for Higher Education Accreditation, and leads to a graduate degree. The applicant 
148.31 	must submit primary source verification of program completion to the board in a format 
148.32 	prescribed by the board. The primary source verification must verify the applicant completed 
149.1 	three separate graduate-level courses in physiology and pathophysiology; advanced health 
149.2 	assessment; and advanced pharmacology, including pharmacodynamics, pharmacokinetics, 
149.3 	and pharmacotherapeutics of all broad categories of agents;
149.4 	(4) report any criminal conviction, nolo contendere plea, Alford plea, or other plea 
149.5 	arrangement in lieu of conviction; and
149.6 	(5) not have committed any acts or omissions that are grounds for disciplinary action in 
149.7 	another jurisdiction or, if these acts were committed and would be grounds for disciplinary 
149.8 	action as set forth in section 148G.13, the board has found after an investigation that sufficient 
149.9 	remediation was made.
149.10 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
149.11 	applicant has practiced in the certified midwife role, the applicant must complete a 
149.12 	reorientation plan as a certified midwife. The plan must include supervision during the 
149.13 	clinical component by a licensed practitioner with experience in providing care to patients 
149.14 	with the same or similar health care needs. The applicant must submit the plan and the name 
149.15 	of the practitioner to the board. The plan must include a minimum of 500 hours of supervised 
149.16 	certified midwifery practice. The certified midwife must submit verification of completion 
149.17 	of the clinical reorientation to the board when the reorientation is complete.

149.18 	Sec. 90. [148G.05] LICENSURE RENEWAL; RELICENSURE.
149.19 		Subdivision 1.Renewal; current applicants. (a) A certified midwife must apply for 
149.20 	renewal of the certified midwife's license before the certified midwife's licensure period 
149.21 	ends. To be considered timely, the board must receive the certified midwife's application 
149.22 	on or before the last day of the certified midwife's licensure period. A certified midwife's 
149.23 	license lapses if the certified midwife's application is untimely.
149.24 	(b) An applicant for license renewal must provide the board evidence of current 
149.25 	certification or recertification as a certified midwife by the American Midwifery Certification 
149.26 	Board or any successor organization.
149.27 	(c) An applicant for license renewal must submit to the board the fee under section 
149.28 	148G.11, subdivision 2.
149.29 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
149.30 	applicant has practiced as a certified midwife, the applicant must complete a reorientation 
149.31 	plan as a certified midwife. The plan must include supervision during the clinical component 
149.32 	by a licensed practitioner with experience in providing care to patients with the same or 
149.33 	similar health care needs. The licensee must submit the plan and the name of the practitioner 
150.1 	to the board. The plan must include a minimum of 500 hours of supervised certified 
150.2 	midwifery practice. The certified midwife must submit verification of completion of the 
150.3 	clinical reorientation to the board when the reorientation is complete.
150.4 		Subd. 3.Relicensure; lapsed applicants. A person whose license has lapsed who desires 
150.5 	to resume practice as a certified midwife must apply for relicensure, submit to the board 
150.6 	satisfactory evidence of compliance with the procedures and requirements established by 
150.7 	the board, and pay the board the relicensure fee under section 148G.11, subdivision 4, for 
150.8 	the current licensure period. A penalty fee under section 148G.11, subdivision 4, is required 
150.9 	from a person who practiced certified midwifery without current licensure. The board must 
150.10 	relicense a person who meets the requirements of this subdivision.

150.11 	Sec. 91. [148G.06] FAILURE OR REFUSAL TO PROVIDE INFORMATION.
150.12 		Subdivision 1.Notification requirement. An individual licensed as a certified midwife 
150.13 	must notify the board when the individual renews their certification. If a licensee fails to 
150.14 	provide notification, the licensee is prohibited from practicing as a certified midwife.
150.15 		Subd. 2.Denial of license. Refusal of an applicant to supply information necessary to 
150.16 	determine the applicant's qualifications, failure to demonstrate qualifications, or failure to 
150.17 	satisfy the requirements for a license contained in this chapter or rules of the board may 
150.18 	result in denial of a license. The burden of proof is upon the applicant to demonstrate the 
150.19 	qualifications and satisfaction of the requirements.

150.20 	Sec. 92. [148G.07] NAME CHANGE AND CHANGE OF ADDRESS.
150.21 	A certified midwife must maintain a current name and address with the board and must 
150.22 	notify the board in writing within 30 days of any change in name or address. All notices or 
150.23 	other correspondence mailed to or served upon a certified midwife by the board at the 
150.24 	licensee's address on file with the board are considered received by the licensee.

150.25 	Sec. 93. [148G.08] IDENTIFICATION OF CERTIFIED MIDWIVES.
150.26 	Only those persons who hold a current license to practice certified midwifery in 
150.27 	Minnesota may use the title of certified midwife. A certified midwife licensed by the board 
150.28 	must use the designation of "CM" for professional identification and in documentation of 
150.29 	services provided.

151.1 	Sec. 94. [148G.09] PRESCRIBING DRUGS AND THERAPEUTIC DEVICES.
151.2 		Subdivision 1.Diagnosing, prescribing, and ordering. Certified midwives, within the 
151.3 	scope of certified midwifery practice, are authorized to:
151.4 	(1) diagnose, prescribe, and institute therapy or referrals of patients to health care agencies 
151.5 	and providers;
151.6 	(2) prescribe, procure, sign for, record, administer, and dispense over-the-counter, legend, 
151.7 	and controlled substances, including sample drugs; and
151.8 	(3) plan and initiate a therapeutic regimen that includes ordering and prescribing durable 
151.9 	medical devices and equipment, nutrition, diagnostic services, and supportive services, 
151.10 	including but not limited to home health care, physical therapy, and occupational therapy.
151.11 		Subd. 2.Drug Enforcement Administration requirements. (a) Certified midwives 
151.12 	must:
151.13 	(1) comply with federal Drug Enforcement Administration (DEA) requirements related 
151.14 	to controlled substances; and
151.15 	(2) file the certified midwife's DEA registrations and numbers, if any, with the board.
151.16 	(b) The board must maintain current records of all certified midwives with a DEA 
151.17 	registration and number.

151.18 	Sec. 95. [148G.10] FEES.
151.19 	The fees specified in section 148G.11 are nonrefundable and must be deposited in the 
151.20 	state government special revenue fund.

151.21 	Sec. 96. [148G.11] FEE AMOUNTS.
151.22 		Subdivision 1.Licensure. The fee for licensure is $105.
151.23 		Subd. 2.Renewal. The fee for licensure renewal is $85.
151.24 		Subd. 3.Practicing without current certification. The penalty fee for a person who 
151.25 	practices certified midwifery without a current certification or recertification, or who practices 
151.26 	certified midwifery without current certification or recertification on file with the board, is 
151.27 	$200 for the first month or part of a month and an additional $100 for each subsequent 
151.28 	month or parts of months of practice. The penalty fee must be calculated from the first day 
151.29 	the certified midwife practiced without a current certification to the last day of practice 
151.30 	without a current certification, or from the first day the certified midwife practiced without 
152.1 	a current certification or recertification on file with the board until the day the current 
152.2 	certification or recertification is filed with the board.
152.3 		Subd. 4.Relicensure. The fee for relicensure is $105. The fee for practicing without 
152.4 	current licensure is two times the amount of the current renewal fee for any part of the first 
152.5 	calendar month, plus the current renewal fee for any part of each subsequent month up to 
152.6 	24 months.
152.7 		Subd. 5.Dishonored check fee. The service fee for a dishonored check is as provided 
152.8 	in section 604.113.

152.9 	Sec. 97. [148G.12] APPROVED MIDWIFERY EDUCATION PROGRAM.
152.10 		Subdivision 1.Initial approval. A university or college desiring to conduct a certified 
152.11 	midwifery education program must submit evidence to the board that the university or 
152.12 	college is prepared to:
152.13 	(1) provide a program of theory and practice in certified midwifery leading to eligibility 
152.14 	for certification in midwifery;
152.15 	(2) achieve preaccreditation and eventual full accreditation by the American Commission 
152.16 	for Midwifery Education or any successor organization recognized by the United States 
152.17 	Department of Education or the Council for Higher Education Accreditation. Instruction 
152.18 	and required experience may be obtained in one or more institutions or agencies outside 
152.19 	the applying university or college if the program retains accountability for all clinical and 
152.20 	nonclinical teaching; and
152.21 	(3) meet other standards established by law and by the board.
152.22 		Subd. 2.Continuing approval. The board must, through the board's representative, 
152.23 	annually survey all midwifery education programs in Minnesota for current accreditation 
152.24 	status by the American Commission for Midwifery Education or any successor organization 
152.25 	recognized by the United States Department of Education or the Council for Higher Education 
152.26 	Accreditation. If the results of the survey show that a certified midwifery education program 
152.27 	meets all standards for continuing accreditation, the board must continue approval of the 
152.28 	certified midwifery education program.
152.29 		Subd. 3.Loss of approval. If the board determines that an accredited certified midwifery 
152.30 	education program is not maintaining the standards required by the American Commission 
152.31 	on Midwifery Education or any successor organization, the board must obtain the defect in 
152.32 	writing from the accrediting body. If a program fails to correct the defect to the satisfaction 
152.33 	of the accrediting body and the accrediting body revokes the program's accreditation, the 
153.1 	board must remove the program from the list of approved certified midwifery education 
153.2 	programs.
153.3 		Subd. 4.Reinstatement of approval. The board must reinstate approval of a certified 
153.4 	midwifery education program upon submission of satisfactory evidence that the certified 
153.5 	midwifery education program of theory and practice meets the standards required by the 
153.6 	accrediting body.

153.7 	Sec. 98. [148G.13] GROUNDS FOR DISCIPLINARY ACTION.
153.8 		Subdivision 1.Grounds listed. The board may deny, revoke, suspend, limit, or condition 
153.9 	the license of any person to practice certified midwifery under this chapter or otherwise 
153.10 	discipline a licensee or applicant as described in section 148G.14. The following are grounds 
153.11 	for disciplinary action:
153.12 	(1) failure to demonstrate the qualifications or satisfy the requirements for a license 
153.13 	contained in this chapter or rules of the board. In the case of an applicant for licensure, the 
153.14 	burden of proof is upon the applicant to demonstrate the qualifications or satisfaction of the 
153.15 	requirements;
153.16 	(2) employing fraud or deceit in procuring or attempting to procure a license to practice 
153.17 	certified midwifery;
153.18 	(3) conviction of a felony or gross misdemeanor reasonably related to the practice of 
153.19 	certified midwifery. Conviction, as used in this subdivision, includes a conviction of an 
153.20 	offense that if committed in this state would be considered a felony or gross misdemeanor 
153.21 	without regard to its designation elsewhere, or a criminal proceeding where a finding or 
153.22 	verdict of guilt is made or returned, but the adjudication of guilt is either withheld or not 
153.23 	entered;
153.24 	(4) revocation, suspension, limitation, conditioning, or other disciplinary action against 
153.25 	the person's certified midwife credential in another state, territory, or country; failure to 
153.26 	report to the board that charges regarding the person's certified midwifery license, 
153.27 	certification, or other credential are pending in another state, territory, or country; or failure 
153.28 	to report to the board having been refused a license or other credential by another state, 
153.29 	territory, or country;
153.30 	(5) failure or inability to practice as a certified midwife with reasonable skill and safety, 
153.31 	or departure from or failure to conform to standards of acceptable and prevailing certified 
153.32 	midwifery practice, including failure of a certified midwife to adequately supervise or 
153.33 	monitor the performance of acts by any person working at the certified midwife's direction;
154.1 	(6) engaging in unprofessional conduct, including but not limited to a departure from 
154.2 	or failure to conform to statutes relating to certified midwifery practice or to the minimal 
154.3 	standards of acceptable and prevailing certified midwifery practice, or engaging in any 
154.4 	certified midwifery practice that may create unnecessary danger to a patient's life, health, 
154.5 	or safety. Actual injury to a patient need not be established under this clause;
154.6 	(7) supervision or accepting the supervision of a midwifery function or a prescribed 
154.7 	health care function when the acceptance could reasonably be expected to result in unsafe 
154.8 	or ineffective patient care;
154.9 	(8) actual or potential inability to practice certified midwifery with reasonable skill and 
154.10 	safety to patients by reason of illness; by the reason of use of alcohol, drugs, chemicals, or 
154.11 	any other material; or as a result of any mental or physical condition;
154.12 	(9) adjudication as mentally incompetent, mentally ill, a chemically dependent person, 
154.13 	or a person dangerous to the public by a court of competent jurisdiction, within or outside 
154.14 	of Minnesota;
154.15 	(10) engaging in any unethical conduct, including but not limited to conduct likely to 
154.16 	deceive, defraud, or harm the public, or demonstrating a willful or careless disregard for 
154.17 	the health, welfare, or safety of a patient. Actual injury need not be established under this 
154.18 	clause;
154.19 	(11) engaging in conduct with a patient that is sexual or may reasonably be interpreted 
154.20 	by the patient as sexual, in any verbal behavior that is seductive or sexually demeaning to 
154.21 	a patient, or in sexual exploitation of a patient or former patient;
154.22 	(12) obtaining money, property, or services from a patient, other than reasonable fees 
154.23 	for services provided to the patient, through the use of undue influence, harassment, duress, 
154.24 	deception, or fraud;
154.25 	(13) revealing a privileged communication from or relating to a patient except when 
154.26 	otherwise required or permitted by law;
154.27 	(14) engaging in abusive or fraudulent billing practices, including violations of federal 
154.28 	Medicare and Medicaid laws or state medical assistance laws;
154.29 	(15) improper management of patient records, including failure to maintain adequate 
154.30 	patient records, to comply with a patient's request made pursuant to sections 144.291 to 
154.31 	144.298, or to furnish a patient record or report required by law;
154.32 	(16) knowingly aiding, assisting, advising, or allowing an unlicensed person to engage 
154.33 	in the unlawful practice of certified midwifery;
155.1 	(17) violating a rule adopted by the board, an order of the board, a state or federal law 
155.2 	relating to the practice of certified midwifery, or a state or federal narcotics or controlled 
155.3 	substance law;
155.4 	(18) knowingly providing false or misleading information to a patient that is directly 
155.5 	related to the care of that patient unless done for an accepted therapeutic purpose such as 
155.6 	the administration of a placebo;
155.7 	(19) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
155.8 	established by any of the following:
155.9 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
155.10 	of section 609.215, subdivision 1 or 2;
155.11 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
155.12 	issued under section 609.215, subdivision 4;
155.13 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
155.14 	subdivision 5; or
155.15 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
155.16 	The board must investigate any complaint of a violation of section 609.215, subdivision 1 
155.17 	or 2;
155.18 	(20) practicing outside the scope of certified midwifery practice as defined under section 
155.19 	148G.03, subdivision 5;
155.20 	(21) making a false statement or knowingly providing false information to the board, 
155.21 	failing to make reports as required by section 148G.15, or failing to cooperate with an 
155.22 	investigation of the board as required by section 148G.17;
155.23 	(22) engaging in false, fraudulent, deceptive, or misleading advertising;
155.24 	(23) failure to inform the board of the person's certification or recertification status as 
155.25 	a certified midwife;
155.26 	(24) engaging in certified midwifery practice without a license and current certification 
155.27 	or recertification by the American Midwifery Certification Board or any successor 
155.28 	organization; or
155.29 	(25) failure to maintain appropriate professional boundaries with a patient. A certified 
155.30 	midwife must not engage in practices that create an unacceptable risk of patient harm or of 
155.31 	the impairment of a certified midwife's objectivity or professional judgment. A certified 
155.32 	midwife must not act or fail to act in a way that, as judged by a reasonable and prudent 
156.1 	certified midwife, inappropriately encourages the patient to relate to the certified midwife 
156.2 	outside of the boundaries of the professional relationship or in a way that interferes with 
156.3 	the patient's ability to benefit from certified midwife services. A certified midwife must not 
156.4 	use the professional relationship with a patient, student, supervisee, or intern to further the 
156.5 	certified midwife's personal, emotional, financial, sexual, religious, political, or business 
156.6 	benefit or interests.
156.7 		Subd. 2.Conviction of a felony-level criminal sexual offense. (a) Except as provided 
156.8 	in paragraph (e), the board must not grant or renew a license to practice certified midwifery 
156.9 	to any person who has been convicted on or after August 1, 2014, of any of the provisions 
156.10 	of section 609.342, subdivision 1 or 1a; 609.343, subdivision 1 or 1a; 609.344, subdivision 
156.11 	1 or 1a, paragraphs (c) to (g); or 609.345, subdivision 1 or 1a, paragraphs (c) to (g); or a 
156.12 	similar statute in another jurisdiction.
156.13 	(b) A license to practice certified midwifery is automatically revoked if the licensee is 
156.14 	convicted of an offense listed in paragraph (a).
156.15 	(c) A license to practice certified midwifery that has been denied or revoked under this 
156.16 	subdivision is not subject to chapter 364.
156.17 	(d) For purposes of this subdivision, "conviction" means a plea of guilty, a verdict of 
156.18 	guilty by a jury, or a finding of guilty by the court, unless the court stays imposition or 
156.19 	execution of the sentence and final disposition of the case is accomplished at a nonfelony 
156.20 	level.
156.21 	(e) The board may establish criteria whereby an individual convicted of an offense listed 
156.22 	in paragraph (a) may become licensed if the criteria:
156.23 	(1) utilize a rebuttable presumption that the applicant is not suitable for licensing;
156.24 	(2) provide a standard for overcoming the presumption; and
156.25 	(3) require that a minimum of ten years has elapsed since the applicant's sentence was 
156.26 	discharged.
156.27 	(f) The board must not consider an application under paragraph (e) if the board determines 
156.28 	that the victim involved in the offense was a patient or a client of the applicant at the time 
156.29 	of the offense.
156.30 		Subd. 3.Evidence. In disciplinary actions alleging a violation of subdivision 1, clause 
156.31 	(3) or (4), or 2, a copy of the judgment or proceeding under the seal of the court administrator 
156.32 	or of the administrative agency that entered the same is admissible into evidence without 
156.33 	further authentication and constitutes prima facie evidence of the violation concerned.
157.1 		Subd. 4.Examination; access to medical data. (a) If the board has probable cause to 
157.2 	believe that grounds for disciplinary action exist under subdivision 1, clause (8) or (9), it 
157.3 	may direct the applicant or certified midwife to submit to a mental or physical examination 
157.4 	or chemical dependency evaluation. For the purpose of this subdivision, when a certified 
157.5 	midwife licensed under this chapter is directed in writing by the board to submit to a mental 
157.6 	or physical examination or chemical dependency evaluation, that person is considered to 
157.7 	have consented and to have waived all objections to admissibility on the grounds of privilege. 
157.8 	Failure of the applicant or certified midwife to submit to an examination when directed 
157.9 	constitutes an admission of the allegations against the applicant or certified midwife, unless 
157.10 	the failure was due to circumstances beyond the person's control, and the board may enter 
157.11 	a default and final order without taking testimony or allowing evidence to be presented. A 
157.12 	certified midwife affected under this paragraph must, at reasonable intervals, be given an 
157.13 	opportunity to demonstrate that the competent practice of certified midwifery can be resumed 
157.14 	with reasonable skill and safety to patients. Neither the record of proceedings nor the orders 
157.15 	entered by the board in a proceeding under this paragraph may be used against a certified 
157.16 	midwife in any other proceeding.
157.17 	(b) Notwithstanding sections 13.384, 144.651, and 595.02, or any other law limiting 
157.18 	access to medical or other health data, the board may obtain medical data and health records 
157.19 	relating to a certified midwife or applicant for a license without that person's consent if the 
157.20 	board has probable cause to believe that grounds for disciplinary action exist under 
157.21 	subdivision 1, clause (8) or (9). The medical data may be requested from a provider, as 
157.22 	defined in section 144.291, subdivision 2; an insurance company; or a government agency, 
157.23 	including the Department of Human Services or Direct Care and Treatment. A provider, 
157.24 	insurance company, or government agency must comply with any written request of the 
157.25 	board under this subdivision and is not liable in any action for damages for releasing the 
157.26 	data requested by the board if the data are released pursuant to a written request under this 
157.27 	subdivision, unless the information is false and the provider giving the information knew 
157.28 	or had reason to believe the information was false. Information obtained under this 
157.29 	subdivision is classified as private data on individuals as defined in section 13.02.

157.30 	Sec. 99. [148G.14] FORMS OF DISCIPLINARY ACTION; AUTOMATIC 
157.31 	SUSPENSION; TEMPORARY SUSPENSION; REISSUANCE.
157.32 		Subdivision 1.Forms of disciplinary action. If the board finds that grounds for 
157.33 	disciplinary action exist under section 148G.13, it may take one or more of the following 
157.34 	actions:
158.1 	(1) deny the license application or application for license renewal;
158.2 	(2) revoke the license;
158.3 	(3) suspend the license;
158.4 	(4) impose limitations on the certified midwife's practice of certified midwifery, including 
158.5 	but not limited to limitation of scope of practice or the requirement of practice under 
158.6 	supervision;
158.7 	(5) impose conditions on the retention of the license, including but not limited to the 
158.8 	imposition of retraining or rehabilitation requirements or the conditioning of continued 
158.9 	practice on demonstration of knowledge or skills by appropriate examination, monitoring, 
158.10 	or other review;
158.11 	(6) impose a civil penalty not exceeding $10,000 for each separate violation. The amount 
158.12 	of the civil penalty must be fixed so as to deprive the certified midwife of any economic 
158.13 	advantage gained by reason of the violation charged; to reimburse the board for the cost of 
158.14 	counsel, investigation, and proceeding; and to discourage repeated violations;
158.15 	(7) order the certified midwife to provide unremunerated service;
158.16 	(8) censure or reprimand the certified midwife; or
158.17 	(9) any other action justified by the facts in the case.
158.18 		Subd. 2.Automatic suspension of license. (a) Unless the board orders otherwise, a 
158.19 	license to practice certified midwifery is automatically suspended if:
158.20 	(1) a guardian of a certified midwife is appointed by order of a court under sections 
158.21 	524.5-101 to 524.5-502;
158.22 	(2) the certified midwife is committed by order of a court under chapter 253B; or
158.23 	(3) the certified midwife is determined to be mentally incompetent, mentally ill, 
158.24 	chemically dependent, or a person dangerous to the public by a court of competent 
158.25 	jurisdiction within or outside of Minnesota.
158.26 	(b) The license remains suspended until the certified midwife is restored to capacity by 
158.27 	a court and, upon petition by the certified midwife, the suspension is terminated by the 
158.28 	board after a hearing or upon agreement between the board and the certified midwife.
158.29 		Subd. 3.Temporary suspension of license. In addition to any other remedy provided 
158.30 	by law, the board may, through its designated board member under section 214.10, 
158.31 	subdivision 2, temporarily suspend the license of a certified midwife without a hearing if 
159.1 	the board finds that there is probable cause to believe the certified midwife has violated a 
159.2 	statute or rule the board is empowered to enforce and continued practice by the certified 
159.3 	midwife would create a serious risk of harm to others. The suspension takes effect upon 
159.4 	written notice to the certified midwife, served by first-class mail, specifying the statute or 
159.5 	rule violated. The suspension must remain in effect until the board issues a temporary stay 
159.6 	of suspension or a final order in the matter after a hearing or upon agreement between the 
159.7 	board and the certified midwife. At the time it issues the suspension notice, the board must 
159.8 	schedule a disciplinary hearing to be held under the Administrative Procedure Act. The 
159.9 	board must provide the certified midwife at least 20 days' notice of any hearing held under 
159.10 	this subdivision. The board must schedule the hearing to begin no later than 30 days after 
159.11 	the issuance of the suspension order.
159.12 		Subd. 4.Reissuance. The board may reinstate and reissue a license to practice certified 
159.13 	midwifery, but as a condition may impose any disciplinary or corrective measure that it 
159.14 	might originally have imposed. Any person whose license has been revoked, suspended, or 
159.15 	limited may have the license reinstated and a new license issued when, at the discretion of 
159.16 	the board, the action is warranted, provided that the board must require the person to pay 
159.17 	the costs of the proceedings resulting in the revocation, suspension, or limitation of the 
159.18 	license; the relicensure fee; and the fee for the current licensure period. The cost of 
159.19 	proceedings includes but is not limited to the cost paid by the board to the Office of 
159.20 	Administrative Hearings and the Office of the Attorney General for legal and investigative 
159.21 	services; the costs of a court reporter and witnesses, reproduction of records, board staff 
159.22 	time, travel, and expenses; and the costs of board members' per diem reimbursements, travel 
159.23 	costs, and expenses.

159.24 	Sec. 100. [148G.15] REPORTING OBLIGATIONS.
159.25 		Subdivision 1.Permission to report. A person who has knowledge of any conduct 
159.26 	constituting grounds for discipline under section 148G.13 may report the alleged violation 
159.27 	to the board.
159.28 		Subd. 2.Institutions. The chief nursing executive or chief administrative officer of any 
159.29 	hospital, clinic, prepaid medical plan, or other health care institution or organization located 
159.30 	in Minnesota must report to the board any action taken by the institution or organization or 
159.31 	any of its administrators or committees to revoke, suspend, limit, or condition a certified 
159.32 	midwife's privilege to practice in the institution or as part of the organization, any denial of 
159.33 	privileges, any dismissal from employment, or any other disciplinary action. The institution 
159.34 	or organization must also report the resignation of any certified midwife before the conclusion 
160.1 	of any disciplinary proceeding or before commencement of formal charges, but after the 
160.2 	certified midwife had knowledge that formal charges were contemplated or in preparation. 
160.3 	The reporting described by this subdivision is required only if the action pertains to grounds 
160.4 	for disciplinary action under section 148G.13.
160.5 		Subd. 3.Licensed professionals. A person licensed by a health-related licensing board 
160.6 	as defined in section 214.01, subdivision 2, must report to the board personal knowledge 
160.7 	of any conduct the person reasonably believes constitutes grounds for disciplinary action 
160.8 	under section 148G.13 by any certified midwife, including conduct indicating that the 
160.9 	certified midwife may be incompetent, may have engaged in unprofessional or unethical 
160.10 	conduct, or may be mentally or physically unable to engage safely in the practice of certified 
160.11 	midwifery.
160.12 		Subd. 4.Insurers. (a) By the first day of February, May, August, and November each 
160.13 	year, each insurer authorized to sell insurance described in section 60A.06, subdivision 1, 
160.14 	clause (13), and providing professional liability insurance to certified midwives must submit 
160.15 	to the board a report concerning any certified midwife against whom a malpractice award 
160.16 	has been made or who has been a party to a settlement. The report must contain at least the 
160.17 	following information:
160.18 	(1) the total number of settlements or awards;
160.19 	(2) the date a settlement or award was made;
160.20 	(3) the allegations contained in the claim or complaint leading to the settlement or award;
160.21 	(4) the dollar amount of each malpractice settlement or award and whether that amount 
160.22 	was paid as a result of a settlement or of an award; and
160.23 	(5) the name and address of the practice of the certified midwife against whom an award 
160.24 	was made or with whom a settlement was made.
160.25 	(b) An insurer must also report to the board any information it possesses that tends to 
160.26 	substantiate a charge that a certified midwife may have engaged in conduct in violation of 
160.27 	this chapter.
160.28 		Subd. 5.Courts. The court administrator of district court or another court of competent 
160.29 	jurisdiction must report to the board any judgment or other determination of the court that 
160.30 	adjudges or includes a finding that a certified midwife is a person who is mentally ill, 
160.31 	mentally incompetent, chemically dependent, dangerous to the public, guilty of a felony or 
160.32 	gross misdemeanor, guilty of a violation of federal or state narcotics laws or controlled 
160.33 	substances act, guilty of operating a motor vehicle while under the influence of alcohol or 
161.1 	a controlled substance, or guilty of an abuse or fraud under Medicare or Medicaid; or if the 
161.2 	court appoints a guardian of the certified midwife under sections 524.5-101 to 524.5-502 
161.3 	or commits a certified midwife under chapter 253B.
161.4 		Subd. 6.Deadlines; forms. Reports required by subdivisions 2, 3, and 5 must be 
161.5 	submitted no later than 30 days after the occurrence of the reportable event or transaction. 
161.6 	The board may provide forms for the submission of reports required under this section, may 
161.7 	require that the reports be submitted on the forms provided, and may adopt rules necessary 
161.8 	to ensure prompt and accurate reporting. The board must review all reports, including those 
161.9 	submitted after the deadline.
161.10 		Subd. 7.Failure to report. Any person, institution, insurer, or organization that fails to 
161.11 	report as required under subdivisions 2 to 6 is subject to civil penalties for failing to report 
161.12 	as required by law.

161.13 	Sec. 101. [148G.16] IMMUNITY.
161.14 		Subdivision 1.Reporting. Any person, health care facility, business, or organization is 
161.15 	immune from civil liability and criminal prosecution for submitting in good faith a report 
161.16 	to the board under section 148G.15 or for otherwise reporting in good faith to the board 
161.17 	violations or alleged violations of this chapter. All such reports are investigative data as 
161.18 	defined in chapter 13.
161.19 		Subd. 2.Investigation. (a) Members of the board, persons employed by the board or 
161.20 	engaged in the investigation of violations and in the preparation and management of charges 
161.21 	of violations of this chapter on behalf of the board, or persons participating in the 
161.22 	investigation or testifying regarding charges of violations are immune from civil liability 
161.23 	and criminal prosecution for any actions, transactions, or publications in the execution of, 
161.24 	or relating to, their duties under this chapter.
161.25 	(b) Members of the board and persons employed by the board or engaged in maintaining 
161.26 	records and making reports regarding adverse health care events are immune from civil 
161.27 	liability and criminal prosecution for any actions, transactions, or publications in the 
161.28 	execution of, or relating to, their duties under this chapter.

161.29 	Sec. 102. [148G.17] CERTIFIED MIDWIFE COOPERATION.
161.30 	A certified midwife who is the subject of an investigation by or on behalf of the board 
161.31 	must cooperate fully with the investigation. Cooperation includes responding fully and 
161.32 	promptly to any question raised by or on behalf of the board relating to the subject of the 
162.1 	investigation and providing copies of patient or other records in the certified midwife's 
162.2 	possession, as reasonably requested by the board, to assist the board in its investigation and 
162.3 	to appear at conferences and hearings scheduled by the board. The board must pay for copies 
162.4 	requested. If the board does not have written consent from a patient permitting access to 
162.5 	the patient's records, the certified midwife must delete any data in the record that identify 
162.6 	the patient before providing it to the board. The board must maintain any records obtained 
162.7 	pursuant to this section as investigative data under chapter 13. The certified midwife must 
162.8 	not be excused from giving testimony or producing any documents, books, records, or 
162.9 	correspondence on the grounds of self-incrimination, but the testimony or evidence must 
162.10 	not be used against the certified midwife in any criminal case.

162.11 	Sec. 103. [148G.18] DISCIPLINARY RECORD ON JUDICIAL REVIEW.
162.12 	Upon judicial review of any board disciplinary action taken under this chapter, the 
162.13 	reviewing court must seal the administrative record, except for the board's final decision, 
162.14 	and must not make the administrative record available to the public.

162.15 	Sec. 104. [148G.19] EXEMPTIONS.
162.16 	The provisions of this chapter do not prohibit:
162.17 	(1) the furnishing of certified midwifery assistance in an emergency;
162.18 	(2) the practice of certified midwifery by any legally qualified certified midwife of 
162.19 	another state who is employed by the United States government or any bureau, division, or 
162.20 	agency thereof while in the discharge of official duties;
162.21 	(3) the practice of any profession or occupation licensed by Minnesota, other than 
162.22 	certified midwifery, by any person licensed to practice the profession or occupation, or the 
162.23 	performance by a person of any acts properly coming within the scope of the profession, 
162.24 	occupation, or license;
162.25 	(4) the practice of traditional midwifery as specified under section 147D.03;
162.26 	(5) certified midwifery practice by a student practicing under the supervision of an 
162.27 	instructor while the student is enrolled in an approved certified midwifery education program; 
162.28 	or
162.29 	(6) certified midwifery practice by a certified midwife licensed in another state, territory, 
162.30 	or jurisdiction who is in Minnesota temporarily:
162.31 	(i) providing continuing or in-service education;
163.1 	(ii) serving as a guest lecturer;
163.2 	(iii) presenting at a conference; or
163.3 	(iv) teaching didactic content via distance education to a student located in Minnesota 
163.4 	who is enrolled in a formal, structured course of study, such as a course leading to a higher 
163.5 	degree in midwifery.

163.6 	Sec. 105. [148G.20] VIOLATIONS; PENALTY.
163.7 		Subdivision 1.Violations described. It is unlawful for any person, corporation, firm, 
163.8 	or association to:
163.9 	(1) sell or fraudulently obtain or furnish any certified midwifery diploma, license, or 
163.10 	record, or aid or abet therein;
163.11 	(2) practice certified midwifery under cover of any diploma, permit, license, certified 
163.12 	midwife credential, or record illegally or fraudulently obtained or signed or issued unlawfully 
163.13 	or under fraudulent representation;
163.14 	(3) practice certified midwifery unless the person is licensed to do so under this chapter;
163.15 	(4) use the professional title certified midwife or licensed certified midwife unless 
163.16 	licensed to practice certified midwifery under this chapter;
163.17 	(5) use any abbreviation or other designation tending to imply licensure as a certified 
163.18 	midwife unless licensed to practice certified midwifery under this chapter;
163.19 	(6) practice certified midwifery in a manner prohibited by the board in any limitation 
163.20 	of a license issued under this chapter;
163.21 	(7) practice certified midwifery during the time a license issued under this chapter is 
163.22 	suspended or revoked;
163.23 	(8) knowingly employ persons in the practice of certified midwifery who have not been 
163.24 	issued a current license to practice as a certified midwife in this state; or
163.25 	(9) conduct a certified midwifery program for the education of persons to become certified 
163.26 	midwives unless the program has been approved by the board.
163.27 		Subd. 2.Penalty. Any person, corporation, firm, or association violating any provision 
163.28 	of subdivision 1 is guilty of a gross misdemeanor and must be punished according to law.
163.29 		Subd. 3.Penalty; certified midwives. In addition to subdivision 2, a person who practices 
163.30 	certified midwifery without a current license and certification or recertification, or without 
164.1 	current certification or recertification on file with the board, is subject to the applicable 
164.2 	penalties in section 148G.11.

164.3 	Sec. 106. [148G.21] UNAUTHORIZED PRACTICE OF MIDWIFERY.
164.4 	The practice of certified midwifery by any person who is not licensed to practice certified 
164.5 	midwifery under this chapter, whose license has been suspended or revoked, or whose 
164.6 	national certification credential has expired is inimical to the public health and welfare and 
164.7 	constitutes a public nuisance. Upon a complaint being made by the board or any prosecuting 
164.8 	officer and upon a proper showing of the facts, the district court of the county where the 
164.9 	practice occurred may enjoin such acts and practice. The injunction proceeding is in addition 
164.10 	to, and not in lieu of, all other penalties and remedies provided by law.

164.11 	Sec. 107. Minnesota Statutes 2024, section 150A.105, is amended by adding a subdivision 
164.12 	to read:
164.13 		Subd. 3a.Collaborative management agreement under armed forces. (a) While 
164.14 	practicing under the auspices of the Minnesota National Guard or any branch of the armed 
164.15 	forces, including the Navy, Marines, Army, Coast Guard, or Space Force, the collaborating 
164.16 	dentist may be determined by the command structure of the armed service for which the 
164.17 	dental therapist is a member assigned or contracted.
164.18 	(b) A collaborating dentist for a dental therapist when in civilian practice will not be 
164.19 	responsible for supervising the dental services performed by the dental therapist while the 
164.20 	dental therapist is practicing under the auspices of the armed forces.

164.21 	Sec. 108. Minnesota Statutes 2024, section 151.01, subdivision 15, is amended to read:
164.22 		Subd. 15.Pharmacist intern or intern.  "Pharmacist intern" or "intern" means:
164.23 	(1) a natural person who has completed college or school of pharmacy orientation or is 
164.24 	otherwise enrolled in a doctor of pharmacy program accredited by the Accreditation Council 
164.25 	for Pharmacy Education (ACPE) and is satisfactorily progressing toward the degree in 
164.26 	pharmacy required for licensure, or;
164.27 	(2) a graduate of the University of Minnesota College of Pharmacy, or other pharmacy 
164.28 	college approved by the board, a doctor of pharmacy program accredited by ACPE who is 
164.29 	registered by the Board of Pharmacy for the purpose of obtaining practical experience as a 
164.30 	requirement for licensure as a pharmacist, or;
164.31 	(3) a qualified applicant awaiting examination for licensure.;
165.1 	(4) a participant in a residency or fellowship program who is not licensed to practice 
165.2 	pharmacy in Minnesota but is:
165.3 	(i) licensed to practice pharmacy in another state; or
165.4 	(ii) a graduate of a doctor of pharmacy program accredited by ACPE and not registered 
165.5 	by the board under clause (2); or
165.6 	(5) a foreign pharmacy graduate who:
165.7 	(i) has passed the Foreign Pharmacy Graduate Equivalency Examination;
165.8 	(ii) is certified by the Foreign Pharmacy Graduate Equivalency Commission; and
165.9 	(iii) is seeking internship experience in accordance with Minnesota Rules, part 6800.1250.

165.10 	Sec. 109. Minnesota Statutes 2024, section 151.01, subdivision 23, is amended to read:
165.11 		Subd. 23.Practitioner. "Practitioner" means a licensed doctor of medicine, licensed 
165.12 	doctor of osteopathic medicine duly licensed to practice medicine, licensed doctor of 
165.13 	dentistry, licensed doctor of optometry, licensed podiatrist, licensed veterinarian, licensed 
165.14 	advanced practice registered nurse, licensed certified midwife, or licensed physician assistant. 
165.15 	For purposes of sections 151.15, subdivision 4; 151.211, subdivision 3; 151.252, subdivision 
165.16 	3; 151.37, subdivision 2, paragraph (b); and 151.461, "practitioner" also means a dental 
165.17 	therapist authorized to dispense and administer under chapter 150A. For purposes of sections 
165.18 	151.252, subdivision 3, and 151.461, "practitioner" also means a pharmacist authorized to 
165.19 	prescribe self-administered hormonal contraceptives, nicotine replacement medications, or 
165.20 	opiate antagonists under section 151.37, subdivision 14, 15, or 16, or authorized to prescribe 
165.21 	drugs to prevent the acquisition of human immunodeficiency virus (HIV) under section 
165.22 	151.37, subdivision 17.

165.23 	Sec. 110. Minnesota Statutes 2024, section 151.065, subdivision 1, is amended to read:
165.24 		Subdivision 1.Application fees. Application fees for licensure and registration are as 
165.25 	follows:
165.26 	(1) pharmacist licensed by examination, $225;
165.27 	(2) pharmacist licensed by reciprocity, $300;
165.28 	(3) pharmacy intern, $75 $25;
165.29 	(4) pharmacy technician, $60;
165.30 	(5) pharmacy, $450;
166.1 	(6) drug wholesaler, legend drugs only, $5,500;
166.2 	(7) drug wholesaler, legend and nonlegend drugs, $5,500;
166.3 	(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
166.4 	(9) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
166.5 	additional facility;
166.6 	(10) third-party logistics provider, $300;
166.7 	(11) drug manufacturer, nonopiate legend drugs only, $5,500;
166.8 	(12) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
166.9 	(13) drug manufacturer, nonlegend or veterinary legend drugs, $5,500;
166.10 	(14) drug manufacturer, medical gases, $5,500 for the first facility and $500 for each 
166.11 	additional facility;
166.12 	(15) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
166.13 	(16) drug manufacturer of opiate-containing controlled substances listed in section 
166.14 	152.02, subdivisions 3 to 5, $55,500;
166.15 	(17) medical gas dispenser, $400;
166.16 	(18) controlled substance researcher, $150; and
166.17 	(19) pharmacy professional corporation, $150.

166.18 	Sec. 111. Minnesota Statutes 2024, section 151.065, subdivision 3, is amended to read:
166.19 		Subd. 3.Annual renewal fees. Annual licensure and registration renewal fees are as 
166.20 	follows:
166.21 	(1) pharmacist, $225;
166.22 	(2) pharmacy technician, $60;
166.23 	(3) beginning January 1, 2026, pharmacy intern, $25;
166.24 	(3) (4) pharmacy, $450;
166.25 	(4) (5) drug wholesaler, legend drugs only, $5,500;
166.26 	(5) (6) drug wholesaler, legend and nonlegend drugs, $5,500;
166.27 	(6) (7) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
167.1 	(7) (8) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
167.2 	additional facility;
167.3 	(8) (9) third-party logistics provider, $300;
167.4 	(9) (10) drug manufacturer, nonopiate legend drugs only, $5,500;
167.5 	(10) (11) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
167.6 	(11) (12) drug manufacturer, nonlegend, veterinary legend drugs, or both, $5,500;
167.7 	(12) (13) drug manufacturer, medical gases, $5,500 for the first facility and $500 for 
167.8 	each additional facility;
167.9 	(13) (14) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
167.10 	(14) (15) drug manufacturer of opiate-containing controlled substances listed in section 
167.11 	152.02, subdivisions 3 to 5, $55,500;
167.12 	(15) (16) medical gas dispenser, $400;
167.13 	(16) (17) controlled substance researcher, $150; and
167.14 	(17) (18) pharmacy professional corporation, $150.

167.15 	Sec. 112. Minnesota Statutes 2024, section 151.065, subdivision 6, is amended to read:
167.16 		Subd. 6.Reinstatement fees. (a) A pharmacist who has allowed the pharmacist's license 
167.17 	to lapse may reinstate the license with board approval and upon payment of any fees and 
167.18 	late fees in arrears, up to a maximum of $1,000.
167.19 	(b) A pharmacy technician who has allowed the technician's registration to lapse may 
167.20 	reinstate the registration with board approval and upon payment of any fees and late fees 
167.21 	in arrears, up to a maximum of $250.
167.22 	(c) A pharmacy intern who has allowed the intern's registration to lapse may reinstate 
167.23 	the registration with board approval and upon payment of any fees and late fees in arrears, 
167.24 	up to a maximum of $100.
167.25 	(c) (d) An owner of a pharmacy, a drug wholesaler, a drug manufacturer, third-party 
167.26 	logistics provider, or a medical gas dispenser who has allowed the license of the establishment 
167.27 	to lapse may reinstate the license with board approval and upon payment of any fees and 
167.28 	late fees in arrears.
168.1 	(d) (e) A controlled substance researcher who has allowed the researcher's registration 
168.2 	to lapse may reinstate the registration with board approval and upon payment of any fees 
168.3 	and late fees in arrears.
168.4 	(e) (f) A pharmacist owner of a professional corporation who has allowed the corporation's 
168.5 	registration to lapse may reinstate the registration with board approval and upon payment 
168.6 	of any fees and late fees in arrears.

168.7 	Sec. 113. Minnesota Statutes 2024, section 151.101, is amended to read:
168.8 	151.101 INTERNSHIP.
168.9 		Subdivision 1.Registration requirements. (a) Upon payment of the fee specified in 
168.10 	section 151.065, the board may register as an intern any natural persons who have satisfied 
168.11 	the board that they are of good moral character, not physically or mentally unfit, and who 
168.12 	have successfully completed the educational requirements for intern registration prescribed 
168.13 	by the board. The board shall prescribe standards and requirements for interns, 
168.14 	pharmacist-preceptors, and internship training but may not require more than one year of 
168.15 	such training.
168.16 	(b) The board in its discretion may accept internship experience obtained in another 
168.17 	state provided the internship requirements in such other state are in the opinion of the board 
168.18 	equivalent to those herein provided.
168.19 		Subd. 2.Renewal requirements. (a) Beginning January 1, 2026, an intern registration 
168.20 	expires on September 30 each year or when the intern receives a pharmacist license, 
168.21 	whichever is earlier.
168.22 	(b) To renew an intern registration, the intern must file an application for renewal and 
168.23 	submit the fee established under section 151.065 on or before September 1 each year.
168.24 	(c) If the board does not receive the intern's registration renewal application on or before 
168.25 	September 1 each year, the intern is subject to a late filing fee equal to 50 percent of the 
168.26 	renewal fee under section 151.065 in addition to the renewal fee.
168.27 	(d) An individual who received an intern registration under the criteria in section 151.01, 
168.28 	subdivision 15, clause (1), and paid $75 for the individual's application fee between May 
168.29 	1, 2024, and June 30, 2025, is not subject to the $25 renewal fee for the first two renewal 
168.30 	cycles following the $75 fee payment.
169.1 	(e) If an individual is no longer enrolled in a doctor of pharmacy program accredited by 
169.2 	the Accreditation Council for Pharmacy Education, the board must terminate that individual's 
169.3 	intern registration effective the last date the individual was enrolled in a qualifying program.
169.4 	(f) The board must not renew an intern registration unless the individual:
169.5 	(1) has maintained current notices of employment for internship training with the board;
169.6 	(2) submitted a progress report affidavit of the intern credit hours completed by June 15 
169.7 	each year;
169.8 	(3) meets all other eligibility criteria for a pharmacist intern; and
169.9 	(4) demonstrates to the board's satisfaction the individual is in good faith and with 
169.10 	reasonable diligence pursuing a degree in pharmacy or is completing a pharmacy residency 
169.11 	or fellowship.
169.12 	(g) An intern whose registration has lapsed may renew the intern registration within one 
169.13 	year of expiration, subject to the fees in paragraph (c). An intern whose registration has 
169.14 	lapsed for more than one year must meet the registration requirements for an initial intern 
169.15 	applicant in effect at the time the individual applies for reinstatement and pay any fees and 
169.16 	late fees in arrears in accordance with section 151.065.
169.17 	(h) If the board receives a late renewal, reinstatement, or initial intern application from 
169.18 	an eligible individual within 90 days before September 30, the board may extend the 
169.19 	registration expiration date for that applicant to September 30 of the subsequent calendar 
169.20 	year and prorate the application fee accordingly.
169.21 		Subd. 3.Internship credit hour requirements. (a) To apply for licensure as a pharmacist 
169.22 	under section 151.10, an individual must complete at least 1,600 intern credit hours under 
169.23 	the direction and supervision of a preceptor.
169.24 	(b) Of the 1,600 credit hours required under this subdivision, an intern may earn:
169.25 	(1) a maximum of 80 credit hours in the individual's first professional academic year 
169.26 	for a structured experience directed by the college of pharmacy that the individual attends 
169.27 	and is overseen by college faculty, registered preceptors, or supervising licensed pharmacists;
169.28 	(2) a maximum of 400 credit hours of concurrent time internship; and
169.29 	(3) a maximum of 54 credit hours per week that may be earned from more than one site.

170.1 	Sec. 114. Minnesota Statutes 2024, section 152.12, subdivision 1, is amended to read:
170.2 		Subdivision 1.Prescribing, dispensing, administering controlled substances in 
170.3 	Schedules II through V. A licensed doctor of medicine, a doctor of osteopathic medicine, 
170.4 	duly licensed to practice medicine, a doctor of dental surgery, a doctor of dental medicine, 
170.5 	a licensed doctor of podiatry, a licensed advanced practice registered nurse, a licensed 
170.6 	certified midwife, a licensed physician assistant, or a licensed doctor of optometry limited 
170.7 	to Schedules IV and V, and in the course of professional practice only, may prescribe, 
170.8 	administer, and dispense a controlled substance included in Schedules II through V of section 
170.9 	152.02, may cause the same to be administered by a nurse, an intern or an assistant under 
170.10 	the direction and supervision of the doctor, and may cause a person who is an appropriately 
170.11 	certified and licensed health care professional to prescribe and administer the same within 
170.12 	the expressed legal scope of the person's practice as defined in Minnesota Statutes.

170.13 	Sec. 115. [153.30] FEES.
170.14 		Subdivision 1.Nonrefundable fees. The fees in this section are nonrefundable.
170.15 		Subd. 2.Fee amounts. The amount of fees must be set by the board so that the total 
170.16 	fees collected by the board equals as closely as possible the anticipated expenditures during 
170.17 	the fiscal biennium, as provided in section 16A.1285. Fees must not exceed the following 
170.18 	amounts but may be adjusted lower by board action:
170.19 	(1) application for licensure fee, $1,000;
170.20 	(2) renewal licensure fee, $1,000;
170.21 	(3) late renewal fee, $250;
170.22 	(4) temporary permit fee, $250;
170.23 	(5) duplicate license fee or duplicate renewal certificate fee, $25;
170.24 	(6) reinstatement fee, $1,250;
170.25 	(7) examination administration fee for persons who have not applied for a license or 
170.26 	permit, $50;
170.27 	(8) verification of licensure fee, $50;
170.28 	(9) label fee, $50;
170.29 	(10) list of licensees fee, $50; and
170.30 	(11) copies fee, $0.50 per page.
171.1 		Subd. 3.Current fee information. Information about fees in effect at any time must 
171.2 	be available from the board office.
171.3 		Subd. 4.Deposit of fees. The license fees collected under this section must be deposited 
171.4 	in the state government special revenue fund.

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

171.6 	Sec. 116. Minnesota Statutes 2024, section 153B.85, subdivision 1, is amended to read:
171.7 		Subdivision 1.Fees. (a) The application fee for initial licensure shall not exceed $600.
171.8 	(b) The biennial renewal fee for a license to practice as an orthotist, prosthetist, prosthetist 
171.9 	orthotist, or pedorthist shall not exceed $600.
171.10 	(c) The biennial renewal fee for a license to practice as an assistant or a fitter shall not 
171.11 	exceed $300.
171.12 	(d) The fee for license restoration shall not exceed $600.
171.13 	(e) The fee for license verification shall not exceed $30 $50.
171.14 	(f) The fee to obtain a list of licensees shall not exceed $25 $50.

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

171.16 	Sec. 117. Minnesota Statutes 2024, section 153B.85, subdivision 3, is amended to read:
171.17 		Subd. 3.Late fee. The fee for late license renewal is the license renewal fee in effect at 
171.18 	the time of renewal plus $100 $250.

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

171.20 	Sec. 118. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
171.21 	to read:
171.22 		Subd. 1a.Nonrefundable fees. All fees are nonrefundable.

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

171.24 	Sec. 119. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
171.25 	to read:
171.26 		Subd. 3.Fee amounts. Fees must not exceed the following amounts but may be adjusted 
171.27 	lower by board action:
171.28 	(1) initial application fee, $75;
172.1 	(2) state examination fee, $75;
172.2 	(3) duplicate license fee, $25;
172.3 	(4) continuing education sponsor application fee, $75;
172.4 	(5) mailing list fee, $250;
172.5 	(6) initial veterinary license fee, $300;
172.6 	(7) initial veterinary technician fee, $100;
172.7 	(8) active veterinary renewal fee, $300;
172.8 	(9) active veterinary technician renewal fee, $100;
172.9 	(10) inactive veterinary renewal fee, $150;
172.10 	(11) inactive veterinary technician renewal fee, $50;
172.11 	(12) institutional license fee, $300;
172.12 	(13) active late veterinary renewal fee, $150;
172.13 	(14) active late veterinary technician renewal fee, $50;
172.14 	(15) inactive late veterinary renewal fee, $100;
172.15 	(16) inactive late veterinary technician renewal fee, $25; and
172.16 	(17) institutional late renewal fee, $150.

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

172.18 	Sec. 120. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
172.19 	to read:
172.20 		Subd. 4.License verification. The board may charge a fee not to exceed $25 per license 
172.21 	verification to a licensee for verification of licensure status provided to other veterinary 
172.22 	licensing boards.

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

172.24 	Sec. 121. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
172.25 	to read:
172.26 		Subd. 5.Deposit of fees. The license fees collected under this section must be deposited 
172.27 	in the state government special revenue fund.

173.1 	Sec. 122. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
173.2 	to read:
173.3 		Subd. 28c.Certified midwifery practice services. Medical assistance covers services 
173.4 	performed by a licensed certified midwife if:
173.5 	(1) the service provided on an inpatient basis is not included as part of the cost for 
173.6 	inpatient services included in the facility payment;
173.7 	(2) the service is otherwise covered under this chapter as a physician service; and
173.8 	(3) the service is within the scope of practice of the certified midwife's license as defined 
173.9 	under chapter 148G.

173.10 	Sec. 123. REVISOR INSTRUCTION.
 173.11 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 148.6408, 
173.12 	subdivision 1, as Minnesota Statutes, section 148.6408, subdivision 1b.
173.13 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 148.6410, 
173.14 	subdivision 1, as Minnesota Statutes, section 148.6410, subdivision 1b.

173.15 	Sec. 124. REPEALER.
 173.16 	(a) Minnesota Statutes 2024, sections 148.108, subdivisions 2, 3, and 4; 148.6402, 
173.17 	subdivision 22a; 148.6420, subdivisions 2, 3, and 4; 148.6423, subdivisions 4, 5, 7, 8, and 
173.18 	9; 148.6425, subdivision 3; 148.6430; 148.6445, subdivisions 5, 6, and 8; and 156.015, 
173.19 	subdivision 1, are repealed.
173.20 	(b) Minnesota Rules, parts 2500.1150; 2500.2030; 6800.5100, subpart 5; 6800.5400, 
173.21 	subparts 5 and 6; 9100.0400, subparts 1 and 3; 9100.0500; and 9100.0600, are repealed.
173.22 	(c) Minnesota Rules, part 6900.0250, subparts 1 and 2, are repealed.

173.23 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective July 1, 2025. Paragraph (c) 
173.24 	is effective the day following final enactment.

173.25 	ARTICLE 4
173.26 	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

173.27 	Section 1. Minnesota Statutes 2024, section 3.732, subdivision 1, is amended to read:
173.28 		Subdivision 1.Definitions. As used in this section and section 3.736 the terms defined 
173.29 	in this section have the meanings given them.
174.1 	(1) "State" includes each of the departments, boards, agencies, commissions, courts, and 
174.2 	officers in the executive, legislative, and judicial branches of the state of Minnesota and 
174.3 	includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 
174.4 	Education, the Higher Health and Education Facilities Authority, the Health Technology 
174.5 	Advisory Committee, the Armory Building Commission, the Zoological Board, the 
174.6 	Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society, 
174.7 	the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges 
174.8 	and Universities, state hospitals, and state penal institutions. It does not include a city, town, 
174.9 	county, school district, or other local governmental body corporate and politic.
174.10 	(2) "Employee of the state" means all present or former officers, members, directors, or 
174.11 	employees of the state, members of the Minnesota National Guard, members of a bomb 
174.12 	disposal unit approved by the commissioner of public safety and employed by a municipality 
174.13 	defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 
174.14 	similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 
174.15 	municipality but within the state, or persons acting on behalf of the state in an official 
174.16 	capacity, temporarily or permanently, with or without compensation. It does not include 
174.17 	either an independent contractor except, for purposes of this section and section 3.736 only, 
174.18 	a guardian ad litem acting under court appointment, or members of the Minnesota National 
174.19 	Guard while engaged in training or duty under United States Code, title 10, or title 32, 
174.20 	section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 
174.21 	sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 
174.22 	of the state" includes a district public defender or assistant district public defender in the 
174.23 	Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 
174.24 	and any officer, agent, or employee of the state of Wisconsin performing work for the state 
174.25 	of Minnesota pursuant to a joint state initiative.
174.26 	(3) "Scope of office or employment" means that the employee was acting on behalf of 
174.27 	the state in the performance of duties or tasks lawfully assigned by competent authority.
174.28 	(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

174.29 	Sec. 2. Minnesota Statutes 2024, section 10A.01, subdivision 35, is amended to read:
174.30 		Subd. 35.Public official. "Public official" means any:
174.31 	(1) member of the legislature;
174.32 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
174.33 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
175.1 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
175.2 	Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis 
175.3 	Department;
175.4 	(3) constitutional officer in the executive branch and the officer's chief administrative 
175.5 	deputy;
175.6 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
175.7 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
175.8 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
175.9 	officer;
175.10 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
175.11 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
175.12 	14, or the power to adjudicate contested cases or appeals under chapter 14;
175.13 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
175.14 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
175.15 	(8) executive director of the State Board of Investment;
175.16 	(9) deputy of any official listed in clauses (7) and (8);
175.17 	(10) judge of the Workers' Compensation Court of Appeals;
175.18 	(11) administrative law judge or compensation judge in the State Office of Administrative 
175.19 	Hearings or unemployment law judge in the Department of Employment and Economic 
175.20 	Development;
175.21 	(12) member, regional administrator, division director, general counsel, or operations 
175.22 	manager of the Metropolitan Council;
175.23 	(13) member or chief administrator of a metropolitan agency;
175.24 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
175.25 	of Public Safety;
175.26 	(15) member or executive director of the Higher Health and Education Facilities 
175.27 	Authority;
175.28 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
175.29 	(17) member of the board of directors or executive director of the Minnesota State High 
175.30 	School League;
175.31 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
176.1 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
176.2 	(20) manager of a watershed district, or member of a watershed management organization 
176.3 	as defined under section 103B.205, subdivision 13;
176.4 	(21) supervisor of a soil and water conservation district;
176.5 	(22) director of Explore Minnesota Tourism;
176.6 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
176.7 	97A.056;
176.8 	(24) citizen member of the Clean Water Council established in section 114D.30;
176.9 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
176.10 	in section 473J.07;
176.11 	(26) district court judge, appeals court judge, or supreme court justice;
176.12 	(27) county commissioner;
176.13 	(28) member of the Greater Minnesota Regional Parks and Trails Commission;
176.14 	(29) member of the Destination Medical Center Corporation established in section 
176.15 	469.41; or
176.16 	(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges 
176.17 	and Universities.

176.18 	Sec. 3. Minnesota Statutes 2024, section 136A.25, is amended to read:
176.19 	136A.25 CREATION.
176.20 	A state agency known as the Minnesota HigherHealth and Education Facilities Authority 
176.21 	is hereby created.

176.22 	Sec. 4. Minnesota Statutes 2024, section 136A.26, is amended to read:
176.23 	136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.
176.24 		Subdivision 1.Membership. The Minnesota Higher Health and Education Facilities 
176.25 	Authority shall consist of eight nine members appointed by the governor with the advice 
176.26 	and consent of the senate, and a representative of the office Office of Higher Education.
176.27 	All members to be appointed by the governor shall be residents of the state. At least two 
176.28 	members must reside outside the metropolitan area as defined in section 473.121, subdivision 
176.29 	2. At least one of the members shall be a person having a favorable reputation for skill, 
177.1 	knowledge, and experience in the field of state and municipal finance; and at least one shall 
177.2 	be a person having a favorable reputation for skill, knowledge, and experience in the building 
177.3 	construction field; and at least one of the members shall be a trustee, director, officer, or 
177.4 	employee of an institution of higher education; and at least one of the members shall be a 
177.5 	trustee, director, officer, or employee of a health care organization.
177.6 		Subd. 1a.Private College Council member. The president of the Minnesota Private 
177.7 	College Council, or the president's designee, shall serve without compensation as an advisory, 
177.8 	nonvoting member of the authority.
177.9 		Subd. 1b.Nonprofit health care association member. The chief executive officer of 
177.10 	a Minnesota nonprofit membership association whose members are primarily nonprofit 
177.11 	health care organizations, or the chief executive officer's designee, shall serve without 
177.12 	compensation as an advisory, nonvoting member of the authority. The identity of the 
177.13 	Minnesota nonprofit membership association shall be determined and may be changed from 
177.14 	time to time by the members of the authority in accordance with and as shall be provided 
177.15 	in the bylaws of the authority.
177.16 		Subd. 2.Term; compensation; removal. The membership terms, compensation, removal 
177.17 	of members, and filling of vacancies for authority members other than the representative 
177.18 	of the office, and the president of the Private College Council, or the chief executive officer 
177.19 	of the Minnesota nonprofit membership association described in subdivision 1b shall be as 
177.20 	provided in section 15.0575.

177.21 	Sec. 5. Minnesota Statutes 2024, section 136A.27, is amended to read:
177.22 	136A.27 POLICY.
177.23 	It is hereby declared that for the benefit of the people of the state, the increase of their 
177.24 	commerce, welfare and prosperity and the improvement of their health and living conditions 
177.25 	it is essential that health care organizations in Minnesota be provided with appropriate 
177.26 	additional means to establish, acquire, construct, improve, and expand health care facilities 
177.27 	in furtherance of their purposes; that this and future generations of youth be given the fullest 
177.28 	opportunity to learn and to develop their intellectual and mental capacities; that it is essential
177.29 	that institutions of higher education within the state be provided with appropriate additional 
177.30 	means to assist such youth in achieving the required levels of learning and development of 
177.31 	their intellectual and mental capacities; and that health care organizations and institutions 
177.32 	of higher education be enabled to refinance outstanding indebtedness incurred to provide 
177.33 	existing facilities used for such those purposes in order to preserve and enhance the utilization 
177.34 	of facilities for purposes of health care and higher education, to extend or adjust maturities 
178.1 	in relation to the resources available for their payment, and to save interest costs and thereby 
178.2 	reduce health care costs or higher education tuition, fees, and charges; and. It is hereby 
178.3 	further declared that it is the purpose of sections 136A.25 to 136A.42 to provide a measure 
178.4 	of assistance and an alternative method to enable health care organizations and institutions 
178.5 	of higher education in the state to provide the facilities and structures which are sorely 
178.6 	needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit 
178.7 	and good, to the extent and manner provided herein.

178.8 	Sec. 6. Minnesota Statutes 2024, section 136A.28, is amended to read:
178.9 	136A.28 DEFINITIONS.
178.10 		Subdivision 1.Scope. In sections 136A.25 to 136A.42, the following words and terms 
178.11 	shall, unless the context otherwise requires, have the meanings ascribed to them.
178.12 		Subd. 1a.Affiliate. "Affiliate" means an entity that directly or indirectly controls, is 
178.13 	controlled by, or is under common control with another entity. For purposes of this 
178.14 	subdivision, "control" means either the power to elect a majority of the members of the 
178.15 	governing body of an entity or the power, whether by contract or otherwise, to direct the 
178.16 	management and policies of the entity. Affiliate also means an entity whose business or 
178.17 	substantially all of whose property is operated under a lease, management agreement, or 
178.18 	operating agreement by another entity, or an entity who operates the business or substantially 
178.19 	all of the property of another entity under a lease, management agreement, or operating 
178.20 	agreement.
178.21 		Subd. 2.Authority. "Authority" means the HigherHealth and Education Facilities 
178.22 	Authority created by sections 136A.25 to 136A.42.
178.23 		Subd. 3.Project. "Project" means a structure or structures available for use as a dormitory 
178.24 	or other student housing facility, a dining hall, student union, administration building, 
178.25 	academic building, library, laboratory, research facility, classroom, athletic facility, health 
178.26 	care facility, child care facility, and maintenance, storage, or utility facility and other 
178.27 	structures or facilities related thereto or required or useful for the instruction of students or 
178.28 	the conducting of research or the operation of an institution of higher education, whether 
178.29 	proposed, under construction, or completed, including parking and other facilities or 
178.30 	structures essential or convenient for the orderly conduct of such institution for higher 
178.31 	education, and shall also include landscaping, site preparation, furniture, equipment and 
178.32 	machinery, and other similar items necessary or convenient for the operation of a particular 
178.33 	facility or structure in the manner for which its use is intended but shall not include such 
178.34 	items as books, fuel, supplies, or other items the costs of which are customarily deemed to 
179.1 	result in a current operating charge, and shalla health care facility or an education facility 
179.2 	whether proposed, under construction, or completed, and includes land or interests in land, 
179.3 	appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures, 
179.4 	furniture, machinery, equipment, and parking. Project also includes other structures, facilities, 
179.5 	improvements, machinery, equipment, and means of transport of a capital nature that are 
179.6 	necessary or convenient for the operation of the facility. Project does not include: (1) any 
179.7 	facility used or to be used for sectarian instruction or as a place of religious worship nor; 
179.8 	(2) any facility which is used or to be used primarily in connection with any part of the 
179.9 	program of a school or department of divinity for any religious denomination; or (3) any 
179.10 	books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are 
179.11 	customarily deemed to result in a current operating charge.
179.12 		Subd. 4.Cost. "Cost," as applied to a project or any portion thereof financed under the 
179.13 	provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction, 
179.14 	acquisition, alteration, enlargement, reconstruction and remodeling of a project including 
179.15 	all lands, structures, real or personal property, rights, rights-of-way, franchises, easements 
179.16 	and interests acquired or used for or in connection with a project, the cost of demolishing 
179.17 	or removing any buildings or structures on land so acquired, including the cost of acquiring 
179.18 	any lands to which such the buildings or structures may be moved, the cost of all machinery 
179.19 	and equipment, financing charges, interest prior to, during and for a period after completion 
179.20 	of such construction and acquisition, provisions for reserves for principal and interest and 
179.21 	for extensions, enlargements, additions and improvements, the cost of architectural, 
179.22 	engineering, financial and legal services, plans, specifications, studies, surveys, estimates 
179.23 	of cost and of revenues, administrative expenses, expenses necessary or incident to 
179.24 	determining the feasibility or practicability of constructing the project and such other 
179.25 	expenses as may be necessary or incident to the construction and acquisition of the project, 
179.26 	the financing of such construction and acquisition and the placing of the project in operation.
179.27 		Subd. 5.Bonds. "Bonds," or "revenue bonds" means revenue bonds of the authority 
179.28 	issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding 
179.29 	bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit 
179.30 	of a participating institution for higher education or any other lawfully pledged security of 
179.31 	a participating institution for higher education.
179.32 		Subd. 6.Institution of higher education. "Institution of higher education" means a 
179.33 	nonprofit educational institution within the state authorized to provide a program of education 
179.34 	beyond the high school level.
180.1 		Subd. 6a.Health care organization. (a) "Health care organization" means a nonprofit 
180.2 	organization located within the state and authorized by law to operate a nonprofit health 
180.3 	care facility in the state. Health care organization also means a nonprofit affiliate of a health 
180.4 	care organization as defined under this paragraph, provided the affiliate is located within 
180.5 	the state or within a state that is geographically contiguous to Minnesota.
180.6 	(b) Health care organization also means a nonprofit organization located in another state 
180.7 	that is geographically contiguous to Minnesota and authorized by law to operate a nonprofit 
180.8 	health care facility in that state, provided that the nonprofit organization located in the 
180.9 	contiguous state is an affiliate of a health care organization located in Minnesota.
180.10 		Subd. 6b.Education facility. "Education facility" means a structure or structures 
180.11 	available for use as a dormitory or other student housing facility, dining hall, student union, 
180.12 	administration building, academic building, library, laboratory, research facility, classroom, 
180.13 	athletic facility, student health care facility, or child care facility, and includes other facilities 
180.14 	or structures related to the essential or convenient orderly conduct of an institution of higher 
180.15 	education.
180.16 		Subd. 6c.Health care facility. (a) "Health care facility" means a structure or structures 
180.17 	available for use in Minnesota as a hospital, clinic, psychiatric residential treatment facility, 
180.18 	birth center, outpatient surgical center, comprehensive outpatient rehabilitation facility, 
180.19 	outpatient physical therapy or speech pathology facility, end-stage renal dialysis facility, 
180.20 	medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility, medical 
180.21 	office building, residence for nurses or interns, nursing home, boarding care home, assisted 
180.22 	living facility, residential hospice, intermediate care facility for persons with developmental 
180.23 	disabilities, supervised living facility, housing with services establishment, board and lodging 
180.24 	establishment with special services, adult day care center, day services facility, prescribed 
180.25 	pediatric extended care facility, community residential setting, adult foster home, or other 
180.26 	facility related to medical or health care research, or the delivery or administration of health 
180.27 	care services and includes other structures or facilities related to the essential or convenient 
180.28 	orderly conduct of a health care organization.
180.29 	(b) Health care facility also means a facility in a state that is geographically contiguous 
180.30 	to Minnesota operated by a health care organization that corresponds by purpose, function, 
180.31 	or use with a facility listed in paragraph (a).
180.32 		Subd. 7.Participating institution of higher education. "Participating institution of 
180.33 	higher education" means a health care organization or an institution of higher education 
180.34 	that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and 
181.1 	construction or acquisition of a project or undertakes the refunding or refinancing of 
181.2 	obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42. 
181.3 	Community colleges and technical colleges may be considered participating institutions of 
181.4 	higher education for the purpose of financing and constructing child care facilities and 
181.5 	parking facilities.

181.6 	Sec. 7. Minnesota Statutes 2024, section 136A.29, subdivision 1, is amended to read:
181.7 		Subdivision 1.Purpose. The purpose of the authority shall be to assist health care 
181.8 	organizations and institutions of higher education in the construction, financing, and 
181.9 	refinancing of projects. The exercise by the authority of the powers conferred by sections 
181.10 	136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public 
181.11 	function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the 
181.12 	powers and duties set forth in subdivisions 2 to 23.

181.13 	Sec. 8. Minnesota Statutes 2024, section 136A.29, subdivision 3, is amended to read:
181.14 		Subd. 3.Employees; office space. The authority is authorized and empowered to appoint 
181.15 	and employ employees as it may deem necessary to carry out its duties, determine the title 
181.16 	of the employees so employed, and fix the salary of said the employees. Employees of the 
181.17 	authority shall participate in retirement and other benefits in the same manner that employees 
181.18 	in the unclassified service of the office managerial plan under section 43A.18, subdivision 
181.19 	3, participate. The authority may maintain an office space as it may designate.

181.20 	Sec. 9. Minnesota Statutes 2024, section 136A.29, subdivision 6, is amended to read:
181.21 		Subd. 6.Projects; generally. (a) The authority is authorized and empowered to determine 
181.22 	the location and character of any project to be financed under the provisions of sections 
181.23 	136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge, 
181.24 	alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into 
181.25 	contracts for any or all of such these purposes, to enter into contracts for the management 
181.26 	and operation of a project, and to designate a participating institution of higher education
181.27 	as its agent to determine the location and character of a project undertaken by such a
181.28 	participating institution of higher education under the provisions of sections 136A.25 to 
181.29 	136A.42 and as the agent of the authority, to construct, reconstruct, remodel, maintain, 
181.30 	manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the 
181.31 	same, and as the agent of the authority, to enter into contracts for any or all of such these
181.32 	purposes, including contracts for the management and operation of such the project.
182.1 	(b) Notwithstanding paragraph (a), a project involving a health care facility in Minnesota 
182.2 	financed under sections 136A.25 to 136A.42 must comply with all applicable requirements 
182.3 	in state law related to authorizing construction of or modifications to a health care facility, 
182.4 	including the requirements in sections 144.5509, 144.551, 144A.071, and 252.291.
182.5 	(c) Contracts of the authority or of a participating institution of higher education to 
182.6 	acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair 
182.7 	projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other 
182.8 	public contract or competitive bid law.

182.9 	Sec. 10. Minnesota Statutes 2024, section 136A.29, subdivision 9, is amended to read:
182.10 		Subd. 9.Revenue bonds; limit. (a) The authority is authorized and empowered to issue 
182.11 	revenue bonds whose aggregate principal amount at any time shall not exceed $2,000,000,000
182.12 	$5,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds 
182.13 	of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for 
182.14 	acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, 
182.15 	furnishing, or equipping one or more projects or parts thereof.
182.16 	(b) Of the $5,000,000,000 limit in paragraph (a), the aggregate principal amount used 
182.17 	to fund education facilities may not exceed $2,250,000,000 at any time and the aggregate 
182.18 	principal amount used to fund health care facilities may not exceed $2,750,000,000 at any 
182.19 	time.

182.20 	Sec. 11. Minnesota Statutes 2024, section 136A.29, subdivision 10, is amended to read:
182.21 		Subd. 10.Revenue bonds; issuance, purpose, conditions. The authority is authorized 
182.22 	and empowered to issue revenue bonds to acquire projects from or to make loans to 
182.23 	participating institutions of higher education and thereby refinance outstanding indebtedness 
182.24 	incurred by participating institutions of higher education to provide funds for the acquisition, 
182.25 	construction or improvement of a facility before or after the enactment of sections 136A.25
182.26 	to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the 
182.27 	authority finds that such the refinancing will enhance or preserve such the participating 
182.28 	institutions and such the facilities or utilization thereof that is for health care or educational 
182.29 	purposes or extend or adjust maturities to correspond to the resources available for their 
182.30 	payment, or reduce charges or fees imposed on patients or occupants, or the tuition, charges,
182.31 	or fees imposed on students for the use or occupancy of the facilities of such the participating 
182.32 	institutions of higher education or costs met by federal or state public funds, or enhance or 
182.33 	preserve health care or educational programs and research or the acquisition or improvement 
183.1 	of other facilities eligible to be a project or part thereof by the participating institution of 
183.2 	higher education. The amount of revenue bonds to be issued to refinance outstanding 
183.3 	indebtedness of a participating institution of higher education shall not exceed the lesser of 
183.4 	(a) the fair value of the project to be acquired by the authority from the institution or 
183.5 	mortgaged to the authority by the institution or (b) the amount of the outstanding indebtedness 
183.6 	including any premium thereon and any interest accrued or to accrue to the date of redemption 
183.7 	and any legal, fiscal and related costs in connection with such the refinancing and reasonable 
183.8 	reserves, as determined by the authority. The provisions of this subdivision do not prohibit 
183.9 	the authority from issuing revenue bonds within and charged against the limitations provided 
183.10 	in subdivision 9 to provide funds for improvements, alteration, renovation, or extension of 
183.11 	the project refinanced.

183.12 	Sec. 12. Minnesota Statutes 2024, section 136A.29, subdivision 14, is amended to read:
183.13 		Subd. 14.Rules for use of projects. The authority is authorized and empowered to 
183.14 	establish rules for the use of a project or any portion thereof and to designate a participating 
183.15 	institution of higher education as its agent to establish rules for the use of a project undertaken 
183.16 	for such a participating institution of higher education.

183.17 	Sec. 13. Minnesota Statutes 2024, section 136A.29, subdivision 19, is amended to read:
183.18 		Subd. 19.Surety. Before the issuance of any revenue bonds under the provisions of 
183.19 	sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution 
183.20 	of the authority to handle funds or sign checks of the authority shall be covered under a 
183.21 	surety or fidelity bond in an amount to be determined by the authority. Each such bond shall 
183.22 	be conditioned upon the faithful performance of the duties of the office of the member or 
183.23 	officer, and shall be executed by a surety company authorized to transact business in the 
183.24 	state of Minnesota as surety. The cost of each such bond shall be paid by the authority.

183.25 	Sec. 14. Minnesota Statutes 2024, section 136A.29, subdivision 20, is amended to read:
183.26 		Subd. 20.Sale, lease, and disposal of property. The authority is authorized and 
183.27 	empowered to sell, lease, release, or otherwise dispose of real and personal property or 
183.28 	interests therein, or a combination thereof, acquired by the authority under authority of 
183.29 	sections 136A.25 to 136A.42 and no longer needed for the purposes of such this chapter or 
183.30 	of the authority, and grant such easements and other rights in, over, under, or across a project 
183.31 	as will not interfere with its use of such the property. Such The sale, lease, release, 
183.32 	disposition, or grant may be made without competitive bidding and in such the manner and
183.33 	for such consideration as the authority in its judgment deems appropriate.

184.1 	Sec. 15. Minnesota Statutes 2024, section 136A.29, subdivision 21, is amended to read:
184.2 		Subd. 21.Loans. The authority is authorized and empowered to make loans to any 
184.3 	participating institution of higher education for the cost of a project in accordance with an 
184.4 	agreement between the authority and the participating institution of higher education;,
184.5 	provided that no such loan shall exceed the total cost of the project as determined by the 
184.6 	participating institution of higher education and approved by the authority.

184.7 	Sec. 16. Minnesota Statutes 2024, section 136A.29, subdivision 22, is amended to read:
184.8 		Subd. 22.Costs, expenses, and other charges. The authority is authorized and 
184.9 	empowered to charge to and apportion among participating institutions of higher education
184.10 	its administrative costs and expenses incurred in the exercise of the powers and duties 
184.11 	conferred by sections 136A.25 to 136A.42 in the manner as the authority in its judgment 
184.12 	deems appropriate.

184.13 	Sec. 17. Minnesota Statutes 2024, section 136A.29, is amended by adding a subdivision 
184.14 	to read:
184.15 		Subd. 24.Determination of affiliate status. The authority is authorized and empowered 
184.16 	to determine whether an entity is an affiliate as defined in section 136A.28, subdivision 1a. 
184.17 	A determination by the authority of affiliate status shall be deemed conclusive for the 
184.18 	purposes of sections 136A.25 to 136A.42.

184.19 	Sec. 18. Minnesota Statutes 2024, section 136A.32, subdivision 1, is amended to read:
184.20 		Subdivision 1.Bonds; generally. (a) The authority may from time to time issue revenue 
184.21 	bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes, 
184.22 	bond anticipation notes or other obligations of the authority issued pursuant to sections 
184.23 	136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes 
184.24 	notwithstanding their payment from a limited source and without regard to any other law 
184.25 	or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable 
184.26 	bond anticipation notes and may renew the same from time to time, but the maximum 
184.27 	maturity of any such note, including renewals thereof, shall not exceed five years from the 
184.28 	date of issue of the original note. Such Notes shall be paid from any revenues of the authority 
184.29 	available therefor and not otherwise pledged, or from the proceeds of sale of the revenue 
184.30 	bonds of the authority in anticipation of which they were issued. The notes shall be issued 
184.31 	in the same manner as the revenue bonds. Such The notes and the resolution or resolutions 
185.1 	authorizing the same may contain any provisions, conditions or limitations which a bond 
185.2 	resolution or the authority may contain.
185.3 	(b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on 
185.4 	behalf of a health care organization to finance health care facilities, the authority must obtain 
185.5 	consent by resolution from each city or town where the project is located, except that consent 
185.6 	need not be obtained in the case of a city or town with a population of less than 100,000. 
185.7 	The consent by resolution requirement does not apply to financing under paragraph (a) on 
185.8 	behalf of a participating institution that is primarily an institution of higher education.

185.9 	Sec. 19. Minnesota Statutes 2024, section 136A.32, subdivision 4, is amended to read:
185.10 		Subd. 4.Provisions of resolution authorizing bonds. Any resolution or resolutions 
185.11 	authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which 
185.12 	shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:
185.13 	(1) pledging all or any part of the revenues of a project or projects, any revenue producing 
185.14 	contract or contracts made by the authority with any individual partnership, corporation or 
185.15 	association or other body one or more partnerships, corporations or associations, or other 
185.16 	bodies, public or private, to secure the payment of the revenue bonds or of any particular 
185.17 	issue of revenue bonds, subject to such agreements with bondholders as may then exist;
185.18 	(2) the rentals, fees and other charges to be charged, and the amounts to be raised in 
185.19 	each year thereby, and the use and disposition of the revenues;
185.20 	(3) the setting aside of reserves or sinking funds, and the regulation and disposition 
185.21 	thereof of them;
185.22 	(4) limitations on the right of the authority or its agent to restrict and regulate the use of 
185.23 	the project;
185.24 	(5) limitations on the purpose to which the proceeds of sale of any issue of revenue 
185.25 	bonds then or thereafter to be issued may be applied and pledging such the proceeds to 
185.26 	secure the payment of the revenue bonds or any issue of the revenue bonds;
185.27 	(6) limitations on the issuance of additional bonds, the terms upon which additional 
185.28 	bonds may be issued and secured and the refunding of outstanding bonds;
185.29 	(7) the procedure, if any, by which the terms of any contract with bondholders may be 
185.30 	amended or abrogated, the amount of bonds the holders of which must consent thereto to, 
185.31 	and the manner in which such consent may be given;
186.1 	(8) limitations on the amount of moneys derived from the project to be expended for 
186.2 	operating, administrative or other expenses of the authority;
186.3 	(9) defining the acts or omissions to act which shall constitute a default in the duties of 
186.4 	the authority to holders of its obligations and providing the rights and remedies of such the
186.5 	holders in the event of a default; or
186.6 	(10) the mortgaging of a project and the site thereof for the purpose of securing the 
186.7 	bondholders.

186.8 	Sec. 20. Minnesota Statutes 2024, section 136A.32, is amended by adding a subdivision 
186.9 	to read:
186.10 		Subd. 4a.Health care certification. Health care organizations must provide the authority 
186.11 	with a signed certificate from the health care organization stating that so long as authority 
186.12 	financing for the health care organization remains outstanding, none of the proceeds of the 
186.13 	bonds to the health care organization may be directly or indirectly used to benefit a private 
186.14 	party or private equity-funded entity.

186.15 	Sec. 21. Minnesota Statutes 2024, section 136A.33, is amended to read:
186.16 	136A.33 TRUST AGREEMENT.
186.17 	In the discretion of the authority any revenue bonds issued under the provisions of 
186.18 	sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the 
186.19 	authority and a corporate trustee or trustees, which may be any trust company or bank having 
186.20 	the powers of a trust company within the state. Such The trust agreement or the resolution 
186.21 	providing for the issuance of such revenue bonds may pledge or assign the revenues to be 
186.22 	received or proceeds of any contract or contracts pledged and may convey or mortgage the 
186.23 	project or any portion thereof of the project. Such The trust agreement or resolution providing 
186.24 	for the issuance of such revenue bonds may contain such provisions for protecting and 
186.25 	enforcing the rights and remedies of the bondholders as may be reasonable and proper and 
186.26 	not in violation of laws, including particularly such particular provisions as have hereinabove
186.27 	that have been specifically authorized to be included in any resolution or resolutions of the 
186.28 	authority authorizing revenue bonds thereof. Any bank or trust company incorporated under 
186.29 	the laws of the state which that may act as depository of the proceeds of bonds or of revenues 
186.30 	or other moneys may furnish such indemnifying bonds or pledges suchpledge securities as 
186.31 	may be required by the authority. Any such trust agreement may set forth the rights and 
186.32 	remedies of the bondholders and of the trustee or trustees and may restrict the individual 
186.33 	right of action by bondholders. In addition to the foregoing, any such trust agreement or 
187.1 	resolution may contain such other provisions as the authority may deem reasonable and 
187.2 	proper for the security of the bondholders. All expenses incurred in carrying out the 
187.3 	provisions of such the trust agreement or resolution may be treated as a part of the cost of 
187.4 	the operation of a project.

187.5 	Sec. 22. Minnesota Statutes 2024, section 136A.34, subdivision 3, is amended to read:
187.6 		Subd. 3.Investment. Any such escrowed proceeds, pending such use, may be invested 
187.7 	and reinvested in direct obligations of the United States of America, or in certificates of 
187.8 	deposit or time deposits secured by direct obligations of the United States of America, or 
187.9 	in shares or units in any money market mutual fund whose investment portfolio consists 
187.10 	solely of direct obligations of the United States of America, maturing at such a time or times 
187.11 	as shall be appropriate to assure the prompt payment, as to principal, interest and redemption 
187.12 	premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income 
187.13 	and profits, if any, earned or realized on any such investment may also be applied to the 
187.14 	payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow 
187.15 	have been fully satisfied and carried out, any balance of such the proceeds and interest, 
187.16 	income and profits, if any, earned or realized on the investments thereof may be returned 
187.17 	to the authority for use by it in any lawful manner.

187.18 	Sec. 23. Minnesota Statutes 2024, section 136A.34, subdivision 4, is amended to read:
187.19 		Subd. 4.Additional purpose; improvements. The portion of the proceeds of any such
187.20 	revenue bonds issued for the additional purpose of paying all or any part of the cost of 
187.21 	constructing and acquiring additions, improvements, extensions or enlargements of a project 
187.22 	may be invested or deposited in time deposits as provided in section 136A.32, subdivision 
187.23 	7.

187.24 	Sec. 24. Minnesota Statutes 2024, section 136A.36, is amended to read:
187.25 	136A.36 REVENUES.
187.26 	The authority may fix, revise, charge and collect rates, rents, fees and charges for the 
187.27 	use of and for the services furnished or to be furnished by each project and to may contract 
187.28 	with any person, partnership, association or corporation, or other body, public or private, 
187.29 	in respect thereof. Such The rates, rents, fees, and charges may vary between projects 
187.30 	involving an education facility and projects involving a health care facility and shall be 
187.31 	fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from such
187.32 	the project so as to provide funds sufficient with other revenues, if any:
188.1 	(1) to pay the cost of maintaining, repairing and operating the project and each and every 
188.2 	portion thereof of the project, to the extent that the payment of such the cost has not otherwise 
188.3 	been adequately provided for;
188.4 	(2) to pay the principal of and the interest on outstanding revenue bonds of the authority 
188.5 	issued in respect of such the project as the same shall become due and payable; and
188.6 	(3) to create and maintain reserves required or provided for in any resolution authorizing, 
188.7 	or trust agreement securing, such revenue bonds of the authority. Such The rates, rents, fees 
188.8 	and charges shall not be subject to supervision or regulation by any department, commission, 
188.9 	board, body, bureau or agency of this state other than the authority. A sufficient amount of 
188.10 	the revenues derived in respect of a project, except such part of such the revenues as may 
188.11 	be necessary to pay the cost of maintenance, repair and operation and to provide reserves 
188.12 	and for renewals, replacements, extensions, enlargements and improvements as may be 
188.13 	provided for in the resolution authorizing the issuance of any revenue bonds of the authority 
188.14 	or in the trust agreement securing the same, shall be set aside at such regular intervals as 
188.15 	may be provided in such the resolution or trust agreement in a sinking or other similar fund 
188.16 	which that is hereby pledged to, and charged with, the payment of the principal of and the 
188.17 	interest on such revenue bonds as the same shall become due, and the redemption price or 
188.18 	the purchase price of bonds retired by call or purchase as therein provided. Such The pledge 
188.19 	shall be valid and binding from the time when the pledge is made; the rates, rents, fees and 
188.20 	charges and other revenues or other moneys so pledged and thereafter received by the 
188.21 	authority shall immediately be subject to the lien of such the pledge without physical delivery 
188.22 	thereof or further act, and the lien of any such pledge shall be valid and binding as against 
188.23 	all parties having claims of any kind against the authority, irrespective of whether such the
188.24 	parties have notice thereof of the pledge. Neither the resolution nor any trust agreement by 
188.25 	which a pledge is created need be filed or recorded except in the records of the authority. 
188.26 	The use and disposition of moneys to the credit of such a sinking or other similar fund shall 
188.27 	be subject to the provisions of the resolution authorizing the issuance of such bonds or of 
188.28 	such a trust agreement. Except as may otherwise be provided in such the resolution or such
188.29 	trust agreement, such the sinking or other similar fund shall be a fund for all such revenue 
188.30 	bonds issued to finance a project or projects at one or more participating institutions of 
188.31 	higher education without distinction or priority of one over another; provided the authority 
188.32 	in any such resolution or trust agreement may provide that such the sinking or other similar 
188.33 	fund shall be the fund for a particular project at an a participating institution of higher 
188.34 	education and for the revenue bonds issued to finance a particular project and may, 
188.35 	additionally, permit and provide for the issuance of revenue bonds having a subordinate 
189.1 	lien in respect of the security herein authorized to other revenue bonds of the authority and, 
189.2 	in such case, the authority may create separate or other similar funds in respect of such the
189.3 	subordinate lien bonds.

189.4 	Sec. 25. Minnesota Statutes 2024, section 136A.38, is amended to read:
189.5 	136A.38 BONDS ELIGIBLE FOR INVESTMENT.
189.6 	Bonds issued by the authority under the provisions of sections 136A.25 to 136A.42, are 
189.7 	hereby made securities in which all public officers and public bodies of the state and its 
189.8 	political subdivisions, all insurance companies, trust companies, banking associations, 
189.9 	investment companies, executors, administrators, trustees and other fiduciaries may properly 
189.10 	and legally invest funds, including capital in their control or belonging to them; it being the 
189.11 	purpose of this section to authorize the investment in such bonds of all sinking, insurance, 
189.12 	retirement, compensation, pension and trust funds, whether owned or controlled by private 
189.13 	or public persons or officers; provided, however, that nothing contained in this section may 
189.14 	be construed as relieving any person, firm, or corporation from any duty of exercising due 
189.15 	care in selecting securities for purchase or investment; and provide further, that in no event 
189.16 	shall assets of pension funds of public employees of the state of Minnesota or any of its 
189.17 	agencies, boards or subdivisions, whether publicly or privately administered, be invested 
189.18 	in bonds issued under the provisions of sections 136A.25 to 136A.42. Such The bonds are 
189.19 	hereby constituted "authorized securities" within the meaning and for the purposes of 
189.20 	Minnesota Statutes 1969, section 50.14. Such The bonds are hereby made securities which
189.21 	that may properly and legally be deposited with and received by any state or municipal 
189.22 	officer or any agency or political subdivision of the state for any purpose for which the 
189.23 	deposit of bonds or obligations of the state now or may hereafter be authorized by law.

189.24 	Sec. 26. Minnesota Statutes 2024, section 136A.41, is amended to read:
189.25 	136A.41 CONFLICT OF INTEREST.
189.26 	Notwithstanding any other law to the contrary it shall not be or constitute a conflict of 
189.27 	interest for a trustee, director, officer or employee of any participating institution of higher 
189.28 	education, financial institution, investment banking firm, brokerage firm, commercial bank 
189.29 	or trust company, architecture firm, insurance company, construction company, or any other 
189.30 	firm, person or corporation to serve as a member of the authority, provided such the trustee, 
189.31 	director, officer or employee shall abstain from deliberation, action and vote by the authority 
189.32 	in each instance where the business affiliation of any such trustee, director, officer or 
189.33 	employee is involved.

190.1 	Sec. 27. Minnesota Statutes 2024, section 136A.42, is amended to read:
190.2 	136A.42 ANNUAL REPORT.
190.3 	The authority shall keep an accurate account of all of its activities and all of its receipts 
190.4 	and expenditures and shall annually report to the office. Each year, the authority shall submit 
190.5 	to the Minnesota Historical Society and the Legislative Reference Library a report of the 
190.6 	authority's activities in the previous year, including all financial activities.

190.7 	Sec. 28. Minnesota Statutes 2024, section 136F.67, subdivision 1, is amended to read:
190.8 		Subdivision 1.Authorization. A technical college or a community college must not 
190.9 	seek financing for child care facilities or parking facilities through the Higher Health and
190.10 	Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the 
190.11 	explicit authorization of the board.

190.12 	Sec. 29. Minnesota Statutes 2024, section 354B.20, subdivision 7, is amended to read:
190.13 		Subd. 7.Employing unit. "Employing unit," if the agency employs any persons covered 
190.14 	by the individual retirement account plan under section 354B.211, means:
190.15 	(1) the board;
190.16 	(2) the Minnesota Office of Higher Education; and
190.17 	(3) the Higher Health and Education Facilities Authority.

190.18 	Sec. 30. REVISOR INSTRUCTION.
 190.19 	The revisor of statutes shall renumber the law establishing and governing the Minnesota 
190.20 	Higher Education Facilities Authority, renamed the Minnesota Health and Education 
190.21 	Facilities Authority in this act, as Minnesota Statutes, chapter 15D, coded in Minnesota 
190.22 	Statutes, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor of 
190.23 	statutes shall also duplicate any required definitions from Minnesota Statutes, chapter 136A, 
190.24 	revise any statutory cross-references consistent with the recoding, and report the history in 
190.25 	Minnesota Statutes, chapter 15D. The revisor of statutes shall change "Minnesota Higher 
190.26 	Education Facilities Authority" to "Minnesota Health and Higher Education Facilities 
190.27 	Authority" where it appears in Minnesota Statutes.

190.28 	Sec. 31. REPEALER.
 190.29 	Minnesota Statutes 2024, section 136A.29, subdivision 4, is repealed.

191.1 	ARTICLE 5
191.2 	PHARMACY BENEFITS

191.3 	Section 1. [62Q.83] FORMULARY CHANGES.
191.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
191.5 	the meanings given.
191.6 	(b) "Drug" has the meaning given in section 151.01, subdivision 5.
191.7 	(c) "Enrollee" has the meaning given in section 62Q.01, subdivision 2b.
191.8 	(d) "Formulary" means a current list of covered prescription drug products that is subject 
191.9 	to periodic review and update.
191.10 	(e) "Health plan" has the meaning given in section 62Q.01, subdivision 3.
191.11 	(f) "Pharmacy benefit manager" has the meaning given in section 62W.02, subdivision 
191.12 	15.
191.13 	(g) "Prescription" has the meaning given in section 151.01, subdivision 16a.
191.14 		Subd. 2.Formulary changes. (a) Except as provided in paragraphs (b) and (c), a health 
191.15 	plan must not, with respect to an enrollee who was previously prescribed the drug during 
191.16 	the plan year, remove a drug from the health plan's formulary or place a drug in a benefit 
191.17 	category that increases the enrollee's cost for the duration of the enrollee's plan year.
191.18 	(b) Paragraph (a) does not apply if a health plan changes the health plan's formulary:
191.19 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
191.20 	Administration (FDA);
191.21 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
191.22 	(3) when an independent source of research, clinical guidelines, or evidence-based 
191.23 	standards has issued drug-specific warnings or recommended changes with respect to a 
191.24 	drug's use for reasons related to previously unknown and imminent patient harm.
191.25 	(c) Paragraph (a) does not apply if a health plan removes a brand name drug from the 
191.26 	health plan's formulary or places a brand name drug in a benefit category that increases the 
191.27 	enrollee's cost if the health plan:
191.28 	(1) adds to the health plan's formulary a generic or multisource brand name drug rated 
191.29 	as therapeutically equivalent according to the FDA Orange Book, a biologic drug rated as 
191.30 	interchangeable according to the FDA Purple Book, or a biosimilar at the same or lower 
191.31 	cost to the enrollee; and
192.1 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

192.2 	EFFECTIVE DATE. This section is effective January 1, 2026, and applies to health 
192.3 	plans offered, sold, issued, or renewed on or after that date.

192.4 	Sec. 2. Minnesota Statutes 2024, section 256B.0625, subdivision 13, is amended to read:
192.5 		Subd. 13.Drugs. (a) Medical assistance covers drugs, except for fertility drugs when 
192.6 	specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed 
192.7 	by a licensed pharmacist, by a physician enrolled in the medical assistance program as a 
192.8 	dispensing physician, or by a physician, a physician assistant, or an advanced practice 
192.9 	registered nurse employed by or under contract with a community health board as defined 
192.10 	in section 145A.02, subdivision 5, for the purposes of communicable disease control.
192.11 	(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply unless 
192.12 	authorized by the commissioner or as provided in paragraph (h) or the drug appears on the 
192.13 	90-day supply list published by the commissioner. The 90-day supply list shall be published 
192.14 	by the commissioner on the department's website. The commissioner may add to, delete 
192.15 	from, and otherwise modify the 90-day supply list after providing public notice and the 
192.16 	opportunity for a 15-day public comment period. The 90-day supply list may include 
192.17 	cost-effective generic drugs and shall not include controlled substances.
192.18 	(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical 
192.19 	ingredient" is defined as a substance that is represented for use in a drug and when used in 
192.20 	the manufacturing, processing, or packaging of a drug becomes an active ingredient of the 
192.21 	drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle 
192.22 	for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and 
192.23 	excipients which are included in the medical assistance formulary. Medical assistance covers 
192.24 	selected active pharmaceutical ingredients and excipients used in compounded prescriptions 
192.25 	when the compounded combination is specifically approved by the commissioner or when 
192.26 	a commercially available product:
192.27 	(1) is not a therapeutic option for the patient;
192.28 	(2) does not exist in the same combination of active ingredients in the same strengths 
192.29 	as the compounded prescription; and
192.30 	(3) cannot be used in place of the active pharmaceutical ingredient in the compounded 
192.31 	prescription.
192.32 	(d) Medical assistance covers the following over-the-counter drugs when prescribed by 
192.33 	a licensed practitioner or by a licensed pharmacist who meets standards established by the 
193.1 	commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family 
193.2 	planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults 
193.3 	with documented vitamin deficiencies, vitamins for children under the age of seven and 
193.4 	pregnant or nursing women, and any other over-the-counter drug identified by the 
193.5 	commissioner, in consultation with the Formulary Committee, as necessary, appropriate, 
193.6 	and cost-effective for the treatment of certain specified chronic diseases, conditions, or 
193.7 	disorders, and this determination shall not be subject to the requirements of chapter 14. A 
193.8 	pharmacist may prescribe over-the-counter medications as provided under this paragraph 
193.9 	for purposes of receiving reimbursement under Medicaid. When prescribing over-the-counter 
193.10 	drugs under this paragraph, licensed pharmacists must consult with the recipient to determine 
193.11 	necessity, provide drug counseling, review drug therapy for potential adverse interactions, 
193.12 	and make referrals as needed to other health care professionals.
193.13 	(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable 
193.14 	under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and 
193.15 	Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible 
193.16 	for drug coverage as defined in the Medicare Prescription Drug, Improvement, and 
193.17 	Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these 
193.18 	individuals, medical assistance may cover drugs from the drug classes listed in United States 
193.19 	Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to 
193.20 	13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall 
193.21 	not be covered.
193.22 	(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing 
193.23 	Program and dispensed by 340B covered entities and ambulatory pharmacies under common 
193.24 	ownership of the 340B covered entity. Medical assistance does not cover drugs acquired 
193.25 	through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.
193.26 	(g) Notwithstanding paragraph (a), medical assistance covers self-administered hormonal 
193.27 	contraceptives prescribed and dispensed by a licensed pharmacist in accordance with section 
193.28 	151.37, subdivision 14; nicotine replacement medications prescribed and dispensed by a 
193.29 	licensed pharmacist in accordance with section 151.37, subdivision 15; and opiate antagonists 
193.30 	used for the treatment of an acute opiate overdose prescribed and dispensed by a licensed 
193.31 	pharmacist in accordance with section 151.37, subdivision 16.
193.32 	(h) Medical assistance coverage for a prescription contraceptive must provide a 12-month 
193.33 	supply for any prescription contraceptive if a 12-month supply is prescribed by the 
193.34 	prescribing health care provider. The prescribing health care provider must determine the 
193.35 	appropriate duration for which to prescribe the prescription contraceptives, up to 12 months. 
194.1 	For purposes of this paragraph, "prescription contraceptive" means any drug or device that 
194.2 	requires a prescription and is approved by the Food and Drug Administration to prevent 
194.3 	pregnancy. Prescription contraceptive does not include an emergency contraceptive drug 
194.4 	approved to prevent pregnancy when administered after sexual contact. For purposes of this 
194.5 	paragraph, "health plan" has the meaning provided in section 62Q.01, subdivision 3.
194.6 	(i) Notwithstanding a removal of a drug from the drug formulary under subdivision 13d, 
194.7 	except as provided in paragraphs (j) and (k), medical assistance covers a drug, with respect 
194.8 	to an enrollee who was previously prescribed the drug during the calendar year when the 
194.9 	drug was on the formulary, at the same level until January 1 of the calendar year following 
194.10 	the year in which the commissioner removed the drug from the formulary.
194.11 	(j) Paragraph (i) does not apply if the commissioner changes the drug formulary:
194.12 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
194.13 	Administration (FDA);
194.14 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
194.15 	(3) when an independent source of research, clinical guidelines, or evidence-based 
194.16 	standards has issued drug-specific warnings or recommended changes with respect to a 
194.17 	drug's use for reasons related to previously unknown and imminent patient harm.
194.18 	(k) Paragraph (i) does not apply if the commissioner removes a brand name drug from 
194.19 	the formulary if the commissioner:
194.20 	(1) adds to the formulary a generic or multisource brand name drug rated as 
194.21 	therapeutically equivalent according to the FDA Orange Book, or a biologic drug rated as 
194.22 	interchangeable according to the FDA Purple Book, at the same or lower cost to the enrollee; 
194.23 	and
194.24 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

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

194.28 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, subdivision 13c, is amended to read:
194.29 		Subd. 13c.Formulary Committee. The commissioner, after receiving recommendations 
194.30 	from professional medical associations and professional pharmacy associations, and consumer 
194.31 	groups shall designate a Formulary Committee to carry out duties as described in subdivisions 
194.32 	13 to 13g. The Formulary Committee shall be comprised of at least five licensed physicians 
195.1 	actively engaged in the practice of medicine in Minnesota, one of whom is an actively 
195.2 	practicing psychiatrist, one of whom specializes in the diagnosis and treatment of rare 
195.3 	diseases, one of whom specializes in pediatrics, and one of whom actively treats persons 
195.4 	with disabilities; at least three licensed pharmacists actively engaged in the practice of 
195.5 	pharmacy in Minnesota, one of whom practices outside the metropolitan counties listed in 
195.6 	section 473.121, subdivision 4, one of whom practices in the metropolitan counties listed 
195.7 	in section 473.121, subdivision 4, and one of whom is a practicing hospital pharmacist; at 
195.8 	least two consumer representatives, all of whom must have a personal or professional 
195.9 	connection to medical assistance; and one representative designated by the Minnesota Rare 
195.10 	Disease Advisory Council established under section 256.4835; the remainder to be made 
195.11 	up of health care professionals who are licensed in their field and have recognized knowledge 
195.12 	in the clinically appropriate prescribing, dispensing, and monitoring of covered outpatient 
195.13 	drugs. Members of the Formulary Committee shall not be employed by the Department of 
195.14 	Human Services or have a personal interest in a pharmaceutical company, pharmacy benefits 
195.15 	manager, health plan company, or their affiliate organizations, but the committee shall be 
195.16 	staffed by an employee of the department who shall serve as an ex officio, nonvoting member 
195.17 	of the committee. For the purposes of this subdivision, "personal interest" means that a 
195.18 	person owns at least five percent of the voting interest or equity interest in the entity, the 
195.19 	equity interest owned by a person represents at least five percent of that person's net worth, 
195.20 	or more than five percent of a person's gross income for the preceding year was derived 
195.21 	from the entity. A committee member must notify the committee of any potential conflict 
195.22 	of interest and recuse themselves from any communications, discussion, or vote on any 
195.23 	matter where a conflict of interest exists. A conflict of interest alone, without a personal 
195.24 	interest, does not preclude an applicant from serving as a member of the Formulary 
195.25 	Committee. Members may be removed from the committee for cause after a recommendation 
195.26 	for removal by a majority of the committee membership. For the purposes of this subdivision, 
195.27 	"cause" does not include offering a differing or dissenting clinical opinion on a drug or drug 
195.28 	class. The department's medical director shall also serve as an ex officio, nonvoting member 
195.29 	for the committee. Committee members shall serve three-year terms and may be reappointed 
195.30 	twice by the commissioner. The committee members shall vote on a chair and vice chair 
195.31 	from among their membership. The chair shall preside over all committee meetings, and 
195.32 	the vice chair shall preside over the meetings if the chair is not present. The Formulary 
195.33 	Committee shall meet at least three times per year. The commissioner may require more 
195.34 	frequent Formulary Committee meetings as needed. An honorarium of $100 per meeting 
195.35 	and reimbursement for mileage shall be paid to each committee member in attendance. The 
195.36 	Formulary Committee expires June 30, 2027 2029. The Formulary Committee is subject to 
196.1 	the Open Meeting Law under chapter 13D. For purposes of establishing a quorum to transact 
196.2 	business, vacant committee member positions do not count in the calculation as long as at 
196.3 	least 60 percent of the committee member positions are filled.

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

196.5 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, subdivision 13d, is amended to read:
196.6 		Subd. 13d.Drug formulary. (a) The commissioner shall establish a drug formulary. Its 
196.7 	establishment and publication shall not be subject to the requirements of the Administrative 
196.8 	Procedure Act, but the Formulary Committee shall review and comment on the formulary 
196.9 	contents.
196.10 	(b) The formulary shall not include:
196.11 	(1) drugs, active pharmaceutical ingredients, or products for which there is no federal 
196.12 	funding;
196.13 	(2) over-the-counter drugs, except as provided in subdivision 13;
196.14 	(3) drugs or active pharmaceutical ingredients when used for the treatment of impotence 
196.15 	or erectile dysfunction;
196.16 	(4) drugs or active pharmaceutical ingredients for which medical value has not been 
196.17 	established;
196.18 	(5) drugs from manufacturers who have not signed a rebate agreement with the 
196.19 	Department of Health and Human Services pursuant to section 1927 of title XIX of the 
196.20 	Social Security Act; and
196.21 	(6) medical cannabis flower as defined in section 342.01, subdivision 54, or medical 
196.22 	cannabinoid products as defined in section 342.01, subdivision 52.
196.23 	(c) If a single-source drug used by at least two percent of the fee-for-service medical 
196.24 	assistance recipients is removed from the formulary due to the failure of the manufacturer 
196.25 	to sign a rebate agreement with the Department of Health and Human Services, the 
196.26 	commissioner shall notify prescribing practitioners within 30 days of receiving notification 
196.27 	from the Centers for Medicare and Medicaid Services (CMS) that a rebate agreement was 
196.28 	not signed.
196.29 	(d) Within ten calendar days of any commissioner determination to change the drug 
196.30 	formulary, the commissioner must provide written notice to all enrollees affected by the 
196.31 	change. The notice must include a description of the change, the reason for the change, and 
196.32 	the date the change will become effective.
197.1 	(e) By January 15, 2026, and annually thereafter, the commissioner of human services 
197.2 	must provide a report with data and information related to the effects on enrollees of drug 
197.3 	formulary changes made in the prior calendar year to the chairs and ranking minority 
197.4 	members of the legislative committees with jurisdiction over health and human services 
197.5 	policy and finance. The report must include but is not limited to data and information on:
197.6 	(1) the number of times the formulary was changed;
197.7 	(2) the reasons for the formulary changes and how frequently the formulary was changed 
197.8 	for each reason;
197.9 	(3) the drugs that were removed from the formulary;
197.10 	(4) for each drug that was removed from the formulary, the number of enrollees who 
197.11 	were prescribed that drug when it was removed;
197.12 	(5) for each drug that was removed from the formulary, whether a therapeutically 
197.13 	equivalent drug was added;
197.14 	(6) the drugs that were added to the formulary;
197.15 	(7) the fiscal impacts to the Department of Human Services resulting from the changes 
197.16 	to the formulary; and
197.17 	(8) enrollee populations or medical conditions disproportionately affected by the 
197.18 	formulary changes.

197.19 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 13e, is amended to read:
197.20 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
197.21 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
197.22 	usual and customary price charged to the public. The usual and customary price means the 
197.23 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
197.24 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
197.25 	a prescription savings club or prescription discount club administered by the pharmacy or 
197.26 	pharmacy chain, unless the prescription savings club or prescription discount club is one 
197.27 	in which an individual pays a recurring monthly access fee for unlimited access to a defined 
197.28 	list of drugs for which the pharmacy does not bill the member or a payer on a 
197.29 	per-standard-transaction basis. The amount of payment basis must be reduced to reflect all 
197.30 	discount amounts applied to the charge by any third-party provider/insurer agreement or 
197.31 	contract for submitted charges to medical assistance programs. The net submitted charge 
197.32 	may not be greater than the patient liability for the service. The professional dispensing fee 
198.1 	shall be $11.55 for prescriptions filled with legend drugs meeting the definition of "covered 
198.2 	outpatient drugs" according to United States Code, title 42, section 1396r-8(k)(2). The 
198.3 	dispensing fee for intravenous solutions that must be compounded by the pharmacist shall 
198.4 	be $11.55 per claim. The professional dispensing fee for prescriptions filled with 
198.5 	over-the-counter drugs meeting the definition of covered outpatient drugs shall be $11.55 
198.6 	for dispensed quantities equal to or greater than the number of units contained in the 
198.7 	manufacturer's original package. The professional dispensing fee shall be prorated based 
198.8 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
198.9 	than the number of units contained in the manufacturer's original package. The pharmacy 
198.10 	dispensing fee for prescribed over-the-counter drugs not meeting the definition of covered 
198.11 	outpatient drugs shall be $3.65 for quantities equal to or greater than the number of units 
198.12 	contained in the manufacturer's original package and shall be prorated based on the 
198.13 	percentage of the package dispensed when the pharmacy dispenses a quantity less than the 
198.14 	number of units contained in the manufacturer's original package. The ingredient cost for 
198.15 	a drug is the lower of the National Average Drug Acquisition Cost (NADAC) shall be used 
198.16 	to determine the ingredient cost of a drug, the Minnesota actual acquisition cost (MNAAC) 
198.17 	as defined in paragraph (i), or the maximum allowable cost. For drugs for which a NADAC, 
198.18 	a MNAAC, or a maximum allowable cost is not reported, the commissioner shall estimate 
198.19 	the ingredient cost at the wholesale acquisition cost minus two percent. The ingredient cost 
198.20 	of a drug for a provider participating in the federal 340B Drug Pricing Program shall be 
198.21 	either the 340B Drug Pricing Program ceiling price established by the Health Resources 
198.22 	and Services Administration or, the NADAC, the MNAAC, or the maximum allowable 
198.23 	cost, whichever is lower. Wholesale acquisition cost is defined as the manufacturer's list 
198.24 	price for a drug or biological to wholesalers or direct purchasers in the United States, not 
198.25 	including prompt pay or other discounts, rebates, or reductions in price, for the most recent 
198.26 	month for which information is available, as reported in wholesale price guides or other 
198.27 	publications of drug or biological pricing data. The maximum allowable cost of a multisource
198.28 	drug may be set by the commissioner and it shall be comparable to the actual acquisition 
198.29 	cost of the drug product and no higher than the NADAC of the generic product. Establishment 
198.30 	of the amount of payment for drugs shall not be subject to the requirements of the 
198.31 	Administrative Procedure Act.
198.32 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
198.33 	an automated drug distribution system meeting the requirements of section 151.58, or a 
198.34 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
198.35 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
198.36 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
199.1 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
199.2 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
199.3 	pharmacy must use a billing period not less than one calendar month or 30 days.
199.4 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
199.5 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
199.6 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
199.7 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
199.8 	is less than a 30-day supply.
199.9 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the lesser 
199.10 	of the NADAC of the generic product, the MNAAC of the generic product, or the maximum 
199.11 	allowable cost of the generic product established by the commissioner unless prior 
199.12 	authorization for the brand name product has been granted according to the criteria 
199.13 	established by the Drug Formulary Committee as required by subdivision 13f, paragraph 
199.14 	(a), and the prescriber has indicated "dispense as written" on the prescription in a manner 
199.15 	consistent with section 151.21, subdivision 2. If prior authorization is granted, the ingredient 
199.16 	cost shall be the lesser of the NADAC of the brand name product, the MNAAC of the brand 
199.17 	name product, or the maximum allowable cost of the brand name product. A generic product 
199.18 	includes a generic drug, an authorized generic drug, and a biosimilar biological product as 
199.19 	defined in Code of Federal Regulations, title 42, section 423.4. A brand name product 
199.20 	includes a brand name drug, a brand name biological product, and an unbranded biological 
199.21 	product as defined in Code of Federal Regulations, title 42, section 423.4.
199.22 	(e) The basis for determining the amount of payment for drugs administered in an 
199.23 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
199.24 	provider, 106 percent of the average sales price as determined by the United States 
199.25 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
199.26 	federal Social Security Act, the specialty pharmacy rate MNAAC, or the maximum allowable 
199.27 	cost set by the commissioner. If the average sales price is, the MNAAC, and the maximum 
199.28 	allowable cost are unavailable, the amount of payment must be lower of the usual and 
199.29 	customary cost submitted by the provider, or the wholesale acquisition cost, the specialty 
199.30 	pharmacy rate, or the maximum allowable cost set by the commissioner. The commissioner 
199.31 	shall discount the payment rate for drugs obtained through the federal 340B Drug Pricing 
199.32 	Program by 28.6 percent. The payment for drugs administered in an outpatient setting shall 
199.33 	be made to the administering facility or practitioner. A retail or specialty pharmacy dispensing 
199.34 	a drug for administration in an outpatient setting is not eligible for direct reimbursement.
200.1 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
200.2 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
200.3 	commissioner may require individuals enrolled in the health care programs administered 
200.4 	by the department to obtain specialty pharmacy products from providers with whom the 
200.5 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
200.6 	defined as those used by a small number of recipients or recipients with complex and chronic 
200.7 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
200.8 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
200.9 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
200.10 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
200.11 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
200.12 	require complex care. The commissioner shall consult with the Formulary Committee to 
200.13 	develop a list of specialty pharmacy products subject to maximum allowable cost 
200.14 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
200.15 	commissioner shall take into consideration the population served by specialty pharmacy 
200.16 	products, the current delivery system and standard of care in the state, and access to care 
200.17 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
200.18 	to prevent access to care issues.
200.19 	(g) (f) Home infusion therapy services provided by home infusion therapy pharmacies 
200.20 	must be paid at rates according to subdivision 8d.
200.21 	(h) (g) The commissioner shall contract with a vendor to conduct a cost of dispensing 
200.22 	survey for all pharmacies that are physically located in the state of Minnesota that dispense 
200.23 	outpatient drugs under medical assistance. The commissioner shall ensure that the vendor 
200.24 	has prior experience in conducting cost of dispensing surveys. Each pharmacy enrolled with 
200.25 	the department to dispense outpatient prescription drugs to fee-for-service members must 
200.26 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
200.27 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
200.28 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
200.29 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
200.30 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
200.31 	medical assistance prescription volume, median, median weighted by total prescription 
200.32 	volume, and median weighted by total medical assistance prescription volume. The 
200.33 	commissioner shall post a copy of the final cost of dispensing survey report on the 
200.34 	department's website. The initial survey must be completed no later than January 1, 2021, 
200.35 	and repeated every three two years. The commissioner shall provide a summary of the 
201.1 	results of each cost of dispensing survey and provide recommendations for any changes to 
201.2 	the dispensing fee to the chairs and ranking minority members of the legislative committees 
201.3 	with jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
201.4 	256.01, subdivision 42, this paragraph does not expire.
201.5 	(i) (h) The commissioner shall increase the ingredient cost reimbursement calculated in 
201.6 	paragraphs (a) and (f) (e) by 1.8 percent the amount of the wholesale drug distributor tax
201.7 	for prescription and nonprescription drugs subject to the wholesale drug distributor tax 
201.8 	under section 295.52.
201.9 	(i) The commissioner shall contract with a vendor to create MNAAC through a periodic 
201.10 	survey of enrolled pharmacy providers. Each pharmacy enrolled with the department to 
201.11 	dispense outpatient prescription drugs must respond to the periodic surveys. The 
201.12 	commissioner may sanction a pharmacy under section 256B.064 for failure to respond. The 
201.13 	current MNAAC rates must be publicly available on the department's or vendor's website. 
201.14 	The commissioner must require that the MNAAC is measured and calculated at least 
201.15 	quarterly, but the MNAAC can be measured and calculated more frequently. The 
201.16 	commissioner must ensure that the vendor has an appeal process available to providers for 
201.17 	the time between the measurement and calculation of the periodically updated MNAAC 
201.18 	rates if price fluctuations result in a MNAAC that is lower than the price at which enrolled 
201.19 	providers can purchase a drug. Establishment of the MNAAC and survey reporting 
201.20 	requirements shall not be subject to the requirements of the Administrative Procedure Act. 
201.21 	Data provided by pharmacies for the measurement and calculation of the MNAAC are 
201.22 	nonpublic data as defined in section 13.02, subdivision 9.

201.23 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
201.24 	whichever is later. The commissioner of human services must notify the revisor of statutes 
201.25 	when federal approval is obtained.

201.26 	Sec. 6. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
201.27 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
201.28 	any individual or entity that receives payments from medical assistance or provides goods 
201.29 	or services for which payment is made from medical assistance for any of the following: 
201.30 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
201.31 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
201.32 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
201.33 	a pattern of making false statements of material facts for the purpose of obtaining greater 
201.34 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
202.1 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
202.2 	regular business hours to examine all records necessary to disclose the extent of services 
202.3 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
202.4 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
202.5 	errors in the maintenance of health service or financial records for which a fine was imposed 
202.6 	or after issuance of a warning by the commissioner; and (8) any reason for which an 
202.7 	individual or entity could be excluded from participation in the Medicare program under 
202.8 	section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the purposes of this 
202.9 	section, goods or services for which payment is made from medical assistance includes but 
202.10 	is not limited to care and services identified in section 256B.0625 or provided pursuant to 
202.11 	any federally approved waiver.
202.12 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
202.13 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
202.14 	(h) (g).
202.15 	(c) The commissioner may impose sanctions against a pharmacy provider for failure to 
202.16 	respond to a Minnesota drug acquisition cost survey under section 256B.0625, subdivision 
202.17 	13e, paragraph (i).

202.18 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
202.19 	whichever is later. The commissioner of human services must notify the revisor of statutes 
202.20 	when federal approval is obtained.

202.21 	Sec. 7. Minnesota Statutes 2024, section 256B.69, subdivision 6d, is amended to read:
202.22 		Subd. 6d.Prescription drugs. (a) The commissioner may exclude or modify coverage 
202.23 	for prescription drugs from the prepaid managed care contracts entered into under this 
202.24 	section in order to increase savings to the state by collecting additional prescription drug 
202.25 	rebates.
202.26 	(b) The contracts must maintain incentives for the managed care plan to manage drug 
202.27 	costs and utilization and may require that the managed care plans maintain an open drug 
202.28 	formulary. In order to manage drug costs and utilization, the contracts may authorize the 
202.29 	managed care plans to use preferred drug lists and prior authorization. The contracts must 
202.30 	require that the managed care plans enter into contracts with the state's selected pharmacy 
202.31 	benefit manager vendor to administer the pharmacy benefit.
202.32 	(c) This subdivision is contingent on federal approval of the managed care contract 
202.33 	changes and the collection of additional prescription drug rebates.

203.1 	Sec. 8. Minnesota Statutes 2024, section 256B.69, is amended by adding a subdivision to 
203.2 	read:
203.3 		Subd. 6i.Directed pharmacy dispensing payment. (a) The commissioner shall provide 
203.4 	a directed pharmacy dispensing payment of $4.50 per filled prescription to eligible outpatient 
203.5 	retail pharmacies in Minnesota to improve and maintain access to pharmaceutical services 
203.6 	in rural and underserved areas of Minnesota. Managed care and county-based purchasing 
203.7 	plans delivering services under section 256B.69 or 256B.692, and any pharmacy benefit 
203.8 	managers under contract with these entities, must pay the directed pharmacy dispensing 
203.9 	payment to eligible outpatient retail pharmacies for drugs dispensed to medical assistance 
203.10 	enrollees. The directed pharmacy dispensing payment is in addition to, and must not supplant 
203.11 	or reduce, any other dispensing fee paid by these entities to the pharmacy. Entities paying 
203.12 	the directed pharmacy dispensing payment must not reduce other payments to the pharmacy 
203.13 	as a result of payment of the directed pharmacy dispensing payment.
203.14 	(b) For purposes of this subdivision, "eligible outpatient retail pharmacy" means an 
203.15 	outpatient retail pharmacy licensed under chapter 151 that is not owned, either directly or 
203.16 	indirectly or through an affiliate or subsidiary, by a pharmacy benefit manager licensed 
203.17 	under chapter 62W or a health carrier, as defined in section 62A.011, subdivision 2, and 
203.18 	that:
203.19 	(1) is located in a medically underserved area or primarily serves a medically underserved 
203.20 	population, as defined by the United States Department of Health and Human Services 
203.21 	Health Resources and Services Administration under United States Code, title 42, section 
203.22 	254; or
203.23 	(2) shares common ownership with 12 or fewer Minnesota pharmacies.
203.24 	(c) In order to receive the directed pharmacy dispensing payment, a pharmacy must 
203.25 	submit to the commissioner a form, developed by the commissioner, attesting that the 
203.26 	pharmacy meets the requirements of paragraph (b).
203.27 	(d) Managed care and county-based purchasing plans, and any pharmacy benefit managers 
203.28 	under contract with these entities, shall pay the directed pharmacy dispensing payment to 
203.29 	eligible outpatient retail pharmacies. The commissioner shall monitor the effect of this 
203.30 	requirement on access to pharmaceutical services in rural and underserved areas of 
203.31 	Minnesota. If, for any contract year, federal approval is not received for this subdivision, 
203.32 	the commissioner must adjust the capitation rates paid to managed care plans and 
203.33 	county-based purchasing plans for that contract year to reflect removal of this subdivision. 
203.34 	Contracts between managed care plans and county-based purchasing plans, and any pharmacy 
204.1 	benefit managers under contract with these entities, and providers to whom this subdivision 
204.2 	applies, must allow recovery of payments from those providers if capitation rates are adjusted 
204.3 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
204.4 	to any increase in rates that results from this subdivision. This subdivision expires if federal 
204.5 	approval is not received for this subdivision at any time.
204.6 	(e) This subdivision expires on December 31, 2026.

204.7 	EFFECTIVE DATE. This section is effective July 1, 2025, or upon federal approval, 
204.8 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
204.9 	when federal approval is obtained.

204.10 	Sec. 9. [256B.696] PRESCRIPTION DRUGS; STATE PHARMACY BENEFIT 
204.11 	MANAGER.
204.12 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
204.13 	the meanings given.
204.14 	(b) "Managed care plans" means health plans and county-based purchasing organizations 
204.15 	providing coverage to medical assistance and MinnesotaCare enrollees under the managed 
204.16 	care delivery system.
204.17 	(c) "Managed care enrollees" means medical assistance and MinnesotaCare enrollees 
204.18 	receiving coverage from managed care plans.
204.19 	(d) "State pharmacy benefit manager" means the pharmacy benefit manager selected 
204.20 	pursuant to the procurement process in subdivision 2.
204.21 		Subd. 2.Procurement process. (a) The commissioner must, through a competitive 
204.22 	procurement process in compliance with paragraph (b), select a single pharmacy benefit 
204.23 	manager to comply with the requirements set forth in subdivision 3. The single pharmacy 
204.24 	benefit manager selected under this subdivision must be a prepaid ambulatory health plan, 
204.25 	as defined in Code of Federal Regulations, title 42, section 438.2.
204.26 	(b) When selecting the single pharmacy benefit manager, the commissioner must:
204.27 	(1) accept applications for entities seeking to become the single pharmacy benefit 
204.28 	manager;
204.29 	(2) establish eligibility criteria an entity must meet in order to become the single pharmacy 
204.30 	benefit manager; and
204.31 	(3) enter into a master contract with a single pharmacy benefit manager.
205.1 	(c) The contract required under paragraph (b), clause (3), must include provisions that 
205.2 	prohibit the single pharmacy benefit manager from:
205.3 	(1) requiring, enticing, or coercing an enrollee to obtain pharmacy services, including 
205.4 	a prescription drug, from a pharmacy owned or otherwise affiliated with the single pharmacy 
205.5 	benefit manager;
205.6 	(2) communicating to an enrollee, in any manner, that the enrollee is required to obtain 
205.7 	pharmacy services or have a prescription dispensed at, or pharmacy services provided by, 
205.8 	a particular pharmacy owned or affiliated with the single pharmacy benefit manager if there 
205.9 	are other nonaffiliated pharmacies that have the ability to dispense the medication or provide 
205.10 	the services and are also in network;
205.11 	(3) requiring an enrollee to obtain pharmacy services, including a prescription drug, 
205.12 	exclusively through a mail order pharmacy;
205.13 	(4) directly or indirectly retroactively denying or reducing a claim or aggregate of claims 
205.14 	for pharmacy services, including prescription drugs, after adjudication of the claim or 
205.15 	aggregate of claims;
205.16 	(5) paying or reimbursing a pharmacy or pharmacist for the ingredient drug product 
205.17 	component of pharmacist services, including a prescription drug, less than the lesser of 
205.18 	national average drug acquisition cost; the Minnesota actual acquisition cost (MNAAC) as 
205.19 	defined in section 256B.0625, subdivision 13e, paragraph (i); or the maximum allowable 
205.20 	cost as defined in section 62W.08 of that pharmacy service or prescription drug, or, if the 
205.21 	national average drug acquisition cost is unavailable, the wholesale acquisition cost minus 
205.22 	two percent at the time the drug is administered or dispensed, plus a professional dispensing 
205.23 	fee equal to the amount of the dispensing fee if it were determined pursuant to section 
205.24 	256B.0625, subdivision 13e; and
205.25 	(6) denying a pharmacy or pharmacist the right to participate as a contract provider under 
205.26 	the health plan if the pharmacy or pharmacist agrees to provide pharmacy services, including 
205.27 	but not limited to prescription drugs that meet the terms and requirements set forth by the 
205.28 	health plan and agrees to the terms of reimbursement set forth by the health plan company.
205.29 	(d) Applicants for the single pharmacy benefit manager must disclose to the commissioner 
205.30 	the following during the procurement process:
205.31 	(1) any activity, policy, practice, contract, or arrangement of the single pharmacy benefit 
205.32 	manager that may directly or indirectly present any conflict of interest with the pharmacy 
206.1 	benefit manager's relationship with or obligation to the Department of Human Services, a 
206.2 	health plan company, or a county-based purchasing organization;
206.3 	(2) all common ownership, members of a board of directors, managers, or other control 
206.4 	of the pharmacy benefit manager or any of the pharmacy benefit manager's affiliated 
206.5 	companies with:
206.6 	(i) a health plan company administering medical assistance or MinnesotaCare benefits 
206.7 	in Minnesota or an affiliate of the health plan company;
206.8 	(ii) a county-based purchasing organization;
206.9 	(iii) an entity that contracts on behalf of a pharmacy or any pharmacy services 
206.10 	administration organization and its affiliates;
206.11 	(iv) a drug wholesaler or distributor and its affiliates;
206.12 	(v) a third-party payer and its affiliates; or
206.13 	(vi) a pharmacy and its affiliates;
206.14 	(3) any direct or indirect fees, charges, or any kind of assessments imposed by the 
206.15 	pharmacy benefit manager on pharmacies licensed in Minnesota with which the pharmacy 
206.16 	benefit manager shares common ownership, management, or control, or that are owned, 
206.17 	managed, or controlled by any of the pharmacy benefit manager's affiliated companies;
206.18 	(4) any direct or indirect fees, charges, or any kind of assessments imposed by the 
206.19 	pharmacy benefit manager on pharmacies licensed in Minnesota; and
206.20 	(5) any financial terms and arrangements between the pharmacy benefit manager and a 
206.21 	prescription drug manufacturer or labeler, including formulary management, drug substitution 
206.22 	programs, educational support claims processing, or data sales fees.
206.23 		Subd. 3.Drug coverage. (a) The commissioner may require the state pharmacy benefit 
206.24 	manager to modify utilization review limitations, requirements, and strategies imposed by 
206.25 	managed care plans on prescription drug coverage.
206.26 	(b) The state pharmacy benefit manager is responsible for processing all point of sale 
206.27 	outpatient pharmacy claims under the managed care delivery system. Managed care plans 
206.28 	must use the state pharmacy benefit manager pursuant to the terms of the master contract 
206.29 	required under subdivision 2, paragraph (b), clause (3). The pharmacy benefit manager 
206.30 	selected is the exclusive pharmacy benefit manager used by health plan companies and 
206.31 	county-based purchasing organizations when providing coverage to enrollees. The 
207.1 	commissioner may require the managed care plans and state pharmacy benefit manager to 
207.2 	directly exchange data and files for members enrolled with managed care plans.
207.3 	(c) All payment arrangements between the Department of Human Services, managed 
207.4 	care plans, and the state pharmacy benefit manager must comply with state and federal 
207.5 	statutes, regulations adopted by the Centers for Medicare and Medicaid Services, and any 
207.6 	other agreement between the department and the Centers for Medicare and Medicaid Services. 
207.7 	The commissioner may change a payment arrangement to comply with this paragraph.
207.8 	(d) The commissioner must administer and oversee this section to:
207.9 	(1) ensure proper administration of prescription drug benefits for managed care enrollees; 
207.10 	and
207.11 	(2) increase the transparency of prescription drug prices and other information for the 
207.12 	benefit of pharmacies.
207.13 		Subd. 4.Prescription drug disclosures. (a) The state pharmacy benefit manager must, 
207.14 	on request from the commissioner, disclose to the commissioner all sources of payment the 
207.15 	pharmacy benefit manager receives for prescribed drugs, including drug rebates, discounts, 
207.16 	credits, clawbacks, fees, grants, chargebacks, reimbursements, or other financial benefits 
207.17 	or payments related to services provided for a managed care plan.
207.18 	(b) Each managed care plan must disclose to the commissioner, in the format specified 
207.19 	by the commissioner, the entity's administrative costs associated with providing pharmacy 
207.20 	services under the managed care delivery system.
207.21 	(c) The state pharmacy benefit manager must provide a written quarterly report to the 
207.22 	commissioner containing the following information from the immediately preceding quarter:
207.23 	(1) the prices the state pharmacy benefit manager negotiated for prescribed drugs under 
207.24 	the managed care delivery system. The prices must include any rebates the state pharmacy 
207.25 	benefit manager received from the drug manufacturer;
207.26 	(2) unredacted copies of contracts between the state pharmacy benefit manager and 
207.27 	enrolled pharmacies;
207.28 	(3) any rebate amounts the state pharmacy benefit manager passed on to individual 
207.29 	pharmacies;
207.30 	(4) any changes to the information previously disclosed in accordance with subdivision 
207.31 	2, paragraph (d); and
207.32 	(5) any other information required by the commissioner.
208.1 	(d) The commissioner may request and collect additional information and clinical data 
208.2 	from the state pharmacy benefit manager.
208.3 	(e) At the time of contract execution, renewal, or modification, the commissioner must 
208.4 	modify the reporting requirements under its managed care contracts as necessary to meet 
208.5 	the requirements of this subdivision.
208.6 		Subd. 5.Program authority. (a) To accomplish the requirements of subdivision 3, 
208.7 	paragraph (d), the commissioner, in consultation with the Formulary Committee established 
208.8 	under section 256B.0625, subdivision 13c, has the authority to:
208.9 	(1) adopt or develop a preferred drug list for managed care plans;
208.10 	(2) at the commissioner's discretion, engage in price negotiations with prescription drug 
208.11 	manufacturers, wholesalers, or group purchasing organizations in place of the state pharmacy 
208.12 	benefit manager to obtain price discounts and rebates for prescription drugs for managed 
208.13 	care enrollees; and
208.14 	(3) develop and manage a drug formulary for managed care plans.
208.15 	(b) The commissioner may contract with one or more entities to perform any of the 
208.16 	functions described in paragraph (a).
208.17 		Subd. 6.Pharmacies. The commissioner may review contracts between the state 
208.18 	pharmacy benefit manager and pharmacies for compliance with this section and the master 
208.19 	contract required under subdivision 2, paragraph (b), clause (3). The commissioner may 
208.20 	amend any term or condition of a contract that does not comply with this section or the 
208.21 	master contract.
208.22 		Subd. 7.Federal approval. The commissioner must seek any necessary federal approvals 
208.23 	to implement this section.

208.24 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval, 
208.25 	whichever is later, except that subdivision 7 is effective the day following final enactment. 
208.26 	The commissioner of human services shall notify the revisor of statutes when federal approval 
208.27 	is obtained.

209.1 	ARTICLE 6
209.2 	HUMAN SERVICES HEALTH CARE FINANCE

209.3 	Section 1. Minnesota Statutes 2024, section 62A.673, subdivision 2, is amended to read:
209.4 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
209.5 	have the meanings given.
209.6 	(b) "Distant site" means a site at which a health care provider is located while providing 
209.7 	health care services or consultations by means of telehealth.
209.8 	(c) "Health care provider" means a health care professional who is licensed or registered 
209.9 	by the state to perform health care services within the provider's scope of practice and in 
209.10 	accordance with state law. A health care provider includes a mental health professional 
209.11 	under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04, 
209.12 	subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator 
209.13 	under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11, 
209.14 	subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
209.15 	(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
209.16 	(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan 
209.17 	includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental 
209.18 	plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed 
209.19 	to pay benefits directly to the policy holder.
209.20 	(f) "Originating site" means a site at which a patient is located at the time health care 
209.21 	services are provided to the patient by means of telehealth. For purposes of store-and-forward 
209.22 	technology, the originating site also means the location at which a health care provider 
209.23 	transfers or transmits information to the distant site.
209.24 	(g) "Store-and-forward technology" means the asynchronous electronic transfer or 
209.25 	transmission of a patient's medical information or data from an originating site to a distant 
209.26 	site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
209.27 	(h) "Telehealth" means the delivery of health care services or consultations through the 
209.28 	use of real time two-way interactive audio and visual communications to provide or support 
209.29 	health care delivery and facilitate the assessment, diagnosis, consultation, treatment, 
209.30 	education, and care management of a patient's health care. Telehealth includes the application 
209.31 	of secure video conferencing, store-and-forward technology, and synchronous interactions 
209.32 	between a patient located at an originating site and a health care provider located at a distant 
209.33 	site. Until July 1, 2025 2028, telehealth also includes audio-only communication between 
210.1 	a health care provider and a patient in accordance with subdivision 6, paragraph (b) if the 
210.2 	communication is a scheduled appointment and the standard of care for that particular 
210.3 	service can be met through the use of audio-only communication or if, for substance use 
210.4 	disorder treatment services and mental health care services delivered through telehealth by 
210.5 	means of audio-only communication, the communication was initiated by the enrollee while 
210.6 	in an emergency or crisis situation and a scheduled appointment was not possible due to 
210.7 	the need of an immediate response. Telehealth does not include communication between 
210.8 	health care providers that consists solely of a telephone conversation, email, or facsimile 
210.9 	transmission. Telehealth does not include communication between a health care provider 
210.10 	and a patient that consists solely of an email or facsimile transmission. Telehealth does not 
210.11 	include telemonitoring services as defined in paragraph (i).
210.12 	(i) "Telemonitoring services" means the remote monitoring of clinical data related to 
210.13 	the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits 
210.14 	the data electronically to a health care provider for analysis. Telemonitoring is intended to 
210.15 	collect an enrollee's health-related data for the purpose of assisting a health care provider 
210.16 	in assessing and monitoring the enrollee's medical condition or status.

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

210.18 	Sec. 2. Minnesota Statutes 2024, section 62M.17, subdivision 2, is amended to read:
210.19 		Subd. 2.Effect of change in prior authorization clinical criteria. (a) If, during a plan 
210.20 	year, or a calendar year for fee-for-service providers under chapters 256B and 256L, a 
210.21 	utilization review organization changes coverage terms for a health care service or the 
210.22 	clinical criteria used to conduct prior authorizations for a health care service, the change in 
210.23 	coverage terms or change in clinical criteria shall not apply until the next plan year, or the 
210.24 	next calendar year for fee-for-service providers under chapters 256B and 256L, for any 
210.25 	enrollee who received prior authorization for a health care service using the coverage terms 
210.26 	or clinical criteria in effect before the effective date of the change.
210.27 	(b) Paragraph (a) does not apply if a utilization review organization changes coverage 
210.28 	terms for a drug or device that has been deemed unsafe by the United States Food and Drug 
210.29 	Administration (FDA); that has been withdrawn by either the FDA or the product 
210.30 	manufacturer; or when an independent source of research, clinical guidelines, or 
210.31 	evidence-based standards has issued drug- or device-specific warnings or recommended 
210.32 	changes in drug or device usage.
210.33 	(c) Paragraph (a) does not apply if a utilization review organization changes coverage 
210.34 	terms for a service or the clinical criteria used to conduct prior authorizations for a service 
211.1 	when an independent source of research, clinical guidelines, or evidence-based standards 
211.2 	has recommended changes in usage of the service for reasons related to patient harm. This 
211.3 	paragraph expires December 31, 2025, for health benefit plans offered, sold, issued, or 
211.4 	renewed on or after that date.
211.5 	(d) Effective January 1, 2026, and applicable to health benefit plans offered, sold, issued, 
211.6 	or renewed on or after that date, paragraph (a) does not apply if a utilization review 
211.7 	organization changes coverage terms for a service or the clinical criteria used to conduct 
211.8 	prior authorizations for a service when an independent source of research, clinical guidelines, 
211.9 	or evidence-based standards has recommended changes in usage of the service for reasons 
211.10 	related to previously unknown and imminent patient harm.
211.11 	(e) Paragraph (a) does not apply if a utilization review organization removes a brand 
211.12 	name drug from its formulary or places a brand name drug in a benefit category that increases 
211.13 	the enrollee's cost, provided the utilization review organization (1) adds to its formulary a 
211.14 	generic or multisource brand name drug rated as therapeutically equivalent according to 
211.15 	the FDA Orange Book, or a biologic drug rated as interchangeable according to the FDA 
211.16 	Purple Book, at a lower cost to the enrollee, and (2) provides at least a 60-day notice to 
211.17 	prescribers, pharmacists, and affected enrollees.

211.18 	Sec. 3. Minnesota Statutes 2024, section 256.9657, is amended by adding a subdivision 
211.19 	to read:
211.20 		Subd. 2b.Hospital assessment. (a) For purposes of this subdivision, the following terms 
211.21 	have the meanings given:
211.22 	(1) "eligible hospital" means a hospital licensed under section 144.50 and located in 
211.23 	Minnesota;
211.24 	(2) "net outpatient revenue" means the value reflecting total outpatient revenue less 
211.25 	Medicare revenue as calculated from Worksheet G of the hospital's most recent Medicare 
211.26 	cost report filed and showing in the Healthcare Cost Report Information System (HCRIS) 
211.27 	as of August 1 of each year; and
211.28 	(3) "total patient days" means the value reflecting total hospital inpatient days as reported 
211.29 	on Worksheet S-3 of the hospital's most recent Medicare cost report filed and showing in 
211.30 	HCRIS as of August 1 of each year.
211.31 	(b) Subject to paragraphs (m) to (o), each eligible hospital must pay to the hospital 
211.32 	directed payment program account assessments in an aggregate annual amount equal to the 
211.33 	sum of the following:
212.1 	(1) $120.22 multiplied by total patient days; and
212.2 	(2) 5.96 percent of the hospital's net outpatient revenue.
212.3 	(c) The assessment amount for calendar years 2026 and 2027 must be based on the total 
212.4 	patient days and net outpatient revenue in 2021 for each eligible hospital.
212.5 	(d) The commissioner may, after consultation with the Minnesota Hospital Association, 
212.6 	modify the rates of assessment in paragraph (b) as necessary to comply with federal law, 
212.7 	obtain or maintain a waiver under Code of Federal Regulations, title 42, section 433.72, or 
212.8 	to otherwise maximize under this section federal financial participation for medical assistance. 
212.9 	Notwithstanding the foregoing authorization to maximize federal financial participation for 
212.10 	medical assistance, the commissioner must reduce the rates of assessment in paragraph (b) 
212.11 	as necessary to ensure:
212.12 	(1) the state's aggregated health care-related taxes on inpatient hospital services do not 
212.13 	exceed five percent of the net patient revenue attributable to those services; and
212.14 	(2) the state's aggregated health care-related taxes on outpatient hospital services do not 
212.15 	exceed five percent of the net patient revenue attributable to those services.
212.16 	(e) Eligible hospitals must pay the annual assessment amount under paragraph (b) to the 
212.17 	commissioner by paying four equal quarterly assessments. Eligible hospitals must pay the 
212.18 	quarterly assessments by January 1, April 1, July 1, and October 1 each year. Eligible 
212.19 	hospitals must pay the assessments in the form and manner specified by the commissioner. 
212.20 	An eligible hospital is prohibited from paying a quarterly assessment until the eligible 
212.21 	hospital has received the applicable invoice under paragraph (f). The commissioner may 
212.22 	make the assessment retroactive to the first quarter for which federal approval is effective.
212.23 	(f) The commissioner must provide eligible hospitals with an invoice by December 1 
212.24 	for the assessment due January 1, March 1 for the assessment due April 1, June 1 for the 
212.25 	assessment due July 1, and September 1 for the assessment due October 1 each year.
212.26 	(g) The commissioner must notify each eligible hospital of its estimated annual assessment 
212.27 	amount for the subsequent calendar year by October 15 each year.
212.28 	(h) If any of the dates for assessments or invoices in paragraphs (e) to (g) fall on a 
212.29 	holiday, the applicable date is the next business day.
212.30 	(i) A hospital is not required to pay an assessment under this subdivision until the start 
212.31 	of the first full fiscal year the hospital is an eligible hospital. A hospital that has merged 
212.32 	with another hospital must have the hospital's assessment revised at the start of the first full 
213.1 	fiscal year after the merger is complete. A closed hospital is retroactively responsible for 
213.2 	assessments owed for services provided through the final date of operations.
213.3 	(j) If the commissioner determines that a hospital has underpaid or overpaid an 
213.4 	assessment, the commissioner must notify the hospital of the unpaid assessment or of any 
213.5 	refund due.
213.6 	(k) Revenue from an assessment under this subdivision must only be used by the 
213.7 	commissioner to pay the nonfederal share of the directed payment program under section 
213.8 	256B.1974.
213.9 	(l) The commissioner is prohibited from collecting any assessment under this subdivision 
213.10 	during any period of time when:
213.11 	(1) federal financial participation is unavailable, disallowed, or reduced by at least 15 
213.12 	percent relative to the state's share of medical assistance as of April 1, 2025; or
213.13 	(2) a directed payment under section 256B.1974 is not approved by the Centers for 
213.14 	Medicare and Medicaid Services.
213.15 	(m) The commissioner must make the following discounts from the inpatient portion of 
213.16 	the assessment under paragraph (b), clause (1), in the stated amount or as necessary to 
213.17 	achieve federal approval of the assessment in this section:
213.18 	(1) for Hennepin Healthcare, a discount of 25 percent off the inpatient portion of the 
213.19 	assessment rate;
213.20 	(2) for Mayo Rochester, a discount of ten percent off the inpatient portion of the 
213.21 	assessment rate; and
213.22 	(3) for Gillette Children's Hospital, a discount of 90 percent off the inpatient portion of 
213.23 	the assessment rate.
213.24 	(n) The commissioner must make the following discounts from the outpatient portion 
213.25 	of the assessment under paragraph (b), clause (2), in the stated amount or as necessary to 
213.26 	achieve federal approval of the assessment in this section:
213.27 	(1) for each critical access hospital or independent hospital located outside a city of the 
213.28 	first class and paid under the Medicare prospective payment system, a discount of 40 percent 
213.29 	off the outpatient portion of the assessment rate;
213.30 	(2) for Gillette Children's Hospital, a discount of 90 percent off the outpatient portion 
213.31 	of the assessment rate;
214.1 	(3) for Hennepin Healthcare, a discount of 60 percent off the outpatient portion of the 
214.2 	assessment rate; and
214.3 	(4) for Mayo Rochester, a discount of 20 percent off the outpatient portion of the 
214.4 	assessment rate.
214.5 	(o) The commissioner must fully exempt the following from the assessment in this 
214.6 	section:
214.7 	(1) federal Indian Health Service facilities;
214.8 	(2) state-owned or state-operated regional treatment centers and all state-operated services;
214.9 	(3) federal Veterans Administration Medical Centers; and
214.10 	(4) long-term acute care hospitals.
214.11 	(p) If the federal share of the hospital directed payment program under section 256B.1974 
214.12 	is increased as the result of an increase to the federal medical assistance percentage, then 
214.13 	the commissioner must reduce the assessment on a uniform percentage basis across eligible 
214.14 	hospitals on which the assessment is imposed, such that the aggregate amount collected 
214.15 	from hospitals under this subdivision does not exceed the total amount needed to maintain 
214.16 	the same aggregate state and federal funding level for the directed payments authorized by 
214.17 	section 256B.1974.
214.18 	(q) Hospitals subject to the assessment under this subdivision must submit to the 
214.19 	commissioner on an annual basis, in the form and manner specified by the commissioner 
214.20 	in consultation with the Minnesota Hospital Association, all documentation necessary to 
214.21 	determine the assessment amounts under this subdivision.
214.22 	(r) Any disproportionate share hospital payments that are supplanted due to the 
214.23 	implementation of the hospital directed payment program under section 256B.1974 must 
214.24 	be redirected into the hospital directed payment program as an offset to the assessment 
214.25 	under this section owed by all medical assistance disproportionate share hospitals as defined 
214.26 	in section 256.969, subdivision 9, and reduce their assessments on a uniform basis.
214.27 	(s) Any future state funding sources identified and used toward the hospital directed 
214.28 	payment program under section 256B.1974 may be used to offset the assessment under this 
214.29 	section.

214.30 	EFFECTIVE DATE. (a) This section is effective the later of January 1, 2026, or federal 
214.31 	approval of all of the following:
214.32 	(1) this section; and
215.1 	(2) the amendments in this act to Minnesota Statutes, sections 256B.1973 and 256B.1974.
215.2 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
215.3 	approval for all amendments set forth in paragraph (a) is obtained.

215.4 	Sec. 4. Minnesota Statutes 2024, section 256.969, subdivision 2b, is amended to read:
215.5 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
215.6 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
215.7 	to the following:
215.8 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
215.9 	methodology;
215.10 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
215.11 	under subdivision 25;
215.12 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
215.13 	distinct parts as defined by Medicare shall be paid according to the methodology under 
215.14 	subdivision 12; and
215.15 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
215.16 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
215.17 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
215.18 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
215.19 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
215.20 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
215.21 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
215.22 	period as other hospitals.
215.23 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
215.24 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
215.25 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
215.26 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
215.27 	manner similar to Medicare. The base year or years for the rates effective November 1, 
215.28 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
215.29 	ensuring that the total aggregate payments under the rebased system are equal to the total 
215.30 	aggregate payments that were made for the same number and types of services in the base 
215.31 	year. Separate budget neutrality calculations shall be determined for payments made to 
215.32 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
215.33 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
216.1 	rebased during the entire base period shall be incorporated into the budget neutrality 
216.2 	calculation.
216.3 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
216.4 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
216.5 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
216.6 	a five percent increase or decrease from the base year payments for any hospital. Any 
216.7 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
216.8 	shall maintain budget neutrality as described in paragraph (c).
216.9 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
216.10 	additional adjustments to the rebased rates, and when evaluating whether additional 
216.11 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
216.12 	following:
216.13 	(1) pediatric services;
216.14 	(2) behavioral health services;
216.15 	(3) trauma services as defined by the National Uniform Billing Committee;
216.16 	(4) transplant services;
216.17 	(5) obstetric services, newborn services, and behavioral health services provided by 
216.18 	hospitals outside the seven-county metropolitan area;
216.19 	(6) outlier admissions;
216.20 	(7) low-volume providers; and
216.21 	(8) services provided by small rural hospitals that are not critical access hospitals.
216.22 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
216.23 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
216.24 	admission is standardized by the applicable Medicare wage index and adjusted by the 
216.25 	hospital's disproportionate population adjustment;
216.26 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
216.27 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
216.28 	October 31, 2014;
216.29 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
216.30 	inpatient services covered by medical assistance; and
217.1 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
217.2 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
217.3 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
217.4 	program in effect during the base year or years. In determining hospital payment rates for 
217.5 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
217.6 	methods and allowable costs of the Medicare program in effect during the base year or 
217.7 	years.
217.8 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
217.9 	the rates established under paragraph (c), and any adjustments made to the rates under 
217.10 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
217.11 	total aggregate payments for the same number and types of services under the rebased rates 
217.12 	are equal to the total aggregate payments made during calendar year 2013.
217.13 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
217.14 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
217.15 	in hospital costs between the existing base year or years and the next base year or years. In 
217.16 	any year that inpatient claims volume falls below the threshold required to ensure a 
217.17 	statistically valid sample of claims, the commissioner may combine claims data from two 
217.18 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
217.19 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
217.20 	a base year or part of a base year if the base year includes more than one year. Changes in 
217.21 	costs between base years shall be measured using the lower of the hospital cost index defined 
217.22 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
217.23 	claim. The commissioner shall establish the base year for each rebasing period considering 
217.24 	the most recent year or years for which filed Medicare cost reports are available, except 
217.25 	that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019. 
217.26 	The estimated change in the average payment per hospital discharge resulting from a 
217.27 	scheduled rebasing must be calculated and made available to the legislature by January 15 
217.28 	of each year in which rebasing is scheduled to occur, and must include by hospital the 
217.29 	differential in payment rates compared to the individual hospital's costs.
217.30 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
217.31 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
217.32 	using a new cost-based methodology. The commissioner shall establish within the 
217.33 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
217.34 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
217.35 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
218.1 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
218.2 	decrease from the base year payments for any hospital, except a hospital that had payments 
218.3 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
218.4 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
218.5 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
218.6 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
218.7 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
218.8 	following criteria:
218.9 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
218.10 	shall have a rate set that equals 85 percent of their base year costs;
218.11 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
218.12 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
218.13 	base year costs; and
218.14 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
218.15 	shall have a rate set that equals 100 percent of their base year costs.
218.16 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
218.17 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
218.18 	methodology may include, but are not limited to:
218.19 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
218.20 	hospital's charges to the medical assistance program;
218.21 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
218.22 	hospital's payments received from the medical assistance program for the care of medical 
218.23 	assistance patients;
218.24 	(3) the ratio between the hospital's charges to the medical assistance program and the 
218.25 	hospital's payments received from the medical assistance program for the care of medical 
218.26 	assistance patients;
218.27 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
218.28 	(5) the proportion of that hospital's costs that are administrative and trends in 
218.29 	administrative costs; and
218.30 	(6) geographic location.
218.31 	(k) Subject to subdivision 2g, effective for discharges occurring on or after January 1, 
218.32 	2024, the rates paid to hospitals described in paragraph (a), clauses (2) to (4), must include 
219.1 	a rate factor specific to each hospital that qualifies for a medical education and research 
219.2 	cost distribution under section 62J.692, subdivision 4, paragraph (a).
219.3 	(l) Effective for discharges occurring on or after January 1, 2028, or on or after the date 
219.4 	of federal approval, whichever is later, the commissioner must increase by an annual 
219.5 	aggregate amount of $10,000,000:
219.6 	(1) payments for inpatient behavioral health services provided by hospitals paid under 
219.7 	the DRG methodology by increasing the adjustment for behavioral health services under 
219.8 	section 256.969, subdivision 2b, paragraph (e); and
219.9 	(2) capitation payments made to managed care plans and county-based purchasing plans 
219.10 	to reflect the rate increase provided under this paragraph. Managed care and county-based 
219.11 	purchasing plans must use the capitation rate increase provided under this clause to increase 
219.12 	payment rates for inpatient behavioral health services provided by hospitals paid under the 
219.13 	DRG methodology. The commissioner must monitor the effect of this rate increase on 
219.14 	enrollee access to behavioral health services. If for any contract year federal approval is not 
219.15 	received for this clause, the commissioner must adjust the capitation rates paid to managed 
219.16 	care plans and county-based purchasing plans for that contract year to reflect the removal 
219.17 	of this clause. Contracts between managed care plans and county-based purchasing plans 
219.18 	and providers to whom this paragraph applies must allow recovery of payments from those 
219.19 	providers if capitation rates are adjusted in accordance with this clause. Payment recoveries 
219.20 	must not exceed the amount equal to any increase in rates that results from this paragraph.

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

219.22 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 3b, is amended to read:
219.23 		Subd. 3b.Telehealth services. (a) Medical assistance covers medically necessary services 
219.24 	and consultations delivered by a health care provider through telehealth in the same manner 
219.25 	as if the service or consultation was delivered through in-person contact. Services or 
219.26 	consultations delivered through telehealth shall be paid at the full allowable rate.
219.27 	(b) The commissioner may establish criteria that a health care provider must attest to in 
219.28 	order to demonstrate the safety or efficacy of delivering a particular service through 
219.29 	telehealth. The attestation may include that the health care provider:
219.30 	(1) has identified the categories or types of services the health care provider will provide 
219.31 	through telehealth;
219.32 	(2) has written policies and procedures specific to services delivered through telehealth 
219.33 	that are regularly reviewed and updated;
220.1 	(3) has policies and procedures that adequately address patient safety before, during, 
220.2 	and after the service is delivered through telehealth;
220.3 	(4) has established protocols addressing how and when to discontinue telehealth services; 
220.4 	and
220.5 	(5) has an established quality assurance process related to delivering services through 
220.6 	telehealth.
220.7 	(c) As a condition of payment, a licensed health care provider must document each 
220.8 	occurrence of a health service delivered through telehealth to a medical assistance enrollee. 
220.9 	Health care service records for services delivered through telehealth must meet the 
220.10 	requirements set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and must 
220.11 	document:
220.12 	(1) the type of service delivered through telehealth;
220.13 	(2) the time the service began and the time the service ended, including an a.m. and p.m. 
220.14 	designation;
220.15 	(3) the health care provider's basis for determining that telehealth is an appropriate and 
220.16 	effective means for delivering the service to the enrollee;
220.17 	(4) the mode of transmission used to deliver the service through telehealth and records 
220.18 	evidencing that a particular mode of transmission was utilized;
220.19 	(5) the location of the originating site and the distant site;
220.20 	(6) if the claim for payment is based on a physician's consultation with another physician 
220.21 	through telehealth, the written opinion from the consulting physician providing the telehealth 
220.22 	consultation; and
220.23 	(7) compliance with the criteria attested to by the health care provider in accordance 
220.24 	with paragraph (b).
220.25 	(d) Telehealth visits provided through audio and visual communication or accessible 
220.26 	video-based platforms may be used to satisfy the face-to-face requirement for reimbursement 
220.27 	under the payment methods that apply to a federally qualified health center, rural health 
220.28 	clinic, Indian health service, 638 tribal clinic, and certified community behavioral health 
220.29 	clinic, if the service would have otherwise qualified for payment if performed in person.
220.30 	(e) For purposes of this subdivision, unless otherwise covered under this chapter:
220.31 	(1) "telehealth" means the delivery of health care services or consultations using real-time 
220.32 	two-way interactive audio and visual communication or accessible telehealth video-based 
221.1 	platforms to provide or support health care delivery and facilitate the assessment, diagnosis, 
221.2 	consultation, treatment, education, and care management of a patient's health care. Telehealth 
221.3 	includes: the application of secure video conferencing consisting of a real-time, full-motion 
221.4 	synchronized video; store-and-forward technology; and synchronous interactions, between 
221.5 	a patient located at an originating site and a health care provider located at a distant site. 
221.6 	Telehealth does not include communication between health care providers, or between a 
221.7 	health care provider and a patient that consists solely of an audio-only communication, 
221.8 	email, or facsimile transmission or as specified by law, except that from July 1, 2025, to 
221.9 	July 1, 2028, telehealth includes communication between a health care provider and a patient 
221.10 	that solely consists of audio-only communication;
221.11 	(2) "health care provider" means a health care provider as defined under section 62A.673; 
221.12 	a community paramedic as defined under section 144E.001, subdivision 5f; a community 
221.13 	health worker who meets the criteria under subdivision 49, paragraph (a); a mental health 
221.14 	certified peer specialist under section 245I.04, subdivision 10; a mental health certified 
221.15 	family peer specialist under section 245I.04, subdivision 12; a mental health rehabilitation 
221.16 	worker under section 245I.04, subdivision 14; a mental health behavioral aide under section 
221.17 	245I.04, subdivision 16; a treatment coordinator under section 245G.11, subdivision 7; an 
221.18 	alcohol and drug counselor under section 245G.11, subdivision 5; or a recovery peer under 
221.19 	section 245G.11, subdivision 8; and
221.20 	(3) "originating site," "distant site," and "store-and-forward technology" have the 
221.21 	meanings given in section 62A.673, subdivision 2.

221.22 	EFFECTIVE DATE. This section is effective July 1, 2025, or upon federal approval, 
221.23 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
221.24 	when federal approval is obtained.

221.25 	Sec. 6. Minnesota Statutes 2024, section 256B.0625, subdivision 17a, is amended to read:
221.26 		Subd. 17a.Payment for ambulance services. (a) Medical assistance covers ambulance 
221.27 	services. Providers shall bill ambulance services according to Medicare criteria. 
221.28 	Nonemergency ambulance services shall not be paid as emergencies. Effective for services 
221.29 	rendered on or after July 1, 2001, medical assistance payments for ambulance services shall 
221.30 	be paid at the Medicare reimbursement rate or at the medical assistance payment rate in 
221.31 	effect on July 1, 2000, whichever is greater.
221.32 	(b) Effective for services provided on or after July 1, 2016, medical assistance payment 
221.33 	rates for ambulance services identified in this paragraph are increased by five percent. 
221.34 	Capitation payments made to managed care plans and county-based purchasing plans for 
222.1 	ambulance services provided on or after January 1, 2017, shall be increased to reflect this 
222.2 	rate increase. The increased rate described in this paragraph applies to ambulance service 
222.3 	providers whose base of operations as defined in section 144E.10 is located:
222.4 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
222.5 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
222.6 	(2) within a municipality with a population of less than 1,000.
222.7 	(c) Effective for services provided statewide on or after January 1, 2026, medical 
222.8 	assistance payment rates for ambulance services are increased by 15 percent. Capitation 
222.9 	payments made to managed care plans and county-based purchasing plans for ambulance 
222.10 	services provided on or after January 1, 2026, must be increased to reflect this rate increase.
222.11 	(d) Effective for services provided on or after January 1, 2026, medical assistance 
222.12 	payment rates for ambulance services identified in this paragraph are increased by ten 
222.13 	percent. Capitation payments made to managed care plans and county-based purchasing 
222.14 	plans for ambulance services provided on or after January 1, 2026, must be increased to 
222.15 	reflect this rate increase. The increased rate described in this paragraph applies to ambulance 
222.16 	service providers whose base of operations, as defined in section 144E.001, is located:
222.17 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
222.18 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
222.19 	(2) within a municipality with a population of less than 1,000.
222.20 	(c) (e) Effective for the first day of each calendar quarter in which the price of gasoline 
222.21 	as posted publicly by the United States Energy Information Administration exceeds $3.00 
222.22 	per gallon, the commissioner shall adjust the rate paid per mile in paragraph (a) by one 
222.23 	percent up or down for every increase or decrease of ten cents for the price of gasoline. The 
222.24 	increase or decrease must be calculated using a base gasoline price of $3.00. The percentage 
222.25 	increase or decrease must be calculated using the average of the most recently available 
222.26 	price of all grades of gasoline for Minnesota as posted publicly by the United States Energy 
222.27 	Information Administration.
222.28 	(d) (f) Managed care plans and county-based purchasing plans must provide a fuel 
222.29 	adjustment for ambulance services rates when fuel exceeds $3 per gallon. If, for any contract 
222.30 	year, federal approval is not received for this paragraph, the commissioner must adjust the 
222.31 	capitation rates paid to managed care plans and county-based purchasing plans for that 
222.32 	contract year to reflect the removal of this provision. Contracts between managed care plans 
222.33 	and county-based purchasing plans and providers to whom this paragraph applies must 
223.1 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
223.2 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
223.3 	in rates that results from this paragraph. This paragraph expires if federal approval is not 
223.4 	received for this paragraph at any time.

223.5 	Sec. 7. Minnesota Statutes 2024, section 256B.0625, subdivision 25c, is amended to read:
223.6 		Subd. 25c.Applicability of utilization review provisions. (a) Effective January 1, 
223.7 	2026, the following provisions of chapter 62M apply to the commissioner when delivering 
223.8 	services under chapters 256B and 256L: 62M.02, subdivisions 1 to 5, 7 to 12, 13, 14 to 18, 
223.9 	and 21; 62M.04; 62M.05, subdivisions 1 to 4; 62M.06, subdivisions 1 to 3; 62M.07; 
223.10 	62M.072; 62M.09; 62M.10; 62M.12; and 62M.17, subdivision 2; and 62M.18.
223.11 	(b) By April 1, 2026, and each April 1 thereafter, managed care plans and county-based 
223.12 	purchasing plans when the plan is providing coverage to enrollees under chapter 256B or 
223.13 	256L, and the commissioner when delivering services under chapters 256B and 256L, must 
223.14 	post on the entity's public website the following data for the immediately preceding calendar 
223.15 	year for each health plan or program:
223.16 	(1) the number of prior authorization requests for which an authorization was issued;
223.17 	(2) the number of prior authorization requests for which an adverse determination was 
223.18 	issued and sorted by:
223.19 	(i) health care service;
223.20 	(ii) whether the adverse determination was appealed; and
223.21 	(iii) whether the adverse determination was upheld or reversed on appeal;
223.22 	(3) the number of prior authorization requests that were submitted electronically and 
223.23 	not by facsimile or email or other method pursuant to section 62J.497; and
223.24 	(4) the reasons for prior authorization denial, including but not limited to:
223.25 	(i) the patient did not meet prior authorization criteria;
223.26 	(ii) the provider submitted incomplete information to the utilization review organization;
223.27 	(iii) a change in treatment program; and
223.28 	(iv) the patient is no longer covered by the plan or program.
223.29 	(c) All information posted under paragraph (b) must be written in easily understandable 
223.30 	language.

224.1 	Sec. 8. Minnesota Statutes 2024, section 256B.0625, subdivision 30, is amended to read:
224.2 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic services, 
224.3 	federally qualified health center services, nonprofit community health clinic services, and 
224.4 	public health clinic services. Rural health clinic services and federally qualified health center 
224.5 	services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and 
224.6 	(C). Payment for rural health clinic and federally qualified health center services shall be 
224.7 	made according to applicable federal law and regulation.
224.8 	(b) A federally qualified health center (FQHC) that is beginning initial operation shall 
224.9 	submit an estimate of budgeted costs and visits for the initial reporting period in the form 
224.10 	and detail required by the commissioner. An FQHC that is already in operation shall submit 
224.11 	an initial report using actual costs and visits for the initial reporting period. Within 90 days 
224.12 	of the end of its reporting period, an FQHC shall submit, in the form and detail required by 
224.13 	the commissioner, a report of its operations, including allowable costs actually incurred for 
224.14 	the period and the actual number of visits for services furnished during the period, and other 
224.15 	information required by the commissioner. FQHCs that file Medicare cost reports shall 
224.16 	provide the commissioner with a copy of the most recent Medicare cost report filed with 
224.17 	the Medicare program intermediary for the reporting year which support the costs claimed 
224.18 	on their cost report to the state.
224.19 	(c) In order to continue cost-based payment under the medical assistance program 
224.20 	according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation 
224.21 	as an essential community provider within six months of final adoption of rules by the 
224.22 	Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and 
224.23 	rural health clinics that have applied for essential community provider status within the 
224.24 	six-month time prescribed, medical assistance payments will continue to be made according 
224.25 	to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural 
224.26 	health clinics that either do not apply within the time specified above or who have had 
224.27 	essential community provider status for three years, medical assistance payments for health 
224.28 	services provided by these entities shall be according to the same rates and conditions 
224.29 	applicable to the same service provided by health care providers that are not FQHCs or rural 
224.30 	health clinics.
224.31 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural 
224.32 	health clinic to make application for an essential community provider designation in order 
224.33 	to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
225.1 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall 
225.2 	be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
225.3 	(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health 
225.4 	clinic may elect to be paid either under the prospective payment system established in United 
225.5 	States Code, title 42, section 1396a(aa), or under an alternative payment methodology 
225.6 	consistent with the requirements of United States Code, title 42, section 1396a(aa), and 
225.7 	approved by the Centers for Medicare and Medicaid Services. The alternative payment 
225.8 	methodology shall be 100 percent of cost as determined according to Medicare cost 
225.9 	principles.
225.10 	(g) Effective for services provided on or after January 1, 2021, all claims for payment 
225.11 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
225.12 	commissioner, according to an annual election by the FQHC or rural health clinic, under 
225.13 	the current prospective payment system described in paragraph (f) or the alternative payment 
225.14 	methodology described in paragraph (l), or, upon federal approval, for FQHCs that are also 
225.15 	urban Indian organizations under Title V of the federal Indian Health Improvement Act, as 
225.16 	provided under paragraph (k).
225.17 	(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
225.18 	(1) has nonprofit status as specified in chapter 317A;
225.19 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
225.20 	(3) is established to provide health services to low-income population groups, uninsured, 
225.21 	high-risk and special needs populations, underserved and other special needs populations;
225.22 	(4) employs professional staff at least one-half of which are familiar with the cultural 
225.23 	background of their clients;
225.24 	(5) charges for services on a sliding fee scale designed to provide assistance to 
225.25 	low-income clients based on current poverty income guidelines and family size; and
225.26 	(6) does not restrict access or services because of a client's financial limitations or public 
225.27 	assistance status and provides no-cost care as needed.
225.28 	(i) Effective for services provided on or after January 1, 2015, all claims for payment 
225.29 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
225.30 	commissioner. the commissioner shall determine the most feasible method for paying claims 
225.31 	from the following options:
226.1 	(1) FQHCs and rural health clinics submit claims directly to the commissioner for 
226.2 	payment, and the commissioner provides claims information for recipients enrolled in a 
226.3 	managed care or county-based purchasing plan to the plan, on a regular basis; or
226.4 	(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed 
226.5 	care or county-based purchasing plan to the plan, and those claims are submitted by the 
226.6 	plan to the commissioner for payment to the clinic.
226.7 	(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate 
226.8 	and pay monthly the proposed managed care supplemental payments to clinics, and clinics 
226.9 	shall conduct a timely review of the payment calculation data in order to finalize all 
226.10 	supplemental payments in accordance with federal law. Any issues arising from a clinic's 
226.11 	review must be reported to the commissioner by January 1, 2017. Upon final agreement 
226.12 	between the commissioner and a clinic on issues identified under this subdivision, and in 
226.13 	accordance with United States Code, title 42, section 1396a(bb), no supplemental payments 
226.14 	for managed care plan or county-based purchasing plan claims for services provided prior 
226.15 	to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are 
226.16 	unable to resolve issues under this subdivision, the parties shall submit the dispute to the 
226.17 	arbitration process under section 14.57.
226.18 	(k) The commissioner shall establish an encounter payment rate that is equivalent to the 
226.19 	all inclusive rate (AIR) payment established by the Indian Health Service and published in 
226.20 	the Federal Register. The encounter rate must be updated annually and must reflect the 
226.21 	changes in the AIR established by the Indian Health Service each calendar year. FQHCs 
226.22 	that are also urban Indian organizations under Title V of the federal Indian Health 
226.23 	Improvement Act may elect to be paid: (1) at the encounter rate established under this 
226.24 	paragraph; (2) under the alternative payment methodology described in paragraph (l); or 
226.25 	(3) under the federally required prospective payment system described in paragraph (f). 
226.26 	FQHCs that elect to be paid at the encounter rate established under this paragraph must 
226.27 	continue to meet all state and federal requirements related to FQHCs and urban Indian 
226.28 	organizations, and must maintain their statuses as FQHCs and urban Indian organizations.
226.29 	(l) All claims for payment of clinic services provided by FQHCs and rural health clinics, 
226.30 	that have elected to be paid under this paragraph, shall be paid by the commissioner according 
226.31 	to the following requirements:
226.32 	(1) the commissioner shall establish a single medical and single dental organization 
226.33 	encounter rate for each FQHC and rural health clinic when applicable;
227.1 	(2) each FQHC and rural health clinic is eligible for same day reimbursement of one 
227.2 	medical and one dental organization encounter rate if eligible medical and dental visits are 
227.3 	provided on the same day;
227.4 	(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance 
227.5 	with current applicable Medicare cost principles, their allowable costs, including direct 
227.6 	patient care costs and patient-related support services. Nonallowable costs include, but are 
227.7 	not limited to:
227.8 	(i) general social services and administrative costs;
227.9 	(ii) retail pharmacy;
227.10 	(iii) patient incentives, food, housing assistance, and utility assistance;
227.11 	(iv) external lab and x-ray;
227.12 	(v) navigation services;
227.13 	(vi) health care taxes;
227.14 	(vii) advertising, public relations, and marketing;
227.15 	(viii) office entertainment costs, food, alcohol, and gifts;
227.16 	(ix) contributions and donations;
227.17 	(x) bad debts or losses on awards or contracts;
227.18 	(xi) fines, penalties, damages, or other settlements;
227.19 	(xii) fundraising, investment management, and associated administrative costs;
227.20 	(xiii) research and associated administrative costs;
227.21 	(xiv) nonpaid workers;
227.22 	(xv) lobbying;
227.23 	(xvi) scholarships and student aid; and
227.24 	(xvii) nonmedical assistance covered services;
227.25 	(4) the commissioner shall review the list of nonallowable costs in the years between 
227.26 	the rebasing process established in clause (5), in consultation with the Minnesota Association 
227.27 	of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall 
227.28 	publish the list and any updates in the Minnesota health care programs provider manual;
228.1 	(5) the initial applicable base year organization encounter rates for FQHCs and rural 
228.2 	health clinics shall be computed for services delivered on or after January 1, 2021, and:
228.3 	(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports 
228.4 	from 2017 and 2018;
228.5 	(ii) must be according to current applicable Medicare cost principles as applicable to 
228.6 	FQHCs and rural health clinics without the application of productivity screens and upper 
228.7 	payment limits or the Medicare prospective payment system FQHC aggregate mean upper 
228.8 	payment limit;
228.9 	(iii) must be subsequently rebased every two years thereafter using the Medicare cost 
228.10 	reports that are three and four years prior to the rebasing year. Years in which organizational 
228.11 	cost or claims volume is reduced or altered due to a pandemic, disease, or other public health 
228.12 	emergency shall not be used as part of a base year when the base year includes more than 
228.13 	one year. The commissioner may use the Medicare cost reports of a year unaffected by a 
228.14 	pandemic, disease, or other public health emergency, or previous two consecutive years, 
228.15 	inflated to the base year as established under item (iv);
228.16 	(iv) must be inflated to the base year using the inflation factor described in clause (6); 
228.17 	and
228.18 	(v) the commissioner must provide for a 60-day appeals process under section 14.57;
228.19 	(6) the commissioner shall annually inflate the applicable organization encounter rates 
228.20 	for FQHCs and rural health clinics from the base year payment rate to the effective date by 
228.21 	using the CMS FQHC Market Basket inflator established under United States Code, title 
228.22 	42, section 1395m(o), less productivity;
228.23 	(7) FQHCs and rural health clinics that have elected the alternative payment methodology 
228.24 	under this paragraph shall submit all necessary documentation required by the commissioner 
228.25 	to compute the rebased organization encounter rates no later than six months following the 
228.26 	date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid 
228.27 	Services;
228.28 	(8) the commissioner shall reimburse FQHCs and rural health clinics an additional 
228.29 	amount relative to their medical and dental organization encounter rates that is attributable 
228.30 	to the tax required to be paid according to section 295.52, if applicable;
228.31 	(9) FQHCs and rural health clinics may submit change of scope requests to the 
228.32 	commissioner if the change of scope would result in an increase or decrease of 2.5 percent 
229.1 	or higher in the medical or dental organization encounter rate currently received by the 
229.2 	FQHC or rural health clinic;
229.3 	(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner 
229.4 	under clause (9) that requires the approval of the scope change by the federal Health 
229.5 	Resources Services Administration:
229.6 	(i) FQHCs and rural health clinics shall submit the change of scope request, including 
229.7 	the start date of services, to the commissioner within seven business days of submission of 
229.8 	the scope change to the federal Health Resources Services Administration;
229.9 	(ii) the commissioner shall establish the effective date of the payment change as the 
229.10 	federal Health Resources Services Administration date of approval of the FQHC's or rural 
229.11 	health clinic's scope change request, or the effective start date of services, whichever is 
229.12 	later; and
229.13 	(iii) within 45 days of one year after the effective date established in item (ii), the 
229.14 	commissioner shall conduct a retroactive review to determine if the actual costs established 
229.15 	under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in 
229.16 	the medical or dental organization encounter rate, and if this is the case, the commissioner 
229.17 	shall revise the rate accordingly and shall adjust payments retrospectively to the effective 
229.18 	date established in item (ii);
229.19 	(11) for change of scope requests that do not require federal Health Resources Services 
229.20 	Administration approval, the FQHC and rural health clinic shall submit the request to the 
229.21 	commissioner before implementing the change, and the effective date of the change is the 
229.22 	date the commissioner received the FQHC's or rural health clinic's request, or the effective 
229.23 	start date of the service, whichever is later. The commissioner shall provide a response to 
229.24 	the FQHC's or rural health clinic's request within 45 days of submission and provide a final 
229.25 	approval within 120 days of submission. This timeline may be waived at the mutual 
229.26 	agreement of the commissioner and the FQHC or rural health clinic if more information is 
229.27 	needed to evaluate the request;
229.28 	(12) the commissioner, when establishing organization encounter rates for new FQHCs 
229.29 	and rural health clinics, shall consider the patient caseload of existing FQHCs and rural 
229.30 	health clinics in a 60-mile radius for organizations established outside of the seven-county 
229.31 	metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan 
229.32 	area. If this information is not available, the commissioner may use Medicare cost reports 
229.33 	or audited financial statements to establish base rates;
230.1 	(13) the commissioner, when establishing organization encounter rates under this section 
230.2 	for FQHCs and rural health clinics resulting from a merger of existing clinics or the 
230.3 	acquisition of an existing clinic by another existing clinic, must use the combined costs and 
230.4 	caseloads from the clinics participating in the merger or acquisition to set the encounter rate 
230.5 	for the new clinic organization resulting from the merger or acquisition. The scope of services 
230.6 	for the newly formed clinic must be inclusive of the scope of services of the clinics 
230.7 	participating in the merger or acquisition;
230.8 	(13) (14) the commissioner shall establish a quality measures workgroup that includes 
230.9 	representatives from the Minnesota Association of Community Health Centers, FQHCs, 
230.10 	and rural health clinics, to evaluate clinical and nonclinical measures; and
230.11 	(14) (15) the commissioner shall not disallow or reduce costs that are related to an 
230.12 	FQHC's or rural health clinic's participation in health care educational programs to the extent 
230.13 	that the costs are not accounted for in the alternative payment methodology encounter rate 
230.14 	established in this paragraph.
230.15 	(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health 
230.16 	center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC. 
230.17 	Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to 
230.18 	a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to 
230.19 	comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish 
230.20 	an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses 
230.21 	the same method and rates applicable to a Tribal facility or health center that does not enroll 
230.22 	as a Tribal FQHC.
230.23 	(n) FQHC reimbursement for mental health targeted case management services is limited 
230.24 	to:
230.25 	(1) only those services described under section 256B.0625, subdivision 20, and provided 
230.26 	in accordance with contracts executed with counties authorized to subcontract for mental 
230.27 	health targeted case management services; and
230.28 	(2) an FQHC's actual incurred costs as separately reported on the cost report submitted 
230.29 	to the Centers for Medicare and Medicaid Services and further identified in reports submitted 
230.30 	to the commissioner.
230.31 	(o) Counties contracting with FQHCs for mental health targeted case management remain 
230.32 	responsible for the nonfederal share of the cost of the provided mental health targeted case 
230.33 	management services. The commissioner must bill each county for the nonfederal share of 
230.34 	the mental health targeted case management costs as reported by the FQHC.

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

231.2 	Sec. 9. Minnesota Statutes 2024, section 256B.0625, subdivision 54, is amended to read:
231.3 		Subd. 54.Services provided in birth centers. (a) Medical assistance covers services 
231.4 	provided in a licensed birth center by a licensed health professional if the service would 
231.5 	otherwise be covered if provided in a hospital.
231.6 	(b) Facility services provided by a birth center shall be paid at the lower of billed charges 
231.7 	or 70 100 percent of the statewide average for a facility payment rate made to a hospital
231.8 	hospital facility fee cost trended to current for an uncomplicated vaginal birth as determined 
231.9 	using the most recent calendar year for which complete claims data is available. If a recipient 
231.10 	is transported from a birth center to a hospital prior to the delivery, the payment for facility 
231.11 	services to the birth center shall be the lower of billed charges or 15 100 percent of the 
231.12 	average hospital facility payment made to a hospital for the services provided fee cost 
231.13 	trended to current for an uncomplicated vaginal delivery as determined using the most recent 
231.14 	calendar year for which complete claims data is available.
231.15 	(c) Nursery care Facility services provided to a newborn by a birth center shall be paid 
231.16 	the lower of billed charges or 70 100 percent of the statewide average for a payment rate 
231.17 	paid to a hospital for nursery care as determined by using the most recent calendar year for 
231.18 	which complete claims data is available the hospital facility fee for a normal newborn as 
231.19 	determined using the most recent calendar year for which complete claims data is available, 
231.20 	cost trended to current.
231.21 	(d) Professional services provided by traditional midwives licensed under chapter 147D 
231.22 	shall be paid at the lower of billed charges or 100 percent of the rate paid to a physician 
231.23 	performing the same services. If a recipient is transported from a birth center to a hospital 
231.24 	prior to the delivery, a licensed traditional midwife who does not perform the delivery may 
231.25 	not bill for any delivery services. Services are not covered if provided by an unlicensed 
231.26 	traditional midwife.
231.27 	(e) Licensed health professionals working in licensed birth centers shall be reimbursed 
231.28 	for the full range of maternity care and newborn care services within their scope of practice, 
231.29 	regardless of place of service. The commissioner shall review current birth center 
231.30 	reimbursement and, in consultation with birth centers currently licensed in the state, develop 
231.31 	revisions to current payment practices in order to ensure reimbursement for the full range 
231.32 	of maternity care and newborn care services, including but not limited to:
232.1 	(1) professional services for intrapartum care when a recipient is transferred from a birth 
232.2 	center to a hospital prior to delivery;
232.3 	(2) professional services billed with a home place of service code by a licensed health 
232.4 	professional within their scope of practice;
232.5 	(3) professional services when a licensed health professional provides any 
232.6 	Minnesota-mandated newborn screening, including but not limited to the newborn metabolic 
232.7 	screen, CCHD screening, hearing screen, or any other medically necessary newborn 
232.8 	screening, test, or assessment; and
232.9 	(4) telehealth services provided by any licensed health professional working in a birth 
232.10 	center.
232.11 	(f) Managed care organizations and county-based purchasing plans contracted to provide 
232.12 	medical assistance coverage under section 256B.69 shall reimburse licensed birth centers 
232.13 	and licensed health professionals working in licensed birth centers for the full range of 
232.14 	maternity care services within their scope of practice, regardless of place of service, as 
232.15 	determined in paragraph (e) at no less than the medical assistance fee for service fee schedule 
232.16 	for the year in which the service is provided.
232.17 	(e) (g) The commissioner shall apply for any necessary waivers from the Centers for 
232.18 	Medicare and Medicaid Services to allow birth centers and birth center providers to be 
232.19 	reimbursed.

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

232.23 	Sec. 10. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
232.24 	to read:
232.25 		Subd. 54a.Home birth. (a) For purposes of this subdivision, the following terms have 
232.26 	the meanings given:
232.27 	(1) "birth services" means prenatal, labor, birth, and postpartum services;
232.28 	(2) "eligible provider" means a licensed or certified health care professional eligible for 
232.29 	reimbursement under the medical assistance program; and
232.30 	(3) "low-risk patient for birth services" means a person undergoing a normal, 
232.31 	uncomplicated prenatal course as determined by documentation of adequate prenatal care 
232.32 	who anticipates a normal, uncomplicated labor and birth, as defined by reasonable and 
233.1 	generally accepted criteria adopted by professional groups for maternal, fetal, and neonatal 
233.2 	health care.
233.3 	(b) Medical assistance covers birth services provided at home when the following 
233.4 	conditions are met:
233.5 	(1) the birth services are provided by an eligible provider whose scope of practice and 
233.6 	experience includes home birth;
233.7 	(2) the recipient is a low-risk patient for birth services; and
233.8 	(3) the recipient has a plan of care that includes:
233.9 	(i) a consent form detailing the risks and benefits of home birth signed by the recipient;
233.10 	(ii) sufficient visits, test results, and follow-up consultations as needed to establish that 
233.11 	the recipient is a low-risk patient for birth services; and
233.12 	(iii) a plan for transfer to a hospital as needed.
233.13 	(c) Services provided under this subdivision by an eligible provider must be paid at a 
233.14 	rate at least equal to 100 percent of the rate paid to a physician performing the same services. 
233.15 	An eligible provider who does not perform the delivery must not bill for any delivery 
233.16 	services.
233.17 	(d) Supplies used for birth services under this subdivision must be paid at 70 percent of 
233.18 	the statewide average for a facility payment rate made to a hospital for an uncomplicated 
233.19 	vaginal delivery as determined using the most recent calendar year for which complete 
233.20 	claims data are available. If a recipient is transported from a home to a hospital prior to the 
233.21 	delivery, the payment for the supplies used for birth services under this subdivision must 
233.22 	be the lower of billed charges or 15 percent of the statewide average for a facility payment 
233.23 	rate made to a hospital for the services provided for an uncomplicated vaginal delivery as 
233.24 	determined using the most recent calendar year for which complete claims data are available.

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

233.28 	Sec. 11. Minnesota Statutes 2024, section 256B.0757, subdivision 5, is amended to read:
233.29 		Subd. 5.Payments. (a) The commissioner shall make payments to each designated 
233.30 	provider for the provision of health home services described in subdivision 3 to each eligible 
233.31 	individual under subdivision 2 that selects the health home as a provider. This paragraph 
233.32 	expires on the date that paragraph (b) becomes effective.
234.1 	(b) Effective January 1, 2028, or upon federal approval, whichever is later, the 
234.2 	commissioner shall make payments to each designated provider for the provision of health 
234.3 	home services described in subdivision 3, except for behavioral health services, to each 
234.4 	eligible individual under subdivision 2 who selects the health home as a provider.

234.5 	Sec. 12. Minnesota Statutes 2024, section 256B.0757, is amended by adding a subdivision 
234.6 	to read:
234.7 		Subd. 5a.Payments for behavioral health home services. (a) Notwithstanding 
234.8 	subdivision 5, the commissioner must implement a single statewide reimbursement rate for 
234.9 	behavioral health home services under this section. The rate must be no less than $425 per 
234.10 	member per month. The commissioner must adjust the reimbursement rate for behavioral 
234.11 	health home services annually according to the change from the midpoint of the previous 
234.12 	rate year to the midpoint of the rate year for which the rate is being determined using the 
234.13 	Centers for Medicare and Medicaid Services Medicare Economic Index as forecasted in 
234.14 	the fourth quarter of the calendar year before the rate year.
234.15 	(b) The commissioner must review and update the behavioral health home services rate 
234.16 	under paragraph (a) at least every four years. The updated rate must account for the average 
234.17 	hours required for behavioral health home team members spent providing services and the 
234.18 	Department of Labor prevailing wage for required behavioral health home team members. 
234.19 	The updated rate must ensure that behavioral health home services rates are sufficient to 
234.20 	allow providers to meet required certifications, training, and practice transformation 
234.21 	standards; staff qualification requirements; and service delivery standards.
234.22 	(c) Managed care plans and county-based purchasing plans must reimburse providers 
234.23 	at an amount that is at least equal to the fee-for-service rate for services under this 
234.24 	subdivision. The commissioner must monitor the effect of this rate increase on enrollee 
234.25 	access to services under this subdivision. If for any contract year federal approval is not 
234.26 	received for this paragraph, the commissioner must adjust the capitation rates paid to managed 
234.27 	care plans and county-based purchasing plans for that contract year to reflect the removal 
234.28 	of this paragraph. Contracts between managed care plans and county-based purchasing 
234.29 	plans and providers to whom this paragraph applies must allow recovery of payments from 
234.30 	those providers if capitation rates are adjusted in accordance with this paragraph. Payment 
234.31 	recoveries must not exceed the amount equal to any increase in rates that results from this 
234.32 	paragraph.
234.33 	(d) This subdivision is effective January 1, 2028, or upon federal approval, whichever 
234.34 	is later.

235.1 	Sec. 13. Minnesota Statutes 2024, section 256B.1973, is amended by adding a subdivision 
235.2 	to read:
235.3 		Subd. 9.Interaction with other directed payments. An eligible provider under 
235.4 	subdivision 3 may participate in the hospital directed payment program under section 
235.5 	256B.1974 for inpatient hospital services, outpatient hospital services, or both. A provider 
235.6 	participating in the hospital directed payment program must not receive a directed payment 
235.7 	under this section for any provider classes paid via the hospital directed payment program. 
235.8 	A hospital subject to this section must notify the commissioner in writing no later than 30 
235.9 	days after enactment of this subdivision of its intention to participate in the hospital directed 
235.10 	payment program under section 256B.1974 for inpatient hospital services, outpatient hospital 
235.11 	services, or both. The election under this subdivision is a onetime election, except that if 
235.12 	an eligible provider elects to participate in the hospital directed payment program, and the 
235.13 	hospital directed payment program expires, then the eligible provider may thereafter elect 
235.14 	to participate in the directed payment program under this section.

235.15 	EFFECTIVE DATE. (a) This section is effective on the later of January 1, 2026, or 
235.16 	federal approval of all of the following:
235.17 	(1) this section;
235.18 	(2) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
235.19 	2b; and
235.20 	(3) the amendments in this act to Minnesota Statutes, section 256B.1974.
235.21 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
235.22 	approval for all amendments set forth in paragraph (a) is obtained.

235.23 	Sec. 14. [256B.1974] HOSPITAL DIRECTED PAYMENT PROGRAM.
235.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
235.25 	the meanings given.
235.26 	(b) "Health plan" means a managed care plan or county-based purchasing plan that is 
235.27 	under contract with the commissioner to deliver services to medical assistance enrollees 
235.28 	under section 256B.69.
235.29 	(c) "Hospital" means a hospital licensed under section 144.50.
235.30 		Subd. 2.Required conditions for program. The hospital directed payment program is 
235.31 	contingent on the satisfaction of all requirements necessary for the collection of an assessment 
236.1 	under section 256.9657, and must conform with the requirements for permissible directed 
236.2 	managed care organization expenditures under section 256B.6928, subdivision 5.
236.3 		Subd. 3.Commissioner's duties; state-directed fee schedule requirement. (a) For 
236.4 	each federally approved directed payment program that is a state-directed fee schedule 
236.5 	requirement that includes a quarterly payment amount to be submitted by each health plan 
236.6 	to each hospital, the commissioner must determine the quarterly payment amount using the 
236.7 	average commercial payer rate, or using another method acceptable to the Centers for 
236.8 	Medicare and Medicaid Services if the average commercial payer rate is not approved. The 
236.9 	commissioner must ensure that the application of the quarterly payment amounts maximizes 
236.10 	the amount generated by the hospital assessment in section 256.9657, subdivision 2b, for 
236.11 	allowable directed payments and does not result in payments exceeding federal limits.
236.12 	(b) The commissioner must use an annual settle-up process that occurs within the time 
236.13 	period allowed for medical assistance managed care claims adjustments.
236.14 	(c) On and after January 1, 2028, if the federal regulations set forth in Code of Federal 
236.15 	Regulations, title 42, parts 430, 438, and 457, remain effective, the hospital directed payment 
236.16 	program must be specific to each health plan and prospectively incorporated into capitation 
236.17 	payments for that plan.
236.18 	(d) For each federally approved directed payment program that is a state-directed fee 
236.19 	schedule requirement, the commissioner must develop a plan for the initial implementation 
236.20 	of the state-directed fee schedule requirement to ensure that hospitals receive the entire 
236.21 	permissible value of the federally approved directed payment. If federal approval of a 
236.22 	directed payment under this subdivision is retroactive, the commissioner must make a 
236.23 	onetime pro rata increase to the quarterly payment amount and the initial payments to include 
236.24 	claims submitted between the retroactive federal approval date and the period captured by 
236.25 	the initial payments.
236.26 	(e) Directed payments under this section must only be used to supplement, and not 
236.27 	supplant, medical assistance reimbursement to hospitals. The directed payment program 
236.28 	must not modify, reduce, or offset the medical assistance payment rates determined for each 
236.29 	hospital as required by section 256.969.
236.30 	(f) The commissioner must require health plans to make quarterly directed payments 
236.31 	according to this section.
236.32 	(g) Health plans must make quarterly directed payments using electronic funds transfers, 
236.33 	if the hospital provides the information necessary to process such transfers, and in accordance 
237.1 	with directions provided by the commissioner. Health plans must make quarterly directed 
237.2 	payments:
237.3 	(1) for the first two quarters for which such payments are due, within 30 calendar days 
237.4 	of the date the commissioner issued sufficient payments to the health plan to make the 
237.5 	directed payments according to this section; and
237.6 	(2) for all subsequent quarters, within ten calendar days of the date the commissioner 
237.7 	issued sufficient payments to the health plan to make the directed payments according to 
237.8 	this section.
237.9 	(h) The commissioner must publish on the Department of Human Services' website, on 
237.10 	a quarterly basis, the dates that the health plans completed their required quarterly payments 
237.11 	under this section.
237.12 	(i) Payments to health plans that would be paid consistent with actuarial certification 
237.13 	and enrollment in the absence of the increased capitation payments under this section must 
237.14 	not be reduced as a result of this section.
237.15 	(j) The commissioner must publish all directed payments owed to each hospital from 
237.16 	each health plan on the department's website for at least two years. All calculations and 
237.17 	reports must be posted no later than the first day of the quarter for which the payments are 
237.18 	to be issued.
237.19 	(k) By December 1 each year, the commissioner must notify each hospital of any changes 
237.20 	to the payment methodologies in this section, including but not limited to changes in the 
237.21 	directed payment rates, the aggregate directed payment amount for all hospitals, and the 
237.22 	hospital's directed payment amount for the upcoming calendar year.
237.23 	(l) The commissioner must distribute payments required under this section for each 
237.24 	hospital within 30 days of a quarterly assessment under section 256.9657, subdivision 2b, 
237.25 	being received. The commissioner must pay the directed payments to health plans under 
237.26 	contract no later than January 1, April 1, July 1, and October 1 each year.
237.27 	(m) A hospital is not entitled to payments under this section until the start of the first 
237.28 	full fiscal year it is an eligible hospital. A hospital that has merged with another hospital 
237.29 	must have its payments under this section revised at the start of the first full fiscal year after 
237.30 	the merger is complete. A closed hospital is entitled to the payments under this section for 
237.31 	services provided through the final date of operations.
237.32 		Subd. 4.Health plan duties; submission of claims. Each health plan must submit to 
237.33 	the commissioner, in accordance with its contract with the commissioner to serve as a 
238.1 	managed care organization in medical assistance, payment information for each claim paid 
238.2 	to a hospital for services provided to a medical assistance enrollee. Health plans must allow 
238.3 	each hospital to review the health plan's own paid claims detail to enable proper validation 
238.4 	that the medical assistance managed care claims volume and content is consistent with the 
238.5 	hospital's internal records. To support the validation process for the directed payment 
238.6 	program, health plans must permit the commissioner to share inpatient and outpatient 
238.7 	claims-level details with hospitals identifying only those claims where the prepaid medical 
238.8 	assistance program under section 256B.69 is the payer source. Hospitals must provide notice 
238.9 	of discrepancies in claims paid to the commissioner in a form determined by the 
238.10 	commissioner. The commissioner is authorized to determine the final disposition of the 
238.11 	validation process for disputed claims.
238.12 		Subd. 5.Health plan duties; directed payment add-on. (a) Each health plan must 
238.13 	make, in accordance with its contract with the commissioner to serve as a managed care 
238.14 	organization in medical assistance, a directed payment to each hospital. The amount of the 
238.15 	directed payment to the hospital must be equal to the payment amounts the plan received 
238.16 	from the commissioner for the hospital.
238.17 	(b) Health plans are prohibited from:
238.18 	(1) setting, establishing, or negotiating reimbursement rates with a hospital in a manner 
238.19 	that directly or indirectly takes into account a directed payment that a hospital receives 
238.20 	under this section;
238.21 	(2) unnecessarily delaying a directed payment to a hospital; or
238.22 	(3) recouping or offsetting a directed payment for any reason, except as expressly 
238.23 	authorized by the commissioner.
238.24 		Subd. 6.Hospital duties; quarterly supplemental directed payment add-on. (a) A 
238.25 	hospital receiving a directed payment under this section is prohibited from:
238.26 	(1) setting, establishing, or negotiating reimbursement rates with a managed care 
238.27 	organization in a manner that directly or indirectly takes into account a directed payment 
238.28 	that a hospital receives under this section; or
238.29 	(2) directly passing on the cost of an assessment to patients or nonmedical assistance 
238.30 	payers, including as a fee or rate increase.
238.31 	(b) A hospital that violates this subdivision is prohibited from receiving a directed 
238.32 	payment under this section for the remainder of the rate year. This subdivision does not 
238.33 	prohibit a hospital from negotiating with a payer for a rate increase.
239.1 	(c) Any hospital receiving a directed payment under this section must meet the 
239.2 	commissioner's standards for directed payments as described in subdivision 7.
239.3 		Subd. 7.State minimum policy goals established. (a) The effect of the directed 
239.4 	payments under this section must align with the state's policy goals for medical assistance 
239.5 	enrollees. The directed payments must be used to maintain quality and access to a full range 
239.6 	of health care delivery mechanisms for medical assistance enrollees, and specifically provide 
239.7 	improvement for one of the following quality measures:
239.8 	(1) overall well child visit rates;
239.9 	(2) maternal depression screening rates; or
239.10 	(3) colon cancer screening rates.
239.11 	(b) The commissioner, in consultation with the Minnesota Hospital Association, must 
239.12 	submit to the Centers for Medicare and Medicaid Services quality measures performance 
239.13 	evaluation criteria and a methodology to regularly measure access to care and the 
239.14 	achievement of state policy goals described in this subdivision.
239.15 	(c) The quality measures evaluation data, as determined by paragraph (b), must be 
239.16 	reported to the Centers for Medicare and Medicaid Services after at least 12 months of 
239.17 	directed payments to hospitals.
239.18 		Subd. 8.Administrative review. Before making the payments required under this 
239.19 	section, and on at least an annual basis, the commissioner must consult with and provide 
239.20 	for review of the payment amounts by a permanent select committee established by the 
239.21 	Minnesota Hospital Association. Any data or information reviewed by members of the 
239.22 	committee are data not on individuals, as defined in section 13.02. The committee's members 
239.23 	must not include any current employee or paid consultant of any hospital.

239.24 	EFFECTIVE DATE. (a) This section is effective the later of January 1, 2026, or federal 
239.25 	approval for all of the following:
239.26 	(1) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
239.27 	2b; and
239.28 	(2) the amendments in this act to this section.
239.29 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
239.30 	approval for all amendments set forth in paragraph (a) is obtained.

240.1 	Sec. 15. [256B.1975] HOSPITAL DIRECTED PAYMENT PROGRAM ACCOUNT.
240.2 		Subdivision 1.Account established; appropriation. (a) The hospital directed payment 
240.3 	program account is created in the special revenue fund in the state treasury.
240.4 	(b) Money in the account, including interest earned, is annually appropriated to the 
240.5 	commissioner for the purposes specified in section 256B.1974.
240.6 	(c) Transfers from this account to another fund are prohibited, except as necessary to 
240.7 	make the payments required under section 256B.1974.
240.8 		Subd. 2.Reports to the legislature. By January 15, 2027, and each January 15 thereafter, 
240.9 	the commissioner must submit a report to the chairs and ranking minority members of the 
240.10 	legislative committees with jurisdiction over health and human services policy and finance 
240.11 	that details the activities and uses of money in the hospital directed payment program 
240.12 	account, including the metrics and outcomes of the policy goals established by section 
240.13 	256B.1974, subdivision 7.

240.14 	EFFECTIVE DATE. This section is effective on the later of January 1, 2026, or federal 
240.15 	approval of the amendments in this act to add Minnesota Statutes, section 256.9657, 
240.16 	subdivision 2b. The commissioner of human services shall notify the revisor of statutes 
240.17 	when federal approval is obtained.

240.18 	Sec. 16. Minnesota Statutes 2024, section 256B.76, subdivision 1, is amended to read:
240.19 		Subdivision 1.Physician and professional services Reimbursement adjustments.  (a) 
240.20 	Effective for services rendered on or after October 1, 1992, the commissioner shall make 
240.21 	payments for physician services as follows:
240.22 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
240.23 	procedural coding system codes titled "office and other outpatient services," "preventive 
240.24 	medicine new and established patient," "delivery, antepartum, and postpartum care," "critical 
240.25 	care," cesarean delivery and pharmacologic management provided to psychiatric patients, 
240.26 	and level three codes for enhanced services for prenatal high risk, shall be paid at the lower 
240.27 	of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
240.28 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
240.29 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
240.30 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
240.31 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
241.1 	except that payment rates for home health agency services shall be the rates in effect on 
241.2 	September 30, 1992.
241.3 	(b) Effective for services rendered on or after January 1, 2000, payment rates for physician 
241.4 	and professional services shall be increased by three percent over the rates in effect on 
241.5 	December 31, 1999, except for home health agency and family planning agency services. 
241.6 	The increases in this paragraph shall be implemented January 1, 2000, for managed care.
241.7 	(c) Effective for services rendered on or after July 1, 2009, payment rates for physician 
241.8 	and professional services shall be reduced by five percent, except that for the period July 
241.9 	1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical 
241.10 	assistance and general assistance medical care programs, over the rates in effect on June 
241.11 	30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other 
241.12 	outpatient visits, preventive medicine visits and family planning visits billed by physicians, 
241.13 	advanced practice registered nurses, or physician assistants in a family planning agency or 
241.14 	in one of the following primary care practices: general practice, general internal medicine, 
241.15 	general pediatrics, general geriatrics, and family medicine. This reduction and the reductions 
241.16 	in paragraph (d) do not apply to federally qualified health centers, rural health centers, and 
241.17 	Indian health services. Effective October 1, 2009, payments made to managed care plans 
241.18 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
241.19 	reflect the payment reduction described in this paragraph.
241.20 	(d) Effective for services rendered on or after July 1, 2010, payment rates for physician 
241.21 	and professional services shall be reduced an additional seven percent over the five percent 
241.22 	reduction in rates described in paragraph (c). This additional reduction does not apply to 
241.23 	physical therapy services, occupational therapy services, and speech pathology and related 
241.24 	services provided on or after July 1, 2010. This additional reduction does not apply to 
241.25 	physician services billed by a psychiatrist or an advanced practice registered nurse with a 
241.26 	specialty in mental health. Effective October 1, 2010, payments made to managed care plans 
241.27 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
241.28 	reflect the payment reduction described in this paragraph.
241.29 	(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013, 
241.30 	payment rates for physician and professional services shall be reduced three percent from 
241.31 	the rates in effect on August 31, 2011. This reduction does not apply to physical therapy 
241.32 	services, occupational therapy services, and speech pathology and related services.
241.33 	(f) Effective for services rendered on or after September 1, 2014, payment rates for 
241.34 	physician and professional services, including physical therapy, occupational therapy, speech 
242.1 	pathology, and mental health services shall be increased by five percent from the rates in 
242.2 	effect on August 31, 2014. In calculating this rate increase, the commissioner shall not 
242.3 	include in the base rate for August 31, 2014, the rate increase provided under section 
242.4 	256B.76, subdivision 7. This increase does not apply to federally qualified health centers, 
242.5 	rural health centers, and Indian health services. Payments made to managed care plans and 
242.6 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
242.7 	(g) (a) Effective for services rendered on or after July 1, 2015, payment rates for physical 
242.8 	therapy, occupational therapy, and speech pathology and related services provided by a 
242.9 	hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause 
242.10 	(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments 
242.11 	made to managed care plans and county-based purchasing plans shall not be adjusted to 
242.12 	reflect payments under this paragraph.
242.13 	(h) (b) Any ratables effective before July 1, 2015, do not apply to early intensive 
242.14 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
242.15 	(i) (c) The commissioner may reimburse physicians and other licensed professionals for 
242.16 	costs incurred to pay the fee for testing newborns who are medical assistance enrollees for 
242.17 	heritable and congenital disorders under section 144.125, subdivision 1, paragraph (c), when 
242.18 	the sample is collected outside of an inpatient hospital or freestanding birth center and the 
242.19 	cost is not recognized by another payment source.

242.20 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval 
242.21 	of the amendments in this act to Minnesota Statutes, sections 256B.76, subdivision 6, and 
242.22 	256B.768, whichever is later. The commissioner of human services shall notify the revisor 
242.23 	of statutes when federal approval is obtained.

242.24 	Sec. 17. Minnesota Statutes 2024, section 256B.76, subdivision 6, is amended to read:
242.25 		Subd. 6.Medicare relative value units.  (a) Effective for services rendered on or after 
242.26 	January 1, 2007, the commissioner shall make payments for physician and professional 
242.27 	services based on the Medicare relative value units (RVUs). This change shall be budget 
242.28 	neutral and the cost of implementing RVUs will be incorporated in the established conversion 
242.29 	factor. This paragraph expires on the date that paragraph (b) becomes effective.
242.30 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
242.31 	for services rendered on or after January 1, 2007, the commissioner must make payments 
242.32 	for physician and professional services based on the Medicare relative value units (RVUs).
243.1 	(b) (c) Effective for services rendered on or after January 1, 2025, rates for mental health 
243.2 	services reimbursed under the resource-based relative value scale (RBRVS) must be equal 
243.3 	to 83 percent of the Medicare Physician Fee Schedule. This paragraph expires on the date 
243.4 	that section 256B.768 becomes effective.
243.5 	(c) (d) Effective for services rendered on or after January 1, 2025, the commissioner 
243.6 	shall increase capitation payments made to managed care plans and county-based purchasing 
243.7 	plans to reflect the rate increases provided under this subdivision. Managed care plans and 
243.8 	county-based purchasing plans must use the capitation rate increase provided under this 
243.9 	paragraph to increase payment rates to the providers corresponding to the rate increases. 
243.10 	The commissioner must monitor the effect of this rate increase on enrollee access to services 
243.11 	under this subdivision. If for any contract year federal approval is not received for this 
243.12 	paragraph, the commissioner must adjust the capitation rates paid to managed care plans 
243.13 	and county-based purchasing plans for that contract year to reflect the removal of this 
243.14 	paragraph. Contracts between managed care plans and county-based purchasing plans and 
243.15 	providers to whom this paragraph applies must allow recovery of payments from those 
243.16 	providers if capitation rates are adjusted in accordance with this paragraph. Payment 
243.17 	recoveries must not exceed the amount equal to any increase in rates that results from this 
243.18 	paragraph. This paragraph expires on the date that section 256B.768 becomes effective.

243.19 	Sec. 18. Minnesota Statutes 2024, section 256B.761, is amended to read:
243.20 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
243.21 		Subdivision 1.Rates effective 2026. (a) Effective for services rendered on or after July 
243.22 	1, 2001, payment for medication management provided to psychiatric patients, outpatient 
243.23 	mental health services, day treatment services, home-based mental health services, and 
243.24 	family community support services shall be paid at the lower of (1) submitted charges, or 
243.25 	(2) 75.6 percent of the 50th percentile of 1999 charges.
243.26 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
243.27 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
243.28 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
243.29 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
243.30 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
243.31 	those services are provided within the comprehensive outpatient rehabilitation facility and 
243.32 	provided to residents of nursing facilities owned by the entity.
243.33 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
243.34 	coverage policy and rates to improve access to adult rehabilitative mental health services 
244.1 	under section 256B.0623 and related mental health support services under section 256B.021, 
244.2 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
244.3 	state share of increased costs due to this paragraph is transferred from adult mental health 
244.4 	grants under sections 245.4661 and 256K.10. The transfer for fiscal year 2016 is a permanent 
244.5 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
244.6 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
244.7 	the rate changes described in this paragraph.
244.8 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
244.9 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
244.10 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
244.11 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
244.12 	Session chapter 7, article 17, section 18, except for adult day treatment services under section 
244.13 	256B.0671, subdivision 3; early intensive developmental and behavioral intervention services 
244.14 	under section 256B.0949; and substance use disorder services under chapter 254B, must be 
244.15 	increased by three percent from the rates in effect on December 31, 2023. Effective for 
244.16 	services rendered on or after January 1, 2025, payment rates for behavioral health services 
244.17 	included in the rate analysis required by Laws 2021, First Special Session chapter 7, article 
244.18 	17, section 18; early intensive developmental behavioral intervention services under section 
244.19 	256B.0949; and substance use disorder services under chapter 254B, must be annually 
244.20 	adjusted according to the change from the midpoint of the previous rate year to the midpoint 
244.21 	of the rate year for which the rate is being determined using the Centers for Medicare and 
244.22 	Medicaid Services Medicare Economic Index as forecasted in the fourth quarter of the 
244.23 	calendar year before the rate year. For payments made in accordance with this paragraph, 
244.24 	if and to the extent that the commissioner identifies that the state has received federal 
244.25 	financial participation for behavioral health services in excess of the amount allowed under 
244.26 	United States Code, title 42, section 447.321, the state shall repay the excess amount to the 
244.27 	Centers for Medicare and Medicaid Services with state money and maintain the full payment 
244.28 	rate under this paragraph. This paragraph does not apply to federally qualified health centers, 
244.29 	rural health centers, Indian health services, certified community behavioral health clinics, 
244.30 	cost-based rates, and rates that are negotiated with the county. This paragraph expires upon 
244.31 	legislative implementation of the new rate methodology resulting from the rate analysis 
244.32 	required by Laws 2021, First Special Session chapter 7, article 17, section 18.
244.33 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
244.34 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
244.35 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
245.1 	plans must use the capitation rate increase provided under this paragraph to increase payment 
245.2 	rates to behavioral health services providers. The commissioner must monitor the effect of 
245.3 	this rate increase on enrollee access to behavioral health services. If for any contract year 
245.4 	federal approval is not received for this paragraph, the commissioner must adjust the 
245.5 	capitation rates paid to managed care plans and county-based purchasing plans for that 
245.6 	contract year to reflect the removal of this provision. Contracts between managed care plans 
245.7 	and county-based purchasing plans and providers to whom this paragraph applies must 
245.8 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
245.9 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
245.10 	in rates that results from this provision.
245.11 	(a) Effective for services rendered on or after January 1, 2026, the commissioner must 
245.12 	establish market-based payment rates for the following services:
245.13 	(1) children's therapeutic services and supports under section 256B.0943;
245.14 	(2) child and family psychoeducation services under section 256B.0671, subdivision 5;
245.15 	(3) clinical care consultation services under section 256B.0671, subdivision 7; and
245.16 	(4) mental health certified family peer specialist services under section 256B.0616.
245.17 	(b) Rates established under paragraph (a) must not be lower than:
245.18 	(1) the payment rates recommended in the rate analysis required by Laws 2021, First 
245.19 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
245.20 	Services on January 22, 2024; or
245.21 	(2) the payment rates in effect on December 31, 2025.
245.22 		Subd. 2.Rates effective 2027.  (a) Effective for services rendered on or after January 1, 
245.23 	2027, the commissioner must establish market-based payment rates for the following services:
245.24 	(1) adult day treatment services under section 256B.0671, subdivision 3;
245.25 	(2) adult rehabilitative mental health services under section 256B.0623;
245.26 	(3) adult mental health peer support specialist services under section 256B.0615;
245.27 	(4) dialectical behavioral therapy under section 256B.0671, subdivision 6;
245.28 	(5) explanation of findings under section 256B.0671, subdivision 4;
245.29 	(6) mental health crisis response services under section 256B.0624;
245.30 	(7) mental health provider travel time under section 256B.0625, subdivision 43;
246.1 	(8) neuropsychological testing under section 256B.0671, subdivision 9;
246.2 	(9) partial hospitalization services under section 256B.0671, subdivision 12; and
246.3 	(10) psychotherapy services under section 256B.0671, subdivision 11, incorporating 
246.4 	biofeedback.
246.5 	(b) Rates established under paragraph (a) must not be lower than:
246.6 	(1) the payments rates recommended in the rate analysis required by Laws 2021, First 
246.7 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
246.8 	Services on January 22, 2024; or
246.9 	(2) the payment rates in effect on December 31, 2026.
246.10 		Subd. 3.Capitation payments. The commissioner must adjust capitation payments 
246.11 	made to managed care plans and county-based purchasing plans to reflect the behavioral 
246.12 	health service rates provided in this section. Managed care and county-based purchasing 
246.13 	plans must reimburse providers at an amount that is at least equal to the fee-for-service rate 
246.14 	for services under this section. The commissioner must monitor the effect of this rate 
246.15 	adjustment on enrollee access to behavioral health services. If for any contract year federal 
246.16 	approval is not received for this subdivision, the commissioner must adjust the capitation 
246.17 	rates paid to managed care plans and county-based purchasing plans for that contract year 
246.18 	to reflect the removal of this provision. Contracts between managed care plans and 
246.19 	county-based purchasing plans and providers to whom this subdivision applies must allow 
246.20 	recovery of payments from those providers if capitation rates are adjusted in accordance 
246.21 	with this subdivision. Payment recoveries must not exceed the amount equal to any increase 
246.22 	in rates that results from this subdivision.
246.23 		Subd. 4.Inflation adjustment. The commissioner must adjust the reimbursement rate 
246.24 	for services under this section annually according to the change from the midpoint of the 
246.25 	previous rate year to the midpoint of the rate year for which the rate is being determined 
246.26 	using the Centers for Medicare and Medicaid Services Medicare Economic Index as 
246.27 	forecasted in the fourth quarter of the calendar year before the rate year.
246.28 		Subd. 5.Exceptions. (a) This section does not apply to federally qualified health centers, 
246.29 	rural health centers, Indian health services, or certified community behavioral health clinics 
246.30 	or to cost-based rates or rates that are negotiated with the county.
246.31 	(b) This section does not apply to services with reimbursement rates established pursuant 
246.32 	to section 256B.768.

247.1 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval 
247.2 	of this section and Minnesota Statutes, section 256B.768, whichever is later. The 
247.3 	commissioner shall notify the revisor of statutes when federal approval is obtained.

247.4 	Sec. 19. Minnesota Statutes 2024, section 256B.766, is amended to read:
247.5 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
247.6 		Subdivision 1.Payment reductions for base care services effective July 1, 2009. (a)
247.7 	Effective for services provided on or after July 1, 2009, total payments for basic care services, 
247.8 	shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 
247.9 	2011, total payments shall be reduced by 4.5 percent for the medical assistance and general 
247.10 	assistance medical care programs, prior to third-party liability and spenddown calculation.
247.11 		Subd. 2.Classification of therapies as basic care services. Effective July 1, 2010, The 
247.12 	commissioner shall classify physical therapy services, occupational therapy services, and 
247.13 	speech-language pathology and related services as basic care services. The reduction in this 
247.14 	paragraph subdivision 1 shall apply to physical therapy services, occupational therapy 
247.15 	services, and speech-language pathology and related services provided on or after July 1, 
247.16 	2010.
247.17 		Subd. 3.Payment reductions to managed care plans effective October 1, 2009. (b)
247.18 	Payments made to managed care plans and county-based purchasing plans shall be reduced 
247.19 	for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1 
247.20 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
247.21 	1, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010.
247.22 		Subd. 4.Temporary payment reductions effective September 1, 2011. (c) (a) Effective 
247.23 	for services provided on or after September 1, 2011, through June 30, 2013, total payments 
247.24 	for outpatient hospital facility fees shall be reduced by five percent from the rates in effect 
247.25 	on August 31, 2011.
247.26 	(d) (b) Effective for services provided on or after September 1, 2011, through June 30, 
247.27 	2013, total payments for ambulatory surgery centers facility fees, medical supplies and 
247.28 	durable medical equipment not subject to a volume purchase contract, prosthetics and 
247.29 	orthotics, renal dialysis services, laboratory services, public health nursing services, physical 
247.30 	therapy services, occupational therapy services, speech therapy services, eyeglasses not 
247.31 	subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, 
247.32 	and anesthesia services shall be reduced by three percent from the rates in effect on August 
247.33 	31, 2011.
248.1 		Subd. 5.Payment increases effective September 1, 2014. (e) (a) Effective for services 
248.2 	provided on or after September 1, 2014, payments for ambulatory surgery centers facility 
248.3 	fees, hospice services, renal dialysis services, laboratory services, public health nursing 
248.4 	services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject 
248.5 	to a volume purchase contract shall be increased by three percent and payments for outpatient 
248.6 	hospital facility fees shall be increased by three percent.
248.7 	(b) Payments made to managed care plans and county-based purchasing plans shall not 
248.8 	be adjusted to reflect payments under this paragraph subdivision.
248.9 		Subd. 6.Temporary payment reductions effective July 1, 2014. (f) Payments for 
248.10 	medical supplies and durable medical equipment not subject to a volume purchase contract, 
248.11 	and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall 
248.12 	be decreased by .33 percent.
248.13 		Subd. 7.Payment increases effective July 1, 2015. (a) Payments for medical supplies 
248.14 	and durable medical equipment not subject to a volume purchase contract, and prosthetics 
248.15 	and orthotics, provided on or after July 1, 2015, shall be increased by three percent from 
248.16 	the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10.
248.17 	(g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient 
248.18 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
248.19 	volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified 
248.20 	in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent 
248.21 	from the rates in effect on June 30, 2015.
248.22 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
248.23 	be adjusted to reflect payments under this paragraph (b).
248.24 		Subd. 8.Exempt services. (h) This section does not apply to physician and professional 
248.25 	services, inpatient hospital services, family planning services, mental health services, dental 
248.26 	services, prescription drugs, medical transportation, federally qualified health centers, rural 
248.27 	health centers, Indian health services, and Medicare cost-sharing.
248.28 		Subd. 9.Individually priced items. (i) (a) Effective for services provided on or after 
248.29 	July 1, 2015, the following categories of medical supplies and durable medical equipment 
248.30 	shall be individually priced items: customized and other specialized tracheostomy tubes 
248.31 	and supplies, electric patient lifts, and durable medical equipment repair and service.
248.32 	(b) This paragraph subdivision does not apply to medical supplies and durable medical 
248.33 	equipment subject to a volume purchase contract, products subject to the preferred diabetic 
249.1 	testing supply program, and items provided to dually eligible recipients when Medicare is 
249.2 	the primary payer for the item.
249.3 	(c) The commissioner shall not apply any medical assistance rate reductions to durable 
249.4 	medical equipment as a result of Medicare competitive bidding.
249.5 		Subd. 10.Rate increases effective July 1, 2015. (j) (a) Effective for services provided 
249.6 	on or after July 1, 2015, medical assistance payment rates for durable medical equipment, 
249.7 	prosthetics, orthotics, or supplies shall be increased as follows:
249.8 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that 
249.9 	were subject to the Medicare competitive bid that took effect in January of 2009 shall be 
249.10 	increased by 9.5 percent; and
249.11 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on 
249.12 	the medical assistance fee schedule, whether or not subject to the Medicare competitive bid 
249.13 	that took effect in January of 2009, shall be increased by 2.94 percent, with this increase 
249.14 	being applied after calculation of any increased payment rate under clause (1).
249.15 	This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment 
249.16 	subject to a volume purchase contract, products subject to the preferred diabetic testing 
249.17 	supply program, items provided to dually eligible recipients when Medicare is the primary 
249.18 	payer for the item, and individually priced items identified in paragraph (i) subdivision 9.
249.19 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
249.20 	be adjusted to reflect the rate increases in this paragraph subdivision.
249.21 		Subd. 11.Rates for ventilators. (k) (a) Effective for nonpressure support ventilators 
249.22 	provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or 
249.23 	the Medicare fee schedule rate.
249.24 	(b) Effective for pressure support ventilators provided on or after January 1, 2016, the 
249.25 	rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule 
249.26 	rate.
249.27 	(c) For payments made in accordance with this paragraph subdivision, if, and to the 
249.28 	extent that, the commissioner identifies that the state has received federal financial 
249.29 	participation for ventilators in excess of the amount allowed effective January 1, 2018, 
249.30 	under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess 
249.31 	amount to the Centers for Medicare and Medicaid Services with state funds and maintain 
249.32 	the full payment rate under this paragraph subdivision.
250.1 		Subd. 12.Rates subject to the upper payment limit. (l) Payment rates for durable 
250.2 	medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment 
250.3 	limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the 
250.4 	Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed 
250.5 	in this paragraph subdivision.
250.6 		Subd. 13.Temporary rates for enteral nutrition and supplies. (m) (a) For dates of 
250.7 	service on or after July 1, 2023, through June 30, 2025, enteral nutrition and supplies must 
250.8 	be paid according to this paragraph subdivision. If sufficient data exists for a product or 
250.9 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
250.10 	per product code submitted to the commissioner, using only charges submitted per unit. 
250.11 	Increases in rates resulting from the 50th percentile payment method must not exceed 150 
250.12 	percent of the previous fiscal year's rate per code and product combination. Data are sufficient 
250.13 	if: (1) the commissioner has at least 100 paid claim lines by at least ten different providers 
250.14 	for a given product or supply; or (2) in the absence of the data in clause (1), the commissioner 
250.15 	has at least 20 claim lines by at least five different providers for a product or supply that 
250.16 	does not meet the requirements of clause (1). If sufficient data are not available to calculate 
250.17 	the 50th percentile for enteral products or supplies, the payment rate must be the payment 
250.18 	rate in effect on June 30, 2023.
250.19 	(b) This subdivision expires June 30, 2025.
250.20 		Subd. 14.Rates for enteral nutrition and supplies. (n) For dates of service on or after 
250.21 	July 1, 2025, enteral nutrition and supplies must be paid according to this paragraph
250.22 	subdivision and updated annually each January 1. If sufficient data exists for a product or 
250.23 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
250.24 	per product code submitted to the commissioner for the previous calendar year, using only 
250.25 	charges submitted per unit. Increases in rates resulting from the 50th percentile payment 
250.26 	method must not exceed 150 percent of the previous year's rate per code and product 
250.27 	combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines 
250.28 	by at least ten different providers for a given product or supply; or (2) in the absence of the 
250.29 	data in clause (1), the commissioner has at least 20 claim lines by at least five different 
250.30 	providers for a product or supply that does not meet the requirements of clause (1). If 
250.31 	sufficient data are not available to calculate the 50th percentile for enteral products or 
250.32 	supplies, the payment must be the manufacturer's suggested retail price of that product or 
250.33 	supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment 
250.34 	must be the actual acquisition cost of that product or supply plus 20 percent.
251.1 		Subd. 15.Rates for phototherapy services. For dates of service on or after July 1, 
251.2 	2025, the payment rate for phototherapy services provided to newborns in the home setting 
251.3 	must include a service fee in the amount of $520 per patient episode, in addition to the daily 
251.4 	rental rate for the medical equipment in subdivision 12. The commissioner shall provide an 
251.5 	annual inflation adjustment for the phototherapy service fee. The index for the inflation 
251.6 	adjustment must be based on the Consumer Price Index for All Urban Consumers increase 
251.7 	published by the Bureau of Labor Statistics.

251.8 	Sec. 20. [256B.768] MEDICARE RATE ALIGNMENT.
251.9 		Subdivision 1.Medicare physician fee schedule rates. (a) Effective January 1, 2026, 
251.10 	or upon federal approval, whichever is later, and effective for services rendered on or after 
251.11 	January 1, 2026, or the date of federal approval, whichever is later, the commissioner must 
251.12 	make payments based on the resource-based relative value scale for all services:
251.13 	(1) covered in medical assistance; and
251.14 	(2) with a corresponding rate and procedure code in the Medicare Physician Fee Schedule.
251.15 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
251.16 	for services rendered on or after January 1, 2026, or the date of federal approval, whichever 
251.17 	is later, rates must be at least equal to 100 percent of the Medicare Physician Fee Schedule 
251.18 	if the service:
251.19 	(1) is reimbursed in medical assistance under the resource-based relative value scale; 
251.20 	and
251.21 	(2) has a corresponding rate and procedural code in the Medicare Physician Fee Schedule.
251.22 	(c) For services rendered on or after January 1, 2026, the commissioner shall increase 
251.23 	capitation payments made to managed care plans and county-based purchasing plans to 
251.24 	reflect the rate increases provided under this subdivision. Managed care plans and 
251.25 	county-based purchasing plans must reimburse providers at an amount that is at least equal 
251.26 	to the fee-for-service rate for services under this subdivision. The commissioner must 
251.27 	monitor the effect of this rate increase on enrollee access to services under this subdivision. 
251.28 	If for any contract year federal approval is not received for this paragraph, the commissioner 
251.29 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
251.30 	plans for that contract year to reflect the removal of this paragraph. Contracts between 
251.31 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
251.32 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
252.1 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
252.2 	to any increase in rates that results from this paragraph.
252.3 		Subd. 2.Applicable fee schedule. For purposes of this section, the applicable Medicare 
252.4 	Physician Fee Schedule is the most recent Medicare Physician Fee Schedule Final Rule 
252.5 	issued by the Centers for Medicare and Medicaid Services in effect at the time the service 
252.6 	was rendered.
252.7 		Subd. 3.Exceptions. This section does not apply to federally qualified health centers, 
252.8 	rural health centers, Indian health services, certified community behavioral health clinics, 
252.9 	cost-based rates, and rates that are negotiated with the county.

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

252.13 	Sec. 21. Minnesota Statutes 2024, section 295.50, subdivision 3, is amended to read:
252.14 		Subd. 3.Gross revenues. (a) "Gross revenues" are total amounts received in money or 
252.15 	otherwise by:
252.16 	(1) a hospital for patient services;
252.17 	(2) a surgical center for patient services;
252.18 	(3) a health care provider, other than a staff model health plan company, for patient 
252.19 	services;
252.20 	(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered 
252.21 	in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the 
252.22 	legend drugs are delivered to another wholesale drug distributor who sells legend drugs 
252.23 	exclusively at wholesale; and
252.24 	(5) a staff model health plan company as gross premiums for enrollees, co-payments, 
252.25 	deductibles, coinsurance, and fees for patient services.
252.26 	(b) For purposes of paragraph (a), clause (4), "gross revenues" includes the amount of 
252.27 	any rebate provided by the wholesale drug distributor to a customer, however provided, 
252.28 	including a rebate provided under a contractual obligation. "Rebate" means any price 
252.29 	concession provided by a wholesale drug distributor, including any price concession based 
252.30 	on the actual or estimated utilization, sale volume, or effectiveness of a legend drug.

252.31 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
252.32 	30, 2025.

253.1 	Sec. 22. Minnesota Statutes 2024, section 295.52, subdivision 1, is amended to read:
253.2 		Subdivision 1.Hospital tax. A tax is imposed on each hospital equal to 1.8 two percent 
253.3 	of its gross revenues.

253.4 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
253.5 	30, 2025.

253.6 	Sec. 23. Minnesota Statutes 2024, section 295.52, subdivision 1a, is amended to read:
253.7 		Subd. 1a.Surgical center tax. A tax is imposed on each surgical center equal to 1.8
253.8 	two percent of its gross revenues.

253.9 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
253.10 	30, 2025.

253.11 	Sec. 24. Minnesota Statutes 2024, section 295.52, subdivision 2, is amended to read:
253.12 		Subd. 2.Provider tax. A tax is imposed on each health care provider equal to 1.8 two
253.13 	percent of its gross revenues.

253.14 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
253.15 	30, 2025.

253.16 	Sec. 25. Minnesota Statutes 2024, section 295.52, subdivision 3, is amended to read:
253.17 		Subd. 3.Wholesale drug distributor tax. A tax is imposed on each wholesale drug 
253.18 	distributor equal to 1.8 two percent of its gross revenues.

253.19 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
253.20 	30, 2025.

253.21 	Sec. 26. Minnesota Statutes 2024, section 295.52, subdivision 4, is amended to read:
253.22 		Subd. 4.Use tax; legend drugs. (a) A person that receives legend drugs for resale or 
253.23 	use in Minnesota, other than from a wholesale drug distributor that is subject to tax under 
253.24 	subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 
253.25 	1.8 two percent. Liability for the tax is incurred when legend drugs are received or delivered 
253.26 	in Minnesota by the person.
253.27 	(b) A tax imposed under this subdivision does not apply to purchases by an individual 
253.28 	for personal consumption.

254.1 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
254.2 	30, 2025.

254.3 	Sec. 27. [295.525] MCO ASSESSMENT ON HEALTH PLAN COMPANIES.
254.4 		Subdivision 1.Definitions. (a) For purposes of this section, the definitions in this 
254.5 	subdivision have the meanings given.
254.6 	(b) "Commissioner" means the commissioner of human services.
254.7 	(c) "Enrollee" has the meaning given in section 62Q.01, except that enrollee does not 
254.8 	include:
254.9 	(1) an individual enrolled in a Medicare plan;
254.10 	(2) a plan-to-plan enrollee; or
254.11 	(3) an individual enrolled in a health plan pursuant to the Federal Employees Health 
254.12 	Benefits Act of 1959, Public Law 86-382, as amended, to the extent the imposition of the 
254.13 	assessment under this section is preempted pursuant to United States Code, title 5, section 
254.14 	8909, subsection (f).
254.15 	(d) "Health plan" has the meaning given in section 62Q.01.
254.16 	(e) "Health plan company" has the meaning given in section 62Q.01.
254.17 	(f) "Medical assistance" means the medical assistance program established under chapter 
254.18 	256B.
254.19 	(g) "Medical assistance enrollee" means an enrollee in medical assistance or 
254.20 	MinnesotaCare for whom the Department of Human Services directly pays the health plan 
254.21 	company a capitated payment.
254.22 	(h) "MinnesotaCare" means the MinnesotaCare program established under chapter 256L.
254.23 	(i) "Plan-to-plan enrollee" means an individual who receives coverage for health care 
254.24 	services through a health plan pursuant to a subcontract from another health plan.
254.25 		Subd. 2.MCO assessment. (a) An annual assessment is imposed on health plan 
254.26 	companies for each calendar year beginning in calendar year 2026. The total annual 
254.27 	assessment amount is equal to the sum of the amounts assessed for medical assistance 
254.28 	enrollees under paragraph (b) and for nonmedical assistance enrollees under paragraph (c).
254.29 	(b) The amount assessed for medical assistance enrollees is equal to the sum of the 
254.30 	following:
255.1 	(1) for medical assistance enrollees 0 to 60,000, $0 per enrollee;
255.2 	(2) for medical assistance enrollees 60,001 to 100,000, $340 per enrollee;
255.3 	(3) for medical assistance enrollees 100,001 to 200,000, $365 per enrollee; and
255.4 	(4) for medical assistance enrollees 200,001 to 350,000, $380 per enrollee.
255.5 	(c) The amount assessed for nonmedical assistance enrollees is equal to the sum of the 
255.6 	following:
255.7 	(1) for nonmedical assistance enrollees 0 to 60,000, $0 per enrollee;
255.8 	(2) for nonmedical assistance enrollees 60,001 to 100,000, 50 cents per enrollee;
255.9 	(3) for nonmedical assistance enrollees 100,001 to 200,000, 75 cents per enrollee; and
255.10 	(4) for nonmedical assistance enrollees 200,001 to 350,000, $1 per enrollee.
255.11 	(d) The commissioner must annually use the commissioner's authority as necessary to 
255.12 	modify the rate of assessment, provided under paragraph (e), such that the annual assessment 
255.13 	imposed under this subdivision does not exceed the lesser of:
255.14 	(1) 2.8 percent of the health plan companies' aggregate gross revenue; and
255.15 	(2) the cumulative costs attributable to:
255.16 	(i) the program changes in section 295.525, subdivision 4, paragraph (b), clauses (1) to 
255.17 	(6); and
255.18 	(ii) the appropriation under section 144E.54, subdivision 10.
255.19 	(e) The commissioner may, after consultation with health plan companies likely to be 
255.20 	affected, modify the rate of assessment, as set forth in paragraphs (a) to (d), as necessary 
255.21 	to:
255.22 	(1) comply with federal law, obtain or maintain a waiver under Code of Federal 
255.23 	Regulations, title 42, section 433.72, or to otherwise maximize under this section federal 
255.24 	financial participation for medical assistance; and
255.25 	(2) comply with paragraph (d).
255.26 	(f) Unpaid assessment amounts accrue interest at a rate of ten percent per annum, 
255.27 	beginning the day following the assessment payment's due date. A penalty, equal to the 
255.28 	total accrued interest charge, is imposed monthly on payments 60 days or more overdue 
255.29 	until the payment, penalty, and interest are paid in full.
256.1 		Subd. 3.Assessment computation; collection. (a) The commissioner must annually 
256.2 	determine the following for each health plan company:
256.3 	(1) total enrollment for the calendar year;
256.4 	(2) total Medicare enrollment for the calendar year;
256.5 	(3) total medical assistance enrollment for the calendar year;
256.6 	(4) total plan-to-plan enrollment for the calendar year;
256.7 	(5) total enrollment through the Federal Employees Health Benefits Act of 1959, Public 
256.8 	Law 86-382, as amended, for the calendar year; and
256.9 	(6) total other enrollment for the calendar year that is not otherwise counted in clauses 
256.10 	(2) to (5).
256.11 	(b) Health plan companies must provide any information requested by the commissioner 
256.12 	for the purpose of this subdivision, provided that the commissioner determines such 
256.13 	information is necessary to accurately determine the information in paragraph (a).
256.14 	(c) The commissioner may correct errors in data provided to the commissioner by a 
256.15 	health plan company to the extent necessary to accurately determine the information in 
256.16 	paragraph (a).
256.17 	(d) For purposes of calculating the information in paragraph (a) for a health plan company, 
256.18 	the commissioner must count any individual that was an enrollee of a health plan at any 
256.19 	point of the calendar year, regardless of the enrollee's duration as an enrollee of the health 
256.20 	plan.
256.21 	(e) The commissioner must annually use the information in paragraph (a) to compute 
256.22 	the assessment for each health plan company.
256.23 	(f) The commissioner must collect the annual assessment for each health plan company 
256.24 	in four equal installments, in the manner and on the schedule determined by the 
256.25 	commissioner. The commissioner is prohibited from collecting any amount under this section 
256.26 	until 20 days after the commissioner has notified the health plan company of:
256.27 	(1) the effective date of this section;
256.28 	(2) the assessment due dates for the applicable calendar year; and
256.29 	(3) the annual assessment amount.
256.30 	(g) The commissioner may waive all or part of the interest or penalty imposed on a 
256.31 	health plan company under subdivision 2, paragraph (f), if the commissioner determines 
257.1 	the interest or penalty is likely to create an undue financial hardship on the health plan 
257.2 	company or a significant financial difficulty in providing necessary services to medical 
257.3 	assistance enrollees. A waiver under this paragraph must be contingent on the health plan 
257.4 	company's agreement to make assessment payments on an alternative schedule, determined 
257.5 	by the commissioner, that accounts for the health plan company's finances and the potential 
257.6 	impact on the delivery of services to medical assistance enrollees.
257.7 	(h) In the event of a merger, acquisition, or other transaction that results in the transfer 
257.8 	of health plan responsibility to another health plan company or similar entity during calendar 
257.9 	years 2026 to 2029, the surviving, acquiring, or controlling health plan company or similar 
257.10 	entity shall be responsible for paying the full assessment amount as provided in this section 
257.11 	that would have been the responsibility of the health plan company to which that full 
257.12 	assessment amount was assessed upon the effective date of the transaction. If a transaction 
257.13 	results in the transfer of health plan responsibility for only some of a health plan's enrollees 
257.14 	under this section but not all enrollees, the full assessment amount as provided in this section 
257.15 	remains the responsibility of that health plan company to which that full assessment amount 
257.16 	was assessed.
257.17 		Subd. 4.MCO assessment expenditures. (a) All amounts collected by the commissioner 
257.18 	under this section must be deposited in the health care access fund.
257.19 	(b) Of the total amount collected by the commissioner under this section, $18,000,000 
257.20 	annually is for the appropriation under section 144E.54, subdivision 10. All other amounts 
257.21 	collected by the commissioner under this section are annually appropriated to the 
257.22 	commissioner to provide nonfederal money for medical assistance and MinnesotaCare 
257.23 	program rate changes made in this act related to:
257.24 	(1) ambulance services under section 256B.0625, subdivision 17a;
257.25 	(2) behavioral health home services under section 256B.0757;
257.26 	(3) mental health services under section 256B.761;
257.27 	(4) services reimbursed under the resource-based relative value scale and with a 
257.28 	corresponding rate and procedural code in the Medicare Physician Fee Schedule under 
257.29 	section 256B.768;
257.30 	(5) inpatient behavioral health services provided by hospitals paid under the DRG 
257.31 	methodology under section 256.969, subdivision 2b, paragraph (l); and
257.32 	(6) mental health services provided by masters-prepared mental health professionals 
257.33 	and physician assistants resulting from the repeal of section 256B.0625, subdivision 38.
258.1 	(c) Except for the amount necessary for the appropriation under section 144E.54, 
258.2 	subdivision 10, the assessment money must be used to supplement money for medical 
258.3 	assistance from the general fund.
258.4 	(d) The commissioner must provide an annual report to all health plan companies, in a 
258.5 	time and manner determined by the commissioner. The report must identify the assessments 
258.6 	imposed on each health plan company pursuant to this section, account for all money raised 
258.7 	by the MCO assessment, and provide an itemized accounting of expenditures from the fund.

258.8 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval 
258.9 	for the assessment established in this section to be considered a permissible health 
258.10 	care-related tax under Code of Federal Regulations, title 42, section 433.68, eligible for 
258.11 	federal financial participation, including but not limited to federal approval of a waiver 
258.12 	under Code of Federal Regulations, title 42, section 433.72, if such waiver is necessary to 
258.13 	receive health care-related taxes without a reduction in federal financial participation, 
258.14 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
258.15 	when federal approval is obtained.

258.16 	Sec. 28. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ENHANCED 
258.17 	FEDERAL REIMBURSEMENT FOR FAMILY PLANNING SERVICES IN 
258.18 	MEDICAL ASSISTANCE.
 258.19 	The commissioner of human services must make the systems modification necessary to 
258.20 	claim enhanced federal reimbursement for all family planning services under the medical 
258.21 	assistance program.

258.22 	Sec. 29. IMPLEMENTATION OF HOSPITAL ASSESSMENT AND DIRECTED 
258.23 	PAYMENT PROGRAM.
 258.24 	(a) The commissioner of human services must immediately begin all necessary claims 
258.25 	analysis to calculate the assessment and payments required under Minnesota Statutes, section 
258.26 	256.9657, subdivision 2b, and the hospital directed payment program described in Minnesota 
258.27 	Statutes, section 256B.1974.
258.28 	(b) The commissioner of human services, in consultation with the Minnesota Hospital 
258.29 	Association, must submit to the Centers for Medicare and Medicaid Services a request for 
258.30 	federal approval to implement the hospital assessment described in Minnesota Statutes, 
258.31 	section 256.9657, subdivision 2b, and the hospital directed payment program under 
258.32 	Minnesota Statutes, section 256B.1974. At least 15 days before submitting the request for 
258.33 	approval, the commissioner must make available to the public the draft assessment 
259.1 	requirements, draft directed payment details, and an estimate of each assessment amount 
259.2 	for each hospital without an exemption from the assessment pursuant to Minnesota Statutes, 
259.3 	section 256.9657, subdivision 2b, paragraph (k).
259.4 	(c) During the design and prior to submission of the request for approval under paragraph 
259.5 	(b), the commissioner of human services must consult with the Minnesota Hospital 
259.6 	Association and any hospitals without an exemption from the assessment pursuant to 
259.7 	Minnesota Statutes, section 256.9657, subdivision 2b, paragraph (k), and that are not 
259.8 	members of the Minnesota Hospital Association.
259.9 	(d) If federal approval is received for the request under paragraph (b), the commissioner 
259.10 	of human services must provide at least 15 days of public posting and review of the federally 
259.11 	approved terms and conditions for the assessment and the directed payment program prior 
259.12 	to any assessment under Minnesota Statutes, section 256.9657, subdivision 2b, becoming 
259.13 	due from a hospital.

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

259.15 	Sec. 30. FEDERAL APPROVAL; WAIVERS.
 259.16 	(a) The commissioner must request, as the commissioner determines necessary, federal 
259.17 	approval for the MCO assessment on health plan companies established in this act to be 
259.18 	considered a permissible health-care-related tax under Code of Federal Regulations, title 
259.19 	42, section 433.68, eligible for federal financial participation.
259.20 	(b) To obtain the federal approval under paragraph (a), the commissioner may apply for 
259.21 	a waiver of the federal broad-based requirement for health care-related taxes, uniform 
259.22 	requirement for health-care-related taxes, and any other provision of federal law necessary 
259.23 	to implement Minnesota Statutes, section 295.525.

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

259.25 	Sec. 31. BUDGET NEUTRALITY; RATE ADJUSTMENTS.
 259.26 	(a) By October 1 of each year, the commissioner of human services must determine the 
259.27 	difference between the actual costs or forecasted costs to the medical assistance and 
259.28 	MinnesotaCare programs attributable to the program changes in Minnesota Statutes, section 
259.29 	295.525, subdivision 4, paragraph (b), clauses (1) to (6), and the revenue from the MCO 
259.30 	assessment imposed under Minnesota Statutes, section 295.525, subdivision 2, including 
259.31 	federal financial participation.
260.1 	(b) For each fiscal year, the commissioner of human services must certify the difference 
260.2 	between the actual costs or forecasted costs to the medical assistance and MinnesotaCare 
260.3 	programs determined under paragraph (a), and report the difference in costs to the 
260.4 	commissioner of management and budget at least four weeks prior to a forecast under 
260.5 	Minnesota Statutes, section 16A.103.
260.6 	(c) If for any fiscal year, the cumulative costs attributable to: (1) the program changes 
260.7 	in Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), clauses (1) to (6), and 
260.8 	(2) the appropriation under section 144E.54, subdivision 10, exceed revenue from the MCO 
260.9 	assessment imposed under Minnesota Statutes, section 295.525, subdivision 2, as determined 
260.10 	under paragraph (a), the commissioner of human services must reduce the costs to the 
260.11 	medical assistance and MinnesotaCare programs attributable to the program changes in 
260.12 	Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), clauses (1) to (6). The 
260.13 	commissioner's reduction under this paragraph must be on a uniform percentage basis across 
260.14 	the rate increases provided in Minnesota Statutes, section 295.525, subdivision 4, paragraph 
260.15 	(b), clauses (1) to (6).

260.16 	Sec. 32. TREND LIMIT; CALCULATION.
 260.17 	(a) Beginning January 1, 2027, and ending June 30, 2029, the commissioner of human 
260.18 	services may limit the trend increase in rates paid to managed care plans and county-based 
260.19 	purchasing plans under Minnesota Statutes, sections 256B.69 and 256B.692, by an amount 
260.20 	equal to the value of a 0.35 percent reduction in trend in medical assistance. Managed care 
260.21 	rates must meet actuarial soundness and rate development requirements under Code of 
260.22 	Federal Regulations, title 42, part 438, subpart A.
260.23 	(b) In the November 2025 forecast, the commissioner of human services, in consultation 
260.24 	with the commissioner of management and budget, must reduce the forecasted trend growth 
260.25 	in managed care for medical assistance expenditures in fiscal years 2027, 2028, and 2029. 
260.26 	The reduction must not be less than $7,784,000 in fiscal year 2027, $8,219,000 in fiscal 
260.27 	year 2028, and $8,446,000 in fiscal year 2029.

260.28 	Sec. 33. PROGRAM FOR AMBULANCE SERVICE PROVIDER FUNDING.
 260.29 	The commissioner of human services may implement a voluntary program to increase 
260.30 	funding to ambulance service providers licensed under Minnesota Statutes, chapter 144E, 
260.31 	for services delivered to enrollees of fee-for-service medical assistance and medical assistance 
260.32 	delivered by managed care and county-based purchasing plans. In developing the program, 
260.33 	the commissioner of human services must consider a range of approaches, including but 
261.1 	not limited to intergovernmental transfer and certified public expenditure programs, as 
261.2 	allowed under Code of Federal Regulations, title 42, section 433.51. The program must 
261.3 	supplement, and not supplant or replace, any existing programs operated by the commissioner 
261.4 	of human services to increase funding to ambulance service providers.

261.5 	Sec. 34. REPEALER.
 261.6 	Minnesota Statutes 2024, section 256B.0625, subdivision 38, is repealed.

261.7 	EFFECTIVE DATE. This section is effective January 1, 2027, or upon federal approval 
261.8 	of this section and the amendments in this act to Minnesota Statutes, sections 256B.76, 
261.9 	subdivision 6, and 256B.761, whichever is later. The commissioner of human services shall 
261.10 	notify the revisor of statutes when federal approval is obtained.

261.11 	ARTICLE 7
261.12 	HUMAN SERVICES HEALTH CARE POLICY

261.13 	Section 1. Minnesota Statutes 2024, section 62Q.522, subdivision 1, is amended to read:
261.14 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
261.15 	(b) "Contraceptive method" means a drug, device, or other product approved by the 
261.16 	Food and Drug Administration to prevent unintended pregnancy.
261.17 	(c) "Contraceptive service" means consultation, examination, procedures, and medical 
261.18 	services related to the prevention of unintended pregnancy, excluding vasectomies. This 
261.19 	includes but is not limited to voluntary sterilization procedures, patient education, counseling 
261.20 	on contraceptives, and follow-up services related to contraceptive methods or services, 
261.21 	management of side effects, counseling for continued adherence, and device insertion or 
261.22 	removal.
261.23 	(d) "Medical necessity" includes but is not limited to considerations such as severity of 
261.24 	side effects, difference in permanence and reversibility of a contraceptive method or service, 
261.25 	and ability to adhere to the appropriate use of the contraceptive method or service, as 
261.26 	determined by the attending provider.
261.27 	(e) "Therapeutic equivalent version" means a drug, device, or product that can be expected 
261.28 	to have the same clinical effect and safety profile when administered to a patient under the 
261.29 	conditions specified in the labeling, and that:
261.30 	(1) is approved as safe and effective;
262.1 	(2) is a pharmaceutical equivalent: (i) containing identical amounts of the same active 
262.2 	drug ingredient in the same dosage form and route of administration; and (ii) meeting 
262.3 	compendial or other applicable standards of strength, quality, purity, and identity;
262.4 	(3) is bioequivalent in that:
262.5 	(i) the drug, device, or product does not present a known or potential bioequivalence 
262.6 	problem and meets an acceptable in vitro standard; or
262.7 	(ii) if the drug, device, or product does present a known or potential bioequivalence 
262.8 	problem, it is shown to meet an appropriate bioequivalence standard;
262.9 	(4) is adequately labeled; and
262.10 	(5) is manufactured in compliance with current manufacturing practice regulations.

262.11 	EFFECTIVE DATE. This section is effective January 1, 2026, and applies to health 
262.12 	plans offered, issued, or renewed on or after that date.

262.13 	Sec. 2. Minnesota Statutes 2024, section 256B.0371, subdivision 3, is amended to read:
262.14 		Subd. 3.Contingent contract with dental administrator. (a) The commissioner shall 
262.15 	determine the extent to which managed care and county-based purchasing plans in the 
262.16 	aggregate meet the performance benchmark specified in subdivision 1 for coverage year 
262.17 	2024. If managed care and county-based purchasing plans in the aggregate fail to meet the 
262.18 	performance benchmark, the commissioner, after issuing a request for information followed 
262.19 	by a request for proposals, shall contract with a dental administrator to administer dental 
262.20 	services beginning January 1, 2026 2030, for all recipients of medical assistance and 
262.21 	MinnesotaCare, including persons served under fee-for-service and persons receiving 
262.22 	services through managed care and county-based purchasing plans.
262.23 	(b) The dental administrator must provide administrative services, including but not 
262.24 	limited to:
262.25 	(1) provider recruitment, contracting, and assistance;
262.26 	(2) recipient outreach and assistance;
262.27 	(3) utilization management and reviews of medical necessity for dental services;
262.28 	(4) dental claims processing;
262.29 	(5) coordination of dental care with other services;
262.30 	(6) management of fraud and abuse;
263.1 	(7) monitoring access to dental services;
263.2 	(8) performance measurement;
263.3 	(9) quality improvement and evaluation; and
263.4 	(10) management of third-party liability requirements.
263.5 	(c) Dental administrator payments to contracted dental providers must be at the rates 
263.6 	established under sections 256B.76 and 256L.11.
263.7 	(d) (c) Recipients must be given a choice of dental provider, including any provider who 
263.8 	agrees to provider participation requirements and payment rates established by the 
263.9 	commissioner and dental administrator. The dental administrator must comply with the 
263.10 	network adequacy and geographic access requirements that apply to managed care and 
263.11 	county-based purchasing plans for dental services under section 62K.14.
263.12 	(e) (d) The contract with the dental administrator must include a provision that states 
263.13 	that if the dental administrator fails to meet, by calendar year 2029 2032, a performance 
263.14 	benchmark under which at least 55 percent of children and adults who were continuously 
263.15 	enrolled for at least 11 months in either medical assistance or MinnesotaCare received at 
263.16 	least one dental visit during the calendar year, the contract must be terminated and the 
263.17 	commissioner must enter into a contract with a new dental administrator as soon as 
263.18 	practicable.
263.19 	(f) (e) The commissioner shall implement this subdivision in consultation with 
263.20 	representatives of providers who provide dental services to patients enrolled in medical 
263.21 	assistance or MinnesotaCare, including but not limited to providers serving primarily 
263.22 	low-income and socioeconomically complex populations, and with representatives of 
263.23 	managed care plans and county-based purchasing plans.

263.24 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
263.25 	to read:
263.26 		Subd. 77.Vasectomies. (a) Medical assistance covers vasectomies.
263.27 	(b) Medical assistance must meet the requirements with respect to coverage of 
263.28 	vasectomies that would otherwise apply to a health plan under section 62Q.522, except that 
263.29 	medical assistance is not required to comply with any provision of section 62Q.522 if 
263.30 	compliance with the provision would:
263.31 	(1) prevent the state from receiving federal financial participation for the coverage under 
263.32 	this subdivision;
264.1 	(2) result in a lower level of coverage or reduced access to coverage for medical assistance 
264.2 	enrollees; or
264.3 	(3) violate Code of Federal Regulations, title 42, part 441, subpart F.

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

264.7 	Sec. 4. Minnesota Statutes 2024, section 256B.76, is amended by adding a subdivision to 
264.8 	read:
264.9 		Subd. 1a.Certain long-term ambulatory electrocardiogram monitoring services. (a) 
264.10 	For the purpose of this subdivision, "long-term ambulatory electrocardiogram monitoring 
264.11 	services" means the provision of external cardiac patch monitoring devices to patients to 
264.12 	wear for 48 hours or greater and the interpretation of data gathered by such devices to detect 
264.13 	heart arrhythmias that can lead to stroke, cardiac arrest, or other comorbidities or medical 
264.14 	complications if not correctly diagnosed.
264.15 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, the 
264.16 	commissioner must reimburse diagnostic testing facilities providing long-term ambulatory 
264.17 	electrocardiogram monitoring services at 100 percent of the Medicare Physician Fee Schedule 
264.18 	rate for such services or higher.

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

264.20 	ARTICLE 8
264.21 	BEHAVIORAL HEALTH

264.22 	Section 1. Minnesota Statutes 2024, section 245.462, subdivision 20, is amended to read:
264.23 		Subd. 20.Mental illness. (a) "Mental illness" means an organic disorder of the brain or 
264.24 	a clinically significant disorder of thought, mood, perception, orientation, memory, or 
264.25 	behavior that is detailed in a diagnostic codes list published by the commissioner, and that 
264.26 	seriously limits a person's capacity to function in primary aspects of daily living such as 
264.27 	personal relations, living arrangements, work, and recreation.
264.28 	(b) An "adult with acute mental illness" means an adult who has a mental illness that is 
264.29 	serious enough to require prompt intervention.
265.1 	(c) For purposes of enrolling in case management and community support services, a 
265.2 	"person with serious and persistent mental illness" means an adult who has a mental illness 
265.3 	and meets at least one of the following criteria:
265.4 	(1) the adult has undergone two one or more episodes of inpatient, residential, or crisis 
265.5 	residential care for a mental illness within the preceding 24 12 months;
265.6 	(2) the adult has experienced a continuous psychiatric hospitalization or residential 
265.7 	treatment exceeding six months' duration within the preceding 12 months;
265.8 	(3) the adult has been treated by a crisis team two or more times within the preceding 
265.9 	24 months;
265.10 	(4) the adult:
265.11 	(i) has a diagnosis of schizophrenia, bipolar disorder, major depression, schizoaffective 
265.12 	disorder, post-traumatic stress disorder, generalized anxiety disorder, panic disorder, eating 
265.13 	disorder, or borderline personality disorder;
265.14 	(ii) indicates a significant impairment in functioning; and
265.15 	(iii) has a written opinion from a mental health professional, in the last three years, 
265.16 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
265.17 	residential treatment, of a frequency described in clause (1) or (2), or the need for in-home 
265.18 	services to remain in one's home, unless ongoing case management or community support 
265.19 	services are provided;
265.20 	(5) the adult has, in the last threefive years, been committed by a court as a person who 
265.21 	is mentally ill with a mental illness under chapter 253B, or the adult's commitment has been 
265.22 	stayed or continued; or
265.23 	(6) the adult (i) was eligible under clauses (1) to (5), but the specified time period has 
265.24 	expired or the adult was eligible as a child under section 245.4871, subdivision 6; and (ii) 
265.25 	has a written opinion from a mental health professional, in the last three years, stating that 
265.26 	the adult is reasonably likely to have future episodes requiring inpatient or residential 
265.27 	treatment, of a frequency described in clause (1) or (2), unless ongoing case management 
265.28 	or community support services are provided; or
265.29 	(7) (6) the adult was eligible as a child under section 245.4871, subdivision 6, and is 
265.30 	age 21 or younger.
266.1 	(d) For purposes of enrolling in case management and community support services, a 
266.2 	"person with a complex post-traumatic stress disorder" or "C-PTSD" means an adult who 
266.3 	has a mental illness and meets the following criteria:
266.4 	(1) the adult has post-traumatic stress disorder (PTSD) symptoms that significantly 
266.5 	interfere with daily functioning related to intergenerational trauma, racial trauma, or 
266.6 	unresolved historical grief; and
266.7 	(2) the adult has a written opinion from a mental health professional that includes 
266.8 	documentation of:
266.9 	(i) culturally sensitive assessments or screenings and identification of intergenerational 
266.10 	trauma, racial trauma, or unresolved historical grief;
266.11 	(ii) significant impairment in functioning due to the PTSD symptoms that meet C-PTSD 
266.12 	condition eligibility; and
266.13 	(iii) increasing concerns within the last three years that indicates the adult is at a 
266.14 	reasonable likelihood of experiencing significant episodes of PTSD with increased frequency, 
266.15 	impacting daily functioning unless mitigated by targeted case management or community 
266.16 	support services.
266.17 	(e) Adults may continue to receive case management or community support services if, 
266.18 	in the written opinion of a mental health professional, the person needs case management 
266.19 	or community support services to maintain the person's recovery.

266.20 	EFFECTIVE DATE. Paragraph (d) is effective upon federal approval. The commissioner 
266.21 	of human services shall notify the revisor of statutes when federal approval is obtained.

266.22 	Sec. 2. Minnesota Statutes 2024, section 245.4661, subdivision 2, is amended to read:
266.23 		Subd. 2.Program design and implementation.  Adult mental health initiatives shall 
266.24 	be responsible for designing, planning, improving, and maintaining a mental health service 
266.25 	delivery system for adults with serious and persistent mental illness that would:
266.26 	(1) provide an expanded array of services from which clients can choose services 
266.27 	appropriate to their needs;
266.28 	(2) be based on purchasing strategies that improve access and coordinate services without 
266.29 	cost shifting;
266.30 	(3) prioritize evidence-based services and implement services that are promising practices 
266.31 	or theory-based practices so that the service can be evaluated according to subdivision 5a;
267.1 	(4) incorporate existing state facilities and resources into the community mental health 
267.2 	infrastructure through creative partnerships with local vendors; and
267.3 	(5) utilize existing categorical funding streams and reimbursement sources in combined 
267.4 	and creative ways, except adult mental health initiative funding only after all other eligible 
267.5 	funding sources have been applied. Appropriations and all funds that are attributable to the 
267.6 	operation of state-operated services under the control of the Direct Care and Treatment 
267.7 	executive board are excluded unless appropriated specifically by the legislature for a purpose 
267.8 	consistent with this section.

267.9 	Sec. 3. Minnesota Statutes 2024, section 245.4661, subdivision 6, is amended to read:
267.10 		Subd. 6.Duties of commissioner. (a) For purposes of adult mental health initiatives, 
267.11 	the commissioner shall facilitate integration of funds or other resources as needed and 
267.12 	requested by each adult mental health initiative. These resources may include:
267.13 	(1) community support services funds administered under Minnesota Rules, parts 
267.14 	9535.1700 to 9535.1760;
267.15 	(2) other mental health special project funds;
267.16 	(3) medical assistance, MinnesotaCare, and housing support under chapter 256I if 
267.17 	requested by the adult mental health initiative's managing entity and if the commissioner 
267.18 	determines this would be consistent with the state's overall health care reform efforts; and
267.19 	(4) regional treatment center resources, with consent from the Direct Care and Treatment 
267.20 	executive board.
267.21 	(b) The commissioner shall consider the following criteria in awarding grants for adult 
267.22 	mental health initiatives:
267.23 	(1) the ability of the initiatives to accomplish the objectives described in subdivision 2;
267.24 	(2) the size of the target population to be served; and
267.25 	(3) geographical distribution.
267.26 	(c) (b) The commissioner shall review overall status of the initiatives at least every two 
267.27 	years and recommend any legislative changes needed by January 15 of each odd-numbered 
267.28 	year.
267.29 	(d) (c) The commissioner may waive administrative rule requirements that are 
267.30 	incompatible with the implementation of the adult mental health initiative.
268.1 	(e) (d) The commissioner may exempt the participating counties from fiscal sanctions 
268.2 	for noncompliance with requirements in laws and rules that are incompatible with the 
268.3 	implementation of the adult mental health initiative.
268.4 	(f) (e) The commissioner may award grants to an entity designated by a county board 
268.5 	or group of county boards to pay for start-up and implementation costs of the adult mental 
268.6 	health initiative.

268.7 	Sec. 4. Minnesota Statutes 2024, section 245.4661, subdivision 7, is amended to read:
268.8 		Subd. 7.Duties of adult mental health initiative board. The adult mental health 
268.9 	initiative board, or other entity which is approved to administer an adult mental health 
268.10 	initiative, shall:
268.11 	(1) administer the initiative in a manner that is consistent with the objectives described 
268.12 	in subdivision 2 and the planning process described in subdivision 5;
268.13 	(2) assure that no one is denied services that they would otherwise be eligible for; and
268.14 	(3) provide the commissioner of human services with timely and pertinent information 
268.15 	through the following methods:
268.16 	(i) submission of mental health plans and plan amendments which are based on a format 
268.17 	and timetable determined by the commissioner;
268.18 	(ii) submission of social services expenditure and grant reconciliation reports, based on 
268.19 	a coding format to be determined by mutual agreement between the initiative's managing 
268.20 	entity and the commissioner; and
268.21 	(iii) submission of data and participation in an evaluation of the adult mental health 
268.22 	initiatives, to be designed cooperatively by the commissioner and the initiatives. For services 
268.23 	provided to American Indians in Tribal Nations or urban Indian communities, oral reports 
268.24 	using a system designed in partnership between the commissioner and the reporting 
268.25 	community satisfy the requirements of this clause.

268.26 	Sec. 5. Minnesota Statutes 2024, section 245.467, subdivision 4, is amended to read:
268.27 		Subd. 4.Referral for case management. Each provider of emergency services, day 
268.28 	treatment services, outpatient treatment, community support services, residential treatment, 
268.29 	acute care hospital inpatient treatment, or regional treatment center inpatient treatment must 
268.30 	inform each of its clients with serious and persistent mental illness or a complex 
268.31 	post-traumatic stress disorder of the availability and potential benefits to the client of case 
269.1 	management. If the client consents, the provider must refer the client by notifying the county 
269.2 	employee designated by the county board to coordinate case management activities of the 
269.3 	client's name and address and by informing the client of whom to contact to request case 
269.4 	management. The provider must document compliance with this subdivision in the client's 
269.5 	record.

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

269.8 	Sec. 6. Minnesota Statutes 2024, section 245.4711, subdivision 1, is amended to read:
269.9 		Subdivision 1.Availability of case management services. (a) By January 1, 1989, The 
269.10 	county board shall provide case management services for all adults with serious and persistent 
269.11 	mental illness or a complex post-traumatic stress disorder who are residents of the county 
269.12 	and who request or consent to the services and to each adult for whom the court appoints a 
269.13 	case manager. Staffing ratios must be sufficient to serve the needs of the clients. The case 
269.14 	manager must meet the requirements in section 245.462, subdivision 4.
269.15 	(b) Case management services provided to adults with serious and persistent mental 
269.16 	illness or a complex post-traumatic stress disorder eligible for medical assistance must be 
269.17 	billed to the medical assistance program under sections 256B.02, subdivision 8, and 
269.18 	256B.0625.
269.19 	(c) Case management services are eligible for reimbursement under the medical assistance 
269.20 	program. Costs associated with mentoring, supervision, and continuing education may be 
269.21 	included in the reimbursement rate methodology used for case management services under 
269.22 	the medical assistance program.

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

269.25 	Sec. 7. Minnesota Statutes 2024, section 245.4711, subdivision 4, is amended to read:
269.26 		Subd. 4.Individual community support plan. (a) The case manager must develop an 
269.27 	individual community support plan for each adult that incorporates the client's individual 
269.28 	treatment plan. The individual treatment plan may not be a substitute for the development 
269.29 	of an individual community support plan. The individual community support plan must be 
269.30 	developed within 30 days of client intake and reviewed at least every 180 days after it is 
269.31 	developed, unless the case manager receives a written request from the client or the client's 
269.32 	family for a review of the plan every 90 days after it is developed. The case manager is 
270.1 	responsible for developing the individual community support plan based on a diagnostic 
270.2 	assessment and a functional assessment and for implementing and monitoring the delivery 
270.3 	of services according to the individual community support plan. To the extent possible, the 
270.4 	adult with serious and persistent mental illness or a complex post-traumatic stress disorder, 
270.5 	the person's family, advocates, service providers, and significant others must be involved 
270.6 	in all phases of development and implementation of the individual community support plan.
270.7 	(b) The client's individual community support plan must state:
270.8 	(1) the goals of each service;
270.9 	(2) the activities for accomplishing each goal;
270.10 	(3) a schedule for each activity; and
270.11 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
270.12 	need and the implementation of the individual community support plan.

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

270.15 	Sec. 8. Minnesota Statutes 2024, section 245.4712, subdivision 1, is amended to read:
270.16 		Subdivision 1.Availability of community support services. (a) County boards must 
270.17 	provide or contract for sufficient community support services within the county to meet the 
270.18 	needs of adults with serious and persistent mental illness or a complex post-traumatic stress 
270.19 	disorder who are residents of the county. Adults may be required to pay a fee according to 
270.20 	section 245.481. The community support services program must be designed to improve 
270.21 	the ability of adults with serious and persistent mental illness or a complex post-traumatic 
270.22 	stress disorder to:
270.23 	(1) find and maintain competitive employment;
270.24 	(2) handle basic activities of daily living;
270.25 	(3) participate in leisure time activities;
270.26 	(4) set goals and plans; and
270.27 	(5) obtain and maintain appropriate living arrangements.
270.28 	The community support services program must also be designed to reduce the need for 
270.29 	and use of more intensive, costly, or restrictive placements both in number of admissions 
270.30 	and length of stay.
271.1 	(b) Community support services are those services that are supportive in nature and not 
271.2 	necessarily treatment oriented, and include:
271.3 	(1) conducting outreach activities such as home visits, health and wellness checks, and 
271.4 	problem solving;
271.5 	(2) connecting people to resources to meet their basic needs;
271.6 	(3) finding, securing, and supporting people in their housing;
271.7 	(4) attaining and maintaining health insurance benefits;
271.8 	(5) assisting with job applications, finding and maintaining employment, and securing 
271.9 	a stable financial situation;
271.10 	(6) fostering social support, including support groups, mentoring, peer support, and other 
271.11 	efforts to prevent isolation and promote recovery; and
271.12 	(7) educating about mental illness, treatment, and recovery.
271.13 	(c) Community support services shall use all available funding streams. The county shall 
271.14 	maintain the level of expenditures for this program, as required under section 245.4835. 
271.15 	County boards must continue to provide funds for those services not covered by other 
271.16 	funding streams and to maintain an infrastructure to carry out these services. The county is 
271.17 	encouraged to fund evidence-based practices such as Individual Placement and Supported 
271.18 	Employment and Illness Management and Recovery.
271.19 	(d) The commissioner shall collect data on community support services programs, 
271.20 	including, but not limited to, demographic information such as age, sex, race, the number 
271.21 	of people served, and information related to housing, employment, hospitalization, symptoms, 
271.22 	and satisfaction with services.

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

271.25 	Sec. 9. Minnesota Statutes 2024, section 245.4712, subdivision 3, is amended to read:
271.26 		Subd. 3.Benefits assistance. The county board must offer to help adults with serious 
271.27 	and persistent mental illness or a complex post-traumatic stress disorder in applying for 
271.28 	state and federal benefits, including Supplemental Security Income, medical assistance, 
271.29 	Medicare, general assistance, and Minnesota supplemental aid. The help must be offered 
271.30 	as part of the community support program available to adults with serious and persistent 
271.31 	mental illness or a complex post-traumatic stress disorder for whom the county is financially 
271.32 	responsible and who may qualify for these benefits.

272.1 	Sec. 10. Minnesota Statutes 2024, section 245.4871, subdivision 5, is amended to read:
272.2 		Subd. 5.Child. "Child" means a person under 18 years of age, or a person 18 years of 
272.3 	age or older and under 21 years of age receiving continuous children's mental health targeted 
272.4 	case management services as defined in section 245.4875, subdivision 8.

272.5 	Sec. 11. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
272.6 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
272.7 	make grants from available appropriations to assist:
272.8 	(1) counties;
272.9 	(2) Indian tribes;
272.10 	(3) children's collaboratives under section 142D.15 or 245.493; or
272.11 	(4) mental health service providers.
272.12 	(b) The following services are eligible for grants under this section:
272.13 	(1) services to children with emotional disturbances as defined in section 245.4871, 
272.14 	subdivision 15, and their families;
272.15 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
272.16 	age 21 and their families;
272.17 	(3) respite care services for children with emotional disturbances or severe emotional 
272.18 	disturbances who are at risk of residential treatment or hospitalization, who are already in 
272.19 	out-of-home placement in family foster settings as defined in chapter 142B and at risk of 
272.20 	change in out-of-home placement or placement in a residential facility or other higher level 
272.21 	of care, who have utilized crisis services or emergency room services, or who have 
272.22 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
272.23 	care services are defined under subdivision 4. A child is not required to have case 
272.24 	management services to receive respite care services. Counties must work to provide access 
272.25 	to regularly scheduled respite care;
272.26 	(4) children's mental health crisis services;
272.27 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
272.28 	(6) mental health services for people from cultural and ethnic minorities, including 
272.29 	supervision of clinical trainees who are Black, indigenous, or people of color;
272.30 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
273.1 	(8) services to promote and develop the capacity of providers to use evidence-based 
273.2 	practices in providing children's mental health services;
273.3 	(9) school-linked mental health services under section 245.4901;
273.4 	(10) building evidence-based mental health intervention capacity for children birth to 
273.5 	age five;
273.6 	(11) suicide prevention and counseling services that use text messaging statewide;
273.7 	(12) mental health first aid training;
273.8 	(13) training for parents, collaborative partners, and mental health providers on the 
273.9 	impact of adverse childhood experiences and trauma and development of an interactive 
273.10 	website to share information and strategies to promote resilience and prevent trauma;
273.11 	(14) transition age services to develop or expand mental health treatment and supports 
273.12 	for adolescents and young adults 26 years of age or younger;
273.13 	(15) early childhood mental health consultation;
273.14 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
273.15 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
273.16 	psychosis;
273.17 	(17) psychiatric consultation for primary care practitioners; and
273.18 	(18) providers to begin operations and meet program requirements when establishing a 
273.19 	new children's mental health program. These may be start-up grants; and
273.20 	(19) evidence-based interventions for youth and young adults at risk of developing or 
273.21 	experiencing an early episode of bipolar disorder.
273.22 	(c) Services under paragraph (b) must be designed to help each child to function and 
273.23 	remain with the child's family in the community and delivered consistent with the child's 
273.24 	treatment plan. Transition services to eligible young adults under this paragraph must be 
273.25 	designed to foster independent living in the community.
273.26 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
273.27 	reimbursement sources, if applicable.
273.28 	(e) The commissioner may establish and design a pilot program to expand the mobile 
273.29 	response and stabilization services model for children, youth, and families. The commissioner 
273.30 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
274.1 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
274.2 	amendment to scale the model statewide.

274.3 	Sec. 12. Minnesota Statutes 2024, section 245.4905, is amended to read:
274.4 	245.4905 FIRST EPISODE OF PSYCHOSIS AND EARLY EPISODE OF 
274.5 	BIPOLAR DISORDER GRANT PROGRAM.
274.6 		Subdivision 1.Creation Establishment. The commissioner of human services must 
274.7 	establish the first episode of psychosis and early episode of bipolar disorder grant program 
274.8 	is established in the Department of Human Services within the department to fund: (1)
274.9 	evidence-based interventions for youth and young adults at risk of developing or experiencing 
274.10 	a first episode of psychosis or an early episode of bipolar disorder; and (2) a public awareness 
274.11 	campaign on the signs and symptoms of psychosis. First episode of psychosis services are 
274.12 	eligible for children's mental health grants as specified in section 245.4889, subdivision 1, 
274.13 	paragraph (b), clause (15) For purposes of this section, "youth and young adults" means 
274.14 	individuals who are 15 years of age or older and under 41 years of age.
274.15 		Subd. 2.Activities. (a) All first episode of psychosis grant programs or early episode 
274.16 	of bipolar disorder grantees must:
274.17 	(1) provide intensive treatment and support for adolescents and youth and young adults 
274.18 	experiencing or at risk of experiencing a first psychotic episode of psychosis or early episodes 
274.19 	of bipolar disorder. Intensive treatment and support includes may include medication 
274.20 	management, psychoeducation for an individual and an individual's family, case management, 
274.21 	employment support, education support, cognitive behavioral approaches, social skills 
274.22 	training, peer and family peer support, crisis planning, and stress management;
274.23 	(2) conduct outreach and provide training and guidance to mental health and health care 
274.24 	professionals, including postsecondary health clinicians, on early psychosis and bipolar 
274.25 	disorder symptoms, screening tools, and best practices;
274.26 	(3) ensure access for individuals to first psychotic episode of psychosis services under 
274.27 	this section, including access for individuals who live in rural areas; and
274.28 	(4) use all available funding streams.
274.29 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
274.30 	receiving services or to address other barriers preventing individuals and their families from 
274.31 	participating in first psychotic episode of psychosis services.
275.1 		Subd. 3.Eligibility Funding. Program activities must be provided to people 15 to 40 
275.2 	years old with early signs of psychosis First episode of psychosis services and early episode 
275.3 	of bipolar disorder services are eligible for children's mental health grants as specified in 
275.4 	section 245.4889, subdivision 1, paragraph (b), clauses (16) and (19).
275.5 		Subd. 4.Outcomes. (a) The commissioner must annually evaluate the first episode of 
275.6 	psychosis and early episode of bipolar disorder grant program.
275.7 	(b) The evaluation of program activities must utilize evidence-based practices and must 
275.8 	include the following outcome evaluation criteria:
275.9 	(1) whether individuals experience a reduction in psychotic symptoms;
275.10 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations
275.11 	or interactions with the criminal justice system; and
275.12 	(3) whether individuals experience an increase in educational attainment or employment.
275.13 	(c) By July 1, 2026, and every July 1 thereafter, the commissioner must provide a report 
275.14 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
275.15 	over behavioral health, along with the chairs and ranking minority members of the senate 
275.16 	finance committee and house of representatives ways and means committee. The report 
275.17 	must include the number of grantees receiving funds under this section, the number of 
275.18 	individuals served under this section, data from the evaluation conducted under this 
275.19 	subdivision, and information on the use of state and federal funds for the services provided 
275.20 	under this section.
275.21 		Subd. 5.Federal aid or grants. The commissioner of human services must comply with 
275.22 	all conditions and requirements necessary to receive federal aid or grants.

275.23 	Sec. 13. Minnesota Statutes 2024, section 256B.0625, subdivision 20, is amended to read:
275.24 		Subd. 20.Mental health case management. (a) To the extent authorized by rule of the 
275.25 	state agency, medical assistance covers case management services to persons with serious 
275.26 	and persistent mental illness, persons with a complex post-traumatic stress disorder, and 
275.27 	children with severe emotional disturbance. Services provided under this section must meet 
275.28 	the relevant standards in sections 245.461 to 245.4887, the Comprehensive Adult and 
275.29 	Children's Mental Health Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
275.30 	9505.0322, excluding subpart 10.
275.31 	(b) Entities meeting program standards set out in rules governing family community 
275.32 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
276.1 	assistance reimbursement for case management services for children with severe emotional 
276.2 	disturbance when these services meet the program standards in Minnesota Rules, parts 
276.3 	9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.
276.4 	(c) Medical assistance and MinnesotaCare payment for mental health case management 
276.5 	shall be made on a monthly basis. In order to receive payment for an eligible child, the 
276.6 	provider must document at least a face-to-face contact either in person or by interactive 
276.7 	video that meets the requirements of subdivision 20b with the child, the child's parents, or 
276.8 	the child's legal representative. To receive payment for an eligible adult, the provider must 
276.9 	document:
276.10 	(1) at least a face-to-face contact with the adult or the adult's legal representative either 
276.11 	in person or by interactive video that meets the requirements of subdivision 20b; or
276.12 	(2) at least a telephone contact with the adult or the adult's legal representative and 
276.13 	document a face-to-face contact either in person or by interactive video that meets the 
276.14 	requirements of subdivision 20b with the adult or the adult's legal representative within the 
276.15 	preceding two months.
276.16 	(d) Payment for mental health case management provided by county or state staff shall 
276.17 	be based on the monthly rate methodology under section 256B.094, subdivision 6, paragraph 
276.18 	(b), with separate rates calculated for child welfare and mental health, and within mental 
276.19 	health, separate rates for children and adults.
276.20 	(e) Payment for mental health case management provided by Indian health services or 
276.21 	by agencies operated by Indian tribes may be made according to this section or other relevant 
276.22 	federally approved rate setting methodology.
276.23 	(f) Payment for mental health case management provided by vendors who contract with 
276.24 	a county must be calculated in accordance with section 256B.076, subdivision 2. Payment 
276.25 	for mental health case management provided by vendors who contract with a Tribe must 
276.26 	be based on a monthly rate negotiated by the Tribe. The rate must not exceed the rate charged 
276.27 	by the vendor for the same service to other payers. If the service is provided by a team of 
276.28 	contracted vendors, the team shall determine how to distribute the rate among its members. 
276.29 	No reimbursement received by contracted vendors shall be returned to the county or tribe, 
276.30 	except to reimburse the county or tribe for advance funding provided by the county or tribe 
276.31 	to the vendor.
276.32 	(g) If the service is provided by a team which includes contracted vendors, tribal staff, 
276.33 	and county or state staff, the costs for county or state staff participation in the team shall be 
276.34 	included in the rate for county-provided services. In this case, the contracted vendor, the 
277.1 	tribal agency, and the county may each receive separate payment for services provided by 
277.2 	each entity in the same month. In order to prevent duplication of services, each entity must 
277.3 	document, in the recipient's file, the need for team case management and a description of 
277.4 	the roles of the team members.
277.5 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for 
277.6 	mental health case management shall be provided by the recipient's county of responsibility, 
277.7 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds 
277.8 	used to match other federal funds. If the service is provided by a tribal agency, the nonfederal 
277.9 	share, if any, shall be provided by the recipient's tribe. When this service is paid by the state 
277.10 	without a federal share through fee-for-service, 50 percent of the cost shall be provided by 
277.11 	the recipient's county of responsibility.
277.12 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical assistance 
277.13 	and MinnesotaCare include mental health case management. When the service is provided 
277.14 	through prepaid capitation, the nonfederal share is paid by the state and the county pays no 
277.15 	share.
277.16 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a provider 
277.17 	that does not meet the reporting or other requirements of this section. The county of 
277.18 	responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal agency, 
277.19 	is responsible for any federal disallowances. The county or tribe may share this responsibility 
277.20 	with its contracted vendors.
277.21 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
277.22 	expenditures under this section to repay the special revenue maximization account under 
277.23 	section 256.01, subdivision 2, paragraph (n). The repayment is limited to:
277.24 	(1) the costs of developing and implementing this section; and
277.25 	(2) programming the information systems.
277.26 	(l) Payments to counties and tribal agencies for case management expenditures under 
277.27 	this section shall only be made from federal earnings from services provided under this 
277.28 	section. When this service is paid by the state without a federal share through fee-for-service, 
277.29 	50 percent of the cost shall be provided by the state. Payments to county-contracted vendors 
277.30 	shall include the federal earnings, the state share, and the county share.
277.31 	(m) Case management services under this subdivision do not include therapy, treatment, 
277.32 	legal, or outreach services.
278.1 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, 
278.2 	and the recipient's institutional care is paid by medical assistance, payment for case 
278.3 	management services under this subdivision is limited to the lesser of:
278.4 	(1) the last 180 days of the recipient's residency in that facility and may not exceed more 
278.5 	than six months in a calendar year; or
278.6 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
278.7 	(o) Payment for case management services under this subdivision shall not duplicate 
278.8 	payments made under other program authorities for the same purpose.
278.9 	(p) If the recipient is receiving care in a hospital, nursing facility, or residential setting 
278.10 	licensed under chapter 245A or 245D that is staffed 24 hours a day, seven days a week, 
278.11 	mental health targeted case management services must actively support identification of 
278.12 	community alternatives for the recipient and discharge planning.

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

278.15 	Sec. 14. MENTAL HEALTH COLLABORATION HUB INNOVATION PILOT 
278.16 	PROGRAM.
 278.17 	(a) The commissioner of human services must support the Mental Health Collaboration 
278.18 	Hub's pilot project to develop and implement innovative care pathways and care facility 
278.19 	decompression strategies by providing funding support and technical assistance and entering 
278.20 	into a data-sharing agreement with the Mental Health Collaboration Hub. The pilot project 
278.21 	must fund, track, and evaluate activities that expedite transitions of children from 
278.22 	inappropriate care settings to appropriate care settings. A steering committee of expert 
278.23 	Mental Health Collaboration Hub participants that represent the continuum of children's 
278.24 	behavioral health care must guide funding determinations to support the transition of up to 
278.25 	200 children per year.
278.26 	(b) On January 1, 2027, and January 1, 2028, the Mental Health Collaboration Hub must 
278.27 	submit a report to the commissioner and chairs and ranking minority members of the 
278.28 	legislative committees with jurisdiction over children's mental health and juvenile detention. 
278.29 	The report must describe how the grant money was spent and summarize the impact the 
278.30 	pilot project had on participating children, families, and providers.

279.1 	Sec. 15. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY REPORT.
 279.2 	(a) By January 15, 2026, the commissioner of human services, in consultation with 
279.3 	organizations operating psychiatric residential treatment facilities, advocates, health care 
279.4 	experts, juvenile detention experts, and county representatives, must submit a report and 
279.5 	proposed legislative changes to the chairs and ranking minority members of the legislative 
279.6 	committees with jurisdiction over children's mental health and juvenile detention. The 
279.7 	submitted report must include recommendations on:
279.8 	(1) amending the state medical assistance plan to expand access to care provided in 
279.9 	psychiatric residential treatment facilities, with consideration being given to enhancing 
279.10 	flexibilities to serve a continuum of mental health needs;
279.11 	(2) developing licensing standards for psychiatric residential treatment facilities that 
279.12 	reflect needed flexibilities and the broad inclusion of settings where care can be delivered; 
279.13 	and
279.14 	(3) updating the rate methodology for services provided in psychiatric residential 
279.15 	treatment facilities to assure high quality of care with required individualization.
279.16 	(b) When developing the recommendations required under paragraph (a), the 
279.17 	commissioner must:
279.18 	(1) consider how best to meet the needs of children with high levels of complexity, 
279.19 	aggression, and other related barriers to being served by community providers; and
279.20 	(2) determine what would be required, including needed infrastructure, staffing, and 
279.21 	sustainable funding sources, to allow qualified residential treatment programs to transition 
279.22 	to a psychiatric residential treatment facility standard of care.

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

279.24 	ARTICLE 9
279.25 	BEHAVIORAL HEALTH POLICY

279.26 	Section 1. Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:
279.27 		Subd. 2.Definitions. For the purposes of this section, "patient" means a person who is 
279.28 	admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for 
279.29 	the purpose of diagnosis or treatment bearing on the physical or mental health of that person. 
279.30 	For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a 
279.31 	person who receives health care services at an outpatient surgical center or at a birth center 
279.32 	licensed under section 144.615. "Patient" also means a minor who is admitted to a residential 
280.1 	program as defined in section 253C.01. For purposes of subdivisions 1, 3 to 16, 18, 20 and 
280.2 	30, "patient" also means any person who is receiving mental health treatment on an outpatient 
280.3 	basis or in a community support program or other community-based program. "Resident" 
280.4 	means a person who is admitted to a nonacute care facility including extended care facilities, 
280.5 	nursing homes, and boarding care homes for care required because of prolonged mental or 
280.6 	physical illness or disability, recovery from injury or disease, or advancing age. For purposes 
280.7 	of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is 
280.8 	admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 
280.9 	4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a 
280.10 	supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which 
280.11 	operates a rehabilitation program licensed under chapter 245G or 245I, or Minnesota Rules, 
280.12 	parts 9530.6510 to 9530.6590. For purposes of all subdivisions except subdivisions 20, 28, 
280.13 	29, 32, and 33, resident also means a person who is admitted to a facility licensed to provide 
280.14 	intensive residential treatment services or residential crisis stabilization under section 
280.15 	245I.23.

280.16 	Sec. 2. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
280.17 		Subd. 4.Case management service provider. (a) "Case management service provider" 
280.18 	means a case manager or case manager associate employed by the county or other entity 
280.19 	authorized by the county board to provide case management services specified in section 
280.20 	245.4711.
280.21 	(b) A case manager must:
280.22 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
280.23 	(2) be knowledgeable about local community resources and how to use those resources 
280.24 	for the benefit of the client;
280.25 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
280.26 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
280.27 	limited to, social work, psychology, or nursing from an accredited college or university. A 
280.28 	case manager who is not a mental health practitioner and or who does not have a bachelor's 
280.29 	degree in one of the behavioral sciences or related fields must meet the requirements of 
280.30 	paragraph (c); and
280.31 	(4) meet the supervision and continuing education requirements described in paragraphs 
280.32 	(d), (e), and (f), as applicable.
281.1 	(c) Case managers without a bachelor's degree or with a bachelor's degree that is not in 
281.2 	one of the behavioral sciences or related fields must meet one of the requirements in clauses 
281.3 	(1) to (3) (5):
281.4 	(1) have three or four years of experience as a case manager associate as defined in this 
281.5 	section;
281.6 	(2) be a registered nurse without a bachelor's degree and have a combination of 
281.7 	specialized training in psychiatry and work experience consisting of community interaction 
281.8 	and involvement or community discharge planning in a mental health setting totaling three 
281.9 	years; or
281.10 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
281.11 	Service waiver provision and meet the continuing education and mentoring requirements 
281.12 	in this section.;
281.13 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
281.14 	characteristics and needs of adults with serious and persistent mental illness that is consistent 
281.15 	with national practice standards; or
281.16 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
281.17 	of the characteristics and needs of adults with serious and persistent mental illness, consistent 
281.18 	with national practice standards.
281.19 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
281.20 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
281.21 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
281.22 	supervision regarding individual service delivery with a case management supervisor. The 
281.23 	remaining 26 hours of supervision may be provided by a case manager with two years of 
281.24 	experience. Group supervision may not constitute more than one-half of the required 
281.25 	supervision hours. Clinical supervision must be documented in the client record.
281.26 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
281.27 	services to adults with mental illness must:
281.28 	(1) receive clinical supervision regarding individual service delivery from a mental 
281.29 	health professional at least one hour per week until the requirement of 2,000 hours of 
281.30 	experience is met; and
281.31 	(2) complete 40 hours of training approved by the commissioner in case management 
281.32 	skills and the characteristics and needs of adults with serious and persistent mental illness.
282.1 	(f) A case manager who is not licensed, registered, or certified by a health-related 
282.2 	licensing board must receive 30 hours of continuing education and training in mental illness 
282.3 	and mental health services every two years.
282.4 	(g) A case manager associate (CMA) must:
282.5 	(1) work under the direction of a case manager or case management supervisor;
282.6 	(2) be at least 21 years of age;
282.7 	(3) have at least a high school diploma or its equivalent; and
282.8 	(4) meet one of the following criteria:
282.9 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
282.10 	(ii) be a certified peer specialist under section 256B.0615;
282.11 	(iii) be a registered nurse without a bachelor's degree;
282.12 	(iv) within the previous ten years, have three years of life experience with serious and 
282.13 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
282.14 	disturbance as defined in section 245.4871, subdivision 6; or have three years life experience 
282.15 	as a primary caregiver to an adult with serious and persistent mental illness within the 
282.16 	previous ten years;
282.17 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
282.18 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
282.19 	persons with mental illness.
282.20 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
282.21 	after four years of supervised work experience as a case manager associate. Individuals 
282.22 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
282.23 	experience as a case manager associate.
282.24 	(h) A case management associate must meet the following supervision, mentoring, and 
282.25 	continuing education requirements:
282.26 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
282.27 	(2) receive at least 40 hours of annual continuing education in mental illness and mental 
282.28 	health services annually; andaccording to the following schedule, based on years of service 
282.29 	as a case management associate:
282.30 	(i) at least 40 hours in the first year;
283.1 	(ii) at least 30 hours in the second year;
283.2 	(iii) at least 20 hours in the third year; and
283.3 	(iv) at least 20 hours in the fourth year; and
283.4 	(3) receive at least five four hours of mentoring supervision per week month from a case 
283.5 	management mentor supervisor.
283.6 	A "case management mentor" means a qualified, practicing case manager or case management 
283.7 	supervisor who teaches or advises and provides intensive training and clinical supervision 
283.8 	to one or more case manager associates. Mentoring may occur while providing direct services 
283.9 	to consumers in the office or in the field and may be provided to individuals or groups of 
283.10 	case manager associates. At least two mentoring hours per week must be individual and 
283.11 	face-to-face.
283.12 	(i) A case management supervisor must meet the criteria for mental health professionals, 
283.13 	as specified in subdivision 18.
283.14 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
283.15 	provide case management services to adult immigrants with serious and persistent mental 
283.16 	illness who are members of the same ethnic group as the case manager if the person:
283.17 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
283.18 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
283.19 	limited to, social work, psychology, or nursing from an accredited college or university;
283.20 	(2) completes 40 hours of training as specified in this subdivision; and
283.21 	(3) receives clinical supervision at least once a week until the requirements of this 
283.22 	subdivision are met.

283.23 	Sec. 3. Minnesota Statutes 2024, section 245.4661, subdivision 9, is amended to read:
283.24 		Subd. 9.Services and programs. (a) The following three distinct grant programs are 
283.25 	funded under this section:
283.26 	(1) mental health crisis services;
283.27 	(2) housing with supports for adults with serious mental illness; and
283.28 	(3) projects for assistance in transitioning from homelessness (PATH program).
283.29 	(b) In addition, the following are eligible for grant funds:
283.30 	(1) community education and prevention;
284.1 	(2) client outreach;
284.2 	(3) early identification and intervention;
284.3 	(4) adult outpatient diagnostic assessment and psychological testing;
284.4 	(5) peer support services;
284.5 	(6) community support program services (CSP);
284.6 	(7) adult residential crisis stabilization;
284.7 	(8) supported employment;
284.8 	(9) assertive community treatment (ACT);
284.9 	(10) housing subsidies;
284.10 	(11) basic living, social skills, and community intervention;
284.11 	(12) emergency response services;
284.12 	(13) adult outpatient psychotherapy;
284.13 	(14) adult outpatient medication management;
284.14 	(15) adult mobile crisis services, including the purchase and renovation of vehicles by 
284.15 	mobile crisis teams in order to provide protected transport under section 256B.0625, 
284.16 	subdivision 17, paragraph (l), clause (6);
284.17 	(16) adult day treatment;
284.18 	(17) partial hospitalization;
284.19 	(18) adult residential treatment;
284.20 	(19) adult mental health targeted case management; and
284.21 	(20) transportation.

284.22 	Sec. 4. Minnesota Statutes 2024, section 245.469, is amended to read:
284.23 	245.469 EMERGENCY SERVICES.
284.24 		Subdivision 1.Availability of emergency services. (a) County boards must provide or 
284.25 	contract for enough emergency services within the county to meet the needs of adults, 
284.26 	children, and families in the county who are experiencing an emotional crisis or mental 
284.27 	illness. Clients must not be charged for services provided. Emergency service providers 
284.28 	must not delay the timely provision of emergency services to a client because of the 
284.29 	unwillingness or inability of the client to pay for services meet the qualifications under 
285.1 	section 256B.0624, subdivision 4. Emergency services must include assessment, crisis 
285.2 	intervention, and appropriate case disposition. Emergency services must:
285.3 	(1) promote the safety and emotional stability of each client;
285.4 	(2) minimize further deterioration of each client;
285.5 	(3) help each client to obtain ongoing care and treatment;
285.6 	(4) prevent placement in settings that are more intensive, costly, or restrictive than 
285.7 	necessary and appropriate to meet client needs; and
285.8 	(5) provide support, psychoeducation, and referrals to each client's family members, 
285.9 	service providers, and other third parties on behalf of the client in need of emergency 
285.10 	services.
285.11 	(b) If a county provides engagement services under section 253B.041, the county's 
285.12 	emergency service providers must refer clients to engagement services when the client 
285.13 	meets the criteria for engagement services.
285.14 		Subd. 2.Specific requirements. (a) The county board shall require that all service 
285.15 	providers of emergency services to adults or children with mental illness provide immediate 
285.16 	direct access to a mental health professional during regular business hours. For evenings, 
285.17 	weekends, and holidays, the service may be by direct toll-free telephone access to a mental 
285.18 	health professional, clinical trainee, or mental health practitioner.
285.19 	(b) The commissioner may waive the requirement in paragraph (a) that the evening, 
285.20 	weekend, and holiday service be provided by a mental health professional, clinical trainee, 
285.21 	or mental health practitioner if the county documents that:
285.22 	(1) mental health professionals, clinical trainees, or mental health practitioners are 
285.23 	unavailable to provide this service;
285.24 	(2) services are provided by a designated person with training in human services who 
285.25 	receives treatment supervision from a mental health professional; and
285.26 	(3) the service provider is not also the provider of fire and public safety emergency 
285.27 	services.
285.28 	(c) The commissioner may waive the requirement in paragraph (b), clause (3), that the 
285.29 	evening, weekend, and holiday service not be provided by the provider of fire and public 
285.30 	safety emergency services if:
285.31 	(1) every person who will be providing the first telephone contact has received at least 
285.32 	eight hours of training on emergency mental health services approved by the commissioner;
286.1 	(2) every person who will be providing the first telephone contact will annually receive 
286.2 	at least four hours of continued training on emergency mental health services approved by 
286.3 	the commissioner;
286.4 	(3) the local social service agency has provided public education about available 
286.5 	emergency mental health services and can assure potential users of emergency services that 
286.6 	their calls will be handled appropriately;
286.7 	(4) the local social service agency agrees to provide the commissioner with accurate 
286.8 	data on the number of emergency mental health service calls received;
286.9 	(5) the local social service agency agrees to monitor the frequency and quality of 
286.10 	emergency services; and
286.11 	(6) the local social service agency describes how it will comply with paragraph (d).
286.12 	(d) Whenever emergency service during nonbusiness hours is provided by anyone other 
286.13 	than a mental health professional, a mental health professional must be available on call for 
286.14 	an emergency assessment and crisis intervention services, and must be available for at least 
286.15 	telephone consultation within 30 minutes.
286.16 		Subd. 3.Mental health crisis services. The commissioner of human services shall 
286.17 	increase access to mental health crisis services for children and adults. In order to increase 
286.18 	access, the commissioner must:
286.19 	(1) develop a central phone number where calls can be routed to the appropriate crisis 
286.20 	services promote the 988 Lifeline;
286.21 	(2) provide telephone consultation 24 hours a day to mobile crisis teams who are serving 
286.22 	people with traumatic brain injury or intellectual disabilities who are experiencing a mental 
286.23 	health crisis;
286.24 	(3) expand crisis services across the state, including rural areas of the state and examining 
286.25 	access per population;
286.26 	(4) establish and implement state standards and requirements for crisis services as outlined 
286.27 	in section 256B.0624; and
286.28 	(5) provide grants to adult mental health initiatives, counties, tribes, or community mental 
286.29 	health providers to establish new mental health crisis residential service capacity.
286.30 	Priority will be given to regions that do not have a mental health crisis residential services 
286.31 	program, do not have an inpatient psychiatric unit within the region, do not have an inpatient 
286.32 	psychiatric unit within 90 miles, or have a demonstrated need based on the number of crisis 
287.1 	residential or intensive residential treatment beds available to meet the needs of the residents 
287.2 	in the region. At least 50 percent of the funds must be distributed to programs in rural 
287.3 	Minnesota. Grant funds may be used for start-up costs, including but not limited to 
287.4 	renovations, furnishings, and staff training. Grant applications shall provide details on how 
287.5 	the intended service will address identified needs and shall demonstrate collaboration with 
287.6 	crisis teams, other mental health providers, hospitals, and police.

287.7 	Sec. 5. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
287.8 		Subd. 4.Case management service provider. (a) "Case management service provider" 
287.9 	means a case manager or case manager associate employed by the county or other entity 
287.10 	authorized by the county board to provide case management services specified in subdivision 
287.11 	3 for the child with severe emotional disturbance and the child's family.
287.12 	(b) A case manager must:
287.13 	(1) have experience and training in working with children;
287.14 	(2) be a mental health practitioner under section 245I.04, subdivision 4, or have at least 
287.15 	a bachelor's degree in one of the behavioral sciences or a related field including, but not 
287.16 	limited to, social work, psychology, or nursing from an accredited college or university or 
287.17 	meet the requirements of paragraph (d);
287.18 	(3) have experience and training in identifying and assessing a wide range of children's 
287.19 	needs;
287.20 	(4) be knowledgeable about local community resources and how to use those resources 
287.21 	for the benefit of children and their families; and
287.22 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
287.23 	and (g), as applicable.
287.24 	(c) A case manager may be a member of any professional discipline that is part of the 
287.25 	local system of care for children established by the county board.
287.26 	(d) A case manager without a bachelor's degree who is not a mental health practitioner 
287.27 	and does not have a bachelor's degree or who has a bachelor's degree that is not in one of 
287.28 	the behavioral sciences or related fields must meet one of the requirements in clauses (1) 
287.29 	to (3) (5):
287.30 	(1) have three or four years of experience as a case manager associate;
287.31 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
287.32 	training in psychiatry and work experience consisting of community interaction and 
288.1 	involvement or community discharge planning in a mental health setting totaling three years; 
288.2 	or
288.3 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
288.4 	Services waiver provision and meets the continuing education, supervision, and mentoring 
288.5 	requirements in this section.;
288.6 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
288.7 	characteristics and needs of children with severe emotional disturbance, consistent with 
288.8 	national practices standards; or
288.9 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
288.10 	of the characteristics and needs of children with severe emotional disturbance, consistent 
288.11 	with national practices standards.
288.12 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
288.13 	of mental health services to children must receive regular ongoing supervision and clinical 
288.14 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
288.15 	supervision regarding individual service delivery with a case management supervisor. The 
288.16 	other 26 hours of supervision may be provided by a case manager with two years of 
288.17 	experience. Group supervision may not constitute more than one-half of the required 
288.18 	supervision hours.
288.19 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
288.20 	mental health services to children with emotional disturbance must:
288.21 	(1) begin 40 hours of training approved by the commissioner of human services in case 
288.22 	management skills and in the characteristics and needs of children with severe emotional 
288.23 	disturbance before beginning to provide case management services; and
288.24 	(2) receive clinical supervision regarding individual service delivery from a mental 
288.25 	health professional at least one hour each week until the requirement of 2,000 hours of 
288.26 	experience is met.
288.27 	(g) A case manager who is not licensed, registered, or certified by a health-related 
288.28 	licensing board must receive 30 hours of continuing education and training in severe 
288.29 	emotional disturbance and mental health services every two years.
288.30 	(h) Clinical supervision must be documented in the child's record. When the case manager 
288.31 	is not a mental health professional, the county board must provide or contract for needed 
288.32 	clinical supervision.
289.1 	(i) The county board must ensure that the case manager has the freedom to access and 
289.2 	coordinate the services within the local system of care that are needed by the child.
289.3 	(j) A case manager associate (CMA) must:
289.4 	(1) work under the direction of a case manager or case management supervisor;
289.5 	(2) be at least 21 years of age;
289.6 	(3) have at least a high school diploma or its equivalent; and
289.7 	(4) meet one of the following criteria:
289.8 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
289.9 	(ii) be a registered nurse without a bachelor's degree;
289.10 	(iii) have three years of life experience as a primary caregiver to a child with serious 
289.11 	emotional disturbance as defined in subdivision 6 within the previous ten years;
289.12 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
289.13 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
289.14 	services to children with emotional disturbances; hours worked as a mental health behavioral 
289.15 	aide I or II under section 256B.0943, subdivision 7, may count toward the 6,000 hours of 
289.16 	supervised work experience.
289.17 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
289.18 	after four years of supervised work experience as a case manager associate. Individuals 
289.19 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
289.20 	experience as a case manager associate.
289.21 	(k) Case manager associates must meet the following supervision, mentoring, and 
289.22 	continuing education requirements;
289.23 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
289.24 	(2) receive at least 40 hours of continuing education in severe emotional disturbance 
289.25 	and mental health service annually; and
289.26 	(3) receive at least five hours of mentoring per week from a case management mentor. 
289.27 	A "case management mentor" means a qualified, practicing case manager or case management 
289.28 	supervisor who teaches or advises and provides intensive training and clinical supervision 
289.29 	to one or more case manager associates. Mentoring may occur while providing direct services 
289.30 	to consumers in the office or in the field and may be provided to individuals or groups of 
290.1 	case manager associates. At least two mentoring hours per week must be individual and 
290.2 	face-to-face.
290.3 	(l) A case management supervisor must meet the criteria for a mental health professional 
290.4 	as specified in subdivision 27.
290.5 	(m) An immigrant who does not have the qualifications specified in this subdivision 
290.6 	may provide case management services to child immigrants with severe emotional 
290.7 	disturbance of the same ethnic group as the immigrant if the person:
290.8 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
290.9 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
290.10 	or university;
290.11 	(2) completes 40 hours of training as specified in this subdivision; and
290.12 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
290.13 	a bachelor's degree and 2,000 hours of supervised experience are met.

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

290.15 	Sec. 6. Minnesota Statutes 2024, section 245.4871, is amended by adding a subdivision 
290.16 	to read:
290.17 		Subd. 7a.Clinical supervision. "Clinical supervision" means the oversight responsibility 
290.18 	for individual treatment plans and individual mental health service delivery, including 
290.19 	oversight provided by the case manager. Clinical supervision must be provided by a mental 
290.20 	health professional. The supervising mental health professional must cosign an individual 
290.21 	treatment plan, and their name must be documented in the client's record.

290.22 	Sec. 7. Minnesota Statutes 2024, section 245.4881, subdivision 3, is amended to read:
290.23 		Subd. 3.Duties of case manager. (a) Upon a determination of eligibility for case 
290.24 	management services, the case manager shall develop an individual family community 
290.25 	support plan for a child as specified in subdivision 4, review the child's progress, and monitor 
290.26 	the provision of services, and if the child and parent or legal guardian consent, complete a 
290.27 	written functional assessment as defined by section 245.4871, subdivision 18a. If services 
290.28 	are to be provided in a host county that is not the county of financial responsibility, the case 
290.29 	manager shall consult with the host county and obtain a letter demonstrating the concurrence 
290.30 	of the host county regarding the provision of services.
291.1 	(b) The case manager shall note in the child's record the services needed by the child 
291.2 	and the child's family, the services requested by the family, services that are not available, 
291.3 	and the unmet needs of the child and child's family. The case manager shall note this 
291.4 	provision in the child's record.

291.5 	Sec. 8. Minnesota Statutes 2024, section 245.4901, subdivision 3, is amended to read:
291.6 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
291.7 	and related expenses may include but are not limited to:
291.8 	(1) identifying and diagnosing mental health conditions and substance use disorders of 
291.9 	students;
291.10 	(2) delivering mental health and substance use disorder treatment and services to students 
291.11 	and their families, including via telehealth consistent with section 256B.0625, subdivision 
291.12 	3b;
291.13 	(3) supporting families in meeting their child's needs, including accessing needed mental 
291.14 	health services to support the parent in caregiving and navigating health care, social service, 
291.15 	and juvenile justice systems;
291.16 	(4) providing transportation for students receiving school-linked behavioral health 
291.17 	services when school is not in session;
291.18 	(5) building the capacity of schools to meet the needs of students with mental health and 
291.19 	substance use disorder concerns, including school staff development activities for licensed 
291.20 	and nonlicensed staff; and
291.21 	(6) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
291.22 	site fees in order to deliver school-linked behavioral health services via telehealth.
291.23 	(b) Grantees shall obtain all available third-party reimbursement sources as a condition 
291.24 	of receiving a grant. For purposes of this grant program, a third-party reimbursement source 
291.25 	excludes a public school as defined in section 120A.20, subdivision 1. Grantees shall serve 
291.26 	students regardless of health coverage status or ability to pay.

291.27 	Sec. 9. [245.4904] INTERMEDIATE SCHOOL DISTRICT BEHAVIORAL HEALTH 
291.28 	GRANT PROGRAM.
291.29 		Subdivision 1.Establishment. The commissioner of human services must establish a 
291.30 	grant program to improve behavioral health outcomes for youth attending a qualifying 
291.31 	school unit and to build the capacity of schools to support student and teacher needs in the 
292.1 	classroom. For purposes of this section, "qualifying school unit" means an intermediate 
292.2 	school district organized under section 136D.01.
292.3 		Subd. 2.Eligible applicants. An eligible applicant is an intermediate school district 
292.4 	organized under section 136D.01, and a partner entity or provider that has demonstrated 
292.5 	capacity to serve the youth identified in subdivision 1 that is:
292.6 	(1) a mental health clinic certified under section 245I.20;
292.7 	(2) a community mental health center under section 256B.0625, subdivision 5;
292.8 	(3) an Indian health service facility or a facility owned and operated by a Tribe or Tribal 
292.9 	organization operating under United States Code, title 25, section 5321;
292.10 	(4) a provider of children's therapeutic services and supports as defined in section 
292.11 	256B.0943;
292.12 	(5) enrolled in medical assistance as a mental health or substance use disorder provider 
292.13 	agency and employs at least two full-time equivalent mental health professionals qualified 
292.14 	according to section 245I.04, subdivision 2, or two alcohol and drug counselors licensed or 
292.15 	exempt from licensure under chapter 148F who are qualified to provide clinical services to 
292.16 	children and families;
292.17 	(6) licensed under chapter 245G and in compliance with the applicable requirements in 
292.18 	chapters 245A, 245C, and 260E; section 626.557; and Minnesota Rules, chapter 9544; or
292.19 	(7) a licensed professional in private practice as defined in section 245G.01, subdivision 
292.20 	17, who meets the requirements of section 254B.05, subdivision 1, paragraph (b).
292.21 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
292.22 	and related expenses include but are not limited to:
292.23 	(1) identifying mental health conditions and substance use disorders of students;
292.24 	(2) delivering mental health and substance use disorder treatment and supportive services 
292.25 	to students and their families within the classroom, including via telehealth consistent with 
292.26 	section 256B.0625, subdivision 3b;
292.27 	(3) delivering therapeutic interventions and customizing an array of supplementary 
292.28 	learning experiences for students;
292.29 	(4) supporting families in meeting their child's needs, including navigating health care, 
292.30 	social service, and juvenile justice systems;
293.1 	(5) providing transportation for students receiving behavioral health services when school 
293.2 	is not in session;
293.3 	(6) building the capacity of schools to meet the needs of students with mental health and 
293.4 	substance use disorder concerns, including school staff development activities for licensed 
293.5 	and nonlicensed staff; and
293.6 	(7) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
293.7 	site fees in order to deliver school-linked behavioral health services via telehealth.
293.8 	(b) Grantees must obtain all available third-party reimbursement sources as a condition 
293.9 	of receiving grant funds. For purposes of this grant program, a third-party reimbursement 
293.10 	source does not include a public school as defined in section 120A.20, subdivision 1. Grantees 
293.11 	shall serve students regardless of health coverage status or ability to pay.
293.12 		Subd. 4.Calculating the share of the appropriation. (a) Grants must be awarded to 
293.13 	qualifying school units proportionately.
293.14 	(b) The commissioner must calculate the share of the appropriation to be used in each 
293.15 	qualifying school unit by multiplying the total appropriation going to the grantees by the 
293.16 	qualifying school unit's average daily membership in a setting of federal instructional level 
293.17 	4 or higher and then dividing by the total average daily membership in a setting of federal 
293.18 	instructional level 4 or higher for the same year for all qualifying school units.
293.19 		Subd. 5.Data collection and outcome measurement. Grantees must provide data to 
293.20 	the commissioner for the purpose of evaluating the Intermediate School District Behavioral 
293.21 	Health Innovation grant program. The commissioner must consult with grantees to develop 
293.22 	outcome measures for program capacity and performance.

293.23 	Sec. 10. Minnesota Statutes 2024, section 245.4907, subdivision 3, is amended to read:
293.24 		Subd. 3.Allowable grant activities. Grantees must use grant funding to provide training 
293.25 	for mental health certified family peer specialists specialist candidates and continuing 
293.26 	education to certified family peer specialists as specified in section 256B.0616, subdivision 
293.27 	5.

293.28 	Sec. 11. Minnesota Statutes 2024, section 245.50, subdivision 3, is amended to read:
293.29 		Subd. 3.Exceptions. A contract may not be entered into under this section for services 
293.30 	to persons who:
293.31 	(1) are serving a sentence after conviction of a criminal offense;
294.1 	(2) are on probation or parole;
294.2 	(3) (2) are the subject of a presentence investigation; or
294.3 	(4) (3) have been committed involuntarily in Minnesota under chapter 253B for treatment 
294.4 	of mental illness or chemical dependency, except as provided under subdivision 5.

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

294.6 	Sec. 12. Minnesota Statutes 2024, section 245.50, is amended by adding a subdivision to 
294.7 	read:
294.8 		Subd. 6.Contract notice. A Minnesota mental health, chemical health, or detoxification 
294.9 	agency or facility entering into a contract with a bordering state under this section must, 
294.10 	within 30 days of the contract's effective date, provide the commissioner of human services 
294.11 	with a copy of the contract. If the contract is amended, the agency or facility must provide 
294.12 	the commissioner with a copy of each amendment within 30 days of the amendment's 
294.13 	effective date.

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

294.15 	Sec. 13. Minnesota Statutes 2024, section 245I.05, subdivision 3, is amended to read:
294.16 		Subd. 3.Initial training. (a) A staff person must receive training about:
294.17 	(1) vulnerable adult maltreatment under section 245A.65, subdivision 3; and
294.18 	(2) the maltreatment of minor reporting requirements and definitions in chapter 260E
294.19 	within 72 hours of first providing direct contact services to a client.
294.20 	(b) Before providing direct contact services to a client, a staff person must receive training 
294.21 	about:
294.22 	(1) client rights and protections under section 245I.12;
294.23 	(2) the Minnesota Health Records Act, including client confidentiality, family engagement 
294.24 	under section 144.294, and client privacy;
294.25 	(3) emergency procedures that the staff person must follow when responding to a fire, 
294.26 	inclement weather, a report of a missing person, and a behavioral or medical emergency;
294.27 	(4) specific activities and job functions for which the staff person is responsible, including 
294.28 	the license holder's program policies and procedures applicable to the staff person's position;
294.29 	(5) professional boundaries that the staff person must maintain; and
295.1 	(6) specific needs of each client to whom the staff person will be providing direct contact 
295.2 	services, including each client's developmental status, cognitive functioning, and physical 
295.3 	and mental abilities.
295.4 	(c) Before providing direct contact services to a client, a mental health rehabilitation 
295.5 	worker, mental health behavioral aide, or mental health practitioner required to receive the 
295.6 	training according to section 245I.04, subdivision 4, must receive 30 hours of training about:
295.7 	(1) mental illnesses;
295.8 	(2) client recovery and resiliency;
295.9 	(3) mental health de-escalation techniques;
295.10 	(4) co-occurring mental illness and substance use disorders; and
295.11 	(5) psychotropic medications and medication side effects, including tardive dyskinesia.
295.12 	(d) Within 90 days of first providing direct contact services to an adult client, mental 
295.13 	health practitioner, mental health certified peer specialist, or mental health rehabilitation 
295.14 	worker must receive training about:
295.15 	(1) trauma-informed care and secondary trauma;
295.16 	(2) person-centered individual treatment plans, including seeking partnerships with 
295.17 	family and other natural supports;
295.18 	(3) co-occurring substance use disorders; and
295.19 	(4) culturally responsive treatment practices.
295.20 	(e) Within 90 days of first providing direct contact services to a child client, mental 
295.21 	health practitioner, mental health certified family peer specialist, mental health certified 
295.22 	peer specialist, or mental health behavioral aide must receive training about the topics in 
295.23 	clauses (1) to (5). This training must address the developmental characteristics of each child 
295.24 	served by the license holder and address the needs of each child in the context of the child's 
295.25 	family, support system, and culture. Training topics must include:
295.26 	(1) trauma-informed care and secondary trauma, including adverse childhood experiences 
295.27 	(ACEs);
295.28 	(2) family-centered treatment plan development, including seeking partnership with a 
295.29 	child client's family and other natural supports;
295.30 	(3) mental illness and co-occurring substance use disorders in family systems;
295.31 	(4) culturally responsive treatment practices; and
296.1 	(5) child development, including cognitive functioning, and physical and mental abilities.
296.2 	(f) For a mental health behavioral aide, the training under paragraph (e) must include 
296.3 	parent team training using a curriculum approved by the commissioner.

296.4 	Sec. 14. Minnesota Statutes 2024, section 245I.05, subdivision 5, is amended to read:
296.5 		Subd. 5.Additional training for medication administration. (a) Prior to administering 
296.6 	medications to a client under delegated authority or observing a client self-administer 
296.7 	medications, a staff person who is not a licensed prescriber, registered nurse, or licensed 
296.8 	practical nurse qualified under section 148.171, subdivision 8, must receive training about 
296.9 	psychotropic medications, side effects including tardive dyskinesia, and medication 
296.10 	management.
296.11 	(b) Prior to administering medications to a client under delegated authority, a staff person 
296.12 	must successfully complete a:
296.13 	(1) medication administration training program for unlicensed personnel through an 
296.14 	accredited Minnesota postsecondary educational institution with completion of the course 
296.15 	documented in writing and placed in the staff person's personnel file; or
296.16 	(2) formalized training program taught by a registered nurse or licensed prescriber that 
296.17 	is offered by the license holder. A staff person's successful completion of the formalized 
296.18 	training program must include direct observation of the staff person to determine the staff 
296.19 	person's areas of competency.

296.20 	Sec. 15. Minnesota Statutes 2024, section 245I.06, subdivision 3, is amended to read:
296.21 		Subd. 3.Treatment supervision and direct observation of mental health 
296.22 	rehabilitation workers and mental health behavioral aides. (a) A mental health behavioral 
296.23 	aide or a mental health rehabilitation worker must receive direct observation from a mental 
296.24 	health professional, clinical trainee, certified rehabilitation specialist, or mental health 
296.25 	practitioner while the mental health behavioral aide or mental health rehabilitation worker 
296.26 	provides treatment services to clients, no less than twice per month for the first six months 
296.27 	of employment and once per month thereafter. The staff person performing the direct 
296.28 	observation must approve of the progress note for the observed treatment service.
296.29 	(b) For a mental health rehabilitation worker qualified under section 245I.04, subdivision 
296.30 	14, paragraph (a), clause (2), item (i), treatment supervision in the first 2,000 hours of work 
296.31 	must at a minimum consist of:
296.32 	(1) monthly individual supervision; and
297.1 	(2) direct observation twice per month.

297.2 	Sec. 16. Minnesota Statutes 2024, section 245I.11, subdivision 5, is amended to read:
297.3 		Subd. 5.Medication administration in residential programs. If a license holder is 
297.4 	licensed as a residential program, the license holder must:
297.5 	(1) assess and document each client's ability to self-administer medication. In the 
297.6 	assessment, the license holder must evaluate the client's ability to: (i) comply with prescribed 
297.7 	medication regimens; and (ii) store the client's medications safely and in a manner that 
297.8 	protects other individuals in the facility. Through the assessment process, the license holder 
297.9 	must assist the client in developing the skills necessary to safely self-administer medication;
297.10 	(2) monitor the effectiveness of medications, side effects of medications, and adverse 
297.11 	reactions to medications, including symptoms and signs of tardive dyskinesia, for each 
297.12 	client. The license holder must address and document any concerns about a client's 
297.13 	medications;
297.14 	(3) ensure that no staff person or client gives a legend drug supply for one client to 
297.15 	another client;
297.16 	(4) have policies and procedures for: (i) keeping a record of each client's medication 
297.17 	orders; (ii) keeping a record of any incident of deferring a client's medications; (iii) 
297.18 	documenting any incident when a client's medication is omitted; and (iv) documenting when 
297.19 	a client refuses to take medications as prescribed; and
297.20 	(5) document and track medication errors, document whether the license holder notified 
297.21 	anyone about the medication error, determine if the license holder must take any follow-up 
297.22 	actions, and identify the staff persons who are responsible for taking follow-up actions.

297.23 	Sec. 17. Minnesota Statutes 2024, section 245I.12, subdivision 5, is amended to read:
297.24 		Subd. 5.Client grievances. (a) The license holder must have a grievance procedure 
297.25 	that:
297.26 	(1) describes to clients how the license holder will meet the requirements in this 
297.27 	subdivision; and
297.28 	(2) contains the current public contact information of the Department of Human Services, 
297.29 	Licensing Division; the Office of Ombudsman for Mental Health and Developmental 
297.30 	Disabilities; the Department of Health, Office of Health Facilities Complaints; and all 
297.31 	applicable health-related licensing boards.
298.1 	(b) On the day of each client's admission, the license holder must explain the grievance 
298.2 	procedure to the client.
298.3 	(c) The license holder must:
298.4 	(1) post the grievance procedure in a place visible to clients and provide a copy of the 
298.5 	grievance procedure upon request;
298.6 	(2) allow clients, former clients, and their authorized representatives to submit a grievance 
298.7 	to the license holder;
298.8 	(3) within three business days of receiving a client's grievance, acknowledge in writing 
298.9 	that the license holder received the client's grievance. If applicable, the license holder must 
298.10 	include a notice of the client's separate appeal rights for a managed care organization's 
298.11 	reduction, termination, or denial of a covered service;
298.12 	(4) within 15 business days of receiving a client's grievance, provide a written final 
298.13 	response to the client's grievance containing the license holder's official response to the 
298.14 	grievance; and
298.15 	(5) allow the client to bring a grievance to the person with the highest level of authority 
298.16 	in the program.
298.17 	(d) Clients may voice grievances and recommend changes in policies and services to 
298.18 	staff and others of their choice, free from restraint, interference, coercion, discrimination, 
298.19 	or reprisal, including threat of discharge.

298.20 	Sec. 18. Minnesota Statutes 2024, section 245I.23, subdivision 7, is amended to read:
298.21 		Subd. 7.Intensive residential treatment services assessment and treatment 
298.22 	planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and 
298.23 	document the client's immediate needs, including the client's:
298.24 	(1) health and safety, including the client's need for crisis assistance;
298.25 	(2) responsibilities for children, family and other natural supports, and employers; and
298.26 	(3) housing and legal issues.
298.27 	(b) Within 24 hours of the client's admission, the license holder must complete an initial 
298.28 	treatment plan for the client. The license holder must:
298.29 	(1) base the client's initial treatment plan on the client's referral information and an 
298.30 	assessment of the client's immediate needs;
298.31 	(2) consider crisis assistance strategies that have been effective for the client in the past;
299.1 	(3) identify the client's initial treatment goals, measurable treatment objectives, and 
299.2 	specific interventions that the license holder will use to help the client engage in treatment;
299.3 	(4) identify the participants involved in the client's treatment planning. The client must 
299.4 	be a participant; and
299.5 	(5) ensure that a treatment supervisor approves of the client's initial treatment plan if a 
299.6 	mental health practitioner or clinical trainee completes the client's treatment plan, 
299.7 	notwithstanding section 245I.08, subdivision 3.
299.8 	(c) According to section 245A.65, subdivision 2, paragraph (b), the license holder must 
299.9 	complete an individual abuse prevention plan as part of a client's initial treatment plan.
299.10 	(d) Within five ten days of the client's admission and again within 60 days after the 
299.11 	client's admission, the license holder must complete a level of care assessment of the client. 
299.12 	If the license holder determines that a client does not need a medically monitored level of 
299.13 	service, a treatment supervisor must document how the client's admission to and continued 
299.14 	services in intensive residential treatment services are medically necessary for the client.
299.15 	(e) Within ten days of a client's admission, the license holder must complete or review 
299.16 	and update the client's standard diagnostic assessment.
299.17 	(f) Within ten days of a client's admission, the license holder must complete the client's 
299.18 	individual treatment plan, notwithstanding section 245I.10, subdivision 8. Within 40 days 
299.19 	after the client's admission and again within 70 days after the client's admission, the license 
299.20 	holder must update the client's individual treatment plan. The license holder must focus the 
299.21 	client's treatment planning on preparing the client for a successful transition from intensive 
299.22 	residential treatment services to another setting. In addition to the required elements of an 
299.23 	individual treatment plan under section 245I.10, subdivision 8, the license holder must 
299.24 	identify the following information in the client's individual treatment plan: (1) the client's 
299.25 	referrals and resources for the client's health and safety; and (2) the staff persons who are 
299.26 	responsible for following up with the client's referrals and resources. If the client does not 
299.27 	receive a referral or resource that the client needs, the license holder must document the 
299.28 	reason that the license holder did not make the referral or did not connect the client to a 
299.29 	particular resource. The license holder is responsible for determining whether additional 
299.30 	follow-up is required on behalf of the client.
299.31 	(g) Within 30 days of the client's admission, the license holder must complete a functional 
299.32 	assessment of the client. Within 60 days after the client's admission, the license holder must 
299.33 	update the client's functional assessment to include any changes in the client's functioning 
299.34 	and symptoms.
300.1 	(h) For a client with a current substance use disorder diagnosis and for a client whose 
300.2 	substance use disorder screening in the client's standard diagnostic assessment indicates the 
300.3 	possibility that the client has a substance use disorder, the license holder must complete a 
300.4 	written assessment of the client's substance use within 30 days of the client's admission. In 
300.5 	the substance use assessment, the license holder must: (1) evaluate the client's history of 
300.6 	substance use, relapses, and hospitalizations related to substance use; (2) assess the effects 
300.7 	of the client's substance use on the client's relationships including with family member and 
300.8 	others; (3) identify financial problems, health issues, housing instability, and unemployment; 
300.9 	(4) assess the client's legal problems, past and pending incarceration, violence, and 
300.10 	victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking 
300.11 	prescribed medications, and noncompliance with psychosocial treatment.
300.12 	(i) On a weekly basis, a mental health professional or certified rehabilitation specialist 
300.13 	must review each client's treatment plan and individual abuse prevention plan. The license 
300.14 	holder must document in the client's file each weekly review of the client's treatment plan 
300.15 	and individual abuse prevention plan.

300.16 	Sec. 19. Minnesota Statutes 2024, section 256B.0616, subdivision 4, is amended to read:
300.17 		Subd. 4.Family peer support specialist program providers. The commissioner shall 
300.18 	develop a process to certify family peer support specialist programs, in accordance with the 
300.19 	federal guidelines, in order for the program to bill for reimbursable services. Family peer 
300.20 	support programs must operate within an existing mental health community provider or 
300.21 	center.

300.22 	Sec. 20. Minnesota Statutes 2024, section 256B.0616, subdivision 5, is amended to read:
300.23 		Subd. 5.Certified family peer specialist training and certification. (a) The 
300.24 	commissioner shall develop a or approve the use of an existing training and certification 
300.25 	process for certified certifying family peer specialists. The Family peer specialist candidates 
300.26 	must have raised or be currently raising a child with a mental illness, have had experience 
300.27 	navigating the children's mental health system, and must demonstrate leadership and advocacy 
300.28 	skills and a strong dedication to family-driven and family-focused services. The training 
300.29 	curriculum must teach participating family peer specialists specialist candidates specific 
300.30 	skills relevant to providing peer support to other parents and youth.
300.31 	(b) In addition to initial training and certification, the commissioner shall develop ongoing 
300.32 	continuing educational workshops on pertinent issues related to family peer support 
300.33 	counseling.
301.1 	(c) Initial training leading to certification as a family peer specialist and continuing 
301.2 	education for certified family peer specialists must be delivered by the commissioner or a 
301.3 	third-party organization approved by the commissioner. An approved third-party organization 
301.4 	may also provide continuing education of certified family peer specialists.

301.5 	Sec. 21. Minnesota Statutes 2024, section 256B.0622, subdivision 3a, is amended to read:
301.6 		Subd. 3a.Provider certification and contract requirements for assertive community 
301.7 	treatment. (a) The assertive community treatment provider must have each ACT team be 
301.8 	certified by the state following the certification process and procedures developed by the 
301.9 	commissioner. The certification process determines whether the ACT team meets the 
301.10 	standards for assertive community treatment under this section, the standards in chapter 
301.11 	245I as required in section 245I.011, subdivision 5, and minimum program fidelity standards 
301.12 	as measured by a nationally recognized fidelity tool approved by the commissioner. 
301.13 	Recertification must occur at least every three years.
301.14 	(b) An ACT team certified under this subdivision must meet the following standards:
301.15 	(1) have capacity to recruit, hire, manage, and train required ACT team members;
301.16 	(2) have adequate administrative ability to ensure availability of services;
301.17 	(3) ensure flexibility in service delivery to respond to the changing and intermittent care 
301.18 	needs of a client as identified by the client and the individual treatment plan;
301.19 	(4) keep all necessary records required by law;
301.20 	(5) be an enrolled Medicaid provider; and
301.21 	(6) establish and maintain a quality assurance plan to determine specific service outcomes 
301.22 	and the client's satisfaction with services.; and
301.23 	(7) ensure that overall treatment supervision to the ACT team is provided by a qualified 
301.24 	member of the ACT team and is available during and after regular business hours and on 
301.25 	weekends and holidays.
301.26 	(c) The commissioner may intervene at any time and decertify an ACT team with cause. 
301.27 	The commissioner shall establish a process for decertification of an ACT team and shall 
301.28 	require corrective action, medical assistance repayment, or decertification of an ACT team 
301.29 	that no longer meets the requirements in this section or that fails to meet the clinical quality 
301.30 	standards or administrative standards provided by the commissioner in the application and 
301.31 	certification process. The decertification is subject to appeal to the state.

302.1 	Sec. 22. Minnesota Statutes 2024, section 256B.0622, subdivision 7a, is amended to read:
302.2 		Subd. 7a.Assertive community treatment team staff requirements and roles. (a) 
302.3 	The required treatment staff qualifications and roles for an ACT team are:
302.4 	(1) the team leader:
302.5 	(i) shall must be a mental health professional. Individuals who are not licensed but who 
302.6 	are eligible for licensure and are otherwise qualified may also fulfill this role, clinical trainee, 
302.7 	or mental health practitioner;
302.8 	(ii) must be an active member of the ACT team and provide some direct services to 
302.9 	clients;
302.10 	(iii) must be a single full-time staff member, dedicated to the ACT team, who is 
302.11 	responsible for overseeing the administrative operations of the team and supervising team 
302.12 	members to ensure delivery of best and ethical practices; and
302.13 	(iv) must be available to ensure that overall treatment supervision to the ACT team is 
302.14 	available after regular business hours and on weekends and holidays and is provided by a 
302.15 	qualified member of the ACT team;
302.16 	(2) the psychiatric care provider:
302.17 	(i) must be a mental health professional permitted to prescribe psychiatric medications 
302.18 	as part of the mental health professional's scope of practice. The psychiatric care provider 
302.19 	must have demonstrated clinical experience working with individuals with serious and 
302.20 	persistent mental illness;
302.21 	(ii) shall collaborate with the team leader in sharing overall clinical responsibility for 
302.22 	screening and admitting clients; monitoring clients' treatment and team member service 
302.23 	delivery; educating staff on psychiatric and nonpsychiatric medications, their side effects, 
302.24 	and health-related conditions; actively collaborating with nurses; and helping provide 
302.25 	treatment supervision to the team;
302.26 	(iii) shall fulfill the following functions for assertive community treatment clients: 
302.27 	provide assessment and treatment of clients' symptoms and response to medications, including 
302.28 	side effects; provide brief therapy to clients; provide diagnostic and medication education 
302.29 	to clients, with medication decisions based on shared decision making; monitor clients' 
302.30 	nonpsychiatric medical conditions and nonpsychiatric medications; and conduct home and 
302.31 	community visits;
303.1 	(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized 
303.2 	for mental health treatment and shall communicate directly with the client's inpatient 
303.3 	psychiatric care providers to ensure continuity of care;
303.4 	(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 
303.5 	50 clients. Part-time psychiatric care providers shall have designated hours to work on the 
303.6 	team, with sufficient blocks of time on consistent days to carry out the provider's clinical, 
303.7 	supervisory, and administrative responsibilities. No more than two psychiatric care providers 
303.8 	may share this role; and
303.9 	(vi) shall provide psychiatric backup to the program after regular business hours and on 
303.10 	weekends and holidays. The psychiatric care provider may delegate this duty to another 
303.11 	qualified psychiatric provider;
303.12 	(3) the nursing staff:
303.13 	(i) shall consist of one to three registered nurses or advanced practice registered nurses, 
303.14 	of whom at least one has a minimum of one-year experience working with adults with 
303.15 	serious mental illness and a working knowledge of psychiatric medications. No more than 
303.16 	two individuals can share a full-time equivalent position;
303.17 	(ii) are responsible for managing medication, administering and documenting medication 
303.18 	treatment, and managing a secure medication room; and
303.19 	(iii) shall develop strategies, in collaboration with clients, to maximize taking medications 
303.20 	as prescribed; screen and monitor clients' mental and physical health conditions and 
303.21 	medication side effects; engage in health promotion, prevention, and education activities; 
303.22 	communicate and coordinate services with other medical providers; facilitate the development 
303.23 	of the individual treatment plan for clients assigned; and educate the ACT team in monitoring 
303.24 	psychiatric and physical health symptoms and medication side effects;
303.25 	(4) the co-occurring disorder specialist:
303.26 	(i) shall be a full-time equivalent co-occurring disorder specialist who has received 
303.27 	specific training on co-occurring disorders that is consistent with national evidence-based 
303.28 	practices. The training must include practical knowledge of common substances and how 
303.29 	they affect mental illnesses, the ability to assess substance use disorders and the client's 
303.30 	stage of treatment, motivational interviewing, and skills necessary to provide counseling to 
303.31 	clients at all different stages of change and treatment. The co-occurring disorder specialist 
303.32 	may also be an individual who is a licensed alcohol and drug counselor as described in 
303.33 	section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, 
304.1 	and other requirements in section 245G.11, subdivision 5. No more than two co-occurring 
304.2 	disorder specialists may occupy this role; and
304.3 	(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients. 
304.4 	The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT 
304.5 	team members on co-occurring disorders;
304.6 	(5) the vocational specialist:
304.7 	(i) shall be a full-time vocational specialist who has at least one-year experience providing 
304.8 	employment services or advanced education that involved field training in vocational services 
304.9 	to individuals with mental illness. An individual who does not meet these qualifications 
304.10 	may also serve as the vocational specialist upon completing a training plan approved by the 
304.11 	commissioner;
304.12 	(ii) shall provide or facilitate the provision of vocational services to clients. The vocational 
304.13 	specialist serves as a consultant and educator to fellow ACT team members on these services; 
304.14 	and
304.15 	(iii) must not refer individuals to receive any type of vocational services or linkage by 
304.16 	providers outside of the ACT team;
304.17 	(6) the mental health certified peer specialist:
304.18 	(i) shall be a full-time equivalent. No more than two individuals can share this position. 
304.19 	The mental health certified peer specialist is a fully integrated team member who provides 
304.20 	highly individualized services in the community and promotes the self-determination and 
304.21 	shared decision-making abilities of clients. This requirement may be waived due to workforce 
304.22 	shortages upon approval of the commissioner;
304.23 	(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, 
304.24 	self-advocacy, and self-direction, promote wellness management strategies, and assist clients 
304.25 	in developing advance directives; and
304.26 	(iii) must model recovery values, attitudes, beliefs, and personal action to encourage 
304.27 	wellness and resilience, provide consultation to team members, promote a culture where 
304.28 	the clients' points of view and preferences are recognized, understood, respected, and 
304.29 	integrated into treatment, and serve in a manner equivalent to other team members;
304.30 	(7) the program administrative assistant shall be a full-time office-based program 
304.31 	administrative assistant position assigned to solely work with the ACT team, providing a 
304.32 	range of supports to the team, clients, and families; and
305.1 	(8) additional staff:
305.2 	(i) shall be based on team size. Additional treatment team staff may include mental 
305.3 	health professionals; clinical trainees; certified rehabilitation specialists; mental health 
305.4 	practitioners; or mental health rehabilitation workers. These individuals shall have the 
305.5 	knowledge, skills, and abilities required by the population served to carry out rehabilitation 
305.6 	and support functions; and
305.7 	(ii) shall be selected based on specific program needs or the population served.
305.8 	(b) Each ACT team must clearly document schedules for all ACT team members.
305.9 	(c) Each ACT team member must serve as a primary team member for clients assigned 
305.10 	by the team leader and are responsible for facilitating the individual treatment plan process 
305.11 	for those clients. The primary team member for a client is the responsible team member 
305.12 	knowledgeable about the client's life and circumstances and writes the individual treatment 
305.13 	plan. The primary team member provides individual supportive therapy or counseling, and 
305.14 	provides primary support and education to the client's family and support system.
305.15 	(d) Members of the ACT team must have strong clinical skills, professional qualifications, 
305.16 	experience, and competency to provide a full breadth of rehabilitation services. Each staff 
305.17 	member shall be proficient in their respective discipline and be able to work collaboratively 
305.18 	as a member of a multidisciplinary team to deliver the majority of the treatment, 
305.19 	rehabilitation, and support services clients require to fully benefit from receiving assertive 
305.20 	community treatment.
305.21 	(e) Each ACT team member must fulfill training requirements established by the 
305.22 	commissioner.

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

305.25 	Sec. 23. Minnesota Statutes 2024, section 256L.03, subdivision 5, is amended to read:
305.26 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
305.27 	children under the age of 21 and to American Indians as defined in Code of Federal 
305.28 	Regulations, title 42, section 600.5.
305.29 	(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered 
305.30 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
305.31 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
306.1 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
306.2 	this paragraph shall not be implemented prior to January 1, 2016.
306.3 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
306.4 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
306.5 	title 42, sections 600.510 and 600.520.
306.6 	(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic 
306.7 	disease must comply with the requirements of section 62Q.481.
306.8 	(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic 
306.9 	services or testing that a health care provider determines an enrollee requires after a 
306.10 	mammogram, as specified under section 62A.30, subdivision 5.
306.11 	(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to 
306.12 	tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
306.13 	(g) Co-payments, coinsurance, and deductibles do not apply to pre-exposure prophylaxis 
306.14 	(PrEP) and postexposure prophylaxis (PEP) medications when used for the prevention or 
306.15 	treatment of the human immunodeficiency virus (HIV).
306.16 	(h) Co-payments, coinsurance, and deductibles do not apply to mobile crisis intervention, 
306.17 	as defined in section 256B.0624, subdivision 2, paragraph (d).

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

306.21 	ARTICLE 10
306.22 	CHILDREN'S MENTAL HEALTH TERMINOLOGY

306.23 	Section 1. Minnesota Statutes 2024, section 62Q.527, subdivision 1, is amended to read:
306.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
306.25 	the meanings given them.
306.26 	(b) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
306.27 	(c) (b) "Mental illness" has the meaning given in section sections245.462, subdivision 
306.28 	20, paragraph (a), and 245.4871, subdivision 15.
306.29 	(d) (c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes 
306.30 	the coverages described in section 62A.011, subdivision 3, clauses (7) and (10).

307.1 	Sec. 2. Minnesota Statutes 2024, section 62Q.527, subdivision 2, is amended to read:
307.2 		Subd. 2.Required coverage for antipsychotic drugs. (a) A health plan that provides 
307.3 	prescription drug coverage must provide coverage for an antipsychotic drug prescribed to 
307.4 	treat emotional disturbance or mental illness regardless of whether the drug is in the health 
307.5 	plan's drug formulary, if the health care provider prescribing the drug:
307.6 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
307.7 	151.21, that the prescription must be dispensed as communicated; and
307.8 	(2) certifies in writing to the health plan company that the health care provider has 
307.9 	considered all equivalent drugs in the health plan's drug formulary and has determined that 
307.10 	the drug prescribed will best treat the patient's condition.
307.11 	(b) The health plan is not required to provide coverage for a drug if the drug was removed 
307.12 	from the health plan's drug formulary for safety reasons.
307.13 	(c) For drugs covered under this section, no health plan company that has received a 
307.14 	certification from the health care provider as described in paragraph (a) may:
307.15 	(1) impose a special deductible, co-payment, coinsurance, or other special payment 
307.16 	requirement that the health plan does not apply to drugs that are in the health plan's drug 
307.17 	formulary; or
307.18 	(2) require written certification from the prescribing provider each time a prescription 
307.19 	is refilled or renewed that the drug prescribed will best treat the patient's condition.

307.20 	Sec. 3. Minnesota Statutes 2024, section 62Q.527, subdivision 3, is amended to read:
307.21 		Subd. 3.Continuing care. (a) Enrollees receiving a prescribed drug to treat a diagnosed 
307.22 	mental illness or emotional disturbance may continue to receive the prescribed drug for up 
307.23 	to one year without the imposition of a special deductible, co-payment, coinsurance, or 
307.24 	other special payment requirements, when a health plan's drug formulary changes or an 
307.25 	enrollee changes health plans and the medication has been shown to effectively treat the 
307.26 	patient's condition. In order to be eligible for this continuing care benefit:
307.27 	(1) the patient must have been treated with the drug for 90 days prior to a change in a 
307.28 	health plan's drug formulary or a change in the enrollee's health plan;
307.29 	(2) the health care provider prescribing the drug indicates to the dispensing pharmacist, 
307.30 	orally or in writing according to section 151.21, that the prescription must be dispensed as 
307.31 	communicated; and
308.1 	(3) the health care provider prescribing the drug certifies in writing to the health plan 
308.2 	company that the drug prescribed will best treat the patient's condition.
308.3 	(b) The continuing care benefit shall be extended annually when the health care provider 
308.4 	prescribing the drug:
308.5 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
308.6 	151.21, that the prescription must be dispensed as communicated; and
308.7 	(2) certifies in writing to the health plan company that the drug prescribed will best treat 
308.8 	the patient's condition.
308.9 	(c) The health plan company is not required to provide coverage for a drug if the drug 
308.10 	was removed from the health plan's drug formulary for safety reasons.

308.11 	Sec. 4. Minnesota Statutes 2024, section 121A.61, subdivision 3, is amended to read:
308.12 		Subd. 3.Policy components. The policy must include at least the following components:
308.13 	(a) rules governing student conduct and procedures for informing students of the rules;
308.14 	(b) the grounds for removal of a student from a class;
308.15 	(c) the authority of the classroom teacher to remove students from the classroom pursuant 
308.16 	to procedures and rules established in the district's policy;
308.17 	(d) the procedures for removal of a student from a class by a teacher, school administrator, 
308.18 	or other school district employee;
308.19 	(e) the period of time for which a student may be removed from a class, which may not 
308.20 	exceed five class periods for a violation of a rule of conduct;
308.21 	(f) provisions relating to the responsibility for and custody of a student removed from 
308.22 	a class;
308.23 	(g) the procedures for return of a student to the specified class from which the student 
308.24 	has been removed;
308.25 	(h) the procedures for notifying a student and the student's parents or guardian of 
308.26 	violations of the rules of conduct and of resulting disciplinary actions;
308.27 	(i) any procedures determined appropriate for encouraging early involvement of parents 
308.28 	or guardians in attempts to improve a student's behavior;
308.29 	(j) any procedures determined appropriate for encouraging early detection of behavioral 
308.30 	problems;
309.1 	(k) any procedures determined appropriate for referring a student in need of special 
309.2 	education services to those services;
309.3 	(l) any procedures determined appropriate for ensuring victims of bullying who respond 
309.4 	with behavior not allowed under the school's behavior policies have access to a remedial 
309.5 	response, consistent with section 121A.031;
309.6 	(m) the procedures for consideration of whether there is a need for a further assessment 
309.7 	or of whether there is a need for a review of the adequacy of a current individualized 
309.8 	education program of a student with a disability who is removed from class;
309.9 	(n) procedures for detecting and addressing chemical abuse problems of a student while 
309.10 	on the school premises;
309.11 	(o) the minimum consequences for violations of the code of conduct;
309.12 	(p) procedures for immediate and appropriate interventions tied to violations of the code;
309.13 	(q) a provision that states that a teacher, school employee, school bus driver, or other 
309.14 	agent of a district may use reasonable force in compliance with section 121A.582 and other 
309.15 	laws;
309.16 	(r) an agreement regarding procedures to coordinate crisis services to the extent funds 
309.17 	are available with the county board responsible for implementing sections 245.487 to 
309.18 	245.4889 for students with a serious emotional disturbance mental illness or other students 
309.19 	who have an individualized education program whose behavior may be addressed by crisis 
309.20 	intervention;
309.21 	(s) a provision that states a student must be removed from class immediately if the student 
309.22 	engages in assault or violent behavior. For purposes of this paragraph, "assault" has the 
309.23 	meaning given it in section 609.02, subdivision 10. The removal shall be for a period of 
309.24 	time deemed appropriate by the principal, in consultation with the teacher;
309.25 	(t) a prohibition on the use of exclusionary practices for early learners as defined in 
309.26 	section 121A.425; and
309.27 	(u) a prohibition on the use of exclusionary practices to address attendance and truancy 
309.28 	issues.

309.29 	Sec. 5. Minnesota Statutes 2024, section 128C.02, subdivision 5, is amended to read:
309.30 		Subd. 5.Rules for open enrollees. (a) The league shall adopt league rules and regulations 
309.31 	governing the athletic participation of pupils attending school in a nonresident district under 
309.32 	section 124D.03.
310.1 	(b) Notwithstanding other law or league rule or regulation to the contrary, when a student 
310.2 	enrolls in or is readmitted to a recovery-focused high school after successfully completing 
310.3 	a licensed program for treatment of alcohol or substance abuse, or mental illness, or emotional 
310.4 	disturbance, the student is immediately eligible to participate on the same basis as other 
310.5 	district students in the league-sponsored activities of the student's resident school district. 
310.6 	Nothing in this paragraph prohibits the league or school district from enforcing a league or 
310.7 	district penalty resulting from the student violating a league or district rule.
310.8 	(c) The league shall adopt league rules making a student with an individualized education 
310.9 	program who transfers from one public school to another public school as a reasonable 
310.10 	accommodation to reduce barriers to educational access immediately eligible to participate 
310.11 	in league-sponsored varsity competition on the same basis as other students in the school 
310.12 	to which the student transfers. The league also must establish guidelines, consistent with 
310.13 	this paragraph, for reviewing the 504 plan of a student who transfers between public schools 
310.14 	to determine whether the student is immediately eligible to participate in league-sponsored 
310.15 	varsity competition on the same basis as other students in the school to which the student 
310.16 	transfers.

310.17 	Sec. 6. Minnesota Statutes 2024, section 142G.02, subdivision 56, is amended to read:
310.18 		Subd. 56.Learning disabled. "Learning disabled," for purposes of an extension to the 
310.19 	60-month time limit under section 142G.42, subdivision 4, clause (3), means the person has 
310.20 	a disorder in one or more of the psychological processes involved in perceiving, 
310.21 	understanding, or using concepts through verbal language or nonverbal means. Learning 
310.22 	disabled does not include learning problems that are primarily the result of visual, hearing, 
310.23 	or motor disabilities; developmental disability; emotional disturbance; or mental illness or 
310.24 	due to environmental, cultural, or economic disadvantage.

310.25 	Sec. 7. Minnesota Statutes 2024, section 142G.27, subdivision 4, is amended to read:
310.26 		Subd. 4.Good cause exemptions for not attending orientation. (a) The county agency 
310.27 	shall not impose the sanction under section 142G.70 if it determines that the participant has 
310.28 	good cause for failing to attend orientation. Good cause exists when:
310.29 	(1) appropriate child care is not available;
310.30 	(2) the participant is ill or injured;
310.31 	(3) a family member is ill and needs care by the participant that prevents the participant 
310.32 	from attending orientation. For a caregiver with a child or adult in the household who meets 
311.1 	the disability or medical criteria for home care services under section 256B.0659, or a home 
311.2 	and community-based waiver services program under chapter 256B, or meets the criteria 
311.3 	for severe emotional disturbance serious mental illness under section 245.4871, subdivision 
311.4 	6, or for serious and persistent mental illness under section 245.462, subdivision 20, 
311.5 	paragraph (c), good cause also exists when an interruption in the provision of those services 
311.6 	occurs which prevents the participant from attending orientation;
311.7 	(4) the caregiver is unable to secure necessary transportation;
311.8 	(5) the caregiver is in an emergency situation that prevents orientation attendance;
311.9 	(6) the orientation conflicts with the caregiver's work, training, or school schedule; or
311.10 	(7) the caregiver documents other verifiable impediments to orientation attendance 
311.11 	beyond the caregiver's control.
311.12 	(b) Counties must work with clients to provide child care and transportation necessary 
311.13 	to ensure a caregiver has every opportunity to attend orientation.

311.14 	Sec. 8. Minnesota Statutes 2024, section 142G.42, subdivision 3, is amended to read:
311.15 		Subd. 3.Ill or incapacitated. (a) An assistance unit subject to the time limit in section 
311.16 	142G.40, subdivision 1, is eligible to receive months of assistance under a hardship extension 
311.17 	if the participant who reached the time limit belongs to any of the following groups:
311.18 	(1) participants who are suffering from an illness, injury, or incapacity which has been 
311.19 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
311.20 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
311.21 	suitable employment. These participants must follow the treatment recommendations of the 
311.22 	qualified professional certifying the illness, injury, or incapacity;
311.23 	(2) participants whose presence in the home is required as a caregiver because of the 
311.24 	illness, injury, or incapacity of another member in the assistance unit, a relative in the 
311.25 	household, or a foster child in the household when the illness or incapacity and the need 
311.26 	for a person to provide assistance in the home has been certified by a qualified professional 
311.27 	and is expected to continue for more than 30 days; or
311.28 	(3) caregivers with a child or an adult in the household who meets the disability or 
311.29 	medical criteria for home care services under section 256B.0651, subdivision 1, paragraph 
311.30 	(c), or a home and community-based waiver services program under chapter 256B, or meets 
311.31 	the criteria for severe emotional disturbance serious mental illness under section 245.4871, 
311.32 	subdivision 6, or for serious and persistent mental illness under section 245.462, subdivision 
312.1 	20, paragraph (c). Caregivers in this category are presumed to be prevented from obtaining 
312.2 	or maintaining suitable employment.
312.3 	(b) An assistance unit receiving assistance under a hardship extension under this 
312.4 	subdivision may continue to receive assistance as long as the participant meets the criteria 
312.5 	in paragraph (a), clause (1), (2), or (3).

312.6 	Sec. 9. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
312.7 		Subd. 4.Case management service provider. (a) "Case management service provider" 
312.8 	means a case manager or case manager associate employed by the county or other entity 
312.9 	authorized by the county board to provide case management services specified in section 
312.10 	245.4711.
312.11 	(b) A case manager must:
312.12 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
312.13 	(2) be knowledgeable about local community resources and how to use those resources 
312.14 	for the benefit of the client;
312.15 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
312.16 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
312.17 	limited to, social work, psychology, or nursing from an accredited college or university. A 
312.18 	case manager who is not a mental health practitioner and who does not have a bachelor's 
312.19 	degree in one of the behavioral sciences or related fields must meet the requirements of 
312.20 	paragraph (c); and
312.21 	(4) meet the supervision and continuing education requirements described in paragraphs 
312.22 	(d), (e), and (f), as applicable.
312.23 	(c) Case managers without a bachelor's degree must meet one of the requirements in 
312.24 	clauses (1) to (3):
312.25 	(1) have three or four years of experience as a case manager associate as defined in this 
312.26 	section;
312.27 	(2) be a registered nurse without a bachelor's degree and have a combination of 
312.28 	specialized training in psychiatry and work experience consisting of community interaction 
312.29 	and involvement or community discharge planning in a mental health setting totaling three 
312.30 	years; or
313.1 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
313.2 	Service waiver provision and meet the continuing education and mentoring requirements 
313.3 	in this section.
313.4 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
313.5 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
313.6 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
313.7 	supervision regarding individual service delivery with a case management supervisor. The 
313.8 	remaining 26 hours of supervision may be provided by a case manager with two years of 
313.9 	experience. Group supervision may not constitute more than one-half of the required 
313.10 	supervision hours. Clinical supervision must be documented in the client record.
313.11 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
313.12 	services to adults with mental illness must:
313.13 	(1) receive clinical supervision regarding individual service delivery from a mental 
313.14 	health professional at least one hour per week until the requirement of 2,000 hours of 
313.15 	experience is met; and
313.16 	(2) complete 40 hours of training approved by the commissioner in case management 
313.17 	skills and the characteristics and needs of adults with serious and persistent mental illness.
313.18 	(f) A case manager who is not licensed, registered, or certified by a health-related 
313.19 	licensing board must receive 30 hours of continuing education and training in mental illness 
313.20 	and mental health services every two years.
313.21 	(g) A case manager associate (CMA) must:
313.22 	(1) work under the direction of a case manager or case management supervisor;
313.23 	(2) be at least 21 years of age;
313.24 	(3) have at least a high school diploma or its equivalent; and
313.25 	(4) meet one of the following criteria:
313.26 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
313.27 	(ii) be a certified peer specialist under section 256B.0615;
313.28 	(iii) be a registered nurse without a bachelor's degree;
313.29 	(iv) within the previous ten years, have three years of life experience with serious and 
313.30 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
313.31 	disturbance a serious mental illness as defined in section 245.4871, subdivision 6; or have 
314.1 	three years life experience as a primary caregiver to an adult with serious and persistent 
314.2 	mental illness within the previous ten years;
314.3 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
314.4 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
314.5 	persons with mental illness.
314.6 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
314.7 	after four years of supervised work experience as a case manager associate. Individuals 
314.8 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
314.9 	experience as a case manager associate.
314.10 	(h) A case management associate must meet the following supervision, mentoring, and 
314.11 	continuing education requirements:
314.12 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
314.13 	(2) receive at least 40 hours of continuing education in mental illness and mental health 
314.14 	services annually; and
314.15 	(3) receive at least five hours of mentoring per week from a case management mentor.
314.16 	A "case management mentor" means a qualified, practicing case manager or case management 
314.17 	supervisor who teaches or advises and provides intensive training and clinical supervision 
314.18 	to one or more case manager associates. Mentoring may occur while providing direct services 
314.19 	to consumers in the office or in the field and may be provided to individuals or groups of 
314.20 	case manager associates. At least two mentoring hours per week must be individual and 
314.21 	face-to-face.
314.22 	(i) A case management supervisor must meet the criteria for mental health professionals, 
314.23 	as specified in subdivision 18.
314.24 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
314.25 	provide case management services to adult immigrants with serious and persistent mental 
314.26 	illness who are members of the same ethnic group as the case manager if the person:
314.27 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
314.28 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
314.29 	limited to, social work, psychology, or nursing from an accredited college or university;
314.30 	(2) completes 40 hours of training as specified in this subdivision; and
314.31 	(3) receives clinical supervision at least once a week until the requirements of this 
314.32 	subdivision are met.

315.1 	Sec. 10. Minnesota Statutes 2024, section 245.4682, subdivision 3, is amended to read:
315.2 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 and 
315.3 	chapter 256L, the commissioner is authorized to solicit, approve, and implement up to three 
315.4 	projects to demonstrate the integration of physical and mental health services within prepaid 
315.5 	health plans and their coordination with social services. The commissioner shall require 
315.6 	that each project be based on locally defined partnerships that include at least one health 
315.7 	maintenance organization, community integrated service network, or accountable provider 
315.8 	network authorized and operating under chapter 62D, 62N, or 62T, or county-based 
315.9 	purchasing entity under section 256B.692 that is eligible to contract with the commissioner 
315.10 	as a prepaid health plan, and the county or counties within the service area. Counties shall 
315.11 	retain responsibility and authority for social services in these locally defined partnerships.
315.12 	(b) The commissioner, in consultation with consumers, families, and their representatives, 
315.13 	shall:
315.14 	(1) determine criteria for approving the projects and use those criteria to solicit proposals 
315.15 	for preferred integrated networks. The commissioner must develop criteria to evaluate the 
315.16 	partnership proposed by the county and prepaid health plan to coordinate access and delivery 
315.17 	of services. The proposal must at a minimum address how the partnership will coordinate 
315.18 	the provision of:
315.19 	(i) client outreach and identification of health and social service needs paired with 
315.20 	expedited access to appropriate resources;
315.21 	(ii) activities to maintain continuity of health care coverage;
315.22 	(iii) children's residential mental health treatment and treatment foster care;
315.23 	(iv) court-ordered assessments and treatments;
315.24 	(v) prepetition screening and commitments under chapter 253B;
315.25 	(vi) assessment and treatment of children identified through mental health screening of 
315.26 	child welfare and juvenile corrections cases;
315.27 	(vii) home and community-based waiver services;
315.28 	(viii) assistance with finding and maintaining employment;
315.29 	(ix) housing; and
315.30 	(x) transportation;
316.1 	(2) determine specifications for contracts with prepaid health plans to improve the plan's 
316.2 	ability to serve persons with mental health conditions, including specifications addressing:
316.3 	(i) early identification and intervention of physical and behavioral health problems;
316.4 	(ii) communication between the enrollee and the health plan;
316.5 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare special 
316.6 	needs plan offered by the health plan;
316.7 	(iv) risk screening procedures;
316.8 	(v) health care coordination;
316.9 	(vi) member services and access to applicable protections and appeal processes;
316.10 	(vii) specialty provider networks;
316.11 	(viii) transportation services;
316.12 	(ix) treatment planning; and
316.13 	(x) administrative simplification for providers;
316.14 	(3) begin implementation of the projects no earlier than January 1, 2009, with not more 
316.15 	than 40 percent of the statewide population included during calendar year 2009 and additional 
316.16 	counties included in subsequent years;
316.17 	(4) waive any administrative rule not consistent with the implementation of the projects;
316.18 	(5) allow potential bidders at least 90 days to respond to the request for proposals; and
316.19 	(6) conduct an independent evaluation to determine if mental health outcomes have 
316.20 	improved in that county or counties according to measurable standards designed in 
316.21 	consultation with the advisory body established under this subdivision and reviewed by the 
316.22 	State Advisory Council on Mental Health.
316.23 	(c) Notwithstanding any statute or administrative rule to the contrary, the commissioner 
316.24 	may enroll all persons eligible for medical assistance with serious mental illness or emotional 
316.25 	disturbance in the prepaid plan of their choice within the project service area unless:
316.26 	(1) the individual is eligible for home and community-based services for persons with 
316.27 	developmental disabilities and related conditions under section 256B.092; or
316.28 	(2) the individual has a basis for exclusion from the prepaid plan under section 256B.69, 
316.29 	subdivision 4, other than disability, or mental illness, or emotional disturbance.
317.1 	(d) The commissioner shall involve organizations representing persons with mental 
317.2 	illness and their families in the development and distribution of information used to educate 
317.3 	potential enrollees regarding their options for health care and mental health service delivery 
317.4 	under this subdivision.
317.5 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
317.6 	medical assistance, or declines to choose a plan, the commissioner may preferentially assign 
317.7 	that person to the prepaid plan participating in the preferred integrated network. The 
317.8 	commissioner shall implement the enrollment changes within a project's service area on the 
317.9 	timeline specified in that project's approved application.
317.10 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may disenroll 
317.11 	from the plan at any time.
317.12 	(g) The commissioner, in consultation with consumers, families, and their representatives, 
317.13 	shall evaluate the projects begun in 2009, and shall refine the design of the service integration 
317.14 	projects before expanding the projects. The commissioner shall report to the chairs of the 
317.15 	legislative committees with jurisdiction over mental health services by March 1, 2008, on 
317.16 	plans for evaluation of preferred integrated networks established under this subdivision.
317.17 	(h) The commissioner shall apply for any federal waivers necessary to implement these 
317.18 	changes.
317.19 	(i) Payment for Medicaid service providers under this subdivision for the months of 
317.20 	May and June will be made no earlier than July 1 of the same calendar year.

317.21 	Sec. 11. Minnesota Statutes 2024, section 245.4835, subdivision 2, is amended to read:
317.22 		Subd. 2.Failure to maintain expenditures. (a) If a county does not comply with 
317.23 	subdivision 1, the commissioner shall require the county to develop a corrective action plan 
317.24 	according to a format and timeline established by the commissioner. If the commissioner 
317.25 	determines that a county has not developed an acceptable corrective action plan within the 
317.26 	required timeline, or that the county is not in compliance with an approved corrective action 
317.27 	plan, the protections provided to that county under section 245.485 do not apply.
317.28 	(b) The commissioner shall consider the following factors to determine whether to 
317.29 	approve a county's corrective action plan:
317.30 	(1) the degree to which a county is maximizing revenues for mental health services from 
317.31 	noncounty sources;
318.1 	(2) the degree to which a county is expanding use of alternative services that meet mental 
318.2 	health needs, but do not count as mental health services within existing reporting systems. 
318.3 	If approved by the commissioner, the alternative services must be included in the county's 
318.4 	base as well as subsequent years. The commissioner's approval for alternative services must 
318.5 	be based on the following criteria:
318.6 	(i) the service must be provided to children with emotional disturbance or adults with 
318.7 	mental illness;
318.8 	(ii) the services must be based on an individual treatment plan or individual community 
318.9 	support plan as defined in the Comprehensive Mental Health Act; and
318.10 	(iii) the services must be supervised by a mental health professional and provided by 
318.11 	staff who meet the staff qualifications defined in sections 256B.0943, subdivision 7, and 
318.12 	256B.0623, subdivision 5.
318.13 	(c) Additional county expenditures to make up for the prior year's underspending may 
318.14 	be spread out over a two-year period.

318.15 	Sec. 12. Minnesota Statutes 2024, section 245.4863, is amended to read:
318.16 	245.4863 INTEGRATED CO-OCCURRING DISORDER TREATMENT.
318.17 	(a) The commissioner shall require individuals who perform substance use disorder 
318.18 	assessments to screen clients for co-occurring mental health disorders, and staff who perform 
318.19 	mental health diagnostic assessments to screen for co-occurring substance use disorders. 
318.20 	Screening tools must be approved by the commissioner. If a client screens positive for a 
318.21 	co-occurring mental health or substance use disorder, the individual performing the screening 
318.22 	must document what actions will be taken in response to the results and whether further 
318.23 	assessments must be performed.
318.24 	(b) Notwithstanding paragraph (a), screening is not required when:
318.25 	(1) the presence of co-occurring disorders was documented for the client in the past 12 
318.26 	months;
318.27 	(2) the client is currently receiving co-occurring disorders treatment;
318.28 	(3) the client is being referred for co-occurring disorders treatment; or
318.29 	(4) a mental health professional who is competent to perform diagnostic assessments of 
318.30 	co-occurring disorders is performing a diagnostic assessment to identify whether the client 
318.31 	may have co-occurring mental health and substance use disorders. If an individual is 
318.32 	identified to have co-occurring mental health and substance use disorders, the assessing 
319.1 	mental health professional must document what actions will be taken to address the client's 
319.2 	co-occurring disorders.
319.3 	(c) The commissioner shall adopt rules as necessary to implement this section. The 
319.4 	commissioner shall ensure that the rules are effective on July 1, 2013, thereby establishing 
319.5 	a certification process for integrated dual disorder treatment providers and a system through 
319.6 	which individuals receive integrated dual diagnosis treatment if assessed as having both a 
319.7 	substance use disorder and either a serious mental illness or emotional disturbance.
319.8 	(d) The commissioner shall apply for any federal waivers necessary to secure, to the 
319.9 	extent allowed by law, federal financial participation for the provision of integrated dual 
319.10 	diagnosis treatment to persons with co-occurring disorders.

319.11 	Sec. 13. Minnesota Statutes 2024, section 245.487, subdivision 2, is amended to read:
319.12 		Subd. 2.Findings. The legislature finds there is a need for further development of 
319.13 	existing clinical services for emotionally disturbed children with mental illness and their 
319.14 	families and the creation of new services for this population. Although the services specified 
319.15 	in sections 245.487 to 245.4889 are mental health services, sections 245.487 to 245.4889
319.16 	emphasize the need for a child-oriented and family-oriented approach of therapeutic 
319.17 	programming and the need for continuity of care with other community agencies. At the 
319.18 	same time, sections 245.487 to 245.4889 emphasize the importance of developing special 
319.19 	mental health expertise in children's mental health services because of the unique needs of 
319.20 	this population.
319.21 	Nothing in sections 245.487 to 245.4889 shall be construed to abridge the authority of 
319.22 	the court to make dispositions under chapter 260, but the mental health services due any 
319.23 	child with serious and persistent mental illness, as defined in section 245.462, subdivision 
319.24 	20, or with severe emotional disturbance serious mental illness, as defined in section 
319.25 	245.4871, subdivision 6, shall be made a part of any disposition affecting that child.

319.26 	Sec. 14. Minnesota Statutes 2024, section 245.4871, subdivision 3, is amended to read:
319.27 		Subd. 3.Case management services. "Case management services" means activities 
319.28 	that are coordinated with the family community support services and are designed to help 
319.29 	the child with severe emotional disturbance serious mental illness and the child's family 
319.30 	obtain needed mental health services, social services, educational services, health services, 
319.31 	vocational services, recreational services, and related services in the areas of volunteer 
319.32 	services, advocacy, transportation, and legal services. Case management services include 
319.33 	assisting in obtaining a comprehensive diagnostic assessment, developing an individual 
320.1 	family community support plan, and assisting the child and the child's family in obtaining 
320.2 	needed services by coordination with other agencies and assuring continuity of care. Case 
320.3 	managers must assess and reassess the delivery, appropriateness, and effectiveness of services 
320.4 	over time.

320.5 	Sec. 15. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
320.6 		Subd. 4.Case management service provider. (a) "Case management service provider" 
320.7 	means a case manager or case manager associate employed by the county or other entity 
320.8 	authorized by the county board to provide case management services specified in subdivision 
320.9 	3 for the child with severe emotional disturbance serious mental illness and the child's 
320.10 	family.
320.11 	(b) A case manager must:
320.12 	(1) have experience and training in working with children;
320.13 	(2) have at least a bachelor's degree in one of the behavioral sciences or a related field 
320.14 	including, but not limited to, social work, psychology, or nursing from an accredited college 
320.15 	or university or meet the requirements of paragraph (d);
320.16 	(3) have experience and training in identifying and assessing a wide range of children's 
320.17 	needs;
320.18 	(4) be knowledgeable about local community resources and how to use those resources 
320.19 	for the benefit of children and their families; and
320.20 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
320.21 	and (g), as applicable.
320.22 	(c) A case manager may be a member of any professional discipline that is part of the 
320.23 	local system of care for children established by the county board.
320.24 	(d) A case manager without a bachelor's degree must meet one of the requirements in 
320.25 	clauses (1) to (3):
320.26 	(1) have three or four years of experience as a case manager associate;
320.27 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
320.28 	training in psychiatry and work experience consisting of community interaction and 
320.29 	involvement or community discharge planning in a mental health setting totaling three years; 
320.30 	or
321.1 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
321.2 	Services waiver provision and meets the continuing education, supervision, and mentoring 
321.3 	requirements in this section.
321.4 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
321.5 	of mental health services to children must receive regular ongoing supervision and clinical 
321.6 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
321.7 	supervision regarding individual service delivery with a case management supervisor. The 
321.8 	other 26 hours of supervision may be provided by a case manager with two years of 
321.9 	experience. Group supervision may not constitute more than one-half of the required 
321.10 	supervision hours.
321.11 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
321.12 	mental health services to children with emotional disturbance mental illness must:
321.13 	(1) begin 40 hours of training approved by the commissioner of human services in case 
321.14 	management skills and in the characteristics and needs of children with severe emotional 
321.15 	disturbance serious mental illness before beginning to provide case management services; 
321.16 	and
321.17 	(2) receive clinical supervision regarding individual service delivery from a mental 
321.18 	health professional at least one hour each week until the requirement of 2,000 hours of 
321.19 	experience is met.
321.20 	(g) A case manager who is not licensed, registered, or certified by a health-related 
321.21 	licensing board must receive 30 hours of continuing education and training in severe 
321.22 	emotional disturbance serious mental illness and mental health services every two years.
321.23 	(h) Clinical supervision must be documented in the child's record. When the case manager 
321.24 	is not a mental health professional, the county board must provide or contract for needed 
321.25 	clinical supervision.
321.26 	(i) The county board must ensure that the case manager has the freedom to access and 
321.27 	coordinate the services within the local system of care that are needed by the child.
321.28 	(j) A case manager associate (CMA) must:
321.29 	(1) work under the direction of a case manager or case management supervisor;
321.30 	(2) be at least 21 years of age;
321.31 	(3) have at least a high school diploma or its equivalent; and
321.32 	(4) meet one of the following criteria:
322.1 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
322.2 	(ii) be a registered nurse without a bachelor's degree;
322.3 	(iii) have three years of life experience as a primary caregiver to a child with serious 
322.4 	emotional disturbance mental illness as defined in subdivision 6 within the previous ten 
322.5 	years;
322.6 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
322.7 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
322.8 	services to children with emotional disturbances mental illness; hours worked as a mental 
322.9 	health behavioral aide I or II under section 256B.0943, subdivision 7, may count toward 
322.10 	the 6,000 hours of supervised work experience.
322.11 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
322.12 	after four years of supervised work experience as a case manager associate. Individuals 
322.13 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
322.14 	experience as a case manager associate.
322.15 	(k) Case manager associates must meet the following supervision, mentoring, and 
322.16 	continuing education requirements;
322.17 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
322.18 	(2) receive at least 40 hours of continuing education in severe emotional disturbance
322.19 	serious mental illness and mental health service annually; and
322.20 	(3) receive at least five hours of mentoring per week from a case management mentor. 
322.21 	A "case management mentor" means a qualified, practicing case manager or case management 
322.22 	supervisor who teaches or advises and provides intensive training and clinical supervision 
322.23 	to one or more case manager associates. Mentoring may occur while providing direct services 
322.24 	to consumers in the office or in the field and may be provided to individuals or groups of 
322.25 	case manager associates. At least two mentoring hours per week must be individual and 
322.26 	face-to-face.
322.27 	(l) A case management supervisor must meet the criteria for a mental health professional 
322.28 	as specified in subdivision 27.
322.29 	(m) An immigrant who does not have the qualifications specified in this subdivision 
322.30 	may provide case management services to child immigrants with severe emotional 
322.31 	disturbance serious mental illness of the same ethnic group as the immigrant if the person:
323.1 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
323.2 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
323.3 	or university;
323.4 	(2) completes 40 hours of training as specified in this subdivision; and
323.5 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
323.6 	a bachelor's degree and 2,000 hours of supervised experience are met.

323.7 	Sec. 16. Minnesota Statutes 2024, section 245.4871, subdivision 6, is amended to read:
323.8 		Subd. 6.Child with severe emotional disturbance serious mental illness. For purposes 
323.9 	of eligibility for case management and family community support services, "child with 
323.10 	severe emotional disturbance serious mental illness" means a child who has an emotional 
323.11 	disturbance mental illness and who meets one of the following criteria:
323.12 	(1) the child has been admitted within the last three years or is at risk of being admitted 
323.13 	to inpatient treatment or residential treatment for an emotional disturbance mental illness; 
323.14 	or
323.15 	(2) the child is a Minnesota resident and is receiving inpatient treatment or residential 
323.16 	treatment for an emotional disturbance mental illness through the interstate compact; or
323.17 	(3) the child has one of the following as determined by a mental health professional:
323.18 	(i) psychosis or a clinical depression; or
323.19 	(ii) risk of harming self or others as a result of an emotional disturbance mental illness; 
323.20 	or
323.21 	(iii) psychopathological symptoms as a result of being a victim of physical or sexual 
323.22 	abuse or of psychic trauma within the past year; or
323.23 	(4) the child, as a result of an emotional disturbance mental illness, has significantly 
323.24 	impaired home, school, or community functioning that has lasted at least one year or that, 
323.25 	in the written opinion of a mental health professional, presents substantial risk of lasting at 
323.26 	least one year.

323.27 	Sec. 17. Minnesota Statutes 2024, section 245.4871, subdivision 13, is amended to read:
323.28 		Subd. 13.Education and prevention services. (a) "Education and prevention services" 
323.29 	means services designed to:
323.30 	(1) educate the general public;
324.1 	(2) increase the understanding and acceptance of problems associated with emotional 
324.2 	disturbances children's mental illnesses;
324.3 	(3) improve people's skills in dealing with high-risk situations known to affect children's 
324.4 	mental health and functioning; and
324.5 	(4) refer specific children or their families with mental health needs to mental health 
324.6 	services.
324.7 	(b) The services include distribution to individuals and agencies identified by the county 
324.8 	board and the local children's mental health advisory council of information on predictors 
324.9 	and symptoms of emotional disturbances mental illnesses, where mental health services are 
324.10 	available in the county, and how to access the services.

324.11 	Sec. 18. Minnesota Statutes 2024, section 245.4871, subdivision 15, is amended to read:
324.12 		Subd. 15.Emotional disturbance Mental illness. "Emotional disturbance" "Mental 
324.13 	illness" means an organic disorder of the brain or a clinically significant disorder of thought, 
324.14 	mood, perception, orientation, memory, or behavior that:
324.15 	(1) is detailed in a diagnostic codes list published by the commissioner; and
324.16 	(2) seriously limits a child's capacity to function in primary aspects of daily living such 
324.17 	as personal relations, living arrangements, work, school, and recreation.
324.18 	"Emotional disturbance" Mental illness is a generic term and is intended to reflect all 
324.19 	categories of disorder described in the clinical code list published by the commissioner as 
324.20 	"usually first evident in childhood or adolescence."

324.21 	Sec. 19. Minnesota Statutes 2024, section 245.4871, subdivision 17, is amended to read:
324.22 		Subd. 17.Family community support services. "Family community support services" 
324.23 	means services provided under the treatment supervision of a mental health professional 
324.24 	and designed to help each child with severe emotional disturbance serious mental illness to 
324.25 	function and remain with the child's family in the community. Family community support 
324.26 	services do not include acute care hospital inpatient treatment, residential treatment services, 
324.27 	or regional treatment center services. Family community support services include:
324.28 	(1) client outreach to each child with severe emotional disturbance serious mental illness
324.29 	and the child's family;
324.30 	(2) medication monitoring where necessary;
324.31 	(3) assistance in developing independent living skills;
325.1 	(4) assistance in developing parenting skills necessary to address the needs of the child 
325.2 	with severe emotional disturbance serious mental illness;
325.3 	(5) assistance with leisure and recreational activities;
325.4 	(6) crisis planning, including crisis placement and respite care;
325.5 	(7) professional home-based family treatment;
325.6 	(8) foster care with therapeutic supports;
325.7 	(9) day treatment;
325.8 	(10) assistance in locating respite care and special needs day care; and
325.9 	(11) assistance in obtaining potential financial resources, including those benefits listed 
325.10 	in section 245.4884, subdivision 5.

325.11 	Sec. 20. Minnesota Statutes 2024, section 245.4871, subdivision 19, is amended to read:
325.12 		Subd. 19.Individual family community support plan. "Individual family community 
325.13 	support plan" means a written plan developed by a case manager in conjunction with the 
325.14 	family and the child with severe emotional disturbance serious mental illness on the basis 
325.15 	of a diagnostic assessment and a functional assessment. The plan identifies specific services 
325.16 	needed by a child and the child's family to:
325.17 	(1) treat the symptoms and dysfunctions determined in the diagnostic assessment;
325.18 	(2) relieve conditions leading to emotional disturbance mental illness and improve the 
325.19 	personal well-being of the child;
325.20 	(3) improve family functioning;
325.21 	(4) enhance daily living skills;
325.22 	(5) improve functioning in education and recreation settings;
325.23 	(6) improve interpersonal and family relationships;
325.24 	(7) enhance vocational development; and
325.25 	(8) assist in obtaining transportation, housing, health services, and employment.

325.26 	Sec. 21. Minnesota Statutes 2024, section 245.4871, subdivision 21, is amended to read:
325.27 		Subd. 21.Individual treatment plan. (a) "Individual treatment plan" means the 
325.28 	formulation of planned services that are responsive to the needs and goals of a client. An 
326.1 	individual treatment plan must be completed according to section 245I.10, subdivisions 7 
326.2 	and 8.
326.3 	(b) A children's residential facility licensed under Minnesota Rules, chapter 2960, is 
326.4 	exempt from the requirements of section 245I.10, subdivisions 7 and 8. Instead, the individual 
326.5 	treatment plan must:
326.6 	(1) include a written plan of intervention, treatment, and services for a child with an 
326.7 	emotional disturbance mental illness that the service provider develops under the clinical 
326.8 	supervision of a mental health professional on the basis of a diagnostic assessment;
326.9 	(2) be developed in conjunction with the family unless clinically inappropriate; and
326.10 	(3) identify goals and objectives of treatment, treatment strategy, a schedule for 
326.11 	accomplishing treatment goals and objectives, and the individuals responsible for providing 
326.12 	treatment to the child with an emotional disturbance mental illness.

326.13 	Sec. 22. Minnesota Statutes 2024, section 245.4871, subdivision 22, is amended to read:
326.14 		Subd. 22.Legal representative. "Legal representative" means a guardian, conservator, 
326.15 	or guardian ad litem of a child with an emotional disturbance mental illness authorized by 
326.16 	the court to make decisions about mental health services for the child.

326.17 	Sec. 23. Minnesota Statutes 2024, section 245.4871, subdivision 28, is amended to read:
326.18 		Subd. 28.Mental health services. "Mental health services" means at least all of the 
326.19 	treatment services and case management activities that are provided to children with 
326.20 	emotional disturbances mental illnesses and are described in sections 245.487 to 245.4889.

326.21 	Sec. 24. Minnesota Statutes 2024, section 245.4871, subdivision 29, is amended to read:
326.22 		Subd. 29.Outpatient services. "Outpatient services" means mental health services, 
326.23 	excluding day treatment and community support services programs, provided by or under 
326.24 	the treatment supervision of a mental health professional to children with emotional 
326.25 	disturbances mental illnesses who live outside a hospital. Outpatient services include clinical 
326.26 	activities such as individual, group, and family therapy; individual treatment planning; 
326.27 	diagnostic assessments; medication management; and psychological testing.

326.28 	Sec. 25. Minnesota Statutes 2024, section 245.4871, subdivision 31, is amended to read:
326.29 		Subd. 31.Professional home-based family treatment. (a) "Professional home-based 
326.30 	family treatment" means intensive mental health services provided to children because of 
327.1 	an emotional disturbance mental illness: (1) who are at risk of out-of-home placement
327.2 	residential treatment or therapeutic foster care; (2) who are in out-of-home placement
327.3 	residential treatment or therapeutic foster care; or (3) who are returning from out-of-home 
327.4 	placement residential treatment or therapeutic foster care.
327.5 	(b) Services are provided to the child and the child's family primarily in the child's home 
327.6 	environment. Services may also be provided in the child's school, child care setting, or other 
327.7 	community setting appropriate to the child. Services must be provided on an individual 
327.8 	family basis, must be child-oriented and family-oriented, and must be designed using 
327.9 	information from diagnostic and functional assessments to meet the specific mental health 
327.10 	needs of the child and the child's family. Services must be coordinated with other services 
327.11 	provided to the child and the child's family.
327.12 	(c) Examples of services are: (1) individual therapy; (2) family therapy; (3) client 
327.13 	outreach; (4) assistance in developing individual living skills; (5) assistance in developing 
327.14 	parenting skills necessary to address the needs of the child; (6) assistance with leisure and 
327.15 	recreational services; (7) crisis planning, including crisis respite care and arranging for crisis 
327.16 	placement; and (8) assistance in locating respite and child care. Services must be coordinated 
327.17 	with other services provided to the child and family.

327.18 	Sec. 26. Minnesota Statutes 2024, section 245.4871, subdivision 32, is amended to read:
327.19 		Subd. 32.Residential treatment. "Residential treatment" means a 24-hour-a-day program 
327.20 	under the treatment supervision of a mental health professional, in a community residential 
327.21 	setting other than an acute care hospital or regional treatment center inpatient unit, that must 
327.22 	be licensed as a residential treatment program for children with emotional disturbances
327.23 	mental illnesses under Minnesota Rules, parts 2960.0580 to 2960.0700, or other rules adopted 
327.24 	by the commissioner.

327.25 	Sec. 27. Minnesota Statutes 2024, section 245.4871, subdivision 34, is amended to read:
327.26 		Subd. 34.Therapeutic support of foster care. "Therapeutic support of foster care" 
327.27 	means the mental health training and mental health support services and treatment supervision 
327.28 	provided by a mental health professional to foster families caring for children with severe 
327.29 	emotional disturbance serious mental illnesses to provide a therapeutic family environment 
327.30 	and support for the child's improved functioning. Therapeutic support of foster care includes 
327.31 	services provided under section 256B.0946.

328.1 	Sec. 28. Minnesota Statutes 2024, section 245.4873, subdivision 2, is amended to read:
328.2 		Subd. 2.State level; coordination. The Children's Cabinet, under section 4.045, in 
328.3 	consultation with a representative of the Minnesota District Judges Association Juvenile 
328.4 	Committee, shall:
328.5 	(1) educate each agency about the policies, procedures, funding, and services for children 
328.6 	with emotional disturbances mental illnesses of all agencies represented;
328.7 	(2) develop mechanisms for interagency coordination on behalf of children with emotional 
328.8 	disturbances mental illnesses;
328.9 	(3) identify barriers including policies and procedures within all agencies represented 
328.10 	that interfere with delivery of mental health services for children;
328.11 	(4) recommend policy and procedural changes needed to improve development and 
328.12 	delivery of mental health services for children in the agency or agencies they represent; and
328.13 	(5) identify mechanisms for better use of federal and state funding in the delivery of 
328.14 	mental health services for children.

328.15 	Sec. 29. Minnesota Statutes 2024, section 245.4874, subdivision 1, is amended to read:
328.16 		Subdivision 1.Duties of county board. (a) The county board must:
328.17 	(1) develop a system of affordable and locally available children's mental health services 
328.18 	according to sections 245.487 to 245.4889;
328.19 	(2) consider the assessment of unmet needs in the county as reported by the local 
328.20 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
328.21 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
328.22 	advisory council, readily available data to assist in the determination of unmet needs;
328.23 	(3) assure that parents and providers in the county receive information about how to 
328.24 	gain access to services provided according to sections 245.487 to 245.4889;
328.25 	(4) coordinate the delivery of children's mental health services with services provided 
328.26 	by social services, education, corrections, health, and vocational agencies to improve the 
328.27 	availability of mental health services to children and the cost-effectiveness of their delivery;
328.28 	(5) assure that mental health services delivered according to sections 245.487 to 245.4889 
328.29 	are delivered expeditiously and are appropriate to the child's diagnostic assessment and 
328.30 	individual treatment plan;
329.1 	(6) provide for case management services to each child with severe emotional disturbance
329.2 	serious mental illness according to sections 245.486; 245.4871, subdivisions 3 and 4; and 
329.3 	245.4881, subdivisions 1, 3, and 5;
329.4 	(7) provide for screening of each child under section 245.4885 upon admission to a 
329.5 	residential treatment facility, acute care hospital inpatient treatment, or informal admission 
329.6 	to a regional treatment center;
329.7 	(8) prudently administer grants and purchase-of-service contracts that the county board 
329.8 	determines are necessary to fulfill its responsibilities under sections 245.487 to 245.4889;
329.9 	(9) assure that mental health professionals, mental health practitioners, and case managers 
329.10 	employed by or under contract to the county to provide mental health services are qualified 
329.11 	under section 245.4871;
329.12 	(10) assure that children's mental health services are coordinated with adult mental health 
329.13 	services specified in sections 245.461 to 245.486 so that a continuum of mental health 
329.14 	services is available to serve persons with mental illness, regardless of the person's age;
329.15 	(11) assure that culturally competent mental health consultants are used as necessary to 
329.16 	assist the county board in assessing and providing appropriate treatment for children of 
329.17 	cultural or racial minority heritage; and
329.18 	(12) consistent with section 245.486, arrange for or provide a children's mental health 
329.19 	screening for:
329.20 	(i) a child receiving child protective services;
329.21 	(ii) a child in out-of-home placement residential treatment or therapeutic foster care;
329.22 	(iii) a child for whom parental rights have been terminated;
329.23 	(iv) a child found to be delinquent; or
329.24 	(v) a child found to have committed a juvenile petty offense for the third or subsequent 
329.25 	time.
329.26 	A children's mental health screening is not required when a screening or diagnostic 
329.27 	assessment has been performed within the previous 180 days, or the child is currently under 
329.28 	the care of a mental health professional.
329.29 	(b) When a child is receiving protective services or is in out-of-home placement
329.30 	residential treatment or foster care, the court or county agency must notify a parent or 
329.31 	guardian whose parental rights have not been terminated of the potential mental health 
330.1 	screening and the option to prevent the screening by notifying the court or county agency 
330.2 	in writing.
330.3 	(c) When a child is found to be delinquent or a child is found to have committed a 
330.4 	juvenile petty offense for the third or subsequent time, the court or county agency must 
330.5 	obtain written informed consent from the parent or legal guardian before a screening is 
330.6 	conducted unless the court, notwithstanding the parent's failure to consent, determines that 
330.7 	the screening is in the child's best interest.
330.8 	(d) The screening shall be conducted with a screening instrument approved by the 
330.9 	commissioner of human services according to criteria that are updated and issued annually 
330.10 	to ensure that approved screening instruments are valid and useful for child welfare and 
330.11 	juvenile justice populations. Screenings shall be conducted by a mental health practitioner 
330.12 	as defined in section 245.4871, subdivision 26, or a probation officer or local social services 
330.13 	agency staff person who is trained in the use of the screening instrument. Training in the 
330.14 	use of the instrument shall include:
330.15 	(1) training in the administration of the instrument;
330.16 	(2) the interpretation of its validity given the child's current circumstances;
330.17 	(3) the state and federal data practices laws and confidentiality standards;
330.18 	(4) the parental consent requirement; and
330.19 	(5) providing respect for families and cultural values.
330.20 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
330.21 	mental health insurance, the local social services agency, in consultation with the child's 
330.22 	family, shall have conducted a diagnostic assessment, including a functional assessment. 
330.23 	The administration of the screening shall safeguard the privacy of children receiving the 
330.24 	screening and their families and shall comply with the Minnesota Government Data Practices 
330.25 	Act, chapter 13, and the federal Health Insurance Portability and Accountability Act of 
330.26 	1996, Public Law 104-191. Screening results are classified as private data on individuals, 
330.27 	as defined by section 13.02, subdivision 12. The county board or Tribal nation may provide 
330.28 	the commissioner with access to the screening results for the purposes of program evaluation 
330.29 	and improvement.
330.30 	(e) When the county board refers clients to providers of children's therapeutic services 
330.31 	and supports under section 256B.0943, the county board must clearly identify the desired 
330.32 	services components not covered under section 256B.0943 and identify the reimbursement 
331.1 	source for those requested services, the method of payment, and the payment rate to the 
331.2 	provider.

331.3 	Sec. 30. Minnesota Statutes 2024, section 245.4875, subdivision 5, is amended to read:
331.4 		Subd. 5.Local children's advisory council. (a) By October 1, 1989, the county board, 
331.5 	individually or in conjunction with other county boards, shall establish a local children's 
331.6 	mental health advisory council or children's mental health subcommittee of the existing 
331.7 	local mental health advisory council or shall include persons on its existing mental health 
331.8 	advisory council who are representatives of children's mental health interests. The following 
331.9 	individuals must serve on the local children's mental health advisory council, the children's 
331.10 	mental health subcommittee of an existing local mental health advisory council, or be 
331.11 	included on an existing mental health advisory council: (1) at least one person who was in 
331.12 	a mental health program as a child or adolescent; (2) at least one parent of a child or 
331.13 	adolescent with severe emotional disturbance serious mental illness; (3) one children's 
331.14 	mental health professional; (4) representatives of minority populations of significant size 
331.15 	residing in the county; (5) a representative of the children's mental health local coordinating 
331.16 	council; and (6) one family community support services program representative.
331.17 	(b) The local children's mental health advisory council or children's mental health 
331.18 	subcommittee of an existing advisory council shall seek input from parents, former 
331.19 	consumers, providers, and others about the needs of children with emotional disturbance
331.20 	mental illness in the local area and services needed by families of these children, and shall 
331.21 	meet monthly, unless otherwise determined by the council or subcommittee, but not less 
331.22 	than quarterly, to review, evaluate, and make recommendations regarding the local children's 
331.23 	mental health system. Annually, the local children's mental health advisory council or 
331.24 	children's mental health subcommittee of the existing local mental health advisory council 
331.25 	shall:
331.26 	(1) arrange for input from the local system of care providers regarding coordination of 
331.27 	care between the services;
331.28 	(2) identify for the county board the individuals, providers, agencies, and associations 
331.29 	as specified in section 245.4877, clause (2); and
331.30 	(3) provide to the county board a report of unmet mental health needs of children residing 
331.31 	in the county.
332.1 	(c) The county board shall consider the advice of its local children's mental health 
332.2 	advisory council or children's mental health subcommittee of the existing local mental health 
332.3 	advisory council in carrying out its authorities and responsibilities.

332.4 	Sec. 31. Minnesota Statutes 2024, section 245.4876, subdivision 4, is amended to read:
332.5 		Subd. 4.Referral for case management. Each provider of emergency services, outpatient 
332.6 	treatment, community support services, family community support services, day treatment 
332.7 	services, screening under section 245.4885, professional home-based family treatment 
332.8 	services, residential treatment facilities, acute care hospital inpatient treatment facilities, or 
332.9 	regional treatment center services must inform each child with severe emotional disturbance
332.10 	serious mental illness, and the child's parent or legal representative, of the availability and 
332.11 	potential benefits to the child of case management. The information shall be provided as 
332.12 	specified in subdivision 5. If consent is obtained according to subdivision 5, the provider 
332.13 	must refer the child by notifying the county employee designated by the county board to 
332.14 	coordinate case management activities of the child's name and address and by informing 
332.15 	the child's family of whom to contact to request case management. The provider must 
332.16 	document compliance with this subdivision in the child's record. The parent or child may 
332.17 	directly request case management even if there has been no referral.

332.18 	Sec. 32. Minnesota Statutes 2024, section 245.4876, subdivision 5, is amended to read:
332.19 		Subd. 5.Consent for services or for release of information. (a) Although sections 
332.20 	245.487 to 245.4889 require each county board, within the limits of available resources, to 
332.21 	make the mental health services listed in those sections available to each child residing in 
332.22 	the county who needs them, the county board shall not provide any services, either directly 
332.23 	or by contract, unless consent to the services is obtained under this subdivision. The case 
332.24 	manager assigned to a child with a severe emotional disturbance serious mental illness shall 
332.25 	not disclose to any person other than the case manager's immediate supervisor and the mental 
332.26 	health professional providing clinical supervision of the case manager information on the 
332.27 	child, the child's family, or services provided to the child or the child's family without 
332.28 	informed written consent unless required to do so by statute or under the Minnesota 
332.29 	Government Data Practices Act. Informed written consent must comply with section 13.05, 
332.30 	subdivision 4, paragraph (d), and specify the purpose and use for which the case manager 
332.31 	may disclose the information.
332.32 	(b) The consent or authorization must be obtained from the child's parent unless: (1) the 
332.33 	parental rights are terminated; or (2) consent is otherwise provided under sections 144.341
333.1 	to 144.347; 253B.04, subdivision 1; 260C.148; 260C.151; and 260C.201, subdivision 1, 
333.2 	the terms of appointment of a court-appointed guardian or conservator, or federal regulations 
333.3 	governing substance use disorder services.

333.4 	Sec. 33. Minnesota Statutes 2024, section 245.4877, is amended to read:
333.5 	245.4877 EDUCATION AND PREVENTION SERVICES.
333.6 	Education and prevention services must be available to all children residing in the county. 
333.7 	Education and prevention services must be designed to:
333.8 	(1) convey information regarding emotional disturbances mental illness, mental health 
333.9 	needs, and treatment resources to the general public;
333.10 	(2) at least annually, distribute to individuals and agencies identified by the county board 
333.11 	and the local children's mental health advisory council information on predictors and 
333.12 	symptoms of emotional disturbances mental illness, where mental health services are 
333.13 	available in the county, and how to access the services;
333.14 	(3) increase understanding and acceptance of problems associated with emotional 
333.15 	disturbances mental illness;
333.16 	(4) improve people's skills in dealing with high-risk situations known to affect children's 
333.17 	mental health and functioning;
333.18 	(5) prevent development or deepening of emotional disturbances mental illness; and
333.19 	(6) refer each child with emotional disturbance mental illness or the child's family with 
333.20 	additional mental health needs to appropriate mental health services.

333.21 	Sec. 34. Minnesota Statutes 2024, section 245.488, subdivision 1, is amended to read:
333.22 		Subdivision 1.Availability of outpatient services. (a) County boards must provide or 
333.23 	contract for enough outpatient services within the county to meet the needs of each child 
333.24 	with emotional disturbance mental illness residing in the county and the child's family. 
333.25 	Services may be provided directly by the county through county-operated mental health 
333.26 	clinics meeting the standards of chapter 245I; by contract with privately operated mental 
333.27 	health clinics meeting the standards of chapter 245I; by contract with hospital mental health 
333.28 	outpatient programs certified by the Joint Commission on Accreditation of Hospital 
333.29 	Organizations; or by contract with a mental health professional. A child or a child's parent 
333.30 	may be required to pay a fee based in accordance with section 245.481. Outpatient services 
333.31 	include:
334.1 	(1) conducting diagnostic assessments;
334.2 	(2) conducting psychological testing;
334.3 	(3) developing or modifying individual treatment plans;
334.4 	(4) making referrals and recommending placements as appropriate;
334.5 	(5) treating the child's mental health needs through therapy; and
334.6 	(6) prescribing and managing medication and evaluating the effectiveness of prescribed 
334.7 	medication.
334.8 	(b) County boards may request a waiver allowing outpatient services to be provided in 
334.9 	a nearby trade area if it is determined that the child requires necessary and appropriate 
334.10 	services that are only available outside the county.
334.11 	(c) Outpatient services offered by the county board to prevent placement must be at the 
334.12 	level of treatment appropriate to the child's diagnostic assessment.

334.13 	Sec. 35. Minnesota Statutes 2024, section 245.488, subdivision 3, is amended to read:
334.14 		Subd. 3.Mental health crisis services. County boards must provide or contract for 
334.15 	mental health crisis services within the county to meet the needs of children with emotional 
334.16 	disturbance mental illness residing in the county who are determined, through an assessment 
334.17 	by a mental health professional, to be experiencing a mental health crisis or mental health 
334.18 	emergency. The mental health crisis services provided must be medically necessary, as 
334.19 	defined in section 62Q.53, subdivision 2, and necessary for the safety of the child or others 
334.20 	regardless of the setting.

334.21 	Sec. 36. Minnesota Statutes 2024, section 245.4881, subdivision 1, is amended to read:
334.22 		Subdivision 1.Availability of case management services. (a) The county board shall 
334.23 	provide case management services for each child with severe emotional disturbance serious 
334.24 	mental illness who is a resident of the county and the child's family who request or consent 
334.25 	to the services. Case management services must be offered to a child with a serious emotional 
334.26 	disturbance mental illness who is over the age of 18 consistent with section 245.4875, 
334.27 	subdivision 8, or the child's legal representative, provided the child's service needs can be 
334.28 	met within the children's service system. Before discontinuing case management services 
334.29 	under this subdivision for children between the ages of 17 and 21, a transition plan must be 
334.30 	developed. The transition plan must be developed with the child and, with the consent of a 
334.31 	child age 18 or over, the child's parent, guardian, or legal representative. The transition plan 
335.1 	should include plans for health insurance, housing, education, employment, and treatment. 
335.2 	Staffing ratios must be sufficient to serve the needs of the clients. The case manager must 
335.3 	meet the requirements in section 245.4871, subdivision 4.
335.4 	(b) Except as permitted by law and the commissioner under demonstration projects, case 
335.5 	management services provided to children with severe emotional disturbance serious mental 
335.6 	illness eligible for medical assistance must be billed to the medical assistance program under 
335.7 	sections 256B.02, subdivision 8, and 256B.0625.
335.8 	(c) Case management services are eligible for reimbursement under the medical assistance 
335.9 	program. Costs of mentoring, supervision, and continuing education may be included in the 
335.10 	reimbursement rate methodology used for case management services under the medical 
335.11 	assistance program.

335.12 	Sec. 37. Minnesota Statutes 2024, section 245.4881, subdivision 4, is amended to read:
335.13 		Subd. 4.Individual family community support plan. (a) For each child, the case 
335.14 	manager must develop an individual family community support plan that incorporates the 
335.15 	child's individual treatment plan. The individual treatment plan may not be a substitute for 
335.16 	the development of an individual family community support plan. The case manager is 
335.17 	responsible for developing the individual family community support plan within 30 days 
335.18 	of intake based on a diagnostic assessment and for implementing and monitoring the delivery 
335.19 	of services according to the individual family community support plan. The case manager 
335.20 	must review the plan at least every 180 calendar days after it is developed, unless the case 
335.21 	manager has received a written request from the child's family or an advocate for the child 
335.22 	for a review of the plan every 90 days after it is developed. To the extent appropriate, the 
335.23 	child with severe emotional disturbance serious mental illness, the child's family, advocates, 
335.24 	service providers, and significant others must be involved in all phases of development and 
335.25 	implementation of the individual family community support plan. Notwithstanding the lack 
335.26 	of an individual family community support plan, the case manager shall assist the child and 
335.27 	child's family in accessing the needed services listed in section 245.4884, subdivision 1.
335.28 	(b) The child's individual family community support plan must state:
335.29 	(1) the goals and expected outcomes of each service and criteria for evaluating the 
335.30 	effectiveness and appropriateness of the service;
335.31 	(2) the activities for accomplishing each goal;
335.32 	(3) a schedule for each activity; and
336.1 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
336.2 	need and the implementation of the individual family community support plan.

336.3 	Sec. 38. Minnesota Statutes 2024, section 245.4882, subdivision 1, is amended to read:
336.4 		Subdivision 1.Availability of residential treatment services. County boards must 
336.5 	provide or contract for enough residential treatment services to meet the needs of each child 
336.6 	with severe emotional disturbance serious mental illness residing in the county and needing 
336.7 	this level of care. Length of stay is based on the child's residential treatment need and shall 
336.8 	be reviewed every 90 days. Services must be appropriate to the child's age and treatment 
336.9 	needs and must be made available as close to the county as possible. Residential treatment 
336.10 	must be designed to:
336.11 	(1) help the child improve family living and social interaction skills;
336.12 	(2) help the child gain the necessary skills to return to the community;
336.13 	(3) stabilize crisis admissions; and
336.14 	(4) work with families throughout the placement to improve the ability of the families 
336.15 	to care for children with severe emotional disturbance serious mental illness in the home.

336.16 	Sec. 39. Minnesota Statutes 2024, section 245.4882, subdivision 5, is amended to read:
336.17 		Subd. 5.Specialized residential treatment services. The commissioner of human 
336.18 	services shall continue efforts to further interagency collaboration to develop a comprehensive 
336.19 	system of services, including family community support and specialized residential treatment 
336.20 	services for children. The services shall be designed for children with emotional disturbance
336.21 	mental illness who exhibit violent or destructive behavior and for whom local treatment 
336.22 	services are not feasible due to the small number of children statewide who need the services 
336.23 	and the specialized nature of the services required. The services shall be located in community 
336.24 	settings.

336.25 	Sec. 40. Minnesota Statutes 2024, section 245.4884, is amended to read:
336.26 	245.4884 FAMILY COMMUNITY SUPPORT SERVICES.
336.27 		Subdivision 1.Availability of family community support services. By July 1, 1991, 
336.28 	county boards must provide or contract for sufficient family community support services 
336.29 	within the county to meet the needs of each child with severe emotional disturbance serious 
336.30 	mental illness who resides in the county and the child's family. Children or their parents 
336.31 	may be required to pay a fee in accordance with section 245.481.
337.1 	Family community support services must be designed to improve the ability of children 
337.2 	with severe emotional disturbance serious mental illness to:
337.3 	(1) manage basic activities of daily living;
337.4 	(2) function appropriately in home, school, and community settings;
337.5 	(3) participate in leisure time or community youth activities;
337.6 	(4) set goals and plans;
337.7 	(5) reside with the family in the community;
337.8 	(6) participate in after-school and summer activities;
337.9 	(7) make a smooth transition among mental health and education services provided to 
337.10 	children; and
337.11 	(8) make a smooth transition into the adult mental health system as appropriate.
337.12 	In addition, family community support services must be designed to improve overall 
337.13 	family functioning if clinically appropriate to the child's needs, and to reduce the need for 
337.14 	and use of placements more intensive, costly, or restrictive both in the number of admissions 
337.15 	and lengths of stay than indicated by the child's diagnostic assessment.
337.16 	The commissioner of human services shall work with mental health professionals to 
337.17 	develop standards for clinical supervision of family community support services. These 
337.18 	standards shall be incorporated in rule and in guidelines for grants for family community 
337.19 	support services.
337.20 		Subd. 2.Day treatment services provided. (a) Day treatment services must be part of 
337.21 	the family community support services available to each child with severe emotional 
337.22 	disturbance serious mental illness residing in the county. A child or the child's parent may 
337.23 	be required to pay a fee according to section 245.481. Day treatment services must be 
337.24 	designed to:
337.25 	(1) provide a structured environment for treatment;
337.26 	(2) provide support for residing in the community;
337.27 	(3) prevent placements that are more intensive, costly, or restrictive than necessary to 
337.28 	meet the child's need;
337.29 	(4) coordinate with or be offered in conjunction with the child's education program;
337.30 	(5) provide therapy and family intervention for children that are coordinated with 
337.31 	education services provided and funded by schools; and
338.1 	(6) operate during all 12 months of the year.
338.2 	(b) County boards may request a waiver from including day treatment services if they 
338.3 	can document that:
338.4 	(1) alternative services exist through the county's family community support services 
338.5 	for each child who would otherwise need day treatment services; and
338.6 	(2) county demographics and geography make the provision of day treatment services 
338.7 	cost ineffective and unfeasible.
338.8 		Subd. 3.Professional home-based family treatment provided. (a) By January 1, 1991, 
338.9 	county boards must provide or contract for sufficient professional home-based family 
338.10 	treatment within the county to meet the needs of each child with severe emotional disturbance
338.11 	serious mental illness who is at risk of out-of-home placement residential treatment or 
338.12 	therapeutic foster care due to the child's emotional disturbance mental illness or who is 
338.13 	returning to the home from out-of-home placement residential treatment or therapeutic 
338.14 	foster care. The child or the child's parent may be required to pay a fee according to section 
338.15 	245.481. The county board shall require that all service providers of professional home-based 
338.16 	family treatment set fee schedules approved by the county board that are based on the child's 
338.17 	or family's ability to pay. The professional home-based family treatment must be designed 
338.18 	to assist each child with severe emotional disturbance serious mental illness who is at risk 
338.19 	of or who is returning from out-of-home placement residential treatment or therapeutic 
338.20 	foster care and the child's family to:
338.21 	(1) improve overall family functioning in all areas of life;
338.22 	(2) treat the child's symptoms of emotional disturbance mental illness that contribute to 
338.23 	a risk of out-of-home placement residential treatment or therapeutic foster care;
338.24 	(3) provide a positive change in the emotional, behavioral, and mental well-being of 
338.25 	children and their families; and
338.26 	(4) reduce risk of out-of-home placement residential treatment or therapeutic foster care
338.27 	for the identified child with severe emotional disturbance serious mental illness and other 
338.28 	siblings or successfully reunify and reintegrate into the family a child returning from 
338.29 	out-of-home placement residential treatment or therapeutic foster care due to emotional 
338.30 	disturbance mental illness.
338.31 	(b) Professional home-based family treatment must be provided by a team consisting of 
338.32 	a mental health professional and others who are skilled in the delivery of mental health 
338.33 	services to children and families in conjunction with other human service providers. The 
339.1 	professional home-based family treatment team must maintain flexible hours of service 
339.2 	availability and must provide or arrange for crisis services for each family, 24 hours a day, 
339.3 	seven days a week. Case loads for each professional home-based family treatment team 
339.4 	must be small enough to permit the delivery of intensive services and to meet the needs of 
339.5 	the family. Professional home-based family treatment providers shall coordinate services 
339.6 	and service needs with case managers assigned to children and their families. The treatment 
339.7 	team must develop an individual treatment plan that identifies the specific treatment 
339.8 	objectives for both the child and the family.
339.9 		Subd. 4.Therapeutic support of foster care. By January 1, 1992, county boards must 
339.10 	provide or contract for foster care with therapeutic support as defined in section 245.4871, 
339.11 	subdivision 34. Foster families caring for children with severe emotional disturbance serious 
339.12 	mental illness must receive training and supportive services, as necessary, at no cost to the 
339.13 	foster families within the limits of available resources.
339.14 		Subd. 5.Benefits assistance. The county board must offer help to a child with severe 
339.15 	emotional disturbance serious mental illness and the child's family in applying for federal 
339.16 	benefits, including Supplemental Security Income, medical assistance, and Medicare.

339.17 	Sec. 41. Minnesota Statutes 2024, section 245.4885, subdivision 1, is amended to read:
339.18 		Subdivision 1.Admission criteria. (a) Prior to admission or placement, except in the 
339.19 	case of an emergency, all children referred for treatment of severe emotional disturbance
339.20 	serious mental illness in a treatment foster care setting, residential treatment facility, or 
339.21 	informally admitted to a regional treatment center shall undergo an assessment to determine 
339.22 	the appropriate level of care if county funds are used to pay for the child's services. An 
339.23 	emergency includes when a child is in need of and has been referred for crisis stabilization 
339.24 	services under section 245.4882, subdivision 6. A child who has been referred to residential 
339.25 	treatment for crisis stabilization services in a residential treatment center is not required to 
339.26 	undergo an assessment under this section.
339.27 	(b) The county board shall determine the appropriate level of care for a child when 
339.28 	county-controlled funds are used to pay for the child's residential treatment under this 
339.29 	chapter, including residential treatment provided in a qualified residential treatment program 
339.30 	as defined in section 260C.007, subdivision 26d. When a county board does not have 
339.31 	responsibility for a child's placement and the child is enrolled in a prepaid health program 
339.32 	under section 256B.69, the enrolled child's contracted health plan must determine the 
339.33 	appropriate level of care for the child. When Indian Health Services funds or funds of a 
339.34 	tribally owned facility funded under the Indian Self-Determination and Education Assistance 
340.1 	Act, Public Law 93-638, are used for the child, the Indian Health Services or 638 tribal 
340.2 	health facility must determine the appropriate level of care for the child. When more than 
340.3 	one entity bears responsibility for a child's coverage, the entities shall coordinate level of 
340.4 	care determination activities for the child to the extent possible.
340.5 	(c) The child's level of care determination shall determine whether the proposed treatment:
340.6 	(1) is necessary;
340.7 	(2) is appropriate to the child's individual treatment needs;
340.8 	(3) cannot be effectively provided in the child's home; and
340.9 	(4) provides a length of stay as short as possible consistent with the individual child's 
340.10 	needs.
340.11 	(d) When a level of care determination is conducted, the county board or other entity 
340.12 	may not determine that a screening of a child, referral, or admission to a residential treatment 
340.13 	facility is not appropriate solely because services were not first provided to the child in a 
340.14 	less restrictive setting and the child failed to make progress toward or meet treatment goals 
340.15 	in the less restrictive setting. The level of care determination must be based on a diagnostic 
340.16 	assessment of a child that evaluates the child's family, school, and community living 
340.17 	situations; and an assessment of the child's need for care out of the home using a validated 
340.18 	tool which assesses a child's functional status and assigns an appropriate level of care to the 
340.19 	child. The validated tool must be approved by the commissioner of human services and 
340.20 	may be the validated tool approved for the child's assessment under section 260C.704 if the 
340.21 	juvenile treatment screening team recommended placement of the child in a qualified 
340.22 	residential treatment program. If a diagnostic assessment has been completed by a mental 
340.23 	health professional within the past 180 days, a new diagnostic assessment need not be 
340.24 	completed unless in the opinion of the current treating mental health professional the child's 
340.25 	mental health status has changed markedly since the assessment was completed. The child's 
340.26 	parent shall be notified if an assessment will not be completed and of the reasons. A copy 
340.27 	of the notice shall be placed in the child's file. Recommendations developed as part of the 
340.28 	level of care determination process shall include specific community services needed by 
340.29 	the child and, if appropriate, the child's family, and shall indicate whether these services 
340.30 	are available and accessible to the child and the child's family. The child and the child's 
340.31 	family must be invited to any meeting where the level of care determination is discussed 
340.32 	and decisions regarding residential treatment are made. The child and the child's family 
340.33 	may invite other relatives, friends, or advocates to attend these meetings.
341.1 	(e) During the level of care determination process, the child, child's family, or child's 
341.2 	legal representative, as appropriate, must be informed of the child's eligibility for case 
341.3 	management services and family community support services and that an individual family 
341.4 	community support plan is being developed by the case manager, if assigned.
341.5 	(f) The level of care determination, placement decision, and recommendations for mental 
341.6 	health services must be documented in the child's record and made available to the child's 
341.7 	family, as appropriate.

341.8 	Sec. 42. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
341.9 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
341.10 	make grants from available appropriations to assist:
341.11 	(1) counties;
341.12 	(2) Indian tribes;
341.13 	(3) children's collaboratives under section 142D.15 or 245.493; or
341.14 	(4) mental health service providers.
341.15 	(b) The following services are eligible for grants under this section:
341.16 	(1) services to children with emotional disturbances mental illness as defined in section 
341.17 	245.4871, subdivision 15, and their families;
341.18 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
341.19 	age 21 and their families;
341.20 	(3) respite care services for children with emotional disturbances mental illness or severe 
341.21 	emotional disturbances serious mental illness who are at risk of residential treatment or 
341.22 	hospitalization,; who are already in out-of-home placement residential treatment, therapeutic 
341.23 	foster care, or in family foster settings as defined in chapter 142B and at risk of change in 
341.24 	out-of-home placement foster care or placement in a residential facility or other higher level 
341.25 	of care,; who have utilized crisis services or emergency room services,; or who have 
341.26 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
341.27 	care services are defined under subdivision 4. A child is not required to have case 
341.28 	management services to receive respite care services. Counties must work to provide access 
341.29 	to regularly scheduled respite care;
341.30 	(4) children's mental health crisis services;
341.31 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
342.1 	(6) mental health services for people from cultural and ethnic minorities, including 
342.2 	supervision of clinical trainees who are Black, indigenous, or people of color;
342.3 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
342.4 	(8) services to promote and develop the capacity of providers to use evidence-based 
342.5 	practices in providing children's mental health services;
342.6 	(9) school-linked mental health services under section 245.4901;
342.7 	(10) building evidence-based mental health intervention capacity for children birth to 
342.8 	age five;
342.9 	(11) suicide prevention and counseling services that use text messaging statewide;
342.10 	(12) mental health first aid training;
342.11 	(13) training for parents, collaborative partners, and mental health providers on the 
342.12 	impact of adverse childhood experiences and trauma and development of an interactive 
342.13 	website to share information and strategies to promote resilience and prevent trauma;
342.14 	(14) transition age services to develop or expand mental health treatment and supports 
342.15 	for adolescents and young adults 26 years of age or younger;
342.16 	(15) early childhood mental health consultation;
342.17 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
342.18 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
342.19 	psychosis;
342.20 	(17) psychiatric consultation for primary care practitioners; and
342.21 	(18) providers to begin operations and meet program requirements when establishing a 
342.22 	new children's mental health program. These may be start-up grants.
342.23 	(c) Services under paragraph (b) must be designed to help each child to function and 
342.24 	remain with the child's family in the community and delivered consistent with the child's 
342.25 	treatment plan. Transition services to eligible young adults under this paragraph must be 
342.26 	designed to foster independent living in the community.
342.27 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
342.28 	reimbursement sources, if applicable.
342.29 	(e) The commissioner may establish and design a pilot program to expand the mobile 
342.30 	response and stabilization services model for children, youth, and families. The commissioner 
342.31 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
343.1 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
343.2 	amendment to scale the model statewide.

343.3 	Sec. 43. Minnesota Statutes 2024, section 245.4907, subdivision 2, is amended to read:
343.4 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
343.5 	employs a mental health certified peer family specialist qualified under section 245I.04, 
343.6 	subdivision 12, and that provides services to families who have a child:
343.7 	(1) with an emotional disturbance mental illness or severe emotional disturbance serious 
343.8 	mental illness under chapter 245;
343.9 	(2) receiving inpatient hospitalization under section 256B.0625, subdivision 1;
343.10 	(3) admitted to a residential treatment facility under section 245.4882;
343.11 	(4) receiving children's intensive behavioral health services under section 256B.0946;
343.12 	(5) receiving day treatment or children's therapeutic services and supports under section 
343.13 	256B.0943; or
343.14 	(6) receiving crisis response services under section 256B.0624.

343.15 	Sec. 44. Minnesota Statutes 2024, section 245.491, subdivision 2, is amended to read:
343.16 		Subd. 2.Purpose. The legislature finds that children with mental illnesses or emotional 
343.17 	or behavioral disturbances or who are at risk of suffering such disturbances often require 
343.18 	services from multiple service systems including mental health, social services, education, 
343.19 	corrections, juvenile court, health, and employment and economic development. In order 
343.20 	to better meet the needs of these children, it is the intent of the legislature to establish an 
343.21 	integrated children's mental health service system that:
343.22 	(1) allows local service decision makers to draw funding from a single local source so 
343.23 	that funds follow clients and eliminates the need to match clients, funds, services, and 
343.24 	provider eligibilities;
343.25 	(2) creates a local pool of state, local, and private funds to procure a greater medical 
343.26 	assistance federal financial participation;
343.27 	(3) improves the efficiency of use of existing resources;
343.28 	(4) minimizes or eliminates the incentives for cost and risk shifting; and
343.29 	(5) increases the incentives for earlier identification and intervention.
344.1 	The children's mental health integrated fund established under sections 245.491 to 245.495
344.2 	must be used to develop and support this integrated mental health service system. In 
344.3 	developing this integrated service system, it is not the intent of the legislature to limit any 
344.4 	rights available to children and their families through existing federal and state laws.

344.5 	Sec. 45. Minnesota Statutes 2024, section 245.492, subdivision 3, is amended to read:
344.6 		Subd. 3.Children with emotional or behavioral disturbances. "Children with 
344.7 	emotional or behavioral disturbances" includes children with emotional disturbances mental 
344.8 	illnesses as defined in section 245.4871, subdivision 15, and children with emotional or 
344.9 	behavioral disorders as defined in Minnesota Rules, part 3525.1329, subpart 1.

344.10 	Sec. 46. Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:
344.11 		Subd. 2a.Subcommittee on Children's Mental Health. The State Advisory Council 
344.12 	on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental 
344.13 	Health. The subcommittee must make recommendations to the advisory council on policies, 
344.14 	laws, regulations, and services relating to children's mental health. Members of the 
344.15 	subcommittee must include:
344.16 	(1) the commissioners or designees of the commissioners of the Departments of Human 
344.17 	Services, Health, Education, State Planning, and Corrections;
344.18 	(2) a designee of the Direct Care and Treatment executive board;
344.19 	(3) the commissioner of commerce or a designee of the commissioner who is 
344.20 	knowledgeable about medical insurance issues;
344.21 	(4) at least one representative of an advocacy group for children with emotional 
344.22 	disturbances mental illnesses;
344.23 	(5) providers of children's mental health services, including at least one provider of 
344.24 	services to preadolescent children, one provider of services to adolescents, and one 
344.25 	hospital-based provider;
344.26 	(6) parents of children who have emotional disturbances mental illnesses;
344.27 	(7) a present or former consumer of adolescent mental health services;
344.28 	(8) educators currently working with emotionally disturbed children with mental illnesses;
344.29 	(9) people knowledgeable about the needs of emotionally disturbed children with mental 
344.30 	illnesses of minority races and cultures;
345.1 	(10) people experienced in working with emotionally disturbed children with mental 
345.2 	illnesses who have committed status offenses;
345.3 	(11) members of the advisory council;
345.4 	(12) one person from the local corrections department and one representative of the 
345.5 	Minnesota District Judges Association Juvenile Committee; and
345.6 	(13) county commissioners and social services agency representatives.
345.7 	The chair of the advisory council shall appoint subcommittee members described in 
345.8 	clauses (4) to (12) through the process established in section 15.0597. The chair shall appoint 
345.9 	members to ensure a geographical balance on the subcommittee. Terms, compensation, 
345.10 	removal, and filling of vacancies are governed by subdivision 1, except that terms of 
345.11 	subcommittee members who are also members of the advisory council are coterminous with 
345.12 	their terms on the advisory council. The subcommittee shall meet at the call of the 
345.13 	subcommittee chair who is elected by the subcommittee from among its members. The 
345.14 	subcommittee expires with the expiration of the advisory council.

345.15 	Sec. 47. Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:
345.16 		Subd. 3.Compensation provisions. (a) If the commissioner of human services is unable 
345.17 	to obtain insurance through ordinary methods for coverage of foster home providers, the 
345.18 	appropriation shall be returned to the general fund and the state shall pay claims subject to 
345.19 	the following limitations.
345.20 	(a) (b) Compensation shall be provided only for injuries, damage, or actions set forth in 
345.21 	subdivision 1.
345.22 	(b) (c) Compensation shall be subject to the conditions and exclusions set forth in 
345.23 	subdivision 2.
345.24 	(c) (d) The state shall provide compensation for bodily injury, property damage, or 
345.25 	personal injury resulting from the foster home providers activities as a foster home provider 
345.26 	while the foster child or adult is in the care, custody, and control of the foster home provider 
345.27 	in an amount not to exceed $250,000 for each occurrence.
345.28 	(d) (e) The state shall provide compensation for damage or destruction of property caused 
345.29 	or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.
345.30 	(e) (f) The compensation in paragraphs (c) and (d) and (e) is the total obligation for all 
345.31 	damages because of each occurrence regardless of the number of claims made in connection 
345.32 	with the same occurrence, but compensation applies separately to each foster home. The 
346.1 	state shall have no other responsibility to provide compensation for any injury or loss caused 
346.2 	or sustained by any foster home provider or foster child or foster adult.
346.3 	(g) This coverage is extended as a benefit to foster home providers to encourage care 
346.4 	of persons who need out-of-home the providers' care. Nothing in this section shall be 
346.5 	construed to mean that foster home providers are agents or employees of the state nor does 
346.6 	the state accept any responsibility for the selection, monitoring, supervision, or control of 
346.7 	foster home providers which is exclusively the responsibility of the counties which shall 
346.8 	regulate foster home providers in the manner set forth in the rules of the commissioner of 
346.9 	human services.

346.10 	Sec. 48. Minnesota Statutes 2024, section 245.826, is amended to read:
346.11 	245.826 USE OF RESTRICTIVE TECHNIQUES AND PROCEDURES IN 
346.12 	FACILITIES SERVING EMOTIONALLY DISTURBED CHILDREN WITH 
346.13 	MENTAL ILLNESSES.
346.14 	When amending rules governing facilities serving emotionally disturbed children with 
346.15 	mental illnesses that are licensed under section 245A.09 and Minnesota Rules, parts 
346.16 	2960.0510 to 2960.0530 and 2960.0580 to 2960.0700, the commissioner of human services 
346.17 	shall include provisions governing the use of restrictive techniques and procedures. No 
346.18 	provision of these rules may encourage or require the use of restrictive techniques and 
346.19 	procedures. The rules must prohibit: (1) the application of certain restrictive techniques or 
346.20 	procedures in facilities, except as authorized in the child's case plan and monitored by the 
346.21 	county caseworker responsible for the child; (2) the use of restrictive techniques or procedures 
346.22 	that restrict the clients' normal access to nutritious diet, drinking water, adequate ventilation, 
346.23 	necessary medical care, ordinary hygiene facilities, normal sleeping conditions, and necessary 
346.24 	clothing; and (3) the use of corporal punishment. The rule may specify other restrictive 
346.25 	techniques and procedures and the specific conditions under which permitted techniques 
346.26 	and procedures are to be carried out.

346.27 	Sec. 49. Minnesota Statutes 2024, section 245.91, subdivision 2, is amended to read:
346.28 		Subd. 2.Agency. "Agency" means the divisions, officials, or employees of the state 
346.29 	Departments of Human Services, Direct Care and Treatment, Health, and Education, and 
346.30 	of local school districts and designated county social service agencies as defined in section 
346.31 	256G.02, subdivision 7, that are engaged in monitoring, providing, or regulating services 
346.32 	or treatment for mental illness, developmental disability, or substance use disorder, or 
346.33 	emotional disturbance.

347.1 	Sec. 50. Minnesota Statutes 2024, section 245.91, subdivision 4, is amended to read:
347.2 		Subd. 4.Facility or program. "Facility" or "program" means a nonresidential or 
347.3 	residential program as defined in section 245A.02, subdivisions 10 and 14, and any agency, 
347.4 	facility, or program that provides services or treatment for mental illness, developmental 
347.5 	disability, or substance use disorder, or emotional disturbance that is required to be licensed, 
347.6 	certified, or registered by the commissioner of human services, health, or education; a sober 
347.7 	home as defined in section 254B.01, subdivision 11; peer recovery support services provided 
347.8 	by a recovery community organization as defined in section 254B.01, subdivision 8; and 
347.9 	an acute care inpatient facility that provides services or treatment for mental illness, 
347.10 	developmental disability, or substance use disorder, or emotional disturbance.

347.11 	Sec. 51. Minnesota Statutes 2024, section 245.92, is amended to read:
347.12 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
347.13 	FUNCTION.
347.14 	The ombudsman for persons receiving services or treatment for mental illness, 
347.15 	developmental disability, or substance use disorder, or emotional disturbance shall promote 
347.16 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
347.17 	ombudsman may gather information and data about decisions, acts, and other matters of an 
347.18 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
347.19 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman is 
347.20 	appointed by the governor, serves in the unclassified service, and may be removed only for 
347.21 	just cause. The ombudsman must be selected without regard to political affiliation and must 
347.22 	be a person who has knowledge and experience concerning the treatment, needs, and rights 
347.23 	of clients, and who is highly competent and qualified. No person may serve as ombudsman 
347.24 	while holding another public office.

347.25 	Sec. 52. Minnesota Statutes 2024, section 245.94, subdivision 1, is amended to read:
347.26 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
347.27 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
347.28 	not levy a complaint fee.
347.29 	(b) The ombudsman is a health oversight agency as defined in Code of Federal 
347.30 	Regulations, title 45, section 164.501. The ombudsman may access patient records according 
347.31 	to Code of Federal Regulations, title 42, section 2.53. For purposes of this paragraph, 
347.32 	"records" has the meaning given in Code of Federal Regulations, title 42, section 
347.33 	2.53(a)(1)(i).
348.1 	(c) The ombudsman may mediate or advocate on behalf of a client.
348.2 	(d) The ombudsman may investigate the quality of services provided to clients and 
348.3 	determine the extent to which quality assurance mechanisms within state and county 
348.4 	government work to promote the health, safety, and welfare of clients.
348.5 	(e) At the request of a client, or upon receiving a complaint or other information affording 
348.6 	reasonable grounds to believe that the rights of one or more clients who may not be capable 
348.7 	of requesting assistance have been adversely affected, the ombudsman may gather 
348.8 	information and data about and analyze, on behalf of the client, the actions of an agency, 
348.9 	facility, or program.
348.10 	(f) The ombudsman may gather, on behalf of one or more clients, records of an agency, 
348.11 	facility, or program, or records related to clinical drug trials from the University of Minnesota 
348.12 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
348.13 	ombudsman's authority. If the records are private and the client is capable of providing 
348.14 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is not 
348.15 	required to obtain consent for access to private data on clients with developmental disabilities 
348.16 	and individuals served by the Minnesota Sex Offender Program. The ombudsman may also 
348.17 	take photographic or videographic evidence while reviewing the actions of an agency, 
348.18 	facility, or program, with the consent of the client. The ombudsman is not required to obtain 
348.19 	consent for access to private data on decedents who were receiving services for mental 
348.20 	illness, developmental disability, or substance use disorder, or emotional disturbance. All 
348.21 	data collected, created, received, or maintained by the ombudsman are governed by chapter 
348.22 	13 and other applicable law.
348.23 	(g) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
348.24 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
348.25 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
348.26 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
348.27 	of an investigation possesses the same privileges that a witness possesses in the courts or 
348.28 	under the law of this state. Data obtained from a person under this paragraph are private 
348.29 	data as defined in section 13.02, subdivision 12.
348.30 	(h) The ombudsman may, at reasonable times in the course of conducting a review, enter 
348.31 	and view premises within the control of an agency, facility, or program.
348.32 	(i) The ombudsman may attend Direct Care and Treatment Review Board and Special 
348.33 	Review Board proceedings; proceedings regarding the transfer of clients, as defined in 
348.34 	section 246.50, subdivision 4, between institutions operated by the Direct Care and Treatment 
349.1 	executive board; and, subject to the consent of the affected client, other proceedings affecting 
349.2 	the rights of clients. The ombudsman is not required to obtain consent to attend meetings 
349.3 	or proceedings and have access to private data on clients with developmental disabilities 
349.4 	and individuals served by the Minnesota Sex Offender Program.
349.5 	(j) The ombudsman shall gather data of agencies, facilities, or programs classified as 
349.6 	private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services 
349.7 	provided to clients with developmental disabilities and individuals served by the Minnesota 
349.8 	Sex Offender Program.
349.9 	(k) To avoid duplication and preserve evidence, the ombudsman shall inform relevant 
349.10 	licensing or regulatory officials before undertaking a review of an action of the facility or 
349.11 	program.
349.12 	(l) The Office of Ombudsman shall provide the services of the Civil Commitment 
349.13 	Training and Resource Center.
349.14 	(m) The ombudsman shall monitor the treatment of individuals participating in a 
349.15 	University of Minnesota Department of Psychiatry clinical drug trial and ensure that all 
349.16 	protections for human subjects required by federal law and the Institutional Review Board 
349.17 	are provided.
349.18 	(n) Sections 245.91 to 245.97 are in addition to other provisions of law under which any 
349.19 	other remedy or right is provided.

349.20 	Sec. 53. Minnesota Statutes 2024, section 245A.03, subdivision 2, is amended to read:
349.21 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
349.22 	(1) residential or nonresidential programs that are provided to a person by an individual 
349.23 	who is related;
349.24 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
349.25 	a single related family;
349.26 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
349.27 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
349.28 	functional impairment, or a physical disability;
349.29 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
349.30 	of employment and economic development;
349.31 	(5) programs operated by a public school for children 33 months or older;
350.1 	(6) nonresidential programs primarily for children that provide care or supervision for 
350.2 	periods of less than three hours a day while the child's parent or legal guardian is in the 
350.3 	same building as the nonresidential program or present within another building that is 
350.4 	directly contiguous to the building in which the nonresidential program is located;
350.5 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
350.6 	under section 245A.02;
350.7 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
350.8 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
350.9 	substance use disorder treatment;
350.10 	(9) programs licensed by the commissioner of corrections;
350.11 	(10) recreation programs for children or adults that are operated or approved by a park 
350.12 	and recreation board whose primary purpose is to provide social and recreational activities;
350.13 	(11) noncertified boarding care homes unless they provide services for five or more 
350.14 	persons whose primary diagnosis is mental illness or a developmental disability;
350.15 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
350.16 	programs, and nonresidential programs for children provided for a cumulative total of less 
350.17 	than 30 days in any 12-month period;
350.18 	(13) residential programs for persons with mental illness, that are located in hospitals;
350.19 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
350.20 	4630;
350.21 	(15) mental health outpatient services for adults with mental illness or children with 
350.22 	emotional disturbance mental illness;
350.23 	(16) residential programs serving school-age children whose sole purpose is cultural or 
350.24 	educational exchange, until the commissioner adopts appropriate rules;
350.25 	(17) community support services programs as defined in section 245.462, subdivision 
350.26 	6, and family community support services as defined in section 245.4871, subdivision 17;
350.27 	(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
350.28 	(19) substance use disorder treatment activities of licensed professionals in private 
350.29 	practice as defined in section 245G.01, subdivision 17;
351.1 	(20) consumer-directed community support service funded under the Medicaid waiver 
351.2 	for persons with developmental disabilities when the individual who provided the service 
351.3 	is:
351.4 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
351.5 	a fiscal agent, fiscal intermediary, or employer of record; and
351.6 	(ii) not otherwise under the control of a residential or nonresidential program that is 
351.7 	required to be licensed under this chapter when providing the service;
351.8 	(21) a county that is an eligible vendor under section 254B.05 to provide care coordination 
351.9 	and comprehensive assessment services;
351.10 	(22) a recovery community organization that is an eligible vendor under section 254B.05 
351.11 	to provide peer recovery support services; or
351.12 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
351.13 	142B.
351.14 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
351.15 	building in which a nonresidential program is located if it shares a common wall with the 
351.16 	building in which the nonresidential program is located or is attached to that building by 
351.17 	skyway, tunnel, atrium, or common roof.
351.18 	(c) Except for the home and community-based services identified in section 245D.03, 
351.19 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
351.20 	provided and funded according to an approved federal waiver plan where licensure is 
351.21 	specifically identified as not being a condition for the services and funding.

351.22 	Sec. 54. Minnesota Statutes 2024, section 245A.26, subdivision 1, is amended to read:
351.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
351.24 	subdivision have the meanings given.
351.25 	(b) "Clinical trainee" means a staff person who is qualified under section 245I.04, 
351.26 	subdivision 6.
351.27 	(c) "License holder" means an individual, organization, or government entity that was 
351.28 	issued a license by the commissioner of human services under this chapter for residential 
351.29 	mental health treatment for children with emotional disturbance mental illness according 
351.30 	to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 2960.0700, or shelter 
351.31 	care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 and 2960.0510
351.32 	to 2960.0530.
352.1 	(d) "Mental health professional" means an individual who is qualified under section 
352.2 	245I.04, subdivision 2.

352.3 	Sec. 55. Minnesota Statutes 2024, section 245A.26, subdivision 2, is amended to read:
352.4 		Subd. 2.Scope and applicability. (a) This section establishes additional licensing 
352.5 	requirements for a children's residential facility to provide children's residential crisis 
352.6 	stabilization services to a client who is experiencing a mental health crisis and is in need of 
352.7 	residential treatment services.
352.8 	(b) A children's residential facility may provide residential crisis stabilization services 
352.9 	only if the facility is licensed to provide:
352.10 	(1) residential mental health treatment for children with emotional disturbance mental 
352.11 	illness according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 
352.12 	2960.0700; or
352.13 	(2) shelter care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 
352.14 	and 2960.0510 to 2960.0530.
352.15 	(c) If a client receives residential crisis stabilization services for 35 days or fewer in a 
352.16 	facility licensed according to paragraph (b), clause (1), the facility is not required to complete 
352.17 	a diagnostic assessment or treatment plan under Minnesota Rules, part 2960.0180, subpart 
352.18 	2, and part 2960.0600.
352.19 	(d) If a client receives residential crisis stabilization services for 35 days or fewer in a 
352.20 	facility licensed according to paragraph (b), clause (2), the facility is not required to develop 
352.21 	a plan for meeting the client's immediate needs under Minnesota Rules, part 2960.0520, 
352.22 	subpart 3.

352.23 	Sec. 56. Minnesota Statutes 2024, section 246C.12, subdivision 4, is amended to read:
352.24 		Subd. 4.Staff safety training. The executive board shall require all staff in mental 
352.25 	health and support units at regional treatment centers who have contact with personschildren 
352.26 	or adults with mental illness or severe emotional disturbance to be appropriately trained in 
352.27 	violence reduction and violence prevention and shall establish criteria for such training. 
352.28 	Training programs shall be developed with input from consumer advocacy organizations 
352.29 	and shall employ violence prevention techniques as preferable to physical interaction.

353.1 	Sec. 57. Minnesota Statutes 2024, section 252.27, subdivision 1, is amended to read:
353.2 		Subdivision 1.County of financial responsibility. Whenever any child who has a 
353.3 	developmental disability, or a physical disability or emotional disturbance mental illness is 
353.4 	in 24-hour care outside the home including respite care, in a facility licensed by the 
353.5 	commissioner of human services, the cost of services shall be paid by the county of financial 
353.6 	responsibility determined pursuant to chapter 256G. If the child's parents or guardians do 
353.7 	not reside in this state, the cost shall be paid by the responsible governmental agency in the 
353.8 	state from which the child came, by the parents or guardians of the child if they are financially 
353.9 	able, or, if no other payment source is available, by the commissioner of human services.

353.10 	Sec. 58. Minnesota Statutes 2024, section 256B.02, subdivision 11, is amended to read:
353.11 		Subd. 11.Related condition. "Related condition" means a condition:
353.12 	(1) that is found to be closely related to a developmental disability, including but not 
353.13 	limited to cerebral palsy, epilepsy, autism, fetal alcohol spectrum disorder, and Prader-Willi 
353.14 	syndrome; and
353.15 	(2) that meets all of the following criteria:
353.16 	(i) is severe and chronic;
353.17 	(ii) results in impairment of general intellectual functioning or adaptive behavior similar 
353.18 	to that of persons with developmental disabilities;
353.19 	(iii) requires treatment or services similar to those required for persons with 
353.20 	developmental disabilities;
353.21 	(iv) is manifested before the person reaches 22 years of age;
353.22 	(v) is likely to continue indefinitely;
353.23 	(vi) results in substantial functional limitations in three or more of the following areas 
353.24 	of major life activity:
353.25 	(A) self-care;
353.26 	(B) understanding and use of language;
353.27 	(C) learning;
353.28 	(D) mobility;
353.29 	(E) self-direction; or
353.30 	(F) capacity for independent living; and
354.1 	(vii) is not attributable to mental illness as defined in section 245.462, subdivision 20, 
354.2 	or an emotional disturbance as defined in section245.4871, subdivision 15. For purposes 
354.3 	of this item, notwithstanding section 245.462, subdivision 20, or 245.4871, subdivision 15, 
354.4 	"mental illness" does not include autism or other pervasive developmental disorders.

354.5 	Sec. 59. Minnesota Statutes 2024, section 256B.055, subdivision 12, is amended to read:
354.6 		Subd. 12.Children with disabilities. (a) A person is eligible for medical assistance if 
354.7 	the person is under age 19 and qualifies as a disabled individual under United States Code, 
354.8 	title 42, section 1382c(a), and would be eligible for medical assistance under the state plan 
354.9 	if residing in a medical institution, and the child requires a level of care provided in a hospital, 
354.10 	nursing facility, or intermediate care facility for persons with developmental disabilities, 
354.11 	for whom home care is appropriate, provided that the cost to medical assistance under this 
354.12 	section is not more than the amount that medical assistance would pay for if the child resides 
354.13 	in an institution. After the child is determined to be eligible under this section, the 
354.14 	commissioner shall review the child's disability under United States Code, title 42, section 
354.15 	1382c(a) and level of care defined under this section no more often than annually and may 
354.16 	elect, based on the recommendation of health care professionals under contract with the 
354.17 	state medical review team, to extend the review of disability and level of care up to a 
354.18 	maximum of four years. The commissioner's decision on the frequency of continuing review 
354.19 	of disability and level of care is not subject to administrative appeal under section 256.045. 
354.20 	The county agency shall send a notice of disability review to the enrollee six months prior 
354.21 	to the date the recertification of disability is due. Nothing in this subdivision shall be 
354.22 	construed as affecting other redeterminations of medical assistance eligibility under this 
354.23 	chapter and annual cost-effective reviews under this section.
354.24 	(b) For purposes of this subdivision, "hospital" means an institution as defined in section 
354.25 	144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 
354.26 	licensed pursuant to sections 144.50 to 144.58. For purposes of this subdivision, a child 
354.27 	requires a level of care provided in a hospital if the child is determined by the commissioner 
354.28 	to need an extensive array of health services, including mental health services, for an 
354.29 	undetermined period of time, whose health condition requires frequent monitoring and 
354.30 	treatment by a health care professional or by a person supervised by a health care 
354.31 	professional, who would reside in a hospital or require frequent hospitalization if these 
354.32 	services were not provided, and the daily care needs are more complex than a nursing facility 
354.33 	level of care.
355.1 	A child with serious emotional disturbance mental illness requires a level of care provided 
355.2 	in a hospital if the commissioner determines that the individual requires 24-hour supervision 
355.3 	because the person exhibits recurrent or frequent suicidal or homicidal ideation or behavior, 
355.4 	recurrent or frequent psychosomatic disorders or somatopsychic disorders that may become 
355.5 	life threatening, recurrent or frequent severe socially unacceptable behavior associated with 
355.6 	psychiatric disorder, ongoing and chronic psychosis or severe, ongoing and chronic 
355.7 	developmental problems requiring continuous skilled observation, or severe disabling 
355.8 	symptoms for which office-centered outpatient treatment is not adequate, and which overall 
355.9 	severely impact the individual's ability to function.
355.10 	(c) For purposes of this subdivision, "nursing facility" means a facility which provides 
355.11 	nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections 
355.12 	144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is 
355.13 	in need of special treatments provided or supervised by a licensed nurse; or has unpredictable 
355.14 	episodes of active disease processes requiring immediate judgment by a licensed nurse. For 
355.15 	purposes of this subdivision, a child requires the level of care provided in a nursing facility 
355.16 	if the child is determined by the commissioner to meet the requirements of the preadmission 
355.17 	screening assessment document under section 256B.0911, adjusted to address age-appropriate 
355.18 	standards for children age 18 and under.
355.19 	(d) For purposes of this subdivision, "intermediate care facility for persons with 
355.20 	developmental disabilities" or "ICF/DD" means a program licensed to provide services to 
355.21 	persons with developmental disabilities under section 252.28, and chapter 245A, and a 
355.22 	physical plant licensed as a supervised living facility under chapter 144, which together are 
355.23 	certified by the Minnesota Department of Health as meeting the standards in Code of Federal 
355.24 	Regulations, title 42, part 483, for an intermediate care facility which provides services for 
355.25 	persons with developmental disabilities who require 24-hour supervision and active treatment 
355.26 	for medical, behavioral, or habilitation needs. For purposes of this subdivision, a child 
355.27 	requires a level of care provided in an ICF/DD if the commissioner finds that the child has 
355.28 	a developmental disability in accordance with section 256B.092, is in need of a 24-hour 
355.29 	plan of care and active treatment similar to persons with developmental disabilities, and 
355.30 	there is a reasonable indication that the child will need ICF/DD services.
355.31 	(e) For purposes of this subdivision, a person requires the level of care provided in a 
355.32 	nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental 
355.33 	health treatment because of specific symptoms or functional impairments associated with 
355.34 	a serious mental illness or disorder diagnosis, which meet severity criteria for mental health 
356.1 	established by the commissioner and published in March 1997 as the Minnesota Mental 
356.2 	Health Level of Care for Children and Adolescents with Severe Emotional Disorders.
356.3 	(f) The determination of the level of care needed by the child shall be made by the 
356.4 	commissioner based on information supplied to the commissioner by (1) the parent or 
356.5 	guardian, (2) the child's physician or physicians, advanced practice registered nurse or 
356.6 	advanced practice registered nurses, or physician assistant or physician assistants, and (3) 
356.7 	other professionals as requested by the commissioner. The commissioner shall establish a 
356.8 	screening team to conduct the level of care determinations according to this subdivision.
356.9 	(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 
356.10 	must assess the case to determine whether:
356.11 	(1) the child qualifies as a disabled individual under United States Code, title 42, section 
356.12 	1382c(a), and would be eligible for medical assistance if residing in a medical institution; 
356.13 	and
356.14 	(2) the cost of medical assistance services for the child, if eligible under this subdivision, 
356.15 	would not be more than the cost to medical assistance if the child resides in a medical 
356.16 	institution to be determined as follows:
356.17 	(i) for a child who requires a level of care provided in an ICF/DD, the cost of care for 
356.18 	the child in an institution shall be determined using the average payment rate established 
356.19 	for the regional treatment centers that are certified as ICF's/DD;
356.20 	(ii) for a child who requires a level of care provided in an inpatient hospital setting 
356.21 	according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 
356.22 	Rules, part 9505.3520, items F and G; and
356.23 	(iii) for a child who requires a level of care provided in a nursing facility according to 
356.24 	paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota Rules, 
356.25 	part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates 
356.26 	which would be paid for children under age 16. The commissioner may authorize an amount 
356.27 	up to the amount medical assistance would pay for a child referred to the commissioner by 
356.28 	the preadmission screening team under section 256B.0911.

356.29 	Sec. 60. Minnesota Statutes 2024, section 256B.0616, subdivision 1, is amended to read:
356.30 		Subdivision 1.Scope. Medical assistance covers mental health certified family peer 
356.31 	specialists services, as established in subdivision 2, subject to federal approval, if provided 
356.32 	to recipients who have an emotional disturbance mental illness or severe emotional 
356.33 	disturbance serious mental illness under chapter 245, and are provided by a mental health 
357.1 	certified family peer specialist who has completed the training under subdivision 5 and is 
357.2 	qualified according to section 245I.04, subdivision 12. A family peer specialist cannot 
357.3 	provide services to the peer specialist's family.

357.4 	Sec. 61. Minnesota Statutes 2024, section 256B.0757, subdivision 2, is amended to read:
357.5 		Subd. 2.Eligible individual. (a) The commissioner may elect to develop health home 
357.6 	models in accordance with United States Code, title 42, section 1396w-4.
357.7 	(b) An individual is eligible for health home services under this section if the individual 
357.8 	is eligible for medical assistance under this chapter and has a condition that meets the 
357.9 	definition of mental illness as described in section 245.462, subdivision 20, paragraph (a), 
357.10 	or emotional disturbance as defined in section245.4871, subdivision 15, clause (2). The 
357.11 	commissioner shall establish criteria for determining continued eligibility.

357.12 	Sec. 62. Minnesota Statutes 2024, section 256B.0943, subdivision 1, is amended to read:
357.13 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
357.14 	the meanings given them.
357.15 	(b) "Children's therapeutic services and supports" means the flexible package of mental 
357.16 	health services for children who require varying therapeutic and rehabilitative levels of 
357.17 	intervention to treat a diagnosed emotional disturbance, as defined in section 245.4871, 
357.18 	subdivision 15, or a diagnosed mental illness, as defined in section 245.462, subdivision 
357.19 	20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered 
357.20 	using various treatment modalities and combinations of services designed to reach treatment 
357.21 	outcomes identified in the individual treatment plan.
357.22 	(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, 
357.23 	subdivision 6.
357.24 	(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
357.25 	(e) "Culturally competent provider" means a provider who understands and can utilize 
357.26 	to a client's benefit the client's culture when providing services to the client. A provider 
357.27 	may be culturally competent because the provider is of the same cultural or ethnic group 
357.28 	as the client or the provider has developed the knowledge and skills through training and 
357.29 	experience to provide services to culturally diverse clients.
357.30 	(f) "Day treatment program" for children means a site-based structured mental health 
357.31 	program consisting of psychotherapy for three or more individuals and individual or group 
358.1 	skills training provided by a team, under the treatment supervision of a mental health 
358.2 	professional.
358.3 	(g) "Direct service time" means the time that a mental health professional, clinical trainee, 
358.4 	mental health practitioner, or mental health behavioral aide spends face-to-face with a client 
358.5 	and the client's family or providing covered services through telehealth as defined under 
358.6 	section 256B.0625, subdivision 3b. Direct service time includes time in which the provider 
358.7 	obtains a client's history, develops a client's treatment plan, records individual treatment 
358.8 	outcomes, or provides service components of children's therapeutic services and supports. 
358.9 	Direct service time does not include time doing work before and after providing direct 
358.10 	services, including scheduling or maintaining clinical records.
358.11 	(h) "Direction of mental health behavioral aide" means the activities of a mental health 
358.12 	professional, clinical trainee, or mental health practitioner in guiding the mental health 
358.13 	behavioral aide in providing services to a client. The direction of a mental health behavioral 
358.14 	aide must be based on the client's individual treatment plan and meet the requirements in 
358.15 	subdivision 6, paragraph (b), clause (7).
358.16 	(i) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
358.17 	(j) (i) "Individual treatment plan" means the plan described in section 245I.10, 
358.18 	subdivisions 7 and 8.
358.19 	(k) (j) "Mental health behavioral aide services" means medically necessary one-on-one 
358.20 	activities performed by a mental health behavioral aide qualified according to section 
358.21 	245I.04, subdivision 16, to assist a child retain or generalize psychosocial skills as previously 
358.22 	trained by a mental health professional, clinical trainee, or mental health practitioner and 
358.23 	as described in the child's individual treatment plan and individual behavior plan. Activities 
358.24 	involve working directly with the child or child's family as provided in subdivision 9, 
358.25 	paragraph (b), clause (4).
358.26 	(l) (k) "Mental health certified family peer specialist" means a staff person who is 
358.27 	qualified according to section 245I.04, subdivision 12.
358.28 	(m) (l) "Mental health practitioner" means a staff person who is qualified according to 
358.29 	section 245I.04, subdivision 4.
358.30 	(n) (m) "Mental health professional" means a staff person who is qualified according to 
358.31 	section 245I.04, subdivision 2.
358.32 	(o) (n) "Mental health service plan development" includes:
358.33 	(1) development and revision of a child's individual treatment plan; and
359.1 	(2) administering and reporting standardized outcome measurements approved by the 
359.2 	commissioner, as periodically needed to evaluate the effectiveness of treatment.
359.3 	(p) (o) "Mental illness," for persons at least age 18 but under age 21, has the meaning 
359.4 	given in section 245.462, subdivision 20, paragraph (a), for persons at least 18 years of age 
359.5 	but under 21 years of age, and has the meaning given in section 245.4871, subdivision 15, 
359.6 	for children under 18 years of age.
359.7 	(q) (p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 
359.8 	11.
359.9 	(r) (q) "Rehabilitative services" or "psychiatric rehabilitation services" means 
359.10 	interventions to: (1) restore a child or adolescent to an age-appropriate developmental 
359.11 	trajectory that had been disrupted by a psychiatric illness; or (2) enable the child to 
359.12 	self-monitor, compensate for, cope with, counteract, or replace psychosocial skills deficits 
359.13 	or maladaptive skills acquired over the course of a psychiatric illness. Psychiatric 
359.14 	rehabilitation services for children combine coordinated psychotherapy to address internal 
359.15 	psychological, emotional, and intellectual processing deficits, and skills training to restore 
359.16 	personal and social functioning. Psychiatric rehabilitation services establish a progressive 
359.17 	series of goals with each achievement building upon a prior achievement.
359.18 	(s) (r) "Skills training" means individual, family, or group training, delivered by or under 
359.19 	the supervision of a mental health professional, designed to facilitate the acquisition of 
359.20 	psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate 
359.21 	developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child 
359.22 	to self-monitor, compensate for, cope with, counteract, or replace skills deficits or 
359.23 	maladaptive skills acquired over the course of a psychiatric illness. Skills training is subject 
359.24 	to the service delivery requirements under subdivision 9, paragraph (b), clause (2).
359.25 	(t) (s) "Standard diagnostic assessment" means the assessment described in section 
359.26 	245I.10, subdivision 6.
359.27 	(u) (t) "Treatment supervision" means the supervision described in section 245I.06.

359.28 	Sec. 63. Minnesota Statutes 2024, section 256B.0943, subdivision 3, is amended to read:
359.29 		Subd. 3.Determination of client eligibility. (a) A client's eligibility to receive children's 
359.30 	therapeutic services and supports under this section shall be determined based on a standard 
359.31 	diagnostic assessment by a mental health professional or a clinical trainee that is performed 
359.32 	within one year before the initial start of service and updated as required under section 
359.33 	245I.10, subdivision 2. The standard diagnostic assessment must:
360.1 	(1) determine whether a child under age 18 has a diagnosis of emotional disturbance
360.2 	mental illness or, if the person is between the ages of 18 and 21, whether the person has a 
360.3 	mental illness;
360.4 	(2) document children's therapeutic services and supports as medically necessary to 
360.5 	address an identified disability, functional impairment, and the individual client's needs and 
360.6 	goals; and
360.7 	(3) be used in the development of the individual treatment plan.
360.8 	(b) Notwithstanding paragraph (a), a client may be determined to be eligible for up to 
360.9 	five days of day treatment under this section based on a hospital's medical history and 
360.10 	presentation examination of the client.
360.11 	(c) Children's therapeutic services and supports include development and rehabilitative 
360.12 	services that support a child's developmental treatment needs.

360.13 	Sec. 64. Minnesota Statutes 2024, section 256B.0943, subdivision 9, is amended to read:
360.14 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a certified 
360.15 	provider entity must ensure that:
360.16 	(1) the provider's caseload size should reasonably enable the provider to play an active 
360.17 	role in service planning, monitoring, and delivering services to meet the client's and client's 
360.18 	family's needs, as specified in each client's individual treatment plan;
360.19 	(2) site-based programs, including day treatment programs, provide staffing and facilities 
360.20 	to ensure the client's health, safety, and protection of rights, and that the programs are able 
360.21 	to implement each client's individual treatment plan; and
360.22 	(3) a day treatment program is provided to a group of clients by a team under the treatment 
360.23 	supervision of a mental health professional. The day treatment program must be provided 
360.24 	in and by: (i) an outpatient hospital accredited by the Joint Commission on Accreditation 
360.25 	of Health Organizations and licensed under sections 144.50 to 144.55; (ii) a community 
360.26 	mental health center under section 245.62; or (iii) an entity that is certified under subdivision 
360.27 	4 to operate a program that meets the requirements of section 245.4884, subdivision 2, and 
360.28 	Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must stabilize 
360.29 	the client's mental health status while developing and improving the client's independent 
360.30 	living and socialization skills. The goal of the day treatment program must be to reduce or 
360.31 	relieve the effects of mental illness and provide training to enable the client to live in the 
360.32 	community. The remainder of the structured treatment program may include patient and/or 
360.33 	family or group psychotherapy, and individual or group skills training, if included in the 
361.1 	client's individual treatment plan. Day treatment programs are not part of inpatient or 
361.2 	residential treatment services. When a day treatment group that meets the minimum group 
361.3 	size requirement temporarily falls below the minimum group size because of a member's 
361.4 	temporary absence, medical assistance covers a group session conducted for the group 
361.5 	members in attendance. A day treatment program may provide fewer than the minimally 
361.6 	required hours for a particular child during a billing period in which the child is transitioning 
361.7 	into, or out of, the program.
361.8 	(b) To be eligible for medical assistance payment, a provider entity must deliver the 
361.9 	service components of children's therapeutic services and supports in compliance with the 
361.10 	following requirements:
361.11 	(1) psychotherapy to address the child's underlying mental health disorder must be 
361.12 	documented as part of the child's ongoing treatment. A provider must deliver or arrange for 
361.13 	medically necessary psychotherapy unless the child's parent or caregiver chooses not to 
361.14 	receive it or the provider determines that psychotherapy is no longer medically necessary. 
361.15 	When a provider determines that psychotherapy is no longer medically necessary, the 
361.16 	provider must update required documentation, including but not limited to the individual 
361.17 	treatment plan, the child's medical record, or other authorizations, to include the 
361.18 	determination. When a provider determines that a child needs psychotherapy but 
361.19 	psychotherapy cannot be delivered due to a shortage of licensed mental health professionals 
361.20 	in the child's community, the provider must document the lack of access in the child's 
361.21 	medical record;
361.22 	(2) individual, family, or group skills training is subject to the following requirements:
361.23 	(i) a mental health professional, clinical trainee, or mental health practitioner shall provide 
361.24 	skills training;
361.25 	(ii) skills training delivered to a child or the child's family must be targeted to the specific 
361.26 	deficits or maladaptations of the child's mental health disorder and must be prescribed in 
361.27 	the child's individual treatment plan;
361.28 	(iii) group skills training may be provided to multiple recipients who, because of the 
361.29 	nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from 
361.30 	interaction in a group setting, which must be staffed as follows:
361.31 	(A) one mental health professional, clinical trainee, or mental health practitioner must 
361.32 	work with a group of three to eight clients; or
362.1 	(B) any combination of two mental health professionals, clinical trainees, or mental 
362.2 	health practitioners must work with a group of nine to 12 clients;
362.3 	(iv) a mental health professional, clinical trainee, or mental health practitioner must have 
362.4 	taught the psychosocial skill before a mental health behavioral aide may practice that skill 
362.5 	with the client; and
362.6 	(v) for group skills training, when a skills group that meets the minimum group size 
362.7 	requirement temporarily falls below the minimum group size because of a group member's 
362.8 	temporary absence, the provider may conduct the session for the group members in 
362.9 	attendance;
362.10 	(3) crisis planning to a child and family must include development of a written plan that 
362.11 	anticipates the particular factors specific to the child that may precipitate a psychiatric crisis 
362.12 	for the child in the near future. The written plan must document actions that the family 
362.13 	should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for 
362.14 	direct intervention and support services to the child and the child's family. Crisis planning 
362.15 	must include preparing resources designed to address abrupt or substantial changes in the 
362.16 	functioning of the child or the child's family when sudden change in behavior or a loss of 
362.17 	usual coping mechanisms is observed, or the child begins to present a danger to self or 
362.18 	others;
362.19 	(4) mental health behavioral aide services must be medically necessary treatment services, 
362.20 	identified in the child's individual treatment plan.
362.21 	To be eligible for medical assistance payment, mental health behavioral aide services must 
362.22 	be delivered to a child who has been diagnosed with an emotional disturbance or a mental 
362.23 	illness, as provided in subdivision 1, paragraph (a). The mental health behavioral aide must 
362.24 	document the delivery of services in written progress notes. Progress notes must reflect 
362.25 	implementation of the treatment strategies, as performed by the mental health behavioral 
362.26 	aide and the child's responses to the treatment strategies; and
362.27 	(5) mental health service plan development must be performed in consultation with the 
362.28 	child's family and, when appropriate, with other key participants in the child's life by the 
362.29 	child's treating mental health professional or clinical trainee or by a mental health practitioner 
362.30 	and approved by the treating mental health professional. Treatment plan drafting consists 
362.31 	of development, review, and revision by face-to-face or electronic communication. The 
362.32 	provider must document events, including the time spent with the family and other key 
362.33 	participants in the child's life to approve the individual treatment plan. Medical assistance 
362.34 	covers service plan development before completion of the child's individual treatment plan. 
363.1 	Service plan development is covered only if a treatment plan is completed for the child. If 
363.2 	upon review it is determined that a treatment plan was not completed for the child, the 
363.3 	commissioner shall recover the payment for the service plan development.

363.4 	Sec. 65. Minnesota Statutes 2024, section 256B.0943, subdivision 12, is amended to read:
363.5 		Subd. 12.Excluded services. The following services are not eligible for medical 
363.6 	assistance payment as children's therapeutic services and supports:
363.7 	(1) service components of children's therapeutic services and supports simultaneously 
363.8 	provided by more than one provider entity unless prior authorization is obtained;
363.9 	(2) treatment by multiple providers within the same agency at the same clock time, 
363.10 	unless one service is delivered to the child and the other service is delivered to the child's 
363.11 	family or treatment team without the child present;
363.12 	(3) children's therapeutic services and supports provided in violation of medical assistance 
363.13 	policy in Minnesota Rules, part 9505.0220;
363.14 	(4) mental health behavioral aide services provided by a personal care assistant who is 
363.15 	not qualified as a mental health behavioral aide and employed by a certified children's 
363.16 	therapeutic services and supports provider entity;
363.17 	(5) service components of CTSS that are the responsibility of a residential or program 
363.18 	license holder, including foster care providers under the terms of a service agreement or 
363.19 	administrative rules governing licensure; and
363.20 	(6) adjunctive activities that may be offered by a provider entity but are not otherwise 
363.21 	covered by medical assistance, including:
363.22 	(i) a service that is primarily recreation oriented or that is provided in a setting that is 
363.23 	not medically supervised. This includes sports activities, exercise groups, activities such as 
363.24 	craft hours, leisure time, social hours, meal or snack time, trips to community activities, 
363.25 	and tours;
363.26 	(ii) a social or educational service that does not have or cannot reasonably be expected 
363.27 	to have a therapeutic outcome related to the client's emotional disturbance mental illness;
363.28 	(iii) prevention or education programs provided to the community; and
363.29 	(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

364.1 	Sec. 66. Minnesota Statutes 2024, section 256B.0943, subdivision 13, is amended to read:
364.2 		Subd. 13.Exception to excluded services. Notwithstanding subdivision 12, up to 15 
364.3 	hours of children's therapeutic services and supports provided within a six-month period to 
364.4 	a child with severe emotional disturbance serious mental illness who is residing in a hospital; 
364.5 	a residential treatment facility licensed under Minnesota Rules, parts 2960.0580 to 2960.0690; 
364.6 	a psychiatric residential treatment facility under section 256B.0625, subdivision 45a; a 
364.7 	regional treatment center; or other institutional group setting or who is participating in a 
364.8 	program of partial hospitalization are eligible for medical assistance payment if part of the 
364.9 	discharge plan.

364.10 	Sec. 67. Minnesota Statutes 2024, section 256B.0945, subdivision 1, is amended to read:
364.11 		Subdivision 1.Residential services; provider qualifications. (a) Counties must arrange 
364.12 	to provide residential services for children with severe emotional disturbance serious mental 
364.13 	illness according to sections 245.4882, 245.4885, and this section.
364.14 	(b) Services must be provided by a facility that is licensed according to section 245.4882 
364.15 	and administrative rules promulgated thereunder, and under contract with the county.
364.16 	(c) Eligible service costs may be claimed for a facility that is located in a state that 
364.17 	borders Minnesota if:
364.18 	(1) the facility is the closest facility to the child's home, providing the appropriate level 
364.19 	of care; and
364.20 	(2) the commissioner of human services has completed an inspection of the out-of-state 
364.21 	program according to the interagency agreement with the commissioner of corrections under 
364.22 	section 260B.198, subdivision 11, paragraph (b), and the program has been certified by the 
364.23 	commissioner of corrections under section 260B.198, subdivision 11, paragraph (a), to 
364.24 	substantially meet the standards applicable to children's residential mental health treatment 
364.25 	programs under Minnesota Rules, chapter 2960. Nothing in this section requires the 
364.26 	commissioner of human services to enforce the background study requirements under chapter 
364.27 	245C or the requirements related to prevention and investigation of alleged maltreatment 
364.28 	under section 626.557 or chapter 260E. Complaints received by the commissioner of human 
364.29 	services must be referred to the out-of-state licensing authority for possible follow-up.
364.30 	(d) Notwithstanding paragraph (b), eligible service costs may be claimed for an 
364.31 	out-of-state inpatient treatment facility if:
364.32 	(1) the facility specializes in providing mental health services to children who are deaf, 
364.33 	deafblind, or hard-of-hearing and who use American Sign Language as their first language;
365.1 	(2) the facility is licensed by the state in which it is located; and
365.2 	(3) the state in which the facility is located is a member state of the Interstate Compact 
365.3 	on Mental Health.

365.4 	Sec. 68. Minnesota Statutes 2024, section 256B.0946, subdivision 6, is amended to read:
365.5 		Subd. 6.Excluded services. (a) Services in clauses (1) to (7) are not covered under this 
365.6 	section and are not eligible for medical assistance payment as components of children's 
365.7 	intensive behavioral health services, but may be billed separately:
365.8 	(1) inpatient psychiatric hospital treatment;
365.9 	(2) mental health targeted case management;
365.10 	(3) partial hospitalization;
365.11 	(4) medication management;
365.12 	(5) children's mental health day treatment services;
365.13 	(6) crisis response services under section 256B.0624;
365.14 	(7) transportation; and
365.15 	(8) mental health certified family peer specialist services under section 256B.0616.
365.16 	(b) Children receiving intensive behavioral health services are not eligible for medical 
365.17 	assistance reimbursement for the following services while receiving children's intensive 
365.18 	behavioral health services:
365.19 	(1) psychotherapy and skills training components of children's therapeutic services and 
365.20 	supports under section 256B.0943;
365.21 	(2) mental health behavioral aide services as defined in section 256B.0943, subdivision 
365.22 	1, paragraph (l) (j);
365.23 	(3) home and community-based waiver services;
365.24 	(4) mental health residential treatment; and
365.25 	(5) medical assistance room and board rate, as defined in section 256B.056, subdivision 
365.26 	5d.

366.1 	Sec. 69. Minnesota Statutes 2024, section 256B.0947, subdivision 3a, is amended to read:
366.2 		Subd. 3a.Required service components. (a) Intensive nonresidential rehabilitative 
366.3 	mental health services, supports, and ancillary activities that are covered by a single daily 
366.4 	rate per client must include the following, as needed by the individual client:
366.5 	(1) individual, family, and group psychotherapy;
366.6 	(2) individual, family, and group skills training, as defined in section 256B.0943, 
366.7 	subdivision 1, paragraph (u) (r);
366.8 	(3) crisis planning as defined in section 245.4871, subdivision 9a;
366.9 	(4) medication management provided by a physician, an advanced practice registered 
366.10 	nurse with certification in psychiatric and mental health care, or a physician assistant;
366.11 	(5) mental health case management as provided in section 256B.0625, subdivision 20;
366.12 	(6) medication education services as defined in this section;
366.13 	(7) care coordination by a client-specific lead worker assigned by and responsible to the 
366.14 	treatment team;
366.15 	(8) psychoeducation of and consultation and coordination with the client's biological, 
366.16 	adoptive, or foster family and, in the case of a youth living independently, the client's 
366.17 	immediate nonfamilial support network;
366.18 	(9) clinical consultation to a client's employer or school or to other service agencies or 
366.19 	to the courts to assist in managing the mental illness or co-occurring disorder and to develop 
366.20 	client support systems;
366.21 	(10) coordination with, or performance of, crisis intervention and stabilization services 
366.22 	as defined in section 256B.0624;
366.23 	(11) transition services;
366.24 	(12) co-occurring substance use disorder treatment as defined in section 245I.02, 
366.25 	subdivision 11; and
366.26 	(13) housing access support that assists clients to find, obtain, retain, and move to safe 
366.27 	and adequate housing. Housing access support does not provide monetary assistance for 
366.28 	rent, damage deposits, or application fees.
366.29 	(b) The provider shall ensure and document the following by means of performing the 
366.30 	required function or by contracting with a qualified person or entity: client access to crisis 
367.1 	intervention services, as defined in section 256B.0624, and available 24 hours per day and 
367.2 	seven days per week.

367.3 	Sec. 70. Minnesota Statutes 2024, section 256B.69, subdivision 23, is amended to read:
367.4 		Subd. 23.Alternative services; elderly persons and persons with a disability. (a) The 
367.5 	commissioner may implement demonstration projects to create alternative integrated delivery 
367.6 	systems for acute and long-term care services to elderly persons and persons with disabilities 
367.7 	as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve 
367.8 	access to quality services, and mitigate future cost increases. The commissioner may seek 
367.9 	federal authority to combine Medicare and Medicaid capitation payments for the purpose 
367.10 	of such demonstrations and may contract with Medicare-approved special needs plans that 
367.11 	are offered by a demonstration provider or by an entity that is directly or indirectly wholly 
367.12 	owned or controlled by a demonstration provider to provide Medicaid services. Medicare 
367.13 	funds and services shall be administered according to the terms and conditions of the federal 
367.14 	contract and demonstration provisions. For the purpose of administering medical assistance 
367.15 	funds, demonstrations under this subdivision are subject to subdivisions 1 to 22. The 
367.16 	provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
367.17 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items 
367.18 	B and C, which do not apply to persons enrolling in demonstrations under this section. All 
367.19 	enforcement and rulemaking powers available under chapters 62D, 62M, and 62Q are hereby 
367.20 	granted to the commissioner of health with respect to Medicare-approved special needs 
367.21 	plans with which the commissioner contracts to provide Medicaid services under this section. 
367.22 	An initial open enrollment period may be provided. Persons who disenroll from 
367.23 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
367.24 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
367.25 	the health plan's participation is subsequently terminated for any reason, the person shall 
367.26 	be provided an opportunity to select a new health plan and shall have the right to change 
367.27 	health plans within the first 60 days of enrollment in the second health plan. Persons required 
367.28 	to participate in health plans under this section who fail to make a choice of health plan 
367.29 	shall not be randomly assigned to health plans under these demonstrations. Notwithstanding 
367.30 	section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, 
367.31 	if adopted, for the purpose of demonstrations under this subdivision, the commissioner may 
367.32 	contract with managed care organizations, including counties, to serve only elderly persons 
367.33 	eligible for medical assistance, elderly persons with a disability, or persons with a disability 
367.34 	only. For persons with a primary diagnosis of developmental disability, serious and persistent 
367.35 	mental illness, or serious emotional disturbance mental illness in children, the commissioner 
368.1 	must ensure that the county authority has approved the demonstration and contracting design. 
368.2 	Enrollment in these projects for persons with disabilities shall be voluntary. The 
368.3 	commissioner shall not implement any demonstration project under this subdivision for 
368.4 	persons with a primary diagnosis of developmental disabilities, serious and persistent mental 
368.5 	illness, or serious emotional disturbance, mental illness in children without approval of the 
368.6 	county board of the county in which the demonstration is being implemented.
368.7 	(b) MS 2009 Supplement [Expired, 2003 c 47 s 4; 2007 c 147 art 7 s 60]
368.8 	(c) Before implementation of a demonstration project for persons with a disability, the 
368.9 	commissioner must provide information to appropriate committees of the house of 
368.10 	representatives and senate and must involve representatives of affected disability groups in 
368.11 	the design of the demonstration projects.
368.12 	(d) A nursing facility reimbursed under the alternative reimbursement methodology in 
368.13 	section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
368.14 	provide services under paragraph (a). The commissioner shall amend the state plan and seek 
368.15 	any federal waivers necessary to implement this paragraph.
368.16 	(e) The commissioner, in consultation with the commissioners of commerce and health, 
368.17 	may approve and implement programs for all-inclusive care for the elderly (PACE) according 
368.18 	to federal laws and regulations governing that program and state laws or rules applicable 
368.19 	to participating providers. A PACE provider is not required to be licensed or certified as a 
368.20 	health plan company as defined in section 62Q.01, subdivision 4. Persons age 55 and older 
368.21 	who have been screened by the county and found to be eligible for services under the elderly 
368.22 	waiver or community access for disability inclusion or who are already eligible for Medicaid 
368.23 	but meet level of care criteria for receipt of waiver services may choose to enroll in the 
368.24 	PACE program. Medicare and Medicaid services will be provided according to this 
368.25 	subdivision and federal Medicare and Medicaid requirements governing PACE providers 
368.26 	and programs. PACE enrollees will receive Medicaid home and community-based services 
368.27 	through the PACE provider as an alternative to services for which they would otherwise be 
368.28 	eligible through home and community-based waiver programs and Medicaid State Plan 
368.29 	Services. The commissioner shall establish Medicaid rates for PACE providers that do not 
368.30 	exceed costs that would have been incurred under fee-for-service or other relevant managed 
368.31 	care programs operated by the state.
368.32 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
368.33 	health options (MnDHO) program established under this subdivision in stages, first to 
368.34 	regional population centers outside the seven-county metro area and then to all areas of the 
369.1 	state. Until July 1, 2009, expansion for MnDHO projects that include home and 
369.2 	community-based services is limited to the two projects and service areas in effect on March 
369.3 	1, 2006. Enrollment in integrated MnDHO programs that include home and community-based 
369.4 	services shall remain voluntary. Costs for home and community-based services included 
369.5 	under MnDHO must not exceed costs that would have been incurred under the fee-for-service 
369.6 	program. Notwithstanding whether expansion occurs under this paragraph, in determining 
369.7 	MnDHO payment rates and risk adjustment methods, the commissioner must consider the 
369.8 	methods used to determine county allocations for home and community-based program 
369.9 	participants. If necessary to reduce MnDHO rates to comply with the provision regarding 
369.10 	MnDHO costs for home and community-based services, the commissioner shall achieve 
369.11 	the reduction by maintaining the base rate for contract year 2010 for services provided under 
369.12 	the community access for disability inclusion waiver at the same level as for contract year 
369.13 	2009. The commissioner may apply other reductions to MnDHO rates to implement decreases 
369.14 	in provider payment rates required by state law. Effective January 1, 2011, enrollment and 
369.15 	operation of the MnDHO program in effect during 2010 shall cease. The commissioner may 
369.16 	reopen the program provided all applicable conditions of this section are met. In developing 
369.17 	program specifications for expansion of integrated programs, the commissioner shall involve 
369.18 	and consult the state-level stakeholder group established in subdivision 28, paragraph (d), 
369.19 	including consultation on whether and how to include home and community-based waiver 
369.20 	programs. Plans to reopen MnDHO projects shall be presented to the chairs of the house of 
369.21 	representatives and senate committees with jurisdiction over health and human services 
369.22 	policy and finance prior to implementation.
369.23 	(g) Notwithstanding section 256B.0621, health plans providing services under this section 
369.24 	are responsible for home care targeted case management and relocation targeted case 
369.25 	management. Services must be provided according to the terms of the waivers and contracts 
369.26 	approved by the federal government.

369.27 	Sec. 71. Minnesota Statutes 2024, section 256B.77, subdivision 7a, is amended to read:
369.28 		Subd. 7a.Eligible individuals. (a) Persons are eligible for the demonstration project as 
369.29 	provided in this subdivision.
369.30 	(b) "Eligible individuals" means those persons living in the demonstration site who are 
369.31 	eligible for medical assistance and are disabled based on a disability determination under 
369.32 	section 256B.055, subdivisions 7 and 12, or who are eligible for medical assistance and 
369.33 	have been diagnosed as having:
369.34 	(1) serious and persistent mental illness as defined in section 245.462, subdivision 20;
370.1 	(2) severe emotional disturbance serious mental illness as defined in section 245.4871, 
370.2 	subdivision 6; or
370.3 	(3) developmental disability, or being a person with a developmental disability as defined 
370.4 	in section 252A.02, or a related condition as defined in section 256B.02, subdivision 11.
370.5 	Other individuals may be included at the option of the county authority based on agreement 
370.6 	with the commissioner.
370.7 	(c) Eligible individuals include individuals in excluded time status, as defined in chapter 
370.8 	256G. Enrollees in excluded time at the time of enrollment shall remain in excluded time 
370.9 	status as long as they live in the demonstration site and shall be eligible for 90 days after 
370.10 	placement outside the demonstration site if they move to excluded time status in a county 
370.11 	within Minnesota other than their county of financial responsibility.
370.12 	(d) A person who is a sexual psychopathic personality as defined in section 253D.02, 
370.13 	subdivision 15, or a sexually dangerous person as defined in section 253D.02, subdivision 
370.14 	16, is excluded from enrollment in the demonstration project.

370.15 	Sec. 72. Minnesota Statutes 2024, section 260B.157, subdivision 3, is amended to read:
370.16 		Subd. 3.Juvenile treatment screening team. (a) The local social services agency shall 
370.17 	establish a juvenile treatment screening team to conduct screenings and prepare case plans 
370.18 	under this subdivision. The team, which may be the team constituted under section 245.4885 
370.19 	or 256B.092 or chapter 254B, shall consist of social workers, juvenile justice professionals, 
370.20 	and persons with expertise in the treatment of juveniles who are emotionally disabled, 
370.21 	chemically dependent, or have a developmental disability. The team shall involve parents 
370.22 	or guardians in the screening process as appropriate. The team may be the same team as 
370.23 	defined in section 260C.157, subdivision 3.
370.24 	(b) If the court, prior to, or as part of, a final disposition, proposes to place a child:
370.25 	(1) for the primary purpose of treatment for an emotional disturbance mental illness, 
370.26 	and residential placement is consistent with section 260.012, a developmental disability, or 
370.27 	chemical dependency in a residential treatment facility out of state or in one which is within 
370.28 	the state and licensed by the commissioner of human services under chapter 245A; or
370.29 	(2) in any out-of-home setting potentially exceeding 30 days in duration, including a 
370.30 	post-dispositional placement in a facility licensed by the commissioner of corrections or 
370.31 	human services, the court shall notify the county welfare agency. The county's juvenile 
370.32 	treatment screening team must either:
371.1 	(i) screen and evaluate the child and file its recommendations with the court within 14 
371.2 	days of receipt of the notice; or
371.3 	(ii) elect not to screen a given case, and notify the court of that decision within three 
371.4 	working days.
371.5 	(c) If the screening team has elected to screen and evaluate the child, the child may not 
371.6 	be placed for the primary purpose of treatment for an emotional disturbance mental illness, 
371.7 	a developmental disability, or chemical dependency, in a residential treatment facility out 
371.8 	of state nor in a residential treatment facility within the state that is licensed under chapter 
371.9 	245A, unless one of the following conditions applies:
371.10 	(1) a treatment professional certifies that an emergency requires the placement of the 
371.11 	child in a facility within the state;
371.12 	(2) the screening team has evaluated the child and recommended that a residential 
371.13 	placement is necessary to meet the child's treatment needs and the safety needs of the 
371.14 	community, that it is a cost-effective means of meeting the treatment needs, and that it will 
371.15 	be of therapeutic value to the child; or
371.16 	(3) the court, having reviewed a screening team recommendation against placement, 
371.17 	determines to the contrary that a residential placement is necessary. The court shall state 
371.18 	the reasons for its determination in writing, on the record, and shall respond specifically to 
371.19 	the findings and recommendation of the screening team in explaining why the 
371.20 	recommendation was rejected. The attorney representing the child and the prosecuting 
371.21 	attorney shall be afforded an opportunity to be heard on the matter.

371.22 	Sec. 73. Minnesota Statutes 2024, section 260C.007, subdivision 16, is amended to read:
371.23 		Subd. 16.Emotionally disturbed Mental illness. "Emotionally disturbed Mental illness" 
371.24 	means emotional disturbance as describedhas the meaning given in section 245.4871, 
371.25 	subdivision 15.

371.26 	Sec. 74. Minnesota Statutes 2024, section 260C.007, subdivision 26d, is amended to read:
371.27 		Subd. 26d.Qualified residential treatment program. "Qualified residential treatment 
371.28 	program" means a children's residential treatment program licensed under chapter 245A or 
371.29 	licensed or approved by a tribe that is approved to receive foster care maintenance payments 
371.30 	under section 142A.418 that:
371.31 	(1) has a trauma-informed treatment model designed to address the needs of children 
371.32 	with serious emotional or behavioral disorders or disturbances or mental illnesses;
372.1 	(2) has registered or licensed nursing staff and other licensed clinical staff who:
372.2 	(i) provide care within the scope of their practice; and
372.3 	(ii) are available 24 hours per day and seven days per week;
372.4 	(3) is accredited by any of the following independent, nonprofit organizations: the 
372.5 	Commission on Accreditation of Rehabilitation Facilities (CARF), the Joint Commission 
372.6 	on Accreditation of Healthcare Organizations (JCAHO), and the Council on Accreditation 
372.7 	(COA), or any other nonprofit accrediting organization approved by the United States 
372.8 	Department of Health and Human Services;
372.9 	(4) if it is in the child's best interests, facilitates participation of the child's family members 
372.10 	in the child's treatment programming consistent with the child's out-of-home placement 
372.11 	plan under sections 260C.212, subdivision 1, and 260C.708;
372.12 	(5) facilitates outreach to family members of the child, including siblings;
372.13 	(6) documents how the facility facilitates outreach to the child's parents and relatives, 
372.14 	as well as documents the child's parents' and other relatives' contact information;
372.15 	(7) documents how the facility includes family members in the child's treatment process, 
372.16 	including after the child's discharge, and how the facility maintains the child's sibling 
372.17 	connections; and
372.18 	(8) provides the child and child's family with discharge planning and family-based 
372.19 	aftercare support for at least six months after the child's discharge. Aftercare support may 
372.20 	include clinical care consultation under section 256B.0671, subdivision 7, and mental health 
372.21 	certified family peer specialist services under section 256B.0616.

372.22 	Sec. 75. Minnesota Statutes 2024, section 260C.007, subdivision 27b, is amended to read:
372.23 		Subd. 27b.Residential treatment facility. "Residential treatment facility" means a 
372.24 	24-hour-a-day program that provides treatment for children with emotional disturbance
372.25 	mental illness, consistent with section 245.4871, subdivision 32, and includes a licensed 
372.26 	residential program specializing in caring 24 hours a day for children with a developmental 
372.27 	delay or related condition. A residential treatment facility does not include a psychiatric 
372.28 	residential treatment facility under section 256B.0941 or a family foster home as defined 
372.29 	in section 260C.007, subdivision 16b.

373.1 	Sec. 76. Minnesota Statutes 2024, section 260C.157, subdivision 3, is amended to read:
373.2 		Subd. 3.Juvenile treatment screening team. (a) The responsible social services agency 
373.3 	shall establish a juvenile treatment screening team to conduct screenings under this chapter 
373.4 	and chapter 260D, for a child to receive treatment for an emotional disturbance a mental 
373.5 	illness, a developmental disability, or related condition in a residential treatment facility 
373.6 	licensed by the commissioner of human services under chapter 245A, or licensed or approved 
373.7 	by a tribe. A screening team is not required for a child to be in: (1) a residential facility 
373.8 	specializing in prenatal, postpartum, or parenting support; (2) a facility specializing in 
373.9 	high-quality residential care and supportive services to children and youth who have been 
373.10 	or are at risk of becoming victims of sex trafficking or commercial sexual exploitation; (3) 
373.11 	supervised settings for youth who are 18 years of age or older and living independently; or 
373.12 	(4) a licensed residential family-based treatment facility for substance abuse consistent with 
373.13 	section 260C.190. Screenings are also not required when a child must be placed in a facility 
373.14 	due to an emotional crisis or other mental health emergency.
373.15 	(b) The responsible social services agency shall conduct screenings within 15 days of a 
373.16 	request for a screening, unless the screening is for the purpose of residential treatment and 
373.17 	the child is enrolled in a prepaid health program under section 256B.69, in which case the 
373.18 	agency shall conduct the screening within ten working days of a request. The responsible 
373.19 	social services agency shall convene the juvenile treatment screening team, which may be 
373.20 	constituted under section 245.4885, 254B.05, or 256B.092. The team shall consist of social 
373.21 	workers; persons with expertise in the treatment of juveniles who are emotionally disturbed, 
373.22 	chemically dependent, or have a developmental disability; and the child's parent, guardian, 
373.23 	or permanent legal custodian. The team may include the child's relatives as defined in section 
373.24 	260C.007, subdivisions 26b and 27, the child's foster care provider, and professionals who 
373.25 	are a resource to the child's family such as teachers, medical or mental health providers, 
373.26 	and clergy, as appropriate, consistent with the family and permanency team as defined in 
373.27 	section 260C.007, subdivision 16a. Prior to forming the team, the responsible social services 
373.28 	agency must consult with the child's parents, the child if the child is age 14 or older, and, 
373.29 	if applicable, the child's tribe to obtain recommendations regarding which individuals to 
373.30 	include on the team and to ensure that the team is family-centered and will act in the child's 
373.31 	best interests. If the child, child's parents, or legal guardians raise concerns about specific 
373.32 	relatives or professionals, the team should not include those individuals. This provision 
373.33 	does not apply to paragraph (c).
373.34 	(c) If the agency provides notice to tribes under section 260.761, and the child screened 
373.35 	is an Indian child, the responsible social services agency must make a rigorous and concerted 
374.1 	effort to include a designated representative of the Indian child's tribe on the juvenile 
374.2 	treatment screening team, unless the child's tribal authority declines to appoint a 
374.3 	representative. The Indian child's tribe may delegate its authority to represent the child to 
374.4 	any other federally recognized Indian tribe, as defined in section 260.755, subdivision 12. 
374.5 	The provisions of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 
374.6 	1901 to 1963, and the Minnesota Indian Family Preservation Act, sections 260.751 to 
374.7 	260.835, apply to this section.
374.8 	(d) If the court, prior to, or as part of, a final disposition or other court order, proposes 
374.9 	to place a child with an emotional disturbance or a mental illness, developmental disability,
374.10 	or related condition in residential treatment, the responsible social services agency must 
374.11 	conduct a screening. If the team recommends treating the child in a qualified residential 
374.12 	treatment program, the agency must follow the requirements of sections 260C.70 to 
374.13 	260C.714.
374.14 	The court shall ascertain whether the child is an Indian child and shall notify the 
374.15 	responsible social services agency and, if the child is an Indian child, shall notify the Indian 
374.16 	child's tribe as paragraph (c) requires.
374.17 	(e) When the responsible social services agency is responsible for placing and caring 
374.18 	for the child and the screening team recommends placing a child in a qualified residential 
374.19 	treatment program as defined in section 260C.007, subdivision 26d, the agency must: (1) 
374.20 	begin the assessment and processes required in section 260C.704 without delay; and (2) 
374.21 	conduct a relative search according to section 260C.221 to assemble the child's family and 
374.22 	permanency team under section 260C.706. Prior to notifying relatives regarding the family 
374.23 	and permanency team, the responsible social services agency must consult with the child's 
374.24 	parent or legal guardian, the child if the child is age 14 or older, and, if applicable, the child's 
374.25 	tribe to ensure that the agency is providing notice to individuals who will act in the child's 
374.26 	best interests. The child and the child's parents may identify a culturally competent qualified 
374.27 	individual to complete the child's assessment. The agency shall make efforts to refer the 
374.28 	assessment to the identified qualified individual. The assessment may not be delayed for 
374.29 	the purpose of having the assessment completed by a specific qualified individual.
374.30 	(f) When a screening team determines that a child does not need treatment in a qualified 
374.31 	residential treatment program, the screening team must:
374.32 	(1) document the services and supports that will prevent the child's foster care placement 
374.33 	and will support the child remaining at home;
375.1 	(2) document the services and supports that the agency will arrange to place the child 
375.2 	in a family foster home; or
375.3 	(3) document the services and supports that the agency has provided in any other setting.
375.4 	(g) When the Indian child's tribe or tribal health care services provider or Indian Health 
375.5 	Services provider proposes to place a child for the primary purpose of treatment for an 
375.6 	emotional disturbance mental illness, a developmental disability, or co-occurring emotional 
375.7 	disturbance mental illness and chemical dependency, the Indian child's tribe or the tribe 
375.8 	delegated by the child's tribe shall submit necessary documentation to the county juvenile 
375.9 	treatment screening team, which must invite the Indian child's tribe to designate a 
375.10 	representative to the screening team.
375.11 	(h) The responsible social services agency must conduct and document the screening in 
375.12 	a format approved by the commissioner of human services.

375.13 	Sec. 77. Minnesota Statutes 2024, section 260C.201, subdivision 1, is amended to read:
375.14 		Subdivision 1.Dispositions. (a) If the court finds that the child is in need of protection 
375.15 	or services or neglected and in foster care, the court shall enter an order making any of the 
375.16 	following dispositions of the case:
375.17 	(1) place the child under the protective supervision of the responsible social services 
375.18 	agency or child-placing agency in the home of a parent of the child under conditions 
375.19 	prescribed by the court directed to the correction of the child's need for protection or services:
375.20 	(i) the court may order the child into the home of a parent who does not otherwise have 
375.21 	legal custody of the child, however, an order under this section does not confer legal custody 
375.22 	on that parent;
375.23 	(ii) if the court orders the child into the home of a father who is not adjudicated, the 
375.24 	father must cooperate with paternity establishment proceedings regarding the child in the 
375.25 	appropriate jurisdiction as one of the conditions prescribed by the court for the child to 
375.26 	continue in the father's home; and
375.27 	(iii) the court may order the child into the home of a noncustodial parent with conditions 
375.28 	and may also order both the noncustodial and the custodial parent to comply with the 
375.29 	requirements of a case plan under subdivision 2; or
375.30 	(2) transfer legal custody to one of the following:
375.31 	(i) a child-placing agency; or
376.1 	(ii) the responsible social services agency. In making a foster care placement of a child 
376.2 	whose custody has been transferred under this subdivision, the agency shall make an 
376.3 	individualized determination of how the placement is in the child's best interests using the 
376.4 	placement consideration order for relatives and the best interest factors in section 260C.212, 
376.5 	subdivision 2, and may include a child colocated with a parent in a licensed residential 
376.6 	family-based substance use disorder treatment program under section 260C.190; or
376.7 	(3) order a trial home visit without modifying the transfer of legal custody to the 
376.8 	responsible social services agency under clause (2). Trial home visit means the child is 
376.9 	returned to the care of the parent or guardian from whom the child was removed for a period 
376.10 	not to exceed six months. During the period of the trial home visit, the responsible social 
376.11 	services agency:
376.12 	(i) shall continue to have legal custody of the child, which means that the agency may 
376.13 	see the child in the parent's home, at school, in a child care facility, or other setting as the 
376.14 	agency deems necessary and appropriate;
376.15 	(ii) shall continue to have the ability to access information under section 260C.208;
376.16 	(iii) shall continue to provide appropriate services to both the parent and the child during 
376.17 	the period of the trial home visit;
376.18 	(iv) without previous court order or authorization, may terminate the trial home visit in 
376.19 	order to protect the child's health, safety, or welfare and may remove the child to foster care;
376.20 	(v) shall advise the court and parties within three days of the termination of the trial 
376.21 	home visit when a visit is terminated by the responsible social services agency without a 
376.22 	court order; and
376.23 	(vi) shall prepare a report for the court when the trial home visit is terminated whether 
376.24 	by the agency or court order that describes the child's circumstances during the trial home 
376.25 	visit and recommends appropriate orders, if any, for the court to enter to provide for the 
376.26 	child's safety and stability. In the event a trial home visit is terminated by the agency by 
376.27 	removing the child to foster care without prior court order or authorization, the court shall 
376.28 	conduct a hearing within ten days of receiving notice of the termination of the trial home 
376.29 	visit by the agency and shall order disposition under this subdivision or commence 
376.30 	permanency proceedings under sections 260C.503 to 260C.515. The time period for the 
376.31 	hearing may be extended by the court for good cause shown and if it is in the best interests 
376.32 	of the child as long as the total time the child spends in foster care without a permanency 
376.33 	hearing does not exceed 12 months;
377.1 	(4) if the child has been adjudicated as a child in need of protection or services because 
377.2 	the child is in need of special services or care to treat or ameliorate a physical or mental 
377.3 	disability or emotional disturbance mental illness as defined in section 245.4871, subdivision 
377.4 	15, the court may order the child's parent, guardian, or custodian to provide it. The court 
377.5 	may order the child's health plan company to provide mental health services to the child. 
377.6 	Section 62Q.535 applies to an order for mental health services directed to the child's health 
377.7 	plan company. If the health plan, parent, guardian, or custodian fails or is unable to provide 
377.8 	this treatment or care, the court may order it provided. Absent specific written findings by 
377.9 	the court that the child's disability is the result of abuse or neglect by the child's parent or 
377.10 	guardian, the court shall not transfer legal custody of the child for the purpose of obtaining 
377.11 	special treatment or care solely because the parent is unable to provide the treatment or care. 
377.12 	If the court's order for mental health treatment is based on a diagnosis made by a treatment 
377.13 	professional, the court may order that the diagnosing professional not provide the treatment 
377.14 	to the child if it finds that such an order is in the child's best interests; or
377.15 	(5) if the court believes that the child has sufficient maturity and judgment and that it is 
377.16 	in the best interests of the child, the court may order a child 16 years old or older to be 
377.17 	allowed to live independently, either alone or with others as approved by the court under 
377.18 	supervision the court considers appropriate, if the county board, after consultation with the 
377.19 	court, has specifically authorized this dispositional alternative for a child.
377.20 	(b) If the child was adjudicated in need of protection or services because the child is a 
377.21 	runaway or habitual truant, the court may order any of the following dispositions in addition 
377.22 	to or as alternatives to the dispositions authorized under paragraph (a):
377.23 	(1) counsel the child or the child's parents, guardian, or custodian;
377.24 	(2) place the child under the supervision of a probation officer or other suitable person 
377.25 	in the child's own home under conditions prescribed by the court, including reasonable rules 
377.26 	for the child's conduct and the conduct of the parents, guardian, or custodian, designed for 
377.27 	the physical, mental, and moral well-being and behavior of the child;
377.28 	(3) subject to the court's supervision, transfer legal custody of the child to one of the 
377.29 	following:
377.30 	(i) a reputable person of good moral character. No person may receive custody of two 
377.31 	or more unrelated children unless licensed to operate a residential program under sections 
377.32 	245A.01 to 245A.16; or
377.33 	(ii) a county probation officer for placement in a group foster home established under 
377.34 	the direction of the juvenile court and licensed pursuant to section 241.021;
378.1 	(4) require the child to pay a fine of up to $100. The court shall order payment of the 
378.2 	fine in a manner that will not impose undue financial hardship upon the child;
378.3 	(5) require the child to participate in a community service project;
378.4 	(6) order the child to undergo a chemical dependency evaluation and, if warranted by 
378.5 	the evaluation, order participation by the child in a drug awareness program or an inpatient 
378.6 	or outpatient chemical dependency treatment program;
378.7 	(7) if the court believes that it is in the best interests of the child or of public safety that 
378.8 	the child's driver's license or instruction permit be canceled, the court may order the 
378.9 	commissioner of public safety to cancel the child's license or permit for any period up to 
378.10 	the child's 18th birthday. If the child does not have a driver's license or permit, the court 
378.11 	may order a denial of driving privileges for any period up to the child's 18th birthday. The 
378.12 	court shall forward an order issued under this clause to the commissioner, who shall cancel 
378.13 	the license or permit or deny driving privileges without a hearing for the period specified 
378.14 	by the court. At any time before the expiration of the period of cancellation or denial, the 
378.15 	court may, for good cause, order the commissioner of public safety to allow the child to 
378.16 	apply for a license or permit, and the commissioner shall so authorize;
378.17 	(8) order that the child's parent or legal guardian deliver the child to school at the 
378.18 	beginning of each school day for a period of time specified by the court; or
378.19 	(9) require the child to perform any other activities or participate in any other treatment 
378.20 	programs deemed appropriate by the court.
378.21 	To the extent practicable, the court shall enter a disposition order the same day it makes 
378.22 	a finding that a child is in need of protection or services or neglected and in foster care, but 
378.23 	in no event more than 15 days after the finding unless the court finds that the best interests 
378.24 	of the child will be served by granting a delay. If the child was under eight years of age at 
378.25 	the time the petition was filed, the disposition order must be entered within ten days of the 
378.26 	finding and the court may not grant a delay unless good cause is shown and the court finds 
378.27 	the best interests of the child will be served by the delay.
378.28 	(c) If a child who is 14 years of age or older is adjudicated in need of protection or 
378.29 	services because the child is a habitual truant and truancy procedures involving the child 
378.30 	were previously dealt with by a school attendance review board or county attorney mediation 
378.31 	program under section 260A.06 or 260A.07, the court shall order a cancellation or denial 
378.32 	of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th 
378.33 	birthday.
379.1 	(d) In the case of a child adjudicated in need of protection or services because the child 
379.2 	has committed domestic abuse and been ordered excluded from the child's parent's home, 
379.3 	the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing 
379.4 	to provide an alternative safe living arrangement for the child as defined in paragraph (f).
379.5 	(e) When a parent has complied with a case plan ordered under subdivision 6 and the 
379.6 	child is in the care of the parent, the court may order the responsible social services agency 
379.7 	to monitor the parent's continued ability to maintain the child safely in the home under such 
379.8 	terms and conditions as the court determines appropriate under the circumstances.
379.9 	(f) For the purposes of this subdivision, "alternative safe living arrangement" means a 
379.10 	living arrangement for a child proposed by a petitioning parent or guardian if a court excludes 
379.11 	the minor from the parent's or guardian's home that is separate from the victim of domestic 
379.12 	abuse and safe for the child respondent. A living arrangement proposed by a petitioning 
379.13 	parent or guardian is presumed to be an alternative safe living arrangement absent information 
379.14 	to the contrary presented to the court. In evaluating any proposed living arrangement, the 
379.15 	court shall consider whether the arrangement provides the child with necessary food, clothing, 
379.16 	shelter, and education in a safe environment. Any proposed living arrangement that would 
379.17 	place the child in the care of an adult who has been physically or sexually violent is presumed 
379.18 	unsafe.

379.19 	Sec. 78. Minnesota Statutes 2024, section 260C.201, subdivision 2, is amended to read:
379.20 		Subd. 2.Written findings. (a) Any order for a disposition authorized under this section 
379.21 	shall contain written findings of fact to support the disposition and case plan ordered and 
379.22 	shall also set forth in writing the following information:
379.23 	(1) why the best interests and safety of the child are served by the disposition and case 
379.24 	plan ordered;
379.25 	(2) what alternative dispositions or services under the case plan were considered by the 
379.26 	court and why such dispositions or services were not appropriate in the instant case;
379.27 	(3) when legal custody of the child is transferred, the appropriateness of the particular 
379.28 	placement made or to be made by the placing agency using the relative and sibling placement 
379.29 	considerations and best interest factors in section 260C.212, subdivision 2, or the 
379.30 	appropriateness of a child colocated with a parent in a licensed residential family-based 
379.31 	substance use disorder treatment program under section 260C.190;
379.32 	(4) whether reasonable efforts to finalize the permanent plan for the child consistent 
379.33 	with section 260.012 were made including reasonable efforts:
380.1 	(i) to prevent the child's placement and to reunify the child with the parent or guardian 
380.2 	from whom the child was removed at the earliest time consistent with the child's safety. 
380.3 	The court's findings must include a brief description of what preventive and reunification 
380.4 	efforts were made and why further efforts could not have prevented or eliminated the 
380.5 	necessity of removal or that reasonable efforts were not required under section 260.012 or 
380.6 	260C.178, subdivision 1;
380.7 	(ii) to identify and locate any noncustodial or nonresident parent of the child and to 
380.8 	assess such parent's ability to provide day-to-day care of the child, and, where appropriate, 
380.9 	provide services necessary to enable the noncustodial or nonresident parent to safely provide 
380.10 	day-to-day care of the child as required under section 260C.219, unless such services are 
380.11 	not required under section 260.012 or 260C.178, subdivision 1. The court's findings must 
380.12 	include a description of the agency's efforts to:
380.13 	(A) identify and locate the child's noncustodial or nonresident parent;
380.14 	(B) assess the noncustodial or nonresident parent's ability to provide day-to-day care of 
380.15 	the child; and
380.16 	(C) if appropriate, provide services necessary to enable the noncustodial or nonresident 
380.17 	parent to safely provide the child's day-to-day care, including efforts to engage the 
380.18 	noncustodial or nonresident parent in assuming care and responsibility of the child;
380.19 	(iii) to make the diligent search for relatives and provide the notices required under 
380.20 	section 260C.221; a finding made pursuant to a hearing under section 260C.202 that the 
380.21 	agency has made diligent efforts to conduct a relative search and has appropriately engaged 
380.22 	relatives who responded to the notice under section 260C.221 and other relatives, who came 
380.23 	to the attention of the agency after notice under section 260C.221 was sent, in placement 
380.24 	and case planning decisions fulfills the requirement of this item;
380.25 	(iv) to identify and make a foster care placement of the child, considering the order in 
380.26 	section 260C.212, subdivision 2, paragraph (a), in the home of an unlicensed relative, 
380.27 	according to the requirements of section 142B.06, a licensed relative, or other licensed foster 
380.28 	care provider, who will commit to being the permanent legal parent or custodian for the 
380.29 	child in the event reunification cannot occur, but who will actively support the reunification 
380.30 	plan for the child. If the court finds that the agency has not appropriately considered relatives 
380.31 	for placement of the child, the court shall order the agency to comply with section 260C.212, 
380.32 	subdivision 2, paragraph (a). The court may order the agency to continue considering 
380.33 	relatives for placement of the child regardless of the child's current placement setting; and
381.1 	(v) to place siblings together in the same home or to ensure visitation is occurring when 
381.2 	siblings are separated in foster care placement and visitation is in the siblings' best interests 
381.3 	under section 260C.212, subdivision 2, paragraph (d); and
381.4 	(5) if the child has been adjudicated as a child in need of protection or services because 
381.5 	the child is in need of special services or care to treat or ameliorate a mental disability or 
381.6 	emotional disturbance mental illness as defined in section 245.4871, subdivision 15, the 
381.7 	written findings shall also set forth:
381.8 	(i) whether the child has mental health needs that must be addressed by the case plan;
381.9 	(ii) what consideration was given to the diagnostic and functional assessments performed 
381.10 	by the child's mental health professional and to health and mental health care professionals' 
381.11 	treatment recommendations;
381.12 	(iii) what consideration was given to the requests or preferences of the child's parent or 
381.13 	guardian with regard to the child's interventions, services, or treatment; and
381.14 	(iv) what consideration was given to the cultural appropriateness of the child's treatment 
381.15 	or services.
381.16 	(b) If the court finds that the social services agency's preventive or reunification efforts 
381.17 	have not been reasonable but that further preventive or reunification efforts could not permit 
381.18 	the child to safely remain at home, the court may nevertheless authorize or continue the 
381.19 	removal of the child.
381.20 	(c) If the child has been identified by the responsible social services agency as the subject 
381.21 	of concurrent permanency planning, the court shall review the reasonable efforts of the 
381.22 	agency to develop a permanency plan for the child that includes a primary plan that is for 
381.23 	reunification with the child's parent or guardian and a secondary plan that is for an alternative, 
381.24 	legally permanent home for the child in the event reunification cannot be achieved in a 
381.25 	timely manner.

381.26 	Sec. 79. Minnesota Statutes 2024, section 260C.301, subdivision 4, is amended to read:
381.27 		Subd. 4.Current foster care children. Except for cases where the child is in placement 
381.28 	due solely to the child's developmental disability or emotional disturbance mental illness, 
381.29 	where custody has not been transferred to the responsible social services agency, and where 
381.30 	the court finds compelling reasons to continue placement, the county attorney shall file a 
381.31 	termination of parental rights petition or a petition to transfer permanent legal and physical 
381.32 	custody to a relative under section 260C.515, subdivision 4, for all children who have been 
381.33 	in out-of-home care for 15 of the most recent 22 months. This requirement does not apply 
382.1 	if there is a compelling reason approved by the court for determining that filing a termination 
382.2 	of parental rights petition or other permanency petition would not be in the best interests 
382.3 	of the child or if the responsible social services agency has not provided reasonable efforts 
382.4 	necessary for the safe return of the child, if reasonable efforts are required.

382.5 	Sec. 80. Minnesota Statutes 2024, section 260D.01, is amended to read:
382.6 	260D.01 CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT.
382.7 	(a) Sections 260D.01 to 260D.10, may be cited as the "child in voluntary foster care for 
382.8 	treatment" provisions of the Juvenile Court Act.
382.9 	(b) The juvenile court has original and exclusive jurisdiction over a child in voluntary 
382.10 	foster care for treatment upon the filing of a report or petition required under this chapter. 
382.11 	All obligations of the responsible social services agency to a child and family in foster care 
382.12 	contained in chapter 260C not inconsistent with this chapter are also obligations of the 
382.13 	agency with regard to a child in foster care for treatment under this chapter.
382.14 	(c) This chapter shall be construed consistently with the mission of the children's mental 
382.15 	health service system as set out in section 245.487, subdivision 3, and the duties of an agency 
382.16 	under sections 256B.092 and 260C.157 and Minnesota Rules, parts 9525.0004 to 9525.0016, 
382.17 	to meet the needs of a child with a developmental disability or related condition. This 
382.18 	chapter:
382.19 	(1) establishes voluntary foster care through a voluntary foster care agreement as the 
382.20 	means for an agency and a parent to provide needed treatment when the child must be in 
382.21 	foster care to receive necessary treatment for an emotional disturbance or a mental illness,
382.22 	developmental disability, or related condition;
382.23 	(2) establishes court review requirements for a child in voluntary foster care for treatment 
382.24 	due to emotional disturbance or a mental illness, developmental disability, or a related 
382.25 	condition;
382.26 	(3) establishes the ongoing responsibility of the parent as legal custodian to visit the 
382.27 	child, to plan together with the agency for the child's treatment needs, to be available and 
382.28 	accessible to the agency to make treatment decisions, and to obtain necessary medical, 
382.29 	dental, and other care for the child;
382.30 	(4) applies to voluntary foster care when the child's parent and the agency agree that the 
382.31 	child's treatment needs require foster care either:
383.1 	(i) due to a level of care determination by the agency's screening team informed by the 
383.2 	child's diagnostic and functional assessment under section 245.4885; or
383.3 	(ii) due to a determination regarding the level of services needed by the child by the 
383.4 	responsible social services agency's screening team under section 256B.092, and Minnesota 
383.5 	Rules, parts 9525.0004 to 9525.0016; and
383.6 	(5) includes the requirements for a child's placement in sections 260C.70 to 260C.714, 
383.7 	when the juvenile treatment screening team recommends placing a child in a qualified 
383.8 	residential treatment program, except as modified by this chapter.
383.9 	(d) This chapter does not apply when there is a current determination under chapter 
383.10 	260E that the child requires child protective services or when the child is in foster care for 
383.11 	any reason other than treatment for the child's emotional disturbance or mental illness,
383.12 	developmental disability, or related condition. When there is a determination under chapter 
383.13 	260E that the child requires child protective services based on an assessment that there are 
383.14 	safety and risk issues for the child that have not been mitigated through the parent's 
383.15 	engagement in services or otherwise, or when the child is in foster care for any reason other 
383.16 	than the child's emotional disturbance or mental illness, developmental disability, or related 
383.17 	condition, the provisions of chapter 260C apply.
383.18 	(e) The paramount consideration in all proceedings concerning a child in voluntary foster 
383.19 	care for treatment is the safety, health, and the best interests of the child. The purpose of 
383.20 	this chapter is:
383.21 	(1) to ensure that a child with a disability is provided the services necessary to treat or 
383.22 	ameliorate the symptoms of the child's disability;
383.23 	(2) to preserve and strengthen the child's family ties whenever possible and in the child's 
383.24 	best interests, approving the child's placement away from the child's parents only when the 
383.25 	child's need for care or treatment requires out-of-home placement and the child cannot be 
383.26 	maintained in the home of the parent; and
383.27 	(3) to ensure that the child's parent retains legal custody of the child and associated 
383.28 	decision-making authority unless the child's parent willfully fails or is unable to make 
383.29 	decisions that meet the child's safety, health, and best interests. The court may not find that 
383.30 	the parent willfully fails or is unable to make decisions that meet the child's needs solely 
383.31 	because the parent disagrees with the agency's choice of foster care facility, unless the 
383.32 	agency files a petition under chapter 260C, and establishes by clear and convincing evidence 
383.33 	that the child is in need of protection or services.
384.1 	(f) The legal parent-child relationship shall be supported under this chapter by maintaining 
384.2 	the parent's legal authority and responsibility for ongoing planning for the child and by the 
384.3 	agency's assisting the parent, when necessary, to exercise the parent's ongoing right and 
384.4 	obligation to visit or to have reasonable contact with the child. Ongoing planning means:
384.5 	(1) actively participating in the planning and provision of educational services, medical, 
384.6 	and dental care for the child;
384.7 	(2) actively planning and participating with the agency and the foster care facility for 
384.8 	the child's treatment needs;
384.9 	(3) planning to meet the child's need for safety, stability, and permanency, and the child's 
384.10 	need to stay connected to the child's family and community;
384.11 	(4) engaging with the responsible social services agency to ensure that the family and 
384.12 	permanency team under section 260C.706 consists of appropriate family members. For 
384.13 	purposes of voluntary placement of a child in foster care for treatment under chapter 260D, 
384.14 	prior to forming the child's family and permanency team, the responsible social services 
384.15 	agency must consult with the child's parent or legal guardian, the child if the child is 14 
384.16 	years of age or older, and, if applicable, the child's Tribe to obtain recommendations regarding 
384.17 	which individuals to include on the team and to ensure that the team is family-centered and 
384.18 	will act in the child's best interests. If the child, child's parents, or legal guardians raise 
384.19 	concerns about specific relatives or professionals, the team should not include those 
384.20 	individuals unless the individual is a treating professional or an important connection to the 
384.21 	youth as outlined in the case or crisis plan; and
384.22 	(5) for a voluntary placement under this chapter in a qualified residential treatment 
384.23 	program, as defined in section 260C.007, subdivision 26d, for purposes of engaging in a 
384.24 	relative search as provided in section 260C.221, the county agency must consult with the 
384.25 	child's parent or legal guardian, the child if the child is 14 years of age or older, and, if 
384.26 	applicable, the child's Tribe to obtain recommendations regarding which adult relatives the 
384.27 	county agency should notify. If the child, child's parents, or legal guardians raise concerns 
384.28 	about specific relatives, the county agency should not notify those relatives.
384.29 	(g) The provisions of section 260.012 to ensure placement prevention, family 
384.30 	reunification, and all active and reasonable effort requirements of that section apply.

384.31 	Sec. 81. Minnesota Statutes 2024, section 260D.02, subdivision 5, is amended to read:
384.32 		Subd. 5.Child in voluntary foster care for treatment. "Child in voluntary foster care 
384.33 	for treatment" means a child with emotional disturbance a mental illness or developmental 
385.1 	disability, or who has a related condition and is in foster care under a voluntary foster care 
385.2 	agreement between the child's parent and the agency due to concurrence between the agency 
385.3 	and the parent when it is determined that foster care is medically necessary:
385.4 	(1) due to a determination by the agency's screening team based on its review of the 
385.5 	diagnostic and functional assessment under section 245.4885; or
385.6 	(2) due to a determination by the agency's screening team under section 256B.092 and 
385.7 	Minnesota Rules, parts 9525.0004 to 9525.0016.
385.8 	A child is not in voluntary foster care for treatment under this chapter when there is a 
385.9 	current determination under chapter 260E that the child requires child protective services 
385.10 	or when the child is in foster care for any reason other than the child's emotional or mental 
385.11 	illness, developmental disability, or related condition.

385.12 	Sec. 82. Minnesota Statutes 2024, section 260D.02, subdivision 9, is amended to read:
385.13 		Subd. 9.Emotional disturbance Mental illness.  "Emotional disturbance Mental illness" 
385.14 	means emotional disturbance as describedhas the meaning given in section 245.4871, 
385.15 	subdivision 15.

385.16 	Sec. 83. Minnesota Statutes 2024, section 260D.03, subdivision 1, is amended to read:
385.17 		Subdivision 1.Voluntary foster care. When the agency's screening team, based upon 
385.18 	the diagnostic and functional assessment under section 245.4885 or medical necessity 
385.19 	screenings under section 256B.092, subdivision 7, determines the child's need for treatment 
385.20 	due to emotional disturbance or a mental illness, developmental disability, or related condition 
385.21 	requires foster care placement of the child, a voluntary foster care agreement between the 
385.22 	child's parent and the agency gives the agency legal authority to place the child in foster 
385.23 	care.

385.24 	Sec. 84. Minnesota Statutes 2024, section 260D.04, is amended to read:
385.25 	260D.04 REQUIRED INFORMATION FOR A CHILD IN VOLUNTARY FOSTER 
385.26 	CARE FOR TREATMENT.
385.27 	An agency with authority to place a child in voluntary foster care for treatment due to 
385.28 	emotional disturbance or a mental illness, developmental disability, or related condition,
385.29 	shall inform the child, age 12 or older, of the following:
386.1 	(1) the child has the right to be consulted in the preparation of the out-of-home placement 
386.2 	plan required under section 260C.212, subdivision 1, and the administrative review required 
386.3 	under section 260C.203;
386.4 	(2) the child has the right to visit the parent and the right to visit the child's siblings as 
386.5 	determined safe and appropriate by the parent and the agency;
386.6 	(3) if the child disagrees with the foster care facility or services provided under the 
386.7 	out-of-home placement plan required under section 260C.212, subdivision 1, the agency 
386.8 	shall include information about the nature of the child's disagreement and, to the extent 
386.9 	possible, the agency's understanding of the basis of the child's disagreement in the information 
386.10 	provided to the court in the report required under section 260D.06; and
386.11 	(4) the child has the rights established under Minnesota Rules, part 2960.0050, as a 
386.12 	resident of a facility licensed by the state.

386.13 	Sec. 85. Minnesota Statutes 2024, section 260D.06, subdivision 2, is amended to read:
386.14 		Subd. 2.Agency report to court; court review. The agency shall obtain judicial review 
386.15 	by reporting to the court according to the following procedures:
386.16 	(a) A written report shall be forwarded to the court within 165 days of the date of the 
386.17 	voluntary placement agreement. The written report shall contain or have attached:
386.18 	(1) a statement of facts that necessitate the child's foster care placement;
386.19 	(2) the child's name, date of birth, race, gender, and current address;
386.20 	(3) the names, race, date of birth, residence, and post office addresses of the child's 
386.21 	parents or legal custodian;
386.22 	(4) a statement regarding the child's eligibility for membership or enrollment in an Indian 
386.23 	tribe and the agency's compliance with applicable provisions of sections 260.751 to 260.835;
386.24 	(5) the names and addresses of the foster parents or chief administrator of the facility in 
386.25 	which the child is placed, if the child is not in a family foster home or group home;
386.26 	(6) a copy of the out-of-home placement plan required under section 260C.212, 
386.27 	subdivision 1;
386.28 	(7) a written summary of the proceedings of any administrative review required under 
386.29 	section 260C.203;
386.30 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
386.31 	residential treatment program as defined in section 260C.007, subdivision 26d; and
387.1 	(9) any other information the agency, parent or legal custodian, the child or the foster 
387.2 	parent, or other residential facility wants the court to consider.
387.3 	(b) In the case of a child in placement due to emotional disturbance mental illness, the 
387.4 	written report shall include as an attachment, the child's individual treatment plan developed 
387.5 	by the child's treatment professional, as provided in section 245.4871, subdivision 21, or 
387.6 	the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
387.7 	(e).
387.8 	(c) In the case of a child in placement due to developmental disability or a related 
387.9 	condition, the written report shall include as an attachment, the child's individual service 
387.10 	plan, as provided in section 256B.092, subdivision 1b; the child's individual program plan, 
387.11 	as provided in Minnesota Rules, part 9525.0004, subpart 11; the child's waiver care plan; 
387.12 	or the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
387.13 	(e).
387.14 	(d) The agency must inform the child, age 12 or older, the child's parent, and the foster 
387.15 	parent or foster care facility of the reporting and court review requirements of this section 
387.16 	and of their right to submit information to the court:
387.17 	(1) if the child or the child's parent or the foster care provider wants to send information 
387.18 	to the court, the agency shall advise those persons of the reporting date and the date by 
387.19 	which the agency must receive the information they want forwarded to the court so the 
387.20 	agency is timely able submit it with the agency's report required under this subdivision;
387.21 	(2) the agency must also inform the child, age 12 or older, the child's parent, and the 
387.22 	foster care facility that they have the right to be heard in person by the court and how to 
387.23 	exercise that right;
387.24 	(3) the agency must also inform the child, age 12 or older, the child's parent, and the 
387.25 	foster care provider that an in-court hearing will be held if requested by the child, the parent, 
387.26 	or the foster care provider; and
387.27 	(4) if, at the time required for the report under this section, a child, age 12 or older, 
387.28 	disagrees about the foster care facility or services provided under the out-of-home placement 
387.29 	plan required under section 260C.212, subdivision 1, the agency shall include information 
387.30 	regarding the child's disagreement, and to the extent possible, the basis for the child's 
387.31 	disagreement in the report required under this section.
388.1 	(e) After receiving the required report, the court has jurisdiction to make the following 
388.2 	determinations and must do so within ten days of receiving the forwarded report, whether 
388.3 	a hearing is requested:
388.4 	(1) whether the voluntary foster care arrangement is in the child's best interests;
388.5 	(2) whether the parent and agency are appropriately planning for the child; and
388.6 	(3) in the case of a child age 12 or older, who disagrees with the foster care facility or 
388.7 	services provided under the out-of-home placement plan, whether it is appropriate to appoint 
388.8 	counsel and a guardian ad litem for the child using standards and procedures under section 
388.9 	260C.163.
388.10 	(f) Unless requested by a parent, representative of the foster care facility, or the child, 
388.11 	no in-court hearing is required in order for the court to make findings and issue an order as 
388.12 	required in paragraph (e).
388.13 	(g) If the court finds the voluntary foster care arrangement is in the child's best interests 
388.14 	and that the agency and parent are appropriately planning for the child, the court shall issue 
388.15 	an order containing explicit, individualized findings to support its determination. The 
388.16 	individualized findings shall be based on the agency's written report and other materials 
388.17 	submitted to the court. The court may make this determination notwithstanding the child's 
388.18 	disagreement, if any, reported under paragraph (d).
388.19 	(h) The court shall send a copy of the order to the county attorney, the agency, parent, 
388.20 	child, age 12 or older, and the foster parent or foster care facility.
388.21 	(i) The court shall also send the parent, the child, age 12 or older, the foster parent, or 
388.22 	representative of the foster care facility notice of the permanency review hearing required 
388.23 	under section 260D.07, paragraph (e).
388.24 	(j) If the court finds continuing the voluntary foster care arrangement is not in the child's 
388.25 	best interests or that the agency or the parent are not appropriately planning for the child, 
388.26 	the court shall notify the agency, the parent, the foster parent or foster care facility, the child, 
388.27 	age 12 or older, and the county attorney of the court's determinations and the basis for the 
388.28 	court's determinations. In this case, the court shall set the matter for hearing and appoint a 
388.29 	guardian ad litem for the child under section 260C.163, subdivision 5.

389.1 	Sec. 86. Minnesota Statutes 2024, section 260D.07, is amended to read:
389.2 	260D.07 REQUIRED PERMANENCY REVIEW HEARING.
389.3 	(a) When the court has found that the voluntary arrangement is in the child's best interests 
389.4 	and that the agency and parent are appropriately planning for the child pursuant to the report 
389.5 	submitted under section 260D.06, and the child continues in voluntary foster care as defined 
389.6 	in section 260D.02, subdivision 10, for 13 months from the date of the voluntary foster care 
389.7 	agreement, or has been in placement for 15 of the last 22 months, the agency must:
389.8 	(1) terminate the voluntary foster care agreement and return the child home; or
389.9 	(2) determine whether there are compelling reasons to continue the voluntary foster care 
389.10 	arrangement and, if the agency determines there are compelling reasons, seek judicial 
389.11 	approval of its determination; or
389.12 	(3) file a petition for the termination of parental rights.
389.13 	(b) When the agency is asking for the court's approval of its determination that there are 
389.14 	compelling reasons to continue the child in the voluntary foster care arrangement, the agency 
389.15 	shall file a "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
389.16 	for Treatment" and ask the court to proceed under this section.
389.17 	(c) The "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
389.18 	for Treatment" shall be drafted or approved by the county attorney and be under oath. The 
389.19 	petition shall include:
389.20 	(1) the date of the voluntary placement agreement;
389.21 	(2) whether the petition is due to the child's developmental disability or emotional 
389.22 	disturbance mental illness;
389.23 	(3) the plan for the ongoing care of the child and the parent's participation in the plan;
389.24 	(4) a description of the parent's visitation and contact with the child;
389.25 	(5) the date of the court finding that the foster care placement was in the best interests 
389.26 	of the child, if required under section 260D.06, or the date the agency filed the motion under 
389.27 	section 260D.09, paragraph (b);
389.28 	(6) the agency's reasonable efforts to finalize the permanent plan for the child, including 
389.29 	returning the child to the care of the child's family;
389.30 	(7) a citation to this chapter as the basis for the petition; and
390.1 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
390.2 	residential treatment program as defined in section 260C.007, subdivision 26d.
390.3 	(d) An updated copy of the out-of-home placement plan required under section 260C.212, 
390.4 	subdivision 1, shall be filed with the petition.
390.5 	(e) The court shall set the date for the permanency review hearing no later than 14 months 
390.6 	after the child has been in placement or within 30 days of the petition filing date when the 
390.7 	child has been in placement 15 of the last 22 months. The court shall serve the petition 
390.8 	together with a notice of hearing by United States mail on the parent, the child age 12 or 
390.9 	older, the child's guardian ad litem, if one has been appointed, the agency, the county 
390.10 	attorney, and counsel for any party.
390.11 	(f) The court shall conduct the permanency review hearing on the petition no later than 
390.12 	14 months after the date of the voluntary placement agreement, within 30 days of the filing 
390.13 	of the petition when the child has been in placement 15 of the last 22 months, or within 15 
390.14 	days of a motion to terminate jurisdiction and to dismiss an order for foster care under 
390.15 	chapter 260C, as provided in section 260D.09, paragraph (b).
390.16 	(g) At the permanency review hearing, the court shall:
390.17 	(1) inquire of the parent if the parent has reviewed the "Petition for Permanency Review 
390.18 	Regarding a Child in Voluntary Foster Care for Treatment," whether the petition is accurate, 
390.19 	and whether the parent agrees to the continued voluntary foster care arrangement as being 
390.20 	in the child's best interests;
390.21 	(2) inquire of the parent if the parent is satisfied with the agency's reasonable efforts to 
390.22 	finalize the permanent plan for the child, including whether there are services available and 
390.23 	accessible to the parent that might allow the child to safely be with the child's family;
390.24 	(3) inquire of the parent if the parent consents to the court entering an order that:
390.25 	(i) approves the responsible agency's reasonable efforts to finalize the permanent plan 
390.26 	for the child, which includes ongoing future planning for the safety, health, and best interests 
390.27 	of the child; and
390.28 	(ii) approves the responsible agency's determination that there are compelling reasons 
390.29 	why the continued voluntary foster care arrangement is in the child's best interests; and
390.30 	(4) inquire of the child's guardian ad litem and any other party whether the guardian or 
390.31 	the party agrees that:
391.1 	(i) the court should approve the responsible agency's reasonable efforts to finalize the 
391.2 	permanent plan for the child, which includes ongoing and future planning for the safety, 
391.3 	health, and best interests of the child; and
391.4 	(ii) the court should approve of the responsible agency's determination that there are 
391.5 	compelling reasons why the continued voluntary foster care arrangement is in the child's 
391.6 	best interests.
391.7 	(h) At a permanency review hearing under this section, the court may take the following 
391.8 	actions based on the contents of the sworn petition and the consent of the parent:
391.9 	(1) approve the agency's compelling reasons that the voluntary foster care arrangement 
391.10 	is in the best interests of the child; and
391.11 	(2) find that the agency has made reasonable efforts to finalize the permanent plan for 
391.12 	the child.
391.13 	(i) A child, age 12 or older, may object to the agency's request that the court approve its 
391.14 	compelling reasons for the continued voluntary arrangement and may be heard on the reasons 
391.15 	for the objection. Notwithstanding the child's objection, the court may approve the agency's 
391.16 	compelling reasons and the voluntary arrangement.
391.17 	(j) If the court does not approve the voluntary arrangement after hearing from the child 
391.18 	or the child's guardian ad litem, the court shall dismiss the petition. In this case, either:
391.19 	(1) the child must be returned to the care of the parent; or
391.20 	(2) the agency must file a petition under section 260C.141, asking for appropriate relief 
391.21 	under sections 260C.301 or 260C.503 to 260C.521.
391.22 	(k) When the court approves the agency's compelling reasons for the child to continue 
391.23 	in voluntary foster care for treatment, and finds that the agency has made reasonable efforts 
391.24 	to finalize a permanent plan for the child, the court shall approve the continued voluntary 
391.25 	foster care arrangement, and continue the matter under the court's jurisdiction for the purposes 
391.26 	of reviewing the child's placement every 12 months while the child is in foster care.
391.27 	(l) A finding that the court approves the continued voluntary placement means the agency 
391.28 	has continued legal authority to place the child while a voluntary placement agreement 
391.29 	remains in effect. The parent or the agency may terminate a voluntary agreement as provided 
391.30 	in section 260D.10. Termination of a voluntary foster care placement of an Indian child is 
391.31 	governed by section 260.765, subdivision 4.

392.1 	Sec. 87. Minnesota Statutes 2024, section 260E.11, subdivision 3, is amended to read:
392.2 		Subd. 3.Report to medical examiner or coroner; notification to local agency and 
392.3 	law enforcement; report ombudsman. (a) A person mandated to report maltreatment who 
392.4 	knows or has reason to believe a child has died as a result of maltreatment shall report that 
392.5 	information to the appropriate medical examiner or coroner instead of the local welfare 
392.6 	agency, police department, or county sheriff.
392.7 	(b) The medical examiner or coroner shall notify the local welfare agency, police 
392.8 	department, or county sheriff in instances in which the medical examiner or coroner believes 
392.9 	that the child has died as a result of maltreatment. The medical examiner or coroner shall 
392.10 	complete an investigation as soon as feasible and report the findings to the police department 
392.11 	or county sheriff and the local welfare agency.
392.12 	(c) If the child was receiving services or treatment for mental illness, developmental 
392.13 	disability, or substance use disorder, or emotional disturbance from an agency, facility, or 
392.14 	program as defined in section 245.91, the medical examiner or coroner shall also notify and 
392.15 	report findings to the ombudsman established under sections 245.91 to 245.97.

392.16 	Sec. 88. Minnesota Statutes 2024, section 295.50, subdivision 9b, is amended to read:
392.17 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
392.18 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
392.19 	They include the following health care goods and services provided to a patient or consumer:
392.20 	(1) bed and board;
392.21 	(2) nursing services and other related services;
392.22 	(3) use of hospitals, surgical centers, or health care provider facilities;
392.23 	(4) medical social services;
392.24 	(5) drugs, biologicals, supplies, appliances, and equipment;
392.25 	(6) other diagnostic or therapeutic items or services;
392.26 	(7) medical or surgical services;
392.27 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
392.28 	and
392.29 	(9) emergency services.
392.30 	(b) "Patient services" does not include:
393.1 	(1) services provided to nursing homes licensed under chapter 144A;
393.2 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
393.3 	litigation, and employment, including reviews of medical records for those purposes;
393.4 	(3) services provided to and by community residential mental health facilities licensed 
393.5 	under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by 
393.6 	residential treatment programs for children with severe emotional disturbance a serious 
393.7 	mental illness licensed or certified under chapter 245A;
393.8 	(4) services provided under the following programs: day treatment services as defined 
393.9 	in section 245.462, subdivision 8; assertive community treatment as described in section 
393.10 	256B.0622; adult rehabilitative mental health services as described in section 256B.0623; 
393.11 	crisis response services as described in section 256B.0624; and children's therapeutic services 
393.12 	and supports as described in section 256B.0943;
393.13 	(5) services provided to and by community mental health centers as defined in section 
393.14 	245.62, subdivision 2;
393.15 	(6) services provided to and by assisted living programs and congregate housing 
393.16 	programs;
393.17 	(7) hospice care services;
393.18 	(8) home and community-based waivered services under chapter 256S and sections 
393.19 	256B.49 and 256B.501;
393.20 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
393.21 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
393.22 	(10) services provided to the following: supervised living facilities for persons with 
393.23 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
393.24 	housing with services establishments required to be registered under chapter 144D; board 
393.25 	and lodging establishments providing only custodial services that are licensed under chapter 
393.26 	157 and registered under section 157.17 to provide supportive services or health supervision 
393.27 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
393.28 	and habilitation services for adults with developmental disabilities as defined in section 
393.29 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
393.30 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
393.31 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
393.32 	chapter 144A.

394.1 	ARTICLE 11
394.2 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
394.3 	TREATMENT SERVICES RECODIFICATION

394.4 	Section 1. Minnesota Statutes 2024, section 256B.0622, subdivision 1, is amended to read:
394.5 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
394.6 	necessary, assertive community treatment when the services are provided by an entity 
394.7 	certified under and meeting the standards in this section.
394.8 	(b) Subject to federal approval, medical assistance covers medically necessary, intensive 
394.9 	residential treatment services when the services are provided by an entity licensed under 
394.10 	and meeting the standards in section 245I.23.
394.11 	(c) (b) The provider entity must make reasonable and good faith efforts to report 
394.12 	individual client outcomes to the commissioner, using instruments and protocols approved 
394.13 	by the commissioner.

394.14 	Sec. 2. Minnesota Statutes 2024, section 256B.0622, subdivision 8, is amended to read:
394.15 		Subd. 8.Medical assistance payment for assertive community treatment and 
394.16 	intensive residential treatment services. (a) Payment for intensive residential treatment 
394.17 	services and assertive community treatment in this section shall be based on one daily rate 
394.18 	per provider inclusive of the following services received by an eligible client in a given 
394.19 	calendar day: all rehabilitative services under this section, staff travel time to provide 
394.20 	rehabilitative services under this section, and nonresidential crisis stabilization services 
394.21 	under section 256B.0624.
394.22 	(b) Except as indicated in paragraph (d) (c), payment will not be made to more than one 
394.23 	entity for each client for services provided under this section on a given day. If services 
394.24 	under this section are provided by a team that includes staff from more than one entity, the 
394.25 	team must determine how to distribute the payment among the members.
394.26 	(c) Payment must not be made based solely on a court order to participate in intensive 
394.27 	residential treatment services. If a client has a court order to participate in the program or 
394.28 	to obtain assessment for treatment and follow treatment recommendations, payment under 
394.29 	this section must only be provided if the client is eligible for the service and the service is 
394.30 	determined to be medically necessary.
394.31 	(d) (c) The commissioner shall determine one rate for each provider that will bill medical 
394.32 	assistance for residential services under this section and one rate for each assertive community 
394.33 	treatment provider under this section. If a single entity provides both services intensive 
395.1 	residential treatment services under section 256B.0632 and assertive community treatment 
395.2 	under this section, one rate is established for the entity's intensive residential treatment
395.3 	services under section 256B.0632 and another rate for the entity's nonresidential assertive 
395.4 	community treatment services under this section. A provider is not eligible for payment 
395.5 	under this section without authorization from the commissioner. The commissioner shall 
395.6 	develop rates using the following criteria:
395.7 	(1) the provider's cost for services shall include direct services costs, other program 
395.8 	costs, and other costs determined as follows:
395.9 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
395.10 	payroll taxes, and training of direct service staff and service-related transportation;
395.11 	(ii) other program costs not included in item (i) must be determined as a specified 
395.12 	percentage of the direct services costs as determined by item (i). The percentage used shall 
395.13 	be determined by the commissioner based upon the average of percentages that represent 
395.14 	the relationship of other program costs to direct services costs among the entities that provide 
395.15 	similar services;
395.16 	(iii) physical plant costs calculated based on the percentage of space within the program 
395.17 	that is entirely devoted to treatment and programming. This does not include administrative 
395.18 	or residential space;
395.19 	(iv) assertive community treatment physical plant costs must be reimbursed as part of 
395.20 	the costs described in item (ii); and
395.21 	(v) subject to federal approval, up to an additional five percent of the total rate may be 
395.22 	added to the program rate as a quality incentive based upon the entity meeting performance 
395.23 	criteria specified by the commissioner;
395.24 	(2) actual cost is costs are defined as costs which are allowable, allocable, and reasonable, 
395.25 	and consistent with federal reimbursement requirements under Code of Federal Regulations, 
395.26 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
395.27 	Budget Circular Number A-122, relating to nonprofit entities;
395.28 	(3) the number of service units;
395.29 	(4) the degree to which clients will receive services other than services under this section
395.30 	or section 256B.0632; and
395.31 	(5) the costs of other services that will be separately reimbursed.
396.1 	(e) (d) The rate for intensive residential treatment services and assertive community 
396.2 	treatment must exclude the medical assistance room and board rate, as defined in section 
396.3 	256B.056, subdivision 5d, and services not covered under this section, such as partial 
396.4 	hospitalization, home care, and inpatient services.
396.5 	(f) Physician services that are not separately billed may be included in the rate to the 
396.6 	extent that a psychiatrist, or other health care professional providing physician services 
396.7 	within their scope of practice, is a member of the intensive residential treatment services 
396.8 	treatment team. Physician services, whether billed separately or included in the rate, may 
396.9 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
396.10 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
396.11 	is used to provide intensive residential treatment services.
396.12 	(g) (e) When services under this section are provided by an assertive community treatment 
396.13 	provider, case management functions must be an integral part of the team.
396.14 	(h) (f) The rate for a provider must not exceed the rate charged by that provider for the 
396.15 	same service to other payors.
396.16 	(i) (g) The rates for existing programs must be established prospectively based upon the 
396.17 	expenditures and utilization over a prior 12-month period using the criteria established in 
396.18 	paragraph (d) (c). The rates for new programs must be established based upon estimated 
396.19 	expenditures and estimated utilization using the criteria established in paragraph (d) (c).
396.20 	(j) (h) Effective for the rate years beginning on and after January 1, 2024, rates for 
396.21 	assertive community treatment, adult residential crisis stabilization services, and intensive 
396.22 	residential treatment services must be annually adjusted for inflation using the Centers for 
396.23 	Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter 
396.24 	of the calendar year before the rate year. The inflation adjustment must be based on the 
396.25 	12-month period from the midpoint of the previous rate year to the midpoint of the rate year 
396.26 	for which the rate is being determined. This paragraph expires upon federal approval.
396.27 	(i) Effective upon the expiration of paragraph (h), and effective for the rate years 
396.28 	beginning on and after January 1, 2024, rates for assertive community treatment services 
396.29 	must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
396.30 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
396.31 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
396.32 	of the previous rate year to the midpoint of the rate year for which the rate is being 
396.33 	determined.
397.1 	(k) (j) Entities who discontinue providing services must be subject to a settle-up process 
397.2 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
397.3 	event that the entity was paid more than the entity's actual costs plus any applicable 
397.4 	performance-related funding due the provider, the excess payment must be reimbursed to 
397.5 	the department. If a provider's revenue is less than actual allowed costs due to lower 
397.6 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
397.7 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
397.8 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
397.9 	of greater than five percent.
397.10 	(l) (k) A provider may request of the commissioner a review of any rate-setting decision 
397.11 	made under this subdivision.

397.12 	Sec. 3. Minnesota Statutes 2024, section 256B.0622, subdivision 11, is amended to read:
397.13 		Subd. 11.Sustainability grants. The commissioner may disburse grant funds directly 
397.14 	to intensive residential treatment services providers and assertive community treatment 
397.15 	providers to maintain access to these services.

397.16 	Sec. 4. Minnesota Statutes 2024, section 256B.0622, subdivision 12, is amended to read:
397.17 		Subd. 12.Start-up grants. The commissioner may, within available appropriations, 
397.18 	disburse grant funding to counties, Indian tribes, or mental health service providers to 
397.19 	establish additional assertive community treatment teams, intensive residential treatment 
397.20 	services, or crisis residential services.

397.21 	Sec. 5. [256B.0632] INTENSIVE RESIDENTIAL TREATMENT SERVICES.
397.22 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
397.23 	necessary, intensive residential treatment services when the services are provided by an 
397.24 	entity licensed under and meeting the standards in section 245I.23.
397.25 	(b) The provider entity must make reasonable and good faith efforts to report individual 
397.26 	client outcomes to the commissioner, using instruments and protocols approved by the 
397.27 	commissioner.
397.28 		Subd. 2.Provider entity licensure and contract requirements for intensive residential 
397.29 	treatment services. (a) The commissioner shall develop procedures for counties and 
397.30 	providers to submit other documentation as needed to allow the commissioner to determine 
397.31 	whether the standards in this section are met.
398.1 	(b) A provider entity must specify in the provider entity's application what geographic 
398.2 	area and populations will be served by the proposed program. A provider entity must 
398.3 	document that the capacity or program specialties of existing programs are not sufficient 
398.4 	to meet the service needs of the target population. A provider entity must submit evidence 
398.5 	of ongoing relationships with other providers and levels of care to facilitate referrals to and 
398.6 	from the proposed program.
398.7 	(c) A provider entity must submit documentation that the provider entity requested a 
398.8 	statement of need from each county board and Tribal authority that serves as a local mental 
398.9 	health authority in the proposed service area. The statement of need must specify if the local 
398.10 	mental health authority supports or does not support the need for the proposed program and 
398.11 	the basis for this determination. If a local mental health authority does not respond within 
398.12 	60 days of the receipt of the request, the commissioner shall determine the need for the 
398.13 	program based on the documentation submitted by the provider entity.
398.14 		Subd. 3.Medical assistance payment for intensive residential treatment services. (a) 
398.15 	Payment for intensive residential treatment services in this section shall be based on one 
398.16 	daily rate per provider inclusive of the following services received by an eligible client in 
398.17 	a given calendar day: all rehabilitative services under this section, staff travel time to provide 
398.18 	rehabilitative services under this section, and nonresidential crisis stabilization services 
398.19 	under section 256B.0624.
398.20 	(b) Except as indicated in paragraph (d), payment will not be made to more than one 
398.21 	entity for each client for services provided under this section on a given day. If services 
398.22 	under this section are provided by a team that includes staff from more than one entity, the 
398.23 	team must determine how to distribute the payment among the members.
398.24 	(c) Payment must not be made based solely on a court order to participate in intensive 
398.25 	residential treatment services. If a client has a court order to participate in the program or 
398.26 	to obtain assessment for treatment and follow treatment recommendations, payment under 
398.27 	this section must only be provided if the client is eligible for the service and the service is 
398.28 	determined to be medically necessary.
398.29 	(d) The commissioner shall determine one rate for each provider that will bill medical 
398.30 	assistance for intensive residential treatment services under this section. If a single entity 
398.31 	provides both intensive residential treatment services under this section and assertive 
398.32 	community treatment under section 256B.0622, one rate is established for the entity's 
398.33 	intensive residential treatment services under this section and another rate for the entity's 
398.34 	assertive community treatment services under section 256B.0622. A provider is not eligible 
399.1 	for payment under this section without authorization from the commissioner. The 
399.2 	commissioner shall develop rates using the following criteria:
399.3 	(1) the provider's cost for services shall include direct services costs, other program 
399.4 	costs, and other costs determined as follows:
399.5 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
399.6 	payroll taxes, and training of direct service staff and service-related transportation;
399.7 	(ii) other program costs not included in item (i) must be determined as a specified 
399.8 	percentage of the direct services costs as determined by item (i). The percentage used shall 
399.9 	be determined by the commissioner based upon the average of percentages that represent 
399.10 	the relationship of other program costs to direct services costs among the entities that provide 
399.11 	similar services;
399.12 	(iii) physical plant costs calculated based on the percentage of space within the program 
399.13 	that is entirely devoted to treatment and programming. This does not include administrative 
399.14 	or residential space; and
399.15 	(iv) subject to federal approval, up to an additional five percent of the total rate may be 
399.16 	added to the program rate as a quality incentive based upon the entity meeting performance 
399.17 	criteria specified by the commissioner;
399.18 	(2) actual costs are defined as costs which are allowable, allocable, and reasonable, and 
399.19 	consistent with federal reimbursement requirements under Code of Federal Regulations, 
399.20 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
399.21 	Budget Circular Number A-122, relating to nonprofit entities;
399.22 	(3) the number of services units;
399.23 	(4) the degree to which clients will receive services other than services under this section 
399.24 	or section 256B.0622; and
399.25 	(5) the costs of other services that will be separately reimbursed.
399.26 	(e) The rate for intensive residential treatment services must exclude the medical 
399.27 	assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services 
399.28 	not covered under this section, such as partial hospitalization, home care, and inpatient 
399.29 	services.
399.30 	(f) Physician services that are not separately billed may be included in the rate to the 
399.31 	extent that a psychiatrist, or other health care professional providing physician services 
399.32 	within their scope of practice, is a member of the intensive residential treatment services 
400.1 	treatment team. Physician services, whether billed separately or included in the rate, may 
400.2 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
400.3 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
400.4 	is used to provide intensive residential treatment services.
400.5 	(g) The rate for a provider must not exceed the rate charged by that provider for the 
400.6 	same service to other payors.
400.7 	(h) The rates for existing programs must be established prospectively based upon the 
400.8 	expenditures and utilization over a prior 12-month period using the criteria established in 
400.9 	paragraph (d). The rates for new programs must be established based upon estimated 
400.10 	expenditures and estimated utilization using the criteria established in paragraph (d).
400.11 	(i) Effective upon the expiration of section 256B.0622, subdivision 8, paragraph (h), 
400.12 	and effective for rate years beginning on and after January 1, 2024, rates for intensive 
400.13 	residential treatment services and adult residential crisis stabilization services must be 
400.14 	annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
400.15 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
400.16 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
400.17 	of the previous rate year to the midpoint of the rate year for which the rate is being 
400.18 	determined.
400.19 	(j) Entities who discontinue providing services must be subject to a settle-up process 
400.20 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
400.21 	event that the entity was paid more than the entity's actual costs plus any applicable 
400.22 	performance-related funding due the provider, the excess payment must be reimbursed to 
400.23 	the department. If a provider's revenue is less than actual allowed costs due to lower 
400.24 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
400.25 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
400.26 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
400.27 	of greater than five percent.
400.28 	(k) A provider may request of the commissioner a review of any rate-setting decision 
400.29 	made under this subdivision.
400.30 		Subd. 4.Provider enrollment; rate setting for county-operated entities. Counties 
400.31 	that employ their own staff to provide services under this section shall apply directly to the 
400.32 	commissioner for enrollment and rate setting. In this case, a county contract is not required.
401.1 		Subd. 5.Provider enrollment; rate setting for specialized program. A county contract 
401.2 	is not required for a provider proposing to serve a subpopulation of eligible clients under 
401.3 	the following circumstances:
401.4 	(1) the provider demonstrates that the subpopulation to be served requires a specialized 
401.5 	program which is not available from county-approved entities; and
401.6 	(2) the subpopulation to be served is of such a low incidence that it is not feasible to 
401.7 	develop a program serving a single county or regional group of counties.
401.8 		Subd. 6.Sustainability grants. The commissioner may disburse grant funds directly to 
401.9 	intensive residential treatment services providers to maintain access to these services.
401.10 		Subd. 7.Start-up grants. The commissioner may, within available appropriations, 
401.11 	disburse grant funding to counties, Indian Tribes, or mental health service providers to 
401.12 	establish additional intensive residential treatment services and residential crisis services.

401.13 	Sec. 6. REPEALER.
 401.14 	Minnesota Statutes 2024, section 256B.0622, subdivision 4, is repealed.

401.15 	ARTICLE 12
401.16 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
401.17 	TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES

401.18 	Section 1. Minnesota Statutes 2024, section 148F.11, subdivision 1, is amended to read:
401.19 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members of 
401.20 	other professions or occupations from performing functions for which they are qualified or 
401.21 	licensed. This exception includes, but is not limited to: licensed physicians; registered nurses; 
401.22 	licensed practical nurses; licensed psychologists and licensed psychological practitioners; 
401.23 	members of the clergy provided such services are provided within the scope of regular 
401.24 	ministries; American Indian medicine men and women; licensed attorneys; probation officers; 
401.25 	licensed marriage and family therapists; licensed social workers; social workers employed 
401.26 	by city, county, or state agencies; licensed professional counselors; licensed professional 
401.27 	clinical counselors; licensed school counselors; registered occupational therapists or 
401.28 	occupational therapy assistants; Upper Midwest Indian Council on Addictive Disorders 
401.29 	(UMICAD) certified counselors when providing services to Native American people; city, 
401.30 	county, or state employees when providing assessments or case management under Minnesota 
401.31 	Rules, chapter 9530; and staff persons providing co-occurring substance use disorder 
401.32 	treatment in adult mental health rehabilitative programs certified or licensed by the 
402.1 	Department of Human Services under section 245I.23, 256B.0622, or256B.0623, or 
402.2 	256B.0632.
402.3 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
402.4 	licensed by the Department of Human Services from discharging their duties as provided 
402.5 	in Minnesota Rules, chapter 9530.
402.6 	(c) Any person who is exempt from licensure under this section must not use a title 
402.7 	incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
402.8 	counselor" or otherwise hold himself or herself out to the public by any title or description 
402.9 	stating or implying that he or she is engaged in the practice of alcohol and drug counseling, 
402.10 	or that he or she is licensed to engage in the practice of alcohol and drug counseling, unless 
402.11 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the practice 
402.12 	of alcohol and drug counseling are not exempt from the board's jurisdiction solely by the 
402.13 	use of one of the titles in paragraph (a).

402.14 	Sec. 2. Minnesota Statutes 2024, section 245.4662, subdivision 1, is amended to read:
402.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
402.16 	the meanings given them.
402.17 	(b) "Community partnership" means a project involving the collaboration of two or more 
402.18 	eligible applicants.
402.19 	(c) "Eligible applicant" means an eligible county, Indian tribe, mental health service 
402.20 	provider, hospital, or community partnership. Eligible applicant does not include a 
402.21 	state-operated direct care and treatment facility or program under chapters 246 and 246C.
402.22 	(d) "Intensive residential treatment services" has the meaning given in section 256B.0622
402.23 	256B.0632.
402.24 	(e) "Metropolitan area" means the seven-county metropolitan area, as defined in section 
402.25 	473.121, subdivision 2.

402.26 	Sec. 3. Minnesota Statutes 2024, section 245.4906, subdivision 2, is amended to read:
402.27 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
402.28 	employs a mental health certified peer specialist qualified under section 245I.04, subdivision 
402.29 	10, and that provides services to individuals receiving assertive community treatment or 
402.30 	intensive residential treatment services under section 256B.0622, intensive residential 
402.31 	treatment services under section 256B.0632, adult rehabilitative mental health services 
402.32 	under section 256B.0623, or crisis response services under section 256B.0624.

403.1 	Sec. 4. Minnesota Statutes 2024, section 254B.04, subdivision 1a, is amended to read:
403.2 		Subd. 1a.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
403.3 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
403.4 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
403.5 	fund services. State money appropriated for this paragraph must be placed in a separate 
403.6 	account established for this purpose.
403.7 	(b) Persons with dependent children who are determined to be in need of substance use 
403.8 	disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in 
403.9 	need of chemical dependency treatment pursuant to a case plan under section 260C.201, 
403.10 	subdivision 6, or 260C.212, shall be assisted by the local agency to access needed treatment 
403.11 	services. Treatment services must be appropriate for the individual or family, which may 
403.12 	include long-term care treatment or treatment in a facility that allows the dependent children 
403.13 	to stay in the treatment facility. The county shall pay for out-of-home placement costs, if 
403.14 	applicable.
403.15 	(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or 
403.16 	MinnesotaCare is eligible for room and board services under section 254B.05, subdivision 
403.17 	5, paragraph (b), clause (9).
403.18 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
403.19 	the behavioral health fund when the client:
403.20 	(1) is eligible for MFIP as determined under chapter 142G;
403.21 	(2) is eligible for medical assistance as determined under Minnesota Rules, parts 
403.22 	9505.0010 to 9505.0150;
403.23 	(3) is eligible for general assistance, general assistance medical care, or work readiness 
403.24 	as determined under Minnesota Rules, parts 9500.1200 to 9500.1318; or
403.25 	(4) has income that is within current household size and income guidelines for entitled 
403.26 	persons, as defined in this subdivision and subdivision 7.
403.27 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
403.28 	a third-party payment source are eligible for the behavioral health fund if the third-party 
403.29 	payment source pays less than 100 percent of the cost of treatment services for eligible 
403.30 	clients.
403.31 	(f) A client is ineligible to have substance use disorder treatment services paid for with 
403.32 	behavioral health fund money if the client:
404.1 	(1) has an income that exceeds current household size and income guidelines for entitled 
404.2 	persons as defined in this subdivision and subdivision 7; or
404.3 	(2) has an available third-party payment source that will pay the total cost of the client's 
404.4 	treatment.
404.5 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
404.6 	is eligible for continued treatment service that is paid for by the behavioral health fund until 
404.7 	the treatment episode is completed or the client is re-enrolled in a state prepaid health plan 
404.8 	if the client:
404.9 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
404.10 	medical care; or
404.11 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
404.12 	agency under section 254B.04.
404.13 	(h) When a county commits a client under chapter 253B to a regional treatment center 
404.14 	for substance use disorder services and the client is ineligible for the behavioral health fund, 
404.15 	the county is responsible for the payment to the regional treatment center according to 
404.16 	section 254B.05, subdivision 4.
404.17 	(i) Persons enrolled in MinnesotaCare are eligible for room and board services when 
404.18 	provided through intensive residential treatment services and residential crisis services under 
404.19 	section 256B.0622 256B.0632.

404.20 	Sec. 5. Minnesota Statutes 2024, section 254B.05, subdivision 1a, is amended to read:
404.21 		Subd. 1a.Room and board provider requirements. (a) Vendors of room and board 
404.22 	are eligible for behavioral health fund payment if the vendor:
404.23 	(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals 
404.24 	while residing in the facility and provide consequences for infractions of those rules;
404.25 	(2) is determined to meet applicable health and safety requirements;
404.26 	(3) is not a jail or prison;
404.27 	(4) is not concurrently receiving funds under chapter 256I for the recipient;
404.28 	(5) admits individuals who are 18 years of age or older;
404.29 	(6) is registered as a board and lodging or lodging establishment according to section 
404.30 	157.17;
404.31 	(7) has awake staff on site whenever a client is present;
405.1 	(8) has staff who are at least 18 years of age and meet the requirements of section 
405.2 	245G.11, subdivision 1, paragraph (b);
405.3 	(9) has emergency behavioral procedures that meet the requirements of section 245G.16;
405.4 	(10) meets the requirements of section 245G.08, subdivision 5, if administering 
405.5 	medications to clients;
405.6 	(11) meets the abuse prevention requirements of section 245A.65, including a policy on 
405.7 	fraternization and the mandatory reporting requirements of section 626.557;
405.8 	(12) documents coordination with the treatment provider to ensure compliance with 
405.9 	section 254B.03, subdivision 2;
405.10 	(13) protects client funds and ensures freedom from exploitation by meeting the 
405.11 	provisions of section 245A.04, subdivision 13;
405.12 	(14) has a grievance procedure that meets the requirements of section 245G.15, 
405.13 	subdivision 2; and
405.14 	(15) has sleeping and bathroom facilities for men and women separated by a door that 
405.15 	is locked, has an alarm, or is supervised by awake staff.
405.16 	(b) Programs licensed according to Minnesota Rules, chapter 2960, are exempt from 
405.17 	paragraph (a), clauses (5) to (15).
405.18 	(c) Programs providing children's mental health crisis admissions and stabilization under 
405.19 	section 245.4882, subdivision 6, are eligible vendors of room and board.
405.20 	(d) Programs providing children's residential services under section 245.4882, except 
405.21 	services for individuals who have a placement under chapter 260C or 260D, are eligible 
405.22 	vendors of room and board.
405.23 	(e) Licensed programs providing intensive residential treatment services or residential 
405.24 	crisis stabilization services pursuant to section 256B.0622 or256B.0624or 256B.0632 are 
405.25 	eligible vendors of room and board and are exempt from paragraph (a), clauses (6) to (15).
405.26 	(f) A vendor that is not licensed as a residential treatment program must have a policy 
405.27 	to address staffing coverage when a client may unexpectedly need to be present at the room 
405.28 	and board site.

405.29 	Sec. 6. Minnesota Statutes 2024, section 256.478, subdivision 2, is amended to read:
405.30 		Subd. 2.Eligibility. An individual is eligible for the transition to community initiative 
405.31 	if the individual can demonstrate that current services are not capable of meeting individual 
406.1 	treatment and service needs that can be met in the community with support, and the individual 
406.2 	meets at least one of the following criteria:
406.3 	(1) the person meets the criteria under section 256B.092, subdivision 13, or 256B.49, 
406.4 	subdivision 24;
406.5 	(2) the person has met treatment objectives and no longer requires a hospital-level care, 
406.6 	residential-level care, or a secure treatment setting, but the person's discharge from the 
406.7 	Anoka Metro Regional Treatment Center, the Minnesota Forensic Mental Health Program, 
406.8 	the Child and Adolescent Behavioral Health Hospital program, a psychiatric residential 
406.9 	treatment facility under section 256B.0941, intensive residential treatment services under 
406.10 	section 256B.0622 256B.0632, children's residential services under section 245.4882, 
406.11 	juvenile detention facility, county supervised building, or a hospital would be substantially 
406.12 	delayed without additional resources available through the transitions to community initiative;
406.13 	(3) the person (i) is receiving customized living services reimbursed under section 
406.14 	256B.4914, 24-hour customized living services reimbursed under section 256B.4914, or 
406.15 	community residential services reimbursed under section 256B.4914; (ii) expresses a desire 
406.16 	to move; and (iii) has received approval from the commissioner; or
406.17 	(4) the person can demonstrate that the person's needs are beyond the scope of current 
406.18 	service designs and grant funding can support the inclusion of additional supports for the 
406.19 	person to access appropriate treatment and services in the least restrictive environment.

406.20 	Sec. 7. Minnesota Statutes 2024, section 256B.0615, subdivision 1, is amended to read:
406.21 		Subdivision 1.Scope. Medical assistance covers mental health certified peer specialist 
406.22 	services, as established in subdivision 2, if provided to recipients who are eligible for services 
406.23 	under sections 256B.0622, 256B.0623, and256B.0624, and 256B.0632and are provided 
406.24 	by a mental health certified peer specialist who has completed the training under subdivision 
406.25 	5 and is qualified according to section 245I.04, subdivision 10.

406.26 	Sec. 8. Minnesota Statutes 2024, section 256B.0615, subdivision 3, is amended to read:
406.27 		Subd. 3.Eligibility. Peer support services may be made available to consumers of (1) 
406.28 	intensive residential treatment services under section 256B.0622 256B.0632; (2) adult 
406.29 	rehabilitative mental health services under section 256B.0623; and (3) crisis stabilization 
406.30 	and mental health mobile crisis intervention services under section 256B.0624.

407.1 	Sec. 9. Minnesota Statutes 2024, section 256B.82, is amended to read:
407.2 	256B.82 PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE 
407.3 	SERVICES.
407.4 	Medical assistance and MinnesotaCare prepaid health plans may include coverage for 
407.5 	adult mental health rehabilitative services under section 256B.0623, intensive rehabilitative 
407.6 	services under section 256B.0622 256B.0632, and adult mental health crisis response services 
407.7 	under section 256B.0624, beginning January 1, 2005.
407.8 	By January 15, 2004, the commissioner shall report to the legislature how these services 
407.9 	should be included in prepaid plans. The commissioner shall consult with mental health 
407.10 	advocates, health plans, and counties in developing this report. The report recommendations 
407.11 	must include a plan to ensure coordination of these services between health plans and 
407.12 	counties, assure recipient access to essential community providers, and monitor the health 
407.13 	plans' delivery of services through utilization review and quality standards.

407.14 	Sec. 10. Minnesota Statutes 2024, section 256D.44, subdivision 5, is amended to read:
407.15 		Subd. 5.Special needs. (a) In addition to the state standards of assistance established 
407.16 	in subdivisions 1 to 4, payments are allowed for the following special needs of recipients 
407.17 	of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
407.18 	center, or a setting authorized to receive housing support payments under chapter 256I.
407.19 	(b) The county agency shall pay a monthly allowance for medically prescribed diets if 
407.20 	the cost of those additional dietary needs cannot be met through some other maintenance 
407.21 	benefit. The need for special diets or dietary items must be prescribed by a licensed physician, 
407.22 	advanced practice registered nurse, or physician assistant. Costs for special diets shall be 
407.23 	determined as percentages of the allotment for a one-person household under the thrifty 
407.24 	food plan as defined by the United States Department of Agriculture. The types of diets and 
407.25 	the percentages of the thrifty food plan that are covered are as follows:
407.26 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
407.27 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of 
407.28 	thrifty food plan;
407.29 	(3) controlled protein diet, less than 40 grams and requires special products, 125 percent 
407.30 	of thrifty food plan;
407.31 	(4) low cholesterol diet, 25 percent of thrifty food plan;
407.32 	(5) high residue diet, 20 percent of thrifty food plan;
408.1 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
408.2 	(7) gluten-free diet, 25 percent of thrifty food plan;
408.3 	(8) lactose-free diet, 25 percent of thrifty food plan;
408.4 	(9) antidumping diet, 15 percent of thrifty food plan;
408.5 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
408.6 	(11) ketogenic diet, 25 percent of thrifty food plan.
408.7 	(c) Payment for nonrecurring special needs must be allowed for necessary home repairs 
408.8 	or necessary repairs or replacement of household furniture and appliances using the payment 
408.9 	standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as 
408.10 	other funding sources are not available.
408.11 	(d) A fee for guardian or conservator service is allowed at a reasonable rate negotiated 
408.12 	by the county or approved by the court. This rate shall not exceed five percent of the 
408.13 	assistance unit's gross monthly income up to a maximum of $100 per month. If the guardian 
408.14 	or conservator is a member of the county agency staff, no fee is allowed.
408.15 	(e) The county agency shall continue to pay a monthly allowance of $68 for restaurant 
408.16 	meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and 
408.17 	who eats two or more meals in a restaurant daily. The allowance must continue until the 
408.18 	person has not received Minnesota supplemental aid for one full calendar month or until 
408.19 	the person's living arrangement changes and the person no longer meets the criteria for the 
408.20 	restaurant meal allowance, whichever occurs first.
408.21 	(f) A fee equal to the maximum monthly amount allowed by the Social Security 
408.22 	Administration is allowed for representative payee services provided by an agency that 
408.23 	meets the requirements under SSI regulations to charge a fee for representative payee 
408.24 	services. This special need is available to all recipients of Minnesota supplemental aid 
408.25 	regardless of their living arrangement.
408.26 	(g)(1) Notwithstanding the language in this subdivision, an amount equal to one-half of 
408.27 	the maximum federal Supplemental Security Income payment amount for a single individual 
408.28 	which is in effect on the first day of July of each year will be added to the standards of 
408.29 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as 
408.30 	in need of housing assistance and are:
409.1 	(i) relocating from an institution, a setting authorized to receive housing support under 
409.2 	chapter 256I, or an adult mental health residential treatment program under section 256B.0622
409.3 	256B.0632;
409.4 	(ii) eligible for personal care assistance under section 256B.0659; or
409.5 	(iii) home and community-based waiver recipients living in their own home or rented 
409.6 	or leased apartment.
409.7 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter 
409.8 	needy benefit under this paragraph is considered a household of one. An eligible individual 
409.9 	who receives this benefit prior to age 65 may continue to receive the benefit after the age 
409.10 	of 65.
409.11 	(3) "Housing assistance" means that the assistance unit incurs monthly shelter costs that 
409.12 	exceed 40 percent of the assistance unit's gross income before the application of this special 
409.13 	needs standard. "Gross income" for the purposes of this section is the applicant's or recipient's 
409.14 	income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 
409.15 	3, paragraph (a) or (b), whichever is greater. A recipient of a federal or state housing subsidy, 
409.16 	that limits shelter costs to a percentage of gross income, shall not be considered in need of 
409.17 	housing assistance for purposes of this paragraph.

409.18 	ARTICLE 13
409.19 	BACKGROUND STUDIES

409.20 	Section 1. Minnesota Statutes 2024, section 245C.13, subdivision 2, is amended to read:
409.21 		Subd. 2.Activities pending completion of background study. The subject of a 
409.22 	background study may not perform any activity requiring a background study under 
409.23 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
409.24 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
409.25 	(1) a notice of the study results under section 245C.17 stating that:
409.26 	(i) the individual is not disqualified; or
409.27 	(ii) more time is needed to complete the study but the individual is not required to be 
409.28 	removed from direct contact or access to people receiving services prior to completion of 
409.29 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
409.30 	that more time is needed to complete the study must also indicate whether the individual is 
409.31 	required to be under continuous direct supervision prior to completion of the background 
409.32 	study. When more time is necessary to complete a background study of an individual 
410.1 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
410.2 	the individual may not work in the facility or setting regardless of whether or not the 
410.3 	individual is supervised;
410.4 	(2) a notice that a disqualification has been set aside under section 245C.23; or
410.5 	(3) a notice that a variance has been granted related to the individual under section 
410.6 	245C.30.
410.7 	(b) For a background study affiliated with a licensed child care center or certified 
410.8 	license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), 
410.9 	must not be issued until the commissioner receives a qualifying result for the individual for 
410.10 	the fingerprint-based national criminal history record check or the fingerprint-based criminal 
410.11 	history information from the Bureau of Criminal Apprehension. The notice must require 
410.12 	the individual to be under continuous direct supervision prior to completion of the remainder 
410.13 	of the background study except as permitted in subdivision 3.
410.14 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
410.15 	(1) being issued a license;
410.16 	(2) living in the household where the licensed program will be provided;
410.17 	(3) providing direct contact services to persons served by a program unless the subject 
410.18 	is under continuous direct supervision;
410.19 	(4) having access to persons receiving services if the background study was completed 
410.20 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
410.21 	(5), or (6), unless the subject is under continuous direct supervision;
410.22 	(5) for licensed child care centers and certified license-exempt child care centers, 
410.23 	providing direct contact services to persons served by the program;
410.24 	(6) for children's residential facilities or foster residence settings, working in the facility 
410.25 	or setting; or
410.26 	(7) for background studies affiliated with a personal care provider organization, except 
410.27 	as provided in section 245C.03, subdivision 3b, before a personal care assistant provides 
410.28 	services, the personal care assistance provider agency must initiate a background study of 
410.29 	the personal care assistant under this chapter and the personal care assistance provider 
410.30 	agency must have received a notice from the commissioner that the personal care assistant 
410.31 	is:
410.32 	(i) not disqualified under section 245C.14; or
411.1 	(ii) disqualified, but the personal care assistant has received a set aside of the 
411.2 	disqualification under section 245C.22.

411.3 	EFFECTIVE DATE. This section is effective January 15, 2026.

411.4 	Sec. 2. Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision to 
411.5 	read:
411.6 		Subd. 6.Disqualification from owning, operating, or billing. The commissioner shall 
411.7 	disqualify an individual who is the subject of a background study from any position involving 
411.8 	ownership, management, or control of a program or billing activities if a background study 
411.9 	completed under this chapter shows a violation of section 142A.12, 245.095, or 256B.064.

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

411.11 	Sec. 3. Minnesota Statutes 2024, section 245C.15, is amended by adding a subdivision to 
411.12 	read:
411.13 		Subd. 4c.Two-year disqualification. An individual is disqualified under section 
411.14 	245C.14, subdivision 6, if less than two years has passed since a determination that the 
411.15 	individual violated section 142A.12, 245.095, or 256B.064.

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

411.17 	ARTICLE 14
411.18 	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY

411.19 	Section 1. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
411.20 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
411.21 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
411.22 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
411.23 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
411.24 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
411.25 	shall not be disclosed except:
411.26 	(1) pursuant to section 13.05;
411.27 	(2) pursuant to statute or valid court order;
411.28 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
411.29 	preparation of defense;
412.1 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
412.2 	state, or federal government, including a law enforcement officer or attorney in the 
412.3 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
412.4 	commissioner of human services or commissioner of children, youth, and families determines 
412.5 	that disclosure may compromise a Department of Human Services or Department of Children, 
412.6 	Youth, and Families ongoing investigation; or
412.7 	(5) to provide notices required or permitted by statute.
412.8 	The data referred to in this subdivision shall be classified as public data upon submission 
412.9 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
412.10 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
412.11 	(b) Notwithstanding any other provision in law, the commissioner of human services 
412.12 	shall provide all active and inactive investigative data, including the name of the reporter 
412.13 	of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for 
412.14 	mental health and developmental disabilities upon the request of the ombudsman.
412.15 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
412.16 	by the commissioner of human services of possible overpayments of public funds to a service 
412.17 	provider or recipient or the reduction or withholding of payments may be disclosed if the 
412.18 	commissioner determines that it will not compromise the investigation.

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

412.20 	Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
412.21 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
412.22 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
412.23 	individual, or associated entity in any program administered by the commissioner if the 
412.24 	commissioner determines:
412.25 	(1) there is a credible allegation of fraud for which an investigation is pending for a 
412.26 	program administered by a Minnesota state or federal agency.;
412.27 	(2) the individual, the entity, or an associated individual or entity was convicted of a 
412.28 	crime charged in state or federal court with an offense that involves fraud or theft against 
412.29 	a program administered by the commissioner or another state or federal agency. For purposes 
412.30 	of this subdivision, "convicted" means a judgment of conviction has been entered by a 
412.31 	federal, state, or local court, regardless of whether an appeal from the judgment is pending, 
412.32 	and includes a stay of adjudication, a court-ordered diversion program, or a plea of guilty 
412.33 	or nolo contendere;
413.1 	(3) the provider is operating after a state or federal agency orders the suspension, 
413.2 	revocation, or decertification of the provider's license;
413.3 	(4) the provider, vendor, associated individual, or associated entity, including those 
413.4 	receiving funds under any contract or registered program, has a background study 
413.5 	disqualification under chapter 245C that has not been set aside and for which no variance 
413.6 	has been issued, except for a disqualification under sections 245C.14, subdivision 5, and 
413.7 	245C.15, subdivision 4c; or
413.8 	(5) by a preponderance of the evidence that the provider, vendor, individual, associated 
413.9 	individual, or associated entity intentionally provided materially false information on the 
413.10 	provider's billing forms.
413.11 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
413.12 	that has been verified by the commissioner from any source, including but not limited to:
413.13 	(1) fraud hotline complaints;
413.14 	(2) claims data mining;
413.15 	(3) patterns identified through provider audits, civil false claims cases, and law 
413.16 	enforcement investigations; and
413.17 	(4) court filings and other legal documents, including but not limited to police reports, 
413.18 	complaints, indictments, informations, affidavits, declarations, and search warrants.
413.19 	(c) The commissioner must send notice of the withholding of payments within five days 
413.20 	of taking such action. The notice must:
413.21 	(1) state that payments are being withheld according to this subdivision;
413.22 	(2) set forth the general allegations related to the withholding action, except the notice 
413.23 	need not disclose specific information concerning an ongoing investigation;
413.24 	(3) state that the withholding is for a temporary period and cite the circumstances under 
413.25 	which the withholding will be terminated; and
413.26 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
413.27 	of the right to submit written evidence to contest the withholding action for consideration 
413.28 	by the commissioner.
413.29 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
413.30 	individual, associated individual, or associated entity has a right to request administrative 
413.31 	reconsideration. A request for administrative reconsideration must be made in writing, state 
413.32 	with specificity the reasons the payment withholding decision is in error, and include 
414.1 	documents to support the request. Within 60 days from receipt of the request, the 
414.2 	commissioner shall judiciously review allegations, facts, evidence available to the 
414.3 	commissioner, and information submitted by the provider, vendor, individual, associated 
414.4 	individual, or associated entity to determine whether the payment withholding should remain 
414.5 	in place.
414.6 	(e) The commissioner shall stop withholding payments if the commissioner determines 
414.7 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
414.8 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
414.9 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
414.10 	vendor, individual, associated individual, or associated entity.
414.11 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
414.12 	section 256.045 or chapter 14.

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

414.14 	Sec. 3. Minnesota Statutes 2024, section 245.095, is amended by adding a subdivision to 
414.15 	read:
414.16 		Subd. 6.Data practices. The commissioner may exchange information, including claims 
414.17 	data, with state or federal agencies, professional boards, departments, or programs for the 
414.18 	purpose of investigating or prosecuting a criminal, civil, or administrative proceeding related 
414.19 	to suspected fraud or exclusion from any program administered by a state or federal agency.

414.20 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
414.21 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
414.22 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
414.23 	application must be made on the forms and in the manner prescribed by the commissioner. 
414.24 	The commissioner shall provide the applicant with instruction in completing the application 
414.25 	and provide information about the rules and requirements of other state agencies that affect 
414.26 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
414.27 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
414.28 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
414.29 	this chapter that is owned by another license holder must apply for a license under this 
414.30 	chapter and comply with the application procedures in this section and section 245A.043.
414.31 	The commissioner shall act on the application within 90 working days after a complete 
414.32 	application and any required reports have been received from other state agencies or 
415.1 	departments, counties, municipalities, or other political subdivisions. The commissioner 
415.2 	shall not consider an application to be complete until the commissioner receives all of the 
415.3 	required information. If the applicant or a controlling individual is the subject of a pending 
415.4 	administrative, civil, or criminal investigation, the application is not complete until the 
415.5 	investigation has closed or the related legal proceedings are complete.
415.6 	When the commissioner receives an application for initial licensure that is incomplete 
415.7 	because the applicant failed to submit required documents or that is substantially deficient 
415.8 	because the documents submitted do not meet licensing requirements, the commissioner 
415.9 	shall provide the applicant written notice that the application is incomplete or substantially 
415.10 	deficient. In the written notice to the applicant the commissioner shall identify documents 
415.11 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
415.12 	that is substantially complete. An applicant's failure to submit a substantially complete 
415.13 	application after receiving notice from the commissioner is a basis for license denial under 
415.14 	section 245A.043.
415.15 	(b) An application for licensure must identify all controlling individuals as defined in 
415.16 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
415.17 	agent. The application must be signed by the authorized agent and must include the authorized 
415.18 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
415.19 	application for licensure, the authorized agent consents to electronic communication with 
415.20 	the commissioner throughout the application process. The authorized agent must be 
415.21 	authorized to accept service on behalf of all of the controlling individuals. A government 
415.22 	entity that holds multiple licenses under this chapter may designate one authorized agent 
415.23 	for all licenses issued under this chapter or may designate a different authorized agent for 
415.24 	each license. Service on the authorized agent is service on all of the controlling individuals. 
415.25 	It is not a defense to any action arising under this chapter that service was not made on each 
415.26 	controlling individual. The designation of a controlling individual as the authorized agent 
415.27 	under this paragraph does not affect the legal responsibility of any other controlling individual 
415.28 	under this chapter.
415.29 	(c) An applicant or license holder must have a policy that prohibits license holders, 
415.30 	employees, subcontractors, and volunteers, when directly responsible for persons served 
415.31 	by the program, from abusing prescription medication or being in any manner under the 
415.32 	influence of a chemical that impairs the individual's ability to provide services or care. The 
415.33 	license holder must train employees, subcontractors, and volunteers about the program's 
415.34 	drug and alcohol policy.
416.1 	(d) An applicant and license holder must have a program grievance procedure that permits 
416.2 	persons served by the program and their authorized representatives to bring a grievance to 
416.3 	the highest level of authority in the program.
416.4 	(e) The commissioner may limit communication during the application process to the 
416.5 	authorized agent or the controlling individuals identified on the license application and for 
416.6 	whom a background study was initiated under chapter 245C. Upon implementation of the 
416.7 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
416.8 	manner prescribed by the commissioner. The commissioner may require the applicant, 
416.9 	except for child foster care, to demonstrate competence in the applicable licensing 
416.10 	requirements by successfully completing a written examination. The commissioner may 
416.11 	develop a prescribed written examination format.
416.12 	(f) When an applicant is an individual, the applicant must provide:
416.13 	(1) the applicant's taxpayer identification numbers including the Social Security number 
416.14 	or Minnesota tax identification number, and federal employer identification number if the 
416.15 	applicant has employees;
416.16 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
416.17 	of state that includes the complete business name, if any;
416.18 	(3) if doing business under a different name, the doing business as (DBA) name, as 
416.19 	registered with the secretary of state;
416.20 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
416.21 	Minnesota Provider Identifier (UMPI) number; and
416.22 	(5) at the request of the commissioner, the notarized signature of the applicant or 
416.23 	authorized agent.
416.24 	(g) When an applicant is an organization, the applicant must provide:
416.25 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
416.26 	identification number and federal employer identification number;
416.27 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
416.28 	of state that includes the complete business name, and if doing business under a different 
416.29 	name, the doing business as (DBA) name, as registered with the secretary of state;
416.30 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
416.31 	individuals, including all officers, owners, and managerial officials as defined in section 
417.1 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
417.2 	for each controlling individual;
417.3 	(4) if applicable, the applicant's NPI number and UMPI number;
417.4 	(5) the documents that created the organization and that determine the organization's 
417.5 	internal governance and the relations among the persons that own the organization, have 
417.6 	an interest in the organization, or are members of the organization, in each case as provided 
417.7 	or authorized by the organization's governing statute, which may include a partnership 
417.8 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
417.9 	or comparable documents as provided in the organization's governing statute; and
417.10 	(6) the notarized signature of the applicant or authorized agent.
417.11 	(h) When the applicant is a government entity, the applicant must provide:
417.12 	(1) the name of the government agency, political subdivision, or other unit of government 
417.13 	seeking the license and the name of the program or services that will be licensed;
417.14 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
417.15 	identification number and federal employer identification number;
417.16 	(3) a letter signed by the manager, administrator, or other executive of the government 
417.17 	entity authorizing the submission of the license application; and
417.18 	(4) if applicable, the applicant's NPI number and UMPI number.
417.19 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
417.20 	applicant or license holder must acknowledge on the form provided by the commissioner 
417.21 	if the applicant or license holder elects to receive any public funding reimbursement from 
417.22 	the commissioner for services provided under the license that:
417.23 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
417.24 	or registration requirements for receipt of public funding may be monitored by the 
417.25 	commissioner as part of a licensing investigation or licensing inspection; and
417.26 	(2) noncompliance with the provider enrollment agreement or registration requirements 
417.27 	for receipt of public funding that is identified through a licensing investigation or licensing 
417.28 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
417.29 	reimbursement for a service, may result in:
417.30 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
417.31 	section 245A.07;
418.1 	(ii) nonpayment of claims submitted by the license holder for public program 
418.2 	reimbursement;
418.3 	(iii) recovery of payments made for the service;
418.4 	(iv) disenrollment in the public payment program; or
418.5 	(v) other administrative, civil, or criminal penalties as provided by law.

418.6 	Sec. 5. Minnesota Statutes 2024, section 245A.05, is amended to read:
418.7 	245A.05 DENIAL OF APPLICATION.
418.8 	(a) The commissioner may deny a license if an applicant or controlling individual:
418.9 	(1) fails to submit a substantially complete application after receiving notice from the 
418.10 	commissioner under section 245A.04, subdivision 1;
418.11 	(2) fails to comply with applicable laws or rules;
418.12 	(3) knowingly withholds relevant information from or gives false or misleading 
418.13 	information to the commissioner in connection with an application for a license or during 
418.14 	an investigation;
418.15 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
418.16 	variance has been granted;
418.17 	(5) has an individual living in the household who received a background study under 
418.18 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
418.19 	has not been set aside under section 245C.22, and no variance has been granted;
418.20 	(6) is associated with an individual who received a background study under section 
418.21 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
418.22 	children or vulnerable adults, and who has a disqualification that has not been set aside 
418.23 	under section 245C.22, and no variance has been granted;
418.24 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
418.25 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
418.26 	6;
418.27 	(9) has a history of noncompliance as a license holder or controlling individual with 
418.28 	applicable laws or rules, including but not limited to this chapter and chapters 142E and 
418.29 	245C; or
418.30 	(10) is prohibited from holding a license according to section 245.095.; or
419.1 	(11) is the subject of a pending administrative, civil, or criminal investigation.
419.2 	(b) An applicant whose application has been denied by the commissioner must be given 
419.3 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
419.4 	must be given by certified mail, by personal service, or through the provider licensing and 
419.5 	reporting hub. The notice must state the reasons the application was denied and must inform 
419.6 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
419.7 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
419.8 	commissioner in writing by certified mail, by personal service, or through the provider 
419.9 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
419.10 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
419.11 	an appeal request is made by personal service, it must be received by the commissioner 
419.12 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
419.13 	through the provider hub, the appeal must be received by the commissioner within 20 
419.14 	calendar days from the date the commissioner issued the order through the hub. Section 
419.15 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

419.16 	Sec. 6. Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:
419.17 		Subd. 2.Temporary immediate suspension. (a) The commissioner shall act immediately 
419.18 	to temporarily suspend a license issued under this chapter if:
419.19 	(1) the license holder's or controlling individual's actions or failure to comply with 
419.20 	applicable law or rule, or the actions of other individuals or conditions in the program, pose 
419.21 	an imminent risk of harm to the health, safety, or rights of persons served by the program;
419.22 	(2) while the program continues to operate pending an appeal of an order of revocation, 
419.23 	the commissioner identifies one or more subsequent violations of law or rule which may 
419.24 	adversely affect the health or safety of persons served by the program; or
419.25 	(3) the license holder or controlling individual is criminally charged in state or federal 
419.26 	court with an offense that involves fraud or theft against a program administered by the 
419.27 	commissioner a state or federal agency.
419.28 	(b) No state funds shall be made available or be expended by any agency or department 
419.29 	of state, county, or municipal government for use by a license holder regulated under this 
419.30 	chapter while a license issued under this chapter is under immediate suspension. A notice 
419.31 	stating the reasons for the immediate suspension and informing the license holder of the 
419.32 	right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 
419.33 	1400.8612, must be delivered by personal service to the address shown on the application 
420.1 	or the last known address of the license holder. The license holder may appeal an order 
420.2 	immediately suspending a license. The appeal of an order immediately suspending a license 
420.3 	must be made in writing by certified mail, personal service, or other means expressly set 
420.4 	forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the 
420.5 	commissioner within five calendar days after the license holder receives notice that the 
420.6 	license has been immediately suspended. If a request is made by personal service, it must 
420.7 	be received by the commissioner within five calendar days after the license holder received 
420.8 	the order. A license holder and any controlling individual shall discontinue operation of the 
420.9 	program upon receipt of the commissioner's order to immediately suspend the license.
420.10 	(c) The commissioner may act immediately to temporarily suspend a license issued 
420.11 	under this chapter if the license holder or controlling individual is the subject of a pending 
420.12 	administrative, civil, or criminal investigation or subject to an administrative or civil action 
420.13 	related to fraud against a program administered by a state or federal agency.

420.14 	Sec. 7. Minnesota Statutes 2024, section 254B.06, is amended by adding a subdivision to 
420.15 	read:
420.16 		Subd. 5.Prohibition of duplicative claim submission. (a) For time-based claims, 
420.17 	submissions must follow the guidelines in the Centers for Medicare and Medicaid Services' 
420.18 	Healthcare Common Procedure Coding System and the American Medical Association's 
420.19 	Current Procedural Terminology to determine the appropriate units of time to report.
420.20 	(b) More than half the duration of a time-based code must be spent performing the service 
420.21 	to be eligible under this section. Any provision of service during the remaining balance of 
420.22 	the unit of time is not eligible for any other claims submission and would be considered a 
420.23 	duplicative claim submission.
420.24 	(c) A provider may only round up to the next whole number of service units on a 
420.25 	submitted claim when more than one and one-half times the defined value of the code has 
420.26 	occurred and no additional time increment code exists.

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

420.28 	Sec. 8. Minnesota Statutes 2024, section 256.983, subdivision 4, is amended to read:
420.29 		Subd. 4.Funding. (a) County and Tribal agency reimbursement shall be made through 
420.30 	the settlement provisions applicable to the Supplemental Nutrition Assistance Program 
420.31 	(SNAP), MFIP, child care assistance programs, the medical assistance program, and other 
420.32 	federal and state-funded programs.
421.1 	(b) The commissioners will maintain program compliance if for any three consecutive 
421.2 	month period quarter, a county or Tribal agency fails to comply with fraud prevention 
421.3 	investigation program guidelines, or fails to meet the cost-effectiveness standards developed 
421.4 	by the commissioners. This result is contingent on the commissioners providing written 
421.5 	notice, including an offer of technical assistance, within 30 days of the end of the third or 
421.6 	subsequent month quarter of noncompliance. The county or Tribal agency shall be required 
421.7 	to submit a corrective action plan to the commissioners within 30 days of receipt of a notice 
421.8 	of noncompliance. Failure to submit a corrective action plan or, continued deviation from 
421.9 	standards of more than ten percent after submission of a corrective action plan, will result 
421.10 	in denial of funding for each subsequent month, or billing the county or Tribal agency for 
421.11 	fraud prevention investigation (FPI) service provided by the commissioners, or reallocation 
421.12 	of program grant funds, or investigative resources, or both, to other counties or Tribal 
421.13 	agencies. The denial of funding shall apply to the general settlement received by the county 
421.14 	or Tribal agency on a quarterly basis and shall not reduce the grant amount applicable to 
421.15 	the FPI project.

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

421.17 	Sec. 9. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
421.18 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
421.19 	screening activities as required by Code of Federal Regulations, title 42, section 455, subpart 
421.20 	E. A provider must enroll each provider-controlled location where direct services are 
421.21 	provided. The commissioner may deny a provider's incomplete application if a provider 
421.22 	fails to respond to the commissioner's request for additional information within 60 days of 
421.23 	the request. The commissioner must conduct a background study under chapter 245C, 
421.24 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
421.25 	(1) to (5), for a provider described in this paragraph. The background study requirement 
421.26 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
421.27 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
421.28 	(a), clauses (1) to (5).
421.29 	(b) The commissioner shall revalidate each:
421.30 	(1) each provider under this subdivision at least once every five years; and
421.31 	(2) each personal care assistance agency under this subdivision once every three years.; 
421.32 	and
422.1 	(3) at the commissioner's discretion, any other Medicaid-only provider type the 
422.2 	commissioner deems "high risk" under this subdivision once every three years.
422.3 	(c) The commissioner shall conduct revalidation as follows:
422.4 	(1) provide 30-day notice of the revalidation due date including instructions for 
422.5 	revalidation and a list of materials the provider must submit;
422.6 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
422.7 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
422.8 	days from the notification date to comply; and
422.9 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
422.10 	notice of termination and immediately suspend the provider's ability to bill. The provider 
422.11 	does not have the right to appeal suspension of ability to bill.
422.12 	(d) If a provider fails to comply with any individual provider requirement or condition 
422.13 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
422.14 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
422.15 	to an administrative appeal.
422.16 	(e) Correspondence and notifications, including notifications of termination and other 
422.17 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
422.18 	does not apply to correspondences and notifications related to background studies.
422.19 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
422.20 	that a provider is designated "high-risk," the commissioner may withhold payment from 
422.21 	providers within that category upon initial enrollment for a 90-day period. The withholding 
422.22 	for each provider must begin on the date of the first submission of a claim.
422.23 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
422.24 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
422.25 	licensed as an assisted living facility under chapter 144G and has a home and 
422.26 	community-based services designation on the home care license under section 144A.484, 
422.27 	must designate an individual as the entity's compliance officer. The compliance officer 
422.28 	must:
422.29 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
422.30 	regulations and to prevent inappropriate claims submissions;
422.31 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
422.32 	provider entity including billers, on the policies and procedures under clause (1);
423.1 	(3) respond to allegations of improper conduct related to the provision or billing of 
423.2 	medical assistance services, and implement action to remediate any resulting problems;
423.3 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
423.4 	regulations;
423.5 	(5) promptly report to the commissioner any identified violations of medical assistance 
423.6 	laws or regulations; and
423.7 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
423.8 	overpayment, report the overpayment to the commissioner and make arrangements with 
423.9 	the commissioner for the commissioner's recovery of the overpayment.
423.10 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
423.11 	provider within a particular industry sector or category establish a compliance program that 
423.12 	contains the core elements established by the Centers for Medicare and Medicaid Services.
423.13 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
423.14 	for a period of not more than one year, if the provider fails to maintain and, upon request 
423.15 	from the commissioner, provide access to documentation relating to written orders or requests 
423.16 	for payment for durable medical equipment, certifications for home health services, or 
423.17 	referrals for other items or services written or ordered by such provider, when the 
423.18 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
423.19 	to maintain documentation or provide access to documentation on more than one occasion. 
423.20 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
423.21 	under the provisions of section 256B.064.
423.22 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
423.23 	if the individual or entity has been terminated from participation in Medicare or under the 
423.24 	Medicaid program or Children's Health Insurance Program of any other state. The 
423.25 	commissioner may exempt a rehabilitation agency from termination or denial that would 
423.26 	otherwise be required under this paragraph, if the agency:
423.27 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
423.28 	to the Medicare program;
423.29 	(2) meets all other applicable Medicare certification requirements based on an on-site 
423.30 	review completed by the commissioner of health; and
423.31 	(3) serves primarily a pediatric population.
423.32 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
423.33 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
424.1 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
424.2 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
424.3 	designated contractors to conduct unannounced on-site inspections of any provider location. 
424.4 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
424.5 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
424.6 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
424.7 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
424.8 	The commissioner's designations are not subject to administrative appeal.
424.9 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
424.10 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
424.11 	provider of five percent or higher, consent to criminal background checks, including 
424.12 	fingerprinting, when required to do so under state law or by a determination by the 
424.13 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
424.14 	high-risk for fraud, waste, or abuse.
424.15 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
424.16 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
424.17 	meeting the durable medical equipment provider and supplier definition in clause (3), 
424.18 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
424.19 	annually renewed and designates the Minnesota Department of Human Services as the 
424.20 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
424.21 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
424.22 	federally qualified health center, a home health agency, the Indian Health Service, a 
424.23 	pharmacy, and a rural health clinic.
424.24 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
424.25 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
424.26 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
424.27 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
424.28 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
424.29 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
424.30 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
424.31 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
424.32 	agency decision. An agency decision is final when the right to appeal the debt has been 
424.33 	exhausted or the time to appeal has expired under section 256B.064.
424.34 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
424.35 	purchase medical equipment or supplies for sale or rental to the general public and is able 
425.1 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
425.2 	sale or rental.
425.3 	(m) The Department of Human Services may require a provider to purchase a surety 
425.4 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
425.5 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
425.6 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
425.7 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
425.8 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
425.9 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
425.10 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
425.11 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
425.12 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
425.13 	maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

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

425.15 	Sec. 10. Minnesota Statutes 2024, section 256B.0659, subdivision 21, is amended to read:
425.16 		Subd. 21.Requirements for provider enrollment of personal care assistance provider 
425.17 	agencies. (a) All personal care assistance provider agencies must provide, at the time of 
425.18 	enrollment, reenrollment, and revalidation as a personal care assistance provider agency in 
425.19 	a format determined by the commissioner, information and documentation that includes, 
425.20 	but is not limited to, the following:
425.21 	(1) the personal care assistance provider agency's current contact information including 
425.22 	address, telephone number, and email address;
425.23 	(2) proof of surety bond coverage for each business location providing services. Upon 
425.24 	new enrollment, or if the provider's Medicaid revenue in the previous calendar year is up 
425.25 	to and including $300,000, the provider agency must purchase a surety bond of $50,000. If 
425.26 	the Medicaid revenue in the previous year is over $300,000, the provider agency must 
425.27 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
425.28 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
425.29 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
425.30 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
425.31 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
425.32 	or the time to appeal has expired under section 256B.064;
426.1 	(3) proof of fidelity bond coverage in the amount of $20,000 for each business location 
426.2 	providing service;
426.3 	(4) proof of workers' compensation insurance coverage identifying the business location 
426.4 	where personal care assistance services are provided;
426.5 	(5) proof of liability insurance coverage identifying the business location where personal 
426.6 	care assistance services are provided and naming the department as a certificate holder;
426.7 	(6) a copy of the personal care assistance provider agency's written policies and 
426.8 	procedures including: hiring of employees; training requirements; service delivery; and 
426.9 	employee and consumer safety including process for notification and resolution of consumer 
426.10 	grievances, identification and prevention of communicable diseases, and employee 
426.11 	misconduct;
426.12 	(7) copies of all other forms the personal care assistance provider agency uses in the 
426.13 	course of daily business including, but not limited to:
426.14 	(i) a copy of the personal care assistance provider agency's time sheet if the time sheet 
426.15 	varies from the standard time sheet for personal care assistance services approved by the 
426.16 	commissioner, and a letter requesting approval of the personal care assistance provider 
426.17 	agency's nonstandard time sheet;
426.18 	(ii) the personal care assistance provider agency's template for the personal care assistance 
426.19 	care plan; and
426.20 	(iii) the personal care assistance provider agency's template for the written agreement 
426.21 	in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
426.22 	(8) a list of all training and classes that the personal care assistance provider agency 
426.23 	requires of its staff providing personal care assistance services;
426.24 	(9) documentation that the personal care assistance provider agency and staff have 
426.25 	successfully completed all the training required by this section, including the requirements 
426.26 	under subdivision 11, paragraph (d), if enhanced personal care assistance services are 
426.27 	provided and submitted for an enhanced rate under subdivision 17a;
426.28 	(10) documentation of the agency's marketing practices;
426.29 	(11) disclosure of ownership, leasing, or management of all residential properties that 
426.30 	is used or could be used for providing home care services;
426.31 	(12) documentation that the agency will use the following percentages of revenue 
426.32 	generated from the medical assistance rate paid for personal care assistance services for 
427.1 	employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal 
427.2 	care assistance choice option and 72.5 percent of revenue from other personal care assistance 
427.3 	providers. The revenue generated by the qualified professional and the reasonable costs 
427.4 	associated with the qualified professional shall not be used in making this calculation; and
427.5 	(13) effective May 15, 2010, documentation that the agency does not burden recipients' 
427.6 	free exercise of their right to choose service providers by requiring personal care assistants 
427.7 	to sign an agreement not to work with any particular personal care assistance recipient or 
427.8 	for another personal care assistance provider agency after leaving the agency and that the 
427.9 	agency is not taking action on any such agreements or requirements regardless of the date 
427.10 	signed.
427.11 	(b) Personal care assistance provider agencies shall provide the information specified 
427.12 	in paragraph (a) to the commissioner at the time the personal care assistance provider agency 
427.13 	enrolls as a vendor or upon request from the commissioner. The commissioner shall collect 
427.14 	the information specified in paragraph (a) from all personal care assistance providers 
427.15 	beginning July 1, 2009.
427.16 	(c) All personal care assistance provider agencies shall require all employees in 
427.17 	management and supervisory positions and owners of the agency who are active in the 
427.18 	day-to-day management and operations of the agency to complete mandatory training as 
427.19 	determined by the commissioner before submitting an application for enrollment of the 
427.20 	agency as a provider. All personal care assistance provider agencies shall also require 
427.21 	qualified professionals to complete the training required by subdivision 13 before submitting 
427.22 	an application for enrollment of the agency as a provider. Employees in management and 
427.23 	supervisory positions and owners who are active in the day-to-day operations of an agency 
427.24 	who have completed the required training as an employee with a personal care assistance 
427.25 	provider agency do not need to repeat the required training if they are hired by another 
427.26 	agency, if they have completed the training within the past three years. By September 1, 
427.27 	2010, the required training must be available with meaningful access according to title VI 
427.28 	of the Civil Rights Act and federal regulations adopted under that law or any guidance from 
427.29 	the United States Health and Human Services Department. The required training must be 
427.30 	available online or by electronic remote connection. The required training must provide for 
427.31 	competency testing. Personal care assistance provider agency billing staff shall complete 
427.32 	training about personal care assistance program financial management. This training is 
427.33 	effective July 1, 2009. Any personal care assistance provider agency enrolled before that 
427.34 	date shall, if it has not already, complete the provider training within 18 months of July 1, 
427.35 	2009. Any new owners or employees in management and supervisory positions involved 
428.1 	in the day-to-day operations are required to complete mandatory training as a requisite of 
428.2 	working for the agency. Personal care assistance provider agencies certified for participation 
428.3 	in Medicare as home health agencies are exempt from the training required in this 
428.4 	subdivision. When available, Medicare-certified home health agency owners, supervisors, 
428.5 	or managers must successfully complete the competency test.
428.6 	(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability 
428.7 	insurance required by this subdivision must be maintained continuously. After initial 
428.8 	enrollment, a provider must submit proof of bonds and required coverages at any time at 
428.9 	the request of the commissioner. Services provided while there are lapses in coverage are 
428.10 	not eligible for payment. Lapses in coverage may result in sanctions, including termination. 
428.11 	The commissioner shall send instructions and a due date to submit the requested information 
428.12 	to the personal care assistance provider agency.

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

428.14 	Sec. 11. Minnesota Statutes 2024, section 256B.85, subdivision 12, is amended to read:
428.15 		Subd. 12.Requirements for enrollment of CFSS agency-providers. (a) All CFSS 
428.16 	agency-providers must provide, at the time of enrollment, reenrollment, and revalidation 
428.17 	as a CFSS agency-provider in a format determined by the commissioner, information and 
428.18 	documentation that includes but is not limited to the following:
428.19 	(1) the CFSS agency-provider's current contact information including address, telephone 
428.20 	number, and email address;
428.21 	(2) proof of surety bond coverage. Upon new enrollment, or if the agency-provider's 
428.22 	Medicaid revenue in the previous calendar year is less than or equal to $300,000, the 
428.23 	agency-provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid 
428.24 	revenue in the previous calendar year is greater than $300,000, the agency-provider must 
428.25 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
428.26 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
428.27 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
428.28 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
428.29 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
428.30 	or the time to appeal has expired under section 256B.064;
428.31 	(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;
428.32 	(4) proof of workers' compensation insurance coverage;
428.33 	(5) proof of liability insurance;
429.1 	(6) a copy of the CFSS agency-provider's organizational chart identifying the names 
429.2 	and roles of all owners, managing employees, staff, board of directors, and additional 
429.3 	documentation reporting any affiliations of the directors and owners to other service 
429.4 	providers;
429.5 	(7) proof that the CFSS agency-provider has written policies and procedures including: 
429.6 	hiring of employees; training requirements; service delivery; and employee and consumer 
429.7 	safety, including the process for notification and resolution of participant grievances, incident 
429.8 	response, identification and prevention of communicable diseases, and employee misconduct;
429.9 	(8) proof that the CFSS agency-provider has all of the following forms and documents:
429.10 	(i) a copy of the CFSS agency-provider's time sheet; and
429.11 	(ii) a copy of the participant's individual CFSS service delivery plan;
429.12 	(9) a list of all training and classes that the CFSS agency-provider requires of its staff 
429.13 	providing CFSS services;
429.14 	(10) documentation that the CFSS agency-provider and staff have successfully completed 
429.15 	all the training required by this section;
429.16 	(11) documentation of the agency-provider's marketing practices;
429.17 	(12) disclosure of ownership, leasing, or management of all residential properties that 
429.18 	are used or could be used for providing home care services;
429.19 	(13) documentation that the agency-provider will use at least the following percentages 
429.20 	of revenue generated from the medical assistance rate paid for CFSS services for CFSS 
429.21 	support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except 
429.22 	100 percent of the revenue generated by a medical assistance rate increase due to a collective 
429.23 	bargaining agreement under section 179A.54 must be used for support worker wages and 
429.24 	benefits. The revenue generated by the worker training and development services and the 
429.25 	reasonable costs associated with the worker training and development services shall not be 
429.26 	used in making this calculation; and
429.27 	(14) documentation that the agency-provider does not burden participants' free exercise 
429.28 	of their right to choose service providers by requiring CFSS support workers to sign an 
429.29 	agreement not to work with any particular CFSS participant or for another CFSS 
429.30 	agency-provider after leaving the agency and that the agency is not taking action on any 
429.31 	such agreements or requirements regardless of the date signed.
430.1 	(b) CFSS agency-providers shall provide to the commissioner the information specified 
430.2 	in paragraph (a).
430.3 	(c) All CFSS agency-providers shall require all employees in management and 
430.4 	supervisory positions and owners of the agency who are active in the day-to-day management 
430.5 	and operations of the agency to complete mandatory training as determined by the 
430.6 	commissioner. Employees in management and supervisory positions and owners who are 
430.7 	active in the day-to-day operations of an agency who have completed the required training 
430.8 	as an employee with a CFSS agency-provider do not need to repeat the required training if 
430.9 	they are hired by another agency and they have completed the training within the past three 
430.10 	years. CFSS agency-provider billing staff shall complete training about CFSS program 
430.11 	financial management. Any new owners or employees in management and supervisory 
430.12 	positions involved in the day-to-day operations are required to complete mandatory training 
430.13 	as a requisite of working for the agency.
430.14 	(d) Agency-providers shall submit all required documentation in this section within 30 
430.15 	days of notification from the commissioner. If an agency-provider fails to submit all the 
430.16 	required documentation, the commissioner may take action under subdivision 23a.

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

430.18 	ARTICLE 15
430.19 	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL 
430.20 	POLICY

430.21 	Section 1. Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:
430.22 		Subd. 5.Administrative disqualification of child care providers caring for children 
430.23 	receiving child care assistance. (a) The department shall pursue an administrative 
430.24 	disqualification, if the child care provider is accused of committing an intentional program 
430.25 	violation, in lieu of a criminal action when it has not been pursued. Intentional program 
430.26 	violations include intentionally making false or misleading statements; receiving or providing 
430.27 	a kickback, as defined in subdivision 6, paragraph (b); intentionally misrepresenting, 
430.28 	concealing, or withholding facts; and repeatedly and intentionally violating program 
430.29 	regulations under this chapter. Intent may be proven by demonstrating a pattern of conduct 
430.30 	that violates program rules under this chapter.
430.31 	(b) To initiate an administrative disqualification, the commissioner must send written 
430.32 	notice using a signature-verified confirmed delivery method to the provider against whom 
430.33 	the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules, 
430.34 	chapter 3400, the commissioner must send the written notice at least 15 calendar days before 
431.1 	the adverse action's effective date. The notice shall state (1) the factual basis for the agency's 
431.2 	determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary 
431.3 	recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed 
431.4 	action.
431.5 	(c) The provider may appeal an administrative disqualification by submitting a written 
431.6 	request to the state agency. A provider's request must be received by the state agency no 
431.7 	later than 30 days after the date the commissioner mails the notice.
431.8 	(d) The provider's appeal request must contain the following:
431.9 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
431.10 	dollar amount involved for each disputed item;
431.11 	(2) the computation the provider believes to be correct, if applicable;
431.12 	(3) the statute or rule relied on for each disputed item; and
431.13 	(4) the name, address, and telephone number of the person at the provider's place of 
431.14 	business with whom contact may be made regarding the appeal.
431.15 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
431.16 	preponderance of the evidence that the provider committed an intentional program violation.
431.17 	(f) The hearing is subject to the requirements of section 142A.20. The human services 
431.18 	judge may combine a fair hearing and administrative disqualification hearing into a single 
431.19 	hearing if the factual issues arise out of the same or related circumstances and the provider 
431.20 	receives prior notice that the hearings will be combined.
431.21 	(g) A provider found to have committed an intentional program violation and is 
431.22 	administratively disqualified must be disqualified, for a period of three years for the first 
431.23 	offense and permanently for any subsequent offense, from receiving any payments from 
431.24 	any child care program under this chapter.
431.25 	(h) Unless a timely and proper appeal made under this section is received by the 
431.26 	department, the administrative determination of the department is final and binding.

431.27 	Sec. 2. Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:
431.28 		Subd. 6.Prohibited hiring practice practices. (a) It is prohibited to hire a child care 
431.29 	center employee when, as a condition of employment, the employee is required to have one 
431.30 	or more children who are eligible for or receive child care assistance, if:
432.1 	(1) the individual hiring the employee is, or is acting at the direction of or in cooperation 
432.2 	with, a child care center provider, center owner, director, manager, license holder, or other 
432.3 	controlling individual; and
432.4 	(2) the individual hiring the employee knows or has reason to know the purpose in hiring 
432.5 	the employee is to obtain child care assistance program funds.
432.6 	(b) Program applicants, participants, and providers are prohibited from receiving or 
432.7 	providing a kickback or payment in exchange for obtaining or attempting to obtain child 
432.8 	care assistance benefits for their own financial gain. This paragraph does not apply to:
432.9 	(1) marketing or promotional offerings that directly benefit an applicant or recipient's 
432.10 	child or dependent for whom the child care provider is providing child care services; or
432.11 	(2) child care provider discounts, scholarships, or other financial assistance allowed 
432.12 	under section 142E.17, subdivision 7.
432.13 	(c) An attempt to buy or sell access to a family's child care subsidy benefits to an 
432.14 	unauthorized person by an applicant, a participant, or a provider is a kickback, an intentional 
432.15 	program violation under subdivision 5, and wrongfully obtaining assistance under section 
432.16 	256.98.

432.17 	Sec. 3. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
432.18 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
432.19 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
432.20 	application must be made on the forms and in the manner prescribed by the commissioner. 
432.21 	The commissioner shall provide the applicant with instruction in completing the application 
432.22 	and provide information about the rules and requirements of other state agencies that affect 
432.23 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
432.24 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
432.25 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
432.26 	this chapter that is owned by another license holder must apply for a license under this 
432.27 	chapter and comply with the application procedures in this section and section 245A.043.
432.28 	The commissioner shall act on the application within 90 working days after a complete 
432.29 	application and any required reports have been received from other state agencies or 
432.30 	departments, counties, municipalities, or other political subdivisions. The commissioner 
432.31 	shall not consider an application to be complete until the commissioner receives all of the 
432.32 	required information.
433.1 	When the commissioner receives an application for initial licensure that is incomplete 
433.2 	because the applicant failed to submit required documents or that is substantially deficient 
433.3 	because the documents submitted do not meet licensing requirements, the commissioner 
433.4 	shall provide the applicant written notice that the application is incomplete or substantially 
433.5 	deficient. In the written notice to the applicant the commissioner shall identify documents 
433.6 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
433.7 	that is substantially complete. An applicant's failure to submit a substantially complete 
433.8 	application after receiving notice from the commissioner is a basis for license denial under 
433.9 	section 245A.043.
433.10 	(b) An application for licensure must identify all controlling individuals as defined in 
433.11 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
433.12 	agent. The application must be signed by the authorized agent and must include the authorized 
433.13 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
433.14 	application for licensure, the authorized agent consents to electronic communication with 
433.15 	the commissioner throughout the application process. The authorized agent must be 
433.16 	authorized to accept service on behalf of all of the controlling individuals. A government 
433.17 	entity that holds multiple licenses under this chapter may designate one authorized agent 
433.18 	for all licenses issued under this chapter or may designate a different authorized agent for 
433.19 	each license. Service on the authorized agent is service on all of the controlling individuals. 
433.20 	It is not a defense to any action arising under this chapter that service was not made on each 
433.21 	controlling individual. The designation of a controlling individual as the authorized agent 
433.22 	under this paragraph does not affect the legal responsibility of any other controlling individual 
433.23 	under this chapter.
433.24 	(c) An applicant or license holder must have a policy that prohibits license holders, 
433.25 	employees, subcontractors, and volunteers, when directly responsible for persons served 
433.26 	by the program, from abusing prescription medication or being in any manner under the 
433.27 	influence of a chemical that impairs the individual's ability to provide services or care. The 
433.28 	license holder must train employees, subcontractors, and volunteers about the program's 
433.29 	drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact, 
433.30 	as defined in section 245C.02, subdivision 11, with a person served by the program.
433.31 	(d) An applicant and license holder must have a program grievance procedure that permits 
433.32 	persons served by the program and their authorized representatives to bring a grievance to 
433.33 	the highest level of authority in the program.
433.34 	(e) The commissioner may limit communication during the application process to the 
433.35 	authorized agent or the controlling individuals identified on the license application and for 
434.1 	whom a background study was initiated under chapter 245C. Upon implementation of the 
434.2 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
434.3 	manner prescribed by the commissioner. The commissioner may require the applicant, 
434.4 	except for child foster care, to demonstrate competence in the applicable licensing 
434.5 	requirements by successfully completing a written examination. The commissioner may 
434.6 	develop a prescribed written examination format.
434.7 	(f) When an applicant is an individual, the applicant must provide:
434.8 	(1) the applicant's taxpayer identification numbers including the Social Security number 
434.9 	or Minnesota tax identification number, and federal employer identification number if the 
434.10 	applicant has employees;
434.11 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
434.12 	of state that includes the complete business name, if any;
434.13 	(3) if doing business under a different name, the doing business as (DBA) name, as 
434.14 	registered with the secretary of state;
434.15 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
434.16 	Minnesota Provider Identifier (UMPI) number; and
434.17 	(5) at the request of the commissioner, the notarized signature of the applicant or 
434.18 	authorized agent.
434.19 	(g) When an applicant is an organization, the applicant must provide:
434.20 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
434.21 	identification number and federal employer identification number;
434.22 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
434.23 	of state that includes the complete business name, and if doing business under a different 
434.24 	name, the doing business as (DBA) name, as registered with the secretary of state;
434.25 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
434.26 	individuals, including all officers, owners, and managerial officials as defined in section 
434.27 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
434.28 	for each controlling individual;
434.29 	(4) if applicable, the applicant's NPI number and UMPI number;
434.30 	(5) the documents that created the organization and that determine the organization's 
434.31 	internal governance and the relations among the persons that own the organization, have 
434.32 	an interest in the organization, or are members of the organization, in each case as provided 
435.1 	or authorized by the organization's governing statute, which may include a partnership 
435.2 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
435.3 	or comparable documents as provided in the organization's governing statute; and
435.4 	(6) the notarized signature of the applicant or authorized agent.
435.5 	(h) When the applicant is a government entity, the applicant must provide:
435.6 	(1) the name of the government agency, political subdivision, or other unit of government 
435.7 	seeking the license and the name of the program or services that will be licensed;
435.8 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
435.9 	identification number and federal employer identification number;
435.10 	(3) a letter signed by the manager, administrator, or other executive of the government 
435.11 	entity authorizing the submission of the license application; and
435.12 	(4) if applicable, the applicant's NPI number and UMPI number.
435.13 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
435.14 	applicant or license holder must acknowledge on the form provided by the commissioner 
435.15 	if the applicant or license holder elects to receive any public funding reimbursement from 
435.16 	the commissioner for services provided under the license that:
435.17 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
435.18 	or registration requirements for receipt of public funding may be monitored by the 
435.19 	commissioner as part of a licensing investigation or licensing inspection; and
435.20 	(2) noncompliance with the provider enrollment agreement or registration requirements 
435.21 	for receipt of public funding that is identified through a licensing investigation or licensing 
435.22 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
435.23 	reimbursement for a service, may result in:
435.24 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
435.25 	section 245A.07;
435.26 	(ii) nonpayment of claims submitted by the license holder for public program 
435.27 	reimbursement;
435.28 	(iii) recovery of payments made for the service;
435.29 	(iv) disenrollment in the public payment program; or
435.30 	(v) other administrative, civil, or criminal penalties as provided by law.

436.1 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 7, is amended to read:
436.2 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
436.3 	the program complies with all applicable rules and laws, the commissioner shall issue a 
436.4 	license consistent with this section or, if applicable, a temporary change of ownership license 
436.5 	under section 245A.043. At minimum, the license shall state:
436.6 	(1) the name of the license holder;
436.7 	(2) the address of the program;
436.8 	(3) the effective date and expiration date of the license;
436.9 	(4) the type of license;
436.10 	(5) the maximum number and ages of persons that may receive services from the program; 
436.11 	and
436.12 	(6) any special conditions of licensure.
436.13 	(b) The commissioner may issue a license for a period not to exceed two years if:
436.14 	(1) the commissioner is unable to conduct the observation required by subdivision 4, 
436.15 	paragraph (a), clause (3), because the program is not yet operational;
436.16 	(2) certain records and documents are not available because persons are not yet receiving 
436.17 	services from the program; and
436.18 	(3) the applicant complies with applicable laws and rules in all other respects.
436.19 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
436.20 	or persons will be placed or cared for in the licensed program.
436.21 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
436.22 	license if the applicant, license holder, or an affiliated controlling individual has:
436.23 	(1) been disqualified and the disqualification was not set aside and no variance has been 
436.24 	granted;
436.25 	(2) been denied a license under this chapter or chapter 142B within the past two years;
436.26 	(3) had a license issued under this chapter or chapter 142B revoked within the past five 
436.27 	years; or
436.28 	(4) failed to submit the information required of an applicant under subdivision 1, 
436.29 	paragraph (f), (g), or (h), after being requested by the commissioner.
437.1 	When a license issued under this chapter or chapter 142B is revoked, the license holder 
437.2 	and each affiliated controlling individual with a revoked license may not hold any license 
437.3 	under chapter 245A for five years following the revocation, and other licenses held by the 
437.4 	applicant or license holder or licenses affiliated with each controlling individual shall also 
437.5 	be revoked.
437.6 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
437.7 	affiliated with a license holder or controlling individual that had a license revoked within 
437.8 	the past five years if the commissioner determines that (1) the license holder or controlling 
437.9 	individual is operating the program in substantial compliance with applicable laws and rules 
437.10 	and (2) the program's continued operation is in the best interests of the community being 
437.11 	served.
437.12 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
437.13 	to an application that is affiliated with an applicant, license holder, or controlling individual 
437.14 	that had an application denied within the past two years or a license revoked within the past 
437.15 	five years if the commissioner determines that (1) the applicant or controlling individual 
437.16 	has operated one or more programs in substantial compliance with applicable laws and rules 
437.17 	and (2) the program's operation would be in the best interests of the community to be served.
437.18 	(g) In determining whether a program's operation would be in the best interests of the 
437.19 	community to be served, the commissioner shall consider factors such as the number of 
437.20 	persons served, the availability of alternative services available in the surrounding 
437.21 	community, the management structure of the program, whether the program provides 
437.22 	culturally specific services, and other relevant factors.
437.23 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
437.24 	living in the household where the services will be provided as specified under section 
437.25 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
437.26 	and no variance has been granted.
437.27 	(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
437.28 	under this chapter has been suspended or revoked and the suspension or revocation is under 
437.29 	appeal, the program may continue to operate pending a final order from the commissioner. 
437.30 	If the license under suspension or revocation will expire before a final order is issued, a 
437.31 	temporary provisional license may be issued provided any applicable license fee is paid 
437.32 	before the temporary provisional license is issued.
437.33 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
437.34 	a controlling individual or license holder, and the controlling individual or license holder 
438.1 	is ordered under section 245C.17 to be immediately removed from direct contact with 
438.2 	persons receiving services or is ordered to be under continuous, direct supervision when 
438.3 	providing direct contact services, the program may continue to operate only if the program 
438.4 	complies with the order and submits documentation demonstrating compliance with the 
438.5 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
438.6 	if the disqualification is not set aside and no variance is granted, the order to immediately 
438.7 	remove the individual from direct contact or to be under continuous, direct supervision 
438.8 	remains in effect pending the outcome of a hearing and final order from the commissioner.
438.9 	(k) Unless otherwise specified by statute, all licenses issued under this chapter expire 
438.10 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
438.11 	apply for and be grantedcomply with the requirements in section 245A.10 and be reissued 
438.12 	a new license to operate the program or the program must not be operated after the expiration 
438.13 	date. Adult foster care, family adult day services, child foster residence setting, and 
438.14 	community residential services license holders must apply for and be granted a new license 
438.15 	to operate the program or the program must not be operated after the expiration date. Upon 
438.16 	implementation of the provider licensing and reporting hub, licenses may be issued each 
438.17 	calendar year.
438.18 	(l) The commissioner shall not issue or reissue a license under this chapter if it has been 
438.19 	determined that a Tribal licensing authority has established jurisdiction to license the program 
438.20 	or service.
438.21 	(m) The commissioner of human services may coordinate and share data with the 
438.22 	commissioner of children, youth, and families to enforce this section.

438.23 	Sec. 5. Minnesota Statutes 2024, section 245A.16, subdivision 1, is amended to read:
438.24 		Subdivision 1.Delegation of authority to agencies. (a) County agencies that have been 
438.25 	designated by the commissioner to perform licensing functions and activities under section 
438.26 	245A.04; to recommend denial of applicants under section 245A.05; to issue correction 
438.27 	orders, to issue variances, and recommend a conditional license under section 245A.06; or 
438.28 	to recommend suspending or revoking a license or issuing a fine under section 245A.07, 
438.29 	shall comply with rules and directives of the commissioner governing those functions and 
438.30 	with this section. The following variances are excluded from the delegation of variance 
438.31 	authority and may be issued only by the commissioner:
438.32 	(1) dual licensure of child foster residence setting and community residential setting;
439.1 	(2) until the responsibility for family child foster care transfers to the commissioner of 
439.2 	children, youth, and families under Laws 2023, chapter 70, article 12, section 30, dual 
439.3 	licensure of family child foster care and family adult foster care;
439.4 	(3) until the responsibility for family child care transfers to the commissioner of children, 
439.5 	youth, and families under Laws 2023, chapter 70, article 12, section 30, dual licensure of 
439.6 	family adult foster care and family child care;
439.7 	(4) adult foster care or community residential setting maximum capacity;
439.8 	(5) adult foster care or community residential setting minimum age requirement;
439.9 	(6) child foster care maximum age requirement;
439.10 	(7) variances regarding disqualified individuals;
439.11 	(8) the required presence of a caregiver in the adult foster care residence during normal 
439.12 	sleeping hours;
439.13 	(9) variances to requirements relating to chemical use problems of a license holder or a 
439.14 	household member of a license holder; and
439.15 	(10) variances to section 142B.46 for the use of a cradleboard for a cultural 
439.16 	accommodation.
439.17 	(b) Once the respective responsibilities transfer from the commissioner of human services 
439.18 	to the commissioner of children, youth, and families, under Laws 2023, chapter 70, article 
439.19 	12, section 30, the commissioners of human services and children, youth, and families must 
439.20 	both approve a variance for dual licensure of family child foster care and family adult foster 
439.21 	care or family adult foster care and family child care. Variances under this paragraph are 
439.22 	excluded from the delegation of variance authority and may be issued only by both 
439.23 	commissioners.
439.24 	(c) For family adult day services programs, the commissioner may authorize licensing 
439.25 	reviews every two years after a licensee has had at least one annual review.
439.26 	(d) A (c) An adult foster care, family adult day services, child foster residence setting, 
439.27 	or community residential services license issued under this section may be issued for up to 
439.28 	two years until implementation of the provider licensing and reporting hub. Upon 
439.29 	implementation of the provider licensing and reporting hub, licenses may be issued each 
439.30 	calendar year.
439.31 	(e) (d) During implementation of chapter 245D, the commissioner shall consider:
439.32 	(1) the role of counties in quality assurance;
440.1 	(2) the duties of county licensing staff; and
440.2 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
440.3 	through which some licensing duties under chapter 245D may be delegated by the 
440.4 	commissioner to the counties.
440.5 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
440.6 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
440.7 	(f) (e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
440.8 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
440.9 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
440.10 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county agencies.

440.11 	Sec. 6. Minnesota Statutes 2024, section 245A.242, subdivision 2, is amended to read:
440.12 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
440.13 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
440.14 	treatment of opioid overdose and must have a written standing order protocol by a physician 
440.15 	who is licensed under chapter 147, advanced practice registered nurse who is licensed under 
440.16 	chapter 148, or physician assistant who is licensed under chapter 147A, that permits the 
440.17 	license holder to maintain a supply of opiate antagonists on site. A license holder must 
440.18 	require staff to undergo training in the specific mode of administration used at the program, 
440.19 	which may include intranasal administration, intramuscular injection, or both, before the 
440.20 	staff has direct contact, as defined in section 245C.02, subdivision 11, with a person served 
440.21 	by the program.
440.22 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960 
440.23 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
440.24 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
440.25 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
440.26 	location;
440.27 	(2) staff persons who only administer emergency opiate antagonist medications only 
440.28 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
440.29 	The trainer is not required to be a registered nurse or part of an accredited educational 
440.30 	institution; and
440.31 	(3) nonresidential substance use disorder treatment programs that do not administer 
440.32 	client medications beyond emergency opiate antagonist medications are not required to 
440.33 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
441.1 	must instead describe the program's procedures for administering opiate antagonist 
441.2 	medications in the license holder's description of health care services under section 245G.08, 
441.3 	subdivision 1.

441.4 	Sec. 7. Minnesota Statutes 2024, section 245C.05, is amended by adding a subdivision to 
441.5 	read:
441.6 		Subd. 9.Electronic signature. For documentation requiring a signature under this 
441.7 	chapter, use of an electronic signature as defined under section 325L.02, paragraph (h), is 
441.8 	allowed.

441.9 	Sec. 8. Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:
441.10 		Subd. 3.Arrest and investigative information. (a) For any background study completed 
441.11 	under this section, if the commissioner has reasonable cause to believe the information is 
441.12 	pertinent to the disqualification of an individual, the commissioner also may review arrest 
441.13 	and investigative information from:
441.14 	(1) the Bureau of Criminal Apprehension;
441.15 	(2) the commissioners of children, youth, and families; health; and human services;
441.16 	(3) a county attorney prosecutor;
441.17 	(4) a county sheriff;
441.18 	(5) (4) a county agency;
441.19 	(6) (5) a local chief of police law enforcement agency;
441.20 	(7) (6) other states;
441.21 	(8) (7) the courts;
441.22 	(9) (8) the Federal Bureau of Investigation;
441.23 	(10) (9) the National Criminal Records Repository; and
441.24 	(11) (10) criminal records from other states.
441.25 	(b) Except when specifically required by law, the commissioner is not required to conduct 
441.26 	more than one review of a subject's records from the Federal Bureau of Investigation if a 
441.27 	review of the subject's criminal history with the Federal Bureau of Investigation has already 
441.28 	been completed by the commissioner and there has been no break in the subject's affiliation 
441.29 	with the entity that initiated the background study.
442.1 	(c) If the commissioner conducts a national criminal history record check when required 
442.2 	by law and uses the information from the national criminal history record check to make a 
442.3 	disqualification determination, the data obtained is private data and cannot be shared with 
442.4 	private agencies or prospective employers of the background study subject.
442.5 	(d) If the commissioner conducts a national criminal history record check when required 
442.6 	by law and uses the information from the national criminal history record check to make a 
442.7 	disqualification determination, the license holder or entity that submitted the study is not 
442.8 	required to obtain a copy of the background study subject's disqualification letter under 
442.9 	section 245C.17, subdivision 3.

442.10 	Sec. 9. Minnesota Statutes 2024, section 245C.22, subdivision 5, is amended to read:
442.11 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
442.12 	this section, the disqualified individual remains disqualified, but may hold a license and 
442.13 	have direct contact with or access to persons receiving services. Except as provided in 
442.14 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
442.15 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
442.16 	For personal care provider organizations, financial management services organizations, 
442.17 	community first services and supports organizations, unlicensed home and community-based 
442.18 	organizations, and consumer-directed community supports organizations, the commissioner's 
442.19 	set-aside may further be limited to a specific individual who is receiving services. For new 
442.20 	background studies required under section 245C.04, subdivision 1, paragraph (h), if an 
442.21 	individual's disqualification was previously set aside for the license holder's program and 
442.22 	the new background study results in no new information that indicates the individual may 
442.23 	pose a risk of harm to persons receiving services from the license holder, the previous 
442.24 	set-aside shall remain in effect.
442.25 	(b) If the commissioner has previously set aside an individual's disqualification for one 
442.26 	or more programs or agencies, and the individual is the subject of a subsequent background 
442.27 	study for a different program or agency, the commissioner shall determine whether the 
442.28 	disqualification is set aside for the program or agency that initiated the subsequent 
442.29 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
442.30 	working days if all of the following criteria are met:
442.31 	(1) the subsequent background study was initiated in connection with a program licensed 
442.32 	or regulated under the same provisions of law and rule for at least one program for which 
442.33 	the individual's disqualification was previously set aside by the commissioner;
443.1 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
443.2 	subdivision 1 or 2;
443.3 	(3) the commissioner has received no new information to indicate that the individual 
443.4 	may pose a risk of harm to any person served by the program; and
443.5 	(4) the previous set-aside was not limited to a specific person receiving services.
443.6 	(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the 
443.7 	substance use disorder field, if the commissioner has previously set aside an individual's 
443.8 	disqualification for one or more programs or agencies in the substance use disorder treatment 
443.9 	field, and the individual is the subject of a subsequent background study for a different 
443.10 	program or agency in the substance use disorder treatment field, the commissioner shall set 
443.11 	aside the disqualification for the program or agency in the substance use disorder treatment 
443.12 	field that initiated the subsequent background study when the criteria under paragraph (b), 
443.13 	clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified 
443.14 	in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued 
443.15 	within 15 working days.
443.16 	(d) When a disqualification is set aside under paragraph (b), the notice of background 
443.17 	study results issued under section 245C.17, in addition to the requirements under section 
443.18 	245C.17, shall state that the disqualification is set aside for the program or agency that 
443.19 	initiated the subsequent background study. The notice must inform the individual that the 
443.20 	individual may request reconsideration of the disqualification under section 245C.21 on the 
443.21 	basis that the information used to disqualify the individual is incorrect.

443.22 	Sec. 10. Minnesota Statutes 2024, section 245D.02, subdivision 4a, is amended to read:
443.23 		Subd. 4a.Community residential setting. "Community residential setting" means a 
443.24 	residential program as identified in section 245A.11, subdivision 8, where residential supports 
443.25 	and services identified in section 245D.03, subdivision 1, paragraph (c), clause (3), items 
443.26 	(i) and (ii), are provided to adults, as defined in section 245A.02, subdivision 2, and the 
443.27 	license holder is the owner, lessor, or tenant of the facility licensed according to this chapter, 
443.28 	and the license holder does not reside in the facility.

443.29 	EFFECTIVE DATE. This section is effective August 1, 2025.

443.30 	Sec. 11. Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:
443.31 		Subdivision 1.Wrongfully obtaining assistance. (a) A person who commits any of the 
443.32 	following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897, 
444.1 	the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program 
444.2 	formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K, 
444.3 	or 256L, child care assistance programs, and emergency assistance programs under section 
444.4 	256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses 
444.5 	(1) to (5):
444.6 	(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a 
444.7 	willfully false statement or representation, by intentional concealment of any material fact, 
444.8 	or by impersonation or other fraudulent device, assistance or the continued receipt of 
444.9 	assistance, to include child care assistance or food benefits produced according to sections 
444.10 	145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94, 
444.11 	and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that 
444.12 	to which the person is entitled;
444.13 	(2) knowingly aids or abets in buying or in any way disposing of the property of a 
444.14 	recipient or applicant of assistance without the consent of the county agency; or
444.15 	(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments 
444.16 	to which the individual is not entitled as a provider of subsidized child care, or by furnishing 
444.17 	or concurring in receiving or providing any prohibited payment, as defined in section 
444.18 	609.542, subdivision 2, including a kickback, or by submitting or aiding or abetting the 
444.19 	submission of a willfully false claim for child care assistance.
444.20 	(b) The continued receipt of assistance to which the person is not entitled or greater than 
444.21 	that to which the person is entitled as a result of any of the acts, failure to act, or concealment 
444.22 	described in this subdivision shall be deemed to be continuing offenses from the date that 
444.23 	the first act or failure to act occurred.

444.24 	Sec. 12. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
444.25 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
444.26 	any individual or entity that receives payments from medical assistance or provides goods 
444.27 	or services for which payment is made from medical assistance for any of the following: 
444.28 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
444.29 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
444.30 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
444.31 	a pattern of making false statements of material facts for the purpose of obtaining greater 
444.32 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
444.33 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
444.34 	regular business hours to examine all records necessary to disclose the extent of services 
445.1 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
445.2 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
445.3 	errors in the maintenance of health service or financial records for which a fine was imposed 
445.4 	or after issuance of a warning by the commissioner; (8) soliciting or receiving any 
445.5 	remuneration as defined in section 609.542, subdivision 3, or United States Code, title 42, 
445.6 	section 1320a-7b(b)(1), and a criminal conviction is not required; (9) paying or offering to 
445.7 	pay any remuneration as defined in section 609.542, subdivision 2, or United States Code, 
445.8 	title 42, section 1320a-7b(b)(2), and a criminal conviction is not required; and (8) (10) any 
445.9 	reason for which an individual or entity could be excluded from participation in the Medicare 
445.10 	program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the 
445.11 	purposes of this section, goods or services for which payment is made from medical 
445.12 	assistance includes but is not limited to care and services identified in section 256B.0625
445.13 	or provided pursuant to any federally approved waiver.
445.14 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
445.15 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
445.16 	(h).

445.17 	Sec. 13. Minnesota Statutes 2024, section 256B.12, is amended to read:
445.18 	256B.12 LEGAL REPRESENTATION.
445.19 	The attorney general or the appropriate county attorney appearing at the direction of the 
445.20 	attorney general shall be the attorney for the state agency, and the county attorney of the 
445.21 	appropriate county shall be the attorney for the localcounty agency in all matters pertaining 
445.22 	hereto. To prosecute under this chapter or sections 609.466and;609.52, subdivision 2,; and 
445.23 	609.542 or to recover payments wrongfully made under this chapter, the attorney general 
445.24 	or the appropriate county attorney, acting independently or at the direction of the attorney 
445.25 	general may institute a criminal or civil action.

445.26 	Sec. 14. [609.542] HUMAN SERVICES PROGRAMS CRIMES.
445.27 		Subdivision 1.Definition. For purposes of this section, "federal health care program" 
445.28 	has the meaning given in United States Code, title 42, section 1320a-7b(f).
445.29 		Subd. 2.Prohibited payments made relating to human services programs. A person 
445.30 	is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
445.31 	intentionally offers or pays any remuneration, including any kickback, bribe, or rebate, 
445.32 	directly or indirectly, overtly or covertly, in cash or in kind, to another person:
446.1 	(1) to induce that person to apply for, receive, or induce another person to apply for or 
446.2 	receive an item or service for which payment may be made in whole or in part under a 
446.3 	federal health care program, state behavioral health program under section 254B.04, or 
446.4 	family program under chapter 142E; or
446.5 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
446.6 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
446.7 	in whole or in part, or which is administered in whole or in part under a federal health care 
446.8 	program, state behavioral health program under section 254B.04, or family program under 
446.9 	chapter 142E.
446.10 		Subd. 3.Receipt of prohibited payments relating to human services programs. A 
446.11 	person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
446.12 	intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate, 
446.13 	directly or indirectly, overtly or covertly, in cash or in kind:
446.14 	(1) in return for applying for or receiving a human services benefit, service, or grant for 
446.15 	which payment may be made in whole or in part under a federal health care program, state 
446.16 	behavioral health program under section 254B.04, or family program under chapter 142E; 
446.17 	or
446.18 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
446.19 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
446.20 	in whole or in part under a federal health care program, state behavioral health program 
446.21 	under section 254B.04, or family program under chapter 142E.
446.22 		Subd. 4.Exemptions. (a) This section does not apply to remuneration exempted under 
446.23 	the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment 
446.24 	made under a federal health care program which is exempt from liability by United States 
446.25 	Code, title 42, section 1001.952.
446.26 	(b) This section does not apply to:
446.27 	(1) any amount paid by an employer to a bona fide employee for providing covered 
446.28 	items or services under chapter 142E while acting in the course and scope of employment; 
446.29 	or
446.30 	(2) child care provider discounts, scholarships, or other financial assistance to families 
446.31 	allowed under section 142E.17, subdivision 7.
446.32 		Subd. 5.Sentence. (a) A person convicted under subdivision 2 or 3 may be sentenced 
446.33 	pursuant to section 609.52, subdivision 3.
447.1 	(b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market 
447.2 	value of the good, facility, service, or item that was obtained as a direct or indirect result 
447.3 	of the prohibited payment.
447.4 	(c) For purposes of sentencing a violation of subdivision 3, "value" means the amount 
447.5 	of the prohibited payment solicited or received.
447.6 	(d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed 
447.7 	to have been rendered in violation of this section is noncompensable and unenforceable at 
447.8 	the time the claim is made.
447.9 		Subd. 6.Aggregation. In a prosecution under this section, the value of the money, 
447.10 	property, or benefit received or solicited by the defendant within a six-month period may 
447.11 	be aggregated and the defendant charged accordingly in applying the provisions of 
447.12 	subdivision 5.
447.13 		Subd. 7.False claims. In addition to the penalties provided for in this section, a claim, 
447.14 	as defined in section 15C.01, subdivision 2, that includes items or services resulting from 
447.15 	a violation of this section constitutes a false or fraudulent claim for purposes of section 
447.16 	15C.02.

447.17 	EFFECTIVE DATE. This section is effective August 1, 2025, and applies to crimes 
447.18 	committed on or after that date.

447.19 	Sec. 15. Laws 2023, chapter 70, article 7, section 34, the effective date, is amended to 
447.20 	read:

447.21 	EFFECTIVE DATE. This section is effective for background studies requested on or 
447.22 	after August 1, 2024 the day following final enactment.

447.23 	Sec. 16. REPEALER.
 447.24 	Minnesota Statutes 2024, section 245A.11, subdivision 8, is repealed.

447.25 	EFFECTIVE DATE. This section is effective August 1, 2025.

448.1 	ARTICLE 16
448.2 	ECONOMIC SUPPORTS

448.3 	Section 1. Minnesota Statutes 2024, section 142A.03, is amended by adding a subdivision 
448.4 	to read:
448.5 		Subd. 35.Electronic benefits transfer; contracting and procurement. Notwithstanding 
448.6 	chapter 16C, the commissioner is exempt from the contract term limits for the issuance of 
448.7 	public benefits through an electronic benefit transfer system and related services. These 
448.8 	contracts may have up to an initial five-year term, with extensions not to exceed a ten-year 
448.9 	total contract duration.

448.10 	Sec. 2. [142F.141] PREPARED MEALS FOOD RELIEF GRANTS.
448.11 		Subdivision 1.Establishment The commissioner of children, youth, and families must 
448.12 	establish a prepared meals grant program to provide hunger relief to Minnesotans 
448.13 	experiencing food insecurity and who have difficulty preparing meals due to limited mobility, 
448.14 	disability, or limited resources.
448.15 		Subd. 2.Eligible grantees. (a) Eligible grantees are nonprofit organizations or Minnesota 
448.16 	Tribal governments, as defined in section 10.65, with a demonstrated history of providing 
448.17 	and distributing prepared meals that are customized for the population that the organization 
448.18 	or Tribal government serves, including tailoring meals to cultural, religious, and dietary 
448.19 	needs.
448.20 	(b) An individual or nonprofit organization affiliated with Feeding Our Future is 
448.21 	prohibited from receiving grant funds under this section.
448.22 		Subd. 3.Application. Eligible grantees applying for grant money under this section 
448.23 	must apply to the commissioner on the forms and in the time and manner established by 
448.24 	the commissioner.
448.25 		Subd. 4.Allowable uses of grant funds. (a) Eligible grantees must use grant money 
448.26 	awarded under this section to fund a prepared meals program that primarily targets individuals 
448.27 	18 years of age or older and under 61 years of age, and their dependents experiencing food 
448.28 	insecurity. Grantees must not receive funding from other state and federal meal programs 
448.29 	for activities funded under this section.
448.30 	(b) Grantees must prepare meals in a licensed commercial kitchen and distribute meals 
448.31 	according to ServSafe guidelines.
449.1 		Subd. 5.Duties of the commissioner. (a) The commissioner must develop a process 
449.2 	for determining eligible grantees under this section.
449.3 	(b) In granting money, the commissioner must prioritize applicants that:
449.4 	(1) have demonstrated the ability to provide prepared meals to racially, ethnically, and 
449.5 	geographically diverse populations who are at greater risk for food insecurity;
449.6 	(2) work with external community partners to distribute meals targeting nontraditional 
449.7 	meal sites to reach those most in need; and
449.8 	(3) have a demonstrated history of sourcing at least 50 percent of the prepared meal 
449.9 	ingredients from:
449.10 	(i) Minnesota food producers and processors; or
449.11 	(ii) food that is donated or would otherwise be waste.
449.12 	(c) The commissioner must consider geographic distribution to ensure statewide coverage 
449.13 	when awarding grants and must minimize the number of grantees to simplify administrative 
449.14 	burdens and costs.
449.15 		Subd. 6.Reporting. (a) Grantees receiving money under this section must retain records 
449.16 	documenting expenditure of the money and comply with any additional documentation 
449.17 	requirements imposed by the commissioner.
449.18 	(b) Grantees must report on the use of money received under this section to the 
449.19 	commissioner. The commissioner must determine the timing and form required for the 
449.20 	reports.
449.21 		Subd. 7.Ineligible expenditures. If the commissioner determines that ineligible 
449.22 	expenditures are made by a grantee under this section, the ineligible amount must be repaid 
449.23 	by the grantee to the commissioner and deposited in the general fund.

449.24 	Sec. 3. [142F.16] REGIONAL FOOD BANK GRANTS.
449.25 		Subdivision 1.Establishment. The commissioner of children, youth, and families must 
449.26 	establish regional food bank grants to increase the availability of food to individuals and 
449.27 	families in need.
449.28 		Subd. 2.Distribution of appropriation. The commissioner must distribute funds 
449.29 	appropriated under this section to regional food banks and Minnesota Tribal governments, 
449.30 	as defined in section 10.65. The commissioner must distribute the funds under this section 
449.31 	in accordance with the federal The Emergency Food Assistance Program (TEFAP) formula 
450.1 	and the guidelines of the United States Department of Agriculture. The commissioner may 
450.2 	increase or decrease a qualifying recipient's proportionate amount if the commissioner 
450.3 	determines the increase or decrease is necessary to meet community needs or demands for 
450.4 	food in Minnesota. Food banks and Minnesota Tribal governments  must be in compliance 
450.5 	with TEFAP regulations from the United States Department of Agriculture in order to 
450.6 	receive funding under this section, as applicable.
450.7 		Subd. 3.Allowable uses of funds. (a) Grant funds distributed to regional food banks 
450.8 	under this section must be used to purchase, transport, and coordinate the distribution of 
450.9 	food to TEFAP providers.
450.10 	(b) Grant funds distributed to Minnesota Tribal governments under this section must be 
450.11 	used to purchase, transport, and coordinate the distribution of food to individuals and families 
450.12 	in need.
450.13 	(c) Grant funds distributed under this section may also be used to purchase personal 
450.14 	hygiene products, including but not limited to diapers and toilet paper.
450.15 		Subd. 4.Reporting. (a) Food banks and Minnesota Tribal governments receiving grant 
450.16 	funds under this section must retain records documenting expenditures of the grant funds 
450.17 	and comply with any additional documentation requirements imposed by the commissioner.
450.18 	(b) Food banks and Minnesota Tribal governments must report on the use of grant funds 
450.19 	received under this section to the commissioner. The commissioner must determine the 
450.20 	timing and form required for the reports.
450.21 		Subd. 5.Ineligible expenditures. If the commissioner determines that ineligible 
450.22 	expenditures were made by a food bank or Minnesota Tribal government under this section, 
450.23 	the ineligible amount must be repaid by the food bank or Tribal government to the 
450.24 	commissioner and deposited in the general fund.

450.25 	Sec. 4. FAMILY SUPPORTIVE HOUSING GRANT PROGRAM.
 450.26 		Subdivision 1.Establishment; purpose. The commissioner of human services must 
450.27 	establish a family supportive housing grant program to award competitive grants to eligible 
450.28 	applicants operating supportive housing for families.
450.29 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
450.30 	(b) "Family" means a nontemporary household unit that includes at least one child and 
450.31 	one parent or legal guardian.
450.32 	(c) "Family permanent supportive housing" means housing that:
451.1 	(1) is not time limited;
451.2 	(2) is affordable for those at or below 30 percent of the area median income;
451.3 	(3) offers specialized support services to residents tailored to the needs of children and 
451.4 	families; and
451.5 	(4) is available to families with multiple barriers to obtaining and maintaining housing, 
451.6 	including but not limited to those who are homeless or at risk of homelessness; those with 
451.7 	mental illness, substance use disorders, and other disabilities; and those referred by child 
451.8 	protection services.
451.9 	(d) "Resident" means a resident of family permanent supportive housing.
451.10 		Subd. 3.Eligibility. To be eligible for a grant under this section, an applicant must be 
451.11 	currently operating family supportive housing and be a nonprofit organization or a Minnesota 
451.12 	Tribal government.
451.13 		Subd. 4.Application and administration. (a) When applying to the commissioner for 
451.14 	a grant under this section, each applicant must include the number of families they estimate 
451.15 	to serve.
451.16 	(b) Within available appropriations, the commissioner must award grant money to eligible 
451.17 	grantees based on the estimated number of families served. The commissioner must use 
451.18 	best efforts to ensure that 60 percent of the families served are within the seven-county 
451.19 	metropolitan area and 40 percent of the families served are outside the seven-county 
451.20 	metropolitan area. The commissioner must use best efforts to ensure that ten percent of the 
451.21 	overall families served are members of Minnesota's Tribal Nations.
451.22 	(c) By June 30, 2026, each grantee must provide a report to the commissioner on how 
451.23 	many families the grantee served and what services the grantee provided.
451.24 		Subd. 5.Eligible uses of grant money. An eligible applicant that receives grant money 
451.25 	under this section must use the money for the services described in subdivision 6.
451.26 		Subd. 6.Specialized family support services. Specialized family support services are 
451.27 	nonmandatory, trauma-informed, and culturally appropriate services designed to help family 
451.28 	residents maintain secure, dignified housing and provide a safe, stable environment for 
451.29 	children. Services provided may include but are not limited to:
451.30 	(1) age-appropriate child-centric services for education and enrichment;
451.31 	(2) stabilization services such as:
451.32 	(i) educational assessment and referrals to educational programs;
452.1 	(ii) career planning, work skills training, job placement, and employment retention;
452.2 	(iii) budgeting and money management;
452.3 	(iv) referral for counseling regarding violence and sexual exploitation;
452.4 	(v) referral for medical or psychiatric services or substance use disorder treatment;
452.5 	(vi) parenting skills training;
452.6 	(vii) self-sufficiency support services or life skills training, including tenant education 
452.7 	and support to sustain housing; and
452.8 	(viii) aftercare and follow-up services; and
452.9 	(3) 24-hour-a-day, seven-day-a-week on-site staffing, including but not limited to front 
452.10 	desk and security.

452.11 	ARTICLE 17
452.12 	CHILD PROTECTION AND WELFARE

452.13 	Section 1. Minnesota Statutes 2024, section 142A.03, subdivision 2, is amended to read:
452.14 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
452.15 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
452.16 	out the duties and responsibilities of the commissioner. Any money received under this 
452.17 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
452.18 	The commissioner must biennially report to the chairs and ranking minority members of 
452.19 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
452.20 	list of all grants and gifts received under this subdivision.
452.21 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
452.22 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
452.23 	commissioner.
452.24 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
452.25 	private agencies, for-profit and nonprofit organizations, and individuals using appropriated 
452.26 	money.
452.27 	(d) The commissioner must develop program objectives and performance measures for 
452.28 	evaluating progress toward achieving the objectives. The commissioner must identify the 
452.29 	objectives, performance measures, and current status of achieving the measures in a biennial 
452.30 	report to the chairs and ranking minority members of relevant legislative committees and 
453.1 	divisions. The report is due no later than January 15 each even-numbered year. The report 
453.2 	must include, when possible, the following objectives:
453.3 	(1) centering and including the lived experiences of children and youth, including those 
453.4 	with disabilities and mental illness and their families, in all aspects of the department's work;
453.5 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
453.6 	children and youth facing racial, economic, or geographic inequities;
453.7 	(3) increasing coordination and reducing inefficiencies among the department's programs 
453.8 	and the funding sources that support the programs;
453.9 	(4) increasing the alignment and coordination of family access to child care and early 
453.10 	learning programs and improving systems of support for early childhood and learning 
453.11 	providers and services;
453.12 	(5) improving the connection between the department's programs and the kindergarten 
453.13 	through grade 12 and higher education systems; and
453.14 	(6) minimizing and streamlining the effort required of youth and families to receive 
453.15 	services to which the youth and families are entitled.
453.16 	(e) The commissioner shall administer and supervise the forms of public assistance and 
453.17 	other activities or services that are vested in the commissioner. Administration and 
453.18 	supervision of activities or services includes but is not limited to assuring timely and accurate 
453.19 	distribution of benefits, completeness of service, and quality program management. In 
453.20 	addition to administering and supervising activities vested by law in the department, the 
453.21 	commissioner has the authority to:
453.22 	(1) require county agency participation in training and technical assistance programs to 
453.23 	promote compliance with statutes, rules, federal laws, regulations, and policies governing 
453.24 	the programs and activities administered by the commissioner;
453.25 	(2) monitor, on an ongoing basis, the performance of county agencies in the operation 
453.26 	and administration of activities and programs; enforce compliance with statutes, rules, 
453.27 	federal laws, regulations, and policies governing welfare services; and promote excellence 
453.28 	of administration and program operation;
453.29 	(3) develop a quality control program or other monitoring program to review county 
453.30 	performance and accuracy of benefit determinations;
454.1 	(4) require county agencies to make an adjustment to the public assistance benefits issued 
454.2 	to any individual consistent with federal law and regulation and state law and rule and to 
454.3 	issue or recover benefits as appropriate;
454.4 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
454.5 	administrative reimbursement according to the procedures set forth in section 142A.10;
454.6 	(6) make contracts with and grants to public and private agencies and organizations, 
454.7 	both for-profit and nonprofit, and individuals, using appropriated funds; and
454.8 	(7) enter into contractual agreements with federally recognized Indian Tribes with a 
454.9 	reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved 
454.10 	family assistance program or any other program under the supervision of the commissioner. 
454.11 	The commissioner shall consult with the affected county or counties in the contractual 
454.12 	agreement negotiations, if the county or counties wish to be included, in order to avoid the 
454.13 	duplication of county and Tribal assistance program services. The commissioner may 
454.14 	establish necessary accounts for the purposes of receiving and disbursing funds as necessary 
454.15 	for the operation of the programs.
454.16 	The commissioner shall work in conjunction with the commissioner of human services to 
454.17 	carry out the duties of this paragraph when necessary and feasible.
454.18 	(f) The commissioner shall inform county agencies, on a timely basis, of changes in 
454.19 	statute, rule, federal law, regulation, and policy necessary to county agency administration 
454.20 	of the programs and activities administered by the commissioner.
454.21 	(g) The commissioner shall administer and supervise child welfare activities, including 
454.22 	promoting the enforcement of laws preventing child maltreatment and protecting children 
454.23 	with a disability and children who are in need of protection or services, licensing and 
454.24 	supervising child care and child-placing agencies, and supervising the care of children in 
454.25 	foster care. The commissioner shall coordinate with the commissioner of human services 
454.26 	on activities impacting children overseen by the Department of Human Services, such as 
454.27 	disability services, behavioral health, and substance use disorder treatment.
454.28 	(h) The commissioner shall assist and cooperate with local, state, and federal departments, 
454.29 	agencies, and institutions.
454.30 	(i) The commissioner shall establish and maintain any administrative units reasonably 
454.31 	necessary for the performance of administrative functions common to all divisions of the 
454.32 	department.
455.1 	(j) The commissioner shall act as designated guardian of children pursuant to chapter 
455.2 	260C. For children under the guardianship of the commissioner or a Tribe in Minnesota 
455.3 	recognized by the Secretary of the Interior whose interests would be best served by adoptive 
455.4 	placement, the commissioner may contract with a licensed child-placing agency or a 
455.5 	Minnesota Tribal social services agency to provide adoption services. For children in 
455.6 	out-of-home care whose interests would be best served by a transfer of permanent legal and 
455.7 	physical custody to a relative under section 260C.515, subdivision 4, or equivalent in Tribal 
455.8 	code, the commissioner may contract with a licensed child-placing agency or a Minnesota 
455.9 	Tribal social services agency to provide permanency services. A contract with a licensed 
455.10 	child-placing agency must be designed to supplement existing county efforts and may not 
455.11 	replace existing county programs or Tribal social services, unless the replacement is agreed 
455.12 	to by the county board and the appropriate exclusive bargaining representative, Tribal 
455.13 	governing body, or the commissioner has evidence that child placements of the county 
455.14 	continue to be substantially below that of other counties. Funds encumbered and obligated 
455.15 	under an agreement for a specific child shall remain available until the terms of the agreement 
455.16 	are fulfilled or the agreement is terminated.
455.17 	(k) The commissioner has the authority to conduct and administer experimental projects 
455.18 	to test methods and procedures of administering assistance and services to recipients or 
455.19 	potential recipients of public benefits. To carry out the experimental projects, the 
455.20 	commissioner may waive the enforcement of existing specific statutory program 
455.21 	requirements, rules, and standards in one or more counties. The order establishing the waiver 
455.22 	must provide alternative methods and procedures of administration and must not conflict 
455.23 	with the basic purposes, coverage, or benefits provided by law. No project under this 
455.24 	paragraph shall exceed four years. No order establishing an experimental project as authorized 
455.25 	by this paragraph is effective until the following conditions have been met:
455.26 	(1) the United States Secretary of Health and Human Services has agreed, for the same 
455.27 	project, to waive state plan requirements relative to statewide uniformity; and
455.28 	(2) a comprehensive plan, including estimated project costs, has been approved by the 
455.29 	Legislative Advisory Commission and filed with the commissioner of administration.
455.30 	(l) The commissioner shall, according to federal requirements and in coordination with 
455.31 	the commissioner of human services, establish procedures to be followed by local welfare 
455.32 	boards in creating citizen advisory committees, including procedures for selection of 
455.33 	committee members.
456.1 	(m) The commissioner shall allocate federal fiscal disallowances or sanctions that are 
456.2 	based on quality control error rates for the aid to families with dependent children (AFDC) 
456.3 	program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition 
456.4 	Assistance Program (SNAP) in the following manner:
456.5 	(1) one-half of the total amount of the disallowance shall be borne by the county boards 
456.6 	responsible for administering the programs. For AFDC, disallowances shall be shared by 
456.7 	each county board in the same proportion as that county's expenditures to the total of all 
456.8 	counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county 
456.9 	board, with 50 percent of the sanction being distributed to each county in the same proportion 
456.10 	as that county's administrative costs for SNAP benefits are to the total of all SNAP 
456.11 	administrative costs for all counties, and 50 percent of the sanctions being distributed to 
456.12 	each county in the same proportion as that county's value of SNAP benefits issued are to 
456.13 	the total of all benefits issued for all counties. Each county shall pay its share of the 
456.14 	disallowance to the state of Minnesota. When a county fails to pay the amount due under 
456.15 	this paragraph, the commissioner may deduct the amount from reimbursement otherwise 
456.16 	due the county, or the attorney general, upon the request of the commissioner, may institute 
456.17 	civil action to recover the amount due; and
456.18 	(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing 
456.19 	noncompliance by one or more counties with a specific program instruction, and that knowing 
456.20 	noncompliance is a matter of official county board record, the commissioner may require 
456.21 	payment or recover from the county or counties, in the manner prescribed in clause (1), an 
456.22 	amount equal to the portion of the total disallowance that resulted from the noncompliance 
456.23 	and may distribute the balance of the disallowance according to clause (1).
456.24 	(n) The commissioner shall develop and implement special projects that maximize 
456.25 	reimbursements and result in the recovery of money to the state. For the purpose of recovering 
456.26 	state money, the commissioner may enter into contracts with third parties. Any recoveries 
456.27 	that result from projects or contracts entered into under this paragraph shall be deposited 
456.28 	in the state treasury and credited to a special account until the balance in the account reaches 
456.29 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
456.30 	transferred and credited to the general fund. All money in the account is appropriated to the 
456.31 	commissioner for the purposes of this paragraph.
456.32 	(o) The commissioner has the authority to establish and enforce the following county 
456.33 	reporting requirements:
457.1 	(1) the commissioner shall establish fiscal and statistical reporting requirements necessary 
457.2 	to account for the expenditure of funds allocated to counties for programs administered by 
457.3 	the commissioner. When establishing financial and statistical reporting requirements, the 
457.4 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
457.5 	the reports can be simplified or the number of reports can be reduced;
457.6 	(2) the county board shall submit monthly or quarterly reports to the department as 
457.7 	required by the commissioner. Monthly reports are due no later than 15 working days after 
457.8 	the end of the month. Quarterly reports are due no later than 30 calendar days after the end 
457.9 	of the quarter, unless the commissioner determines that the deadline must be shortened to 
457.10 	20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss 
457.11 	of federal funding. Only reports that are complete, legible, and in the required format shall 
457.12 	be accepted by the commissioner;
457.13 	(3) if the required reports are not received by the deadlines established in clause (2), the 
457.14 	commissioner may delay payments and withhold funds from the county board until the next 
457.15 	reporting period. When the report is needed to account for the use of federal funds and the 
457.16 	late report results in a reduction in federal funding, the commissioner shall withhold from 
457.17 	the county boards with late reports an amount equal to the reduction in federal funding until 
457.18 	full federal funding is received;
457.19 	(4) a county board that submits reports that are late, illegible, incomplete, or not in the 
457.20 	required format for two out of three consecutive reporting periods is considered 
457.21 	noncompliant. When a county board is found to be noncompliant, the commissioner shall 
457.22 	notify the county board of the reason the county board is considered noncompliant and 
457.23 	request that the county board develop a corrective action plan stating how the county board 
457.24 	plans to correct the problem. The corrective action plan must be submitted to the 
457.25 	commissioner within 45 days after the date the county board received notice of 
457.26 	noncompliance;
457.27 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after 
457.28 	the date the report was originally due. If the commissioner does not receive a report by the 
457.29 	final deadline, the county board forfeits the funding associated with the report for that 
457.30 	reporting period and the county board must repay any funds associated with the report 
457.31 	received for that reporting period;
457.32 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
457.33 	under clause (3) or (5) if the county demonstrates that the commissioner failed to provide 
457.34 	appropriate forms, guidelines, and technical assistance to enable the county to comply with 
458.1 	the requirements. If the county board disagrees with an action taken by the commissioner 
458.2 	under clause (3) or (5), the county board may appeal the action according to sections 14.57 
458.3 	to 14.69; and
458.4 	(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment 
458.5 	of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover 
458.6 	costs incurred due to actions taken by the commissioner under clause (3) or (5).
458.7 	(p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit 
458.8 	exceptions when federal fiscal disallowances or sanctions are based on a statewide random 
458.9 	sample in direct proportion to each county's claim for that period.
458.10 	(q) The commissioner is responsible for ensuring the detection, prevention, investigation, 
458.11 	and resolution of fraudulent activities or behavior by applicants, recipients, and other 
458.12 	participants in the programs administered by the department. The commissioner shall 
458.13 	cooperate with the commissioner of education to enforce the requirements for program 
458.14 	integrity and fraud prevention for investigation for child care assistance under chapter 142E.
458.15 	(r) The commissioner shall require county agencies to identify overpayments, establish 
458.16 	claims, and utilize all available and cost-beneficial methodologies to collect and recover 
458.17 	these overpayments in the programs administered by the department.
458.18 	(s) The commissioner shall develop recommended standards for child foster care homes 
458.19 	that address the components of specialized therapeutic services to be provided by child 
458.20 	foster care homes with those services.
458.21 	(t) The commissioner shall authorize the method of payment to or from the department 
458.22 	as part of the programs administered by the department. This authorization includes the 
458.23 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
458.24 	the programs administered by the department.
458.25 	(u) In coordination with the commissioner of human services, the commissioner shall 
458.26 	create and provide county and Tribal agencies with blank applications, affidavits, and other 
458.27 	forms as necessary for public assistance programs.
458.28 	(v) The commissioner shall cooperate with the federal government and its public welfare 
458.29 	agencies in any reasonable manner as may be necessary to qualify for federal aid for 
458.30 	temporary assistance for needy families and in conformity with Title I of Public Law 104-193, 
458.31 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
458.32 	amendments, including making reports that contain information required by the federal 
459.1 	Social Security Advisory Board and complying with any provisions the board may find 
459.2 	necessary to assure the correctness and verification of the reports.
459.3 	(w) On or before January 15 in each even-numbered year, the commissioner shall make 
459.4 	a biennial report to the governor concerning the activities of the agency.
459.5 	(x) The commissioner shall enter into agreements with other departments of the state as 
459.6 	necessary to meet all requirements of the federal government.
459.7 	(y) The commissioner may cooperate with other state agencies in establishing reciprocal 
459.8 	agreements in instances where a child receiving Minnesota family investment program 
459.9 	(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out 
459.10 	of the state, in order that the child may continue to receive MFIP or equivalent aid from the 
459.11 	state moved from until the child has resided for one year in the state moved to.
459.12 	(z) The commissioner shall provide appropriate technical assistance to county agencies 
459.13 	to develop methods to have county financial workers remind and encourage recipients of 
459.14 	aid to families with dependent children, the Minnesota family investment program, the 
459.15 	Minnesota family investment plan, family general assistance, or SNAP benefits whose 
459.16 	assistance unit includes at least one child under the age of five to have each young child 
459.17 	immunized against childhood diseases. The commissioner must examine the feasibility of 
459.18 	utilizing the capacity of a statewide computer system to assist county agency financial 
459.19 	workers in performing this function at appropriate intervals.
459.20 	(aa) The commissioner shall have the power and authority to accept on behalf of the 
459.21 	state contributions and gifts for the use and benefit of children under the guardianship or 
459.22 	custody of the commissioner. The commissioner may also receive and accept on behalf of 
459.23 	such children money due and payable to them as old age and survivors insurance benefits, 
459.24 	veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions, 
459.25 	and benefits under this paragraph must be deposited in and disbursed from the social welfare 
459.26 	fund provided for in sections 256.88 to 256.92.
459.27 	(bb) The specific enumeration of powers and duties in this section must not be construed 
459.28 	to be a limitation upon the general powers granted to the commissioner.

459.29 	Sec. 2. Minnesota Statutes 2024, section 260.810, subdivision 1, is amended to read:
459.30 		Subdivision 1.Payments. The commissioner shall make grant payments to each approved 
459.31 	program in four quarterly installments a year. The commissioner may certify an advance 
459.32 	payment for the first quarter of the state fiscal year. Later payments must be made upon 
459.33 	receipt by the state of a quarterly report on finances and program activities quarterly.

460.1 	Sec. 3. Minnesota Statutes 2024, section 260.810, subdivision 2, is amended to read:
460.2 		Subd. 2.Quarterly report Reporting. The commissioner shall specify engage Tribal 
460.3 	and urban Indian organizations to establish requirements for reports and reporting timelines, 
460.4 	including quarterly fiscal reports submitted to the commissioner at least annually, according 
460.5 	to section 142A.03, subdivision 2, paragraph (o). Each quarter reporting period as agreed 
460.6 	upon by the commissioner and grantee, an approved program receiving an Indian child 
460.7 	welfare grant shall submit a report to the commissioner that includes:
460.8 	(1) a detailed accounting of grant money expended during the preceding quarter reporting 
460.9 	period, specifying expenditures by line item and year to date; and
460.10 	(2) a description of Indian child welfare activities conducted during the preceding quarter
460.11 	reporting period, including the number of clients served and the type of services provided.
460.12 	The quarterly Reports must be submitted no later than 30 days after the end of each 
460.13 	quarter agreed upon reporting timelines of the state fiscal year.

460.14 	Sec. 4. Minnesota Statutes 2024, section 260.821, subdivision 2, is amended to read:
460.15 		Subd. 2.Special focus grants. The amount available for grants established under section 
460.16 	260.785, subdivision 2, for child-placing agencies, Tribes, Indian organizations, and other 
460.17 	social services organizations is one-fifth of the total annual appropriation for Indian child 
460.18 	welfare grants. The maximum award under this subdivision is $100,000 a year for programs 
460.19 	approved by the commissioner.

460.20 	Sec. 5. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
460.21 	FAMILIES; CHILD WELFARE FISCAL ANALYSIS.
 460.22 		Subdivision 1.Child welfare fiscal analysis. The commissioner of children, youth, and 
460.23 	families must contract with a third-party consultant selected according to subdivision 2 to 
460.24 	conduct a fiscal analysis to identify and make recommendations on how to best utilize all 
460.25 	available child welfare funding streams and federal resources for supporting children, 
460.26 	families, and county and Tribal child welfare service providers across Minnesota.
460.27 		Subd. 2.Fiscal analysis consultant selection. The commissioner, with input from the 
460.28 	Association of Minnesota Counties, the Minnesota Indian Affairs Council, community 
460.29 	nonprofits, community providers, and other child welfare system stakeholders, must select 
460.30 	an independent third-party consultant to conduct the fiscal analysis required under this 
460.31 	section. The consultant must have expertise in and experience with child welfare systems 
460.32 	and conducting fiscal analyses.
461.1 		Subd. 3.Child welfare fiscal analysis requirements. When conducting the child welfare 
461.2 	fiscal analysis under this section, the third-party consultant must evaluate:
461.3 	(1) financial systems in Minnesota's child welfare system and funding sources available 
461.4 	to the child welfare system; and
461.5 	(2) state, county, and Tribal access to and use of funding or reimbursements for expenses 
461.6 	related to child welfare, including but not limited to legal representation, training, and 
461.7 	prevention services, under federal Title IV-E and Title IV-B, the federal Child Abuse 
461.8 	Prevention and Treatment Act, TANF, Medicaid, the federal Social Services Block Grant 
461.9 	Program, and other federal funds.
461.10 		Subd. 4.Stakeholder engagement. The third-party consultant conducting the fiscal 
461.11 	analysis under this section must engage with community child welfare service providers; 
461.12 	state, county, and Tribal social services agencies; and other individuals or organizations 
461.13 	with expertise in child welfare services, as the consultant determines to be appropriate.
461.14 		Subd. 5.Report on fiscal analysis. By June 30, 2027, the third-party consultant 
461.15 	conducting the child welfare fiscal analysis under this section must submit a report to the 
461.16 	commissioner of children, youth, and families and the chairs and ranking minority members 
461.17 	of the legislative committees with jurisdiction over the child welfare system. The report 
461.18 	must include the findings from the fiscal analysis required in this section and 
461.19 	recommendations on:
461.20 	(1) how to maximize the state's receipt and use of child welfare funding streams and 
461.21 	federal resources; and
461.22 	(2) legislative proposals for any statutory or funding changes necessary to maximize the 
461.23 	state's receipt and use of child welfare funding streams and federal resources.
461.24 		Subd. 6.Tribal participation. Each of Minnesota's 11 federally recognized Tribal 
461.25 	Nations may participate in the fiscal analysis required under this section. Tribal Nations 
461.26 	that choose to participate have sovereignty over data they choose to share with the consultant, 
461.27 	or other individuals or entities, and may request that their data not be included in any public 
461.28 	documents.

461.29 	Sec. 6. SCAN OF AND REPORT ON OUT-OF-SCHOOL AND YOUTH 
461.30 	PROGRAMMING.
 461.31 	(a) The commissioner of children, youth, and families must conduct a scan of 
461.32 	out-of-school and youth programming for youth under 21 years of age. The scan may include 
462.1 	a review of existing reports, targeted interviews, surveys, and other methodologies, as 
462.2 	determined by the commissioner.
462.3 	(b) When conducting the scan, the commissioner must collaborate with community 
462.4 	organizations and programming providers who provide out-of-school and youth 
462.5 	programming; parents, youth, and families who participate or have participated in 
462.6 	out-of-school and youth programming; and other individuals with expertise in out-of-school 
462.7 	and youth programming in order to:
462.8 	(1) identify different avenues for gathering information; and
462.9 	(2) collaborate in the outreach and facilitation of focused community engagement.
462.10 	(c) By July 1, 2026, the commissioner must prepare and submit a final report to the 
462.11 	chairs and ranking minority members of the legislative committees with jurisdiction over 
462.12 	children, youth, and families. The commissioner may contract with consultants to help with 
462.13 	the development of the report. The report must include:
462.14 	(1) information on current federal, state, Tribal, county, and city out-of-school and youth 
462.15 	programs;
462.16 	(2) school districts that offer enrichment activities;
462.17 	(3) information on availability and amount of funding sources, the costs to provide the 
462.18 	out-of-school and youth programs, and the costs of the programs for families;
462.19 	(4) any barriers and gaps for families to participate in the out-of-school and youth 
462.20 	programming, as identified by findings from the scan under paragraph (a) and in discussions 
462.21 	with community members and program providers;
462.22 	(5) information on the populations participating in out-of-school and youth programming;
462.23 	(6) differences in programming needs, opportunities, and accessibility between different 
462.24 	demographics and different regions of Minnesota; and
462.25 	(7) recommendations on policy and funding needs, including recommending potential 
462.26 	partners for program delivery to expand access to quality out-of-school and youth 
462.27 	programming.
462.28 	(d) By July 1, 2026, the commissioner must present the final report to the chairs and 
462.29 	ranking minority members of the legislative committees with jurisdiction over children, 
462.30 	youth, and families.

463.1 	ARTICLE 18
463.2 	CHILD PROTECTION AND WELFARE POLICY

463.3 	Section 1. Minnesota Statutes 2024, section 142A.609, subdivision 11, is amended to 
463.4 	read:
463.5 		Subd. 11.Treatment of Supplemental Security Income. (a) If a child placed in foster 
463.6 	care receives benefits through Supplemental Security Income (SSI) at the time of foster 
463.7 	care placement or subsequent to placement in foster care, the financially responsible agency 
463.8 	may only apply to be the payee for the child for the duration of the child's placement in 
463.9 	foster care when the court has ordered the financially responsible agency to develop a plan 
463.10 	for the transfer of permanent legal and physical custody of the child to a relative or to file 
463.11 	a termination of parental rights petition under section 260C.204, paragraph (e), clause (2) 
463.12 	or (3); ordered the child permanently placed away from the parent under sections 260C.503 
463.13 	to 260C.521; or approved the continued voluntary foster care placement for the child under 
463.14 	section 260D.07. If a child continues to be eligible for SSI after finalization of the adoption 
463.15 	or transfer of permanent legal and physical custody and is determined to be eligible for a 
463.16 	payment under Northstar Care for Children, a permanent caregiver may choose to receive 
463.17 	payment from both programs simultaneously. The permanent caregiver is responsible to 
463.18 	report the amount of the payment to the Social Security Administration and the SSI payment 
463.19 	will be reduced as required by the Social Security Administration.
463.20 	(b) If a financially responsible agency applies to be the payee for a child who receives 
463.21 	benefits through SSI, or receives the benefits under this subdivision on behalf of a child, 
463.22 	the financially responsible agency must provide written notice by certified mail, return 
463.23 	receipt requested to:
463.24 	(1) the child, if the child is 13 years of age or older;
463.25 	(2) the child's parent, guardian, or custodian or if there is no legal parent or custodian 
463.26 	the child's relative selected by the agency;
463.27 	(3) the guardian ad litem;
463.28 	(4) the legally responsible agency; and
463.29 	(5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3.
463.30 	(c) If a financially responsible agency receives benefits under this subdivision on behalf 
463.31 	of a child 13 years of age or older, the legally responsible agency and the guardian ad litem 
463.32 	must disclose this information to the child in person in a manner that best helps the child 
464.1 	understand the information. This paragraph does not apply in circumstances where the child 
464.2 	is living outside of Minnesota.
464.3 	(d) If a financially responsible agency receives the benefits under this subdivision on 
464.4 	behalf of a child, it cannot use those funds for any other purpose than the care of that child. 
464.5 	The financially responsible agency must not commingle any benefits received under this 
464.6 	subdivision and must not put the benefits received on behalf of a child under this subdivision 
464.7 	into a general fund.
464.8 	(e) If a financially responsible agency receives any benefits under this subdivision, it 
464.9 	must keep a record of:
464.10 	(1) the total dollar amount it received on behalf of all children it receives benefits for;
464.11 	(2) the total number of children it applied to be a payee for; and
464.12 	(3) the total number of children it received benefits for.
464.13 	(f) By July 1, 2025, and each July 1 thereafter, each financially responsible agency must 
464.14 	submit a report to the commissioner of children, youth, and families that includes the 
464.15 	information required under paragraph (e). By September 1 of each year, the commissioner 
464.16 	must submit a report to the chairs and ranking minority members of the legislative committees 
464.17 	with jurisdiction over child protection that compiles the information provided to the 
464.18 	commissioner by each financially responsible agency under paragraph (e); subdivision 12, 
464.19 	paragraph (e); and section 260C.331, subdivision 7, paragraph (d). This paragraph expires 
464.20 	January 31, 2034.

464.21 	Sec. 2. Minnesota Statutes 2024, section 142A.609, subdivision 12, is amended to read:
464.22 		Subd. 12.Treatment of Retirement, Survivors, and Disability Insurance; veteran's 
464.23 	benefits; railroad retirement benefits; and black lung benefits. (a) If a child placed in 
464.24 	foster care receives Retirement, Survivors, and Disability Insurance; veteran's benefits; 
464.25 	railroad retirement benefits; or black lung benefits at the time of foster care placement or 
464.26 	subsequent to placement in foster care, the financially responsible agency may only apply 
464.27 	to be the payee for the child for the duration of the child's placement in foster care when 
464.28 	the court has ordered the financially responsible agency to develop a plan for the transfer 
464.29 	of permanent legal and physical custody of the child to a relative or to file a termination of 
464.30 	parental rights petition under section 260C.204, paragraph (e), clause (2) or (3); ordered 
464.31 	the child permanently placed away from the parent under sections 260C.503 to 260C.521; 
464.32 	or approved the continued voluntary foster care placement for the child under section 
464.33 	260D.07. If it is anticipated that a child will be eligible to receive Retirement, Survivors, 
465.1 	and Disability Insurance; veteran's benefits; railroad retirement benefits; or black lung 
465.2 	benefits after finalization of the adoption or assignment of permanent legal and physical 
465.3 	custody, the permanent caregiver shall apply to be the payee of those benefits on the child's 
465.4 	behalf.
465.5 	(b) If the financially responsible agency applies to be the payee for a child who receives 
465.6 	Retirement, Survivors, and Disability Insurance; veteran's benefits; railroad retirement 
465.7 	benefits; or black lung benefits, or receives the benefits under this subdivision on behalf of 
465.8 	a child, the financially responsible agency must provide written notice by certified mail, 
465.9 	return receipt requested to:
465.10 	(1) the child, if the child is 13 years of age or older;
465.11 	(2) the child's parent, guardian, or custodian or if there is no legal parent or custodian 
465.12 	the child's relative selected by the agency;
465.13 	(3) the guardian ad litem;
465.14 	(4) the legally responsible agency; and
465.15 	(5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3.
465.16 	(c) If a financially responsible agency receives benefits under this subdivision on behalf 
465.17 	of a child 13 years of age or older, the legally responsible agency and the guardian ad litem 
465.18 	must disclose this information to the child in person in a manner that best helps the child 
465.19 	understand the information. This paragraph does not apply in circumstances where the child 
465.20 	is living outside of Minnesota.
465.21 	(d) If a financially responsible agency receives the benefits under this subdivision on 
465.22 	behalf of a child, it cannot use those funds for any other purpose than the care of that child. 
465.23 	The financially responsible agency must not commingle any benefits received under this 
465.24 	subdivision and must not put the benefits received on behalf of a child under this subdivision 
465.25 	into a general fund.
465.26 	(e) If a financially responsible agency receives any benefits under this subdivision, it 
465.27 	must keep a record of:
465.28 	(1) the total dollar amount it received on behalf of all children it receives benefits for;
465.29 	(2) the total number of children it applied to be a payee for; and
465.30 	(3) the total number of children it received benefits for.
466.1 	(f) By July 1, 2025, and each July 1 thereafter, each financially responsible agency must 
466.2 	submit a report to the commissioner of children, youth, and families that includes the 
466.3 	information required under paragraph (e).

466.4 	Sec. 3. Minnesota Statutes 2024, section 142B.01, subdivision 15, is amended to read:
466.5 		Subd. 15.Individual who is related. "Individual who is related" means a spouse, a 
466.6 	parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, 
466.7 	a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, or a legal guardian.
466.8 	For purposes of family child foster care, individual who is related also includes an individual 
466.9 	who, prior to the child's placement in the individual's home for foster care or adoption, is 
466.10 	an important individual of the child or of the child's parent or custodian. Important individual 
466.11 	means an individual with whom the child has previously resided or had significant contact 
466.12 	or who has a significant relationship to the child or the child's parent or custodian.

466.13 	Sec. 4. Minnesota Statutes 2024, section 142B.05, subdivision 3, is amended to read:
466.14 		Subd. 3.Foster care by an individual who is related to a child; license required. (a) 
466.15 	Notwithstanding subdivision 2, paragraph (a), clause (1), in order to provide foster care for 
466.16 	a child, an individual who is related to the child, other than a parent, or legal guardian, must 
466.17 	be licensed by the commissioner except as provided by section 142B.06.
466.18 	(b) If an individual who is related to a child is seeking licensure to provide foster care 
466.19 	for the child and the individual has a domestic partner but is not married to the domestic 
466.20 	partner, only the individual related to the child must be licensed to provide foster care. The 
466.21 	commissioner must conduct background studies on household members according to section 
466.22 	245C.03, subdivision 1.

466.23 	Sec. 5. Minnesota Statutes 2024, section 142B.30, is amended by adding a subdivision to 
466.24 	read:
466.25 		Subd. 13.Individual who is related; agency choice. An individual who is related to 
466.26 	the child may seek foster care licensure through the county agency or a private agency, 
466.27 	licensed and authorized by the commissioner. The child-placing agency, depending on 
466.28 	funding available, must provide information to all potential relative foster care providers 
466.29 	about this choice, including information about available private agencies for foster care 
466.30 	licensure.

467.1 	Sec. 6. Minnesota Statutes 2024, section 142B.47, is amended to read:
467.2 	142B.47 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT DEATH 
467.3 	AND ABUSIVE HEAD TRAUMA FOR CHILD FOSTER CARE PROVIDERS.
467.4 	(a) Licensed child foster care providers, except individuals related to the child who only 
467.5 	care for a relative child, that care for infants or children through five years of age must 
467.6 	document that before caregivers assist in the care of infants or children through five years 
467.7 	of age, they the caregivers are instructed on the standards in section 142B.46 and receive 
467.8 	training on reducing the risk of sudden unexpected infant death and abusive head trauma 
467.9 	from shaking infants and young children. Licensed child foster care providers who are 
467.10 	related to the child, and who only care for a relative child, must document completion of 
467.11 	the training required under this section within 30 days after licensure. This section does not 
467.12 	apply to emergency relative placement under section 142B.06. The training on reducing 
467.13 	the risk of sudden unexpected infant death and abusive head trauma may be provided as:
467.14 	(1) orientation training to child foster care providers who care for infants or children 
467.15 	through five years of age under Minnesota Rules, part 2960.3070, subpart 1; or
467.16 	(2) in-service training to child foster care providers who care for infants or children 
467.17 	through five years of age under Minnesota Rules, part 2960.3070, subpart 2.
467.18 	(b) Training required under this section must be at least one hour in length and must be 
467.19 	completed at least once every five years. At a minimum, the training must address the risk 
467.20 	factors related to sudden unexpected infant death and abusive head trauma, means of reducing 
467.21 	the risk of sudden unexpected infant death and abusive head trauma, and license holder 
467.22 	communication with parents regarding reducing the risk of sudden unexpected infant death 
467.23 	and abusive head trauma.
467.24 	(c) Training for child foster care providers must be approved by the county or private 
467.25 	licensing agency that is responsible for monitoring the child foster care provider under 
467.26 	section 142B.30. The approved training fulfills, in part, training required under Minnesota 
467.27 	Rules, part 2960.3070.

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

467.29 	Sec. 7. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
467.30 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
467.31 	licensed by the Department of Human Services under chapter 245A or the Department of 
467.32 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
468.1 	serve a child or children under eight years of age must document training that fulfills the 
468.2 	requirements in this subdivision.
468.3 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
468.4 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
468.5 	training on the proper use and installation of child restraint systems in motor vehicles. 
468.6 	Training completed under this section may be used to meet initial or ongoing training under 
468.7 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
468.8 	(c) Training required under this section must be completed at orientation or initial training 
468.9 	and repeated at least once every five years. At a minimum, the training must address the 
468.10 	proper use of child restraint systems based on the child's size, weight, and age, and the 
468.11 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
468.12 	holder to transport the child or children.
468.13 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
468.14 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
468.15 	holders may obtain a list of certified and approved trainers through the Department of Public 
468.16 	Safety website or by contacting the agency.
468.17 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
468.18 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
468.19 	for a relative who completes a child seat safety check up. The child seat safety check up 
468.20 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
468.21 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
468.22 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
468.23 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
468.24 	a license and may transport a relative foster child younger than eight years of age. A child 
468.25 	seat safety check up must be completed each time a child requires a different size car seat 
468.26 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
468.27 	complete training that meets the other requirements of this subdivision prior to placement 
468.28 	of another foster child younger than eight years of age in the home or prior to the renewal 
468.29 	of the child foster care license.
468.30 	(f) Notwithstanding paragraph (b), a child foster care license holder who is an individual 
468.31 	related to the child, and who only serves a relative child, must document completion of the 
468.32 	training required under this section within 30 days after licensure.

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

469.1 	Sec. 8. Minnesota Statutes 2024, section 142B.80, is amended to read:
469.2 	142B.80 CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL 
469.3 	HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING.
469.4 	Prior to a nonemergency placement of a child in a foster care home, the child foster care 
469.5 	license holder and caregivers in foster family and treatment foster care settings must complete 
469.6 	two hours of training that addresses the causes, symptoms, and key warning signs of mental 
469.7 	health disorders; cultural considerations; and effective approaches for dealing with a child's 
469.8 	behaviors. At least one hour of the annual training requirement for the foster family license 
469.9 	holder and caregivers must be on children's mental health issues and treatment. Except for 
469.10 	providers and services under chapter 245D and child foster care license holders who are 
469.11 	individuals related to the child who only serve a relative child who does not have fetal 
469.12 	alcohol spectrum disorder, the annual training must also include at least one hour of training 
469.13 	on fetal alcohol spectrum disorders, which must be counted toward the 12 hours of required 
469.14 	in-service training per year. Short-term substitute caregivers are exempt from these 
469.15 	requirements. Training curriculum shall be approved by the commissioner of children, 
469.16 	youth, and families.

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

469.18 	Sec. 9. [142B.81] CHILD FOSTER CARE TRAINING; RELATIVE CAREGIVERS.
469.19 	Notwithstanding the required hours under Minnesota Rules, part 2960.3070, subpart 2, 
469.20 	a child foster care license holder who is an individual related to the child must complete a 
469.21 	minimum of six hours of in-service training per year in one or more of the areas in Minnesota 
469.22 	Rules, part 2960.3070, subpart 2, or in other areas as agreed upon by the licensing agency 
469.23 	and the foster parent. The relative child foster care license holder must consult with the 
469.24 	licensing agency and complete training in areas that are most applicable to caring for the 
469.25 	relative children in foster care in the home. This section does not apply to a child foster care 
469.26 	license holder who is licensed to care for both a relative child and a nonrelative child.

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

469.28 	Sec. 10. Minnesota Statutes 2024, section 245C.02, is amended by adding a subdivision 
469.29 	to read:
469.30 		Subd. 16b.Relative. "Relative" has the meaning given in section 260C.007, subdivision 
469.31 	27. For purposes of background studies affiliated with child foster care licensure, a person 
470.1 	is a relative if the person was known to the child or the child's parent before the child is 
470.2 	placed in foster care.

470.3 	Sec. 11. Minnesota Statutes 2024, section 245C.15, subdivision 4a, is amended to read:
470.4 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
470.5 	subdivisions 1 to 4, for a background study affiliated with a licensed family foster setting, 
470.6 	regardless of how much time has passed, an individual is disqualified under section 245C.14 
470.7 	if the individual committed an act that resulted in a felony-level conviction for sections: 
470.8 	609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder 
470.9 	in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in 
470.10 	the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first 
470.11 	degree);609.223, subdivision 2 (assault in the third degree, past pattern of child abuse); 
470.12 	609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense 
470.13 	under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or 
470.14 	neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325 
470.15 	(criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245 
470.16 	(aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree); 
470.17 	609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child 
470.18 	in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663 
470.19 	(murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child 
470.20 	in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 
470.21 	609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child 
470.22 	in the second degree); 609.268 (injury or death of an unborn child in the commission of a 
470.23 	crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex 
470.24 	trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in, 
470.25 	hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct 
470.26 	in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal 
470.27 	sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 
470.28 	609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory 
470.29 	conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual 
470.30 	conduct); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of 
470.31 	a child); 609.561 (arson in the first degree); 609.582, subdivision 1 (burglary in the first 
470.32 	degree); 609.746 (interference with privacy); 617.23 (indecent exposure); 617.246 (use of 
470.33 	minors in sexual performance prohibited); or 617.247 (possession of pictorial representations 
470.34 	of minors).
471.1 	(b) Notwithstanding subdivisions 1 to 4, for the purposes of a background study affiliated 
471.2 	with a licensed family foster setting, an individual is disqualified under section 245C.14, 
471.3 	regardless of how much time has passed, if the individual:
471.4 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
471.5 	abuse, as defined in section 260E.03, subdivision 20;
471.6 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
471.7 	609.3451 (criminal sexual conduct in the fifth degree);
471.8 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
471.9 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
471.10 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
471.11 	or
471.12 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
471.13 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
471.14 	(c) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
471.15 	family foster setting,:
471.16 	(1) an individual is disqualified under section 245C.14 if fewer than 20 years have passed 
471.17 	since the termination of the individual's parental rights under section 260C.301, subdivision 
471.18 	1, paragraph (b), or if the individual consented to a termination of parental rights under 
471.19 	section 260C.301, subdivision 1, paragraph (a), to settle a petition to involuntarily terminate 
471.20 	parental rights. An individual is disqualified under section 245C.14 if fewer than 20 years 
471.21 	have passed since the termination of the individual's parental rights in any other state or 
471.22 	country, where the conditions for the individual's termination of parental rights are 
471.23 	substantially similar to the conditions in section 260C.301, subdivision 1, paragraph (b); or
471.24 	(2) when an individual is a relative of the child in foster care, an individual is disqualified 
471.25 	under section 245C.14 if fewer than seven years have passed since the termination of the 
471.26 	individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or if the 
471.27 	individual consented to a termination of parental rights under section 260C.301, subdivision 
471.28 	1, paragraph (a), to settle a petition to involuntarily terminate parental rights. An individual 
471.29 	is disqualified under section 245C.14 if fewer than seven years have passed since the 
471.30 	termination of the individual's parental rights in any other state or country, where the 
471.31 	conditions for the individual's termination of parental rights are substantially similar to the 
471.32 	conditions in section 260C.301, subdivision 1, paragraph (b).
472.1 	(d) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
472.2 	family foster setting, an individual is disqualified under section 245C.14 if fewer than five 
472.3 	years have passed since a felony-level violation for sections: 152.021 (controlled substance 
472.4 	crime in the first degree); 152.022 (controlled substance crime in the second degree); 152.023 
472.5 	(controlled substance crime in the third degree); 152.024 (controlled substance crime in the 
472.6 	fourth degree); 152.025 (controlled substance crime in the fifth degree); 152.0261 (importing 
472.7 	controlled substances across state borders); 152.0262, subdivision 1, paragraph (b) 
472.8 	(possession of substance with intent to manufacture methamphetamine); 152.027, subdivision 
472.9 	6, paragraph (c) (sale or possession of synthetic cannabinoids); 152.096 (conspiracies 
472.10 	prohibited); 152.097 (simulated controlled substances); 152.136 (anhydrous ammonia; 
472.11 	prohibited conduct; criminal penalties; civil liabilities); 152.137 (methamphetamine-related 
472.12 	crimes involving children or vulnerable adults); 169A.24 (felony first-degree driving while 
472.13 	impaired); 243.166 (violation of predatory offender registration requirements); 609.2113 
472.14 	(criminal vehicular operation; bodily harm); 609.2114 (criminal vehicular operation; unborn 
472.15 	child); 609.221 (assault in the first degree); 609.228 (great bodily harm caused by distribution 
472.16 	of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in the death of a 
472.17 	vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure or facilitate 
472.18 	a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the third degree); 
472.19 	609.322, subdivision 1a (solicitation, inducement, and promotion of prostitution; sex 
472.20 	trafficking in the second degree); 609.498, subdivision 1 (tampering with a witness in the 
472.21 	first degree); 609.498, subdivision 1b (aggravated first-degree witness tampering); 609.562 
472.22 	(arson in the second degree); 609.563 (arson in the third degree); 609.582, subdivision 2 
472.23 	(burglary in the second degree); 609.66 (felony dangerous weapons); 609.687 (adulteration); 
472.24 	609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5 (felony-level harassment or 
472.25 	stalking); 609.855, subdivision 5 (shooting at or in a public transit vehicle or facility); or 
472.26 	624.713 (certain people not to possess firearms).
472.27 	(e) Notwithstanding subdivisions 1 to 4, except as provided in paragraph (a), for a 
472.28 	background study affiliated with a licensed family child foster care license, an individual 
472.29 	is disqualified under section 245C.14 if fewer than five years have passed since:
472.30 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
472.31 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
472.32 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
472.33 	fifth degree);
472.34 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
473.1 	(3) a determination or disposition of the individual's failure to make required reports 
473.2 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
473.3 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
473.4 	was recurring or serious;
473.5 	(4) a determination or disposition of the individual's substantiated serious or recurring 
473.6 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
473.7 	serious or recurring maltreatment in any other state, the elements of which are substantially 
473.8 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
473.9 	the definition of serious maltreatment or recurring maltreatment;
473.10 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
473.11 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
473.12 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
473.13 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
473.14 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
473.15 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
473.16 	(f) For purposes of this subdivision, the disqualification begins from:
473.17 	(1) the date of the alleged violation, if the individual was not convicted;
473.18 	(2) the date of conviction, if the individual was convicted of the violation but not 
473.19 	committed to the custody of the commissioner of corrections; or
473.20 	(3) the date of release from prison, if the individual was convicted of the violation and 
473.21 	committed to the custody of the commissioner of corrections.
473.22 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
473.23 	of the individual's supervised release, the disqualification begins from the date of release 
473.24 	from the subsequent incarceration.
473.25 	(g) Notwithstanding paragraph (f), for purposes of paragraph (d), the disqualification 
473.26 	begins from the date of the alleged violation when the individual is a relative of the child 
473.27 	in foster care.
473.28 	(h) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
473.29 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
473.30 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
473.31 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
473.32 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
473.33 	(d) and (e).
474.1 	(h) (i) An individual's offense in any other state or country, where the elements of the 
474.2 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
474.3 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
474.4 	under section 245C.14 if fewer than five years have passed since an offense in any other 
474.5 	state or country, the elements of which are substantially similar to the elements of any 
474.6 	offense listed in paragraphs (d) and (e).

474.7 	Sec. 12. Minnesota Statutes 2024, section 260.65, is amended to read:
474.8 	260.65 NONCUSTODIAL PARENTS; RELATIVE PLACEMENT.
474.9 	(a) Prior to the removal of an African American or a disproportionately represented child 
474.10 	from the child's home, the responsible social services agency must make active efforts to 
474.11 	identify and locate the child's noncustodial or nonadjudicated parent and the child's relatives 
474.12 	to notify the child's parent and relatives that the child is or will be placed in foster care, and 
474.13 	provide the child's parent and relatives with a list of legal resources. The notice to the child's 
474.14 	noncustodial or nonadjudicated parent and relatives must also include the information 
474.15 	required under section 260C.221, subdivision 2, paragraph (b). The responsible social 
474.16 	services agency must maintain detailed records of the agency's efforts to notify parents and 
474.17 	relatives under this section.
474.18 	(b) Notwithstanding the provisions of section 260C.219, the responsible social services 
474.19 	agency must assess an African American or a disproportionately represented child's 
474.20 	noncustodial or nonadjudicated parent's ability to care for the child before placing the child 
474.21 	in foster care. If a child's noncustodial or nonadjudicated parent is willing and able to provide 
474.22 	daily care for the African American or disproportionately represented child temporarily or 
474.23 	permanently, the court shall order that the child be placed in into the home of the noncustodial 
474.24 	or nonadjudicated parent pursuant to section 260C.178 or 260C.201, subdivision 1. The 
474.25 	responsible social services agency must make active efforts to assist a noncustodial or 
474.26 	nonadjudicated parent with remedying any issues that may prevent the child from being 
474.27 	placed with the ordered into the home of a noncustodial or nonadjudicated parent.
474.28 	(c) The relative search, notice, engagement, and placement consideration requirements 
474.29 	under section 260C.221 apply under this act.

474.30 	Sec. 13. Minnesota Statutes 2024, section 260.66, subdivision 1, is amended to read:
474.31 		Subdivision 1.Emergency removal or placement permitted. Nothing in this section 
474.32 	shall be construed to prevent the emergency removal of an African American or a 
474.33 	disproportionately represented child's parent or custodian child or the emergency placement 
475.1 	of the child in a foster setting in order to prevent imminent physical damage or harm to the 
475.2 	child.

475.3 	Sec. 14. Minnesota Statutes 2024, section 260.691, subdivision 1, is amended to read:
475.4 		Subdivision 1.Establishment and duties. (a) The African American Child and Family 
475.5 	Well-Being Advisory Council is established for the Department of Children, Youth, and 
475.6 	Families.
475.7 	(b) The council shall consist of 31 members appointed by the commissioner and must 
475.8 	include representatives with lived personal or professional experience within African 
475.9 	American communities. Members may include but are not limited to youth who have exited 
475.10 	the child welfare system; parents; legal custodians; relative and kinship caregivers or foster 
475.11 	care providers; community service providers, advocates, and members; county and private 
475.12 	social services agency case managers; representatives from faith-based institutions; academic 
475.13 	professionals; a representative from the Council for Minnesotans of African Heritage; the 
475.14 	Ombudsperson for African American Families; and other individuals with experience and 
475.15 	knowledge of African American communities. Council members must be selected through 
475.16 	an open appointments process under section 15.0597. The terms, compensation, and removal 
475.17 	of council members are governed by section 15.059.
475.18 	(c) The African American Child Well-Being Advisory council must:
475.19 	(1) review annual reports related to African American children involved in the child 
475.20 	welfare system. These reports may include but are not limited to the maltreatment, 
475.21 	out-of-home placement, and permanency of African American children;
475.22 	(2) assist with and make recommendations to the commissioner for developing strategies 
475.23 	to reduce maltreatment determinations, prevent unnecessary out-of-home placement, promote 
475.24 	culturally appropriate foster care and shelter or facility placement decisions and settings for 
475.25 	African American children in need of out-of-home placement, ensure timely achievement 
475.26 	of permanency, and improve child welfare outcomes for African American children and 
475.27 	their families;
475.28 	(3) review summary reports on targeted case reviews prepared by the commissioner to 
475.29 	ensure that responsible social services agencies meet the needs of African American children 
475.30 	and their families. Based on data collected from those reviews, the council shall assist the 
475.31 	commissioner with developing strategies needed to improve any identified child welfare 
475.32 	outcomes, including but not limited to maltreatment, out-of-home placement, and permanency 
475.33 	for African American children;
476.1 	(4) assist the Cultural and Ethnic Communities Leadership Council with making make
476.2 	recommendations to the commissioner and the legislature for public policy and statutory 
476.3 	changes that specifically consider the needs of African American children and their families 
476.4 	involved in the child welfare system;
476.5 	(5) advise the commissioner on stakeholder engagement strategies and actions that the 
476.6 	commissioner and responsible social services agencies may take to improve child welfare 
476.7 	outcomes for African American children and their families;
476.8 	(6) assist the commissioner with developing strategies for public messaging and 
476.9 	communication related to racial disproportionality and disparities in child welfare outcomes 
476.10 	for African American children and their families;
476.11 	(7) assist the commissioner with identifying and developing internal and external 
476.12 	partnerships to support adequate access to services and resources for African American 
476.13 	children and their families, including but not limited to housing assistance, employment 
476.14 	assistance, food and nutrition support, health care, child care assistance, and educational 
476.15 	support and training; and
476.16 	(8) assist the commissioner with developing strategies to promote the development of 
476.17 	a culturally diverse and representative child welfare workforce in Minnesota that includes 
476.18 	professionals who are reflective of the community served and who have been directly 
476.19 	impacted by lived experiences within the child welfare system. The council must also assist 
476.20 	the commissioner with exploring strategies and partnerships to address education and training 
476.21 	needs, hiring, recruitment, retention, and professional advancement practices.

476.22 	Sec. 15. Minnesota Statutes 2024, section 260.692, is amended to read:
476.23 	260.692 AFRICAN AMERICAN CHILD AND FAMILY WELL-BEING UNIT.
476.24 		Subdivision 1.Duties. The African American Child and Family Well-Being Unit, 
476.25 	currently established by the commissioner, must:
476.26 	(1) assist with the development of African American cultural competency training and 
476.27 	review child welfare curriculum in the Minnesota Child Welfare Training Academy to 
476.28 	ensure that responsible social services agency staff and other child welfare professionals 
476.29 	are appropriately prepared to engage with African American children and their families and 
476.30 	to support family preservation and reunification;
476.31 	(2) provide technical assistance, including on-site technical assistance, and case 
476.32 	consultation to responsible social services agencies to assist agencies with implementing 
477.1 	and complying with the Minnesota African American Family Preservation and Child Welfare 
477.2 	Disproportionality Act;
477.3 	(3) monitor individual county and statewide disaggregated and nondisaggregated data 
477.4 	to identify trends and patterns in child welfare outcomes, including but not limited to 
477.5 	reporting, maltreatment, out-of-home placement, and permanency of African American 
477.6 	children and develop strategies to address disproportionality and disparities in the child 
477.7 	welfare system;
477.8 	(4) develop and implement a system for conducting case reviews when the commissioner 
477.9 	receives reports of noncompliance with the Minnesota African American Family Preservation 
477.10 	and Child Welfare Disproportionality Act or when requested by the parent or custodian of 
477.11 	an African American child. Case reviews may include but are not limited to a review of 
477.12 	placement prevention efforts, safety planning, case planning and service provision by the 
477.13 	responsible social services agency, relative placement consideration, and permanency 
477.14 	planning;
477.15 	(5) establish and administer a request for proposals process for African American and 
477.16 	disproportionately represented family preservation grants under section 260.693, monitor 
477.17 	grant activities, and provide technical assistance to grantees;
477.18 	(6) in coordination with the African American Child and Family Well-Being Advisory 
477.19 	Council, coordinate services and create internal and external partnerships to support adequate 
477.20 	access to services and resources for African American children and their families, including 
477.21 	but not limited to housing assistance, employment assistance, food and nutrition support, 
477.22 	health care, child care assistance, and educational support and training; and
477.23 	(7) develop public messaging and communication to inform the public about racial 
477.24 	disparities in child welfare outcomes, current efforts and strategies to reduce racial disparities, 
477.25 	and resources available to African American children and their families involved in the 
477.26 	child welfare system.
477.27 		Subd. 2.Case reviews. (a) The African American Child and Family Well-Being Unit 
477.28 	must conduct systemic case reviews to monitor targeted child welfare outcomes, including 
477.29 	but not limited to maltreatment, out-of-home placement, and permanency of African 
477.30 	American children.
477.31 	(b) The reviews under this subdivision must be conducted using a random sampling of 
477.32 	representative child welfare cases stratified for certain case related factors, including but 
477.33 	not limited to case type, maltreatment type, if the case involves out-of-home placement, 
477.34 	and other demographic variables. In conducting the reviews, unit staff may use court records 
478.1 	and documents, information from the social services information system, and other available 
478.2 	case file information to complete the case reviews.
478.3 	(c) The frequency of the reviews and the number of cases, child welfare outcomes, and 
478.4 	selected counties reviewed shall be determined by the unit in consultation with the African 
478.5 	American Child and Family Well-Being Advisory Council, with consideration given to the 
478.6 	availability of unit resources needed to conduct the reviews.
478.7 	(d) The unit must monitor all case reviews and use the collective case review information 
478.8 	and data to generate summary case review reports, ensure compliance with the Minnesota 
478.9 	African American Family Preservation and Child Welfare Disproportionality Act, and 
478.10 	identify trends or patterns in child welfare outcomes for African American children.
478.11 	(e) The unit must review information from members of the public received through the 
478.12 	compliance and feedback portal, including policy and practice concerns related to individual 
478.13 	child welfare cases. After assessing a case concern, the unit may determine if further 
478.14 	necessary action should be taken, which may include coordinating case remediation with 
478.15 	other relevant child welfare agencies in accordance with data privacy laws, including the 
478.16 	African American Child and Family Well-Being Advisory Council, and offering case 
478.17 	consultation and technical assistance to the responsible local social services agency as 
478.18 	needed or requested by the agency.
478.19 		Subd. 3.Reports. (a) The African American Child and Family Well-Being Unit must 
478.20 	provide regular updates on unit activities, including summary reports of case reviews, to 
478.21 	the African American Child and Family Well-Being Advisory Council, and must publish 
478.22 	an annual census of African American children in out-of-home placements statewide. The 
478.23 	annual census must include data on the types of placements, age and sex of the children, 
478.24 	how long the children have been in out-of-home placements, and other relevant demographic 
478.25 	information.
478.26 	(b) The African American Child and Family Well-Being Unit shall gather summary data 
478.27 	about the practice and policy inquiries and individual case concerns received through the 
478.28 	compliance and feedback portal under subdivision 2, paragraph (e). The unit shall provide 
478.29 	regular reports of the nonidentifying compliance and feedback portal summary data to the 
478.30 	African American Child and Family Well-Being Advisory Council to identify child welfare 
478.31 	trends and patterns to assist with developing policy and practice recommendations to support 
478.32 	eliminating disparity and disproportionality for African American children.

479.1 	Sec. 16. Minnesota Statutes 2024, section 260C.001, subdivision 2, is amended to read:
479.2 		Subd. 2.Juvenile protection proceedings. (a) The paramount consideration in all 
479.3 	juvenile protection proceedings is the health, safety, and best interests of the child. In 
479.4 	proceedings involving an American Indian child, as defined in section 260.755, subdivision 
479.5 	8, the best interests of the child must be determined consistent with sections 260.751 to 
479.6 	260.835 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 
479.7 	1923.
479.8 	(b) The purpose of the laws relating to juvenile protection proceedings is:
479.9 	(1) to secure for each child under the jurisdiction of the court, the care and guidance, 
479.10 	preferably in the child's own home, as will best serve the spiritual, emotional, mental, and 
479.11 	physical welfare of the child;
479.12 	(2) to provide judicial procedures that protect the welfare of the child;
479.13 	(3) to preserve and strengthen the child's family ties whenever possible and in the child's 
479.14 	best interests, removing the child from the custody of parents only when the child's welfare 
479.15 	or safety cannot be adequately safeguarded without removal;
479.16 	(4) to ensure that when removal from the child's own family is necessary and in the 
479.17 	child's best interests, the responsible social services agency has legal responsibility for the 
479.18 	child removal either:
479.19 	(i) pursuant to a voluntary placement agreement between the child's parent or guardian 
479.20 	or the child, when the child is over age 18, and the responsible social services agency; or
479.21 	(ii) by court order pursuant to section 260C.151, subdivision 6; 260C.178; 260C.201; 
479.22 	260C.325; or 260C.515;
479.23 	(5) to ensure that, when placement is pursuant to court order, the court order removing 
479.24 	the child or continuing the child in foster care contains an individualized determination that 
479.25 	placement is in the best interests of the child that coincides with the actual removal of the 
479.26 	child;
479.27 	(6) to ensure that when the child is removed, the child's care and discipline is, as nearly 
479.28 	as possible, equivalent to that which should have been given by the parents and is either in:
479.29 	(i) the home of a noncustodial parent pursuant to section 260C.178 or 260C.201, 
479.30 	subdivision 1, paragraph (a), clause (1);
479.31 	(ii) the home of a relative pursuant to emergency placement by the responsible social 
479.32 	services agency under chapter 245A; or
480.1 	(iii) foster care licensed under chapter 245A; and
480.2 	(7) to ensure appropriate permanency planning for children in foster care including:
480.3 	(i) unless reunification is not required under section 260.012, developing a permanency 
480.4 	plan for the child that includes a primary plan for reunification with the child's parent or 
480.5 	guardian and a secondary plan for an alternative, legally permanent home for the child in 
480.6 	the event reunification cannot be achieved in a timely manner;
480.7 	(ii) identifying, locating, and assessing both parents of the child as soon as possible and 
480.8 	offering reunification services to both parents of the child as required under sections 260.012
480.9 	and 260C.219;
480.10 	(iii) inquiring about the child's heritage, including the child's Tribal lineage pursuant to 
480.11 	section 260.761, and the child's race, culture, and ethnicity pursuant to section 260.63, 
480.12 	subdivision 10;
480.13 	(iii) (iv) identifying, locating, and notifying relatives of both parents of the child according 
480.14 	to section 260C.221;
480.15 	(iv) (v) making a placement with a family that will commit to being the legally permanent 
480.16 	home for the child in the event reunification cannot occur at the earliest possible time while 
480.17 	at the same time actively supporting the reunification plan; and
480.18 	(v) (vi) returning the child home with supports and services, as soon as return is safe for 
480.19 	the child, or when safe return cannot be timely achieved, moving to finalize another legally 
480.20 	permanent home for the child.

480.21 	Sec. 17. Minnesota Statutes 2024, section 260C.007, subdivision 19, is amended to read:
480.22 		Subd. 19.Habitual truant. (a) "Habitual truant" means a child under the age of 17 years 
480.23 	who is absent from attendance at school without lawful excuse for seven school days per 
480.24 	school year if the child is in elementary school or for one or more class periods on seven 
480.25 	school days per school year if the child is in middle school, junior high school, or high 
480.26 	school or a child who is 17 years of age who is absent from attendance at school without 
480.27 	lawful excuse for one or more class periods on seven school days per school year and who 
480.28 	has not lawfully withdrawn from school under section 120A.22, subdivision 8.
480.29 	(b) For the purposes of educational neglect under section 260C.163, subdivision 11, 
480.30 	habitual truant includes a child under 12 years of age who has been absent from school for 
480.31 	seven school days without lawful excuse where the presumption of educational neglect is 
480.32 	rebutted based on a showing by clear and convincing evidence that the child's absence is 
481.1 	not due to the failure of the child's parent, guardian, or custodian to comply with compulsory 
481.2 	instruction laws.

481.3 	Sec. 18. Minnesota Statutes 2024, section 260C.150, subdivision 3, is amended to read:
481.4 		Subd. 3.Identifying parents of child; diligent efforts; data. (a) The responsible social 
481.5 	services agency shall make diligent efforts to inquire about the child's heritage, including 
481.6 	the child's Tribal lineage pursuant to section 260.761 and the child's race, culture, and 
481.7 	ethnicity pursuant to section 260.63, subdivision 10, and to identify and locate both parents 
481.8 	of any child who is the subject of proceedings under this chapter. Diligent efforts include:
481.9 	(1) asking the custodial or known parent to identify any nonresident parent of the child 
481.10 	and provide information that can be used to verify the nonresident parent's identity including 
481.11 	the dates and locations of marriages and divorces; dates and locations of any legal 
481.12 	proceedings regarding paternity; date and place of the child's birth; nonresident parent's full 
481.13 	legal name; nonresident parent's date of birth, or if the nonresident parent's date of birth is 
481.14 	unknown, an approximate age; the nonresident parent's Social Security number; the 
481.15 	nonresident parent's whereabouts including last known whereabouts; and the whereabouts 
481.16 	of relatives of the nonresident parent. For purposes of this subdivision, "nonresident parent" 
481.17 	means a parent who does not reside in the same household as the child or did not reside in 
481.18 	the same household as the child at the time the child was removed when the child is in foster 
481.19 	care;
481.20 	(2) obtaining information that will identify and locate the nonresident parent from the 
481.21 	county and state of Minnesota child support enforcement information system;
481.22 	(3) requesting a search of the Minnesota Fathers' Adoption Registry 30 days after the 
481.23 	child's birth; and
481.24 	(4) using any other reasonable means to identify and locate the nonresident parent.
481.25 	(b) The agency may disclose data which is otherwise private under section 13.46 or 
481.26 	chapter 260E in order to carry out its duties under this subdivision.
481.27 	(c) Upon the filing of a petition alleging the child to be in need of protection or services, 
481.28 	the responsible social services agency may contact a putative father who registered with 
481.29 	the Minnesota Fathers' Adoption Registry more than 30 days after the child's birth. The 
481.30 	social service agency may consider a putative father for the day-to-day care of the child 
481.31 	under section 260C.219 if the putative father cooperates with genetic testing and there is a 
481.32 	positive test result under section 257.62, subdivision 5. Nothing in this paragraph:
482.1 	(1) relieves a putative father who registered with the Minnesota Fathers' Adoption 
482.2 	Registry more than 30 days after the child's birth of the duty to cooperate with paternity 
482.3 	establishment proceedings under section 260C.219;
482.4 	(2) gives a putative father who registered with the Minnesota Fathers' Adoption Registry 
482.5 	more than 30 days after the child's birth the right to notice under section 260C.151 unless 
482.6 	the putative father is entitled to notice under sections 259.24 and 259.49, subdivision 1, 
482.7 	paragraph (a) or (b), clauses (1) to (7); or
482.8 	(3) establishes a right to assert an interest in the child in a termination of parental rights 
482.9 	proceeding contrary to section 259.52, subdivision 6, unless the putative father is entitled 
482.10 	to notice under sections 259.24 and 259.49, subdivision 1, paragraph (a) or (b), clauses (1) 
482.11 	to (7).

482.12 	Sec. 19. Minnesota Statutes 2024, section 260C.202, subdivision 2, is amended to read:
482.13 		Subd. 2.Court review for a child placed in foster care. (a) If the court orders a child 
482.14 	placed in foster care, the court shall review the out-of-home placement plan and the child's 
482.15 	placement at least every 90 days as required in juvenile court rules to determine whether 
482.16 	continued out-of-home placement is necessary and appropriate or whether the child should 
482.17 	be returned home.
482.18 	(b) This review is not required if the court has returned the child home, ordered the child 
482.19 	permanently placed away from the parent under sections 260C.503 to 260C.521, or 
482.20 	terminated rights under section 260C.301. Court review for a child permanently placed 
482.21 	away from a parent, including where the child is under guardianship of the commissioner, 
482.22 	is governed by section 260C.607.
482.23 	(c) When a child is placed in a qualified residential treatment program setting as defined 
482.24 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
482.25 	evidence to the court as specified in section 260C.712.
482.26 	(d) No later than three months after the child's placement in foster care, the court shall 
482.27 	review agency efforts to search for and notify relatives pursuant to section 260C.221, and 
482.28 	order that the agency's efforts begin immediately, or continue, if the agency has failed to 
482.29 	perform, or has not adequately performed, the duties under that section. The court must 
482.30 	order the agency to continue to appropriately engage relatives who responded to the notice 
482.31 	under section 260C.221 in placement and case planning decisions and to consider relatives 
482.32 	for foster care placement consistent with section 260C.221. Notwithstanding a court's finding 
482.33 	that the agency has made reasonable efforts to search for and notify relatives under section 
483.1 	260C.221, the court may order the agency to continue making reasonable efforts to search 
483.2 	for, notify, engage, and consider relatives who came to the agency's attention after sending 
483.3 	the initial notice under section 260C.221.
483.4 	(e) The court shall review the out-of-home placement plan and may modify the plan as 
483.5 	provided under section 260C.201, subdivisions 6 and 7.
483.6 	(f) When the court transfers the custody of a child to a responsible social services agency 
483.7 	resulting in foster care or protective supervision with a noncustodial parent under subdivision 
483.8 	1, the court shall notify the parents of the provisions of sections 260C.204 and 260C.503 
483.9 	to 260C.521, as required under juvenile court rules.
483.10 	(g) When a child remains in or returns to foster care pursuant to section 260C.451 and 
483.11 	the court has jurisdiction pursuant to section 260C.193, subdivision 6, paragraph (c), the 
483.12 	court shall at least annually conduct the review required under section 260C.203.

483.13 	Sec. 20. Minnesota Statutes 2024, section 260C.202, is amended by adding a subdivision 
483.14 	to read:
483.15 		Subd. 4.Court reviews for a child over age 18 in foster care. When a child remains 
483.16 	in or returns to foster care pursuant to section 260C.451, and the court has jurisdiction 
483.17 	pursuant to section 260C.193, subdivision 6, paragraph (c), the court must at least annually 
483.18 	conduct the review required under section 260C.203.

483.19 	Sec. 21. Minnesota Statutes 2024, section 260C.204, is amended to read:
483.20 	260C.204 PERMANENCY PROGRESS REVIEW FOR CHILDREN IN FOSTER 
483.21 	CARE FOR SIX MONTHS.
483.22 	(a) When a child continues in placement out of the home of the parent or guardian from 
483.23 	whom the child was removed, no later than six months after the child's placement the court 
483.24 	shall conduct a permanency progress hearing to review:
483.25 	(1) the progress of the case, the parent's progress on the case plan or out-of-home 
483.26 	placement plan, whichever is applicable;
483.27 	(2) the agency's reasonable, or in the case of an Indian child, active efforts for 
483.28 	reunification and its provision of services;
483.29 	(3) the agency's reasonable efforts to finalize the permanent plan for the child under 
483.30 	section 260.012, paragraph (e), and to make a placement as required under section 260C.212, 
483.31 	subdivision 2, in a home that will commit to being the legally permanent family for the 
484.1 	child in the event the child cannot return home according to the timelines in this section; 
484.2 	and
484.3 	(4) in the case of an Indian child, active efforts to prevent the breakup of the Indian 
484.4 	family and to make a placement according to the placement preferences under United States 
484.5 	Code, title 25, chapter 21, section 1915.
484.6 	(b) When a child is placed in a qualified residential treatment program setting as defined 
484.7 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
484.8 	evidence to the court as specified in section 260C.712.
484.9 	(c) The court shall ensure that notice of the hearing is sent to any relative who:
484.10 	(1) responded to the agency's notice provided under section 260C.221, indicating an 
484.11 	interest in participating in planning for the child or being a permanency resource for the 
484.12 	child and who has kept the court apprised of the relative's address; or
484.13 	(2) asked to be notified of court proceedings regarding the child as is permitted in section 
484.14 	260C.152, subdivision 5.
484.15 	(d)(1) If the parent or guardian has maintained contact with the child and is complying 
484.16 	with the court-ordered out-of-home placement plan, and if the child would benefit from 
484.17 	reunification with the parent, the court may either:
484.18 	(i) return the child home, if the conditions that led to the out-of-home placement have 
484.19 	been sufficiently mitigated that it is safe and in the child's best interests to return home; or
484.20 	(ii) continue the matter up to a total of six additional months. If the child has not returned 
484.21 	home by the end of the additional six months, the court must conduct a hearing according 
484.22 	to sections 260C.503 to 260C.521.
484.23 	(2) If the court determines that the parent or guardian is not complying, is not making 
484.24 	progress with or engaging with services in the out-of-home placement plan, or is not 
484.25 	maintaining regular contact with the child as outlined in the visitation plan required as part 
484.26 	of the out-of-home placement plan under section 260C.212, the court may order the 
484.27 	responsible social services agency:
484.28 	(i) to develop a plan for legally permanent placement of the child away from the parent;
484.29 	(ii) to consider, identify, recruit, and support one or more permanency resources from 
484.30 	the child's relatives and foster parent, consistent with clause (3) and section 260C.212, 
484.31 	subdivision 2, paragraph (a), to be the legally permanent home in the event the child cannot 
484.32 	be returned to the parent. Any relative or the child's foster parent may ask the court to order 
485.1 	the agency to consider them for permanent placement of the child in the event the child 
485.2 	cannot be returned to the parent. A relative or foster parent who wants to be considered 
485.3 	under this item shall cooperate with the background study required under section 245C.08, 
485.4 	if the individual has not already done so, and with the home study process required under 
485.5 	chapter 142B for providing child foster care and for adoption under section 259.41. The 
485.6 	home study referred to in this item shall be a single-home study in the form required by the 
485.7 	commissioner of children, youth, and families or similar study required by the individual's 
485.8 	state of residence when the subject of the study is not a resident of Minnesota. The court 
485.9 	may order the responsible social services agency to make a referral under the Interstate 
485.10 	Compact on the Placement of Children when necessary to obtain a home study for an 
485.11 	individual who wants to be considered for transfer of permanent legal and physical custody 
485.12 	or adoption of the child; and
485.13 	(iii) to file a petition to support an order for the legally permanent placement plan.
485.14 	(3) Consistent with section 260C.223, subdivision 2, paragraph (b), the responsible social 
485.15 	services agency must not define a foster family as the permanent home for a child until:
485.16 	(i) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
485.17 	are satisfied;
485.18 	(ii) inquiry about the child's heritage, including the child's race, culture, and ethnicity 
485.19 	pursuant to section 260.63, subdivision 10, has been completed; and
485.20 	(iii) the court has determined that reasonable or active efforts toward completing the 
485.21 	relative search requirements in section 260C.221 have been made.
485.22 	(e) Following the review under this section:
485.23 	(1) if the court has either returned the child home or continued the matter up to a total 
485.24 	of six additional months, the agency shall continue to provide services to support the child's 
485.25 	return home or to make reasonable efforts to achieve reunification of the child and the parent 
485.26 	as ordered by the court under an approved case plan;
485.27 	(2) if the court orders the agency to develop a plan for the transfer of permanent legal 
485.28 	and physical custody of the child to a relative, a petition supporting the plan shall be filed 
485.29 	in juvenile court within 30 days of the hearing required under this section and a trial on the 
485.30 	petition held within 60 days of the filing of the pleadings; or
485.31 	(3) if the court orders the agency to file a termination of parental rights, unless the county 
485.32 	attorney can show cause why a termination of parental rights petition should not be filed, 
485.33 	a petition for termination of parental rights shall be filed in juvenile court within 30 days 
486.1 	of the hearing required under this section and a trial on the petition held within 60 days of 
486.2 	the filing of the petition.

486.3 	Sec. 22. Minnesota Statutes 2024, section 260C.221, subdivision 2, is amended to read:
486.4 		Subd. 2.Relative notice requirements. (a) The agency may provide oral or written 
486.5 	notice to a child's relatives. In the child's case record, the agency must document providing 
486.6 	the required notice to each of the child's relatives. The responsible social services agency 
486.7 	must notify relatives:
486.8 	(1) of the need for a foster home for the child, the option to become a placement resource 
486.9 	for the child, the order of placement that the agency will consider under section 260C.212, 
486.10 	subdivision 2, paragraph (a), and the possibility of the need for a permanent placement for 
486.11 	the child;
486.12 	(2) of their responsibility to keep the responsible social services agency and the court 
486.13 	informed of their current address in order to receive notice in the event that a permanent 
486.14 	placement is sought for the child and to receive notice of the permanency progress review 
486.15 	hearing under section 260C.204. A relative who fails to provide a current address to the 
486.16 	responsible social services agency and the court forfeits the right to receive notice of the 
486.17 	possibility of permanent placement and of the permanency progress review hearing under 
486.18 	section 260C.204, until the relative provides a current address to the responsible social 
486.19 	services agency and the court. A decision by a relative not to be identified as a potential 
486.20 	permanent placement resource or participate in planning for the child shall not affect whether 
486.21 	the relative is considered for placement of, or as a permanency resource for, the child with 
486.22 	that relative at any time in the case, and shall not be the sole basis for the court to rule out 
486.23 	the relative as the child's placement or permanency resource;
486.24 	(3) that the relative may participate in the care and planning for the child, as specified 
486.25 	in subdivision 3, including that the opportunity for such participation may be lost by failing 
486.26 	to respond to the notice sent under this subdivision;
486.27 	(4) of the family foster care licensing and adoption home study requirements, including:
486.28 	(i) how to complete an application and;
486.29 	(ii) how to request a variance from licensing standards that do not present a safety or 
486.30 	health risk to the child in the home under section 142B.10and;
486.31 	(iii) supports that are available for relatives and children who reside in a family foster 
486.32 	home, including how to access respite care, strategies for leveraging natural supports for 
487.1 	the child and family, and ways to include resource or substitute caregivers in the child's 
487.2 	case plan; and
487.3 	(iv) the relative's choice between county or private agency and services provided by that 
487.4 	agency under section 142B.30, depending on funding available;
487.5 	(5) of the relatives' right to ask to be notified of any court proceedings regarding the 
487.6 	child, to attend the hearings, and of a relative's right to be heard by the court as required 
487.7 	under section 260C.152, subdivision 5;
487.8 	(6) that regardless of the relative's response to the notice sent under this subdivision, the 
487.9 	agency is required to establish permanency for a child, including planning for alternative 
487.10 	permanency options if the agency's reunification efforts fail or are not required; and
487.11 	(7) that by responding to the notice, a relative may receive information about participating 
487.12 	in a child's family and permanency team if the child is placed in a qualified residential 
487.13 	treatment program as defined in section 260C.007, subdivision 26d; and
487.14 	(8) information advising a relative on access to legal services and support.
487.15 	(b) The responsible social services agency shall send the notice required under paragraph 
487.16 	(a) to relatives who become known to the responsible social services agency, except for 
487.17 	relatives that the agency does not contact due to safety reasons under subdivision 5, paragraph 
487.18 	(b). The responsible social services agency shall continue to send notice to relatives 
487.19 	notwithstanding a court's finding that the agency has made reasonable efforts to conduct a 
487.20 	relative search.
487.21 	(c) The responsible social services agency is not required to send the notice under 
487.22 	paragraph (a) to a relative who becomes known to the agency after an adoption placement 
487.23 	agreement has been fully executed under section 260C.613, subdivision 1. If the relative 
487.24 	wishes to be considered for adoptive placement of the child, the agency shall inform the 
487.25 	relative of the relative's ability to file a motion for an order for adoptive placement under 
487.26 	section 260C.607, subdivision 6.

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

487.28 	Sec. 23. Minnesota Statutes 2024, section 260C.223, subdivision 1, is amended to read:
487.29 		Subdivision 1.Program; goals. (a) The commissioner of children, youth, and families 
487.30 	shall establish a program for concurrent permanency planning for child protection services.
487.31 	(b) Concurrent permanency planning involves a planning process for children who are 
487.32 	placed out of the home of their parents pursuant to a court order, or who have been voluntarily 
488.1 	placed out of the home by the parents for 60 days or more and who are not developmentally 
488.2 	disabled or emotionally disabled under section 260C.212, subdivision 9. The responsible 
488.3 	social services agency shall develop an alternative permanency plan while making reasonable 
488.4 	efforts for reunification of the child with the family, if required by section 260.012. The 
488.5 	goals of concurrent permanency planning are to:
488.6 	(1) achieve early permanency for children;
488.7 	(2) decrease children's length of stay in foster care and reduce the number of moves 
488.8 	children experience in foster care; and
488.9 	(3) develop a group of families establish a foster parent for a child who will work towards 
488.10 	reunification and also serve as a permanent families family for children.

488.11 	Sec. 24. Minnesota Statutes 2024, section 260C.223, subdivision 2, is amended to read:
488.12 		Subd. 2.Development of guidelines and protocols. (a) The commissioner shall establish 
488.13 	guidelines and protocols for social services agencies involved in concurrent permanency 
488.14 	planning, including criteria for conducting concurrent permanency planning based on relevant 
488.15 	factors such as:
488.16 	(1) age of the child and duration of out-of-home placement;
488.17 	(2) prognosis for successful reunification with parents;
488.18 	(3) availability of relatives and other concerned individuals to provide support or a 
488.19 	permanent placement for the child; and
488.20 	(4) special needs of the child and other factors affecting the child's best interests.
488.21 	(b) In developing the guidelines and protocols, the commissioner shall consult with 
488.22 	interest groups within the child protection system, including child protection workers, child 
488.23 	protection advocates, county attorneys, law enforcement, community service organizations, 
488.24 	the councils of color, and the ombudsperson for families.
488.25 	(c) The responsible social services agency must not make a foster family the permanent 
488.26 	home for a child until:
488.27 	(1) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
488.28 	are satisfied;
488.29 	(2) inquiry about the child's heritage, including the child's race, culture, and ethnicity 
488.30 	pursuant to section 260.63, subdivision 10, has been completed; and
489.1 	(3) the court has determined that reasonable or active efforts toward completing the 
489.2 	relative search requirements in section 260C.221 have been made.

489.3 	Sec. 25. Minnesota Statutes 2024, section 260C.331, subdivision 1, is amended to read:
489.4 		Subdivision 1.Care, examination, or treatment. (a) Except where parental rights are 
489.5 	terminated, the following costs are a charge upon the welfare funds of the county in which 
489.6 	proceedings are held upon certification of the judge of juvenile court:
489.7 	(1) whenever legal custody of a child is transferred by the court to a responsible social 
489.8 	services agency,;
489.9 	(2) whenever legal custody is transferred to a person other than the responsible social 
489.10 	services agency, but under the supervision of the responsible social services agency,; or
489.11 	(3) whenever a child is given physical or mental examinations or treatment under order 
489.12 	of the court, and no provision is otherwise made by law for payment for the care, 
489.13 	examination, or treatment of the child, these costs are a charge upon the welfare funds of 
489.14 	the county in which proceedings are held upon certification of the judge of juvenile court.
489.15 	(b) The court may order, and the responsible social services agency may require, the 
489.16 	parents or custodian of a child, while the child is under the age of 18, to use income and 
489.17 	resources attributable to the child for the period of care, examination, or treatment, except 
489.18 	for clothing and personal needs allowance as provided in section 256B.35, to reimburse the 
489.19 	county for the cost of care, examination, or treatment. Income and resources attributable to 
489.20 	the child include, but are not limited to, Social Security benefits, Supplemental Security 
489.21 	Income (SSI), veterans benefits, railroad retirement benefits, and child support for the child. 
489.22 	When the child is over the age of 18, and continues to receive care, examination, or treatment, 
489.23 	the court may order, and the responsible social services agency may require, reimbursement 
489.24 	from the child for the cost of care, examination, or treatment from the income and resources 
489.25 	attributable to the child less the clothing and personal needs allowance. Income does not 
489.26 	include earnings from a child over the age of 18 who is working as part of a plan under 
489.27 	section 260C.212, subdivision 1, paragraph (c), clause (12), to transition from foster care, 
489.28 	or the income and resources that are needed to complete the requirements listed in section 
489.29 	260C.203. The responsible social services agency shall determine whether requiring 
489.30 	reimbursement, either through child support or parental fees, for the cost of care, examination, 
489.31 	or treatment from the parents or custodian of a child is in the child's best interests. In 
489.32 	determining whether to require reimbursement, the responsible social services agency shall 
489.33 	consider:
490.1 	(1) whether requiring reimbursement would compromise the parent's ability to meet the 
490.2 	requirements of the reunification plan;
490.3 	(2) whether requiring reimbursement would compromise the parent's ability to meet the 
490.4 	child's needs after reunification; and
490.5 	(3) whether redirecting existing child support payments or changing the representative 
490.6 	payee of social security federal benefits to the responsible social services agency would 
490.7 	limit the parent's ability to maintain financial stability for the child.
490.8 	(c) If the income and resources attributable to the child are not enough to reimburse the 
490.9 	county for the full cost of the care, examination, or treatment, the court may inquire into 
490.10 	the ability of the parents to reimburse the county for the cost of care, examination, or 
490.11 	treatment and, after giving the parents a reasonable opportunity to be heard, the court may 
490.12 	order, and the responsible social services agency may require, the parents to contribute to 
490.13 	the cost of care, examination, or treatment of the child. When determining the amount to 
490.14 	be contributed by the parents, the court shall use a fee schedule based upon ability to pay 
490.15 	that is established by the responsible social services agency and approved by the 
490.16 	commissioner of children, youth, and families. The income of a stepparent who has not 
490.17 	adopted a child shall be excluded in calculating the parental contribution under this section. 
490.18 	In determining whether to require reimbursement, the responsible social services agency 
490.19 	shall consider:
490.20 	(1) whether requiring reimbursement would compromise the parent's ability to meet the 
490.21 	requirements of the reunification plan;
490.22 	(2) whether requiring reimbursement would compromise the parent's ability to meet the 
490.23 	child's needs after reunification; and
490.24 	(3) whether requiring reimbursement would compromise the parent's ability to meet the 
490.25 	needs of the family.
490.26 	(d) If the responsible social services agency determines that reimbursement is in the 
490.27 	child's best interests, the court shall order the amount of reimbursement attributable to the 
490.28 	parents or custodian, or attributable to the child, or attributable to both sources, withheld 
490.29 	under chapter 518A from the income of the parents or the custodian of the child. A parent 
490.30 	or custodian who fails to pay without good reason may be proceeded against for contempt, 
490.31 	or the court may inform the county attorney, who shall proceed to collect the unpaid sums, 
490.32 	or both procedures may be used.
491.1 	(e) If the court orders a physical or mental examination for a child, the examination is 
491.2 	a medically necessary service for purposes of determining whether the service is covered 
491.3 	by a health insurance policy, health maintenance contract, or other health coverage plan. 
491.4 	Court-ordered treatment shall be subject to policy, contract, or plan requirements for medical 
491.5 	necessity. Nothing in this paragraph changes or eliminates benefit limits, conditions of 
491.6 	coverage, co-payments or deductibles, provider restrictions, or other requirements in the 
491.7 	policy, contract, or plan that relate to coverage of other medically necessary services.
491.8 	(f) Notwithstanding paragraph (b), (c), or (d), a parent, custodian, or guardian of the 
491.9 	child is not required to use income and resources attributable to the child to reimburse the 
491.10 	county for costs of care and is not required to contribute to the cost of care of the child 
491.11 	during any period of time when the child is returned to the home of that parent, custodian, 
491.12 	or guardian pursuant to a trial home visit under section 260C.201, subdivision 1, paragraph 
491.13 	(a).
491.14 	(g) The responsible social services agency may only apply to be the representative payee 
491.15 	for the child's federal benefits under paragraph (b) when the court has ordered the agency 
491.16 	to develop a plan for the transfer of permanent legal and physical custody of the child to a 
491.17 	relative or to file a termination of parental rights petition under section 260C.204, paragraph 
491.18 	(e), clause (2) or (3); ordered the child permanently placed away from the parent under 
491.19 	sections 260C.503 to 260C.521; or approved the continued voluntary foster care placement 
491.20 	for the child under section 260D.07.

491.21 	Sec. 26. Minnesota Statutes 2024, section 260C.452, subdivision 4, is amended to read:
491.22 		Subd. 4.Administrative or court review of placements. (a) When the youth is 14 years 
491.23 	of age or older, the court, in consultation with the youth, shall review the youth's independent 
491.24 	living plan according to section 260C.203, paragraph (d).
491.25 	(b) The responsible social services agency shall file a copy of the notification of foster 
491.26 	care benefits for a youth who is 18 years of age or older according to section 260C.451, 
491.27 	subdivision 1, with the court. If the responsible social services agency does not file the 
491.28 	notice by the time the youth is 17-1/2 years of age, the court shall require the responsible 
491.29 	social services agency to file the notice.
491.30 	(c) When a youth is 18 years of age or older, the court shall ensure that the responsible 
491.31 	social services agency assists the youth in obtaining the following documents before the 
491.32 	youth leaves foster care: a Social Security card; an official or certified copy of the youth's 
491.33 	birth certificate; a state identification card or driver's license, Tribal enrollment identification 
491.34 	card, green permanent resident card, or school visa; health insurance information; the youth's 
492.1 	school, medical, and dental records; a contact list of the youth's medical, dental, and mental 
492.2 	health providers; and contact information for the youth's siblings, if the siblings are in foster 
492.3 	care.
492.4 	(d) For a youth who will be discharged from foster care at 18 years of age or older 
492.5 	because the youth is not eligible for extended foster care benefits or chooses to leave foster 
492.6 	care, the responsible social services agency must develop a personalized transition plan as 
492.7 	directed by the youth during the 180-day period immediately prior to the expected date of 
492.8 	discharge. The transition plan must be as detailed as the youth elects and include specific 
492.9 	options, including but not limited to:
492.10 	(1) affordable housing with necessary supports that does not include a homeless shelter;
492.11 	(2) health insurance, including eligibility for medical assistance as defined in section 
492.12 	256B.055, subdivision 17;
492.13 	(3) education, including application to the Education and Training Voucher Program;
492.14 	(4) local opportunities for mentors and continuing support services;
492.15 	(5) workforce supports and employment services;
492.16 	(6) a copy of the youth's consumer credit report as defined in section 13C.001 and 
492.17 	assistance in interpreting and resolving any inaccuracies in the report, at no cost to the youth;
492.18 	(7) information on executing a health care directive under chapter 145C and on the 
492.19 	importance of designating another individual to make health care decisions on behalf of the 
492.20 	youth if the youth becomes unable to participate in decisions;
492.21 	(8) appropriate contact information through 21 years of age if the youth needs information 
492.22 	or help dealing with a crisis situation; and
492.23 	(9) official documentation that the youth was previously in foster care.

492.24 	Sec. 27. Minnesota Statutes 2024, section 260E.03, subdivision 15, is amended to read:
492.25 		Subd. 15.Neglect. (a) "Neglect" means the commission or omission of any of the acts 
492.26 	specified under clauses (1) to (8), other than by accidental means:
492.27 	(1) failure by a person responsible for a child's care to supply a child with necessary 
492.28 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
492.29 	mental health when reasonably able to do so;
492.30 	(2) failure to protect a child from conditions or actions that seriously endanger the child's 
492.31 	physical or mental health when reasonably able to do so, including a growth delay, which 
493.1 	may be referred to as a failure to thrive, that has been diagnosed by a physician and is due 
493.2 	to parental neglect;
493.3 	(3) failure to provide for necessary supervision or child care arrangements appropriate 
493.4 	for a child after considering factors as the child's age, mental ability, physical condition, 
493.5 	length of absence, or environment, when the child is unable to care for the child's own basic 
493.6 	needs or safety, or the basic needs or safety of another child in their care;
493.7 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
493.8 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
493.9 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 
493.10 	5;
493.11 	(5) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 
493.12 	2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in 
493.13 	the child at birth, results of a toxicology test performed on the mother at delivery or the 
493.14 	child at birth, medical effects or developmental delays during the child's first year of life 
493.15 	that medically indicate prenatal exposure to a controlled substance, or the presence of a 
493.16 	fetal alcohol spectrum disorder;
493.17 	(6) medical neglect, as defined in section 260C.007, subdivision 6, clause (5);
493.18 	(7) chronic and severe use of alcohol or a controlled substance by a person responsible 
493.19 	for the child's care that adversely affects the child's basic needs and safety; or
493.20 	(8) emotional harm from a pattern of behavior that contributes to impaired emotional 
493.21 	functioning of the child which may be demonstrated by a substantial and observable effect 
493.22 	in the child's behavior, emotional response, or cognition that is not within the normal range 
493.23 	for the child's age and stage of development, with due regard to the child's culture.
493.24 	(b) Nothing in this chapter shall be construed to mean that a child is neglected solely 
493.25 	because the child's parent, guardian, or other person responsible for the child's care in good 
493.26 	faith selects and depends upon spiritual means or prayer for treatment or care of disease or 
493.27 	remedial care of the child in lieu of medical care.
493.28 	(c) This chapter does not impose upon persons not otherwise legally responsible for 
493.29 	providing a child with necessary food, clothing, shelter, education, or medical care a duty 
493.30 	to provide that care.
493.31 	(d) Nothing in this chapter shall be construed to mean that a child who has a mental, 
493.32 	physical, or emotional condition is neglected solely because the child remains in an 
493.33 	emergency department or hospital setting because services, including residential treatment, 
494.1 	that are deemed necessary by the child's medical or mental health care professional or county 
494.2 	case manager are not available to the child's parent, guardian, or other person responsible 
494.3 	for the child's care, and the child cannot be safely discharged to the child's family.

494.4 	Sec. 28. Minnesota Statutes 2024, section 260E.09, is amended to read:
494.5 	260E.09 REPORTING REQUIREMENTS.
494.6 	(a) An oral report shall be made immediately by telephone or otherwise. An oral report 
494.7 	made by a person required under section 260E.06, subdivision 1, to report shall be followed 
494.8 	within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate 
494.9 	police department, the county sheriff, the agency responsible for assessing or investigating 
494.10 	the report, or the local welfare agency.
494.11 	(b) Any report shall be of sufficient content to identify the child, any person believed 
494.12 	to be responsible for the maltreatment of the child if the person is known, the nature and 
494.13 	extent of the maltreatment, and the name and address of the reporter. The local welfare 
494.14 	agency or agency responsible for assessing or investigating the report shall accept a report 
494.15 	made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's 
494.16 	name or address as long as the report is otherwise sufficient under this paragraph. The local 
494.17 	welfare agency or agency responsible for assessing or investigating the report shall ask the 
494.18 	reporter if the reporter is aware of the child's heritage, including the child's Tribal lineage 
494.19 	pursuant to section 260.761 and the child's race, culture, and ethnicity pursuant to section 
494.20 	260.63, subdivision 10.
494.21 	(c) Notwithstanding paragraph (a), upon implementation of the provider licensing and 
494.22 	reporting hub, an individual who has an account with the provider licensing and reporting 
494.23 	hub and is required to report suspected maltreatment at a licensed program under section 
494.24 	260E.06, subdivision 1, may submit a written report in the hub in a manner prescribed by 
494.25 	the commissioner and is not required to make an oral report. A report submitted through 
494.26 	the provider licensing and reporting hub must be made immediately.

494.27 	Sec. 29. Minnesota Statutes 2024, section 260E.20, subdivision 1, is amended to read:
494.28 		Subdivision 1.General duties. (a) The local welfare agency shall offer services to 
494.29 	prevent future maltreatment, safeguarding and enhancing the welfare of the maltreated child, 
494.30 	and supporting and preserving family life whenever possible.
494.31 	(b) If the report alleges a violation of a criminal statute involving maltreatment or child 
494.32 	endangerment under section 609.378, the local law enforcement agency and local welfare 
495.1 	agency shall coordinate the planning and execution of their respective investigation and 
495.2 	assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews. 
495.3 	Each agency shall prepare a separate report of the results of the agency's investigation or 
495.4 	assessment.
495.5 	(c) In cases of alleged child maltreatment resulting in death, the local agency may rely 
495.6 	on the fact-finding efforts of a law enforcement investigation to make a determination of 
495.7 	whether or not maltreatment occurred.
495.8 	(d) When necessary, the local welfare agency shall seek authority to remove the child 
495.9 	from the custody of a parent, guardian, or adult with whom the child is living.
495.10 	(e) In performing any of these duties, the local welfare agency shall maintain an 
495.11 	appropriate record.
495.12 	(f) In conducting a family assessment, noncaregiver human trafficking assessment, or 
495.13 	investigation, the local welfare agency shall gather information on the existence of substance 
495.14 	abuse and domestic violence.
495.15 	(g) If the family assessment, noncaregiver human trafficking assessment, or investigation 
495.16 	indicates there is a potential for abuse of alcohol or other drugs by the parent, guardian, or 
495.17 	person responsible for the child's care, the local welfare agency must coordinate a 
495.18 	comprehensive assessment pursuant to section 245G.05.
495.19 	(h) The agency may use either a family assessment or investigation to determine whether 
495.20 	the child is safe when responding to a report resulting from birth match data under section 
495.21 	260E.03, subdivision 23, paragraph (c). If the child subject of birth match data is determined 
495.22 	to be safe, the agency shall consult with the county attorney to determine the appropriateness 
495.23 	of filing a petition alleging the child is in need of protection or services under section 
495.24 	260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is 
495.25 	determined not to be safe, the agency and the county attorney shall take appropriate action 
495.26 	as required under section 260C.503, subdivision 2.
495.27 	(i) When conducting any family assessment, noncaregiver human trafficking assessment, 
495.28 	or investigation, the agency shall ask the child, if age appropriate; parents; extended family; 
495.29 	and reporter about the child's heritage, including the child's Tribal lineage pursuant to section 
495.30 	260.761 and the child's race, culture, and ethnicity pursuant to section 260.63, subdivision 
495.31 	10.

496.1 	Sec. 30. Minnesota Statutes 2024, section 260E.24, subdivision 1, is amended to read:
496.2 		Subdivision 1.Timing. The local welfare agency shall conclude the family assessment, 
496.3 	the noncaregiver human trafficking assessment, or the investigation within 45 days of the 
496.4 	receipt of a report. The conclusion of the assessment or investigation may be extended to 
496.5 	permit the completion of a criminal investigation or the receipt of expert information 
496.6 	requested within 45 days of the receipt of the report.

496.7 	Sec. 31. Minnesota Statutes 2024, section 260E.24, subdivision 2, is amended to read:
496.8 		Subd. 2.Determination after family assessment or a noncaregiver human trafficking 
496.9 	assessment. After conducting a family assessment or a noncaregiver human trafficking 
496.10 	assessment, the local welfare agency shall determine whether child protective services are 
496.11 	needed to address the safety of the child and other family members and the risk of subsequent 
496.12 	maltreatment. The local welfare agency must document the information collected under 
496.13 	section 260E.20, subdivision 3, related to the completed family assessment or noncaregiver 
496.14 	human trafficking assessment in the child's or family's case notes.

496.15 	Sec. 32. [260E.291] REPORTING OF SCHOOL ATTENDANCE CONCERNS.
496.16 		Subdivision 1.Reports required. (a) A person mandated to report under this chapter 
496.17 	must immediately report to the local welfare agency, Tribal social services agency, or 
496.18 	designated partner if the person knows or has reason to believe that a child required to be 
496.19 	enrolled in school under section 120A.22 has at least seven unexcused absences in the 
496.20 	current school year and is at risk of educational neglect under section 260C.163, subdivision 
496.21 	11.
496.22 	(b) Any person may voluntarily report to the local welfare agency, Tribal social services 
496.23 	agency, or designated partner if the person knows or has reason to believe that a child 
496.24 	required to be enrolled in school under section 120A.22 has at least seven unexcused absences 
496.25 	in the current school year and is at risk of educational neglect under section 260C.163, 
496.26 	subdivision 11.
496.27 	(c) An oral report must be made immediately by telephone or otherwise. An oral report 
496.28 	made by a person required to report under paragraph (a) must be followed within 72 hours, 
496.29 	exclusive of weekends and holidays, by a report in writing to the local welfare agency. A 
496.30 	report must sufficiently identify the child and the child's parent or guardian, the actual or 
496.31 	estimated number of the child's unexcused absences in the current school year, the efforts 
496.32 	made by school officials to resolve attendance concerns with the family, and the name and 
496.33 	address of the reporter. A voluntary reporter under paragraph (b) may refuse to provide 
497.1 	their name or address if the report is otherwise sufficient, and such a report must be accepted 
497.2 	by the local welfare agency.
497.3 		Subd. 2.Local welfare agency. (a) The local welfare agency or partner designated to 
497.4 	provide child welfare services must provide a child welfare response for a report that alleges 
497.5 	a child enrolled in school has seven or more unexcused absences. When providing a child 
497.6 	welfare response under this paragraph, the local welfare agency or designated partner must 
497.7 	offer services to the child and the child's family to address school attendance concerns or 
497.8 	may partner with a county attorney's office, a community-based organization, or other 
497.9 	community partner to provide the services. The services must be culturally and linguistically 
497.10 	appropriate and tailored to the needs of the child and the child's family. This section is 
497.11 	subject to all requirements of the Minnesota Indian Family Preservation Act under sections 
497.12 	260.751 to 260.835, and the Minnesota African American Family Preservation and Child 
497.13 	Welfare Disproportionality Act under sections 260.61 to 260.693.
497.14 	(b) If the child's unexcused absences continue and the family has not engaged with 
497.15 	services under paragraph (a) after the local welfare agency, Tribal social services agency, 
497.16 	or partner designated to provide child welfare services has made multiple varied attempts 
497.17 	to engage the child's family, a report of educational neglect must be made regardless of the 
497.18 	number of unexcused absences the child has accrued. The local welfare agency must 
497.19 	determine the response path assignment pursuant to section 260E.17 and may proceed with 
497.20 	the process outlined in section 260C.141.

497.21 	Sec. 33. REVISOR INSTRUCTION.
 497.22 	The revisor of statutes shall change paragraphs to subdivisions, clauses to paragraphs, 
497.23 	and items to clauses in Minnesota Statutes, sections 260C.203 and 260C.204. The revisor 
497.24 	shall make any necessary grammatical changes or changes to sentence structure necessary 
497.25 	to preserve the meaning of the text as a result of the changes. The revisor of statutes must 
497.26 	correct any statutory cross-references consistent with the changes in this section.

497.27 	ARTICLE 19
497.28 	EARLY CARE AND LEARNING

497.29 	Section 1. Minnesota Statutes 2024, section 142A.76, subdivision 2, is amended to read:
497.30 		Subd. 2.Establishment. The Office of Restorative Practices is established within the 
497.31 	Department of Public Safety Children, Youth, and Families. The Office of Restorative 
497.32 	Practices shall have the powers and duties described in this section.

498.1 	Sec. 2. Minnesota Statutes 2024, section 142A.76, subdivision 3, is amended to read:
498.2 		Subd. 3.Director; other staff. (a) The commissioner of public safety children, youth, 
498.3 	and families shall appoint a director of the Office of Restorative Practices. The director 
498.4 	should have qualifications that include or are similar to the following:
498.5 	(1) experience in the many facets of restorative justice and practices such as peacemaking 
498.6 	circles, sentencing circles, community conferencing, community panels, and family group 
498.7 	decision making;
498.8 	(2) experience in victim-centered and trauma-informed practices;
498.9 	(3) knowledge of the range of social problems that bring children and families to points 
498.10 	of crisis such as poverty, racism, unemployment, and unequal opportunity;
498.11 	(4) knowledge of the many ways youth become involved in other systems such as truancy, 
498.12 	juvenile delinquency, and child protection; and
498.13 	(5) understanding of educational barriers.
498.14 	(b) The director shall hire additional staff to perform the duties of the Office of 
498.15 	Restorative Practices. The staff shall be in the classified service of the state and their 
498.16 	compensation shall be established pursuant to chapter 43A.

498.17 	Sec. 3. Minnesota Statutes 2024, section 142B.16, subdivision 2, is amended to read:
498.18 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
498.19 	believes that the contents of the commissioner's correction order are in error, the applicant 
498.20 	or license holder may ask the Department of Children, Youth, and Families to reconsider 
498.21 	the parts of the correction order that are alleged to be in error. The request for reconsideration 
498.22 	must be made in writing and must be postmarked and sent to the commissioner within 20 
498.23 	calendar days after receipt of the correction order by the applicant or license holder or 
498.24 	submitted in the provider licensing and reporting hub within 20 calendar days from the date 
498.25 	the commissioner issued the order through the hub, and:
498.26 	(1) specify the parts of the correction order that are alleged to be in error;
498.27 	(2) explain why they are in error; and
498.28 	(3) include documentation to support the allegation of error.
498.29 	(b) Upon implementation of the provider licensing and reporting hub, the provider must 
498.30 	use the hub to request reconsideration. A request for reconsideration does not stay any 
499.1 	provisions or requirements of the correction order. The commissioner's disposition of a 
499.2 	request for reconsideration is final and not subject to appeal under chapter 14.
499.3 	(b) (c) This paragraph applies only to licensed family child care providers. A licensed 
499.4 	family child care provider who requests reconsideration of a correction order under paragraph 
499.5 	(a) may also request, on a form and in the manner prescribed by the commissioner, that the 
499.6 	commissioner expedite the review if:
499.7 	(1) the provider is challenging a violation and provides a description of how complying 
499.8 	with the corrective action for that violation would require the substantial expenditure of 
499.9 	funds or a significant change to their program; and
499.10 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
499.11 	to ensure the health and safety of children in care pending the commissioner's review of the 
499.12 	correction order.
499.13 	(d) The commissioner must not publicly post the correction order for licensed child care 
499.14 	centers or licensed family child care providers on the department's website until:
499.15 	(1) after the 20-calendar-day period for requesting reconsideration; or
499.16 	(2) if the applicant or license holder requested reconsideration, after the commissioner's 
499.17 	disposition of a request for reconsideration is provided to the applicant or license holder.

499.18 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
499.19 	whichever is later. The commissioner of children, youth, and families must notify the revisor 
499.20 	of statutes when federal approval is obtained.

499.21 	Sec. 4. [142B.181] POSTING LICENSING ACTIONS ON DEPARTMENT 
499.22 	WEBSITE.
499.23 	(a) The commissioner must post a summary document for each licensing action issued 
499.24 	to a licensed child care center and family child care provider on the Licensing Information 
499.25 	Lookup public website maintained by the Department of Children, Youth, and Families. 
499.26 	The commissioner must not post any communication, including letters, from the 
499.27 	commissioner to the center or provider.
499.28 	(b) The commissioner must remove a summary document from the Licensing Information 
499.29 	Lookup public website within ten days of the length of time that the document is required 
499.30 	to be posted under Code of Federal Regulations, title 45, section 98.33.

500.1 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval, 
500.2 	whichever is later. The commissioner of children, youth, and families must notify the revisor 
500.3 	of statutes when federal approval is obtained.

500.4 	Sec. 5. Minnesota Statutes 2024, section 142D.31, subdivision 2, is amended to read:
500.5 		Subd. 2.Program components. (a) The nonprofit organization must use the grant for:
500.6 	(1) tuition scholarships up to $10,000 per year in amounts per year consistent with the 
500.7 	national TEACH early childhood program requirements for courses leading to the nationally 
500.8 	recognized child development associate credential or college-level courses leading to an 
500.9 	associate's degree or bachelor's degree in early childhood development and school-age care; 
500.10 	and
500.11 	(2) education incentives of a minimum of $250 to participants in the tuition scholarship 
500.12 	program if they complete a year of working in the early care and education field.
500.13 	(b) Applicants for the scholarship must be employed by a licensed or certified early 
500.14 	childhood or child care program and working directly with children, a licensed family child 
500.15 	care provider, employed by a public prekindergarten program, employed by a Head Start 
500.16 	program, or an employee in a school-age program exempt from licensing under section 
500.17 	142B.05, subdivision 2, paragraph (a), clause (8). Lower wage earners must be given priority 
500.18 	in awarding the tuition scholarships. Scholarship recipients must contribute at least ten 
500.19 	percent of the total scholarship and must be sponsored by their employers, who must also 
500.20 	contribute at least five percent of the total scholarship. Scholarship recipients who are 
500.21 	self-employed work in licensed family child care under Minnesota Rules, chapter 9502,
500.22 	must contribute 20 at least ten percent of the total scholarship and are not required to receive 
500.23 	employer sponsorship or employer match.

500.24 	Sec. 6. Minnesota Statutes 2024, section 142E.03, subdivision 3, is amended to read:
500.25 		Subd. 3.Redeterminations. (a) Notwithstanding Minnesota Rules, part 3400.0180, item 
500.26 	A, the county shall conduct a redetermination according to paragraphs (b) and (c).
500.27 	(b) The county shall use the redetermination form developed by the commissioner. The 
500.28 	county must verify the factors listed in subdivision 1, paragraph (a), as part of the 
500.29 	redetermination.
500.30 	(c) An applicant's eligibility must be redetermined no more frequently than every 12 
500.31 	months. The following criteria apply:
501.1 	(1) a family meets the eligibility redetermination requirements if a complete 
501.2 	redetermination form and all required verifications are received within 30 days after the 
501.3 	date the form was due;
501.4 	(2) if the 30th day after the date the form was due falls on a Saturday, Sunday, or holiday, 
501.5 	the 30-day time period is extended to include the next day that is not a Saturday, Sunday, 
501.6 	or holiday. Assistance shall be payable retroactively from the redetermination due date;
501.7 	(3) for a family where at least one parent is younger than 21 years of age, does not have 
501.8 	a high school degree or commissioner of education-selected high school equivalency 
501.9 	certification, and is a student in a school district or another similar program that provides 
501.10 	or arranges for child care, parenting, social services, career and employment supports, and 
501.11 	academic support to achieve high school graduation, the redetermination of eligibility may 
501.12 	be deferred beyond 12 months, to the end of the student's school year; and
501.13 	(4) starting May 25, 2026, if a new eligible child is added to the family and has care 
501.14 	authorized, the redetermination of eligibility must be extended 12 months from the eligible 
501.15 	child's arrival date; and
501.16 	(4) (5) a family and the family's providers must be notified that the family's 
501.17 	redetermination is due at least 45 days before the end of the family's 12-month eligibility 
501.18 	period.

501.19 	Sec. 7. Minnesota Statutes 2024, section 142E.11, subdivision 1, is amended to read:
501.20 		Subdivision 1.General authorization requirements. (a) When authorizing the amount 
501.21 	of child care, the county agency must consider the amount of time the parent reports on the 
501.22 	application or redetermination form that the child attends preschool, a Head Start program, 
501.23 	or school while the parent is participating in an authorized activity.
501.24 	(b) Care must be authorized and scheduled with a provider based on the applicant's or 
501.25 	participant's verified activity schedule when:
501.26 	(1) the family requests care from more than one provider per child;
501.27 	(2) the family requests care from a legal nonlicensed provider; or
501.28 	(3) an applicant or participant is employed by any child care center that is licensed by 
501.29 	the Department of Children, Youth, and Families or has been identified as a high-risk 
501.30 	Medicaid-enrolled provider.
501.31 	This paragraph expires March 2, 2026.
502.1 	(c) If the family remains eligible at redetermination, a new authorization with fewer 
502.2 	hours, the same hours, or increased hours may be determined.

502.3 	Sec. 8. Minnesota Statutes 2024, section 142E.11, subdivision 2, is amended to read:
502.4 		Subd. 2.Maintain steady child care authorizations. (a) Notwithstanding Minnesota 
502.5 	Rules, chapter 3400, the amount of child care authorized under section 142E.12 for 
502.6 	employment, education, or an MFIP employment plan shall continue at the same number 
502.7 	of hours or more hours until redetermination, including:
502.8 	(1) when the other parent moves in and is employed or has an education plan under 
502.9 	section 142E.12, subdivision 3, or has an MFIP employment plan; or
502.10 	(2) when the participant's work hours are reduced or a participant temporarily stops 
502.11 	working or attending an approved education program. Temporary changes include, but are 
502.12 	not limited to, a medical leave, seasonal employment fluctuations, or a school break between 
502.13 	semesters.
502.14 	(b) The county may increase the amount of child care authorized at any time if the 
502.15 	participant verifies the need for increased hours for authorized activities.
502.16 	(c) The county may reduce the amount of child care authorized if a parent requests a 
502.17 	reduction or because of a change in:
502.18 	(1) the child's school schedule;
502.19 	(2) the custody schedule; or
502.20 	(3) the provider's availability.
502.21 	(d) The amount of child care authorized for a family subject to subdivision 1, paragraph 
502.22 	(b), must change when the participant's activity schedule changes. Paragraph (a) does not 
502.23 	apply to a family subject to subdivision 1, paragraph (b). This paragraph expires March 2, 
502.24 	2026.
502.25 	(e) When a child reaches 13 years of age or a child with a disability reaches 15 years of 
502.26 	age, the amount of child care authorized shall continue at the same number of hours or more 
502.27 	hours until redetermination.

502.28 	Sec. 9. Minnesota Statutes 2024, section 142E.13, subdivision 2, is amended to read:
502.29 		Subd. 2.Extended eligibility and redetermination. (a) If the family received three 
502.30 	months of extended eligibility and redetermination is not due, to continue receiving child 
502.31 	care assistance the participant must be employed or have an education plan that meets the 
503.1 	requirements of section 142E.12, subdivision 3, or have an MFIP employment plan. 
503.2 	Notwithstanding Minnesota Rules, part 3400.0110, if child care assistance continues, the 
503.3 	amount of child care authorized shall continue at the same number or more hours until 
503.4 	redetermination, unless a condition in section 142E.11, subdivision 2, paragraph (c), applies. 
503.5 	A family subject to section 142E.11, subdivision 1, paragraph (b), shall have child care 
503.6 	authorized based on a verified activity schedule.
503.7 	(b) If the family's redetermination occurs before the end of the three-month extended 
503.8 	eligibility period to continue receiving child care assistance, the participant must verify that 
503.9 	the participant meets eligibility and activity requirements for child care assistance under 
503.10 	this chapter. Notwithstanding Minnesota Rules, part 3400.0010, if child care assistance 
503.11 	continues, the amount of child care authorized is based on section 142E.12. A family subject 
503.12 	to section 142E.11, subdivision 1, paragraph (b), shall have child care authorized based on 
503.13 	a verified activity schedule.

503.14 	EFFECTIVE DATE. This section is effective May 25, 2026.

503.15 	Sec. 10. Minnesota Statutes 2024, section 142E.15, subdivision 1, is amended to read:
503.16 		Subdivision 1.Fee schedule. All changes to parent fees must be implemented on the 
503.17 	first Monday of the service period following the effective date of the change.
503.18 	PARENT FEE SCHEDULE. The parent fee schedule is as follows, except as noted in 
503.19 	subdivision 2:

503.20
503.21
503.22	Income Range (as a percent of the state 
median income, except at the start of the first 
tier)
	Co-payment (as a percentage of adjusted 
gross income)
	
503.23
503.24	0-74.99% 0-99.99% of federal poverty 
guidelines
	$0/biweekly
	
503.25	75.00-99.99% of federal poverty guidelines
	$2/biweekly
	
503.26
503.27	100.00% of federal poverty 
guidelines-27.72% 27.99%
	2.61% 2.6%
	
503.28	27.73-29.04%
	2.61%
	
503.29	29.05-30.36%
	2.61%
	
503.30	30.37-31.68%
	2.61%
	
503.31	31.69-33.00%
	2.91%
	
503.32	33.01-34.32%
	2.91%
	
503.33	34.33-35.65%
	2.91%
	
503.34	35.66-36.96%
	2.91%
	
503.35	36.97-38.29%
	3.21%
	
503.36	38.30-39.61%
	3.21%
	
504.1	39.62-40.93%
	3.21%
	
504.2	40.94-42.25%
	3.84%
	
504.3	42.26-43.57%
	3.84%
	
504.4	43.58-44.89%
	4.46%
	
504.5	44.90-46.21%
	4.76%
	
504.6	46.22-47.53%
	5.05%
	
504.7	47.54-48.85%
	5.65%
	
504.8	48.86-50.17%
	5.95%
	
504.9	50.18-51.49%
	6.24%
	
504.10	51.50-52.81%
	6.84%
	
504.11	52.82-54.13%
	7.58%
	
504.12	54.14-55.45%
	8.33%
	
504.13	55.46-56.77%
	9.20%
	
504.14	56.78-58.09%
	10.07%
	
504.15	58.10-59.41%
	10.94%
	
504.16	59.42-60.73%
	11.55%
	
504.17	60.74-62.06%
	12.16%
	
504.18	62.07-63.38%
	12.77%
	
504.19	63.39-64.70%
	13.38%
	
504.20	64.71-67.00%
	14.00%
	
504.21	28.00-30.99%
	2.6%
	
504.22	31.00-33.99%
	2.6%
	
504.23	34.00-36.99%
	2.9%
	
504.24	37.00-39.99%
	3.2%
	
504.25	40.00-42.99%
	3.8%
	
504.26	43.00-45.99%
	4.4%
	
504.27	46.00-48.99%
	5.0%
	
504.28	49.00-51.99%
	5.6%
	
504.29	52.00-54.99%
	6.2%
	
504.30	55.00-57.99%
	6.8%
	
504.31	58.00-60.99%
	6.9%
	
504.32	61.00-63.99%
	6.9%
	
504.33	64.00-67.00%
	6.9%
	
504.34	Greater than 67.00%
	ineligible
	
504.35 	A family's biweekly co-payment fee is the fixed percentage established for the income 
504.36 	range multiplied by the highest lowest possible income within that income range.

504.37 	EFFECTIVE DATE. This section is effective October 13, 2025.

505.1 	Sec. 11. Minnesota Statutes 2024, section 142E.16, subdivision 3, is amended to read:
505.2 		Subd. 3.Training required. (a) Prior to initial authorization as required in subdivision 
505.3 	1, a legal nonlicensed family child care provider must complete first aid and CPR training 
505.4 	and provide the verification of first aid and CPR training to the commissioner. The training 
505.5 	documentation must have valid effective dates as of the date the registration request is 
505.6 	submitted to the commissioner. The training must have been provided by an individual 
505.7 	approved to provide first aid and CPR instruction and have included CPR techniques for 
505.8 	infants and children.
505.9 	(b) Upon each reauthorization after the authorization period when the initial first aid 
505.10 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
505.11 	provide verification of at least eight hours of additional training listed in the Minnesota 
505.12 	Center for Professional Development Registry.
505.13 	(c) Every 12 months, a legal nonlicensed family child care provider who is unrelated to 
505.14 	the child they care for must complete two hours of training in caring for children approved 
505.15 	by the commissioner.
505.16 	(c) (d) This subdivision only applies to legal nonlicensed family child care providers.

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

505.18 	Sec. 12. Minnesota Statutes 2024, section 142E.16, subdivision 7, is amended to read:
505.19 		Subd. 7.Record-keeping requirement. (a) As a condition of payment, all providers 
505.20 	receiving child care assistance payments must:
505.21 	(1) keep accurate and legible daily attendance records at the site where services are 
505.22 	delivered for children receiving child care assistance; and
505.23 	(2) make those records available immediately to the county or the commissioner upon 
505.24 	request. Any records not provided to a county or the commissioner at the date and time of 
505.25 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
505.26 	to contest an overpayment or disqualification of the provider.; and
505.27 	(3) submit data on child enrollment and attendance in the form and manner specified by 
505.28 	the commissioner.
505.29 	(b) As a condition of payment, attendance records must be completed daily and include 
505.30 	the date, the first and last name of each child in attendance, and the times when each child 
505.31 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
505.32 	off to and picked up from the child care provider must be entered by the person dropping 
506.1 	off or picking up the child. The daily attendance records must be retained at the site where 
506.2 	services are delivered for six years after the date of service.
506.3 	(c) When the county or the commissioner knows or has reason to believe that a current 
506.4 	or former provider has not complied with the record-keeping requirement in this subdivision:
506.5 	(1) the commissioner may:
506.6 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
506.7 	under section 142E.17, subdivision 9, paragraph (d);
506.8 	(ii) pursue an administrative disqualification under sections 142E.51, subdivision 5, and 
506.9 	256.98; or
506.10 	(iii) take an action against the provider under sections 142E.50 to 142E.58 section 
506.11 	142E.51; or
506.12 	(2) a county or the commissioner may establish an attendance record overpayment under 
506.13 	paragraph (d).
506.14 	(d) To calculate an attendance record overpayment under this subdivision, the 
506.15 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
506.16 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
506.17 	incomplete, inaccurate, or otherwise inadequate.
506.18 	(e) The commissioner shall develop criteria for a county to determine an attendance 
506.19 	record overpayment under this subdivision.

506.20 	EFFECTIVE DATE. This section is effective June 22, 2026.

506.21 	Sec. 13. Minnesota Statutes 2024, section 245.0962, subdivision 1, is amended to read:
506.22 		Subdivision 1.Establishment. The commissioner of human services children, youth, 
506.23 	and families must establish a quality parenting initiative grant program to implement quality 
506.24 	parenting initiative principles and practices to support children and families experiencing 
506.25 	foster care placements.

506.26 	Sec. 14. Minnesota Statutes 2024, section 245.975, subdivision 1, is amended to read:
506.27 		Subdivision 1.Creation and appointment. The Office of the Ombudsperson for Family 
506.28 	Child Care Providers is hereby created. The governor shall appoint an ombudsperson in the 
506.29 	unclassified service to assist family child care providers with licensing, compliance, and 
506.30 	other issues facing family child care providers. The ombudsperson must be selected without 
506.31 	regard to the person's political affiliation and must have been a licensed family child care 
507.1 	provider for at least three years. The ombudsperson shall serve a term of four years, which 
507.2 	may be renewed, and may be removed prior to the end of the term for just cause.

507.3 	Sec. 15. Laws 2021, First Special Session chapter 7, article 2, section 81, is amended to 
507.4 	read:
507.5 	Sec. 81. FAMILY CHILD CARE REGULATION MODERNIZATION.
 507.6 	(a) The commissioner of human services shall children, youth, and families must contract 
507.7 	with an experienced and independent organization or individual consultant to conduct the 
507.8 	work outlined in this section. If practicable, the commissioner must contract with the National 
507.9 	Association for Regulatory Administration.
507.10 	(b) The consultant must develop a proposal for updated family child care licensing 
507.11 	standards and solicit input from stakeholders as described in paragraph (d). The proposed 
507.12 	new standards must protect the health and safety of children in family child care programs 
507.13 	and be child centered, family friendly, and fair to providers.
507.14 	(c) The consultant must work with stakeholders and the Department of Children, Youth, 
507.15 	and Families, as described in paragraph (d), to develop a proposal for a risk-based model 
507.16 	for monitoring compliance with family child care licensing standards, grounded in national 
507.17 	regulatory best practices. Violations in the new model must be weighted to reflect the 
507.18 	potential risk they pose to children's health and safety, and licensing sanctions must be tied 
507.19 	to the potential risk. The proposed new model must protect the health and safety of children 
507.20 	in family child care programs and be child-centered, family-friendly, and fair to providers.
507.21 	(d) The consultant shall must develop and implement a stakeholder engagement process 
507.22 	that solicits input from parents, licensed family child care providers, county licensors, staff 
507.23 	of the Department of Human Services Children, Youth, and Families, and experts in child 
507.24 	development about licensing standards, tiers for violations of the standards based on the 
507.25 	potential risk of harm that each violation poses, and licensing sanctions for each tier. The 
507.26 	consultant and commissioner must engage with working groups of licensed family child 
507.27 	care providers at least five times throughout the stakeholder engagement process, and include 
507.28 	both daytime and evening engagement opportunities as needed.
507.29 	(e) The consultant shall solicit input from parents, licensed family child care providers, 
507.30 	county licensors, and staff of the Department of Human Services Children, Youth, and 
507.31 	Families about which family child care providers should be eligible for abbreviated 
507.32 	inspections that predict compliance with other licensing standards for licensed family child 
507.33 	care providers using key indicators previously identified by an empirically based statistical 
508.1 	methodology developed by the National Association for Regulatory Administration and the 
508.2 	Research Institute for Key Indicators.
508.3 	(f) No later than February December 1, 2024 2025, the commissioner shall must submit 
508.4 	a report and proposed legislation required to implement the new licensing model and the 
508.5 	new licensing standards to the chairs and ranking minority members of the legislative 
508.6 	committees with jurisdiction over child care regulation. Throughout the drafting of the 
508.7 	report and proposed legislation required under this paragraph, the commissioner must engage 
508.8 	providers whose primary language is not English to have those providers review translated 
508.9 	drafts of the report and written materials provided at engagement sessions to provide feedback 
508.10 	on the draft standards. This engagement must occur within focus groups or meetings that 
508.11 	are held at convenient times for the providers, including both daytime and evening sessions.
508.12 	(g) The proposals developed under paragraphs (b) and (c); any presentations, summary 
508.13 	documents, engagement invitations, surveys, and drafts of the report used in the stakeholder 
508.14 	engagement process under paragraph (d) or when soliciting input under paragraph (e); and 
508.15 	the report required under paragraph (f) must also be made available in Hmong, Somali, and 
508.16 	Spanish.
508.17 	(h) The updated family child care licensing standards proposed under paragraph (b) and 
508.18 	the risk-based model for monitoring compliance with family child care licensing standards 
508.19 	proposed under paragraph (c) must not be implemented any earlier than January 1, 2027.

508.20 	Sec. 16. ELIMINATING SCHEDULE REPORTER DESIGNATION.
 508.21 	Notwithstanding Minnesota Statutes, section 142E.04, subdivisions 6, 7, and 8, the 
508.22 	commissioner of children, youth, and families must allocate additional basic sliding fee 
508.23 	child care money for calendar years 2026 and 2027 to counties and Tribes to account for 
508.24 	eliminating the schedule reporter designation in the child care assistance program. In 
508.25 	allocating the additional money, the commissioner shall consider:
508.26 	(1) the number of children who are in schedule reporter families; and
508.27 	(2) the average basic sliding fee cost of care in the county or Tribe.

508.28 	Sec. 17. REVISOR INSTRUCTION.
 508.29 	The revisor of statutes shall renumber Minnesota Statutes, section 245.0962, as Minnesota 
508.30 	Statutes, section 142A.47. The revisor shall also make necessary cross-reference changes 
508.31 	consistent with the renumbering.

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

509.1 	Sec. 18. REVISOR INSTRUCTION.
 509.2 	The revisor of statutes shall renumber Minnesota Statutes, section 142D.12, subdivision 
509.3 	3, as Minnesota Statutes, section 120B.121. The revisor shall also make necessary 
509.4 	cross-reference changes consistent with the renumbering.

509.5 	Sec. 19. REVISOR INSTRUCTION.
 509.6 	The revisor of statutes shall renumber Minnesota Statutes, section 124D.129, as 
509.7 	Minnesota Statutes, section 142A.48. The revisor shall also make necessary cross-reference 
509.8 	changes consistent with the renumbering.

509.9 	ARTICLE 20
509.10 	CHILDREN AND FAMILIES LICENSING POLICY

509.11 	Section 1. Minnesota Statutes 2024, section 142B.10, subdivision 14, is amended to read:
509.12 		Subd. 14.Grant of license; license extension. (a) If the commissioner determines that 
509.13 	the program complies with all applicable rules and laws, the commissioner shall issue a 
509.14 	license consistent with this section or, if applicable, a temporary change of ownership license 
509.15 	under section 142B.11. At minimum, the license shall state:
509.16 	(1) the name of the license holder;
509.17 	(2) the address of the program;
509.18 	(3) the effective date and expiration date of the license;
509.19 	(4) the type of license;
509.20 	(5) the maximum number and ages of persons that may receive services from the program; 
509.21 	and
509.22 	(6) any special conditions of licensure.
509.23 	(b) The commissioner may issue a license for a period not to exceed two years if:
509.24 	(1) the commissioner is unable to conduct the observation required by subdivision 11, 
509.25 	paragraph (a), clause (3), because the program is not yet operational;
509.26 	(2) certain records and documents are not available because persons are not yet receiving 
509.27 	services from the program; and
509.28 	(3) the applicant complies with applicable laws and rules in all other respects.
510.1 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
510.2 	or persons will be placed or cared for in the licensed program.
510.3 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
510.4 	license if the applicant, license holder, or an affiliated controlling individual has:
510.5 	(1) been disqualified and the disqualification was not set aside and no variance has been 
510.6 	granted;
510.7 	(2) been denied a license under this chapter or chapter 245A within the past two years;
510.8 	(3) had a license issued under this chapter or chapter 245A revoked within the past five 
510.9 	years; or
510.10 	(4) failed to submit the information required of an applicant under subdivision 1, 
510.11 	paragraph (f), (g), or (h), after being requested by the commissioner.
510.12 	When a license issued under this chapter or chapter 245A is revoked, the license holder 
510.13 	and each affiliated controlling individual with a revoked license may not hold any license 
510.14 	under chapter 142B for five years following the revocation, and other licenses held by the 
510.15 	applicant or license holder or licenses affiliated with each controlling individual shall also 
510.16 	be revoked.
510.17 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
510.18 	affiliated with a license holder or controlling individual that had a license revoked within 
510.19 	the past five years if the commissioner determines that (1) the license holder or controlling 
510.20 	individual is operating the program in substantial compliance with applicable laws and rules 
510.21 	and (2) the program's continued operation is in the best interests of the community being 
510.22 	served.
510.23 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
510.24 	to an application that is affiliated with an applicant, license holder, or controlling individual 
510.25 	that had an application denied within the past two years or a license revoked within the past 
510.26 	five years if the commissioner determines that (1) the applicant or controlling individual 
510.27 	has operated one or more programs in substantial compliance with applicable laws and rules 
510.28 	and (2) the program's operation would be in the best interests of the community to be served.
510.29 	(g) In determining whether a program's operation would be in the best interests of the 
510.30 	community to be served, the commissioner shall consider factors such as the number of 
510.31 	persons served, the availability of alternative services available in the surrounding 
510.32 	community, the management structure of the program, whether the program provides 
510.33 	culturally specific services, and other relevant factors.
511.1 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
511.2 	living in the household where the services will be provided as specified under section 
511.3 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
511.4 	and no variance has been granted.
511.5 	(i) Pursuant to section 142B.18, subdivision 1, paragraph (b), when a license issued 
511.6 	under this chapter has been suspended or revoked and the suspension or revocation is under 
511.7 	appeal, the program may continue to operate pending a final order from the commissioner. 
511.8 	If the license under suspension or revocation will expire before a final order is issued, a 
511.9 	temporary provisional license may be issued provided any applicable license fee is paid 
511.10 	before the temporary provisional license is issued.
511.11 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
511.12 	a controlling individual or license holder, and the controlling individual or license holder 
511.13 	is ordered under section 245C.17 to be immediately removed from direct contact with 
511.14 	persons receiving services or is ordered to be under continuous, direct supervision when 
511.15 	providing direct contact services, the program may continue to operate only if the program 
511.16 	complies with the order and submits documentation demonstrating compliance with the 
511.17 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
511.18 	if the disqualification is not set aside and no variance is granted, the order to immediately 
511.19 	remove the individual from direct contact or to be under continuous, direct supervision 
511.20 	remains in effect pending the outcome of a hearing and final order from the commissioner.
511.21 	(k) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
511.22 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
511.23 	relocation within the same county by a licensed family day care provider, shall be considered 
511.24 	an extension of the license for a period of no more than 30 calendar days or until the new 
511.25 	license is issued, whichever occurs first, provided the county agency has determined the 
511.26 	family day care provider meets licensure requirements at the new location.
511.27 	(l) Unless otherwise specified by statute, all licenses issued under this chapter expire at 
511.28 	12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
511.29 	apply for and be granted comply with the requirements in section 142B.12 and be reissued
511.30 	a new license to operate the program or the program must not be operated after the expiration 
511.31 	date. Child foster care license holders must apply for and be granted a new license to operate 
511.32 	the program or the program must not be operated after the expiration date. Upon 
511.33 	implementation of the provider licensing and reporting hub, licenses may be issued each 
511.34 	calendar year.
512.1 	(m) The commissioner shall not issue or reissue a license under this chapter if it has 
512.2 	been determined that a tribal licensing authority has established jurisdiction to license the 
512.3 	program or service.
512.4 	(n) The commissioner of children, youth, and families shall coordinate and share data 
512.5 	with the commissioner of human services to enforce this section.

512.6 	Sec. 2. Minnesota Statutes 2024, section 142B.171, subdivision 2, is amended to read:
512.7 		Subd. 2.Documented technical assistance.  (a) In lieu of a correction order under section 
512.8 	142B.16, the commissioner shall provide documented technical assistance to a family child 
512.9 	care or child care center license holder if the commissioner finds that:
512.10 	(1) the license holder has failed to comply with a requirement in this chapter or Minnesota 
512.11 	Rules, chapter 9502 or 9503, that the commissioner determines to be low risk as determined 
512.12 	by the child care weighted risk system;
512.13 	(2) the noncompliance does not imminently endanger the health, safety, or rights of the 
512.14 	persons served by the program; and
512.15 	(3) the license holder did not receive documented technical assistance or a correction 
512.16 	order for the same violation at the license holder's most recent annual licensing inspection.
512.17 	(b) Documented technical assistance must include communication from the commissioner 
512.18 	to the license holder that:
512.19 	(1) states the conditions that constitute a violation of a law or rule;
512.20 	(2) references the specific law or rule violated; and
512.21 	(3) explains remedies for correcting the violation.
512.22 	(c) The commissioner shall not publicly publish documented technical assistance on the 
512.23 	department's website.

512.24 	Sec. 3. Minnesota Statutes 2024, section 142B.30, subdivision 1, is amended to read:
512.25 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
512.26 	agencies that have been designated or licensed by the commissioner to perform licensing 
512.27 	functions and activities under section 142B.10; to recommend denial of applicants under 
512.28 	section 142B.15; to issue correction orders, to issue variances, and to recommend a 
512.29 	conditional license under section 142B.16; or to recommend suspending or revoking a 
512.30 	license or issuing a fine under section 142B.18, shall comply with rules and directives of 
512.31 	the commissioner governing those functions and with this section. The following variances 
513.1 	are excluded from the delegation of variance authority and may be issued only by the 
513.2 	commissioner:
513.3 	(1) dual licensure of family child care and family child foster care;
513.4 	(2) child foster care maximum age requirement;
513.5 	(3) variances regarding disqualified individuals;
513.6 	(4) variances to requirements relating to chemical use problems of a license holder or a 
513.7 	household member of a license holder; and
513.8 	(5) variances to section 142B.74 for a time-limited period. If the commissioner grants 
513.9 	a variance under this clause, the license holder must provide notice of the variance to all 
513.10 	parents and guardians of the children in care.
513.11 	(b) The commissioners of human services and children, youth, and families must both 
513.12 	approve a variance for dual licensure of family child foster care and family adult foster care 
513.13 	or family adult foster care and family child care. Variances under this paragraph are excluded 
513.14 	from the delegation of variance authority and may be issued only by both commissioners.
513.15 	(c) Except as provided in section 142B.41, subdivision 4, paragraph (e), a county agency 
513.16 	must not grant a license holder a variance to exceed the maximum allowable family child 
513.17 	care license capacity of 14 children.
513.18 	(d) A county agency that has been designated by the commissioner to issue family child 
513.19 	care variances must:
513.20 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
513.21 	public website and update the policies as necessary; and
513.22 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
513.23 	all family child care license holders in the county.
513.24 	(e) Before the implementation of NETStudy 2.0, county agencies must report information 
513.25 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
513.26 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
513.27 	commissioner at least monthly in a format prescribed by the commissioner.
513.28 	(f) For family child care programs, the commissioner shall require a county agency to 
513.29 	conduct one unannounced licensing review at least annually.
513.30 	(g) A child foster care license issued under this section may be issued for up to two years
513.31 	until implementation of the provider licensing and reporting hub. Upon implementation of 
513.32 	the provider licensing and reporting hub, licenses may be issued each calendar year.
514.1 	(h) A county agency shall report to the commissioner, in a manner prescribed by the 
514.2 	commissioner, the following information for a licensed family child care program:
514.3 	(1) the results of each licensing review completed, including the date of the review, and 
514.4 	any licensing correction order issued;
514.5 	(2) any death, serious injury, or determination of substantiated maltreatment; and
514.6 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
514.7 	information under this clause must also be reported to the state fire marshal within two 
514.8 	business days of receiving notice from a licensed family child care provider.

514.9 	Sec. 4. Minnesota Statutes 2024, section 142B.41, is amended by adding a subdivision to 
514.10 	read:
514.11 		Subd. 14.Staff distribution. Notwithstanding Minnesota Rules, part 9503.0040, subpart 
514.12 	2, item B, a child care aide in a licensed child care center may be substituted for a teacher 
514.13 	during morning arrival and afternoon departure times if the total arrival and departure time 
514.14 	does not exceed 25 percent of the center's daily hours of operation. For a child care aide to 
514.15 	be substituted for a teacher under this subdivision, the child care aide must:
514.16 	(1) be 18 years of age or older;
514.17 	(2) have been employed by the child care center for a minimum of 30 days; and
514.18 	(3) have completed the training required under section 142B.65, including orientation 
514.19 	training and the training required within the first 90 days of employment.

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

514.21 	Sec. 5. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
514.22 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
514.23 	licensed by the Department of Human Services under chapter 245A or the Department of 
514.24 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
514.25 	serve a child or children under eight nine years of age must document training that fulfills 
514.26 	the requirements in this subdivision.
514.27 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
514.28 	age eight nine in a motor vehicle, the person transporting the child must satisfactorily 
514.29 	complete training on the proper use and installation of child restraint systems in motor 
514.30 	vehicles. Training completed under this section may be used to meet initial or ongoing 
514.31 	training under Minnesota Rules, part 2960.3070, subparts 1 and 2.
515.1 	(c) Training required under this section must be completed at orientation or initial training 
515.2 	and repeated at least once every five years. At a minimum, the training must address the 
515.3 	proper use of child restraint systems based on the child's size, weight, and age, and the 
515.4 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
515.5 	holder to transport the child or children.
515.6 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
515.7 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
515.8 	holders may obtain a list of certified and approved trainers through the Department of Public 
515.9 	Safety website or by contacting the agency.
515.10 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
515.11 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
515.12 	for a relative who completes a child seat safety check up. The child seat safety check up 
515.13 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
515.14 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
515.15 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
515.16 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
515.17 	a license and may transport a relative foster child younger than eight years of age. A child 
515.18 	seat safety check up must be completed each time a child requires a different size car seat 
515.19 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
515.20 	complete training that meets the other requirements of this subdivision prior to placement 
515.21 	of another foster child younger than eight years of age in the home or prior to the renewal 
515.22 	of the child foster care license.

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

515.24 	Sec. 6. Minnesota Statutes 2024, section 142B.65, subdivision 8, is amended to read:
515.25 		Subd. 8.Child passenger restraint systems; training requirement.  (a) Before a license 
515.26 	holder transports a child or children under age eight nine in a motor vehicle, the person 
515.27 	placing the child or children in a passenger restraint must satisfactorily complete training 
515.28 	on the proper use and installation of child restraint systems in motor vehicles.
515.29 	(b) Training required under this subdivision must be repeated at least once every five 
515.30 	years. At a minimum, the training must address the proper use of child restraint systems 
515.31 	based on the child's size, weight, and age, and the proper installation of a car seat or booster 
515.32 	seat in the motor vehicle used by the license holder to transport the child or children.
516.1 	(c) Training required under this subdivision must be provided by individuals who are 
516.2 	certified and approved by the Department of Public Safety, Office of Traffic Safety. License 
516.3 	holders may obtain a list of certified and approved trainers through the Department of Public 
516.4 	Safety website or by contacting the agency.
516.5 	(d) Child care providers that only transport school-age children as defined in section 
516.6 	142B.01, subdivision 25, in child care buses as defined in section 169.448, subdivision 1, 
516.7 	paragraph (e), are exempt from this subdivision.
516.8 	(e) Training completed under this subdivision may be used to meet in-service training 
516.9 	requirements under subdivision 9. Training completed within the previous five years is 
516.10 	transferable upon a staff person's change in employment to another child care center.

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

516.12 	Sec. 7. Minnesota Statutes 2024, section 142B.65, subdivision 9, is amended to read:
516.13 		Subd. 9.In-service training. (a) A license holder must ensure that the center director, 
516.14 	staff persons, substitutes, and unsupervised volunteers complete in-service training each 
516.15 	calendar year.
516.16 	(b) The center director and staff persons who work more than 20 hours per week must 
516.17 	complete 24 hours of in-service training each calendar year. Staff persons who work 20 
516.18 	hours or less per week must complete 12 hours of in-service training each calendar year. 
516.19 	Substitutes and unsupervised volunteers must complete at least two hours of training each 
516.20 	year, and the training must include the requirements of paragraphs (d) to (g) and do not 
516.21 	otherwise have a minimum number of hours of training to complete.
516.22 	(c) The number of in-service training hours may be prorated for individuals center 
516.23 	directors and staff persons not employed for an entire year.
516.24 	(d) Each year, in-service training must include:
516.25 	(1) the center's procedures for maintaining health and safety according to section 142B.66 
516.26 	and Minnesota Rules, part 9503.0140, and handling emergencies and accidents according 
516.27 	to Minnesota Rules, part 9503.0110;
516.28 	(2) the reporting responsibilities under chapter 260E and Minnesota Rules, part 
516.29 	9503.0130;
516.30 	(3) at least one-half hour of training on the standards under section 142B.46 and on 
516.31 	reducing the risk of sudden unexpected infant death as required under subdivision 6, if 
516.32 	applicable; and
517.1 	(4) at least one-half hour of training on the risk of abusive head trauma from shaking 
517.2 	infants and young children as required under subdivision 7, if applicable.
517.3 	(e) Each year, or when a change is made, whichever is more frequent, in-service training 
517.4 	must be provided on: (1) the center's risk reduction plan under section 142B.54, subdivision 
517.5 	2; and (2) a child's individual child care program plan as required under Minnesota Rules, 
517.6 	part 9503.0065, subpart 3.
517.7 	(f) At least once every two calendar years, the in-service training must include:
517.8 	(1) child development and learning training under subdivision 3;
517.9 	(2) pediatric first aid that meets the requirements of subdivision 4;
517.10 	(3) pediatric cardiopulmonary resuscitation training that meets the requirements of 
517.11 	subdivision 5;
517.12 	(4) cultural dynamics training to increase awareness of cultural differences; and
517.13 	(5) disabilities training to increase awareness of differing abilities of children.
517.14 	(g) At least once every five years, in-service training must include child passenger 
517.15 	restraint training that meets the requirements of subdivision 8, if applicable.
517.16 	(h) The remaining hours of the in-service training requirement must be met by completing 
517.17 	training in the following content areas of the Minnesota Knowledge and Competency 
517.18 	Framework:
517.19 	(1) Content area I: child development and learning;
517.20 	(2) Content area II: developmentally appropriate learning experiences;
517.21 	(3) Content area III: relationships with families;
517.22 	(4) Content area IV: assessment, evaluation, and individualization;
517.23 	(5) Content area V: historical and contemporary development of early childhood 
517.24 	education;
517.25 	(6) Content area VI: professionalism;
517.26 	(7) Content area VII: health, safety, and nutrition; and
517.27 	(8) Content area VIII: application through clinical experiences.
517.28 	(i) For purposes of this subdivision, the following terms have the meanings given them.
518.1 	(1) "Child development and learning training" means training in understanding how 
518.2 	children develop physically, cognitively, emotionally, and socially and learn as part of the 
518.3 	children's family, culture, and community.
518.4 	(2) "Developmentally appropriate learning experiences" means creating positive learning 
518.5 	experiences, promoting cognitive development, promoting social and emotional development, 
518.6 	promoting physical development, and promoting creative development.
518.7 	(3) "Relationships with families" means training on building a positive, respectful 
518.8 	relationship with the child's family.
518.9 	(4) "Assessment, evaluation, and individualization" means training in observing, 
518.10 	recording, and assessing development; assessing and using information to plan; and assessing 
518.11 	and using information to enhance and maintain program quality.
518.12 	(5) "Historical and contemporary development of early childhood education" means 
518.13 	training in past and current practices in early childhood education and how current events 
518.14 	and issues affect children, families, and programs.
518.15 	(6) "Professionalism" means training in knowledge, skills, and abilities that promote 
518.16 	ongoing professional development.
518.17 	(7) "Health, safety, and nutrition" means training in establishing health practices, ensuring 
518.18 	safety, and providing healthy nutrition.
518.19 	(8) "Application through clinical experiences" means clinical experiences in which a 
518.20 	person applies effective teaching practices using a range of educational programming models.
518.21 	(j) The license holder must ensure that documentation, as required in subdivision 10, 
518.22 	includes the number of total training hours required to be completed, name of the training, 
518.23 	the Minnesota Knowledge and Competency Framework content area, number of hours 
518.24 	completed, and the director's approval of the training.
518.25 	(k) In-service training completed by a staff person that is not specific to that child care 
518.26 	center is transferable upon a staff person's change in employment to another child care 
518.27 	program.

518.28 	Sec. 8. Minnesota Statutes 2024, section 142B.66, subdivision 3, is amended to read:
518.29 		Subd. 3.Emergency preparedness. (a) A licensed child care center must have a written 
518.30 	emergency plan for emergencies that require evacuation, sheltering, or other protection of 
518.31 	a child, such as fire, natural disaster, intruder, or other threatening situation that may pose 
519.1 	a health or safety hazard to a child. The plan must be written on a form developed by the 
519.2 	commissioner and must include:
519.3 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
519.4 	(2) a designated relocation site and evacuation route;
519.5 	(3) procedures for notifying a child's parent or legal guardian of the evacuation, relocation, 
519.6 	shelter-in-place, or lockdown, including procedures for reunification with families;
519.7 	(4) accommodations for a child with a disability or a chronic medical condition;
519.8 	(5) procedures for storing a child's medically necessary medicine that facilitates easy 
519.9 	removal during an evacuation or relocation;
519.10 	(6) procedures for continuing operations in the period during and after a crisis;
519.11 	(7) procedures for communicating with local emergency management officials, law 
519.12 	enforcement officials, or other appropriate state or local authorities; and
519.13 	(8) accommodations for infants and toddlers.
519.14 	(b) The license holder must train staff persons on the emergency plan at orientation, 
519.15 	when changes are made to the plan, and at least once each calendar year. Training must be 
519.16 	documented in each staff person's personnel file.
519.17 	(c) The license holder must conduct drills according to the requirements in Minnesota 
519.18 	Rules, part 9503.0110, subpart 3. The date and time of the drills must be documented.
519.19 	(d) The license holder must review and update the emergency plan annually each calendar 
519.20 	year. Documentation of the annual yearly emergency plan review shall be maintained in 
519.21 	the program's administrative records.
519.22 	(e) The license holder must include the emergency plan in the program's policies and 
519.23 	procedures as specified under section 142B.10, subdivision 21. The license holder must 
519.24 	provide a physical or electronic copy of the emergency plan to the child's parent or legal 
519.25 	guardian upon enrollment.
519.26 	(f) The relocation site and evacuation route must be posted in a visible place as part of 
519.27 	the written procedures for emergencies and accidents in Minnesota Rules, part 9503.0140, 
519.28 	subpart 21.

520.1 	Sec. 9. Minnesota Statutes 2024, section 142B.70, subdivision 7, is amended to read:
520.2 		Subd. 7.Child passenger restraint systems; training requirement. (a) A license 
520.3 	holder must comply with all seat belt and child passenger restraint system requirements 
520.4 	under section 169.685.
520.5 	(b) Family and group family child care programs licensed by the Department of Children, 
520.6 	Youth, and Families that serve a child or children under eight nine years of age must 
520.7 	document training that fulfills the requirements in this subdivision.
520.8 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
520.9 	child or children under age eight nine in a motor vehicle, the person placing the child or 
520.10 	children in a passenger restraint must satisfactorily complete training on the proper use and 
520.11 	installation of child restraint systems in motor vehicles. Training completed under this 
520.12 	subdivision may be used to meet initial training under subdivision 1 or ongoing training 
520.13 	under subdivision 8.
520.14 	(2) Training required under this subdivision must be at least one hour in length, completed 
520.15 	at initial training, and repeated at least once every five years. At a minimum, the training 
520.16 	must address the proper use of child restraint systems based on the child's size, weight, and 
520.17 	age, and the proper installation of a car seat or booster seat in the motor vehicle used by the 
520.18 	license holder to transport the child or children.
520.19 	(3) Training under this subdivision must be provided by individuals who are certified 
520.20 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
520.21 	may obtain a list of certified and approved trainers through the Department of Public Safety 
520.22 	website or by contacting the agency.
520.23 	(c) Child care providers that only transport school-age children as defined in section 
520.24 	142B.01, subdivision 13, paragraph (f), in child care buses as defined in section 169.448, 
520.25 	subdivision 1, paragraph (e), are exempt from this subdivision.

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

520.27 	Sec. 10. Minnesota Statutes 2024, section 142B.70, subdivision 8, is amended to read:
520.28 		Subd. 8.Training requirements for family and group family child care. (a) For 
520.29 	purposes of family and group family child care, the license holder and each second adult 
520.30 	caregiver must complete 16 hours of ongoing training each year. Repeat of topical training 
520.31 	requirements in subdivisions 3 to 9 shall count toward the annual 16-hour training 
520.32 	requirement. Additional ongoing training subjects to meet the annual 16-hour training 
520.33 	requirement must be selected from the following areas:
521.1 	(1) child development and learning training in understanding how a child develops 
521.2 	physically, cognitively, emotionally, and socially, and how a child learns as part of the 
521.3 	child's family, culture, and community;
521.4 	(2) developmentally appropriate learning experiences, including training in creating 
521.5 	positive learning experiences, promoting cognitive development, promoting social and 
521.6 	emotional development, promoting physical development, promoting creative development; 
521.7 	and behavior guidance;
521.8 	(3) relationships with families, including training in building a positive, respectful 
521.9 	relationship with the child's family;
521.10 	(4) assessment, evaluation, and individualization, including training in observing, 
521.11 	recording, and assessing development; assessing and using information to plan; and assessing 
521.12 	and using information to enhance and maintain program quality;
521.13 	(5) historical and contemporary development of early childhood education, including 
521.14 	training in past and current practices in early childhood education and how current events 
521.15 	and issues affect children, families, and programs;
521.16 	(6) professionalism, including training in knowledge, skills, and abilities that promote 
521.17 	ongoing professional development; and
521.18 	(7) health, safety, and nutrition, including training in establishing healthy practices; 
521.19 	ensuring safety; and providing healthy nutrition.
521.20 	(b) A provider who is approved as a trainer through the Develop data system may count 
521.21 	up to two hours of training instruction toward the annual 16-hour training requirement in 
521.22 	paragraph (a). The provider may only count training instruction hours for the first instance 
521.23 	in which they deliver a particular content-specific training during each licensing year. Hours 
521.24 	counted as training instruction must be approved through the Develop data system with 
521.25 	attendance verified on the trainer's individual learning record and must be in Knowledge 
521.26 	and Competency Framework content area VII A (Establishing Healthy Practices) or B 
521.27 	(Ensuring Safety).
521.28 	(c) Substitutes and adult caregivers who provide care for 500 or fewer hours per year 
521.29 	must complete a minimum of one hour of training each calendar year, and the training must 
521.30 	include the requirements in subdivisions 3, 4, 5, 6, and 9.

522.1 	Sec. 11. Minnesota Statutes 2024, section 142C.06, is amended by adding a subdivision 
522.2 	to read:
522.3 		Subd. 4.Requirement to post conditional certification. Upon receipt of any order of 
522.4 	conditional certification issued by the commissioner under this section, and notwithstanding 
522.5 	a pending request for reconsideration of the order of conditional certification by the 
522.6 	certification holder, the certification holder shall post the order of conditional certification 
522.7 	in a place that is conspicuous to the people receiving services and all visitors to the facility 
522.8 	for the duration of the conditional certification. When the order of conditional certification 
522.9 	is accompanied by a maltreatment investigation memorandum prepared under chapter 260E, 
522.10 	the investigation memoranda must be posted with the order of conditional certification.

522.11 	Sec. 12. Minnesota Statutes 2024, section 142C.11, subdivision 8, is amended to read:
522.12 		Subd. 8.Required policies. A certified center must have written policies for health and 
522.13 	safety items in subdivisions 1 to 6, 9, and 10.

522.14 	Sec. 13. Minnesota Statutes 2024, section 142C.12, subdivision 1, is amended to read:
522.15 		Subdivision 1.First aid and cardiopulmonary resuscitation. (a) Before having 
522.16 	unsupervised direct contact with a child, but within 90 days after the first date of direct 
522.17 	contact with a child, the director, all staff persons, substitutes, and unsupervised volunteers 
522.18 	must successfully complete pediatric first aid and pediatric cardiopulmonary resuscitation 
522.19 	(CPR) training, unless the training has been completed within the previous two calendar 
522.20 	years. Staff must complete the pediatric first aid and pediatric CPR training at least every 
522.21 	other calendar year and the center must document the training in the staff person's personnel 
522.22 	record.
522.23 	(b) Training completed under this subdivision may be used to meet the in-service training 
522.24 	requirements under subdivision 6.
522.25 	(c) Training must include CPR and techniques for providing immediate care to people 
522.26 	experiencing life-threatening cardiac emergencies, choking, bleeding, fractures and sprains, 
522.27 	head injuries, poisoning, and burns. Training developed by the American Heart Association, 
522.28 	the American Red Cross, or another organization that uses nationally recognized, 
522.29 	evidence-based guidelines meets these requirements.

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

523.1 	Sec. 14. Minnesota Statutes 2024, section 142C.12, subdivision 6, is amended to read:
523.2 		Subd. 6.In-service training. (a) The certified center must ensure that the director and 
523.3 	all staff persons, including substitutes and unsupervised volunteers, are trained at least once 
523.4 	each calendar year on health and safety requirements in this section and sections 142C.10, 
523.5 	142C.11, and 142C.13.
523.6 	(b) The director and each staff person, not including substitutes, must complete at least 
523.7 	six hours of training each calendar year. Substitutes must complete at least two hours of 
523.8 	training each calendar year. Training required under paragraph (a) may be used toward the 
523.9 	hourly training requirements of this subdivision.

523.10 	Sec. 15. Minnesota Statutes 2024, section 245A.18, subdivision 1, is amended to read:
523.11 		Subdivision 1.Seat belt and child passenger restraint system use. All license holders 
523.12 	that transport children must comply with the requirements of section 142B.51, subdivision 
523.13 	1, and license holders that transport a child or children under eight nine years of age must 
523.14 	document training that fulfills the requirements in section 142B.51, subdivision 2.

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

523.16 	ARTICLE 21
523.17 	MISCELLANEOUS

523.18 	Section 1. Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
523.19 		Subdivision 1.Administration of plan. (a) The association is Minnesota's reinsurance 
523.20 	entity to administer the state-based reinsurance program referred to as the Minnesota premium 
523.21 	security plan.
523.22 	(b) The association may apply for any available federal funding for the plan. All funds 
523.23 	received by or appropriated to the association shall be deposited in the premium security 
523.24 	plan account in section 62E.25, subdivision 1. The association shall notify the chairs and 
523.25 	ranking minority members of the legislative committees with jurisdiction over health and 
523.26 	human services and insurance within ten days of receiving any federal funds.
523.27 	(c) The association must collect or access data from an eligible health carrier that are 
523.28 	necessary to determine reinsurance payments, according to the data requirements under 
523.29 	subdivision 5, paragraph (c).
524.1 	(d) The board must not use any funds allocated to the plan for staff retreats, promotional 
524.2 	giveaways, excessive executive compensation, or promotion of federal or state legislative 
524.3 	or regulatory changes.
524.4 	(e) For each applicable benefit year, the association must notify eligible health carriers 
524.5 	of reinsurance payments to be made for the applicable benefit year no later than June 30 of 
524.6 	the year following the applicable benefit year.
524.7 	(f) On a quarterly basis during the applicable benefit year, the association must provide 
524.8 	each eligible health carrier with the calculation of total reinsurance payment requests.
524.9 	(g) By August 15 of the year following the applicable benefit year, through August 15, 
524.10 	2026, the association must disburse all applicable reinsurance payments to an eligible health 
524.11 	carrier.
524.12 	(h) The association must disburse applicable reinsurance payments for claims costs 
524.13 	incurred by eligible health carriers through December 31, 2025. Reinsurance payments are 
524.14 	not available to eligible health carriers for claims costs incurred after December 31, 2025.

524.15 	Sec. 2. [62V.15] DEFINITIONS; PREMIUM SUBSIDY PROGRAM.
524.16 		Subdivision 1.Scope. For purposes of sections 62V.15 to 62V.18, the following terms 
524.17 	have the meanings given.
524.18 		Subd. 2.Assessment. "Assessment" means the amount a health plan company must pay 
524.19 	for operational costs, administrative costs, and premium subsidy payments for the premium 
524.20 	subsidy program established under section 62V.16.
524.21 		Subd. 3.Commissioner. "Commissioner" means the commissioner of management and 
524.22 	budget.
524.23 		Subd. 4.Eligible individual. (a) "Eligible individual" means a Minnesota resident who:
524.24 	(1) is not eligible for an advance premium tax credit under Code of Federal Regulations, 
524.25 	title 26, part 1.36B-2, in a month in which the eligible individual's coverage is effective;
524.26 	(2) is not enrolled in public program coverage under chapters 256B and 256L; and
524.27 	(3) purchased an individual health plan, as defined in section 62A.011.
524.28 	(b) "Eligible individual" includes a person required to repay an advanced premium tax 
524.29 	credit because the person's income was subsequently determined to exceed the maximum 
524.30 	permissible amount to qualify as an applicable taxpayer under Code of Federal Regulations, 
524.31 	title 26, part 1.36B-2.
525.1 		Subd. 5.Gross premium. "Gross premium" means the amount billed for a health plan 
525.2 	purchased by an eligible individual prior to a premium subsidy in a calendar year.
525.3 		Subd. 6.Health plan company. "Health plan company" means a health plan company, 
525.4 	as defined in section 62Q.01, that offers, issues, sells, or renews a health plan, as defined 
525.5 	in section 62Q.01, in Minnesota.
525.6 		Subd. 7.Net premium. "Net premium" means the gross premium less the premium 
525.7 	subsidy.
525.8 		Subd. 8.Premium subsidy. "Premium subsidy" means a payment (1) made on behalf 
525.9 	of an eligible individual to promote general welfare, and (2) that is not compensation for a 
525.10 	service rendered.

525.11 	Sec. 3. [62V.16] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE 
525.12 	INDIVIDUALS.
525.13 		Subdivision 1.Program established. Beginning January 1, 2026, the board of directors 
525.14 	of MNsure, in consultation with the commissioners of commerce and human services, must 
525.15 	establish and administer the premium subsidy program authorized by this section to help 
525.16 	eligible individuals pay for coverage in the individual market.
525.17 		Subd. 2.Premium subsidy provided. (a) A health carrier must provide a premium 
525.18 	subsidy to each eligible individual who purchases an individual health plan from the health 
525.19 	carrier. The premium subsidy must be provided for each month the net premium is paid. 
525.20 	An eligible individual must pay the net premium amount to the health carrier.
525.21 	(b) Each premium subsidy must be equal to 20 percent of the monthly gross premium 
525.22 	otherwise paid by or on behalf of the eligible individual for coverage purchased in the 
525.23 	individual market that covers the eligible individual and the eligible individual's spouse and 
525.24 	dependents.
525.25 	(c) The premium subsidy must be excluded from a calculation used to determine eligibility 
525.26 	for a Department of Human Services or Department of Children, Youth, and Families 
525.27 	program.
525.28 		Subd. 3.Payments to health carriers. (a) The commissioner must make payments by 
525.29 	September 30 to health carriers on behalf of eligible individuals for the months during the 
525.30 	prior calendar year for which the individual has paid the net premium amount to the health 
525.31 	carrier. The amount of the commissioner's payments to health carriers must be in the amounts 
525.32 	provided to the commissioner by the board under paragraph (c). The commissioner must 
526.1 	not withhold payment because a health carrier cannot prove an enrollee is an eligible 
526.2 	individual.
526.3 	(b) In order to be eligible for payment, a health carrier seeking reimbursement from the 
526.4 	board must submit an invoice and supporting information to the board, using a form 
526.5 	developed by the board. The form must require the health carrier to identify the number of 
526.6 	eligible individuals for which the health carrier is seeking reimbursement, the average gross 
526.7 	premium for eligible individuals, and the aggregate amount of reimbursement claimed by 
526.8 	the health carrier for premium subsidies under this section. The board must finalize the form 
526.9 	by November 1, 2025.
526.10 	(c) The board must provide the commissioner, based on the information received by the 
526.11 	board from the health carriers pursuant to paragraph (b), the payment amount owed to each 
526.12 	health carrier.
526.13 	(d) The board must consider a health carrier as a vendor under section 16A.124, 
526.14 	subdivision 3, and each monthly invoice must represent the services that have been completed 
526.15 	or delivered.
526.16 	(e) The commissioner, in consultation with the board, may withhold payments and charge 
526.17 	back payments to recover from health carriers premium subsidies provided but that do not 
526.18 	comply with the applicable legal requirements of this section.
526.19 		Subd. 4.Assessment. (a) An annual assessment is imposed on health plan companies 
526.20 	for each calendar year beginning in calendar year 2026. The commissioner of commerce 
526.21 	must establish the annual assessment for each health plan company in an amount such that 
526.22 	the aggregate assessment amount collected from health plan companies under this subdivision 
526.23 	equals the amount necessary for the premium subsidy program established under subdivision 
526.24 	1.
526.25 	(b) By March 1 each year, the commissioner of commerce must consult with the board 
526.26 	of directors of MNsure and provide each health plan company with an estimate of the 
526.27 	company assessment for the current calendar year.
526.28 	(c) By May 31 each year, the commissioner of commerce, in consultation with the board 
526.29 	of directors of MNsure, must notify each health plan company of the company's assessment 
526.30 	for the current calendar year.
526.31 	(d) By June 30 each year, the commissioner of commerce must collect assessments from 
526.32 	health plan companies to pay for the premium subsidy program established under this 
526.33 	section.
527.1 		Subd. 5.Data practices. (a) The definitions in section 13.02 apply to this subdivision.
527.2 	(b) Government data on an enrollee or health carrier under this section are private data 
527.3 	on individuals or nonpublic data, except that the total reimbursement requested by a health 
527.4 	carrier and the total state payment to the health carrier are public data.

527.5 	Sec. 4. [62V.17] APPLICABILITY OF GROSS PREMIUM.
527.6 	Notwithstanding premium subsidies provided under section 62V.16, subdivision 2, the 
527.7 	premium base to calculate any applicable premium taxes under chapter 297I is the gross 
527.8 	premium for health plans purchased by eligible individuals in the individual market.

527.9 	Sec. 5. [62V.18] PREMIUM SUBSIDY PROGRAM ACCOUNT.
527.10 		Subdivision 1.Account established. The premium subsidy program account is created 
527.11 	in the special revenue fund in the state treasury.
527.12 		Subd. 2.Collected assessments. The commissioner of commerce must deposit the 
527.13 	assessments collected under section 62V.16, subdivision 4, in the premium subsidy program 
527.14 	account created under subdivision 1.
527.15 		Subd. 3.Appropriations. Money in the premium subsidy program account is annually 
527.16 	appropriated:
527.17 	(1) to the commissioner of management and budget for the payments to health carriers 
527.18 	on behalf of eligible individuals under section 62V.16, subdivision 3; and
527.19 	(2) to the board of directors of MNsure for operational and administrative costs for the 
527.20 	premium subsidy program established under section 62V.16.

527.21 	Sec. 6. Minnesota Statutes 2024, section 149A.02, is amended by adding a subdivision to 
527.22 	read:
527.23 		Subd. 42.Green burial. "Green burial" means a method of burial that emphasizes 
527.24 	environmental sustainability without interfering with natural decomposition and:
527.25 	(1) the body is not embalmed;
527.26 	(2) a biodegradable casket or shroud is used; and
527.27 	(3) no vault or outer burial container is employed for a casket or shroud.

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

528.1 	Sec. 7. Minnesota Statutes 2024, section 151.741, subdivision 5, is amended to read:
528.2 		Subd. 5.Insulin repayment account; annual transfer from health care access fund. (a) 
528.3 	The insulin repayment account is established in the special revenue fund in the state treasury. 
528.4 	Money in the account is appropriated each fiscal year to the commissioner of administration 
528.5 	to reimburse manufacturers for insulin dispensed under the insulin safety net program in 
528.6 	section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, 
528.7 	paragraph (h), and to cover costs incurred by the commissioner in providing these 
528.8 	reimbursement payments.
528.9 	(b) By June 30, 2025, and each June 30 thereafter, the commissioner of administration 
528.10 	shall certify to the commissioner of management and budget the total amount expended in 
528.11 	the prior fiscal year for:
528.12 	(1) reimbursement to manufacturers for insulin dispensed under the insulin safety net 
528.13 	program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph 
528.14 	(h), and 6, paragraph (h); and
528.15 	(2) costs incurred by the commissioner of administration in providing the reimbursement 
528.16 	payments described in clause (1).
528.17 	(c) The commissioner of management and budget shall transfer from the health care 
528.18 	access fund to the special revenue fund insulin repayment account, beginning July 1, 2025, 
528.19 	and each July 1 thereafter, an amount equal to the amount to which the commissioner of 
528.20 	administration certified pursuant to paragraph (b).

528.21 	Sec. 8. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to 
528.22 	read:
528.23 		Subd. 44.Notification of federal approval; report. (a) For any provision over which 
528.24 	the commissioner has jurisdiction and that has an effective date contingent upon federal 
528.25 	approval, whether the contingency is expressed in an effective date, in the text of a statutory 
528.26 	provision, or in the text of an uncodified section of session law, the commissioner must 
528.27 	notify the revisor of statutes of which enacted provisions contain such contingent federal 
528.28 	approval and when federal approval is obtained for any such provision according to 
528.29 	paragraphs (b) and (c).
528.30 	(b) By July 1 of each year, the commissioner must provide the revisor of statutes; the 
528.31 	director of the House Research Department; and the director of Senate Counsel, Research 
528.32 	and Fiscal Analysis with a report containing a complete list of all provisions enacted since 
528.33 	the preceding July 1 with an effective date contingent on federal approval.
529.1 	(c) By September 1 of each year, the commissioner must provide the revisor of statutes; 
529.2 	the director of the House Research Department; and the director of Senate Counsel, Research 
529.3 	and Fiscal Analysis with a report containing a complete list of all statutory provisions 
529.4 	previously enacted with an effective date contingent on federal approval. The commissioner 
529.5 	must identify in the report which, if any, provisions received federal approval since the 
529.6 	preceding September 1 and the date that federal approval for each provision was received. 
529.7 	If no provisions have received federal approval since the preceding September 1, the report 
529.8 	must state that fact. The revisor of statutes may authorize the commissioner to remove 
529.9 	federally approved provisions from subsequent reports submitted.
529.10 	(d) The reports in paragraphs (b) and (c) must be provided in a form prescribed by the 
529.11 	revisor of statutes.
529.12 	(e) An employee in the Department of Human Services who is responsible for identifying 
529.13 	and tracking federal approval of provisions must attest to the accuracy of the reports in a 
529.14 	manner prescribed by the revisor of statutes.

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

529.16 	Sec. 9. Minnesota Statutes 2024, section 256B.051, subdivision 3, is amended to read:
529.17 		Subd. 3.Eligibility. An individual with a disability is eligible for housing stabilization 
529.18 	services if the individual:
529.19 	(1) is 18 years of age or older;
529.20 	(2) is enrolled in medical assistance;
529.21 	(3) has income at or below 150 percent of the federal poverty level;
529.22 	(4) has an assessment of functional need that determines a need for services due to 
529.23 	limitations caused by the individual's disability;
529.24 	(4) (5) resides in or plans to transition to a community-based setting as defined in Code 
529.25 	of Federal Regulations, title 42, section 441.301 (c); and
529.26 	(5) (6) has housing instability evidenced by:
529.27 	(i) being homeless or at-risk of homelessness;
529.28 	(ii) being in the process of transitioning from, or having transitioned in the past six 
529.29 	months from, an institution or licensed or registered setting;
529.30 	(iii) being eligible for waiver services under chapter 256S or section 256B.092 or 
529.31 	256B.49; or
530.1 	(iv) having been identified by a long-term care consultation under section 256B.0911 
530.2 	as at risk of institutionalization.

530.3 	Sec. 10. [306.991] GREEN BURIALS IN PUBLIC CEMETERIES.
530.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
530.5 	the meanings given.
530.6 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
530.7 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
530.8 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
530.9 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
530.10 	14.
530.11 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
530.12 		Subd. 2.Green burial requirements. A municipality, town, or other cemetery governed 
530.13 	by this chapter that allows for green burials must comply with the requirements of this 
530.14 	section.
530.15 		Subd. 3.Green burial plot locations. (a) Green burial plots must meet the following 
530.16 	criteria:
530.17 	(1) be set back 50 feet from property lines;
530.18 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
530.19 	level;
530.20 	(3) not be in standing water;
530.21 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
530.22 	supply well, or a shaft drilled into the ground meant to extract water; and
530.23 	(5) not be within flood-prone areas.
530.24 	(b) Green burial plot locations must be a certain distance from water sources. Green 
530.25 	burial plot locations must be:
530.26 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
530.27 	water;
530.28 	(2) 100 feet from other springs or watercourses; and
530.29 	(3) 33 feet from drainage systems.
531.1 		Subd. 4.Exception. A property with green burial plots in a designated location on or 
531.2 	before July 1, 2025, does not need to comply with the requirement of subdivision 3, paragraph 
531.3 	(a), clause (1).
531.4 		Subd. 5.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
531.5 	one-half feet from the base of the grave to the soil horizon.
531.6 	(b) Green burials must have three and one-half feet of cover.
531.7 		Subd. 6.Burial density. Green burial plots must be a maximum of 300 burials per acre 
531.8 	over a 100 year period.

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

531.10 	Sec. 11. [306.992] SCATTERING OF HYDROLYZED OR CREMATED REMAINS.
531.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
531.12 	the meanings given.
531.13 	(b) "Cremated remains" has the meaning given in section 149A.02, subdivision 7.
531.14 	(c) "Hydrolyzed remains" has the meaning given in section 149A.02, subdivision 24a.
531.15 		Subd. 2.Designated location. A municipality, town, or other cemetery governed by 
531.16 	this chapter that allows for scattering of hydrolyzed remains or cremated remains must 
531.17 	designate a location within the cemetery for the scattering of hydrolyzed remains or cremated 
531.18 	remains.

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

531.20 	Sec. 12. [307.14] GREEN BURIALS IN PRIVATE CEMETERIES.
531.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
531.22 	the meanings given.
531.23 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
531.24 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
531.25 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
531.26 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
531.27 	14.
531.28 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
532.1 		Subd. 2.Green burial requirements. A person who owns a cemetery governed by this 
532.2 	chapter that allows for green burials must comply with the requirements of this section.
532.3 		Subd. 3.Green burial plot locations. (a) Green burial plots must meet the following 
532.4 	criteria:
532.5 	(1) be set back 50 feet from property lines;
532.6 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
532.7 	level;
532.8 	(3) not be in standing water;
532.9 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
532.10 	supply well, or a shaft drilled into the ground meant to extract water; and
532.11 	(5) not be within flood-prone areas.
532.12 	(b) Green burial plot locations must be a certain distance from water sources. Green 
532.13 	burial plot locations must be:
532.14 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
532.15 	water;
532.16 	(2) 100 feet from other springs or watercourses; and
532.17 	(3) 33 feet from drainage systems.
532.18 		Subd. 4.Exception. A property with green burial plots in a designated location on or 
532.19 	before July 1, 2025, does not need to comply with the requirement of subdivision 3, paragraph 
532.20 	(a), clause (1).
532.21 		Subd. 5.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
532.22 	one-half feet from the base of the grave to the soil horizon.
532.23 	(b) Green burials must have three and one-half feet of cover.
532.24 		Subd. 6.Burial density. Green burial plots must be a maximum of 300 burials per acre 
532.25 	over a 100 year period.

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

532.27 	Sec. 13. [307.15] SCATTERING OF HYDROLYZED OR CREMATED REMAINS.
532.28 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
532.29 	the meanings given.
532.30 	(b) "Cremated remains" has the meaning given in section 149A.02, subdivision 7.
533.1 	(c) "Hydrolyzed remains" has the meaning given in section 149A.02, subdivision 24a.
533.2 		Subd. 2.Designated location. A person who owns a cemetery governed by this chapter 
533.3 	that allows for scattering of hydrolyzed remains or cremated remains must designate a 
533.4 	location within the cemetery for the scattering of hydrolyzed or cremated remains.

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

533.6 	Sec. 14. Laws 2024, chapter 127, article 67, section 6, is amended to read:

533.7
533.8	Sec. 6. COMMISSIONER OF MANAGEMENT 
AND BUDGET

533.9	Appropriations by Fund
	
533.10		2024
	2025
	
533.11	General
	-0-
	(232,000)
	
533.12	Health Care Access
	-0-
	100,000
	
533.13 	(a) Insulin safety net program. $100,000 in 
533.14 	fiscal year 2025 is from the health care access 
533.15 	fund for the insulin safety net program in 
533.16 	Minnesota Statutes, section 151.74.
533.17 	(b) Transfer. The commissioner must transfer 
533.18 	from the health care access fund to the insulin 
533.19 	safety net program repayment account in the 
533.20 	special revenue fund the amount certified by 
533.21 	the commissioner of administration under 
533.22 	Minnesota Statutes, section 151.741, 
533.23 	subdivision 5, paragraph (b), estimated to be 
533.24 	$100,000 in fiscal year 2025, for 
533.25 	reimbursement to manufacturers for insulin 
533.26 	dispensed under the insulin safety net program 
533.27 	in Minnesota Statutes, section 151.74. The 
533.28 	base for this transfer is estimated to be 
533.29 	$100,000 in fiscal year 2026 and $100,000 in 
533.30 	fiscal year 2027.
533.31 	(c) Base Level Adjustment. The health care 
533.32 	access fund base is increased by $100,000 in 
534.1 	fiscal year 2026 and increased by $100,000 in 
534.2 	fiscal year 2027.

534.3 	Sec. 15. TRANSFERS TO THE DEPARTMENT OF CHILDREN, YOUTH, AND 
534.4 	FAMILIES IN UNCODIFIED LAW.
 534.5 	Any power, duty, or responsibility given to the commissioner of human services or the 
534.6 	Department of Human Services in an uncodified section of Laws of Minnesota that is a part 
534.7 	of, necessary for, or in service of a power, duty, or responsibility transferred in Laws 2023, 
534.8 	chapter 70, article 12, section 30, or Laws 2024, chapter 80, transfers to the commissioner 
534.9 	of children, youth, and families or the Department of Children, Youth, and Families upon 
534.10 	the notice of transfer of the underlying power, duty, or responsibility required in Laws 2023, 
534.11 	chapter 70, article 12, section 30, subdivision 1. This section applies to uncodified sections 
534.12 	of Laws of Minnesota enacted before and after Laws 2023, chapter 70, including but not 
534.13 	limited to Laws 2024, chapter 117, sections 16 to 22.

534.14 	Sec. 16. OPERATION WITHIN EXISTING RESOURCES.
 534.15 	The board of directors of MNsure may, if necessary, operate and administer the premium 
534.16 	subsidy program established under Minnesota Statutes, section 62V.16, in nonconformance 
534.17 	with that section to the minimum extent necessary, using existing resources and available 
534.18 	processes until January 1, 2027.

534.19 	Sec. 17. DIRECTION TO THE COMMISSIONER OF CHILDREN, YOUTH, AND 
534.20 	FAMILIES; CHILD CARE AND DEVELOPMENT BLOCK GRANT 
534.21 	ALLOCATIONS.
 534.22 	(a) The commissioner of children, youth, and families shall allocate $1,000,000 in fiscal 
534.23 	year 2026 and $1,000,000 in fiscal year 2027 from the child care and development block 
534.24 	grant for child care improvement grants under Minnesota Statutes, section 142D.20, 
534.25 	subdivision 3, paragraph (a), clause (7). This is a onetime allocation.
534.26 	(b) The commissioner of children, youth, and families shall allocate $55,000 in fiscal 
534.27 	year 2026, $639,000 in fiscal year 2027, $1,639,000 in fiscal year 2028, and $1,638,000 in 
534.28 	fiscal year 2029 from the child care and development block grant for the development of a 
534.29 	statewide electronic attendance and record keeping system for the child care assistance 
534.30 	program.
534.31 	(c) The commissioner of children, youth, and families shall allocate $1,419,000 in fiscal 
534.32 	year 2026, $4,221,000 in fiscal year 2027, $4,791,000 in fiscal year 2028, and $4,885,000 
535.1 	in fiscal year 2029 from the child care and development block grant for MFIP child care 
535.2 	assistance to comply with federal requirements.
535.3 	(d) The commissioner of children, youth, and families shall allocate $2,662,000 in fiscal 
535.4 	year 2026, $5,479,000 in fiscal year 2027, $5,482,000 in fiscal year 2028, and $5,196,000 
535.5 	in fiscal year 2029 from the child care and development block grant for basic sliding fee 
535.6 	child care assistance to comply with federal requirements.

535.7 	Sec. 18. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
535.8 	FAMILIES; ALLOCATION OF TANF-ELIGIBLE GENERAL FUND 
535.9 	EXPENDITURES.
 535.10 	The commissioner of children, youth, and families must identify $4,000,000 in fiscal 
535.11 	year 2026, $4,000,000 in fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 
535.12 	in fiscal year 2029 of general fund expenditures attributable to eligible activities under 
535.13 	Minnesota Statutes, chapter 142G, and reduce general fund expenditures by the same 
535.14 	amounts. The commissioner must allocate $4,000,000 in fiscal year 2026, $4,000,000 in 
535.15 	fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 in fiscal year 2029 to 
535.16 	eligible activities under Minnesota Statutes, chapter 142G, to the TANF fund.

535.17 	Sec. 19. DIRECTION TO THE COMMISSIONERS OF HEALTH; HUMAN 
535.18 	SERVICES; AND CHILDREN, YOUTH, AND FAMILIES; REPORTS ON GRANT 
535.19 	FUNDING.
 535.20 	(a) Beginning January 15, 2026, and each odd-numbered year thereafter, the 
535.21 	commissioners of health; human services; and children, youth, and families must each 
535.22 	submit a report that contains an accurate list of all grants with money appropriated in the 
535.23 	preceding fiscal year and appropriated for the current biennium and the following biennium 
535.24 	that are administered by each commissioner and must include for each grant:
535.25 	(1) the name of the grant;
535.26 	(2) a description of the grant, including the eligibility criteria of grantees and the purpose 
535.27 	of the grant;
535.28 	(3) the amount appropriated in each fiscal year that supports the total appropriation for 
535.29 	each grant budget activity for the November forecast in each even-numbered year; and
535.30 	(4) the accurate and complete statutory or Minnesota Laws citation for the authority for 
535.31 	the grant.
536.1 	(b) The commissioner of health must submit the report in paragraph (a) to the chairs and 
536.2 	ranking minority members of the legislative committees with jurisdiction over health, and 
536.3 	to the director of the House Research Department, the chief fiscal analyst of the House 
536.4 	Fiscal Analysis Department, and the director and principal fiscal analyst of Senate Counsel, 
536.5 	Research and Fiscal Analysis.
536.6 	(c) The commissioner of human services must submit the report in paragraph (a) to the 
536.7 	chairs and ranking minority members of the legislative committees with jurisdiction over 
536.8 	human services, and to the director of the House Research Department, the chief fiscal 
536.9 	analyst of the House Fiscal Analysis Department, and the director and principal fiscal analyst 
536.10 	of Senate Counsel, Research and Fiscal Analysis.
536.11 	(d) The commissioner of children, youth, and families must submit the report in paragraph 
536.12 	(a) to the chairs and ranking minority members of the legislative committees with jurisdiction 
536.13 	over children, youth, and families, and to the director of the House Research Department, 
536.14 	the chief fiscal analyst of the House Fiscal Analysis Department, and the director and 
536.15 	principal fiscal analyst of Senate Counsel, Research and Fiscal Analysis.
536.16 	(e) The reports provided under this section expire on June 30, 2036.

536.17 	Sec. 20. REVISOR INSTRUCTION.
 536.18 	By February 1, 2026, the revisor of statutes must identify any changes to Minnesota 
536.19 	Statutes and Minnesota Rules necessary to reflect the expiration of the Minnesota premium 
536.20 	security plan and the premium security account. The revisor of statutes may submit to the 
536.21 	chairs and ranking minority members of the legislative committees with jurisdiction over 
536.22 	commerce finance and policy draft legislation with the statutory changes necessary to 
536.23 	implement the identified changes.

536.24 	Sec. 21. REPEALER.
 536.25 	Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; and 62E.25, are 
536.26 	repealed.

536.27 	EFFECTIVE DATE. This section is effective August 16, 2026.

536.28 	ARTICLE 22
536.29 	HUMAN SERVICES FORECAST ADJUSTMENTS

536.30	Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
 	
537.1 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
537.2 	shown in parentheses, are subtracted from the appropriations in Laws 2023, chapter 70, 
537.3 	article 20, from the general fund, or any other fund named, to the commissioner of human 
537.4 	services for the purposes specified in this article, to be available for the fiscal year indicated 
537.5 	for each purpose. The figure "2025" used in this article means that the appropriations listed 
537.6 	are available for the fiscal year ending June 30, 2025.

537.7				APPROPRIATIONS
	
537.8				Available for the Year
	
537.9				Ending June 30
	
537.10					2025

537.11
537.12	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

537.13	Subdivision 1.Total Appropriation
 	$
	114,527,000

537.14	Appropriations by Fund
	
537.15		2025
		
537.16	General
	136,895,000
		
537.17	Health Care Access
	(16,968,000)
		
537.18	Federal TANF
	(5,400,000)

537.19	Subd. 2.Forecasted Programs
 					
537.20
537.21
537.22
537.23	(a) Minnesota Family 
Investment Program 
(MFIP)/Diversionary Work 
Program (DWP)

537.24	Appropriations by Fund
	
537.25		2025
		
537.26	General
	(5,951,000)
		
537.27	Federal TANF
	(5,400,000)

537.28	(b) MFIP Child Care Assistance
		(62,336,000)

537.29	(c) General Assistance
		3,737,000

537.30	(d) Minnesota Supplemental Aid
		3,428,000

537.31	(e) Housing Support
		11,923,000

537.32	(f) MinnesotaCare
		(16,525,000)
			
537.33 	This appropriation is from the health care 
537.34 	access fund.

538.1	(g) Medical Assistance

538.2	Appropriations by Fund
	
538.3		2025
		
538.4	General
	59,692,000
		
538.5	Health Care Access
	(443,000)

538.6	(h) Behavioral Health Fund
		135,928,000

538.7	(i) Northstar Care for Children
		(9,526,000)

538.8 	Sec. 3. EFFECTIVE DATE.
 538.9 	Sections 1 and 2 are effective the day following final enactment.

538.10 	ARTICLE 23
538.11 	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS

538.12	Section 1. HUMAN SERVICES APPROPRIATIONS.
 	
538.13 	The sums shown in the columns marked "Appropriations" are appropriated to the 
538.14 	commissioner of human services for the purposes specified in this article. The appropriations 
538.15 	are from the general fund, or another named fund, and are available for the fiscal years 
538.16 	indicated for each purpose. The figures "2026" and "2027" used in this article mean that 
538.17 	the appropriations listed under them are available for the fiscal year ending June 30, 2026, 
538.18 	or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is 
538.19 	fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

538.20				APPROPRIATIONS
	
538.21				Available for the Year
	
538.22				Ending June 30
	
538.23					2026
		2027

538.24
538.25	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES
 	$
	3,270,735,000
	$
	3,436,450,000

538.26	Subdivision 1.Total Appropriation

538.27	Appropriations by Fund
	
538.28		2026
	2027
	
538.29	General
	1,954,922,000
	2,172,448,000
	
538.30
538.31	State Government 
Special Revenue
	4,273,000
	4,273,000
	
539.1	Health Care Access
	1,311,183,000
	1,259,372,000
	
539.2	Lottery Prize
	163,000
	163,000
	
539.3
539.4	Family and Medical 
Benefit Insurance
	194,000
	194,000
	
539.5 	The amounts that may be spent for each 
539.6 	purpose are specified in this article.

539.7	Subd. 2.Information Technology Appropriations
 					
539.8 	(a) IT appropriations generally. This 
539.9 	appropriation includes money for information 
539.10 	technology projects, services, and support. 
539.11 	Funding for information technology project 
539.12 	costs must be incorporated into the 
539.13 	service-level agreement and paid to Minnesota 
539.14 	IT Services by the Department of Human 
539.15 	Services under the rates and mechanism 
539.16 	specified in that agreement.
539.17 	(b) Receipts for systems project.
539.18 	Appropriations and federal receipts for 
539.19 	information technology systems projects for 
539.20 	MMIS and METS must be deposited in the 
539.21 	state systems account authorized in Minnesota 
539.22 	Statutes, section 256.014. Money appropriated 
539.23 	for information technology projects approved 
539.24 	by the commissioner of Minnesota IT 
539.25 	Services, funded by the legislature, and 
539.26 	approved by the commissioner of management 
539.27 	and budget may be transferred from one 
539.28 	project to another and from development to 
539.29 	operations as the commissioner of human 
539.30 	services deems necessary. Any unexpended 
539.31 	balance in the appropriation for these projects 
539.32 	does not cancel and is available for ongoing 
539.33 	development and operations.

539.34	Sec. 3. CENTRAL OFFICE; OPERATIONS

539.35	Subdivision 1.Total Appropriation
 	$
	167,050,000
	$
	172,312,000

540.1	Appropriations by Fund
	
540.2	General
	145,200,000
	148,935,000
	
540.3
540.4	State Government 
Special Revenue
	248,000
	248,000
	
540.5	Health Care Access
	21,408,000
	22,935,000
	
540.6
540.7	Family and Medical 
Benefits Insurance
	194,000
	194,000

540.8	Subd. 2.Administrative Recovery; Set-Aside
 					
540.9 	The commissioner may invoice local entities 
540.10 	through the SWIFT accounting system as an 
540.11 	alternative means to recover the actual cost of 
540.12 	administering the following provisions:
540.13 	(1) the statewide data management system 
540.14 	authorized in Minnesota Statutes, section 
540.15 	125A.744, subdivision 3;
540.16 	(2) repayment of the special revenue 
540.17 	maximization account as provided under 
540.18 	Minnesota Statutes, section 245.495, 
540.19 	paragraph (b);
540.20 	(3) repayment of the special revenue 
540.21 	maximization account as provided under 
540.22 	Minnesota Statutes, section 256B.0625, 
540.23 	subdivision 20, paragraph (k);
540.24 	(4) targeted case management under 
540.25 	Minnesota Statutes, section 256B.0924, 
540.26 	subdivision 6, paragraph (g);
540.27 	(5) residential services for children with severe 
540.28 	emotional disturbance under Minnesota 
540.29 	Statutes, section 256B.0945, subdivision 4, 
540.30 	paragraph (d); and
540.31 	(6) repayment of the special revenue 
540.32 	maximization account as provided under 
540.33 	Minnesota Statutes, section 256F.10, 
540.34 	subdivision 6, paragraph (b).

541.1	Subd. 3.Family and Medical Benefit Insurance
 					
541.2 	$194,000 in fiscal year 2026 and $194,000 in 
541.3 	fiscal year 2027 are from the family and 
541.4 	medical benefit insurance fund for systems 
541.5 	costs to administer Minnesota Statutes, chapter 
541.6 	268B.

541.7	Subd. 4.Base Level Adjustment
 					
541.8 	The general fund base for this section is 
541.9 	$149,621,000 in fiscal year 2028 and 
541.10 	$150,581,000 in fiscal year 2029.

541.11	Sec. 4. CENTRAL OFFICE; HEALTH CARE

541.12	Subdivision 1.Total Appropriation
 	$
	66,827,000
	$
	62,780,000

541.13	Appropriations by Fund
	
541.14	General
	38,659,000
	34,612,000
	
541.15	Health Care Access
	28,168,000
	28,168,000

541.16	Subd. 2.Base Level Adjustment
 					
541.17 	The general fund base for this section is 
541.18 	$34,639,000 in fiscal year 2028 and 
541.19 	$34,639,000 in fiscal year 2029.

541.20
541.21	Sec. 5. CENTRAL OFFICE; AGING AND 
DISABILITY SERVICES
 	$
	49,290,000
	$
	49,194,000

541.22	Appropriations by Fund
	
541.23	General
	49,165,000
	49,069,000
	
541.24
541.25	State Government 
Special Revenue
	125,000
	125,000

541.26
541.27	Sec. 6. CENTRAL OFFICE; BEHAVIORAL 
HEALTH

541.28	Subdivision 1.Total Appropriation
 	$
	22,563,000
	$
	22,159,000

541.29	Appropriations by Fund
	
541.30	General
	22,400,000
	21,996,000
	
541.31	Lottery Prize
	163,000
	163,000

542.1
542.2	Subd. 2.Psychiatric Residential Treatment 
Facility Report
 					
542.3 	$288,000 in fiscal year 2026 is from the 
542.4 	general fund for the development of the 
542.5 	psychiatric residential treatment facility report 
542.6 	and proposed legislation. This is a onetime 
542.7 	appropriation and is available until June 30, 
542.8 	2027.

542.9542.10
	Subd. 3.Online Behavioral Health Program 
Locator
 					
542.11 	(a) $959,000 in fiscal year 2026 and $959,000 
542.12 	in fiscal year 2027 are from the general fund 
542.13 	for an online behavioral health program 
542.14 	locator.
542.15 	(b) Any vendor selected to administer the 
542.16 	online behavioral health program locator under 
542.17 	paragraph (a) must be based in Minnesota. 
542.18 	Notwithstanding section 25, this paragraph 
542.19 	does not expire.

542.20
542.21	Sec. 7. CENTRAL OFFICE; HOMELESSNESS, 
HOUSING, AND SUPPORT SERVICES
 	$
	7,065,000
	$
	6,421,000

542.22
542.23	Sec. 8. CENTRAL OFFICE; OFFICE OF 
INSPECTOR GENERAL

542.24	Subdivision 1.Total Appropriation
 	$
	36,262,000
	$
	37,456,000

542.25	Appropriations by Fund
	
542.26	General
	31,421,000
	32,615,000
	
542.27
542.28	State Government 
Special Revenue
	3,900,000
	3,900,000
	
542.29	Health Care Access
	941,000
	941,000

542.30	Subd. 2.Base Level Adjustment
 					
542.31 	The general fund base for this section is 
542.32 	$32,671,000 in fiscal year 2028 and 
542.33 	$32,617,000 in fiscal year 2029.

542.34
542.35	Sec. 9. FORECASTED PROGRAMS; 
GENERAL ASSISTANCE
 	$
	84,138,000
	$
	86,462,000
	
543.1 	Emergency General Assistance
543.2 	(a) The amount appropriated for emergency 
543.3 	general assistance is up to $6,729,812 in fiscal 
543.4 	year 2026 and up to $6,729,812 in fiscal year 
543.5 	2027.
543.6 	(b) Money to counties for emergency general 
543.7 	assistance shall be allocated by the 
543.8 	commissioner using the allocation method 
543.9 	under Minnesota Statutes, section 256D.06, 
543.10 	subdivision 2, paragraph (c).

543.11
543.12
543.13	Sec. 10. FORECASTED PROGRAMS; 
MINNESOTA SUPPLEMENTAL 
ASSISTANCE
 	$
	67,113,000
	$
	69,089,000

543.14
543.15	Sec. 11. FORECASTED PROGRAMS; 
HOUSING SUPPORT
 	$
	269,258,000
	$
	279,703,000

543.16
543.17	Sec. 12. FORECASTED PROGRAMS; 
MINNESOTACARE
 	$
	106,426,000
	$
	170,050,000
	
543.18 	This appropriation is from the health care 
543.19 	access fund.

543.20
543.21	Sec. 13. FORECASTED PROGRAMS; 
MEDICAL ASSISTANCE
 	$
	2,138,140,000
	$
	2,222,830,000

543.22	Appropriations by Fund
	
543.23	General
	987,365,000
	1,189,017,000
	
543.24	Health Care Access
	1,150,775,000
	1,033,813,000
	
543.25 	The health care access fund base for this 
543.26 	section is $1,005,182,000 in fiscal year 2028 
543.27 	and $1,007,298,000 in fiscal year 2029.

543.28
543.29	Sec. 14. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICES GRANTS
 	$
	5,655,000
	$
	5,655,000

543.30
543.31	Sec. 15. GRANT PROGRAMS; REFUGEE 
SERVICES GRANTS
 	$
	100,000
	$
	100,000

543.32
543.33	Sec. 16. GRANT PROGRAMS; HEALTH 
CARE GRANTS
 	$
	8,176,000
	$
	8,176,000

544.1	Appropriations by Fund
	
544.2	General
	4,711,000
	4,711,000
	
544.3	Health Care Access
	3,465,000
	3,465,000

544.4
544.5	Sec. 17. GRANT PROGRAMS; DISABILITIES 
GRANTS
 	$
	(2,220,000)
	$
	(2,220,000)

544.6
544.7	Sec. 18. GRANT PROGRAMS; HOUSING AND 
SUPPORT SERVICES GRANTS
 	$
	89,570,000
	$
	92,911,000

544.8
544.9	Subdivision 1.Family Supportive Housing Grant 
Program
 					
544.10 	$700,000 in fiscal year 2026 is for the family 
544.11 	supportive housing grant program. This is a 
544.12 	onetime appropriation and is available until 
544.13 	June 30, 2027.

544.14
544.15	Subd. 2.Grant for Catholic Charities Homeless 
Elders Program
 					
544.16 	$959,000 in fiscal year 2026 is for a grant to 
544.17 	Catholic Charities of St. Paul and Minneapolis 
544.18 	for the homeless elders program that helps 
544.19 	homeless, isolated, and low-income older 
544.20 	adults to move into stable housing. This is a 
544.21 	onetime appropriation and is available until 
544.22 	June 30, 2027.

544.23
544.24	Sec. 19. GRANT PROGRAMS; ADULT 
MENTAL HEALTH GRANTS
 	$
	110,977,000
	$
	110,977,000
	
544.25 	Early Episode of Bipolar Disorder Grants.
544.26 	$125,000 in fiscal year 2026 and $125,000 in 
544.27 	fiscal year 2027 are for early episode of 
544.28 	bipolar disorder grants under Minnesota 
544.29 	Statutes, section 245.4905.

544.30
544.31	Sec. 20. GRANT PROGRAMS; CHILD 
MENTAL HEALTH GRANTS
 	$
	37,625,000
	$
	35,675,000

544.32
544.33	Subdivision 1.Grant to Mental Health 
Collaboration Hub Innovation Pilot Program
 					
544.34 	$750,000 in fiscal year 2026 is for a grant to 
544.35 	the Mental Health Collaboration Hub for the 
545.1 	Mental Health Collaboration Hub innovation 
545.2 	pilot program. This is a onetime appropriation 
545.3 	and is available until June 30, 2027.

545.4
545.5	Subd. 2.Psychiatric Residential Treatment 
Start-Up and Capacity-Building Grants
 					
545.6 	$200,000 in fiscal year 2026 is for a grant to 
545.7 	Clay County under Minnesota Statutes, section 
545.8 	256B.0941, subdivision 5, for a new 18-bed 
545.9 	psychiatric residential treatment facility in 
545.10 	Clay County. This is a onetime appropriation 
545.11 	and is available until June 30, 2029.

545.12
545.13	Subd. 3.Grant to Clay County for Psychiatric 
Residential Treatment Facility
 					
545.14 	$1,000,000 in fiscal year 2026 is for a grant 
545.15 	to Clay County for the purchase of equipment 
545.16 	and final redesign and remodeling for the 
545.17 	conversion of the West Central Regional 
545.18 	Juvenile Center nonsecure unit into an 18-bed 
545.19 	psychiatric residential treatment facility for 
545.20 	persons younger than 21 years of age, under 
545.21 	Minnesota Statutes, section 256B.0941. This 
545.22 	is a onetime appropriation.

545.23
545.24	Subd. 4.School-Linked Behavioral Health 
Grants
 					
545.25 	$22,576,000 in fiscal year 2026 and 
545.26 	$22,576,000 in fiscal year 2027 are from the 
545.27 	general fund for school-linked behavioral 
545.28 	health grants under Minnesota Statutes, section 
545.29 	245.4901.

545.30	Sec. 21. GRANT PROGRAMS; HIV GRANTS
 	$
	6,720,000
	$
	6,720,000
	
545.31 	Grants to Community-Based HIV/AIDS 
545.32 	Support Services Providers. $4,500,000 in 
545.33 	fiscal year 2026 and $4,500,000 in fiscal year 
545.34 	2027 are for grants to community-based 
545.35 	HIV/AIDS support services providers.

546.1 	Sec. 22. TRANSFERS.
 546.2 		Subdivision 1.Grants. The commissioner of human services, with the advance approval 
546.3 	of the commissioner of management and budget, may transfer unencumbered appropriation 
546.4 	balances for the biennium ending June 30, 2027, within fiscal years among general assistance, 
546.5 	medical assistance, MinnesotaCare, the Minnesota supplemental aid program, the housing 
546.6 	support program, and the entitlement portion of the behavioral health fund between fiscal 
546.7 	years of the biennium. The commissioner shall report to the chairs and ranking minority 
546.8 	members of the legislative committees with jurisdiction over health and human services 
546.9 	quarterly about transfers made under this subdivision.
546.10 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
546.11 	may be transferred within the Department of Human Services as the commissioner deems 
546.12 	necessary, with the advance approval of the commissioner of management and budget. The 
546.13 	commissioner shall report to the chairs and ranking minority members of the legislative 
546.14 	committees with jurisdiction over health and human services finance quarterly about transfers 
546.15 	made under this section.
546.16 		Subd. 3.Temporary authority for interagency transfers with Department of 
546.17 	Children, Youth, and Families. Beginning July 1, 2025, and until September 30, 2025, 
546.18 	administrative money may be transferred between the Department of Human Services and 
546.19 	Department of Children, Youth, and Families as the commissioners deem necessary, with 
546.20 	the advance approval of the commissioner of management and budget. The commissioners 
546.21 	shall report to the chairs and ranking minority members of the legislative committees with 
546.22 	jurisdiction over children and families quarterly about transfers made under this section.

546.23 	Sec. 23. CANCELLATIONS.
 546.24 		Subdivision 1.School-linked behavioral health grants. $3,000,000 of the fiscal year 
546.25 	2025 general fund appropriation in Laws 2024, chapter 127, article 67, section 2, subdivision 
546.26 	9, paragraph (a), is canceled to the general fund.
546.27 		Subd. 2.New American legal, social services, and long-term care workforce grant 
546.28 	program. $7,000,000 of the fiscal year 2024 general fund appropriation in Laws 2023, 
546.29 	chapter 70, article 20, section 2, subdivision 25, is canceled to the general fund.
546.30 		Subd. 3.Mobile crisis grants. $1,672,000 of the fiscal year 2025 general fund 
546.31 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 29, paragraph (e), 
546.32 	is canceled to the general fund.
547.1 		Subd. 4.Child mental health grants. $250,000 of the fiscal year 2025 general fund 
547.2 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 30, is canceled to 
547.3 	the general fund.
547.4 		Subd. 5.Emergency medical assistance legal referral costs. $100,000 of the 2025 
547.5 	general fund appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 26, 
547.6 	is canceled to the general fund.
547.7 		Subd. 6.Grants to navigators. $800,000 of the fiscal year 2024 health care access fund 
547.8 	appropriation in Laws 2023, chapter 22, section 4, subdivision 2, is canceled to the health 
547.9 	care access fund.
547.10 		Subd. 7.Mille Lacs Band of Ojibwe American Indian child welfare 
547.11 	initiative. $5,294,000 of the fiscal year 2025 general fund appropriation in Laws 2023, 
547.12 	chapter 70, article 20, section 2, subdivision 22, paragraph (b), is canceled to the general 
547.13 	fund.
547.14 		Subd. 8.Transition grant program. $293,000 of the fiscal year 2024 general fund 
547.15 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 20, paragraph (b), 
547.16 	is canceled to the general fund.
547.17 		Subd. 9.Grant to administer pool of qualified individuals for assessments. $250,000 
547.18 	of the fiscal year 2025 general fund appropriation in Laws 2023, chapter 70, article 20, 
547.19 	section 2, subdivision 22, paragraph (k), is canceled to the general fund.
547.20 		Subd. 10.IT systems improvements for children and families. $10,000,000 of the 
547.21 	fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, article 20, section 2, 
547.22 	subdivision 4, paragraph (g), is canceled to the general fund.

547.23 	EFFECTIVE DATE. This section is effective the day following final enactment or 
547.24 	retroactively from June 30, 2025, whichever is earlier.

547.25 	Sec. 24. GRANT ADMINISTRATION COSTS.
 547.26 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
547.27 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

547.28 	Sec. 25. EXPIRATION OF UNCODIFIED LANGUAGE.
 547.29 	All uncodified language contained in this article expires June 30, 2027, unless a different 
547.30 	expiration date is explicit or an appropriation is made available beyond June 30, 2027.

548.1 	Sec. 26. Laws 2023, chapter 70, article 20, section 2, subdivision 30, is amended to read:

548.2
548.3	Subd. 30.Grant Programs; Child Mental Health 
Grants
 		44,487,000
		37,934,000
37,734,000
	
548.4 	(a) Psychiatric residential treatment facility 
548.5 	start-up grants. $1,000,000 in fiscal year 
548.6 	2024 and $1,000,000 $800,000 in fiscal year 
548.7 	2025 are for psychiatric residential treatment 
548.8 	facility start-up grants under Minnesota 
548.9 	Statutes, section 256B.0941, subdivision 5. 
548.10 	This is a onetime appropriation and is 
548.11 	available until June 30, 2027.
548.12 	(b) African American Child Wellness 
548.13 	Institute. $2,000,000 in fiscal year 2024 is 
548.14 	for a grant to the African American Child 
548.15 	Wellness Institute to provide culturally 
548.16 	specific mental health and substance use 
548.17 	disorder services under Minnesota Statutes, 
548.18 	section 245.0961. This is a onetime 
548.19 	appropriation and is available until June 30, 
548.20 	2027.
548.21 	(c) Base level adjustment. The general fund 
548.22 	base is $34,648,000 in fiscal year 2026 and 
548.23 	$34,648,000 in fiscal year 2027.

548.24 	ARTICLE 24
548.25 	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS

548.26	Section 1. CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS.
 	
548.27 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
548.28 	and for the purposes specified in this article. The appropriations are from the general fund, 
548.29 	or another named fund, and are available for the fiscal years indicated for each purpose. 
548.30 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
548.31 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
548.32 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
548.33 	is fiscal years 2026 and 2027.

549.1				APPROPRIATIONS
	
549.2				Available for the Year
	
549.3				Ending June 30
	
549.4					2026
		2027

549.5
549.6	Sec. 2. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES
 	$
	1,353,351,000
	$
	1,419,413,000

549.7	Appropriations by Fund
	
549.8		2026
	2027
	
549.9	General
	1,049,362,000
	1,094,962,000
	
549.10
549.11	State Government 
Special Revenue
	732,000
	732,000
	
549.12	Federal TANF
	302,921,000
	323,383,000
	
549.13
549.14	Family and Medical 
Benefit Insurance
	336,000
	336,000
	
549.15 	The amounts that may be spent for each 
549.16 	purpose are specified in the following sections.

549.17	Sec. 3. TANF MAINTENANCE OF EFFORT

549.18	Subdivision 1.Nonfederal Expenditures
 					
549.19 	The commissioner shall ensure that sufficient 
549.20 	qualified nonfederal expenditures are made 
549.21 	each year to meet the state's maintenance of 
549.22 	effort requirements of the TANF block grant 
549.23 	specified under Code of Federal Regulations, 
549.24 	title 45, section 263.1. In order to meet these 
549.25 	basic TANF maintenance of effort 
549.26 	requirements, the commissioner may report 
549.27 	as TANF maintenance of effort expenditures 
549.28 	only nonfederal money expended for allowable 
549.29 	activities listed in the following clauses:
549.30 	(1) MFIP cash, diversionary work program, 
549.31 	and food assistance benefits under Minnesota 
549.32 	Statutes, chapter 142G;
550.1 	(2) the child care assistance programs under 
550.2 	Minnesota Statutes, sections 142E.04 and 
550.3 	142E.08, and county child care administrative 
550.4 	costs under Minnesota Statutes, section 
550.5 	142E.02, subdivision 9;
550.6 	(3) state and county MFIP administrative costs 
550.7 	under Minnesota Statutes, chapters 142G and 
550.8 	256K;
550.9 	(4) state, county, and Tribal MFIP 
550.10 	employment services under Minnesota 
550.11 	Statutes, chapters 142G and 256K;
550.12 	(5) expenditures made on behalf of legal 
550.13 	noncitizen MFIP recipients who qualify for 
550.14 	the MinnesotaCare program under Minnesota 
550.15 	Statutes, chapter 256L;
550.16 	(6) qualifying working family credit 
550.17 	expenditures under Minnesota Statutes, section 
550.18 	290.0671, and child tax credit expenditures 
550.19 	under Minnesota Statutes, section 290.0661;
550.20 	(7) qualifying Minnesota education credit 
550.21 	expenditures under Minnesota Statutes, section 
550.22 	290.0674; and
550.23 	(8) qualifying Head Start expenditures under 
550.24 	Minnesota Statutes, section 142D.12.

550.25	Subd. 2.Nonfederal Expenditures; Reporting
 					
550.26 	For the activities listed in subdivision 1, 
550.27 	clauses (2) to (8), the commissioner may 
550.28 	report only expenditures that are excluded 
550.29 	from the definition of assistance under Code 
550.30 	of Federal Regulations, title 45, section 
550.31 	260.31.

551.1	Subd. 3.Supplemental Expenditures
 					
551.2 	The commissioner may supplement the 
551.3 	maintenance of effort claim with working 
551.4 	family credit expenditures or other qualified 
551.5 	expenditures to the extent such expenditures 
551.6 	are otherwise available after considering the 
551.7 	expenditures allowed in this section.

551.8	Subd. 4.Reduction of Appropriations; Exception
 					
551.9 	The requirement in Minnesota Statutes, section 
551.10 	142A.06, subdivision 3, that federal grants or 
551.11 	aids secured or obtained under that subdivision 
551.12 	be used to reduce any direct appropriations 
551.13 	provided by law does not apply if the grants 
551.14 	or aids are federal TANF funds.

551.15	Subd. 5.IT Appropriations Generally
 					
551.16 	This appropriation includes funds for 
551.17 	information technology projects, services, and 
551.18 	support. Funding for information technology 
551.19 	project costs must be incorporated into the 
551.20 	service level agreement and paid to Minnesota 
551.21 	IT Services by the Department of Children, 
551.22 	Youth, and Families under the rates and 
551.23 	mechanism specified in that agreement.

551.24	Subd. 6.Receipts for Systems Project
 					
551.25 	Appropriations and federal receipts for 
551.26 	information technology systems projects for 
551.27 	MAXIS, PRISM, ISDS, and SSIS must be 
551.28 	deposited in the state systems account 
551.29 	authorized in Minnesota Statutes, section 
551.30 	142A.04. Money appropriated for information 
551.31 	technology projects approved by the 
551.32 	commissioner of Minnesota IT Services, 
551.33 	funded by the legislature, and approved by the 
551.34 	commissioner of management and budget may 
552.1 	be transferred from one project to another and 
552.2 	from development to operations as the 
552.3 	commissioner of children, youth, and families 
552.4 	considers necessary. Any unexpended balance 
552.5 	in the appropriation for these projects does not 
552.6 	cancel and is available for ongoing 
552.7 	development and operations.

552.8
552.9	Subd. 7.Federal SNAP Education and Training 
Grants
 					
552.10 	Federal funds available during fiscal years 
552.11 	2026 and 2027 for Supplemental Nutrition 
552.12 	Assistance Program Education and Training 
552.13 	and SNAP Quality Control Performance 
552.14 	Bonus grants are appropriated to the 
552.15 	commissioner of human services for the 
552.16 	purposes allowable under the terms of the 
552.17 	federal award. This subdivision is effective 
552.18 	the day following final enactment.

552.19
552.20
552.21	Sec. 4. OPERATIONS AND 
ADMINISTRATION; AGENCY-WIDE 
SUPPORTS

552.22	Subdivision 1.Total Appropriation
 	$
	110,319,000
	$
	103,807,000

552.23	Appropriations by Fund
	
552.24		2026
	2027
	
552.25	General
	109,151,000
	102,639,000
	
552.26
552.27	State Government 
Special Revenue
	732,000
	732,000
	
552.28	Federal TANF
	100,000
	100,000
	
552.29
552.30	Family and Medical 
Benefit Insurance
	336,000
	336,000

552.31	Subd. 2.Information Technology
 					
552.32 	$10,000,000 in fiscal year 2026 is from the 
552.33 	general fund for information technology 
552.34 	improvements to SSIS. This is a onetime 
552.35 	appropriation.

553.1	Subd. 3.Child Welfare Fiscal Analysis
 					
553.2 	$250,000 in fiscal year 2026 is from the 
553.3 	general fund to contract with a third-party 
553.4 	consultant to conduct an independent fiscal 
553.5 	analysis of the child welfare system in 
553.6 	Minnesota. This is a onetime appropriation 
553.7 	and is available until June 30, 2029.

553.8	Subd. 4.Family and Medical Benefit Insurance
 					
553.9 	$336,000 in fiscal year 2026 and $336,000 in 
553.10 	fiscal year 2027 are from the family and 
553.11 	medical benefit insurance fund for systems 
553.12 	costs to administer Minnesota Statutes, chapter 
553.13 	268B.

553.14	Subd. 5.Base Level Adjustment
 					
553.15 	The general fund base for this section is 
553.16 	$102,534,000 in fiscal year 2028 and 
553.17 	$102,172,000 in fiscal year 2029.

553.18
553.19
553.20	Sec. 5. OPERATIONS AND 
ADMINISTRATION; CHILD SAFETY AND 
PERMANENCY
 	$
	17,232,000
	$
	16,945,000

553.21
553.22	Sec. 6. OPERATIONS AND 
ADMINISTRATION; EARLY CHILDHOOD
 	$
	17,166,000
	$
	12,698,000

553.23
553.24	Subdivision 1.Child Care Attendance and 
Record-Keeping System
 					
553.25 	$5,500,000 in fiscal year 2026 and $1,000,000 
553.26 	in fiscal year 2027 are to develop a statewide 
553.27 	electronic attendance and record-keeping 
553.28 	system for the child care assistance program. 
553.29 	This is a onetime appropriation.

553.30	Subd. 2.Base Level Adjustment
 					
553.31 	The general fund base for this section is 
553.32 	$11,698,000 in fiscal year 2028 and 
553.33 	$11,698,000 in fiscal year 2029.

554.1
554.2
554.3	Sec. 7. OPERATIONS AND 
ADMINISTRATION; ECONOMIC 
OPPORTUNITY AND YOUTH SERVICES
 	$
	4,182,000
	$
	3,646,000

554.4
554.5	Subdivision 1.Scan of and Report on 
Out-of-School and Youth Programming
 					
554.6 	$402,000 in fiscal year 2026 is to conduct the 
554.7 	scan of and prepare the out-of-school and 
554.8 	youth programming report. This is a onetime 
554.9 	appropriation.

554.10	Subd. 2.Base Level Adjustment
 					
554.11 	The general fund base for this section is 
554.12 	$3,562,000 in fiscal year 2028 and $3,562,000 
554.13 	in fiscal year 2029.

554.14
554.15	Sec. 8. OPERATIONS AND 
ADMINISTRATION; FAMILY WELL-BEING
 	$
	14,147,000
	$
	14,147,000

554.16	Appropriations by Fund
	
554.17		2026
	2027
	
554.18	General
	10,471,000
	10,471,000
	
554.19	Federal TANF
	3,676,000
	3,676,000

554.20
554.21	Sec. 9. FORECASTED PROGRAMS; 
MFIP/DWP
 	$
	230,473,000
	$
	268,167,000

554.22	Appropriations by Fund
	
554.23		2026
	2027
	
554.24	General
	99,272,000
	116,504,000
	
554.25	Federal TANF
	131,201,000
	151,663,000

554.26
554.27	Sec. 10. FORECASTED PROGRAMS; MFIP 
CHILD CARE ASSISTANCE
 	$
	100,244,000
	$
	137,333,000

554.28
554.29	Sec. 11. FORECASTED PROGRAMS; 
NORTHSTAR CARE FOR CHILDREN
 	$
	110,214,000
	$
	116,160,000

554.30
554.31	Sec. 12. GRANT PROGRAMS; SUPPORT 
SERVICES GRANTS
 	$
	111,359,000
	$
	111,359,000

554.32	Appropriations by Fund
	
554.33		2026
	2027
	
554.34	General
	14,908,000
	14,908,000
	
554.35	Federal TANF
	96,451,000
	96,451,000

555.1
555.2
555.3	Sec. 13. GRANT PROGRAMS; BASIC 
SLIDING FEE CHILD ASSISTANCE CARE 
GRANTS
 	$
	137,768,000
	$
	135,212,000

555.4
555.5	Sec. 14. GRANT PROGRAMS; CHILD CARE 
DEVELOPMENT GRANTS
 	$
	139,120,000
	$
	138,819,000

555.6
555.7	Subdivision 1.St. Cloud Area School District 
Preschool Programs Grant
 					
555.8 	$301,000 in fiscal year 2026 is for a grant to 
555.9 	Independent School District No. 742 for the 
555.10 	Preschool 4 Success program operated with 
555.11 	the Rotary Club of St. Cloud. This is a onetime 
555.12 	appropriation and is available until June 30, 
555.13 	2027.

555.14
555.15	Subd. 2.Great Start Compensation Support 
Payments
 					
555.16 	$129,887,000 in fiscal year 2026 and 
555.17 	$129,887,000 in fiscal year 2027 are for the 
555.18 	Great Start Compensation Support Payments 
555.19 	under Minnesota Statutes, section 142D.21.

555.20
555.21	Sec. 15. GRANT PROGRAMS; CHILD 
SUPPORT ENFORCEMENT GRANTS
 	$
	50,000
	$
	50,000

555.22
555.23	Sec. 16. GRANT PROGRAMS; CHILDREN'S 
SERVICES GRANTS
 	$
	41,704,000
	$
	41,705,000

555.24
555.25	Subdivision 1.Restorative Practices Initiatives 
Grants
 					
555.26 	The base funding for restorative practices 
555.27 	initiatives grants under Minnesota Statutes, 
555.28 	section 142A.76, subdivision 5, is reduced by 
555.29 	$1,500,000 in fiscal year 2026 and $1,500,000 
555.30 	in fiscal year 2027.

555.31
555.32	Subd. 2.Fostering Connections to Success and 
Increasing Adoptions Act
 					
555.33 	The commissioner shall allocate funds from 
555.34 	the state's savings from the Fostering 
555.35 	Connections to Success and Increasing 
555.36 	Adoptions Act's expanded eligibility for Title 
556.1 	IV-E adoption assistance as required in 
556.2 	Minnesota Statutes, section 142A.61, and as 
556.3 	allowable under federal law. Additional 
556.4 	savings to the state as a result of the Fostering 
556.5 	Connections to Success and Increasing 
556.6 	Adoptions Act's expanded eligibility for Title 
556.7 	IV-E adoption assistance is for postadoption, 
556.8 	foster care, adoption, and kinship services, 
556.9 	including a parent-to-parent support network 
556.10 	and as allowable under federal law.

556.11
556.12	Sec. 17. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICE GRANTS
 	$
	87,984,000
	$
	87,984,000

556.13
556.14	Sec. 18. GRANT PROGRAMS; CHILD AND 
ECONOMIC SUPPORT GRANTS
 	$
	18,167,000
	$
	18,159,000

556.15	Subdivision 1.Regional Food Bank Grants
 					
556.16 	$2,980,000 in fiscal year 2026 and $2,977,000 
556.17 	in fiscal year 2027 are for regional food bank 
556.18 	grants under Minnesota Statutes, section 
556.19 	142F.16. This is a onetime appropriation and 
556.20 	is available until June 30, 2027.

556.21	Subd. 2.Minnesota Food Shelf Programs
 					
556.22 	$2,000,000 in fiscal year 2026 and $2,000,000 
556.23 	in fiscal year 2027 are for food shelf programs 
556.24 	grants under Minnesota Statutes, section 
556.25 	142F.14. This is a onetime appropriation and 
556.26 	is available until June 30, 2027.

556.27	Subd. 3.Prepared Meals Food Relief Grants
 					
556.28 	$971,000 in fiscal year 2026 and $966,000 in 
556.29 	fiscal year 2027 are for prepared meals food 
556.30 	relief grants under Minnesota Statutes, section 
556.31 	142F.141. This is a onetime appropriation and 
556.32 	is available until June 30, 2027.

557.1	Subd. 4.Base Level Adjustment
 					
557.2 	The general fund base for this section is 
557.3 	$12,216,000 in fiscal year 2028 and 
557.4 	$12,216,000 in fiscal year 2029.

557.5
557.6	Sec. 19. GRANT PROGRAMS; EARLY 
LEARNING GRANTS
 	$
	132,838,000
	$
	132,838,000

557.7
557.8	Subdivision 1.Early Childhood Literacy 
Programs
 					
557.9 	The base funding for early childhood literacy 
557.10 	programs under Minnesota Statutes, section 
557.11 	142D.12, subdivision 3, is reduced by 
557.12 	$7,950,000 in fiscal year 2026 and $7,950,000 
557.13 	in fiscal year 2027.

557.14	Subd. 2.Grants for Early Learning Scholarships
 					
557.15 	$97,290,000 in fiscal year 2026 and 
557.16 	$97,290,000 in fiscal year 2027 are from the 
557.17 	general fund for early learning scholarships 
557.18 	grants under Minnesota Statutes, section 
557.19 	142D.25.

557.20	Subd. 3.Head Start Program Grants
 					
557.21 	$34,398,000 in fiscal year 2026 and 
557.22 	$34,398,000 in fiscal year 2027 are from the 
557.23 	general fund for head start program grants 
557.24 	under Minnesota Statutes, section 142D.12.

557.25	Subd. 4.School Readiness Plus Program Grants
 					
557.26 	$900,000 in fiscal year 2026 and $900,000 in 
557.27 	fiscal year 2027 are from the general fund for 
557.28 	school readiness plus program grants under 
557.29 	Minnesota Statutes, section 142D.07.

557.30	Subd. 5.Reach Out and Read Minnesota Grant
 					
557.31 	$250,000 in fiscal year 2026 and $250,000 in 
557.32 	fiscal year 2027 are for a grant to Reach Out 
557.33 	and Read Minnesota to establish a statewide 
558.1 	plan that encourages early childhood 
558.2 	development through a network of health care 
558.3 	clinics under Laws 2023, chapter 54, section 
558.4 	20, subdivision 20.

558.5
558.6	Sec. 20. GRANT PROGRAMS; YOUTH 
SERVICES GRANTS
 	$
	8,891,000
	$
	8,891,000

558.7
558.8	Subdivision 1.Grants-in-Aid to Youth 
Intervention Programs
 					
558.9 	$6,036,000 in fiscal year 2026 and $6,036,000 
558.10 	in fiscal year 2027 are for grants to youth 
558.11 	intervention programs under Minnesota 
558.12 	Statutes, section 142A.43, subdivision 1.

558.13
558.14	Subd. 2.Youth Intervention Programs 
Association Grant
 					
558.15 	Notwithstanding the percentage requirement 
558.16 	under Minnesota Statutes, section 142A.43, 
558.17 	subdivision 3, $355,000 in fiscal year 2026 
558.18 	and $355,000 in fiscal year 2027 are for a 
558.19 	grant to the Minnesota Youth Intervention 
558.20 	Programs Association for collaboration, 
558.21 	program development, professional 
558.22 	development training, technical assistance, 
558.23 	tracking, and analyzing and reporting outcome 
558.24 	data for the community-based grantees of the 
558.25 	program.

558.26	Subd. 3.Office of Restorative Practices
 					
558.27 	$2,500,000 in fiscal year 2026 and $2,500,000 
558.28 	in fiscal year 2027 are from the general fund 
558.29 	for the Office of Restorative Practices under 
558.30 	Minnesota Statutes, section 142A.76.

558.31	Sec. 21. TECHNICAL ACTIVITIES
 	$
	71,493,000
	$
	71,493,000
	
558.32 	This appropriation is from the federal TANF 
558.33 	fund.

559.1 	Sec. 22. TRANSFERS.
 559.2 		Subdivision 1.Programs and grants. The commissioner of children, youth, and families, 
559.3 	with the advance approval of the commissioner of management and budget, may transfer 
559.4 	unencumbered appropriation balances for the biennium ending June 30, 2027, within fiscal 
559.5 	years among MFIP; MFIP child care assistance under Minnesota Statutes, section 142E.08; 
559.6 	the entitlement portion of Northstar Care for Children under Minnesota Statutes, sections 
559.7 	142A.60 to 142A.612; and early childhood family education under Minnesota Statutes, 
559.8 	section 142D.11, between fiscal years of the biennium. The commissioner shall inform the 
559.9 	chairs and ranking minority members of the legislative committees with jurisdiction over 
559.10 	children and families finance and policy quarterly about transfers made under this 
559.11 	subdivision.
559.12 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
559.13 	may be transferred within the Department of Children, Youth, and Families as the 
559.14 	commissioner deems necessary, with the advance approval of the commissioner of 
559.15 	management and budget. The commissioner shall report to the chairs and ranking minority 
559.16 	members of the legislative committees with jurisdiction over children and families finance 
559.17 	quarterly about transfers made under this subdivision.
559.18 		Subd. 3.Temporary authority for interagency transfers with Department of Human 
559.19 	Services. Beginning July 1, 2025, and until September 30, 2025, administrative money may 
559.20 	be transferred between the Department of Children, Youth, and Families and the Department 
559.21 	of Human Services or the Department of Education as the commissioners deem necessary, 
559.22 	with the advance approval of the commissioner of management and budget. The 
559.23 	commissioners shall report to the chairs and ranking minority members of the legislative 
559.24 	committees with jurisdiction over children and families finance and policy quarterly about 
559.25 	transfers made under this subdivision.

559.26 	Sec. 23. CANCELLATION; ESTABLISHING THE DEPARTMENT OF CHILDREN, 
559.27 	YOUTH, AND FAMILIES.
 559.28 	$8,500,000 of the fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, 
559.29 	article 20, section 12, paragraph (b), is canceled to the general fund.

559.30 	EFFECTIVE DATE. This section is effective the day following final enactment or 
559.31 	retroactively from June 30, 2025, whichever is earlier.

560.1 	Sec. 24. GRANT ADMINISTRATION COSTS.
 560.2 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
560.3 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

560.4 	Sec. 25. EXPIRATION OF UNCODIFIED LANGUAGE.
 560.5 	All uncodified language contained in this article expires June 30, 2027, unless a different 
560.6 	expiration date is explicit or an appropriation is made available beyond June 30, 2027.

560.7 	ARTICLE 25
560.8 	DEPARTMENT OF HEALTH APPROPRIATIONS

560.9	Section 1. HEALTH APPROPRIATIONS.
 	
560.10 	The sums shown in the columns marked "Appropriations" are appropriated to the 
560.11 	commissioner of health for the purposes specified in this article. The appropriations are 
560.12 	from the general fund, or another named fund, and are available for the fiscal years indicated 
560.13 	for each purpose. The figures "2026" and "2027" used in this article mean that the 
560.14 	appropriations listed under them are available for the fiscal year ending June 30, 2026, or 
560.15 	June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal 
560.16 	year 2027. "The biennium" is fiscal years 2026 and 2027.

560.17				APPROPRIATIONS
	
560.18				Available for the Year
	
560.19				Ending June 30
	
560.20					2026
		2027

560.21	Sec. 2. COMMISSIONER OF HEALTH
 	$
	434,610,000
	$
	430,946,000

560.22	Appropriations by Fund
	
560.23		2026
	2027
	
560.24	General
	271,895,000
	269,645,000
	
560.25
560.26	State Government 
Special Revenue
	96,237,000
	95,769,000
	
560.27	Health Care Access
	54,765,000
	53,819,000
	
560.28	Federal TANF
	11,713,000
	11,713,000
	
560.29 	The amounts that may be spent for each 
560.30 	purpose are specified in this article.

560.31	Sec. 3. HEALTH IMPROVEMENT

561.1	Subdivision 1.Total Appropriation
 	$
	291,627,000
	$
	286,428,000

561.2	Appropriations by Fund
	
561.3	General
	217,302,000
	214,495,000
	
561.4
561.5	State Government 
Special Revenue
	9,258,000
	9,258,000
	
561.6	Health Care Access
	53,354,000
	50,962,000
	
561.7	Federal TANF
	11,713,000
	11,713,000

561.8
561.9	Subd. 2.Substance Use Treatment, Recovery, 
and Prevention Grants
 					
561.10 	$3,000,000 in fiscal year 2026 and $3,000,000 
561.11 	in fiscal year 2027 are from the general fund 
561.12 	for substance use treatment, recovery, and 
561.13 	prevention grants under Minnesota Statutes, 
561.14 	section 342.72.

561.15
561.16	Subd. 3.Local and Tribal Public Health 
Cannabis Grants
 					
561.17 	$7,756,000 in fiscal year 2026 and $7,756,000 
561.18 	in fiscal year 2027 are from the general fund 
561.19 	for grants under Minnesota Statutes, section 
561.20 	144.197, subdivision 4.

561.21
561.22
561.23	Subd. 4.Cannabis and Substance Misuse 
Prevention and Education Programs; Youth 
Prevention and Education Program
 					
561.24 	$4,534,000 in fiscal year 2026 and $4,470,000 
561.25 	in fiscal year 2027 are from the general fund 
561.26 	for the youth prevention and education 
561.27 	program under the cannabis and substance 
561.28 	misuse prevention and education programs 
561.29 	under Minnesota Statutes, section 144.197, 
561.30 	subdivision 1.

561.31
561.32
561.33
561.34
561.35	Subd. 5.Cannabis and Substance Misuse 
Prevention and Education Programs; Prevention 
and Education Program for Pregnant and 
Breastfeeding Individuals and Individuals Who 
May Become Pregnant
 					
561.36 	$1,834,000 in fiscal year 2026 and $1,834,000 
561.37 	in fiscal year 2027 are from the general fund 
562.1 	for the prevention and education program for 
562.2 	pregnant and breastfeeding individuals and 
562.3 	individuals who may become pregnant under 
562.4 	the cannabis and substance misuse prevention 
562.5 	and education programs under Minnesota 
562.6 	Statutes, section 144.197, subdivision 2. The 
562.7 	base for this subdivision is $721,000 in fiscal 
562.8 	year 2028 and $721,000 in fiscal year 2029.

562.9562.10
	Subd. 6.Cannabis Data Collection and Biennial 
Reports
 					
562.11 	$493,000 in fiscal year 2026 and $493,000 in 
562.12 	fiscal year 2027 are from the general fund for 
562.13 	cannabis data collection and biennial reports 
562.14 	under Minnesota Statutes, section 144.196.

562.15	Subd. 7.Administration of Expungement Orders
 					
562.16 	$71,000 in fiscal year 2026 and $71,000 in 
562.17 	fiscal year 2027 are from the general fund for 
562.18 	the administration of expungement orders 
562.19 	under Laws 2023, chapter 63, article 9, section 
562.20 	10, subdivision 6.

562.21
562.22	Subd. 8.Grant for "Treat Yourself First" 
Campaign
 					
562.23 	$237,000 is from the general fund for a grant 
562.24 	to the Minnesota Medical Association for the 
562.25 	"Treat Yourself First" campaign. The 
562.26 	campaign must be an awareness and education 
562.27 	campaign focused on burnout and well-being 
562.28 	of health care workers designed to:
562.29 	(1) reduce the stigma of receiving mental 
562.30 	health services;
562.31 	(2) encourage health care workers who are 
562.32 	experiencing workplace-related fatigue to 
562.33 	receive the care they need; and
562.34 	(3) normalize the process for seeking help.
563.1 	The campaign must be targeted to health care 
563.2 	professionals, including but not limited to 
563.3 	physicians, nurses, dentists, pharmacists, and 
563.4 	other members of the health care team. The 
563.5 	campaign must include resources for health 
563.6 	care professionals seeking help to address 
563.7 	burnout and well-being. This is a onetime 
563.8 	appropriation and is available until June 30, 
563.9 	2029.

563.10
563.11	Subd. 9.Grant for African American-Focused 
Homeplace Program
 					
563.12 	$475,000 in fiscal year 2026 is from the 
563.13 	general fund for a grant to the Birth Justice 
563.14 	Collaborative to strengthen and implement the 
563.15 	current model of the African 
563.16 	American-focused Homeplace in Hennepin 
563.17 	County. This is a onetime appropriation and 
563.18 	is available until June 30, 2029.

563.19	Subd. 10.TANF Appropriations
 					
563.20 	TANF funds must be used as follows:
563.21 	(1) $3,579,000 in fiscal year 2026 and 
563.22 	$3,579,000 in fiscal year 2027 are from the 
563.23 	TANF fund for home visiting and nutritional 
563.24 	services listed under Minnesota Statutes, 
563.25 	section 145.882, subdivision 7, clauses (6) and 
563.26 	(7). Funds must be distributed to community 
563.27 	health boards according to Minnesota Statutes, 
563.28 	section 145A.131, subdivision 1;
563.29 	(2) $2,000,000 in fiscal year 2026 and 
563.30 	$2,000,000 in fiscal year 2027 are from the 
563.31 	TANF fund for decreasing racial and ethnic 
563.32 	disparities in infant mortality rates under 
563.33 	Minnesota Statutes, section 145.928, 
563.34 	subdivision 7;
564.1 	(3) $4,978,000 in fiscal year 2026 and 
564.2 	$4,978,000 in fiscal year 2027 are from the 
564.3 	TANF fund for the family home visiting grant 
564.4 	program under Minnesota Statutes, section 
564.5 	145A.17. Of these amounts, $4,000,000 in 
564.6 	fiscal year 2026 and $4,000,000 in fiscal year 
564.7 	2027 must be distributed to community health 
564.8 	boards under Minnesota Statutes, section 
564.9 	145A.131, subdivision 1; and $978,000 in 
564.10 	fiscal year 2026 and $978,000 in fiscal year 
564.11 	2027 must be distributed to Tribal 
564.12 	governments under Minnesota Statutes, section 
564.13 	145A.14, subdivision 2a;
564.14 	(4) $1,156,000 in fiscal year 2026 and 
564.15 	$1,156,000 in fiscal year 2027 are from the 
564.16 	TANF fund for sexual and reproductive health 
564.17 	services grants under Minnesota Statutes, 
564.18 	section 145.925; and
564.19 	(5) the commissioner may use up to 6.23 
564.20 	percent of the funds appropriated from the 
564.21 	TANF fund each fiscal year to conduct the 
564.22 	ongoing evaluations required under Minnesota 
564.23 	Statutes, section 145A.17, subdivision 7, and 
564.24 	training and technical assistance required 
564.25 	under Minnesota Statutes, section 145A.17, 
564.26 	subdivisions 4 and 5.

564.27	Subd. 11.TANF Carryforward
 					
564.28 	Any unexpended balance of the TANF 
564.29 	appropriation in the first year does not cancel 
564.30 	but is available in the second year.

564.31	Subd. 12.Base Level Adjustment
 					
564.32 	The general fund base for this section is 
564.33 	$213,562,000 in fiscal year 2028 and 
564.34 	$213,562,000 in fiscal year 2029.

565.1	Sec. 4. HEALTH PROTECTION

565.2	Subdivision 1.Total Appropriation
 	$
	121,207,000
	$
	120,269,000

565.3	Appropriations by Fund
	
565.4	General
	34,228,000
	33,758,000
	
565.5
565.6	State Government 
Special Revenue
	86,979,000
	86,511,000

565.7
565.8	Subd. 2.Speech Language Pathology Assistants 
Fee Adjustment
 					
565.9 	$95,000 in fiscal year 2026 is from the general 
565.10 	fund for onetime costs incurred in fiscal year 
565.11 	2025 to implement Minnesota Statutes, 
565.12 	sections 148.511 to 148.5198.

565.13
565.14	Subd. 3.Infectious Disease Prevention, Early 
Detection, and Outbreak Response
 					
565.15 	$1,300,000 in fiscal year 2026 and $1,300,000 
565.16 	in fiscal year 2027 are from the general fund 
565.17 	for infectious disease prevention, early 
565.18 	detection, and outbreak response activities 
565.19 	under Minnesota Statutes, section 144.05, 
565.20 	subdivision 1.

565.21	Subd. 4.Asbestos Abatement
 					
565.22 	$176,000 in fiscal year 2026 and $176,000 in 
565.23 	fiscal year 2027 are from the state government 
565.24 	special revenue fund for asbestos abatement 
565.25 	under Minnesota Statutes, section 326.75.

565.26	Subd. 5.Food, Pools, and Lodging Services
 					
565.27 	$5,483,000 in fiscal year 2026 and $5,483,000 
565.28 	in fiscal year 2027 are from the state 
565.29 	government special revenue fund for food, 
565.30 	pools, and lodging services program activities 
565.31 	under Minnesota Statutes, chapters 144, 157, 
565.32 	and 327.

566.1	Subd. 6.Public Water Supply
 					
566.2 	$7,827,000 in fiscal year 2026 and $7,827,000 
566.3 	in fiscal year 2027 are from the state 
566.4 	government special revenue fund to administer 
566.5 	the drinking water protection program, 
566.6 	including implementing the Safe Drinking 
566.7 	Water Act and providing services to regulated 
566.8 	parties, partners, and the public under 
566.9 	Minnesota Statutes, sections 144.381 to 
566.10 	144.383.

566.11	Subd. 7.Radioactive Materials
 					
566.12 	$200,000 in fiscal year 2026 and $200,000 in 
566.13 	fiscal year 2027 are from the state government 
566.14 	special revenue fund for radioactive materials 
566.15 	program activities under Minnesota Statutes, 
566.16 	section 144.1205.

566.17	Subd. 8.Ionizing Radiation
 					
566.18 	$993,000 in fiscal year 2026 and $828,000 in 
566.19 	fiscal year 2027 are from the state government 
566.20 	special revenue fund to administer new 
566.21 	regulatory activities for x-ray service 
566.22 	providers, ongoing inspections of licensed 
566.23 	facilities, and data analysis for program 
566.24 	planning and implementation under Minnesota 
566.25 	Statutes, section 144.121.

566.26	Subd. 9.Engineering Plan Reviews
 					
566.27 	$224,000 in fiscal year 2026 and $224,000 in 
566.28 	fiscal year 2027 are from the state government 
566.29 	special revenue fund to conduct engineering 
566.30 	plan reviews under Minnesota Statutes, section 
566.31 	144.554.

567.1
567.2	Subd. 10.Spoken Language Health Care 
Interpreter Workgroup
 					
567.3 	$186,000 in fiscal year 2026 and $49,000 in 
567.4 	fiscal year 2027 are from the state government 
567.5 	special revenue fund for a request for 
567.6 	proposals for the spoken language health care 
567.7 	interpreter work group. This is a onetime 
567.8 	appropriation and is available until June 30, 
567.9 	2029.

567.10	Subd. 11.Base Level Adjustments
 					
567.11 	The state government special revenue fund 
567.12 	base is $86,794,000 in fiscal year 2028 and 
567.13 	$86,806,000 in fiscal year 2029.

567.14	Sec. 5. HEALTH OPERATIONS
 	$
	21,776,000
	$
	24,249,000

567.15	Appropriations by Fund
	
567.16	General
	20,365,000
	21,392,000
	
567.17	Health Care Access
	1,411,000
	2,857,000

567.18 	Sec. 6. TRANSFERS.
 567.19 	Positions, salary money, and nonsalary administrative money may be transferred within 
567.20 	the Department of Health as the commissioner deems necessary with the advance approval 
567.21 	of the commissioner of management and budget. The commissioner shall report to the chairs 
567.22 	and ranking minority members of the legislative committees with jurisdiction over health 
567.23 	finance quarterly about transfers made under this section.

567.24 	Sec. 7. INDIRECT COSTS NOT TO FUND PROGRAMS.
 567.25 	The commissioner of health shall not use indirect cost allocations to pay for the 
567.26 	operational costs of any program for which the commissioner is responsible.

567.27 	Sec. 8. GRANT ADMINISTRATION COSTS.
 567.28 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
567.29 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

568.1 	Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
 568.2 	All uncodified language contained in this article expires on June 30, 2027, unless a 
568.3 	different expiration date is explicit or an appropriation is made available after June 30, 2027.

568.4 	ARTICLE 26
568.5 	OTHER AGENCY APPROPRIATIONS

568.6	Section 1. OTHER AGENCY APPROPRIATIONS.
 	
568.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
568.8 	and for the purposes specified in this article. The appropriations are from the general fund, 
568.9 	or another named fund, and are available for the fiscal years indicated for each purpose. 
568.10 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
568.11 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
568.12 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
568.13 	is fiscal years 2026 and 2027.

568.14				APPROPRIATIONS
	
568.15				Available for the Year
	
568.16				Ending June 30
	
568.17					2026
		2027

568.18	Sec. 2. HEALTH-RELATED BOARDS

568.19	Subdivision 1.Total Appropriation
 	$
	35,374,000
	$
	35,255,000

568.20	Appropriations by Fund
	
568.21		2026
	2027
	
568.22	General
	1,387,000
	1,387,000
	
568.23
568.24	State Government 
Special Revenue
	33,987,000
	33,868,000
	
568.25 	These amounts are appropriated from the state 
568.26 	government special revenue fund, unless 
568.27 	specified otherwise, for the purposes specified 
568.28 	in the following subdivisions.

568.29
568.30	Subd. 2.Board of Behavioral Health and 
Therapy
 		1,289,000
		1,289,000

568.31	Subd. 3.Board of Chiropractic Examiners
 		890,000
		890,000

569.1	Subd. 4.Board of Dentistry
 		4,308,000
		4,310,000
	
569.2 	(a) Administrative services unit; operating 
569.3 	costs. Of this appropriation, $1,936,000 in 
569.4 	fiscal year 2026 and $1,936,000 in fiscal year 
569.5 	2027 are for operating costs of the 
569.6 	administrative services unit. The 
569.7 	administrative services unit may receive and 
569.8 	expend reimbursements for services it 
569.9 	performs for other agencies.
569.10 	(b) Administrative services unit; volunteer 
569.11 	health care provider program. Of this 
569.12 	appropriation, $150,000 in fiscal year 2026 
569.13 	and $150,000 in fiscal year 2027 are to pay 
569.14 	for medical professional liability coverage 
569.15 	required under Minnesota Statutes, section 
569.16 	214.40.
569.17 	(c) Administrative services unit; retirement 
569.18 	costs. Of this appropriation, $237,000 in fiscal 
569.19 	year 2026 and $237,000 in fiscal year 2027 
569.20 	are for the administrative services unit to pay 
569.21 	for the retirement costs of health-related board 
569.22 	employees. This funding may be transferred 
569.23 	to the health board incurring retirement costs. 
569.24 	Any board that has an unexpended balance for 
569.25 	an amount transferred under this paragraph 
569.26 	shall transfer the unexpended amount to the 
569.27 	administrative services unit. If the amount 
569.28 	appropriated in the first year of the biennium 
569.29 	is not sufficient, the amount from the second 
569.30 	year of the biennium is available.
569.31 	(d) Administrative services unit; contested 
569.32 	cases and other legal proceedings. Of this 
569.33 	appropriation, $200,000 in fiscal year 2026 
569.34 	and $200,000 in fiscal year 2027 are for costs 
569.35 	of contested case hearings and other 
570.1 	unanticipated costs of legal proceedings 
570.2 	involving health-related boards under this 
570.3 	section. Upon certification by a health-related 
570.4 	board to the administrative services unit that 
570.5 	unanticipated costs for legal proceedings will 
570.6 	be incurred and that available appropriations 
570.7 	are insufficient to pay for the unanticipated 
570.8 	costs for that board, the administrative services 
570.9 	unit is authorized to transfer money from this 
570.10 	appropriation to the board for payment of costs 
570.11 	for contested case hearings and other 
570.12 	unanticipated costs of legal proceedings with 
570.13 	the approval of the commissioner of 
570.14 	management and budget. The commissioner 
570.15 	of management and budget must require any 
570.16 	board that has an unexpended balance or an 
570.17 	amount transferred under this paragraph to 
570.18 	transfer the unexpended amount to the 
570.19 	administrative services unit to be deposited in 
570.20 	the state government special revenue fund.

570.21
570.22	Subd. 5.Board of Dietetics and Nutrition 
Practice
 		277,000
		277,000

570.23
570.24	Subd. 6.Board of Executives for Long-term 
Services and Supports
 		736,000
		736,000

570.25	Subd. 7.Board of Marriage and Family Therapy
 		457,000
		457,000

570.26	Subd. 8.Board of Medical Practice
 		6,196,000
		6,141,000
	
570.27 	Base Level Adjustment. The state 
570.28 	government special revenue fund base for this 
570.29 	subdivision is $6,121,000 in fiscal year 2028 
570.30 	and $6,121,000 in fiscal year 2029.

570.31	Subd. 9.Board of Nursing
 		6,275,000
		6,275,000

570.32
570.33	Subd. 10.Board of Occupational Therapy 
Practice
 		560,000
		560,000

570.34	Subd. 11.Board of Optometry
 		280,000
		280,000

570.35	Subd. 12.Board of Pharmacy

571.1	Appropriations by Fund
	
571.2	General
	1,387,000
	1,387,000
	
571.3
571.4	State Government 
Special Revenue
	6,280,000
	6,280,000
	
571.5 	Medication Repository Program. $900,000 
571.6 	in fiscal year 2026 and $900,000 in fiscal year 
571.7 	2027 are from the general fund for the 
571.8 	medication repository program to purchase 
571.9 	prescription drugs under Minnesota Statutes, 
571.10 	section 151.555, subdivision 6, paragraph (g).

571.11	Subd. 13.Board of Physical Therapy
 		789,000
		789,000

571.12	Subd. 14.Board of Podiatric Medicine
 		257,000
		257,000

571.13	Subd. 15.Board of Psychology
 		2,781,000
		2,781,000
	
571.14 	Health Professional Service Program.
571.15 	$1,324,000 in fiscal year 2026 and $1,324,000 
571.16 	in fiscal year 2027 are for the health 
571.17 	professionals services program.

571.18	Subd. 16.Board of Social Work
 		2,068,000
		2,002,000

571.19	Subd. 17.Board of Veterinary Medicine
 		544,000
		544,000

571.20
571.21	Sec. 3. OFFICE OF EMERGENCY MEDICAL 
SERVICES
 	$
	25,613,000
	$
	6,048,000

571.22
571.23	Subdivision 1.Ambulance Service Training and 
Staffing Grant Program
 					
571.24 	$500,000 in fiscal year 2026 and $500,000 in 
571.25 	fiscal year 2027 are for the ambulance service 
571.26 	training and staffing grant program under 
571.27 	Minnesota Statutes, section 144E.38.

571.28	Subd. 2.EMR/EMT Education Reimbursement
 					
571.29 	$100,000 in fiscal year 2026 and $100,000 in 
571.30 	fiscal year 2027 are for EMR/EMT education 
571.31 	reimbursements under Minnesota Statutes, 
571.32 	section 144E.35.

572.1	Subd. 3.Emergency Ambulance Service Grants
 					
572.2 	$18,000,000 in fiscal year 2026 is for 
572.3 	emergency ambulance service grants. This is 
572.4 	a onetime appropriation and is available until 
572.5 	June 30, 2029.

572.6	Sec. 4. OMBUDSPERSON FOR FAMILIES
 	$
	792,000
	$
	808,000

572.7
572.8	Sec. 5. OMBUDSPERSON FOR AMERICAN 
INDIAN FAMILIES
 	$
	344,000
	$
	347,000

572.9572.10
	Sec. 6. RARE DISEASE ADVISORY 
COUNCIL
 	$
	674,000
	$
	679,000

572.11
572.12	Sec. 7. OFFICE OF THE FOSTER YOUTH 
OMBUDSPERSON
 	$
	1,012,000
	$
	1,025,000

572.13	Sec. 8. BOARD OF DIRECTORS OF MNSURE
 	$
	70,000
	$
	70,000

572.14	Sec. 9. COMMISSIONER OF EDUCATION
 	$
	7,950,000
	$
	7,950,000
	
572.15 	Early Childhood Literacy Programs.
572.16 	$7,950,000 in fiscal year 2026 and $7,950,000 
572.17 	in fiscal year 2027 are for early childhood 
572.18 	literacy grants under Minnesota Statutes, 
572.19 	section 142D.12, subdivision 3.

572.20 	Sec. 10. GRANT ADMINISTRATION COSTS.
 572.21 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
572.22 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

572.23 	Sec. 11. EXPIRATION OF UNCODIFIED LANGUAGE.
 572.24 	All uncodified language contained in this article expires June 30, 2027, unless a different 
572.25 	expiration date is explicit or an appropriation is made available after June 30, 2027.

572.26 	Sec. 12. Laws 2024, chapter 127, article 67, section 4, is amended to read:

572.27	Sec. 4. BOARD OF PHARMACY

572.28	Appropriations by Fund
	
572.29	General
	1,500,000
	-0-
	
572.30
572.31	State Government 
Special Revenue
	-0-
	27,000
	
573.1 	(a) Legal Costs. $1,500,000 in fiscal year 
573.2 	2024 is from the general fund for legal costs. 
573.3 	This is a onetime appropriation and is 
573.4 	available until June 30, 2027.
573.5 	(b) Base Level Adjustment. The state 
573.6 	government special revenue fund base is 
573.7 	increased by $27,000 in fiscal year 2026 and 
573.8 	increased by $27,000 in fiscal year 2027.

573.9 	EFFECTIVE DATE. This section is effective June 30, 2025.

	ARTICLE 1	DEPARTMENT OF HEALTH FINANCE........	Page.Ln 3.28	
	ARTICLE 2	DEPARTMENT OF HEALTH POLICY........	Page.Ln 68.11	
	ARTICLE 3	HEALTH LICENSING BOARDS........	Page.Ln 101.12	
	ARTICLE 4	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY........	Page.Ln 173.25	
	ARTICLE 5	PHARMACY BENEFITS........	Page.Ln 191.1	
	ARTICLE 6	HUMAN SERVICES HEALTH CARE FINANCE........	Page.Ln 209.1	
	ARTICLE 7	HUMAN SERVICES HEALTH CARE POLICY........	Page.Ln 261.11	
	ARTICLE 8	BEHAVIORAL HEALTH........	Page.Ln 264.20	
	ARTICLE 9	BEHAVIORAL HEALTH POLICY........	Page.Ln 279.24	
	ARTICLE 10	CHILDREN'S MENTAL HEALTH TERMINOLOGY........	Page.Ln 306.21	
	ARTICLE 11	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION........	Page.Ln 394.1	
	ARTICLE 12	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES........	Page.Ln 401.15	
	ARTICLE 13	BACKGROUND STUDIES........	Page.Ln 409.18	
	ARTICLE 14	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY........	Page.Ln 411.17	
	ARTICLE 15	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL POLICY........	Page.Ln 430.18	
	ARTICLE 16	ECONOMIC SUPPORTS........	Page.Ln 448.1	
	ARTICLE 17	CHILD PROTECTION AND WELFARE........	Page.Ln 452.11	
	ARTICLE 18	CHILD PROTECTION AND WELFARE POLICY........	Page.Ln 463.1	
	ARTICLE 19	EARLY CARE AND LEARNING........	Page.Ln 497.27	
	ARTICLE 20	CHILDREN AND FAMILIES LICENSING POLICY........	Page.Ln 509.9	
	ARTICLE 21	MISCELLANEOUS........	Page.Ln 523.16	
	ARTICLE 22	HUMAN SERVICES FORECAST ADJUSTMENTS........	Page.Ln 536.28	
	ARTICLE 23	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS........	Page.Ln 538.10	
	ARTICLE 24	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS........	Page.Ln 548.24	
	ARTICLE 25	DEPARTMENT OF HEALTH APPROPRIATIONS........	Page.Ln 560.7	
	ARTICLE 26	OTHER AGENCY APPROPRIATIONS........	Page.Ln 568.4	

APPENDIX 

Repealed Minnesota Statutes: ueh2435-1 

62E.21 DEFINITIONS.Subdivision 1.Application. 
For the purposes of sections 62E.21 to 62E.25, the terms defined in this section have the meanings given them. 

Subd. 2.Affordable Care Act. 
"Affordable Care Act" means the federal act as defined in section 62A.011, subdivision 1a. 

Subd. 3.Attachment point. 
"Attachment point" means an amount as provided in section 62E.23, subdivision 2, paragraph (b). 

Subd. 4.Benefit year. 
"Benefit year" means the calendar year for which an eligible health carrier provides coverage through an individual health plan. 

Subd. 5.Board. 
"Board" means the board of directors of the Minnesota Comprehensive Health Association created under section 62E.10. 

Subd. 6.Coinsurance rate. 
"Coinsurance rate" means the rate as provided in section 62E.23, subdivision 2, paragraph (c). 

Subd. 7.Commissioner. 
"Commissioner" means the commissioner of commerce. 

Subd. 8.Eligible health carrier. 
"Eligible health carrier" means all of the following that offer individual health plans and incur claims costs for an individual enrollee's covered benefits in the applicable benefit year: 

(1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of accident and sickness insurance as defined in section 62A.01; 

(2) a nonprofit health service plan corporation operating under chapter 62C; or 

(3) a health maintenance organization operating under chapter 62D. 

Subd. 9.Individual health plan. 
"Individual health plan" means a health plan as defined in section 62A.011, subdivision 4, that is not a grandfathered plan as defined in section 62A.011, subdivision 1b. 

Subd. 10.Individual market. 
"Individual market" has the meaning given in section 62A.011, subdivision 5. 

Subd. 11.Minnesota Comprehensive Health Association or association. 
"Minnesota Comprehensive Health Association" or "association" has the meaning given in section 62E.02, subdivision 14. 

Subd. 12.Minnesota premium security plan or plan. 
"Minnesota premium security plan" or "plan" means the state-based reinsurance program authorized under section 62E.23. 

Subd. 13.Payment parameters. 
"Payment parameters" means the attachment point, reinsurance cap, and coinsurance rate for the plan. 

Subd. 14.Reinsurance cap. 
"Reinsurance cap" means the threshold amount as provided in section 62E.23, subdivision 2, paragraph (d). 

Subd. 15.Reinsurance payments. 
"Reinsurance payments" means an amount paid by the association to an eligible health carrier under the plan. 

62E.22 DUTIES OF COMMISSIONER.
The commissioner shall require eligible health carriers to calculate the premium amount the eligible health carrier would have charged for the benefit year if the Minnesota premium security plan had not been established. The eligible health carrier must submit this information as part of its rate filing. The commissioner must consider this information as part of the rate review. 

62E.23 MINNESOTA PREMIUM SECURITY PLAN.Subdivision 1.Administration of plan. 
(a) The association is Minnesota's reinsurance entity to administer the state-based reinsurance program referred to as the Minnesota premium security plan. 

(b) The association may apply for any available federal funding for the plan. All funds received by or appropriated to the association shall be deposited in the premium security plan account in section 62E.25, subdivision 1. The association shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services and insurance within ten days of receiving any federal funds. 

(c) The association must collect or access data from an eligible health carrier that are necessary to determine reinsurance payments, according to the data requirements under subdivision 5, paragraph (c). 

(d) The board must not use any funds allocated to the plan for staff retreats, promotional giveaways, excessive executive compensation, or promotion of federal or state legislative or regulatory changes. 

(e) For each applicable benefit year, the association must notify eligible health carriers of reinsurance payments to be made for the applicable benefit year no later than June 30 of the year following the applicable benefit year. 

(f) On a quarterly basis during the applicable benefit year, the association must provide each eligible health carrier with the calculation of total reinsurance payment requests. 

(g) By August 15 of the year following the applicable benefit year, the association must disburse all applicable reinsurance payments to an eligible health carrier. 

Subd. 2.Payment parameters. 
(a) The board must design and adjust the payment parameters to ensure the payment parameters: 

(1) will stabilize or reduce premium rates in the individual market; 

(2) will increase participation in the individual market; 

(3) will improve access to health care providers and services for those in the individual market; 

(4) mitigate the impact high-risk individuals have on premium rates in the individual market; 

(5) take into account any federal funding available for the plan; and 

(6) take into account the total amount available to fund the plan. 

(b) The attachment point for the plan is the threshold amount for claims costs incurred by an eligible health carrier for an enrolled individual's covered benefits in a benefit year, beyond which the claims costs for benefits are eligible for reinsurance payments. The attachment point shall be set by the board at $50,000 or more, but not exceeding the reinsurance cap. 

(c) The coinsurance rate for the plan is the rate at which the association will reimburse an eligible health carrier for claims incurred for an enrolled individual's covered benefits in a benefit year above the attachment point and below the reinsurance cap. The coinsurance rate shall be set by the board at a rate between 50 and 80 percent. 

(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible health carrier for an enrolled individual's covered benefits, after which the claims costs for benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set by the board at $250,000 or less. 

(e) The board may adjust the payment parameters to the extent necessary to secure federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1, section 8. 

Subd. 3.Operation. 
(a) The board shall propose to the commissioner the payment parameters for the next benefit year by January 15 of the year before the applicable benefit year. The commissioner shall approve or reject the payment parameters no later than 14 days following the board's proposal. If the commissioner fails to approve or reject the payment parameters within 14 days following the board's proposal, the proposed payment parameters are final and effective. 

(b) If the amount in the premium security plan account in section 62E.25, subdivision 1, is not anticipated to be adequate to fully fund the approved payment parameters as of July 1 of the year before the applicable benefit year, the board, in consultation with the commissioner and the commissioner of management and budget, shall propose payment parameters within the available appropriations. The commissioner must permit an eligible health carrier to revise an applicable rate filing based on the final payment parameters for the next benefit year. 

(c) Notwithstanding paragraph (a), the payment parameters for benefit years 2023 through 2027 are: 

(1) an attachment point of $50,000; 

(2) a coinsurance rate of 80 percent; and 

(3) a reinsurance cap of $250,000. 

Subd. 4.Calculation of reinsurance payments. 
(a) Each reinsurance payment must be calculated with respect to an eligible health carrier's incurred claims costs for an individual enrollee's covered benefits in the applicable benefit year. If the claims costs do not exceed the attachment point, the reinsurance payment is $0. If the claims costs exceed the attachment point, the reinsurance payment shall be calculated as the product of the coinsurance rate and the lesser of: 

(1) the claims costs minus the attachment point; or 

(2) the reinsurance cap minus the attachment point. 

(b) The board must ensure that reinsurance payments made to eligible health carriers do not exceed the total amount paid by the eligible health carrier for any eligible claim. "Total amount paid of an eligible claim" means the amount paid by the eligible health carrier based upon the allowed amount less any deductible, coinsurance, or co-payment, as of the time the data are submitted or made accessible under subdivision 5, paragraph (c). 

Subd. 5.Eligible carrier requests for reinsurance payments. 
(a) An eligible health carrier may request reinsurance payments from the association when the eligible health carrier meets the requirements of this subdivision and subdivision 4. 

(b) An eligible health carrier must make requests for reinsurance payments in accordance with any requirements established by the board. 

(c) An eligible health carrier must provide the association with access to the data within the dedicated data environment established by the eligible health carrier under the federal risk adjustment program under United States Code, title 42, section 18063. Eligible health carriers must submit an attestation to the board asserting compliance with the dedicated data environments, data requirements, establishment and usage of masked enrollee identification numbers, and data submission deadlines. 

(d) An eligible health carrier must provide the access described in paragraph (c) for the applicable benefit year by April 30 of each year of the year following the end of the applicable benefit year. 

(e) An eligible health carrier must maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the requests for reinsurance payments made pursuant to this section for a period of at least six years. An eligible health carrier must also make those documents and records available upon request from the commissioner for purposes of verification, investigation, audit, or other review of reinsurance payment requests. 

(f) An eligible health carrier may follow the appeals procedure under section 62E.10, subdivision 2a. 

(g) The association may have an eligible health carrier audited to assess the health carrier's compliance with the requirements of this section. The eligible health carrier must ensure that its contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results in a proposed finding of material weakness or significant deficiency with respect to compliance with any requirement of this section, the eligible health carrier may provide a response to the proposed finding within 30 days. Within 30 days of the issuance of a final audit report that includes a finding of material weakness or significant deficiency, the eligible health carrier must: 

(1) provide a written corrective action plan to the association for approval; 

(2) implement the approved plan; and 

(3) provide the association with written documentation of the corrective action once taken. 

Subd. 6.Data. 
Government data of the association under this section are private data on individuals, or nonpublic data, as defined under section 13.02, subdivision 9 or 12. 

62E.24 ACCOUNTING, REPORTS, AND AUDITS OF THE ASSOCIATION.Subdivision 1.Accounting. 
The board must keep an accounting for each benefit year of all: 

(1) funds appropriated for reinsurance payments and administrative and operational expenses; 

(2) requests for reinsurance payments received from eligible health carriers; 

(3) reinsurance payments made to eligible health carriers; and 

(4) administrative and operational expenses incurred for the plan. 

Subd. 2.Reports. 
(a) The board must submit to the commissioner and to the chairs and ranking minority members of the legislative committees with jurisdiction over commerce and health and make available to the public quarterly reports on plan operations and an annual report summarizing the plan operations for each benefit year. All reports must be made public by posting the report on the Minnesota Comprehensive Health Association website. The annual summary must be made available by November 1 of the year following the applicable benefit year or 60 calendar days following the final disbursement of reinsurance payments for the applicable benefit year, whichever is later. 

(b) The reports must include information about: 

(1) the reinsurance parameters used; 

(2) the metal levels affected; 

(3) the number of claims payments estimated and submitted for payment per products offered on-exchange and off-exchange and per eligible health carrier; 

(4) the estimated reinsurance payments by plan type based on carrier-submitted templates; 

(5) funds appropriated for reinsurance payments and administrative and operational expenses for each year, including the federal and state contributions received, investment income, and any other revenue or funds received; 

(6) the total amount of reinsurance payments made to each eligible health carrier; and 

(7) administrative and operational expenses incurred for the plan, including the total amount incurred and as a percentage of the plan's operational budget. 

Subd. 3.Legislative auditor. 
The Minnesota premium security plan is subject to audit by the legislative auditor. The board must ensure that its contractors, subcontractors, or agents cooperate with the audit. 

Subd. 4.Independent external audit. 
(a) The board must engage and cooperate with an independent certified public accountant or CPA firm licensed or permitted under chapter 326A to perform an audit for each benefit year of the plan, in accordance with generally accepted auditing standards. The audit must at a minimum: 

(1) assess compliance with the requirements of sections 62E.21 to 62E.25; and 

(2) identify any material weaknesses or significant deficiencies and address manners in which to correct any such material weaknesses or deficiencies. 

(b) The board, after receiving the completed audit, must: 

(1) provide the commissioner the results of the audit; 

(2) identify to the commissioner any material weakness or significant deficiency identified in the audit and address in writing to the commissioner how the board intends to correct any such material weakness or significant deficiency in compliance with subdivision 5; and 

(3) make public the results of the audit, to the extent the audit contains government data that is public, including any material weakness or significant deficiency and how the board intends to correct the material weakness or significant deficiency, by posting the audit results on the Minnesota Comprehensive Health Association website and making the audit results otherwise available. 

Subd. 5.Actions on audit findings. 
(a) If an audit results in a finding of material weakness or significant deficiency with respect to compliance by the association with any requirement under sections 62E.21 to 62E.25, the board must: 

(1) provide a written corrective action plan to the commissioner for approval within 60 days of the completed audit; 

(2) implement the corrective action plan; and 

(3) provide the commissioner with written documentation of the corrective actions taken. 

(b) By December 1 of each year, the board must submit a report to the standing committees of the legislature having jurisdiction over health and human services and insurance regarding any finding of material weakness or significant deficiency found in an audit. 

62E.25 ACCOUNTS.Subdivision 1.Premium security plan account. 
The premium security plan account is created in the special revenue fund of the state treasury. Funds in the account are appropriated annually to the commissioner of commerce for grants to the Minnesota Comprehensive Health Association for the operational and administrative costs and reinsurance payments relating to the start-up and operation of the Minnesota premium security plan. Notwithstanding section 11A.20, all investment income and all investment losses attributable to the investment of the premium security plan account shall be credited to the premium security plan account. 

Subd. 2.Deposits. 
Except as provided in subdivision 3, funds received by the commissioner of commerce or other state agency pursuant to the state innovation waiver request in Laws 2017, chapter 13, article 1, section 8, shall be deposited in the premium security plan account in subdivision 1. 

Subd. 3.Basic health plan trust account. 
Funds received by the commissioner of commerce or other state agency pursuant to the state innovation waiver request in Laws 2017, chapter 13, article 1, section 8, that are attributable to the basic health program shall be deposited in the basic health plan trust account in the federal fund. 

62J.824 FACILITY FEE DISCLOSURE.
(a) Prior to the delivery of nonemergency services, a provider-based clinic that charges a facility fee shall provide notice to any patient, including patients served by telehealth as defined in section 62A.673, subdivision 2, paragraph (h), stating that the clinic is part of a hospital and the patient may receive a separate charge or billing for the facility component, which may result in a higher out-of-pocket expense. 

(b) Each health care facility must post prominently in locations easily accessible to and visible by patients, including on its website, a statement that the provider-based clinic is part of a hospital and the patient may receive a separate charge or billing for the facility, which may result in a higher out-of-pocket expense. 

(c) This section does not apply to laboratory services, imaging services, or other ancillary health services that are provided by staff who are not employed by the health care facility or clinic. 

(d) For purposes of this section: 

(1) "facility fee" means any separate charge or billing by a provider-based clinic in addition to a professional fee for physicians' services that is intended to cover building, electronic medical records systems, billing, and other administrative and operational expenses; and 

(2) "provider-based clinic" means the site of an off-campus clinic or provider office, located at least 250 yards from the main hospital buildings or as determined by the Centers for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144 or a health system that operates one or more hospitals licensed under chapter 144, and is primarily engaged in providing diagnostic and therapeutic care, including medical history, physical examinations, assessment of health status, and treatment monitoring. This definition does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, pharmacy, or educational services and does not include facilities designated as rural health clinics. 

62K.10 GEOGRAPHIC ACCESSIBILITY; PROVIDER NETWORK ADEQUACY.Subd. 3.Other health services. 
The maximum travel distance or time shall be the lesser of 60 miles or 60 minutes to the nearest provider of specialty physician services, ancillary services, specialized hospital services, and all other health services not listed in subdivision 2. 

103I.550 LIMITED PUMP, PITLESS, OR DUG WELL/DRIVE POINT CONTRACTOR.Subdivision 1.Limited pump or pitless license or certification. 
A person with a limited well/boring contractor's license or certification to install well pumps and pumping equipment; or a person with a limited well/boring contractor's license or certification to install, repair, and modify pitless units and pitless adapters, well casings above the pitless unit or pitless adapter, and well screens and well diameters, will be issued a combined license or certification to: (1) install well pumps and pumping equipment; and (2) install, repair, and modify pitless units and pitless adapters, well casings above the pitless unit or pitless adapter, well screens, and well diameters. 

Subd. 2.Limited dug well/drive point license or certification. 
A person with a limited well/boring contractor's license or certification to construct, repair, and seal drive point wells and dug wells will be issued a well contractor's license or certification. 

136A.29 POWERS; DUTIES.Subd. 4.Mutual agreement; staff, equipment, office space. 
By mutual agreement between the authority and the office, authority staff employees may also be members of the office staff. By mutual agreement, authority employees may be provided office space in the office of the Office of Higher Education, and said employees may make use of equipment, supplies, and office space, provided that the authority fully reimburses the office for salaries and for space, equipment, supplies, and materials used. In the absence of such mutual agreement between the authority and the office, the authority may maintain an office at such place or places as it may designate. 

138.912 HEALTHY EATING, HERE AT HOME.Subd. 7.Grocery inclusion. 
The commissioner of children, youth, and families must submit a waiver request to the federal United States Department of Agriculture seeking approval for the inclusion of Minnesota grocery stores in this program so that SNAP participants may use the vouchers for healthy produce at grocery stores. Grocery store participation is voluntary and a grocery store's associated administrative costs will not be reimbursed. 

148.108 FEES.Subd. 2.Annual renewal of inactive acupuncture registration. 
The annual renewal of an inactive acupuncture registration fee is $25. 

Subd. 3.Acupuncture reinstatement. 
The acupuncture reinstatement fee is $50. 

Subd. 4.Animal chiropractic. 
(a) Animal chiropractic registration fee is $125. 

(b) Animal chiropractic registration renewal fee is $75. 

(c) Animal chiropractic inactive renewal fee is $25. 

148.6402 DEFINITIONS.Subd. 22a.Limited license. 
"Limited license" means a license issued according to section 148.6425, subdivision 3, paragraph (c), to persons who for two years or more did not apply for a license after meeting the requirements in section 148.6408 or 148.6410 or who allowed their license to lapse for four years or more. 

148.6420 APPLICATION REQUIREMENTS.Subd. 2.Persons applying for licensure under section 148.6408 or 148.6410.  
Persons applying for licensure under section 148.6408 or 148.6410 must submit the materials required in subdivision 1 and the following: 

(1) a certificate of successful completion of the requirements in section 148.6408, subdivision 1, or 148.6410, subdivision 1; and 

(2) the applicant's test results from the examining agency, as evidence that the applicant received a qualifying score on a credentialing examination meeting the requirements of section 148.6408, subdivision 2, or 148.6410, subdivision 2. 

Subd. 3.Applicants certified by National Board for Certification in Occupational Therapy. 
An applicant who is certified by the National Board for Certification in Occupational Therapy must provide the materials required in subdivision 1 and the following: 

(1) verified documentation from the National Board for Certification in Occupational Therapy stating that the applicant is certified as an occupational therapist, registered or certified occupational therapy assistant, the date certification was granted, and the applicant's certification number. The document must also include a statement regarding disciplinary actions. The applicant is responsible for obtaining this documentation by sending a form provided by the board to the National Board for Certification in Occupational Therapy; and 

(2) a waiver authorizing the board to obtain access to the applicant's records maintained by the National Board for Certification in Occupational Therapy. 

Subd. 4.Applicants credentialed in another jurisdiction. 
In addition to providing the materials required in subdivision 1, an applicant credentialed in another jurisdiction must request that the appropriate government body in each jurisdiction in which the applicant holds or held an occupational therapy credential provide documentation to the board that verifies the applicant's credentials. Except as provided in section 148.6418, a license must not be issued until the board receives verification of each of the applicant's credentials. Each verification must include the applicant's name and date of birth, credential number and date of issuance, a statement regarding investigations pending and disciplinary actions taken or pending against the applicant, current status of the credential, and the terms under which the credential was issued. 

148.6423 LICENSURE RENEWAL.Subd. 4.License renewal cycle conversion. 
The license renewal cycle for occupational therapy licensees is converted to a two-year cycle where renewal is due on the last day of the licensee's month of birth. Conversion pursuant to this section begins January 1, 2021. This section governs license renewal procedures for licensees who were licensed before December 31, 2020. The conversion renewal cycle is the renewal cycle following the first license renewal after January 1, 2020. The conversion license period is the license period for the conversion renewal cycle. The conversion license period is between 13 and 24 months and ends on the last day of the licensee's month of birth in either 2022 or 2023, as described in subdivision 5. 

Subd. 5.Conversion of license renewal cycle for current licensees. 
For a licensee whose license is current as of December 31, 2020, the licensee's conversion license period begins on January 1, 2021, and ends on the last day of the licensee's month of birth in 2023, except that for licensees whose month of birth is January, February, March, April, May, or June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 2022. 

Subd. 7.Subsequent renewal cycles. 
After the licensee's conversion renewal cycle under subdivision 5 or 6, subsequent renewal cycles are biennial and begin on the first day of the month following the licensee's birth month. 

Subd. 8.Conversion period and fees. 
(a) A licensee who holds a license issued before January 1, 2021, and who renews that license pursuant to subdivision 5 or 6, must pay a renewal fee as required in this subdivision. 

(b) A licensee must be charged the biennial license fee listed in section 148.6445 for the conversion license period. 

(c) For a licensee whose conversion license period is 13 to 24 months, the first biennial license fee charged after the conversion license period must be adjusted to credit the excess fee payment made during the conversion license period. The credit is calculated by: 

(1) subtracting the number of months of the licensee's conversion license period from 24; and 

(2) multiplying the result of clause (1) by 1/24 of the biennial fee rounded up to the next dollar. 

(d) For a licensee whose conversion license period is 24 months, the first biennial license fee charged after the conversion license period must not be adjusted. 

(e) For the second and all subsequent license renewals made after the conversion license period, the licensee's biennial license fee is as listed in section 148.6445. 

Subd. 9.Expiration. 
Subdivisions 4, 5, 7, and 8 expire December 31, 2023. 

148.6425 RENEWAL OF LICENSURE; AFTER EXPIRATION DATE.Subd. 3.Licensure renewal four years or more after licensure expiration date. 
(a) An individual who requests licensure renewal four years or more after the licensure expiration date must submit the following: 

(1) a completed and signed application for licensure on forms provided by the board; 

(2) the renewal fee and the late fee required under section 148.6445 if renewal application is based on paragraph (b), clause (1), (2), or (3), or the renewal fee required under section 148.6445 if renewal application is based on paragraph (b), clause (4); 

(3) proof of having met the continuing education requirement in section 148.6443, subdivision 1, except the continuing education must be obtained in the two years immediately preceding application renewal; and 

(4) at the time of the next licensure renewal, proof of having met the continuing education requirement, which shall be prorated based on the number of months licensed during the two-year licensure period. 

(b) In addition to the requirements in paragraph (a), the applicant must submit proof of one of the following: 

(1) verified documentation of successful completion of 160 hours of supervised practice approved by the board as described in paragraph (c); 

(2) verified documentation of having achieved a qualifying score on the credentialing examination for occupational therapists or the credentialing examination for occupational therapy assistants administered within the past year; 

(3) documentation of having completed a combination of occupational therapy courses or an occupational therapy refresher program that contains both a theoretical and clinical component approved by the board. Only courses completed within one year preceding the date of the application or one year after the date of the application qualify for approval; or 

(4) evidence that the applicant holds a current and unrestricted credential for the practice of occupational therapy in another jurisdiction and that the applicant's credential from that jurisdiction has been held in good standing during the period of lapse. 

(c) To participate in a supervised practice as described in paragraph (b), clause (1), the applicant shall obtain limited licensure. To apply for limited licensure, the applicant shall submit the completed limited licensure application, fees, and agreement for supervision of an occupational therapist or occupational therapy assistant practicing under limited licensure signed by the supervising therapist and the applicant. The supervising occupational therapist shall state the proposed level of supervision on the supervision agreement form provided by the board. The supervising therapist shall determine the frequency and manner of supervision based on the condition of the patient or client, the complexity of the procedure, and the proficiencies of the supervised occupational therapist. At a minimum, a supervising occupational therapist shall be on the premises at all times that the person practicing under limited licensure is working; be in the room ten percent of the hours worked each week by the person practicing under limited licensure; and provide daily face-to-face collaboration for the purpose of observing service competency of the occupational therapist or occupational therapy assistant, discussing treatment procedures and each client's response to treatment, and reviewing and modifying, as necessary, each treatment plan. The supervising therapist shall document the supervision provided. The occupational therapist participating in a supervised practice is responsible for obtaining the supervision required under this paragraph and must comply with the board's requirements for supervision during the entire 160 hours of supervised practice. The supervised practice must be completed in two months and may be completed at the applicant's place of work. 

(d) In addition to the requirements in paragraphs (a) and (b), the applicant must submit additional information as requested by the board to clarify information in the application, including information to determine whether the applicant has engaged in conduct warranting disciplinary action as set forth in section 148.6448. The information must be submitted within 30 days after the board's request. 

148.6430 DELEGATION OF DUTIES; ASSIGNMENT OF TASKS.
The occupational therapist is responsible for all duties delegated to the occupational therapy assistant or tasks assigned to direct service personnel. The occupational therapist may delegate to an occupational therapy assistant those portions of a client's evaluation, reevaluation, and intervention that, according to prevailing national practice standards, can be performed by an occupational therapy assistant. The occupational therapist may not delegate portions of an evaluation or reevaluation of a person whose condition is changing rapidly. 

148.6445 FEES.Subd. 5.Limited licensure fee. 
The fee for limited licensure is $100. 

Subd. 6.Fee for course approval after lapse of licensure. 
The fee for course approval after lapse of licensure is $100. 

Subd. 8.Verification to institutions. 
The fee for verification of licensure to institutions is $10. 

156.015 FEES.Subdivision 1.Verification of licensure. 
The board may charge a fee of $25 per license verification to a licensee for verification of licensure status provided to other veterinary licensing boards. 

245A.11 SPECIAL CONDITIONS FOR RESIDENTIAL PROGRAMS.Subd. 8.Community residential setting license. 
(a) The commissioner shall establish provider standards for residential support services that integrate service standards and the residential setting under one license. The commissioner shall propose statutory language and an implementation plan for licensing requirements for residential support services to the legislature by January 15, 2012, as a component of the quality outcome standards recommendations required by Laws 2010, chapter 352, article 1, section 24. 

(b) Providers licensed under chapter 245B, and providing, contracting, or arranging for services in settings licensed as adult foster care under Minnesota Rules, parts 9555.5105 to 9555.6265; and meeting the provisions of section 245D.02, subdivision 4a, must be required to obtain a community residential setting license. 

256B.0622 ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES.Subd. 4.Provider entity licensure and contract requirements for intensive residential treatment services. 
(a) The commissioner shall develop procedures for counties and providers to submit other documentation as needed to allow the commissioner to determine whether the standards in this section are met. 

(b) A provider entity must specify in the provider entity's application what geographic area and populations will be served by the proposed program. A provider entity must document that the capacity or program specialties of existing programs are not sufficient to meet the service needs of the target population. A provider entity must submit evidence of ongoing relationships with other providers and levels of care to facilitate referrals to and from the proposed program. 

(c) A provider entity must submit documentation that the provider entity requested a statement of need from each county board and tribal authority that serves as a local mental health authority in the proposed service area. The statement of need must specify if the local mental health authority supports or does not support the need for the proposed program and the basis for this determination. If a local mental health authority does not respond within 60 days of the receipt of the request, the commissioner shall determine the need for the program based on the documentation submitted by the provider entity. 

256B.0625 COVERED SERVICES.Subd. 38. Payments for mental health services. 
Payments for mental health services covered under the medical assistance program that are provided by masters-prepared mental health professionals shall be 80 percent of the rate paid to doctoral-prepared professionals. Payments for mental health services covered under the medical assistance program that are provided by masters-prepared mental health professionals employed by community mental health centers shall be 100 percent of the rate paid to doctoral-prepared professionals. Payments for mental health services covered under the medical assistance program that are provided by physician assistants shall be 80.4 percent of the base rate paid to psychiatrists. 

2500.1150FEES. 
The fees charged by the board are fixed at the following rates: 

A.
 peer review fee to be paid by a requesting doctor or by a requesting insurance company, $100; 

B.
 licensing examination regrade fee, $30; 

C.
 copy of a board order or stipulation fee, $10 each; 

D.
 certificate of good standing or licensure verification to other states, $10 each; 

E.
 duplicate of the original license or of an annual renewal, $10; 

F.
 miscellaneous copying fee, 25 cents per page; 

G.
 independent medical examination registration fee, $150; 

H.
 independent examination annual renewal fee, $100; 

I.
 incorporation renewal late charge, $5 per month; 

J.
 computer lists, $100; and 

K.
 computer printed labels, $150. 

2500.2030ANNUAL RENEWAL OF INACTIVE LICENSE. 
The annual renewal fee for an inactive license is 75 percent of the current fee imposed by the board for license renewal. 

4695.2900APPLICATION FEES. 
Fees to be submitted with initial or renewal applications shall be as follows: 

A.
 Initial application fee, $45 plus examination fees. 

B.
 Biennial renewal application fee, $45. 

C.
 Penalty for late submission of renewal application, $10, if not renewed by designated renewal date. 

6800.5100DEFINITIONS. Subp. 5.Pharmacist-intern; intern.  
"Pharmacist-intern" and "intern" mean: 

A.
 a natural person satisfactorily progressing toward the degree in pharmacy required for licensure; 

B.
 a graduate of the University of Minnesota College of Pharmacy, or other pharmacy college approved by the board, who is registered by the Board of Pharmacy for the purpose of obtaining practical experience as a requirement for licensure as a pharmacist; 

C.
 a qualified applicant awaiting examination for licensure; or 

D.
 a participant in a residency or fellowship program, not licensed to practice pharmacy in the state of Minnesota, who is a licensed pharmacist in another state or who is a graduate of the University of Minnesota College of Pharmacy or another pharmacy college approved by the board. 

6800.5400TRAINING. Subp. 5.Competencies.  
Upon registration, interns and preceptors will be furnished a copy of the board's internship manual, which lists the minimum competencies that should be the focus of internship training. The competencies are furnished to suggest appropriate types and order of training experience and shall be used to ensure that the intern's practical experiences are commensurate with the intern's educational level, and broad in scope. 

Subp. 6.Evidence of completion.  
Applicants for licensure as pharmacists who are examined and licensed after September 17, 1973, shall submit evidence that they have successfully completed not less than 1,500 hours of internship under the instruction and supervision of a preceptor. Effective May 1, 2003, candidates for licensure shall submit evidence that they have successfully completed not less than 1,600 hours of internship under the direction and supervision of a preceptor. Credit for internship shall be granted only to registered interns who have completed the third year of the five-year or six-year pharmacy curriculum, provided, however, that: 

A.
 no more than 400 hours of concurrent time internship will be granted to an intern; and 

B.
 800 hours of internship credit may be acquired through experiential education program experiences that do not have as their focus traditional compounding, dispensing, and related patient counseling activities. The remaining 800 hours of the 1,600 hour total requirement must focus on traditional compounding, dispensing, and related patient counseling activities. 

6900.0250FEES. Subpart 1.Amounts.  
The amount of fees may be set by the board with the approval of the Department of Management and Budget up to the limits provided in this subpart depending upon the total amount required to sustain board operations under Minnesota Statutes, section 16A.1285, subdivision 2. Information about fees in effect at any time is available from the board office. The maximum amount of fees are: 

A.
 application for licensure, $600; 

B.
 renewal license, $600; 

C.
 late renewal fee, $100; 

D.
 temporary permit, $250; 

E.
 duplicate license or duplicate renewal certificate, $10; 

F.
 reinstatement, $650; 

G.
 exam administration to persons who have not applied for a license or permit, $50; 

H.
 fee for verification of licensure, $30; and 

I.
 miscellaneous fee: 

(1)
 labels, $25; 

(2)
 list of licensees, $25; and 

(3)
 copies, 25 cents per page. 

Subp. 2.Requirements.  
Fees must be paid in United States money and are not refundable. 

9100.0400APPLICATION AND EXAMINATION FEES FOR LICENSURE TO PRACTICE VETERINARY MEDICINE. Subpart 1.Application fee. A.
 A person applying for a license to practice veterinary medicine in Minnesota or applying for a permit to take the national veterinary medical examination must pay a $50 nonrefundable application fee to the board. Persons submitting concurrent applications for licensure and a national examination permit shall pay only one application fee. 

B.
 The application fee received supports only the application with which the fee was submitted. A person who applies more than once must submit the full application fee with each subsequent application. 

Subp. 3.Examination fees. A.
 All applicants for veterinary licensure in Minnesota must successfully pass the Minnesota Veterinary Jurisprudence Examination. The fee for this examination is $50, payable to the board. 

B.
 An applicant participating in the national veterinary licensing examination must complete a separate application for the national examination and submit the application to the board for approval. Payment for the national examination must be made by the applicant to the national board examination committee after the application for examination has been approved by the board. 

9100.0500INITIAL AND RENEWAL FEE. Subpart 1.Required for licensure.  
Each person now licensed to practice veterinary medicine in this state, or who becomes licensed by the Board of Veterinary Medicine to engage in the practice, shall pay an initial fee or a biennial license renewal fee if the person wishes to practice veterinary medicine in the coming two-year period or remain licensed as a veterinarian. A licensure period begins on March 1 and expires the last day of February two years later. A licensee with an even-numbered license shall renew by March 1 of even-numbered years and a licensee with an odd-numbered license shall renew by March 1 of odd-numbered years. For 1996 license renewals, licensees with an even-numbered license shall renew for two years. Licensees with an odd-numbered license shall renew for one year and commence renewal for a two-year period in 1997. 

Subp. 2.Amount.  
The initial licensure fee and the biennial renewal fee is $200 and must be paid to the executive director of the board on or before March 1 of the first year of the biennial license period. By January 1 of the first year for which the biennial renewal fee is due, the board shall issue a renewal application to each current licensee to the last address maintained in the board file. Failure to receive this notice does not relieve the licensee of the obligation to pay renewal fees so that they are received by the board on or before the renewal date of March 1. 

Initial licenses issued after the start of the licensure renewal period are valid only until the end of the period. 

Subp. 3.Date due.  
A licensee must apply for a renewal license on or before March 1 of the first year of the biennial license renewal period. A renewal license is valid from March 1 through the last day of February of the last year of the two-year license renewal period. An application postmarked no later than the last day of February must be considered to have been received on March 1. 

Subp. 4.Late renewal penalty.  
An applicant for renewal must pay a late renewal penalty of $100 in addition to the renewal fee if the application for renewal is received after March 1 of the licensure renewal period. A renewed license issued after March 1 of the licensure renewal period is valid only to the end of the period regardless of when the renewal fee is received. 

Subp. 4a.Reinstatement fee.  
An applicant for license renewal whose license has previously been suspended by official board action for nonrenewal must pay a reinstatement fee of $50 in addition to the $200 renewal fee and the $100 late renewal penalty. 

Subp. 5.Penalty for failure to pay.  
Within 30 days after the renewal date, a licensee who has not renewed the license must be notified by letter sent to the last known address of the licensee in the file of the board that the renewal is overdue and that failure to pay the current fee and current late fee within 60 days after the renewal date will result in suspension of the license. A second notice must be sent by registered or certified mail at least seven days before a board meeting occurring 60 days or more after the renewal date to each licensee who has not paid the renewal fee and late fee. 

Subp. 6.Suspension.  
The board, by means of a roll call vote, shall suspend the license of a licensee whose license renewal is at least 60 days overdue and to whom notification has been sent as provided in subpart 5. Failure of a licensee to receive notification is not grounds for later challenge by the licensee of the suspension. The former licensee must be notified by registered or certified letter within seven days of the board action. The suspended status placed on a license may be removed only on payment of renewal fees and late penalty fees for each licensure period or part of a period that the license was not renewed. A licensee who fails to renew a license for five years or more must meet the criteria of Minnesota Statutes, section 156.071, for relicensure. 

Subp. 7.Inactive license.  
A person holding a current unrestricted license to practice veterinary medicine in Minnesota may, at the time of the person's next biennial license renewal date, renew the license as an inactive license at one-half the renewal fee of an unrestricted license. The license may be continued in an inactive status by renewal on a biennial basis at one-half the regular license fee. 

A.
 A person holding an inactive license is not permitted to practice veterinary medicine in Minnesota and remains under the disciplinary authority of the board. 

B.
 A person may convert a current inactive license to an unrestricted license upon application to and approval by the board. The application must include: 

(1)
 documentation of licensure in good standing and of having met continuing education requirements of current state of practice, or documentation of having met Minnesota continuing education requirements retroactive to the date of licensure inactivation; 

(2)
 certification by the applicant that the applicant is not currently under disciplinary orders or investigation for acts that could result in disciplinary action in any other jurisdiction; and 

(3)
 payment of a fee equal to the full difference between an inactive and unrestricted license if converting during the first year of the biennial license cycle or payment of a fee equal to one-half the difference between an inactive and an unrestricted license if converting during the second year of the license cycle. 

C.
 Deadline for renewal of an inactive license is March 1 of the first year of the biennial license renewal period. A late renewal penalty of one-half the inactive renewal fee must be paid if renewal is received after March 1. 

9100.0600MISCELLANEOUS FEES. Subpart 1.Temporary license fee.  
A person meeting the requirements for issuance of a temporary permit to practice veterinary medicine under Minnesota Statutes, section 156.072, subdivision 5, pending examination, who desires a temporary permit shall pay a fee of $50 to the board. 

Subp. 2.Duplicate license.  
A person requesting issuance of a duplicate or replacement license shall pay a fee of $10 to the board.