SF 2053

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/04/2025 09:23 a.m.

A bill for an act
relating to human services; requiring a report related to direct support service rate
calculations.

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

Section 1. new text begin DIRECT SUPPORT SERVICE RATE CALCULATIONS.
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new text begin (a) By March 15, 2027, the commissioner of human services must submit to the chairs
and ranking minority members of the legislative committees with jurisdiction over human
services policy and finance a report on any proposed collective bargaining agreement
between the state and individual providers of direct support services in a covered program
as defined under Minnesota Statutes, section 256B.0711. The report must include the
information described in this section.
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new text begin (b) The commissioner must include in the report an estimate of the reimbursement rates,
enhanced rates, tiered rates, individual budgets, grants, and allocations that would result
from an increase equal to the sum of:
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new text begin (1) the cost to an employer of increasing the wages of all employees by an amount equal
to the incremental increase in the wage floors;
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new text begin (2) the cost to an employer of increasing paid time off by an amount equal to the
incremental increase in any paid time off;
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new text begin (3) the cost to an employer of adjusting the wages of any employee who works on a
holiday by an amount equal to the incremental increase in any wage adjustment for work
on holidays;
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new text begin (4) the cost to an employer of providing all employees with an increase in benefits equal
to the value of any other incremental increase in other benefits included in a proposed
collective bargaining agreement; and
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new text begin (5) the cost to an employer for all corresponding incremental increases in the employer's
share of FICA taxes, Medicare taxes, state and federal unemployment taxes, worker
compensation premiums, and retirement contributions, if any, attributable to costs increased
under clauses (1) and (4).
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new text begin (c) The commissioner must include in the report the rates and formulas used to determine
the increases described in paragraph (b) for covered programs and for the community first
services and supports agency-provider model.
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new text begin (d) For the purposes of the calculations described in paragraphs (b) and (c), the
commissioner must not assume, based on an employer, fiscal support entity, or fiscal
management service already paying all or some direct support professionals the proposed
minimum wage, providing the proposed minimum paid time off, or providing any other
proposed benefit or portion of the proposed incremental increase in wages, paid time off,
or other benefits, that:
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new text begin (1) any employer, fiscal support entity, or fiscal management service will not be affected
by the increases in wages and benefits in the proposed collective bargaining agreement; or
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new text begin (2) any portion of employers, fiscal support entities, or fiscal management services will
not be affected by the increases in wages and benefits in the proposed collective bargaining
agreement.
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new text begin (e) The commissioner must assume for the purposes of the calculations described in
paragraphs (b) and (c) that every employer of an individual providing direct support services
will receive a rate increase equal to the incremental increase in the wage floor and the
incremental increase in other benefits proposed in the collective bargaining agreement as
compared to the prior collective bargaining agreement. For the purposes of these calculations,
the commissioner must not assume that any employer, fiscal support entity, or fiscal
management service will absorb any incremental increase in costs attributable to any
incremental increase described in the collective bargaining agreement.
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new text begin (f) The commissioner of human services must include in the report an estimate of the
total appropriation necessary to implement the increases calculated under paragraphs (b)
and (c).
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new text begin (g) The commissioner of human services must include in the report the statutory changes
necessary to implement the rates calculated under paragraphs (b) and (c).
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new text begin (h) The commissioner may include in the report alternative estimates of the reimbursement
rates, enhanced rates, tiered rates, individual budgets, grants, and allocations that the
commissioner believes are sufficient to implement the proposed collective bargaining
agreement and an alternative estimate of the appropriation sufficient to implement the
alternative rates, budgets, grants, and allocations. The commissioner may also include in
the report the commissioner's recommendation with respect to implementing the proposed
collective bargaining agreement and the reimbursement rates, enhanced rates, tiered rates,
individual budgets, grants, and allocations sufficient to do so.
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