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 	appropriating money;amending Minnesota Statutes 2024, sections 3.732, 
1.13 	subdivision 1; 3.922, subdivision 1; 10A.01, subdivision 35; 13.41, subdivision 
1.14 	1; 13.46, subdivisions 3, 4, 9, 10; 13.598, subdivision 10; 14.03, subdivision 3; 
1.15 	62A.673, subdivision 2; 62D.21; 62D.211; 62E.23, subdivision 1; 62J.461, 
1.16 	subdivisions 3, 4, 5; 62J.51, subdivision 19a; 62J.581; 62J.84, subdivisions 2, 3, 
1.17 	6, 10, 11, 12, 13, 14, 15; 62K.10, subdivisions 2, 5, 6; 62M.17, subdivision 2; 
1.18 	62Q.522, subdivision 1; 62Q.527, subdivisions 1, 2, 3; 103I.005, subdivision 17b; 
1.19 	103I.101, subdivisions 2, 5, 6, by adding a subdivision; 103I.208, subdivisions 1, 
1.20 	1a, 2; 103I.235, subdivision 1; 103I.525, subdivisions 2, 6, 8; 103I.531, subdivisions 
1.21 	2, 6, 8; 103I.535, subdivisions 2, 6, 8; 103I.541, subdivisions 2b, 2c, 4; 103I.545, 
1.22 	subdivisions 1, 2; 103I.601, subdivisions 2, 4; 116L.881; 121A.61, subdivision 3; 
1.23 	125A.15; 125A.744, subdivision 2; 127A.11; 127A.70, subdivision 2; 128C.02, 
1.24 	subdivision 5; 136A.25; 136A.26; 136A.27; 136A.28; 136A.29, subdivisions 1, 
1.25 	3, 6, 9, 10, 14, 19, 20, 21, 22, by adding a subdivision; 136A.32, subdivisions 1, 
1.26 	4, by adding a subdivision; 136A.33; 136A.34, subdivisions 3, 4; 136A.36; 
1.27 	136A.38; 136A.41; 136A.42; 136F.67, subdivision 1; 138.912, subdivisions 1, 2, 
1.28 	3, 4, 6; 142A.03, subdivision 2, by adding a subdivision; 142A.607, subdivision 
1.29 	14; 142A.609, subdivision 21; 142A.76, subdivisions 2, 3; 142B.01, subdivision 
1.30 	15; 142B.05, subdivision 3; 142B.10, subdivision 14; 142B.16, subdivision 2; 
1.31 	142B.171, subdivision 2; 142B.30, subdivision 1; 142B.41, subdivision 9, by 
1.32 	adding a subdivision; 142B.47; 142B.51, subdivision 2; 142B.65, subdivisions 8, 
1.33 	9; 142B.66, subdivision 3; 142B.70, subdivisions 7, 8; 142B.80; 142C.06, by 
1.34 	adding a subdivision; 142C.11, subdivision 8; 142C.12, subdivisions 1, 6; 142D.31, 
1.35 	subdivision 2; 142E.03, subdivision 3; 142E.11, subdivisions 1, 2; 142E.13, 
1.36 	subdivision 2; 142E.15, subdivision 1; 142E.16, subdivisions 3, 7; 142E.51, 
1.37 	subdivisions 5, 6; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, 
1.38 	subdivision 3; 144.061; 144.0758, subdivision 3; 144.1205, subdivisions 2, 4, 8, 
2.1 	9, 10; 144.121, subdivisions 1a, 2, 5, by adding subdivisions; 144.1215, by adding 
2.2 	a subdivision; 144.1222, subdivision 1a; 144.125, subdivision 2; 144.225, 
2.3 	subdivision 2a; 144.3831, subdivision 1; 144.50, by adding a subdivision; 144.55, 
2.4 	subdivision 1a; 144.554; 144.555, subdivisions 1a, 1b; 144.562, subdivisions 2, 
2.5 	3; 144.563; 144.608, subdivision 2; 144.651, subdivision 2; 144.966, subdivision 
2.6 	2; 144.99, subdivision 1; 144A.43, subdivision 15; 144E.123, subdivision 3; 
2.7 	144E.35; 144G.08, subdivision 45; 144G.45, subdivision 6; 145.8811; 145.895; 
2.8 	145.901, subdivisions 1, 2, 4; 145.9255, subdivision 1; 145.9265; 145.987, 
2.9 	subdivisions 1, 2; 147.01, subdivision 7; 147.037, by adding a subdivision; 
2.10 	147A.02; 147D.03, subdivision 1; 148.108, subdivision 1, by adding subdivisions; 
2.11 	148.191, subdivision 2; 148.241; 148.512, subdivision 17a; 148.5192, subdivision 
2.12 	3; 148.5194, subdivision 3b; 148.56, subdivision 1; 148.6401; 148.6402, 
2.13 	subdivisions 1, 7, 8, 13, 14, 16, 16a, 19, 20, 23, 25, by adding subdivisions; 
2.14 	148.6403; 148.6404; 148.6405; 148.6408, subdivision 2, by adding a subdivision; 
2.15 	148.6410, subdivision 2, by adding a subdivision; 148.6412, subdivisions 2, 3; 
2.16 	148.6415; 148.6418; 148.6420, subdivision 1; 148.6423, subdivisions 1, 2, by 
2.17 	adding a subdivision; 148.6425, subdivision 2, by adding subdivisions; 148.6428; 
2.18 	148.6432, subdivisions 1, 2, 3, 4, by adding a subdivision; 148.6435; 148.6438; 
2.19 	148.6443, subdivisions 3, 4, 5, 6, 7, 8; 148.6445, by adding subdivisions; 148.6448, 
2.20 	subdivisions 1, 2, 4, 6; 148.6449, subdivisions 1, 2, 7; 148B.53, subdivision 3; 
2.21 	148E.180, subdivisions 1, 5, 7, by adding subdivisions; 148F.11, subdivision 1; 
2.22 	149A.02, by adding a subdivision; 150A.105, by adding a subdivision; 151.01, 
2.23 	subdivisions 15, 23; 151.065, subdivisions 1, 3, 6; 151.101; 151.741, subdivision 
2.24 	5; 152.12, subdivision 1; 153B.85, subdivisions 1, 3; 156.015, by adding 
2.25 	subdivisions; 157.16, subdivisions 2, 2a, 3, 3a, by adding a subdivision; 174.285, 
2.26 	subdivision 4; 214.104; 216C.266, subdivisions 2, 3; 241.021, subdivision 2; 
2.27 	242.09; 242.21; 242.32, subdivision 1; 245.095, subdivision 5, by adding a 
2.28 	subdivision; 245.462, subdivisions 4, 20; 245.4661, subdivisions 2, 6, 7, 9; 
2.29 	245.4662, subdivision 1; 245.467, subdivision 4; 245.4682, subdivision 3; 245.469; 
2.30 	245.4711, subdivisions 1, 4; 245.4712, subdivisions 1, 3; 245.4835, subdivision 
2.31 	2; 245.4863; 245.487, subdivision 2; 245.4871, subdivisions 3, 4, 5, 6, 13, 15, 17, 
2.32 	19, 21, 22, 28, 29, 31, 32, 34, by adding a subdivision; 245.4873, subdivision 2; 
2.33 	245.4874, subdivision 1; 245.4875, subdivision 5; 245.4876, subdivisions 4, 5; 
2.34 	245.4877; 245.488, subdivisions 1, 3; 245.4881, subdivisions 1, 3, 4; 245.4882, 
2.35 	subdivisions 1, 5; 245.4884; 245.4885, subdivision 1; 245.4889, subdivision 1; 
2.36 	245.4901, subdivision 3; 245.4905; 245.4906, subdivision 2; 245.4907, subdivisions 
2.37 	2, 3; 245.491, subdivision 2; 245.492, subdivision 3; 245.50, subdivision 3, by 
2.38 	adding a subdivision; 245.697, subdivisions 1, 2a; 245.814, subdivisions 1, 2, 3, 
2.39 	4; 245.826; 245.91, subdivisions 2, 4; 245.92; 245.94, subdivision 1; 245.975, 
2.40 	subdivision 1; 245A.03, subdivision 2; 245A.04, subdivisions 1, 7; 245A.05; 
2.41 	245A.07, subdivision 2; 245A.16, subdivision 1; 245A.18, subdivision 1; 245A.242, 
2.42 	subdivision 2; 245A.26, subdivisions 1, 2; 245C.02, subdivisions 7, 12, 13, by 
2.43 	adding a subdivision; 245C.031, subdivision 9; 245C.033, subdivision 2; 245C.05, 
2.44 	subdivision 7, by adding a subdivision; 245C.07; 245C.08, subdivision 3; 245C.13, 
2.45 	subdivision 2; 245C.14, by adding subdivisions; 245C.15, subdivision 4a; 245C.22, 
2.46 	subdivision 5; 245D.02, subdivision 4a; 245I.05, subdivisions 3, 5; 245I.06, 
2.47 	subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 245I.23, subdivision 
2.48 	7; 246C.12, subdivision 4; 252.27, subdivision 1; 254B.04, subdivision 1a; 254B.05, 
2.49 	subdivision 1a; 254B.06, by adding a subdivision; 256.01, by adding a subdivision; 
2.50 	256.478, subdivision 2; 256.88; 256.89; 256.90; 256.91; 256.92; 256.9657, by 
2.51 	adding a subdivision; 256.969, subdivision 2b; 256.98, subdivision 1; 256.983, 
2.52 	subdivision 4; 256B.02, subdivision 11; 256B.0371, subdivision 3; 256B.04, 
2.53 	subdivision 21; 256B.051, subdivision 3; 256B.055, subdivision 12; 256B.0615, 
2.54 	subdivisions 1, 3; 256B.0616, subdivisions 1, 4, 5; 256B.0622, subdivisions 1, 3a, 
2.55 	7a, 8, 11, 12; 256B.0625, subdivisions 2, 3b, 13, 13c, 13d, 13e, 17a, 20, 25c, 30, 
2.56 	54, by adding subdivisions; 256B.064, subdivision 1a; 256B.0659, subdivision 
2.57 	21; 256B.0757, subdivisions 2, 5, by adding a subdivision; 256B.0943, subdivisions 
2.58 	1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 256B.0947, 
3.1 	subdivision 3a; 256B.12; 256B.1973, by adding a subdivision; 256B.69, 
3.2 	subdivisions 6d, 23, by adding a subdivision; 256B.76, subdivisions 1, 6, by adding 
3.3 	a subdivision; 256B.761; 256B.766; 256B.77, subdivision 7a; 256B.82; 256B.85, 
3.4 	subdivision 12; 256D.44, subdivision 5; 256G.01, subdivisions 1, 3; 256G.03, 
3.5 	subdivision 2; 256G.04, subdivision 2; 256G.09, subdivisions 2, 3, 4, 5; 256G.10; 
3.6 	256G.11; 256G.12, subdivision 1; 256L.03, subdivision 5; 256R.01, by adding a 
3.7 	subdivision; 260.65; 260.66, subdivision 1; 260.691, subdivision 1; 260.692; 
3.8 	260.762, subdivision 2a; 260.810, subdivisions 1, 2; 260.821, subdivision 2; 
3.9 	260B.157, subdivision 3; 260B.171, subdivision 4; 260C.001, subdivision 2; 
3.10 	260C.007, subdivisions 16, 19, 26d, 27b; 260C.150, subdivision 3; 260C.157, 
3.11 	subdivision 3; 260C.201, subdivisions 1, 2; 260C.202, subdivision 2; 260C.204; 
3.12 	260C.212, subdivisions 1, 1a; 260C.221, subdivision 2; 260C.223, subdivisions 
3.13 	1, 2; 260C.301, subdivision 4; 260C.329, subdivision 8; 260C.452, subdivision 4; 
3.14 	260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, 
3.15 	subdivision 2; 260D.07; 260E.03, subdivisions 6, 15; 260E.09; 260E.11, 
3.16 	subdivisions 1, 3; 260E.20, subdivision 1; 260E.24, subdivisions 1, 2; 260E.30, 
3.17 	subdivision 4; 260E.33, subdivision 6; 261.232; 270B.14, subdivision 1, by adding 
3.18 	a subdivision; 295.50, subdivision 9b; 295.52, subdivisions 1, 1a, 2, 3, 4; 299C.76, 
3.19 	subdivision 1; 299F.011, subdivision 4a; 326.72, subdivision 1; 326.75, subdivisions 
3.20 	3, 3a; 327.15, subdivisions 3, 4, by adding a subdivision; 354B.20, subdivision 7; 
3.21 	402A.10, subdivisions 1a, 2, 4c; 402A.12; 402A.16, subdivisions 1, 2, 3, 4; 
3.22 	402A.18, subdivisions 2, 3, by adding a subdivision; 402A.35, subdivisions 1, 4, 
3.23 	5; 462A.2095, subdivision 6; 466.131; 518.165, subdivision 5; 524.5-106; 
3.24 	524.5-118, subdivision 2; 595.02, subdivision 2; 626.5533; Laws 2021, First 
3.25 	Special Session chapter 7, article 2, section 81; Laws 2023, chapter 70, article 7, 
3.26 	section 34; article 20, section 2, subdivisions 7, 30; Laws 2024, chapter 127, article 
3.27 	67, sections 4; 6; proposing coding for new law in Minnesota Statutes, chapters 
3.28 	62J; 62Q; 62V; 142B; 142F; 144; 144E; 145; 148; 153; 245; 256B; 260E; 295; 
3.29 	306; 307; 609; proposing coding for new law as Minnesota Statutes, chapter 148G; 
3.30 	repealing Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; 
3.31 	62E.25; 62J.824; 62K.10, subdivision 3; 103I.550; 136A.29, subdivision 4; 138.912, 
3.32 	subdivision 7; 142A.15; 142E.50, subdivisions 2, 12; 148.108, subdivisions 2, 3, 
3.33 	4; 148.6402, subdivision 22a; 148.6420, subdivisions 2, 3, 4; 148.6423, subdivisions 
3.34 	4, 5, 7, 8, 9; 148.6425, subdivision 3; 148.6430; 148.6445, subdivisions 5, 6, 8; 
3.35 	156.015, subdivision 1; 245A.02, subdivision 6d; 245A.11, subdivision 8; 
3.36 	256B.0622, subdivision 4; 256B.0625, subdivision 38; 256G.02, subdivisions 3, 
3.37 	5; 261.003; Minnesota Rules, parts 2500.1150; 2500.2030; 4695.2900; 6800.5100, 
3.38 	subpart 5; 6800.5400, subparts 5, 6; 6900.0250, subparts 1, 2; 9100.0400, subparts 
3.39 	1, 3; 9100.0500; 9100.0600.
3.40 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.41 	ARTICLE 1
3.42 	DEPARTMENT OF HEALTH FINANCE

3.43 	Section 1. Minnesota Statutes 2024, section 62D.21, is amended to read:
3.44 	62D.21 FEES.
3.45 	Every health maintenance organization subject to sections 62D.01 to 62D.30 shall pay 
3.46 	to the commissioner of health the following fees as prescribed by the commissioner of health 
3.47 	pursuant to section 144.122 for the following:
3.48 	(1) filing an application for a certificate of authority: $10,000;
4.1 	(2) filing an amendment to a certificate of authority: $125;
4.2 	(3) filing each annual report: $400; and
4.3 	(4) other filings, as specified by rule.
4.4 	(4) filing each quarterly report: $200; and
4.5 	(5) filing annual plan review documents, amendments to plan documents, and quality 
4.6 	plans: $125.

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

4.8 	Sec. 2. Minnesota Statutes 2024, section 62D.211, is amended to read:
4.9 	62D.211 RENEWAL FEE.
4.10 	Each health maintenance organization subject to sections 62D.01 to 62D.30 shall submit 
4.11 	to the commissioner of health each year before June 15 a certificate of authority renewal 
4.12 	fee in the amount of $10,000 $30,000 each plus 20 88 cents per person enrolled in the health 
4.13 	maintenance organization on December 31 of the preceding year. The commissioner may 
4.14 	adjust the renewal fee in rule under the provisions of chapter 14.

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

4.16 	Sec. 3. [62J.8241] FACILITY FEES PROHIBITED.
4.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
4.18 	the meanings given.
4.19 	(b) "Facility fee" means any separate charge or billing by a provider-based clinic in 
4.20 	addition to a professional fee for physicians' services that is intended to cover building, 
4.21 	electronic medical records systems, billing, and other administrative and operational 
4.22 	expenses.
4.23 	(c) "Health care provider" has the meaning given in section 145B.02. Health care provider 
4.24 	does not include any critical access hospital.
4.25 	(d) "Provider-based clinic" means the site of an off-campus clinic or provider office, 
4.26 	located at least 250 yards from the main hospital buildings or as determined by the Centers 
4.27 	for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144 
4.28 	or a health system that operates one or more hospitals licensed under chapter 144 and is 
4.29 	primarily engaged in providing diagnostic and therapeutic care, including medical history, 
4.30 	physical examinations, assessment of health status, and treatment monitoring. This definition 
5.1 	does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, 
5.2 	pharmacy, or educational services and does not include facilities designated as rural health 
5.3 	clinics.
5.4 		Subd. 2.Provider-based clinic prohibition. Health care providers are prohibited from 
5.5 	charging, billing, or collecting a facility fee for nonemergency services provided at a 
5.6 	provider-based clinic, including services provided by telehealth as defined in section 62A.673, 
5.7 	subdivision 2, paragraph (h).
5.8 		Subd. 3.Service-specific prohibition. (a) Regardless of where the services are provided, 
5.9 	except for at emergency departments located on a hospital campus, health care providers 
5.10 	are prohibited from charging, billing, or collecting a facility fee for outpatient evaluation 
5.11 	and management services.
5.12 	(b) Notwithstanding paragraph (a), a health care provider may charge, bill, or collect a 
5.13 	facility fee for observation stays on a hospital campus and for outpatient services that use 
5.14 	a current procedural terminology (CPT) evaluation and management code or CPT assessment 
5.15 	and management code when billed for wound care, orthopedics, anticoagulation, oncology, 
5.16 	obstetrics, and solid organ transplant.
5.17 		Subd. 4.Reporting. (a) By January 15, 2027, and each year thereafter, hospitals licensed 
5.18 	under chapter 144 and health systems operating one or more hospitals licensed under chapter 
5.19 	144 must submit a report to the commissioner of health identifying facility fees charged, 
5.20 	billed, and collected during the preceding calendar year. The commissioner must publish 
5.21 	the information reported on a publicly accessible website. The report shall be in the format 
5.22 	prescribed by the commissioner of health.
5.23 	(b) The report under this subdivision must include the following information for each 
5.24 	facility owned or operated by the hospital or health system providing services for which a 
5.25 	facility fee is charged, billed, or collected:
5.26 	(1) the name and full address of each facility;
5.27 	(2) the number of patient visits at each facility; and
5.28 	(3) the number, total amount, and range of allowable facility fees paid at each facility 
5.29 	by Medicare, medical assistance, MinnesotaCare, and private insurance.
5.30 	(c) The report under this subdivision must include the following information for the 
5.31 	entire hospital or health system:
5.32 	(1) the total amount charged and billed for facility fees;
6.1 	(2) the total amount collected from facility fees;
6.2 	(3) the top ten procedures or services provided by the hospital or health system that 
6.3 	generated the greatest amount of facility fee gross revenue, the volume of each of these ten 
6.4 	procedures or services and the gross and net revenue totals for each procedure or service, 
6.5 	and the total net amount of revenue received by the hospital or health system derived from 
6.6 	facility fees;
6.7 	(4) the top ten procedures or services, based on patient volume, provided by the hospital 
6.8 	or health system for which facility fees are charged, billed, or collected, based on patient 
6.9 	volume, including the gross and net revenue totals received for each such procedure or 
6.10 	service; and
6.11 	(5) any other information related to facility fees that the commissioner of health may 
6.12 	require.
6.13 		Subd. 5.Enforcement. (a) A violation of this section is an unlawful business practice 
6.14 	for purposes of section 8.31. The attorney general may enforce this section pursuant to 
6.15 	section 8.31.
6.16 	(b) In addition to penalties provided in paragraph (a), the commissioner of health may, 
6.17 	pursuant to the procedures in sections 144.99 and 144.991, impose an administrative penalty 
6.18 	on a health care provider for failure to comply with subdivision 4. The penalty must not 
6.19 	exceed $1,000 per occurrence.
6.20 	(c) The commissioner of health or the commissioner's designee may audit any health 
6.21 	care provider for compliance with the requirements of this section. A health care provider 
6.22 	must make available, upon written request of the commissioner or the commissioner's 
6.23 	designee, copies of any books, documents, records, or data that are necessary for the purposes 
6.24 	of completing the audit for four years after the furnishing of any services for which a facility 
6.25 	fee was charged, billed, or collected.

6.26 	Sec. 4. Minnesota Statutes 2024, section 103I.101, subdivision 6, is amended to read:
6.27 		Subd. 6.Fees for variances. The commissioner shall charge a nonrefundable application 
6.28 	fee of $275 $325 to cover the administrative cost of processing a request for a variance or 
6.29 	modification of rules adopted by the commissioner under this chapter.

6.30 	Sec. 5. Minnesota Statutes 2024, section 103I.208, subdivision 1, is amended to read:
6.31 		Subdivision 1.Well notification fee. The well notification fee to be paid by a property 
6.32 	owner is:
7.1 	(1) for construction of a water supply well, $275 $325, which includes the state core 
7.2 	function fee;
7.3 	(2) for a well sealing, $75 $125 for each well or temporary boring, which includes the 
7.4 	state core function fee, except that: (i) a single notification and fee of $75 $125 is required 
7.5 	for all temporary borings on a single property and sealed within 72 hours of start of 
7.6 	construction; and (ii) temporary borings less than 25 feet in depth are exempt from the 
7.7 	notification and fee requirements in this chapter;
7.8 	(3) for construction of a dewatering well, $275 $330, which includes the state core 
7.9 	function fee, for each dewatering well, except a dewatering project comprising five or more 
7.10 	dewatering wells shall be assessed a single fee of $1,375 $1,620 for the dewatering wells 
7.11 	recorded on the notification; and
7.12 	(4) for construction of an environmental well, $275 $330, which includes the state core 
7.13 	function fee, except that a single fee of $275 is required for all environmental wells recorded 
7.14 	on the notification that are located on a single property, and except that no fee is required 
7.15 	for construction of a temporary boring for each environmental well, except an environmental 
7.16 	well site project comprising five or more environmental wells shall be assessed a single fee 
7.17 	of $1,620 for the environmental wells recorded on the notification.

7.18 	Sec. 6. Minnesota Statutes 2024, section 103I.208, subdivision 1a, is amended to read:
7.19 		Subd. 1a.State core function fee. The state core function fee to be collected by the 
7.20 	state and delegated community health boards and used to support state core functions is:
7.21 	(1) for a new well, $20 $40; and
7.22 	(2) for a well sealing, $5 $15.

7.23 	Sec. 7. Minnesota Statutes 2024, section 103I.208, subdivision 2, is amended to read:
7.24 		Subd. 2.Permit fee. (a) The permit fee to be paid by a property owner is:
7.25 	(1) for a water supply well that is not in use under a maintenance permit, $175 $225
7.26 	annually;
7.27 	(2) for an environmental well that is unsealed under a maintenance permit, $175 annually 
7.28 	except no fee is required for an environmental well owned by a federal agency, state agency, 
7.29 	or local unit of government that is unsealed under a maintenance permit. "Local unit of 
7.30 	government" means a statutory or home rule charter city, town, county, or soil and water 
7.31 	conservation district, a watershed district, an organization formed for the joint exercise of 
8.1 	powers under section 471.59, a community health board, or other special purpose district 
8.2 	or authority with local jurisdiction in water and related land resources management;
8.3 	(3) for environmental wells on an environmental well site that are unsealed under a 
8.4 	maintenance permit,:
8.5 	$175 (i) $225 annually for one to ten environmental wells per site regardless of the 
8.6 	number of environmental wells located on site;
8.7 	(ii) $325 annually for 11 to 20 environmental wells per site; and
8.8 	(iii) $425 annually for 21 or more environmental wells per site;
8.9 	(4) for a groundwater thermal exchange device, in addition to the notification fee for 
8.10 	water supply wells, $275 $350 for systems using 20 gallons per minute or less and $590 
8.11 	for systems using over 20 gallons per minute, which includes the state core function fee;
8.12 	(5) for a bored geothermal heat exchanger with less than ten tons of heating/cooling 
8.13 	capacity, $275 $350;
8.14 	(6) for a bored geothermal heat exchanger with ten to 50 tons of heating/cooling capacity, 
8.15 	$515 $590;
8.16 	(7) for a bored geothermal heat exchanger with greater than 50 tons of heating/cooling 
8.17 	capacity, $740 $815;
8.18 	(8) for a dewatering well that is unsealed under a maintenance permit, $175 $330 annually 
8.19 	for each dewatering well, except a dewatering project comprising more than five or more
8.20 	dewatering wells shall be issued a single permit for $875 $1,620 annually for dewatering 
8.21 	wells recorded on the permit;
8.22 	(9) for an elevator boring, $275 $325 for each boring; and
8.23 	(10) for a submerged closed loop heat exchanger system, in addition to the notification 
8.24 	fee for water supply wells, $3,250, which includes the state core function fee.
8.25 	(b) For purposes of this subdivision, an environmental well site includes all of the 
8.26 	environmental wells on a single property. A single property is considered one tax parcel or 
8.27 	multiple contiguous parcels with the same owner.

8.28 	Sec. 8. Minnesota Statutes 2024, section 103I.235, subdivision 1, is amended to read:
8.29 		Subdivision 1.Disclosure of wells to buyer. (a) Before signing an agreement to sell or 
8.30 	transfer real property, the seller must disclose in writing to the buyer information about the 
8.31 	status and location of all known wells on the property, by delivering to the buyer either a 
9.1 	statement by the seller that the seller does not know of any wells on the property, or a 
9.2 	disclosure statement indicating the legal description and county, and a map drawn from 
9.3 	available information showing the location of each well to the extent practicable. In the 
9.4 	disclosure statement, the seller must indicate, for each well, whether the well is in use, not 
9.5 	in use, or sealed.
9.6 	(b) At the time of closing of the sale, the disclosure statement information, name and 
9.7 	mailing address of the buyer, and the quartile, section, township, and range in which each 
9.8 	well is located must be provided on a well disclosure certificate signed by the seller or a 
9.9 	person authorized to act on behalf of the seller.
9.10 	(c) A well disclosure certificate need not be provided if the seller does not know of any 
9.11 	wells on the property and the deed or other instrument of conveyance contains the statement: 
9.12 	"The Seller certifies that the Seller does not know of any wells on the described real 
9.13 	property."
9.14 	(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate 
9.15 	required by this subdivision shall be signed by the buyer or a person authorized to act on 
9.16 	behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure 
9.17 	certificate is not required if the following statement appears on the deed followed by the 
9.18 	signature of the grantee or, if there is more than one grantee, the signature of at least one 
9.19 	of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the 
9.20 	described real property." The statement and signature of the grantee may be on the front or 
9.21 	back of the deed or on an attached sheet and an acknowledgment of the statement by the 
9.22 	grantee is not required for the deed to be recordable.
9.23 	(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
9.24 	(1) that consists solely of a sale or transfer of severed mineral interests; or
9.25 	(2) that consists of an individual condominium unit as described in chapters 515 and 
9.26 	515B.
9.27 	(f) For an area owned in common under chapter 515 or 515B the association or other 
9.28 	responsible person must report to the commissioner by July 1, 1992, the location and status 
9.29 	of all wells in the common area. The association or other responsible person must notify 
9.30 	the commissioner within 30 days of any change in the reported status of wells.
9.31 	(g) If the seller fails to provide a required well disclosure certificate, the buyer, or a 
9.32 	person authorized to act on behalf of the buyer, may sign a well disclosure certificate based 
10.1 	on the information provided on the disclosure statement required by this section or based 
10.2 	on other available information.
10.3 	(h) A county recorder or registrar of titles may not record a deed or other instrument of 
10.4 	conveyance dated after October 31, 1990, for which a certificate of value is required under 
10.5 	section 272.115, or any deed or other instrument of conveyance dated after October 31, 
10.6 	1990, from a governmental body exempt from the payment of state deed tax, unless the 
10.7 	deed or other instrument of conveyance contains the statement made in accordance with 
10.8 	paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all the 
10.9 	information required by paragraph (b) or (d). The county recorder or registrar of titles must 
10.10 	not accept a certificate unless it contains all the required information. The county recorder 
10.11 	or registrar of titles shall note on each deed or other instrument of conveyance accompanied 
10.12 	by a well disclosure certificate that the well disclosure certificate was received. The notation 
10.13 	must include the statement "No wells on property" if the disclosure certificate states there 
10.14 	are no wells on the property. The well disclosure certificate shall not be filed or recorded 
10.15 	in the records maintained by the county recorder or registrar of titles. After noting "No wells 
10.16 	on property" on the deed or other instrument of conveyance, the county recorder or registrar 
10.17 	of titles shall destroy or return to the buyer the well disclosure certificate. The county 
10.18 	recorder or registrar of titles shall collect from the buyer or the person seeking to record a 
10.19 	deed or other instrument of conveyance, a fee of $50 $54 for receipt of a completed well 
10.20 	disclosure certificate. By the tenth day of each month, the county recorder or registrar of 
10.21 	titles shall transmit the well disclosure certificates to the commissioner of health. By the 
10.22 	tenth day after the end of each calendar quarter, the county recorder or registrar of titles 
10.23 	shall transmit to the commissioner of health $42.50 $46.50 of the fee for each well disclosure 
10.24 	certificate received during the quarter. The commissioner shall maintain the well disclosure 
10.25 	certificate for at least six years. The commissioner may store the certificate as an electronic 
10.26 	image. A copy of that image shall be as valid as the original.
10.27 	(i) No new well disclosure certificate is required under this subdivision if the buyer or 
10.28 	seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed or 
10.29 	other instrument of conveyance that the status and number of wells on the property have 
10.30 	not changed since the last previously filed well disclosure certificate. The following 
10.31 	statement, if followed by the signature of the person making the statement, is sufficient to 
10.32 	comply with the certification requirement of this paragraph: "I am familiar with the property 
10.33 	described in this instrument and I certify that the status and number of wells on the described 
10.34 	real property have not changed since the last previously filed well disclosure certificate." 
10.35 	The certification and signature may be on the front or back of the deed or on an attached 
11.1 	sheet and an acknowledgment of the statement is not required for the deed or other instrument 
11.2 	of conveyance to be recordable.
11.3 	(j) The commissioner in consultation with county recorders shall prescribe the form for 
11.4 	a well disclosure certificate and provide well disclosure certificate forms to county recorders 
11.5 	and registrars of titles and other interested persons.
11.6 	(k) Failure to comply with a requirement of this subdivision does not impair:
11.7 	(1) the validity of a deed or other instrument of conveyance as between the parties to 
11.8 	the deed or instrument or as to any other person who otherwise would be bound by the deed 
11.9 	or instrument; or
11.10 	(2) the record, as notice, of any deed or other instrument of conveyance accepted for 
11.11 	filing or recording contrary to the provisions of this subdivision.

11.12 	Sec. 9. Minnesota Statutes 2024, section 103I.525, subdivision 2, is amended to read:
11.13 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
11.14 	of a well contractor is $75 $100. The commissioner may not act on an application until the 
11.15 	application fee is paid.
11.16 	(b) The renewal fee for certification as a representative of a well contractor is $75 $100. 
11.17 	The commissioner may not renew a certification until the renewal fee is paid.
11.18 	(c) A certified representative must file an application and a renewal application fee to 
11.19 	renew the certification by the date stated in the certification. The renewal application must 
11.20 	include information that the certified representative has met continuing education 
11.21 	requirements established by the commissioner by rule.

11.22 	Sec. 10. Minnesota Statutes 2024, section 103I.525, subdivision 6, is amended to read:
11.23 		Subd. 6.License fee. The fee for a well contractor's license is $250 $300.

11.24 	Sec. 11. Minnesota Statutes 2024, section 103I.525, subdivision 8, is amended to read:
11.25 		Subd. 8.Renewal. (a) A licensee must file an application and a renewal application fee 
11.26 	to renew the license by the date stated in the license.
11.27 	(b) The renewal application fee for a well contractor's license is $250 $300.
11.28 	(c) The renewal application must include information that the certified representative 
11.29 	of the applicant has met continuing education requirements established by the commissioner 
11.30 	by rule.
12.1 	(d) At the time of the renewal, the commissioner must have on file all properly completed 
12.2 	well and boring construction reports, well and boring sealing reports, reports of elevator 
12.3 	borings, water sample analysis reports, well and boring permits, and well notifications for 
12.4 	work conducted by the licensee since the last license renewal.

12.5 	Sec. 12. Minnesota Statutes 2024, section 103I.531, subdivision 2, is amended to read:
12.6 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
12.7 	of a limited well/boring contractor is $75 $100. The commissioner may not act on an 
12.8 	application until the application fee is paid.
12.9 	(b) The renewal fee for certification as a representative of a limited well/boring contractor 
12.10 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
12.11 	(c) The fee for three or more limited well/boring contractor certifications is $225 $275.
12.12 	(d) A certified representative must file an application and a renewal application fee to 
12.13 	renew the certification by the date stated in the certification. The renewal application must 
12.14 	include information that the certified representative has met continuing education 
12.15 	requirements established by the commissioner by rule.

12.16 	Sec. 13. Minnesota Statutes 2024, section 103I.531, subdivision 6, is amended to read:
12.17 		Subd. 6.License fee. The fee for a limited well/boring contractor's license is $75 $100. 
12.18 	The fee for three or more limited well/boring contractor licenses is $225 $275.

12.19 	Sec. 14. Minnesota Statutes 2024, section 103I.531, subdivision 8, is amended to read:
12.20 		Subd. 8.Renewal. (a) A person must file an application and a renewal application fee 
12.21 	to renew the limited well/boring contractor's license by the date stated in the license.
12.22 	(b) The renewal application fee for a limited well/boring contractor's license is $75 $100.
12.23 	(c) The renewal application must include information that the certified representative 
12.24 	of the applicant has met continuing education requirements established by the commissioner 
12.25 	by rule.
12.26 	(d) At the time of the renewal, the commissioner must have on file all properly completed 
12.27 	well and boring construction reports, well and boring sealing reports, well and boring 
12.28 	permits, water quality sample reports, and well notifications for work conducted by the 
12.29 	licensee since the last license renewal.

13.1 	Sec. 15. Minnesota Statutes 2024, section 103I.535, subdivision 2, is amended to read:
13.2 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
13.3 	of an elevator boring contractor is $75 $100. The commissioner may not act on an application 
13.4 	until the application fee is paid.
13.5 	(b) The renewal fee for certification as a representative of an elevator boring contractor 
13.6 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
13.7 	(c) A certified representative must file an application and a renewal application fee to 
13.8 	renew the certification by the date stated in the certification. The renewal application must 
13.9 	include information that the certified representative has met continuing education 
13.10 	requirements established by the commissioner by rule.

13.11 	Sec. 16. Minnesota Statutes 2024, section 103I.535, subdivision 6, is amended to read:
13.12 		Subd. 6.License fee. The fee for an elevator boring contractor's license is $75 $100.

13.13 	Sec. 17. Minnesota Statutes 2024, section 103I.535, subdivision 8, is amended to read:
13.14 		Subd. 8.Renewal. (a) A person must file an application and a renewal application fee 
13.15 	to renew the license by the date stated in the license.
13.16 	(b) The renewal application fee for an elevator boring contractor's license is $75 $100.
13.17 	(c) The renewal application must include information that the certified representative 
13.18 	of the applicant has met continuing education requirements established by the commissioner 
13.19 	by rule.
13.20 	(d) At the time of renewal, the commissioner must have on file all reports and permits 
13.21 	for elevator boring work conducted by the licensee since the last license renewal.

13.22 	Sec. 18. Minnesota Statutes 2024, section 103I.541, subdivision 2b, is amended to read:
13.23 		Subd. 2b.Issuance of license. If a person employs a certified representative, submits 
13.24 	the bond under subdivision 3, and pays the license fee of $75 $100 for an environmental 
13.25 	well contractor license, the commissioner shall issue an environmental well contractor 
13.26 	license to the applicant. The fee for an individual registration is $75 $100. The commissioner 
13.27 	may not act on an application until the application fee is paid.

14.1 	Sec. 19. Minnesota Statutes 2024, section 103I.541, subdivision 2c, is amended to read:
14.2 		Subd. 2c.Certification fee. (a) The application fee for certification as a representative 
14.3 	of an environmental well contractor is $75 $100. The commissioner may not act on an 
14.4 	application until the application fee is paid.
14.5 	(b) The renewal fee for certification as a representative of an environmental well 
14.6 	contractor is $75 $100. The commissioner may not renew a certification until the renewal 
14.7 	fee is paid.
14.8 	(c) A certified representative must file an application and a renewal application fee to 
14.9 	renew the certification by the date stated in the certification. The renewal application must 
14.10 	include information that the certified representative has met continuing education 
14.11 	requirements established by the commissioner by rule.

14.12 	Sec. 20. Minnesota Statutes 2024, section 103I.541, subdivision 4, is amended to read:
14.13 		Subd. 4.License renewal. (a) A person must file an application and a renewal application 
14.14 	fee to renew the license by the date stated in the license.
14.15 	(b) The renewal application fee for an environmental well contractor's license is $75
14.16 	$100.
14.17 	(c) The renewal application must include information that the certified representative 
14.18 	of the applicant has met continuing education requirements established by the commissioner 
14.19 	by rule.
14.20 	(d) At the time of the renewal, the commissioner must have on file all well and boring 
14.21 	construction reports, well and boring sealing reports, well permits, and notifications for 
14.22 	work conducted by the licensed person since the last license renewal.

14.23 	Sec. 21. Minnesota Statutes 2024, section 103I.545, subdivision 1, is amended to read:
14.24 		Subdivision 1.Drilling machine. (a) A person may not use a drilling machine such as 
14.25 	a cable tool, rotary tool, hollow rod tool, or auger for a drilling activity requiring a license 
14.26 	under this chapter unless the drilling machine is registered with the commissioner.
14.27 	(b) A person must apply for the registration on forms prescribed by the commissioner 
14.28 	and submit a $75 $125 registration fee.
14.29 	(c) A registration is valid for one year.

15.1 	Sec. 22. Minnesota Statutes 2024, section 103I.545, subdivision 2, is amended to read:
15.2 		Subd. 2.Hoist. (a) A person may not use a machine such as a hoist for an activity 
15.3 	requiring a license under this chapter to repair wells or borings, seal wells or borings, or 
15.4 	install pumps unless the machine is registered with the commissioner.
15.5 	(b) A person must apply for the registration on forms prescribed by the commissioner 
15.6 	and submit a $75 $125 registration fee.
15.7 	(c) A registration is valid for one year.

15.8 	Sec. 23. Minnesota Statutes 2024, section 103I.601, subdivision 2, is amended to read:
15.9 		Subd. 2.License required to make borings. (a) Except as provided in paragraph (d), 
15.10 	a person must not make an exploratory boring without an explorer's license. The fee for an 
15.11 	explorer's license is $75 $100. The explorer's license is valid until the date prescribed in the 
15.12 	license by the commissioner.
15.13 	(b) A person must file an application and renewal application fee to renew the explorer's 
15.14 	license by the date stated in the license. The renewal application fee is $75 $100.
15.15 	(c) If the licensee submits an application fee after the required renewal date, the licensee:
15.16 	(1) must include a late fee of $75; and
15.17 	(2) may not conduct activities authorized by an explorer's license until the renewal 
15.18 	application, renewal application fee, late fee, and sealing reports required in subdivision 9 
15.19 	are submitted.
15.20 	(d) An explorer must designate a responsible individual to supervise and oversee the 
15.21 	making of exploratory borings.
15.22 	(1) Before an individual supervises or oversees an exploratory boring, the individual 
15.23 	must file an application and application fee of $75 $100 to qualify as a certified responsible 
15.24 	individual.
15.25 	(2) The individual must take and pass an examination relating to construction, location, 
15.26 	and sealing of exploratory borings. A professional engineer or geoscientist licensed under 
15.27 	sections 326.02 to 326.15 or a professional geologist certified by the American Institute of 
15.28 	Professional Geologists is not required to take the examination required in this subdivision, 
15.29 	but must be certified as a responsible individual to supervise an exploratory boring.
15.30 	(3) The individual must file an application and a renewal fee of $75 $100 to renew the 
15.31 	responsible individual's certification by the date stated in the certification. If the certified 
16.1 	responsible individual submits an application fee after the renewal date, the certified 
16.2 	responsible individual must include a late fee of $75 and may not supervise or oversee 
16.3 	exploratory borings until the renewal application, application fee, and late fee are submitted.

16.4 	Sec. 24. Minnesota Statutes 2024, section 103I.601, subdivision 4, is amended to read:
16.5 		Subd. 4.Notification and map of borings. (a) By ten days before beginning exploratory 
16.6 	boring, an explorer must submit to the commissioner of health a notification of the proposed 
16.7 	boring map and a fee of $275 $325 for each boring constructed.
16.8 	(b) By ten days before beginning exploratory boring, an explorer must submit to the 
16.9 	commissioners of health and natural resources a county road map on a single sheet of paper 
16.10 	that is 8-1/2 by 11 inches in size and having a scale of one-half inch equal to one mile, as 
16.11 	prepared by the Department of Transportation, or a 7.5 minute series topographic map 
16.12 	(1:24,000 scale), as prepared by the United States Geological Survey, showing the location 
16.13 	of each proposed exploratory boring to the nearest estimated 40 acre parcel. Exploratory 
16.14 	boring that is proposed on the map may not be commenced later than 180 days after 
16.15 	submission of the map, unless a new map is submitted.

16.16 	Sec. 25. [144.063] DEMENTIA SERVICES PROGRAM ESTABLISHED.
16.17 	The commissioner of health shall establish the dementia services program to:
16.18 	(1) facilitate the coordination and support of:
16.19 	(i) state-funded policies and programs that relate to Alzheimer's disease and related 
16.20 	forms of dementia;
16.21 	(ii) outreach programs and services between state agencies, local public health 
16.22 	departments, Tribal Nations, educational institutions, and community groups for the purpose 
16.23 	of fostering public awareness and education regarding Alzheimer's disease and related forms 
16.24 	of dementia; and
16.25 	(iii) services and activities between groups that are interested in dementia research, 
16.26 	programs, and services, including area agencies on aging, service providers, advocacy 
16.27 	groups, legal services, emergency personnel, law enforcement, local public health 
16.28 	departments, Tribal Nations, and state colleges and universities;
16.29 	(2) facilitate the coordination, review, publication, and implementation of and updates 
16.30 	to the Minnesota Dementia Strategic Plan;
17.1 	(3) collect and analyze data related to the impact of Alzheimer's disease and related 
17.2 	forms of dementia in Minnesota; and
17.3 	(4) incorporate early detection and risk reduction strategies into existing department-led 
17.4 	public health programs.

17.5 	Sec. 26. Minnesota Statutes 2024, section 144.1205, subdivision 2, is amended to read:
17.6 		Subd. 2.Initial and annual fee. (a) A licensee must pay an initial fee that is equivalent 
17.7 	to the annual fee upon issuance of the initial license.
17.8 	(b) A licensee must pay an annual fee at least 60 days before the anniversary date of the 
17.9 	issuance of the license. The annual fee is as follows:

17.10	TYPE
		LICENSE FEE
	
17.1217.11
	Academic broad scope - type A, B, or C
		$25,896
$34,500
		
17.1417.13
	Academic broad scope - type A, B, or C (4-8 locations)
		$31,075
$41,400
		
17.1617.15
	Academic broad scope - type A, B, or C (9 or more locations)
		$36,254
$48,300
		
17.1817.17
	Medical broad scope - type A
		$25,896
$34,500
		
17.2017.19
	Medical broad scope - type A (4-8 locations)
		$31,075
$41,400
		
17.2217.21
	Medical broad scope - type A (9 or more locations)
		$36,254
$48,300
		
17.23
17.24
17.25	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$4,784
$6,600
		
17.26
17.27
17.28	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
		
17.29
17.30
17.31	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
		
17.3317.32
	Teletherapy
		$11,648
$15,500
		
17.3517.34
	Gamma knife
		$11,648
$15,500
		
17.3717.36
	Veterinary medicine
		$2,600
$3,500
		
17.3917.38
	In vitro testing lab
		$2,600
$3,500
		
17.4117.40
	Nuclear pharmacy
		$11,440
$15,300
		
18.218.1
	Nuclear pharmacy (5 or more locations)
		$13,728
$18,300
		
18.418.3
	Radiopharmaceutical distribution (10 CFR 32.72)
		$4,992
$6,700
		
18.5
18.6	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$11,440
$15,300
		
18.7
18.8	Radiopharmaceutical processing and distribution (10 CFR 
32.72) (5 or more locations)
		$13,728
$18,300
		
18.1018.9	Medical sealed sources - distribution (10 CFR 32.74)
		$4,992
$6,700
		
18.11
18.12	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$11,440
$15,300
		
18.13
18.14	Medical sealed sources - processing and distribution (10 CFR 
32.74) (5 or more locations)
		$13,728
$18,300
		
18.1618.15
	Well logging - sealed sources
		$4,888
$6,600
		
18.17
18.18	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$2,600
$3,800
		
18.19
18.20	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (4-8 locations)
		$3,120
$4,500
		
18.21
18.22	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (9 or more locations)
		$3,640
$5,200
		
18.2418.23
	X-ray fluorescent analyzer
		$1,976
$2,700
		
18.2618.25
	Manufacturing and distribution - type A broad scope
		$25,896
$34,500
		
18.27
18.28	Manufacturing and distribution - type A broad scope (4-8 
locations)
		$31,075
$41,400
		
18.29
18.30	Manufacturing and distribution - type A broad scope (9 or more 
locations)
		$36,254
$48,300
		
18.3218.31
	Manufacturing and distribution - type B or C broad scope
		$22,880
$30,500
		
18.33
18.34	Manufacturing and distribution - type B or C broad scope (4-8 
locations)
		$27,456
$36,600
		
18.35
18.36	Manufacturing and distribution - type B or C broad scope (9 
or more locations)
		$32,032
$42,700
		
18.3818.37
	Manufacturing and distribution - other
		$6,864
$9,200
		
18.4018.39
	Manufacturing and distribution - other (4-8 locations)
		$8,236
$11,000
		
18.4218.41
	Manufacturing and distribution - other (9 or more locations)
		$9,609
$12,800
		
18.4418.43
	Nuclear laundry
		$24,232
$32,300
		
18.4618.45
	Decontamination services
		$6,448
$8,600
		
19.219.1
	Leak test services only
		$2,600
$3,500
		
19.419.3
	Instrument calibration service only
		$2,600
$3,500
		
19.619.5
	Service, maintenance, installation, source changes, etc.
		$6,448
$8,600
		
19.819.7
	Waste disposal service, prepackaged only
		$7,800
$10,400
		
19.1019.9	Waste disposal
		$10,816
$14,400
		
19.1219.11
	Distribution - general licensed devices (sealed sources)
		$2,288
$3,100
		
19.1419.13
	Distribution - general licensed material (unsealed sources)
		$1,456
$2,000
		
19.1619.15
	Industrial radiography - fixed or temporary location
		$12,792
$17,200
		
19.17
19.18	Industrial radiography - fixed or temporary location (5 or more 
locations)
		$16,629
$22,300
		
19.2019.19
	Irradiators, self-shielding
		$3,744
$5,000
		
19.2219.21
	Irradiators, other, less than 10,000 curies
		$6,968
$9,300
		
19.2419.23
	Research and development - type A, B, or C broad scope
		$12,376
$16,500
		
19.25
19.26	Research and development - type A, B, or C broad scope (4-8 
locations)
		$14,851
$19,800
		
19.27
19.28	Research and development - type A, B, or C broad scope (9 or 
more locations)
		$17,326
$23,100
		
19.3019.29
	Research and development - other
		$5,824
$7,800
		
19.3219.31
	Storage - no operations
		$2,600
$3,500
		
19.3419.33
	Source material - shielding
		$759
$1,100
		
19.3619.35
	Special nuclear material plutonium - neutron source in device
		$4,784
$6,400
		
19.37
19.38	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$4,784
$6,400
		
19.39
19.40	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$6,864
$9,200
		
19.4219.41
	Accelerator-produced radioactive material
		$4,992
$6,700
		
19.4419.43
	Nonprofit educational institutions
		$500
$700

20.1 	Sec. 27. Minnesota Statutes 2024, section 144.1205, subdivision 4, is amended to read:
20.2 		Subd. 4.Initial and renewal application fee. A licensee must pay an initial and a 
20.3 	renewal application fee according to this subdivision.

20.4	TYPE
	APPLICATION FEE
	
20.620.5
	Academic broad scope - type A, B, or C
		$6,808
$9,100
		
20.820.7
	Medical broad scope - type A
		$4,508
$6,000
		
20.920.10
20.11
	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$1,748
$2,350
		
20.1320.12
	Teletherapy
		$6,348
$8,450
		
20.1520.14
	Gamma knife
		$6,348
$8,450
		
20.1720.16
	Veterinary medicine
		$1,104
$1,500
		
20.1920.18
	In vitro testing lab
		$1,104
$1,500
		
20.2120.20
	Nuclear pharmacy
		$5,612
$7,500
		
20.2320.22
	Radiopharmaceutical distribution (10 CFR 32.72)
		$2,484
$3,350
		
20.24
20.25	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$5,612
$7,500
		
20.2720.26
	Medical sealed sources - distribution (10 CFR 32.74)
		$2,484
$3,350
		
20.28
20.29	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$5,612
$7,500
		
20.3120.30
	Well logging - sealed sources
		$1,840
$2,450
		
20.32
20.33	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$1,104
$1,500
		
20.3520.34
	X-ray fluorescent analyzer
		$671
$900
		
20.3720.36
	Manufacturing and distribution - type A, B, and C broad scope
		$6,854
$9,150
		
20.3920.38
	Manufacturing and distribution - other
		$2,668
$3,550
		
20.4120.40
	Nuclear laundry
		$11,592
$15,450
		
20.4320.42
	Decontamination services
		$3,036
$4,050
		
21.221.1
	Leak test services only
		$1,104
$1,500
		
21.421.3
	Instrument calibration service only
		$1,104
$1,500
		
21.621.5
	Service, maintenance, installation, source changes, etc.
		$3,036
$4,050
		
21.821.7
	Waste disposal service, prepackaged only
		$2,576
$3,450
		
21.1021.9	Waste disposal
		$1,748
$2,350
		
21.1221.11
	Distribution - general licensed devices (sealed sources)
		$1,012
$1,350
		
21.1421.13
	Distribution - general licensed material (unsealed sources)
		$598
$800
		
21.1621.15
	Industrial radiography - fixed or temporary location
		$3,036
$4,050
		
21.1821.17
	Irradiators, self-shielding
		$1,656
$2,250
		
21.2021.19
	Irradiators, other, less than 10,000 curies
		$3,404
$4,550
		
21.2221.21
	Research and development - type A, B, or C broad scope
		$5,704
$7,600
		
21.2421.23
	Research and development - other
		$2,760
$3,700
		
21.2621.25
	Storage - no operations
		$1,104
$1,500
		
21.2821.27
	Source material - shielding
		$156
$250
		
21.3021.29
	Special nuclear material plutonium - neutron source in device
		$1,380
$1,850
		
21.31
21.32	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$1,380
$1,850
		
21.33
21.34	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$2,668
$3,550
		
21.3621.35
	Accelerator-produced radioactive material
		$4,715
$6,300
		
21.3821.37
	Nonprofit educational institutions
		$345
$500

21.39 	Sec. 28. Minnesota Statutes 2024, section 144.1205, subdivision 8, is amended to read:
21.40 		Subd. 8.Reciprocity fee. A licensee submitting an application for reciprocal recognition 
21.41 	of a materials license issued by another agreement state or the United States Nuclear 
21.42 	Regulatory Commission for a period of 180 days or less during a calendar year must pay 
22.1 	$2,400 $3,200. For a period of 181 days or more, the licensee must obtain a license under 
22.2 	subdivision 4.

22.3 	Sec. 29. Minnesota Statutes 2024, section 144.1205, subdivision 9, is amended to read:
22.4 		Subd. 9.Fees for license amendments. A licensee must pay a fee of $600 $800 to 
22.5 	amend a license as follows:
22.6 	(1) to amend a license requiring review including, but not limited to, addition of isotopes, 
22.7 	procedure changes, new authorized users, or a new radiation safety officer; or
22.8 	(2) to amend a license requiring review and a site visit including, but not limited to, 
22.9 	facility move or addition of processes.

22.10 	Sec. 30. Minnesota Statutes 2024, section 144.1205, subdivision 10, is amended to read:
22.11 		Subd. 10.Fees for general license registrations. A person required to register generally 
22.12 	licensed devices according to Minnesota Rules, part 4731.3215, must pay an annual 
22.13 	registration fee of $450 $600.

22.14 	Sec. 31. Minnesota Statutes 2024, section 144.121, subdivision 1a, is amended to read:
22.15 		Subd. 1a.Fees for ionizing radiation-producing equipment. (a) A facility with ionizing 
22.16 	radiation-producing equipment and other sources of ionizing radiation must pay an initial 
22.17 	or annual renewal registration fee consisting of a base facility fee of $100 $155 and an 
22.18 	additional fee for each x-ray tube, as follows:

22.1922.20	(1)
	medical or veterinary equipment
	$
	100
130
		
22.2122.22	(2)
	dental x-ray equipment
	$
	40
60
		
22.2322.24	(3)
	x-ray equipment not used on 
humans or animals
	$
	100
130
		
22.2522.26
22.27	(4)
	devices with sources of ionizing 
radiation not used on humans or 
animals
	$
	100
130
		
22.2822.29	(5)
	security screening system
	$
	100
160
		
22.3022.31	(6)
	radiation therapy and accelerator 
x-ray equipment
	$
	1,000
		
22.3222.33	(7)
	industrial accelerator x-ray 
equipment
	$
	300
		
23.1 	(b) A facility with radiation therapy and accelerator equipment must pay an initial or 
23.2 	annual registration fee of $500. A facility with an industrial accelerator must pay an initial 
23.3 	or annual registration fee of $150.
23.4 	(c) (b) Electron microscopy equipment is exempt from the registration fee requirements 
23.5 	of this section.
23.6 	(d) (c) For purposes of this section, a security screening system means ionizing 
23.7 	radiation-producing equipment designed and used for security screening of humans who 
23.8 	are in the custody of a correctional or detention facility, and used by the facility to image 
23.9 	and identify contraband items concealed within or on all sides of a human body. For purposes 
23.10 	of this section, a correctional or detention facility is a facility licensed under section 241.021 
23.11 	and operated by a state agency or political subdivision charged with detection, enforcement, 
23.12 	or incarceration in respect to state criminal and traffic laws. The commissioner shall adopt 
23.13 	rules to establish requirements for the use of security screening systems. Notwithstanding 
23.14 	section 14.125, the authority to adopt these rules does not expire.

23.15 	Sec. 32. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
23.16 	to read:
23.17 		Subd. 1e.Fee for service provider of ionizing radiation-producing equipment. A 
23.18 	service provider of ionizing radiation-producing equipment and other sources of ionizing 
23.19 	radiation must pay an initial or annual renewal fee of $115.

23.20 	Sec. 33. Minnesota Statutes 2024, section 144.121, subdivision 2, is amended to read:
23.21 		Subd. 2.Inspections. Periodic radiation safety inspections of the x-ray equipment and 
23.22 	other sources of ionizing radiation shall be made by the commissioner of health. The 
23.23 	frequency of safety inspections shall be prescribed by the commissioner on the basis of
23.24 	based on the frequency of radiation exposure risk to occupational and public health from
23.25 	use of the x-ray equipment and other source of ionizing radiation, provided that each source 
23.26 	shall be inspected at least once every four years.

23.27 	Sec. 34. Minnesota Statutes 2024, section 144.121, subdivision 5, is amended to read:
23.28 		Subd. 5.Examination for individual operating x-ray systems. (a) An individual in a 
23.29 	facility with x-ray systems for use on living humans that is registered under subdivision 1 
23.30 	may not operate, nor may the facility allow the individual to operate, x-ray systems unless 
23.31 	the individual has passed a national or state examination.
23.32 	(b) Individuals who may operate x-ray systems include:
24.1 	(1) an individual who has passed the American Registry of Radiologic Technologists 
24.2 	(ARRT) registry for radiography examination;
24.3 	(2) an individual who has passed the American Chiropractic Registry of Radiologic 
24.4 	Technologists (ACRRT) registry examination and is limited to radiography of spines and 
24.5 	extremities;
24.6 	(3) a registered limited scope x-ray operator and a registered bone densitometry equipment 
24.7 	operator who passed the examination requirements in paragraphs (d) and (e) and practices 
24.8 	according to subdivision 5a;
24.9 	(4) an x-ray operator who has the original certificate or the original letter of passing the 
24.10 	examination that was required before January 1, 2008, under Minnesota Statutes 2008, 
24.11 	section 144.121, subdivision 5a, paragraph (b), clause (1);
24.12 	(5) an individual who has passed the American Registry of Radiologic Technologists 
24.13 	(ARRT) registry for radiation therapy examination according to subdivision 5e;
24.14 	(6) a cardiovascular technologist according to subdivision 5c;
24.15 	(7) a nuclear medicine technologist according to subdivision 5d;
24.16 	(8) an individual who has passed the examination for a dental hygienist under section 
24.17 	150A.06 and only operates dental x-ray systems;
24.18 	(9) an individual who has passed the examination for a dental therapist under section 
24.19 	150A.06 and only operates dental x-ray systems;
24.20 	(10) an individual who has passed the examination for a dental assistant under section 
24.21 	150A.06 and only operates dental x-ray systems;
24.22 	(11) an individual who has passed the examination under Minnesota Rules, part 
24.23 	3100.8500, subpart 3 3100.1320, and only operates dental x-ray systems; and
24.24 	(12) a qualified practitioner who is licensed by a health-related licensing board with 
24.25 	active practice authority and is working within the practitioner's scope of practice.
24.26 	(c) Except for individuals under clauses (3) and (4), an individual who is participating 
24.27 	in a training or educational program in any of the occupations listed in paragraph (b) is 
24.28 	exempt from the examination requirement within the scope and for the duration of the 
24.29 	training or educational program.
24.30 	(d) The Minnesota examination for limited scope x-ray operators must include:
25.1 	(1) radiation protection, radiation physics and radiobiology, equipment operation and 
25.2 	quality assurance, image acquisition and technical evaluation, and patient interactions and 
25.3 	management; and
25.4 	(2) at least one of the following regions of the human anatomy: chest, extremities, skull 
25.5 	and sinus, spine, or podiatry. The examinations must include the anatomy of, and radiographic 
25.6 	positions and projections for, the specific regions.
25.7 	(e) The examination for bone densitometry equipment operators must include:
25.8 	(1) osteoporosis, bone physiology, bone health and patient education, patient preparation, 
25.9 	fundamental principals, biological effects of radiation, units of measurements, radiation 
25.10 	protection in bone densitometry, fundamentals of x-ray production, quality control, measuring 
25.11 	bone mineral testing, determining quality in bone mineral testing, file and database 
25.12 	management; and
25.13 	(2) dual x-ray absorptiometry scanning of the lumbar spine, proximal femur, and forearm. 
25.14 	The examination must include the anatomy, scan acquisition, and scan analysis for these 
25.15 	three procedures.
25.16 	(f) A limited scope x-ray operator, and a bone densitometry equipment operator, who 
25.17 	are required to take an examination under this subdivision must submit to the commissioner 
25.18 	a registration application for the examination and a $25 processing fee. The processing fee 
25.19 	shall be deposited in the state treasury and credited to the state government special revenue 
25.20 	fund.

25.21 	Sec. 35. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
25.22 	to read:
25.23 		Subd. 10.Service provider practice; service technician. (a) A service technician is a 
25.24 	service provider who performs one or more of the following, including but not limited to: 
25.25 	assembly, installation, calibration, equipment performance evaluation, preventive 
25.26 	maintenance, repair, replacement, or disabling of ionizing radiation-producing equipment 
25.27 	and other sources of ionizing radiation. A service technician may not perform an equipment 
25.28 	performance evaluation on computed tomography, medical cone beam computed tomography, 
25.29 	and fluoroscopy equipment.
25.30 	(b) In order to provide service technician services, a service provider must register with 
25.31 	the commissioner as a service technician, meet the applicable requirements in Minnesota 
25.32 	Rules, chapter 4732, and pay the fee in subdivision 1e.

26.1 	Sec. 36. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
26.2 	to read:
26.3 		Subd. 11.Service provider practice; vendor. (a) A vendor is a service provider who 
26.4 	performs one or more of the following services, including but not limited to: sales, leasing, 
26.5 	lending, transferring, disposal, or demonstration of ionizing radiation-producing equipment 
26.6 	and other sources of ionizing radiation.
26.7 	(b) In order to provide vendor services, a service provider must register with the 
26.8 	commissioner as a vendor, meet the applicable requirements in Minnesota Rules, chapter 
26.9 	4732, and pay the fee in subdivision 1e.

26.10 	Sec. 37. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
26.11 	to read:
26.12 		Subd. 12.Service provider practice; qualified medical physicist. (a) A qualified 
26.13 	medical physicist is a service provider who provides medical physics services and must be 
26.14 	certified in diagnostic medical physics, diagnostic radiological physics, radiological physics, 
26.15 	diagnostic imaging physics, or diagnostic radiology physics by the American Board of 
26.16 	Radiology, the American Board of Medical Physics, or the Canadian College of Physicists 
26.17 	in Medicine.
26.18 	(b) In order to provide medical physics services a service provider must register with 
26.19 	the commissioner as a qualified medical physicist, meet the applicable requirements in 
26.20 	Minnesota Rules, chapter 4732, and pay the fee in subdivision 1e.

26.21 	Sec. 38. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
26.22 	to read:
26.23 		Subd. 13.Service provider practice; qualified expert. (a) A qualified expert is a service 
26.24 	provider who provides expert physics services, and must be certified in the appropriate 
26.25 	fields or specialties in which physics services are provided by the American Board of Health 
26.26 	Physics, the American Board of Medical Physics, the American Board of Radiology, the 
26.27 	American Board of Science in Nuclear Medicine, or the Canadian College of Physicists in 
26.28 	Medicine.
26.29 	(b) In order to provide health physics services, a service provider must register with the 
26.30 	commissioner as a qualified expert, meet the applicable requirements in Minnesota Rules, 
26.31 	chapter 4732, and pay the fee in subdivision 1e.

27.1 	Sec. 39. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
27.2 	to read:
27.3 		Subd. 14.Service provider practice; physicist assistant. (a) A physicist assistant is a 
27.4 	service provider who provides expert physics or medical physics services under the 
27.5 	supervision of a qualified expert or a qualified medical physicist and must be deemed 
27.6 	competent by a qualified expert or a qualified medical physicist in the appropriate fields or 
27.7 	specialties in which services are provided.
27.8 	(b) In order to provide health physics or medical physics services under the supervision 
27.9 	of a qualified expert or a qualified medical physicist, a physicist assistant must register with 
27.10 	the commissioner as a physicist assistant, meet the applicable requirements in Minnesota 
27.11 	Rules, chapter 4732, and pay the fee under subdivision 1e.
27.12 	(c) Supervision as used in this subdivision refers to either personal or general supervision 
27.13 	of a physicist assistant by a qualified expert or a qualified medical physicist according to 
27.14 	Minnesota Rules, chapter 4732.

27.15 	Sec. 40. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
27.16 	to read:
27.17 		Subd. 15.Service provider compliance. A service provider registered with the 
27.18 	commissioner under Minnesota Rules, chapter 4732, must, upon renewal of registration, 
27.19 	comply with the applicable requirements under this section and submit the fee under 
27.20 	subdivision 1e.

27.21 	Sec. 41. Minnesota Statutes 2024, section 144.1215, is amended by adding a subdivision 
27.22 	to read:
27.23 		Subd. 5.Rulemaking authority. The commissioner shall adopt rules to implement this 
27.24 	section. Notwithstanding section 14.125, the authority to adopt these rules does not expire.

27.25 	Sec. 42. Minnesota Statutes 2024, section 144.1222, subdivision 1a, is amended to read:
27.26 		Subd. 1a.Fees. All plans and specifications for public pool and spa construction, 
27.27 	installation, or alteration or requests for a variance that are submitted to the commissioner 
27.28 	according to Minnesota Rules, part 4717.3975, shall be accompanied by the appropriate 
27.29 	fees. All public pool construction plans submitted for review after January 1, 2009, must 
27.30 	be certified by a professional engineer registered in the state of Minnesota. If the 
27.31 	commissioner determines, upon review of the plans, that inadequate fees were paid, the 
27.32 	necessary additional fees shall be paid before plan approval. For purposes of determining 
28.1 	fees, a project is defined as a proposal to construct or install a public pool, spa, special 
28.2 	purpose pool, or wading pool and all associated water treatment equipment and drains, 
28.3 	gutters, decks, water recreation features, spray pads, and those design and safety features 
28.4 	that are within five feet of any pool or spa. Plans submitted less than 30 days prior to 
28.5 	construction are subject to 50 percent of the original plan review fee. The commissioner 
28.6 	shall charge the following fees for plan review and inspection of public pools and spas and 
28.7 	for requests for variance from the public pool and spa rules:
28.8 	(1) each pool, $1,500 $1,600;
28.9 	(2) each spa pool, $800 $900;
28.10 	(3) each slide, $600 $650;
28.11 	(4) projects valued at $250,000 or more, the greater of the sum of the fees in clauses (1), 
28.12 	(2), and (3) or 0.5 percent of the documented estimated project cost to a maximum fee of 
28.13 	$15,000;
28.14 	(5) alterations to an existing pool without changing the size or configuration of the pool, 
28.15 	$600 $700;
28.16 	(6) removal or replacement of pool disinfection equipment only, $100 $200; and
28.17 	(7) request for variance from the public pool and spa rules, $500 $550.

28.18 	Sec. 43. [144.1223] REGISTERED SANITARIANS AND REGISTERED 
28.19 	ENVIRONMENTAL HEALTH SPECIALIST APPLICATION FEES.
28.20 	(a) Fees to be submitted with initial or renewal applications are as follows:
28.21 	(1) initial application fee, $55;
28.22 	(2) biennial renewal application fee, $55; and
28.23 	(3) penalty for late submission of renewal application, $20, if not renewed by designated 
28.24 	renewal date.
28.25 	(b) Additionally, a $5 technology fee must be paid with the initial registration or 
28.26 	registration renewal.

28.27 	Sec. 44. Minnesota Statutes 2024, section 144.125, subdivision 2, is amended to read:
28.28 		Subd. 2.Determination of tests to be administered. (a) The commissioner shall 
28.29 	periodically revise the list of tests to be administered for determining the presence of a 
28.30 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
29.1 	science, new and improved testing methods, or other factors that will improve the public 
29.2 	health. In determining whether a test must be administered, the commissioner shall take 
29.3 	into consideration the adequacy of analytical methods to detect the heritable or congenital 
29.4 	disorder, the ability to treat or prevent medical conditions caused by the heritable or 
29.5 	congenital disorder, and the severity of the medical conditions caused by the heritable or 
29.6 	congenital disorder. The list of tests to be performed may be revised if the changes are 
29.7 	recommended by the advisory committee established under section 144.1255, approved by 
29.8 	the commissioner, and published in the State Register. The revision is exempt from the 
29.9 	rulemaking requirements in chapter 14, and sections 14.385 and 14.386 do not apply.
29.10 	(b) The commissioner shall revise the list of tests to be administered for determining 
29.11 	the presence of a heritable or congenital disorder to include metachromatic leukodystrophy 
29.12 	(MLD).

29.13 	Sec. 45. Minnesota Statutes 2024, section 144.3831, subdivision 1, is amended to read:
29.14 		Subdivision 1.Fee setting. The commissioner of health may assess an annual fee of 
29.15 	$9.72 $15.22 for every service connection to a public water supply that is owned or operated 
29.16 	by a home rule charter city, a statutory city, a city of the first class, or a town. The 
29.17 	commissioner of health may also assess an annual fee for every service connection served 
29.18 	by a water user district defined in section 110A.02.

29.19 	Sec. 46. Minnesota Statutes 2024, section 144.55, subdivision 1a, is amended to read:
29.20 		Subd. 1a.License fee. The annual license fee for outpatient surgical centers is $1,512
29.21 	$1,966.

29.22 	Sec. 47. Minnesota Statutes 2024, section 144.554, is amended to read:
29.23 	144.554 HEALTH FACILITIES CONSTRUCTION PLAN SUBMITTAL AND 
29.24 	FEES.
29.25 	For hospitals, nursing homes, assisted living facilities, boarding care homes, residential 
29.26 	hospices, supervised living facilities, freestanding outpatient surgical centers, and end-stage 
29.27 	renal disease facilities, the commissioner shall collect a fee for the review and approval of 
29.28 	architectural, mechanical, and electrical plans and specifications submitted before 
29.29 	construction begins for each project relative to construction of new buildings, additions to 
29.30 	existing buildings, or remodeling or alterations of existing buildings. All fees collected in 
29.31 	this section shall be deposited in the state treasury and credited to the state government 
30.1 	special revenue fund. Fees must be paid at the time of submission of final plans for review 
30.2 	and are not refundable. The fee is calculated as follows:

30.3	Construction project total estimated cost
	Fee
	
30.4	$0 - $10,000
	$30 $45
	
30.5	$10,001 - $50,000
	$150 $225
	
30.6	$50,001 - $100,000
	$300 $450
	
30.7	$100,001 - $150,000
	$450 $675
	
30.8	$150,001 - $200,000
	$600 $900
	
30.9	$200,001 - $250,000
	$750 $1,125
	
30.10	$250,001 - $300,000
	$900 $1,350
	
30.11	$300,001 - $350,000
	$1,050 $1,575
	
30.12	$350,001 - $400,000
	$1,200 $1,800
	
30.13	$400,001 - $450,000
	$1,350 $2,025
	
30.14	$450,001 - $500,000
	$1,500 $2,250
	
30.15	$500,001 - $550,000
	$1,650 $2,475
	
30.16	$550,001 - $600,000
	$1,800 $2,700
	
30.17	$600,001 - $650,000
	$1,950 $2,925
	
30.18	$650,001 - $700,000
	$2,100 $3,150
	
30.19	$700,001 - $750,000
	$2,250 $3,375
	
30.20	$750,001 - $800,000
	$2,400 $3,600
	
30.21	$800,001 - $850,000
	$2,550 $3,825
	
30.22	$850,001 - $900,000
	$2,700 $4,050
	
30.23	$900,001 - $950,000
	$2,850 $4,275
	
30.24	$950,001 - $1,000,000
	$3,000 $4,500
	
30.25	$1,000,001 - $1,050,000
	$3,150 $4,725
	
30.26	$1,050,001 - $1,100,000
	$3,300 $4,950
	
30.27	$1,100,001 - $1,150,000
	$3,450 $5,175
	
30.28	$1,150,001 - $1,200,000
	$3,600 $5,400
	
30.29	$1,200,001 - $1,250,000
	$3,750 $5,625
	
30.30	$1,250,001 - $1,300,000
	$3,900 $5,850
	
30.31	$1,300,001 - $1,350,000
	$4,050 $6,075
	
30.32	$1,350,001 - $1,400,000
	$4,200 $6,300
	
30.33	$1,400,001 - $1,450,000
	$4,350 $6,525
	
30.34	$1,450,001 - $1,500,000
	$4,500 $6,750
	
30.35	$1,500,001 and over - $2,000,000
	$4,800 $7,200
	
30.36	$2,000,001 - $3,000,000
	$7,650
	
30.37	$3,000,001 - $4,000,000
	$8,100
	
31.1	$4,000,001 - $7,000,000
	$8,550
	
31.2	$7,000,001 - $15,000,000
	$9,000
	
31.3	$15,000,001 - $50,000,000
	$9,450
	
31.4	$50,000,001 and over
	$9,900

31.5 	Sec. 48. Minnesota Statutes 2024, section 144.562, subdivision 2, is amended to read:
31.6 		Subd. 2.Eligibility for license condition. (a) A hospital is not eligible to receive a 
31.7 	license condition for swing beds unless (1) it either has a licensed bed capacity of less than 
31.8 	50 beds defined in the federal Medicare regulations, Code of Federal Regulations, title 42, 
31.9 	section 482.66, or it has a licensed bed capacity of 50 beds or more and has swing beds that 
31.10 	were approved for Medicare reimbursement before May 1, 1985, or it has a licensed bed 
31.11 	capacity of less than 65 beds and the available nursing homes within 50 miles have had, in 
31.12 	the aggregate, an average occupancy rate of 96 percent or higher in the most recent two 
31.13 	years as documented on the statistical reports to the Department of Health; and (2) it is 
31.14 	located in a rural area as defined in the federal Medicare regulations, Code of Federal 
31.15 	Regulations, title 42, section 482.66.
31.16 	(b) Except for those critical access hospitals established under section 144.1483, clause 
31.17 	(9), and section 1820 of the federal Social Security Act, United States Code, title 42, section 
31.18 	1395i-4, that have an attached nursing home or that owned a nursing home located in the 
31.19 	same municipality as of May 1, 2005, eligible hospitals are allowed a total number of days 
31.20 	of swing bed use per year as provided in paragraph (c). Critical access hospitals that have 
31.21 	an attached nursing home or that owned a nursing home located in the same municipality 
31.22 	as of May 1, 2005, are allowed swing bed use as provided in federal law. A critical access 
31.23 	hospital described in section 144.5621 is allowed an unlimited number of days of swing 
31.24 	bed use per year.
31.25 	(c) An eligible hospital is allowed a total of 3,000 days of swing bed use in calendar 
31.26 	year 2020. Beginning in calendar year 2021, and for each subsequent calendar year until 
31.27 	calendar year 2027, the total number of days of swing bed use per year is increased by 200 
31.28 	swing bed use days. Beginning in calendar year 2028, an eligible hospital is allowed a total 
31.29 	of 4,500 days of swing bed use per year.
31.30 	(d) Days of swing bed use for medical care that an eligible hospital has determined are 
31.31 	charity care shall not count toward the applicable limit in paragraph (b) or (c). For purposes 
31.32 	of this paragraph, "charity care" means care that an eligible hospital provided for free or at 
31.33 	a discount to persons who cannot afford to pay and for which the eligible hospital did not 
31.34 	expect payment.
32.1 	(e) Days of swing bed use for care of a person who has been denied admission to every 
32.2 	Medicare-certified skilled nursing facility within 25 miles of the eligible hospital shall not 
32.3 	count toward the applicable limit in paragraphs (b) and (c). Eligible hospitals must maintain 
32.4 	documentation that they have contacted each skilled nursing facility within 25 miles to 
32.5 	determine if any skilled nursing facility beds are available and if the skilled nursing facilities 
32.6 	are willing to admit the patient. Skilled nursing facilities that are contacted must admit the 
32.7 	patient or deny admission within 24 hours of being contacted by the eligible hospital. Failure 
32.8 	to respond within 24 hours is deemed a denial of admission.
32.9 	(f) Except for critical access hospitals that have an attached nursing home or that owned 
32.10 	a nursing home located in the same municipality as of May 1, 2005, the commissioner of 
32.11 	health may approve swing bed use beyond 2,000 days as long as there are no Medicare 
32.12 	certified skilled nursing facility beds available within 25 miles of that hospital that are 
32.13 	willing to admit the patient and the patient agrees to the referral being sent to the skilled 
32.14 	nursing facility. Critical access hospitals exceeding 2,000 swing bed days must maintain 
32.15 	documentation that they have contacted skilled nursing facilities within 25 miles to determine 
32.16 	if any skilled nursing facility beds are available that are willing to admit the patient and the 
32.17 	patient agrees to the referral being sent to the skilled nursing facility. This paragraph expires 
32.18 	January 1, 2020.
32.19 	(g) After reaching 2,000 days of swing bed use in a year, an eligible hospital to which 
32.20 	this limit applies may admit six additional patients to swing beds each year without seeking 
32.21 	approval from the commissioner or being in violation of this subdivision. These six swing 
32.22 	bed admissions are exempt from the limit of 2,000 annual swing bed days for hospitals 
32.23 	subject to this limit. This paragraph expires January 1, 2020.
32.24 	(h) A health care system that is in full compliance with this subdivision may allocate its 
32.25 	total limit of swing bed days among the hospitals within the system, provided that no hospital 
32.26 	in the system without an attached nursing home may exceed 2,000 swing bed days per year. 
32.27 	This paragraph expires January 1, 2020.

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

32.31 	Sec. 49. Minnesota Statutes 2024, section 144.562, subdivision 3, is amended to read:
32.32 		Subd. 3.Approval of license condition. (a) The commissioner of health shall approve 
32.33 	a license condition for swing beds if the hospital meets all of the criteria of this subdivision.
33.1 	(b) The hospital must meet the eligibility criteria in subdivision 2.
33.2 	(c) The hospital must be in compliance with the Medicare conditions of participation 
33.3 	for swing beds under Code of Federal Regulations, title 42, section 482.66.
33.4 	(d) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
33.5 	the length of stay of a patient receiving services in a swing bed to not more than 40 days, 
33.6 	or the duration of Medicare eligibility, unless the commissioner of health approves a greater 
33.7 	length of stay in an emergency situation. To determine whether an emergency situation 
33.8 	exists, the commissioner shall require the hospital to provide documentation that continued 
33.9 	services in the swing bed are required by the patient; that no skilled nursing facility beds 
33.10 	are available within 25 miles from the patient's home, or in some more remote facility of 
33.11 	the resident's choice, that can provide the appropriate level of services required by the 
33.12 	patient; and that other alternative services are not available to meet the needs of the patient. 
33.13 	If the commissioner approves a greater length of stay, the hospital shall develop a plan 
33.14 	providing for the discharge of the patient upon the availability of a nursing home bed or 
33.15 	other services that meet the needs of the patient. Permission to extend a patient's length of 
33.16 	stay must be requested by the hospital at least ten days prior to the end of the maximum 
33.17 	length of stay.
33.18 	(e) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
33.19 	admission to a swing bed only to (1) patients who have been hospitalized and not yet 
33.20 	discharged from the facility, or (2) patients who are transferred directly from an acute care 
33.21 	hospital.
33.22 	(f) The hospital must agree, in writing, to report to the commissioner of health by 
33.23 	December 1, 1985, and annually thereafter, in a manner required by the commissioner (1) 
33.24 	the number of patients readmitted to a swing bed within 60 days of a patient's discharge 
33.25 	from the facility, (2) the hospital's charges for care in a swing bed during the reporting 
33.26 	period with a description of the care provided for the rate charged, and (3) the number of 
33.27 	beds used by the hospital for transitional care and similar subacute inpatient care.
33.28 	(g) The hospital must agree, in writing, to report statistical data on the utilization of the 
33.29 	swing beds on forms supplied by the commissioner. The data must include the number of 
33.30 	swing beds, the number of admissions to and discharges from swing beds, Medicare 
33.31 	reimbursed patient days, total patient days, and other information required by the 
33.32 	commissioner to assess the utilization of swing beds.

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

34.4 	Sec. 50. [144.5621] SWING BED APPROVAL; EXCEPTIONS.
34.5 	The conditions and limitations in section 144.562, paragraphs (d) and (e), do not apply 
34.6 	to any hospital located in Cook County that:
34.7 	(1) is designated as a critical access hospital under section 144.1483, clause (9), and 
34.8 	United States Code, title 42, section 1395i-4; and
34.9 	(2) has an attached nursing home.
34.10 	Any swing bed located in a hospital described in this section may be used to provide nursing 
34.11 	care without requiring a prior hospital stay. The nursing care provided to a patient in a swing 
34.12 	bed is a covered medical assistance service under section 256B.0625, subdivision 2b.

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

34.16 	Sec. 51. Minnesota Statutes 2024, section 144.563, is amended to read:
34.17 	144.563 NURSING SERVICES PROVIDED IN A HOSPITAL; PROHIBITED 
34.18 	PRACTICES.
34.19 	A hospital that has been granted a license condition under section 144.562or 144.5621 
34.20 	must not provide to patients not reimbursed by Medicare or medical assistance the types of 
34.21 	services that would be usually and customarily provided and reimbursed under medical 
34.22 	assistance or Medicare as services of a skilled nursing facility or intermediate care facility 
34.23 	for more than 42 days and only for patients who have been hospitalized and no longer require 
34.24 	an acute level of care. Permission to extend a patient's length of stay may be granted by the 
34.25 	commissioner if requested by the physician at least ten days prior to the end of the maximum 
34.26 	length of stay.

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

35.1 	Sec. 52. Minnesota Statutes 2024, section 144E.35, is amended to read:
35.2 	144E.35 REIMBURSEMENT TO AMBULANCE SERVICES FOR VOLUNTEER
35.3 	EDUCATION COSTS.
35.4 		Subdivision 1.Repayment for volunteer Reimbursement for education costs; 
35.5 	ambulance service eligibility. A licensed ambulance service shall be reimbursed by the 
35.6 	director for the necessary expense of the initial education of a volunteer ambulance attendant 
35.7 	upon successful completion by the attendant of an EMT education course, or a continuing 
35.8 	education course for EMT care, or both, which has been approved by the director, pursuant 
35.9 	to section 144E.285 (a) Except as provided in subdivision 3, the director must reimburse 
35.10 	all eligible Minnesota licensed ambulance services that apply for reimbursement under this 
35.11 	section for the necessary expenses of initial EMR and EMT education and EMR and EMT 
35.12 	continuing education for ambulance attendants who satisfy the criteria in subdivision 2. 
35.13 	Reimbursement may include tuition, transportation, food, lodging, hourly payment for the 
35.14 	time spent in the education course, and other necessary expenditures, except that in no 
35.15 	instance shall a volunteer licensed ambulance attendant service be reimbursed more than 
35.16 	$900:
35.17 	(1) $1,200 for an ambulance attendant's successful completion of an initial EMT education 
35.18 	course, and $375;
35.19 	(2) $400 for an ambulance attendant's successful completion of a an EMT continuing 
35.20 	education course;
35.21 	(3) $600 for an ambulance attendant's successful completion of an initial EMR education 
35.22 	course; and
35.23 	(4) $200 for an ambulance attendant's successful completion of an EMR continuing 
35.24 	education course.
35.25 	(b) To be eligible for reimbursement, a licensed ambulance service must have responded 
35.26 	to 5,000 or fewer calls in the most recent calendar year.
35.27 		Subd. 2.Reimbursement provisions Ambulance attendant criteria. Reimbursement 
35.28 	must be paid under provisions of this section when documentation is provided to the director 
35.29 	that the individualambulance attendant:
35.30 	(1) successfully completed an initial EMR or EMT education course approved by the 
35.31 	director under section 144E.285, a continuing education course for EMR or EMT care 
35.32 	approved by the director under section 144E.285, or both; and
36.1 	(2) has served for one year from the date of the final certification exam as an active 
36.2 	member of a Minnesota licensed ambulance service.
36.3 		Subd. 3.Discontinuance of reimbursement. If the state is unable to meet its financial 
36.4 	obligations under subdivision 1 as the obligations become due, the director must discontinue 
36.5 	reimbursing ambulance services for education costs until the state is again able to meet the 
36.6 	financial obligations under subdivision 1 as the obligations become due. An ambulance 
36.7 	service whose application is not approved due to lack of funding may resubmit the application 
36.8 	in the next fiscal year.

36.9 	Sec. 53. [144E.38] AMBULANCE SERVICE TRAINING AND STAFFING GRANT 
36.10 	PROGRAM.
36.11 		Subdivision 1.Definition. For purposes of this section, "employee" has the meaning 
36.12 	given in section 181.960, subdivision 2.
36.13 		Subd. 2.Grant program. The director must establish and administer a program to award 
36.14 	grants to eligible ambulance services for certain costs to train ambulance service employees 
36.15 	as emergency medical technicians and staff the ambulance service.
36.16 		Subd. 3.Eligible ambulance services. To be eligible for a grant under this section, an 
36.17 	ambulance service must:
36.18 	(1) be licensed under this chapter; and
36.19 	(2) in the calendar year prior to the year in which the ambulance service first applies for 
36.20 	a grant under this section, have had at least 50 percent of its staffing provided by emergency 
36.21 	medical technicians.
36.22 		Subd. 4.Application. An eligible ambulance service seeking a grant under this section 
36.23 	must apply to the director in a form and manner and according to a timeline specified by 
36.24 	the director. In its application, the eligible ambulance service must specify the number of 
36.25 	individuals it plans to hire using the grant money, the number of employee training hours 
36.26 	it plans to fund using the grant money, and other information required by the director.
36.27 		Subd. 5.Allowable uses of grant money; maximum grant amount. (a) An ambulance 
36.28 	service must use grant money awarded under this section only for one or more of the 
36.29 	following:
36.30 	(1) tuition for employees attending an emergency medical technician (EMT) education 
36.31 	program approved by the director;
36.32 	(2) employee examination fees for EMT certification;
37.1 	(3) fees for background studies for new EMT employees; and
37.2 	(4) incurred wage and benefit costs of employees while attending an EMT education 
37.3 	program or program-related activities. Wage and benefit costs under this clause must be 
37.4 	commensurate with the wages and benefits the ambulance service provides to an entry-level 
37.5 	EMT and must not exceed $26 per hour.
37.6 	(b) The grant amount awarded to an ambulance service must not exceed the amount 
37.7 	needed for the costs in paragraph (a).
37.8 		Subd. 6.Grant program oversight. An ambulance service receiving a grant under this 
37.9 	section must provide the director with information necessary for the director to administer 
37.10 	and evaluate the grant program.
37.11 		Subd. 7.Reporting to municipalities. (a) In order to be eligible to receive a grant under 
37.12 	this section, an ambulance service must collect and provide prehospital care data for all 
37.13 	emergency responses provided by the licensee within the boundaries of each municipality 
37.14 	in the licensee's primary service area. For purposes of this subdivision, "municipality" means 
37.15 	a city or town.
37.16 	(b) A licensee must collect and report the following prehospital care data items as 
37.17 	provided in paragraph (a):
37.18 	(1) total number of emergency ambulance calls;
37.19 	(2) dispatch reason;
37.20 	(3) type of emergency service requested for each emergency ambulance call;
37.21 	(4) response mode to scene;
37.22 	(5) fee schedule for service;
37.23 	(6) percent transport disposition;
37.24 	(7) transport destination;
37.25 	(8) unit hour utilization by service area; and
37.26 	(9) mutual aid given and received by municipality.
37.27 	(c) A licensee must provide the report of prehospital care data of all data items listed in 
37.28 	paragraph (b) to the governing body of the municipality by February 15 of each year.

38.1 	Sec. 54. Minnesota Statutes 2024, section 144G.45, subdivision 6, is amended to read:
38.2 		Subd. 6.New construction; plans. (a) For all new licensure and construction beginning 
38.3 	on or after August 1, 2021, the following must be provided to the commissioner:
38.4 	(1) architectural and engineering plans and specifications for new construction must be 
38.5 	prepared and signed by architects and engineers who are registered in Minnesota. Final 
38.6 	working drawings and specifications for proposed construction must be submitted to the 
38.7 	commissioner for review and approval;
38.8 	(2) final architectural plans and specifications must include elevations and sections 
38.9 	through the building showing types of construction, and must indicate dimensions and 
38.10 	assignments of rooms and areas, room finishes, door types and hardware, elevations and 
38.11 	details of nurses' work areas, utility rooms, toilet and bathing areas, and large-scale layouts 
38.12 	of dietary and laundry areas. Plans must show the location of fixed equipment and sections 
38.13 	and details of elevators, chutes, and other conveying systems. Fire walls and smoke partitions 
38.14 	must be indicated. The roof plan must show all mechanical installations. The site plan must 
38.15 	indicate the proposed and existing buildings, topography, roadways, walks and utility service 
38.16 	lines; and
38.17 	(3) final mechanical and electrical plans and specifications must address the complete 
38.18 	layout and type of all installations, systems, and equipment to be provided. Heating plans 
38.19 	must include heating elements, piping, thermostatic controls, pumps, tanks, heat exchangers, 
38.20 	boilers, breeching, and accessories. Ventilation plans must include room air quantities, 
38.21 	ducts, fire and smoke dampers, exhaust fans, humidifiers, and air handling units. Plumbing 
38.22 	plans must include the fixtures and equipment fixture schedule; water supply and circulating 
38.23 	piping, pumps, tanks, riser diagrams, and building drains; the size, location, and elevation 
38.24 	of water and sewer services; and the building fire protection systems. Electrical plans must 
38.25 	include fixtures and equipment, receptacles, switches, power outlets, circuits, power and 
38.26 	light panels, transformers, and service feeders. Plans must show location of nurse call signals, 
38.27 	cable lines, fire alarm stations, and fire detectors and emergency lighting.
38.28 	(b) Unless construction is begun within one year after approval of the final working 
38.29 	drawing and specifications, the drawings must be resubmitted for review and approval.
38.30 	(c) The commissioner must be notified within 30 days before completion of construction 
38.31 	so that the commissioner can make arrangements for a final inspection by the commissioner.
38.32 	(d) At least one set of complete life safety plans, including changes resulting from 
38.33 	remodeling or alterations, must be kept on file in the facility.
39.1 	(e) For new construction beginning on or after July 1, 2025, the licensee must comply 
39.2 	with section 144.554 to submit applicable construction plans and fees to the commissioner.

39.3 	Sec. 55. [145.9231] EPILEPSY AND RELATED SEIZURE DISORDERS; DATA 
39.4 	COLLECTION AND STATE COORDINATION PLAN.
39.5 		Subdivision 1.Data collection. The commissioner of health must collect, analyze, and 
39.6 	report data on epilepsy and related seizure disorders in Minnesota. The data must include 
39.7 	number of diagnoses, clinical outcomes, mortality rates, and related population health data 
39.8 	for each calendar year. De-identified data must be made publicly available.
39.9 		Subd. 2.State coordination plan. The commissioner of health must use the data on 
39.10 	epilepsy and seizure disorders to inform statewide efforts and build coordinated systems 
39.11 	and partnerships to support community-led and culturally responsive strategies to ensure 
39.12 	that Minnesotans at risk for or living with epilepsy and seizure disorders and their caregivers 
39.13 	have equitable access to opportunities and resources to support their well-being and quality 
39.14 	of life. The commissioner of health must evaluate the data to determine the effectiveness 
39.15 	of the strategies.

39.16 	Sec. 56. Minnesota Statutes 2024, section 157.16, subdivision 2, is amended to read:
39.17 		Subd. 2.License renewal. Initial and renewal licenses for all food and beverage service 
39.18 	establishments, youth camps, hotels, motels, lodging establishments, public pools, and 
39.19 	resorts shall be issued on an annual basis. Any person who operates a place of business after 
39.20 	the expiration date of a license or without having submitted an application and paid the fee 
39.21 	shall be deemed to have violated the provisions of this chapter and shall be subject to 
39.22 	enforcement action, as provided in the Health Enforcement Consolidation Act, sections 
39.23 	144.989 to 144.993. In addition, a penalty of $60 $100 shall be added to the total of the 
39.24 	license fee for any food and beverage service establishment operating without a license as 
39.25 	a mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special 
39.26 	event food stand, and a penalty of $120 $200 shall be added to the total of the license fee 
39.27 	for all restaurants, food carts, hotels, motels, lodging establishments, youth camps, public 
39.28 	pools, and resorts operating without a license for a period of up to 30 days. A late fee of 
39.29 	$360 $450 shall be added to the license fee for establishments operating more than 30 days 
39.30 	without a license.

40.1 	Sec. 57. Minnesota Statutes 2024, section 157.16, subdivision 2a, is amended to read:
40.2 		Subd. 2a.Food manager certification. An applicant for certification or certification 
40.3 	renewal as a food manager must submit to the commissioner a $35 $45 nonrefundable 
40.4 	certification fee payable to the Department of Health. The commissioner shall issue a 
40.5 	duplicate certificate to replace a lost, destroyed, or mutilated certificate if the applicant 
40.6 	submits a completed application on a form provided by the commissioner for a duplicate 
40.7 	certificate and pays $20 $25 to the department for the cost of duplication. In addition, a $5 
40.8 	technology fee must be paid with the initial certification, certification renewal, or duplicate 
40.9 	certificate application.

40.10 	Sec. 58. Minnesota Statutes 2024, section 157.16, subdivision 3, is amended to read:
40.11 		Subd. 3.Establishment fees; definitions. (a) The following fees are required for food 
40.12 	and beverage service establishments, youth camps, hotels, motels, lodging establishments, 
40.13 	public pools, and resorts licensed under this chapter. Food and beverage service 
40.14 	establishments must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), 
40.15 	or (4). The license fee for new operators previously licensed under this chapter for the same 
40.16 	calendar year is one-half of the appropriate annual license fee, plus any penalty that may 
40.17 	be required. The license fee for operators opening on or after October 1 is one-half of the 
40.18 	appropriate annual license fee, plus any penalty that may be required.
40.19 	(b) All food and beverage service establishments, except special event food stands, and 
40.20 	all hotels, motels, lodging establishments, public pools, and resorts shall pay an annual base 
40.21 	fee of $165 $300.
40.22 	(c) A special event food stand shall pay a flat fee of $55 $75 annually. "Special event 
40.23 	food stand" means a fee category where food is prepared or served in conjunction with 
40.24 	celebrations, county fairs, or special events from a special event food stand as defined in 
40.25 	section 157.15.
40.26 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
40.27 	establishment, other than a special event food stand and a school concession stand, and each 
40.28 	hotel, motel, lodging establishment, public pool, and resort shall pay an additional annual 
40.29 	fee for each fee category, additional food service, or required additional inspection specified 
40.30 	in this paragraph:
40.31 	(1) Category 1 establishment, $110 $185. "Category 1 establishment" means a fee 
40.32 	category that provides one or more of the following items or is one of the listed 
40.33 	establishments or facilities:
41.1 	(i) serves prepackaged food that is served in the package;
41.2 	(ii) serves a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
41.3 	(iii) serves soft drinks, coffee, or nonalcoholic beverages;
41.4 	(iv) provides cleaning for eating, drinking, or cooking utensils, when the only food 
41.5 	served is prepared off site;
41.6 	(v) a food establishment where the method of food preparation meets the definition of 
41.7 	a low-risk establishment in section 157.20; or
41.8 	(vi) operates as a child care facility licensed under section 142B.05 and Minnesota Rules, 
41.9 	chapter 9503.
41.10 	(2) Category 2 establishment, $245 $430. "Category 2 establishment" means an 
41.11 	establishment that is not a Category 1 establishment and is either:
41.12 	(i) a food establishment where the method of food preparation meets the definition of a 
41.13 	medium-risk establishment in section 157.20; or
41.14 	(ii) an elementary or secondary school as defined in section 120A.05.
41.15 	(3) Category 3 establishment, $385 $670. "Category 3 establishment" means an 
41.16 	establishment that is not a Category 1 or Category 2 establishment and is either:
41.17 	(i) a food establishment where the method of food preparation meets the definition of a 
41.18 	high-risk establishment in section 157.20; or
41.19 	(ii) an establishment where 500 or more meals are prepared per day and served at one 
41.20 	or more separate locations.
41.21 	(4) Other food and beverage service, including food carts, mobile food units, seasonal 
41.22 	temporary food stands, and seasonal permanent food stands, $85 $150.
41.23 	(5) Lodging per sleeping accommodation unit, $11 $15, including hotels, motels, lodging 
41.24 	establishments, and resorts, up to a maximum of $1,100 $1,500. "Lodging per sleeping 
41.25 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
41.26 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
41.27 	beds in a dormitory.
41.28 	(6) First public pool, $355 $455; each additional public pool, $200 $300. "Public pool" 
41.29 	means a fee category that has the meaning given in section 144.1222, subdivision 4.
41.30 	(7) First spa, $200 $300; each additional spa, $110 $200. "Spa pool" means a fee category 
41.31 	that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
42.1 	(8) Private sewer or water, $60 $85. "Individual private water" means a fee category 
42.2 	with a water supply other than a community public water supply as defined in Minnesota 
42.3 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
42.4 	sewage treatment system which uses subsurface treatment and disposal.
42.5 	(9) Additional food service, $175 $250. "Additional food service" means a location at 
42.6 	a food service establishment, other than the primary food preparation and service area, used 
42.7 	to prepare or serve beverages or food to the public. Additional food service does not apply 
42.8 	to school concession stands.
42.9 	(10) Additional inspection fee, $250 $350. "Additional inspection fee" means a fee to 
42.10 	conduct the second inspection each year for elementary and secondary education facility 
42.11 	school lunch programs when required by the Richard B. Russell National School Lunch 
42.12 	Act.
42.13 	(11) HACCP verification, $175 $225. "HACCP verification" means an annual fee 
42.14 	category for a business that performs one or more specialized process that requires an 
42.15 	HACCP plan as required in chapter 31 and Minnesota Rules, chapter 4626.
42.16 	(e) A fee for review of construction plans must accompany the initial license application 
42.17 	for restaurants, hotels, motels, lodging establishments, resorts, seasonal food stands, and 
42.18 	mobile food units. Plans submitted less than 30 days prior to construction are subject to 50 
42.19 	percent of the original plan review fee. A fee for review of an HACCP plan for specialized 
42.20 	processing must be submitted and approved prior to preparing and serving the specialized 
42.21 	processed food for human consumption. The fees for construction plan reviews and HACCP 
42.22 	plan reviews are as follows:

42.23	Service Area
	Type
	Fee
	
42.2542.24
	Food
	category 1 establishment
	$400
$550
	
42.2742.26
		category 2 establishment
	$450
$750
	
42.2942.28
		category 3 food establishment
	$500
$800
	
42.3142.30
		additional food service
	$250
$400
	
42.3342.32
		HACCP Plan Review
	$500
$600
	
42.3542.34
	Transient food service
	food cart
	$250
$500
	
42.3742.36
		seasonal permanent food stand
	$250
$500
	
43.243.1
		seasonal temporary food stand
	$250
$500
	
43.443.3
		mobile food unit
	$350
$700
	
43.643.5
	Lodging
	less than 25 rooms
	$375
$450
	
43.843.7
		25 to less than 100 rooms
	$400
$500
	
43.1043.9		100 rooms or more
	$500
$600
	
43.1243.11
		less than five cabins
	$350
$400
	
43.1443.13
		five to less than ten cabins
	$400
$450
	
43.1643.15
		ten cabins or more
	$450
$500
	
43.17 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
43.18 	establishments, resorts, seasonal food stands, and mobile food units are extensively 
43.19 	remodeled, a fee must be submitted with the remodeling plans. The fee for this construction 
43.20 	plan review is as follows:

43.21	Service Area
	Type
	Fee
	
43.2343.22
	Food
	category 1 establishment
	$300
$450
	
43.2543.24
		category 2 establishment
	$350
$500
	
43.2743.26
		category 3 establishment
	$400
$550
	
43.2943.28
		additional food service
	$250
$400
	
43.3143.30
	Transient food service
	food cart
	$250
$400
	
43.3343.32
		seasonal permanent food stand
	$250
$400
	
43.3543.34
		seasonal temporary food stand
	$250
$400
	
43.3743.36
		mobile food unit
	$250
$400
	
43.3943.38
	Lodging
	less than 25 rooms
	$250
$300
	
43.4143.40
		25 to less than 100 rooms
	$300
$350
	
43.4343.42
		100 rooms or more
	$450
$500
	
44.244.1
		less than five cabins
	$250
$300
	
44.444.3
		five to less than ten cabins
	$350
$400
	
44.644.5
		ten cabins or more
	$400
$450
	
44.7 	(g) Special event food stands are not required to submit construction or remodeling plans 
44.8 	for review.
44.9 	(h) Youth camps shall pay an annual single fee for food and lodging as follows:
44.10 	(1) camps with up to 99 campers, $325 $375;
44.11 	(2) camps with 100 to 199 campers, $550 $600; and
44.12 	(3) camps with 200 or more campers, $750 $800.
44.13 	(i) A youth camp which pays fees under paragraph (d) is not required to pay fees under 
44.14 	paragraph (h).

44.15 	Sec. 59. Minnesota Statutes 2024, section 157.16, subdivision 3a, is amended to read:
44.16 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that operates a 
44.17 	licensed boarding establishment, food and beverage service establishment, seasonal temporary 
44.18 	or permanent food stand, special event food stand, mobile food unit, food cart, resort, hotel, 
44.19 	motel, or lodging establishment in Minnesota must submit to the commissioner a $40 $50
44.20 	annual statewide hospitality fee for each licensed activity. The fee for establishments licensed 
44.21 	by the Department of Health is required at the same time the licensure fee is due. For 
44.22 	establishments licensed by local governments, the fee is due by July 1 of each year.

44.23 	Sec. 60. Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to 
44.24 	read:
44.25 		Subd. 3b.Technology fee. Every food and beverage service establishment, youth camp, 
44.26 	hotel, motel, lodging establishment, public pool, and resort licensed under this chapter must 
44.27 	pay a $5 technology fee for each licensed activity for the initial license and with each 
44.28 	renewal.

44.29 	Sec. 61. Minnesota Statutes 2024, section 256B.0625, subdivision 2, is amended to read:
44.30 		Subd. 2.Skilled and intermediate nursing care. (a) Medical assistance covers skilled 
44.31 	nursing home services and services of intermediate care facilities, including training and 
44.32 	habilitation services, as defined in section 252.41, subdivision 3, for persons with 
45.1 	developmental disabilities who are residing in intermediate care facilities for persons with 
45.2 	developmental disabilities. Medical assistance must not be used to pay the costs of nursing 
45.3 	care provided to a patient in a swing bed as defined in section 144.562, unless (1) the facility 
45.4 	in which the swing bed is located is eligible as a sole community provider, as defined in 
45.5 	Code of Federal Regulations, title 42, section 412.92, or the facility is a public hospital 
45.6 	owned by a governmental entity with 15 or fewer licensed acute care beds; (2) the Centers 
45.7 	for Medicare and Medicaid Services approves the necessary state plan amendments; (3) the 
45.8 	patient was screened as provided by law; (4) the patient no longer requires acute care 
45.9 	services; and (5) no nursing home beds are available within 25 miles of the facility. The 
45.10 	commissioner shall exempt a facility from compliance with the sole community provider 
45.11 	requirement in clause (1) if, as of January 1, 2004, the facility had an agreement with the 
45.12 	commissioner to provide medical assistance swing bed services.
45.13 	(b) Medical assistance also covers up to ten days of nursing care provided to a patient 
45.14 	in a swing bed if: (1) the patient's physician, advanced practice registered nurse, or physician 
45.15 	assistant certifies that the patient has a terminal illness or condition that is likely to result 
45.16 	in death within 30 days and that moving the patient would not be in the best interests of the 
45.17 	patient and patient's family; (2) no open nursing home beds are available within 25 miles 
45.18 	of the facility; and (3) no open beds are available in any Medicare hospice program within 
45.19 	50 miles of the facility. The daily medical assistance payment for nursing care for the patient 
45.20 	in the swing bed is the statewide average medical assistance skilled nursing care per diem 
45.21 	as computed annually by the commissioner on July 1 of each year.

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

45.25 	Sec. 62. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
45.26 	to read:
45.27 		Subd. 2b.Nursing care provided to a patient in a swing bed. (a) Medical assistance 
45.28 	must not be used to pay the costs of nursing care provided to a patient in a swing bed as 
45.29 	defined in section 144.562, unless:
45.30 	(1) the facility where the swing bed is located is eligible as a sole community provider, 
45.31 	as defined in Code of Federal Regulations, title 42, section 412.92, or the facility is a public 
45.32 	hospital owned by a governmental entity with 15 or fewer licensed acute care beds;
45.33 	(2) the Centers for Medicare and Medicaid Services approves the necessary state plan 
45.34 	amendments;
46.1 	(3) the patient was screened as provided by law;
46.2 	(4) the patient no longer requires acute care services; and
46.3 	(5) no nursing home beds are available within 25 miles of the facility.
46.4 	(b) The commissioner shall exempt a facility from compliance with the sole community 
46.5 	provider requirement in paragraph (a), clause (1), if, as of January 1, 2004, the facility had 
46.6 	an agreement with the commissioner to provide medical assistance swing bed services.
46.7 	(c) Medical assistance also covers up to ten days of nursing care provided to a patient 
46.8 	in a swing bed if:
46.9 	(1) the patient's physician, advanced practice registered nurse, or physician assistant 
46.10 	certifies that the patient has a terminal illness or condition that is likely to result in death 
46.11 	within 30 days and that moving the patient would not be in the best interests of the patient 
46.12 	and patient's family;
46.13 	(2) no open nursing home beds are available within 25 miles of the facility; and
46.14 	(3) no open beds are available in any Medicare hospice program within 50 miles of the 
46.15 	facility.
46.16 	(d) The commissioner shall exempt any facility described under section 144.5621 from 
46.17 	compliance with the requirements of paragraph (a), clauses (3) and (5), and paragraph (c), 
46.18 	and medical assistance covers an unlimited number of days of nursing care provided to a 
46.19 	patient in a swing bed at a facility described under section 144.5621.
46.20 	(e) The daily medical assistance payment for nursing care for the patient in the swing 
46.21 	bed is the statewide average medical assistance skilled nursing care per diem as computed 
46.22 	annually by the commissioner on July 1 of each year.

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

46.26 	Sec. 63. Minnesota Statutes 2024, section 256R.01, is amended by adding a subdivision 
46.27 	to read:
46.28 		Subd. 1a.Payment rates for nursing care provided to a patient in a swing 
46.29 	bed. Payment rates paid to any hospital for nursing care provided to a patient in a swing 
46.30 	bed must be those rates established pursuant to section 256B.0625, subdivision 2b.

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

47.4 	Sec. 64. Minnesota Statutes 2024, section 326.72, subdivision 1, is amended to read:
47.5 		Subdivision 1.When license required. A person within the state intending to directly 
47.6 	perform or cause to be performed through subcontracting or similar delegation any 
47.7 	asbestos-related work either for financial gain or with respect to the person's own property 
47.8 	shall first apply for and obtain a license from the commissioner. The license shall be in 
47.9 	writing, be dated when issued, contain an expiration date, be signed by the commissioner, 
47.10 	and give the name and address of the person to whom it is issued.
47.11 	The domiciled owner of a single family residence is not required to hold a license or 
47.12 	pay a project permit fee to conduct asbestos-related work in the domiciled residence.
47.13 	Any person performing any asbestos-related work within the state must be licensed by 
47.14 	the commissioner, whether directly performing asbestos work or causing it to be performed 
47.15 	through subcontracting or similar delegation. A domiciled owner of a single-family residence 
47.16 	is not required to hold a license or pay a project permit fee to conduct asbestos-related work 
47.17 	in the domiciled residence.

47.18 	Sec. 65. Minnesota Statutes 2024, section 326.75, subdivision 3, is amended to read:
47.19 		Subd. 3.Permit fee. Five calendar days before beginning asbestos-related work, a person 
47.20 	shall pay a project permit fee to the commissioner equal to two three percent of the total 
47.21 	costs of the asbestos-related work. For asbestos-related work performed in single or 
47.22 	multifamily residences, of greater than ten but less than 260 linear feet of asbestos-containing 
47.23 	material on pipes, or greater than six but less than 160 square feet of asbestos-containing 
47.24 	material on other facility components, a person shall pay a project permit fee of $35 to the 
47.25 	commissioner.

47.26 	Sec. 66. Minnesota Statutes 2024, section 326.75, subdivision 3a, is amended to read:
47.27 		Subd. 3a.Asbestos-related training course permit fee. The commissioner shall establish 
47.28 	by rule a permit fee to be paid by A training course provider shall pay the commissioner a 
47.29 	fee of $500 on application for a training course permit or and $250 for the renewal of a 
47.30 	permit of each asbestos-related training course required for certification or registration.

48.1 	Sec. 67. Minnesota Statutes 2024, section 327.15, subdivision 3, is amended to read:
48.2 		Subd. 3.Fees, manufactured home parks and recreational camping areas. (a) The 
48.3 	following fees are required for manufactured home parks and recreational camping areas 
48.4 	licensed under this chapter. Fees collected under this section shall be deposited in the state 
48.5 	government special revenue fund. Recreational camping areas and manufactured home 
48.6 	parks shall pay the highest applicable base fee under paragraph (b). The license fee for new 
48.7 	operators of a manufactured home park or recreational camping area previously licensed 
48.8 	under this chapter for the same calendar year is one-half of the appropriate annual license 
48.9 	fee, plus any penalty that may be required. The license fee for operators opening on or after 
48.10 	October 1 is one-half of the appropriate annual license fee, plus any penalty that may be 
48.11 	required.
48.12 	(b) All manufactured home parks and recreational camping areas shall pay the following 
48.13 	annual base fee:
48.14 	(1) a manufactured home park, $165 $280; and
48.15 	(2) a recreational camping area with:
48.16 	(i) 24 or less sites, $55 $100;
48.17 	(ii) 25 to 99 sites, $230 $410; and
48.18 	(iii) 100 or more sites, $330 $610.
48.19 	In addition to the base fee, manufactured home parks and recreational camping areas shall 
48.20 	pay $5 $8 for each licensed site. This paragraph does not apply to special event recreational 
48.21 	camping areas. Operators of a manufactured home park or a recreational camping area also 
48.22 	licensed under section 157.16 for the same location shall pay only one base fee, whichever 
48.23 	is the highest of the base fees found in this section or section 157.16.
48.24 	(c) In addition to the fee in paragraph (b), each manufactured home park or recreational 
48.25 	camping area shall pay an additional annual fee for each fee category specified in this 
48.26 	paragraph:
48.27 	(1) Manufactured home parks and recreational camping areas with public swimming 
48.28 	pools and spas shall pay the appropriate fees specified in section 157.16.
48.29 	(2) Individual private sewer or water, $60 $85. "Individual private water" means a fee 
48.30 	category with a water supply other than a community public water supply as defined in 
48.31 	Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 
48.32 	subsurface sewage treatment system which uses subsurface treatment and disposal.
49.1 	(d) The following fees must accompany a plan review application for initial construction 
49.2 	of a manufactured home park or recreational camping area:
49.3 	(1) for initial construction of less than 25 sites, $375 $400;
49.4 	(2) for initial construction of 25 to 99 sites, $400 $425; and
49.5 	(3) for initial construction of 100 or more sites, $500 $525.
49.6 	(e) The following fees must accompany a plan review application when an existing 
49.7 	manufactured home park or recreational camping area is expanded:
49.8 	(1) for expansion of less than 25 sites, $250 $300;
49.9 	(2) for expansion of 25 to 99 sites, $300 $350; and
49.10 	(3) for expansion of 100 or more sites, $450 $500.

49.11 	Sec. 68. Minnesota Statutes 2024, section 327.15, subdivision 4, is amended to read:
49.12 		Subd. 4.Fees, special event recreational camping areas. (a) The following fees are 
49.13 	required for special event recreational camping areas licensed under this chapter.
49.14 	(b) All special event recreational camping areas shall pay an annual fee of $150 $250
49.15 	plus $1 $4 for each licensed site.
49.16 	(c) A special event recreational camping area shall pay a late fee of $360 $450 for failing 
49.17 	to obtain a license prior to operating.
49.18 	(d) The following fees must accompany a plan review application for initial construction 
49.19 	of a special event recreational camping area:
49.20 	(1) for initial construction of less than 25 special event recreational camping sites, $375
49.21 	$475;
49.22 	(2) for initial construction of 25 to 99 sites, $400 $500; and
49.23 	(3) for initial construction of 100 or more sites, $500 $600.
49.24 	(e) The following fees must accompany a plan review application for expansion of a 
49.25 	special event recreational camping area:
49.26 	(1) for expansion of less than 25 sites, $250 $300;
49.27 	(2) for expansion of 25 to 99 sites, $300 $350; and
49.28 	(3) for expansion of 100 or more sites, $450 $500.

50.1 	Sec. 69. Minnesota Statutes 2024, section 327.15, is amended by adding a subdivision to 
50.2 	read:
50.3 		Subd. 5.Technology fee. All manufactured home parks, recreational camping areas, 
50.4 	and special event camping areas must pay a $5 technology fee at initial licensing and upon 
50.5 	each renewal.

50.6 	Sec. 70. SPOKEN LANGUAGE HEALTH CARE INTERPRETER WORK GROUP.
 50.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
50.8 	the meanings given.
50.9 	(b) "Commissioner" means the commissioner of health.
50.10 	(c) "Common languages" means the 15 most frequent languages without regard to dialect 
50.11 	in Minnesota.
50.12 	(d) "Registered interpreter" means a spoken language interpreter who is listed on the 
50.13 	Department of Health's spoken language health care interpreter roster.
50.14 	(e) "Work group" means the spoken language health care interpreter work group 
50.15 	established in subdivision 2.
50.16 		Subd. 2.Composition. The commissioner shall, after receiving work group candidate 
50.17 	applications, appoint 15 members to the work group consisting of the following members:
50.18 	(1) three members who are interpreters listed on the Department of Health's spoken 
50.19 	language health care interpreter roster and who are Minnesota residents. Of these members: 
50.20 	(i) each must be an interpreter for a different language; (ii) at least one must have a national 
50.21 	certification credential; and (iii) at least one must have been listed on the roster as an 
50.22 	interpreter in a language other than the common languages and must have completed a 
50.23 	nationally recognized training program for health care interpreters that is, at a minimum, 
50.24 	40 hours in length;
50.25 	(2) three members representing limited English proficiency (LEP) individuals. Of these 
50.26 	members, two must represent LEP individuals who are not proficient in a common language 
50.27 	and one must represent LEP individuals who are proficient in a language that is not one of 
50.28 	the common languages;
50.29 	(3) one member representing a health plan company;
50.30 	(4) one member representing a Minnesota health system who is not an interpreter;
51.1 	(5) two members representing interpreter agencies, including one member representing 
51.2 	agencies whose main office is located outside the seven-county metropolitan area and one 
51.3 	member representing agencies whose main office is located within the seven-county 
51.4 	metropolitan area;
51.5 	(6) one member representing the Department of Health;
51.6 	(7) one member representing the Department of Human Services;
51.7 	(8) one member representing an interpreter training program or postsecondary educational 
51.8 	institution program providing interpreter courses or skills assessment;
51.9 	(9) one member who is affiliated with a Minnesota-based or Minnesota chapter of a 
51.10 	national or international organization representing interpreters; and
51.11 	(10) one member who is a licensed direct care health provider.
51.12 		Subd. 3.Duties. The work group must compile a list of recommendations to support 
51.13 	and improve access to the critical health care interpreting services provided across the state, 
51.14 	including but not limited to:
51.15 	(1) changing requirements for registered and certified interpreters to reflect changing 
51.16 	needs of the Minnesota health care community and emerging national standards of training, 
51.17 	competency, and testing;
51.18 	(2) addressing barriers for interpreters to gain access to the roster, including barriers to 
51.19 	interpreters of uncommon languages and interpreters in rural areas;
51.20 	(3) reimbursing spoken language health care interpreting;
51.21 	(4) identifying gaps in interpreter services in rural areas and recommending ways to 
51.22 	address interpreter training and funding needs;
51.23 	(5) providing training, certification, and continuing education programs;
51.24 	(6) convening a meeting of public and private sector representatives of the spoken 
51.25 	language health care interpreters community to identify ongoing sources of financial 
51.26 	assistance to aid individual interpreters in meeting interpreter training and testing registry 
51.27 	requirements;
51.28 	(7) conducting surveys of people receiving and providing interpreter services to 
51.29 	understand changing needs and consumer quality care; and
51.30 	(8) suggesting changes in requirements and qualifications on telehealth or remote 
51.31 	interpreting.
52.1 		Subd. 4.Compensation; expense reimbursement. Compensation shall be offered to 
52.2 	work group members not being compensated for their participation in work group activities 
52.3 	as part of their existing job duties. Work group members shall be compensated and 
52.4 	reimbursed for expenses for work group activities under section 15.059, subdivision 3.
52.5 		Subd. 5.Administrative support; meeting space; meeting facilitation. The 
52.6 	commissioner must provide meeting space and administrative support for the work group. 
52.7 	The commissioner may contract with a neutral independent consultant to provide this 
52.8 	administrative support and to facilitate and lead the meetings of the work group.
52.9 		Subd. 6.Deadline for appointments. The commissioner must appoint members to the 
52.10 	work group by August 15, 2025.
52.11 		Subd. 7.Expiration. This section expires on November 2, 2026, or upon submission 
52.12 	of the report required under subdivision 9, whichever is earlier.
52.13 		Subd. 8.Initial spoken language health care interpreter work group meetings. The 
52.14 	commissioner shall convene the first meeting of the work group by October 1, 2025. Prior 
52.15 	to the first meeting, work group members must receive survey results and evidence-based 
52.16 	research on interpreter services in Minnesota. During the first meetings, work group members 
52.17 	must receive survey results and consult with subject matter experts, including but not limited 
52.18 	to signed language interpreting experts, academic experts with knowledge of interpreting 
52.19 	research, and academic health experts to address specific gaps in spoken language health 
52.20 	care interpreting. The work group shall provide a minimum of two opportunities for public 
52.21 	comment. These opportunities shall be announced with at least four weeks' notice, with 
52.22 	publicity in the five most common languages in Minnesota. Interpreters for those same 
52.23 	languages shall be provided during the public comment opportunities.
52.24 		Subd. 9.Report. The commissioner must provide the chairs and ranking minority 
52.25 	members of the legislative committees with jurisdiction over health care interpreter services 
52.26 	with recommendations, including draft legislation and any statutory changes needed to 
52.27 	implement the recommendations, to improve and support access to health care interpreting 
52.28 	services statewide by November 1, 2026.

52.29 	Sec. 71. AFRICAN AMERICAN-FOCUSED HOMEPLACE GRANT PROGRAM.
 52.30 	(a) The commissioner of health must establish a grant program to strengthen and 
52.31 	implement the current model of the African American-focused Homeplace in Hennepin 
52.32 	County. The purpose of the model is to improve access to culturally centered healing and 
53.1 	care during pregnancy and the postpartum period, with the goal of improving maternal and 
53.2 	child health outcomes.
53.3 	(b) By December 15, 2026, the grantee must submit a report to the commissioner of 
53.4 	health on the implementation and progress of Homeplace in Hennepin County. The report 
53.5 	must outline outcomes achieved and recommendations for future funding and program 
53.6 	expansion.

53.7 	Sec. 72. RULEMAKING.
 53.8 	The Department of Health must adopt rules using the expedited process under Minnesota 
53.9 	Statutes, section 14.389, to amend certain parts in Minnesota Rules, chapter 4695, to conform 
53.10 	with the changes made in this act.

53.11 	Sec. 73. REPEALER.
 53.12 	(a) Minnesota Statutes 2024, sections 62J.824; and 103I.550, are repealed.
53.13 	(b) Minnesota Rules, part 4695.2900, is repealed.

53.14 	ARTICLE 2
53.15 	DEPARTMENT OF HEALTH POLICY

53.16 	Section 1. Minnesota Statutes 2024, section 62J.461, subdivision 3, is amended to read:
53.17 		Subd. 3.Reporting by covered entities to the commissioner. (a) Each 340B covered 
53.18 	entity shall report to the commissioner by April 1 of each year the following information 
53.19 	for transactions conducted by the 340B covered entity or on its behalf, and related to its 
53.20 	participation in the federal 340B program for the previous calendar year:
53.21 	(1) the aggregated acquisition cost for prescription drugs obtained under the 340B 
53.22 	program;
53.23 	(2) the aggregated payment amount received for drugs obtained under the 340B program 
53.24 	and dispensed or administered to patients;:
53.25 	(i) that are net of the contracted price for insurance claims payments; and
53.26 	(ii) that reflect the portion of payment received from grants, cash, or other payment types 
53.27 	that relate to the dispensing or administering of drugs obtained under the 340B program;
53.28 	(3) the number of pricing units dispensed or administered for prescription drugs described 
53.29 	in clause (2); and
54.1 	(4) the aggregated payments made:
54.2 	(i) to contract pharmacies to dispense drugs obtained under the 340B program;
54.3 	(ii) to any other entity that is not the covered entity and is not a contract pharmacy for 
54.4 	managing any aspect of the covered entity's 340B program; and
54.5 	(iii) for all other internal, direct expenses related to administering the 340B program
54.6 	with a detailed description of the direct costs included.
54.7 	The information under clauses (2) and (3) must be reported by payer type, including but 
54.8 	not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in 
54.9 	the form and manner prescribed by the commissioner.
54.10 	(b) For covered entities that are hospitals, the information required under paragraph (a), 
54.11 	clauses (1) to (3), must also be reported at the national drug code level for the 50 most 
54.12 	frequently dispensed or administered drugs by the facility under the 340B program.
54.13 	(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as 
54.14 	nonpublic data, as defined in section 13.02, subdivision 9.

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

54.23 	Sec. 3. Minnesota Statutes 2024, section 62J.461, subdivision 5, is amended to read:
54.24 		Subd. 5.Reports to the legislature. By November 15, 2024, and by November 15 of 
54.25 	each year thereafter, the commissioner shall submit to the chairs and ranking minority 
54.26 	members of the legislative committees with jurisdiction over health care finance and policy, 
54.27 	a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). The 
54.28 	following information must be included in the report For all 340B entities whose net 340B 
54.29 	revenue constitutes a significant share, as determined by the commissioner, of all net 340B 
54.30 	revenue across all 340B covered entities in Minnesota, the following information must also 
54.31 	be included in the report:
55.1 	(1) the information submitted under subdivision 2; and
55.2 	(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as 
55.3 	calculated using the data submitted under subdivision 3, paragraph (a), with net revenue 
55.4 	being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a), 
55.5 	clauses (1) and (4).
55.6 	For all other entities, the data in the report must be aggregated to the entity type or groupings 
55.7 	of entity types in a manner that prevents the identification of an individual entity and any 
55.8 	entity's specific data value reported for an individual data element.

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

55.14 	Sec. 5. Minnesota Statutes 2024, section 62J.581, is amended to read:
55.15 	62J.581 STANDARDS FOR MINNESOTA UNIFORM HEALTH CARE 
55.16 	REIMBURSEMENT DOCUMENTS.
55.17 		Subdivision 1.Minnesota uniform remittance advice.  All group purchasers shall 
55.18 	provide a uniform claim payment/advice transaction to health care providers when a claim 
55.19 	is adjudicated. The uniform claim payment/advice transaction shall comply with section 
55.20 	62J.536, subdivision 1, paragraph (b), and rules adopted under section 62J.536, subdivision 
55.21 	2.
55.22 		Subd. 2.Minnesota uniform explanation of benefits document. (a) All group 
55.23 	purchasers shall provide a uniform explanation of benefits document to health care patients 
55.24 	when an explanation of benefits document is provided as otherwise required or permitted 
55.25 	by law. The uniform explanation of benefits document shall comply with the standards 
55.26 	prescribed in this section.
55.27 	(b) Notwithstanding paragraph (a), this section does not apply to group purchasers not 
55.28 	included as covered entities under United States Code, title 42, sections 1320d to 1320d-8, 
55.29 	as amended from time to time, and the regulations promulgated under those sections.
55.30 		Subd. 3.Scope. For purposes of sections 62J.50 to 62J.61, the uniform claim 
55.31 	payment/advice transaction and uniform explanation of benefits document format specified 
55.32 	in subdivision 4 shall apply to all health care services delivered by a health care provider 
56.1 	or health care provider organization in Minnesota, regardless of the location of the payer. 
56.2 	Health care services not paid on an individual claims basis, such as capitated payments, are 
56.3 	not included in this section. A health plan company is excluded from the requirements in 
56.4 	subdivisions 1 and subdivision 2 if they comply with section 62A.01, subdivisions 2 and 
56.5 	3.
56.6 		Subd. 4.Specifications. (a) The uniform explanation of benefits document shall be 
56.7 	provided by use of a paper document conforming to the specifications in this section or its 
56.8 	electronic equivalent under paragraph (b).
56.9 	(b) Group purchasers may make the uniform explanation of benefits available in a version 
56.10 	that can be accessed by health care patients electronically if:
56.11 	(1) the group purchaser making the uniform explanation of benefits available 
56.12 	electronically provides health care patients the ability to choose whether to receive paper, 
56.13 	electronic, or both paper and electronic versions of their uniform explanation of benefits;
56.14 	(2) the group purchaser provides clear, readily accessible information and instructions 
56.15 	for the patient to communicate their choice; and
56.16 	(3) health care patients not responding to the opportunity to make a choice will receive 
56.17 	at a minimum a paper uniform explanation of benefits.
56.18 	(c) The commissioner, after consulting with the Administrative Uniformity Committee, 
56.19 	shall specify the data elements and definitions for the paper uniform explanation of benefits 
56.20 	document. The commissioner and the Administrative Uniformity Committee must consult 
56.21 	with the Minnesota Dental Association and Delta Dental Plan of Minnesota before requiring 
56.22 	under this section the use of a paper document for the uniform explanation of benefits 
56.23 	document or the uniform claim payment/advice transaction for dental care services. Any 
56.24 	electronic version of the uniform explanation of benefits must use the same data elements 
56.25 	and definitions as the paper uniform explanation of benefits.
56.26 		Subd. 5.Effective date. The requirements in subdivisions 1 and 2 are effective June 30, 
56.27 	2007. The requirements in subdivisions 1 and 2 apply regardless of when the health care 
56.28 	service was provided to the patient.

56.29 	Sec. 6. Minnesota Statutes 2024, section 62J.84, subdivision 2, is amended to read:
56.30 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
56.31 	have the meanings given.
57.1 	(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics 
57.2 	license application approved under United States Code, title 42, section 262(K)(3).
57.3 	(c) "Brand name drug" means a drug that is produced or distributed pursuant to:
57.4 	(1) a new drug application approved under United States Code, title 21, section 355(c), 
57.5 	except for a generic drug as defined under Code of Federal Regulations, title 42, section 
57.6 	447.502; or
57.7 	(2) a biologics license application approved under United States Code, title 42, section 
57.8 	262(a)(c).
57.9 	(d) "Commissioner" means the commissioner of health.
57.10 	(e) "Generic drug" means a drug that is marketed or distributed pursuant to:
57.11 	(1) an abbreviated new drug application approved under United States Code, title 21, 
57.12 	section 355(j);
57.13 	(2) an authorized generic as defined under Code of Federal Regulations, title 42, section 
57.14 	447.502; or
57.15 	(3) a drug that entered the market the year before 1962 and was not originally marketed 
57.16 	under a new drug application.
57.17 	(f) "Manufacturer" means a drug manufacturer licensed under section 151.252.
57.18 	(g) "New prescription drug" or "new drug" means a prescription drug approved for 
57.19 	marketing by the United States Food and Drug Administration (FDA) for which no previous 
57.20 	wholesale acquisition cost has been established for comparison.
57.21 	(h) "Patient assistance program" means a program that a manufacturer offers to the public 
57.22 	in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs 
57.23 	by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other 
57.24 	means.
57.25 	(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision 
57.26 	8.
57.27 	(j) "Price" means the wholesale acquisition cost as defined in United States Code, title 
57.28 	42, section 1395w-3a(c)(6)(B).
57.29 	(k) "30-day supply" means the total daily dosage units of a prescription drug 
57.30 	recommended by the prescribing label approved by the FDA for 30 days. If the 
57.31 	FDA-approved prescribing label includes more than one recommended daily dosage, the 
58.1 	30-day supply is based on the maximum recommended daily dosage on the FDA-approved 
58.2 	prescribing label.
58.3 	(l) "Course of treatment" means the total dosage of a single prescription for a prescription 
58.4 	drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing 
58.5 	label includes more than one recommended dosage for a single course of treatment, the 
58.6 	course of treatment is the maximum recommended dosage on the FDA-approved prescribing 
58.7 	label.
58.8 	(m) "Drug product family" means a group of one or more prescription drugs that share 
58.9 	a unique generic drug description or nontrade name and dosage form.
58.10 	(n) "Individual salable unit" means the smallest container of product introduced into 
58.11 	commerce by the manufacturer or repackager that is intended by the manufacturer or 
58.12 	repackager for individual sale to a dispenser.
58.13 	(o) (n) "National drug code" means the three-segment code maintained by the federal 
58.14 	Food and Drug Administration that includes a labeler code, a product code, and a package 
58.15 	code for a drug product and that has been converted to an 11-digit format consisting of five 
58.16 	digits in the first segment, four digits in the second segment, and two digits in the third 
58.17 	segment. A three-segment code shall be considered converted to an 11-digit format when, 
58.18 	as necessary, at least one "0" has been added to the front of each segment containing less 
58.19 	than the specified number of digits such that each segment contains the specified number 
58.20 	of digits.
58.21 	(p) (o) "Pharmacy" or "pharmacy provider" means a community/outpatient pharmacy 
58.22 	as defined in Minnesota Rules, part 6800.0100, subpart 2, that is also licensed as a pharmacy 
58.23 	by the Board of Pharmacy under section 151.19.
58.24 	(q) (p) "Pharmacy benefit manager" or "PBM" means an entity licensed to act as a 
58.25 	pharmacy benefit manager under section 62W.03.
58.26 	(r) (q) "Pricing unit" means the smallest dispensable amount of a prescription drug 
58.27 	product that could be dispensed or administered.
58.28 	(s) (r) "Rebate" means a discount, chargeback, or other price concession that affects the 
58.29 	price of a prescription drug product, regardless of whether conferred through regular 
58.30 	aggregate payments, on a claim-by-claim basis at the point of sale, as part of retrospective 
58.31 	financial reconciliations, including reconciliations that also reflect other contractual 
58.32 	arrangements, or by any other method. "Rebate" does not mean a bona fide service fee as 
58.33 	defined in Code of Federal Regulations, title 42, section 447.502.
59.1 	(t) (s) "Reporting entity" means any manufacturer, pharmacy, pharmacy benefit manager, 
59.2 	wholesale drug distributor, or any other entity required to submit data under this section.
59.3 	(u) (t) "Wholesale drug distributor" or "wholesaler" means an entity that:
59.4 	(1) is licensed to act as a wholesale drug distributor under section 151.47; and.
59.5 	(2) distributes prescription drugs, for which it is not the manufacturer, to persons or 
59.6 	entities, or both, other than a consumer or patient in the state.

59.7 	Sec. 7. Minnesota Statutes 2024, section 62J.84, subdivision 3, is amended to read:
59.8 		Subd. 3.Prescription drug price increases reporting. (a) Beginning January 1, 2022, 
59.9 	a drug manufacturer must submit to the commissioner the information described in paragraph 
59.10 	(b) for each prescription drug for which the price was $100 or greater for a 30-day supply 
59.11 	or for a course of treatment lasting less than 30 days and:
59.12 	(1) for brand name drugs where there is an increase of ten percent or greater in the price 
59.13 	over the previous 12-month period or an increase of 16 percent or greater in the price over 
59.14 	the previous 24-month period; and
59.15 	(2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in 
59.16 	the price over the previous 12-month period.
59.17 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
59.18 	the commissioner no later than 60 days after the price increase goes into effect, in the form 
59.19 	and manner prescribed by the commissioner, the following information, if applicable:
59.20 	(1) the description and price of the drug and the net increase, expressed as a percentage, 
59.21 	with the following listed separately:
59.22 	(i) the national drug code;
59.23 	(ii) the product name;
59.24 	(iii) the dosage form;
59.25 	(iv) the strength; and
59.26 	(v) the package size;
59.27 	(2) the factors that contributed to the price increase;
59.28 	(3) the name of any generic version of the prescription drug available on the market;
59.29 	(4) the year the prescription drug was introduced for sale in the United States;
60.1 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
60.2 	the United States and the price of the drug on the last day of each of the five calendar years 
60.3 	preceding the price increase;
60.4 	(5) (6) the direct costs incurred during the previous 12-month period by the manufacturer 
60.5 	that are associated with the prescription drug, listed separately:
60.6 	(i) to manufacture the prescription drug;
60.7 	(ii) to market the prescription drug, including advertising costs; and
60.8 	(iii) to distribute the prescription drug;
60.9 	(7) the number of units of the prescription drug sold during the previous 12-month period;
60.10 	(6) (8) the total sales revenue for the prescription drug during the previous 12-month 
60.11 	period;
60.12 	(9) the total rebate payable amount accrued for the prescription drug during the previous 
60.13 	12-month period;
60.14 	(7) (10) the manufacturer's net profit attributable to the prescription drug during the 
60.15 	previous 12-month period;
60.16 	(8) (11) the total amount of financial assistance the manufacturer has provided through 
60.17 	patient prescription assistance programs during the previous 12-month period, if applicable;
60.18 	(9) (12) any agreement between a manufacturer and another entity contingent upon any 
60.19 	delay in offering to market a generic version of the prescription drug;
60.20 	(10) (13) the patent expiration date of the prescription drug if it is under patent;
60.21 	(11) (14) the name and location of the company that manufactured the drug;
60.22 	(12) (15) if a brand name prescription drug, the highest price paid for the prescription 
60.23 	drug during the previous calendar year in the ten countries, excluding the United States, 
60.24 	that charged the highest single price for the prescription drug; and
60.25 	(13) (16) if the prescription drug was acquired by the manufacturer during the previous 
60.26 	12-month period, all of the following information:
60.27 	(i) price at acquisition;
60.28 	(ii) price in the calendar year prior to acquisition;
60.29 	(iii) name of the company from which the drug was acquired;
60.30 	(iv) date of acquisition; and
61.1 	(v) acquisition price.
61.2 	(c) The manufacturer may submit any documentation necessary to support the information 
61.3 	reported under this subdivision.

61.4 	Sec. 8. Minnesota Statutes 2024, section 62J.84, subdivision 6, is amended to read:
61.5 		Subd. 6.Public posting of prescription drug price information. (a) The commissioner 
61.6 	shall post on the department's website, or may contract with a private entity or consortium 
61.7 	that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the 
61.8 	following information:
61.9 	(1) a list of the prescription drugs reported under subdivisions 3, 4, and 11 to 14 and the 
61.10 	manufacturers of those prescription drugs; and
61.11 	(2) a list of reporting entities that reported prescription drug price information under 
61.12 	subdivisions 3, 4, and 11 to 14; and
61.13 	(2) (3) information reported to the commissioner under subdivisions 3, 4, and 11 to 14, 
61.14 	aggregated on a per-drug basis in a manner that does not allow the identification of a reporting 
61.15 	entity that is not the manufacturer of the drug.
61.16 	(b) The information must be published in an easy-to-read format and in a manner that 
61.17 	identifies the information that is disclosed on a per-drug basis and must not be aggregated 
61.18 	in a manner that prevents the identification of the prescription drug.
61.19 	(c) The commissioner shall not post to the department's website or a private entity 
61.20 	contracting with the commissioner shall not post any information described in this section 
61.21 	if the information is not public data under section 13.02, subdivision 8a; or is trade secret 
61.22 	information under section 13.37, subdivision 1, paragraph (b); or is trade secret information 
61.23 	pursuant to the Defend Trade Secrets Act of 2016, United States Code, title 18, section 
61.24 	1836, as amended. If a reporting entity believes information should be withheld from public 
61.25 	disclosure pursuant to this paragraph, the reporting entity must clearly and specifically 
61.26 	identify that information and describe the legal basis in writing when the reporting entity 
61.27 	submits the information under this section. If the commissioner disagrees with the reporting 
61.28 	entity's request to withhold information from public disclosure, the commissioner shall 
61.29 	provide the reporting entity written notice that the information will be publicly posted 30 
61.30 	days after the date of the notice.
61.31 	(d) If the commissioner withholds any information from public disclosure pursuant to 
61.32 	this subdivision, the commissioner shall post to the department's website a report describing 
62.1 	the nature of the information and the commissioner's basis for withholding the information 
62.2 	from disclosure.
62.3 	(e) To the extent the information required to be posted under this subdivision is collected 
62.4 	and made available to the public by another state, by the University of Minnesota, or through 
62.5 	an online drug pricing reference and analytical tool, the commissioner may reference the 
62.6 	availability of this drug price data from another source including, within existing 
62.7 	appropriations, creating the ability of the public to access the data from the source for 
62.8 	purposes of meeting the reporting requirements of this subdivision.

62.9 	Sec. 9. Minnesota Statutes 2024, section 62J.84, subdivision 10, is amended to read:
62.10 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
62.11 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
62.12 	department's website a list of prescription drugs that the commissioner determines to represent 
62.13 	a substantial public interest and for which the commissioner intends to request data under 
62.14 	subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion 
62.15 	of prescription drugs on any information the commissioner determines is relevant to providing 
62.16 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
62.17 	the state, and the commissioner shall consider drug product families that include prescription 
62.18 	drugs:
62.19 	(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;
62.20 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
62.21 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
62.22 	are available; or
62.23 	(3) that are identified by members of the public during a public comment process.
62.24 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
62.25 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
62.26 	department of:
62.27 	(1) the requirement to report under subdivisions 11 to 14.; and
62.28 	(2) the reporting period for which data must be provided.
62.29 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
62.30 	substantial public interest in any one notice.
62.31 	(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14, 
62.32 	including section 14.386, in implementing this subdivision.

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

63.2 	Sec. 10. Minnesota Statutes 2024, section 62J.84, subdivision 11, is amended to read:
63.3 		Subd. 11.Manufacturer prescription drug substantial public interest reporting. (a) 
63.4 	Beginning January 1, 2024, a manufacturer must submit to the commissioner the information 
63.5 	described in paragraph (b) for any prescription drug:
63.6 	(1) included in a notification to report issued to the manufacturer by the department 
63.7 	under subdivision 10;
63.8 	(2) which the manufacturer manufactures or repackages;
63.9 	(3) for which the manufacturer sets the wholesale acquisition cost; and
63.10 	(4) for which the manufacturer has not submitted data under subdivision 3 during the 
63.11 	120-day period prior to the date of the notification to report.
63.12 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
63.13 	the commissioner no later than 60 days after the date of the notification to report, in the 
63.14 	form and manner prescribed by the commissioner, the following information, if applicable:
63.15 	(1) a description of the drug with the following listed separately:
63.16 	(i) the national drug code;
63.17 	(ii) the product name;
63.18 	(iii) the dosage form;
63.19 	(iv) the strength; and
63.20 	(v) the package size;
63.21 	(2) the price of the drug product on the later of:
63.22 	(i) the day one year prior to the date of the notification to report;
63.23 	(ii) the introduced to market date; or
63.24 	(iii) the acquisition date;
63.25 	(3) the price of the drug product on the date of the notification to report;
63.26 	(4) the year the prescription drug was introduced for sale in the United States;
63.27 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
63.28 	the United States and the price of the drug on the last day of each of the five calendar years 
63.29 	preceding the date of the notification to report;
64.1 	(5) (6) the direct costs incurred during the 12-month period prior to the date of reporting 
64.2 	period specified in the notification to report by the manufacturers that are associated with 
64.3 	the prescription drug, listed separately:
64.4 	(i) to manufacture the prescription drug;
64.5 	(ii) to market the prescription drug, including advertising costs; and
64.6 	(iii) to distribute the prescription drug;
64.7 	(6) (7) the number of units of the prescription drug sold during the 12-month period 
64.8 	prior to the date of reporting period specified in the notification to report;
64.9 	(7) (8) the total sales revenue for the prescription drug during the 12-month period prior 
64.10 	to the date of reporting period specified in the notification to report;
64.11 	(8) (9) the total rebate payable amount accrued for the prescription drug during the 
64.12 	12-month period prior to the date of reporting period specified in the notification to report;
64.13 	(9) (10) the manufacturer's net profit attributable to the prescription drug during the 
64.14 	12-month period prior to the date of reporting period specified in the notification to report;
64.15 	(10) (11) the total amount of financial assistance the manufacturer has provided through 
64.16 	patient prescription assistance programs during the 12-month period prior to the date of
64.17 	reporting period specified in the notification to report, if applicable;
64.18 	(11) (12) any agreement between a manufacturer and another entity contingent upon 
64.19 	any delay in offering to market a generic version of the prescription drug;
64.20 	(12) (13) the patent expiration date of the prescription drug if the prescription drug is 
64.21 	under patent;
64.22 	(13) (14) the name and location of the company that manufactured the drug;
64.23 	(14) (15) if the prescription drug is a brand name prescription drug, the ten countries 
64.24 	other than the United States that paid the highest prices for the prescription drug during the 
64.25 	previous calendar year and their prices; and
64.26 	(15) (16) if the prescription drug was acquired by the manufacturer within a 12-month 
64.27 	period prior to the date of the reporting period specified in the notification to report, all of 
64.28 	the following information:
64.29 	(i) the price at acquisition;
64.30 	(ii) the price in the calendar year prior to acquisition;
64.31 	(iii) the name of the company from which the drug was acquired;
65.1 	(iv) the date of acquisition; and
65.2 	(v) the acquisition price.
65.3 	(c) The manufacturer may submit any documentation necessary to support the information 
65.4 	reported under this subdivision.

65.5 	Sec. 11. Minnesota Statutes 2024, section 62J.84, subdivision 12, is amended to read:
65.6 		Subd. 12.Pharmacy prescription drug substantial public interest reporting. (a) 
65.7 	Beginning January 1, 2024, a pharmacy must submit to the commissioner the information 
65.8 	described in paragraph (b) for any prescription drug:
65.9 	(1) included in a notification to report issued to the pharmacy by the department under 
65.10 	subdivision 10.; and
65.11 	(2) that the pharmacy dispensed in Minnesota or mailed to a Minnesota address.
65.12 	(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the 
65.13 	commissioner no later than 60 days after the date of the notification to report, in the form 
65.14 	and manner prescribed by the commissioner, the following information, if applicable:
65.15 	(1) a description of the drug with the following listed separately:
65.16 	(i) the national drug code;
65.17 	(ii) the product name;
65.18 	(iii) the dosage form;
65.19 	(iv) the strength; and
65.20 	(v) the package size;
65.21 	(2) the number of units of the drug acquired during the 12-month period prior to the date 
65.22 	of reporting period specified in the notification to report;
65.23 	(3) the total spent before rebates by the pharmacy to acquire the drug during the 12-month 
65.24 	period prior to the date of reporting period specified in the notification to report;
65.25 	(4) the total rebate receivable amount accrued by the pharmacy for the drug during the 
65.26 	12-month period prior to the date of reporting period specified in the notification to report;
65.27 	(5) the number of pricing units of the drug dispensed by the pharmacy during the 
65.28 	12-month period prior to the date of reporting period specified in the notification to report;
66.1 	(6) the total payment receivable by the pharmacy for dispensing the drug including 
66.2 	ingredient cost, dispensing fee, and administrative fees during the 12-month period prior 
66.3 	to the date of reporting period specified in the notification to report;
66.4 	(7) the total rebate payable amount accrued by the pharmacy for the drug during the 
66.5 	12-month period prior to the date of reporting period specified in the notification to report; 
66.6 	and
66.7 	(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed 
66.8 	where no claim was submitted to a health care service plan or health insurer during the 
66.9 	12-month period prior to the date of reporting period specified in the notification to report.
66.10 	(c) The pharmacy may submit any documentation necessary to support the information 
66.11 	reported under this subdivision.
66.12 	(d) The commissioner may grant extensions, exemptions, or both to compliance with 
66.13 	the requirements of paragraphs (a) and (b) by small or independent pharmacies, if compliance 
66.14 	with paragraphs (a) and (b) would represent a hardship or undue burden to the pharmacy. 
66.15 	The commissioner may establish procedures for small or independent pharmacies to request 
66.16 	extensions or exemptions under this paragraph.

66.17 	Sec. 12. Minnesota Statutes 2024, section 62J.84, subdivision 13, is amended to read:
66.18 		Subd. 13.PBM prescription drug substantial public interest reporting. (a) Beginning 
66.19 	January 1, 2024, a PBM must submit to the commissioner the information described in 
66.20 	paragraph (b) for any prescription drug:
66.21 	(1) included in a notification to report issued to the PBM by the department under 
66.22 	subdivision 10.; and
66.23 	(2) for which the PBM fulfilled pharmacy benefit management duties for Minnesota 
66.24 	residents.
66.25 	(b) For each of the drugs described in paragraph (a), the PBM shall submit to the 
66.26 	commissioner no later than 60 days after the date of the notification to report, in the form 
66.27 	and manner prescribed by the commissioner, the following information, if applicable:
66.28 	(1) a description of the drug with the following listed separately:
66.29 	(i) the national drug code;
66.30 	(ii) the product name;
66.31 	(iii) the dosage form;
67.1 	(iv) the strength; and
67.2 	(v) the package size;
67.3 	(2) the number of pricing units of the drug product filled for which the PBM administered 
67.4 	claims during the 12-month period prior to the date of reporting period specified in the 
67.5 	notification to report;
67.6 	(3) the total reimbursement amount accrued and payable to pharmacies for pricing units 
67.7 	of the drug product filled for which the PBM administered claims during the 12-month 
67.8 	period prior to the date of reporting period specified in the notification to report;
67.9 	(4) the total reimbursement or administrative fee amount, or both, accrued and receivable 
67.10 	from payers for pricing units of the drug product filled for which the PBM administered 
67.11 	claims during the 12-month period prior to the date of reporting period specified in the 
67.12 	notification to report;
67.13 	(5) the total administrative fee amount accrued and receivable from payers for pricing 
67.14 	units of the drug product filled during the reporting period specified in the notification to 
67.15 	report;
67.16 	(5) (6) the total rebate receivable amount accrued by the PBM for the drug product 
67.17 	during the 12-month period prior to the date of reporting period specified in the notification 
67.18 	to report; and
67.19 	(6) (7) the total rebate payable amount accrued by the PBM for the drug product during 
67.20 	the 12-month period prior to the date of reporting period specified in the notification to 
67.21 	report.
67.22 	(c) The PBM may submit any documentation necessary to support the information 
67.23 	reported under this subdivision.

67.24 	Sec. 13. Minnesota Statutes 2024, section 62J.84, subdivision 14, is amended to read:
67.25 		Subd. 14.Wholesale drug distributor prescription drug substantial public interest 
67.26 	reporting. (a) Beginning January 1, 2024, a wholesale drug distributor that distributes 
67.27 	prescription drugs, for which it is not the manufacturer, to persons or entities, or both, other 
67.28 	than a consumer or patient in the state, must submit to the commissioner the information 
67.29 	described in paragraph (b) for any prescription drug:
67.30 	(1) included in a notification to report issued to the wholesale drug distributor by the 
67.31 	department under subdivision 10.; and
67.32 	(2) that the wholesale drug distributor distributed within or into Minnesota.
68.1 	(b) For each of the drugs described in paragraph (a), the wholesale drug distributor shall 
68.2 	submit to the commissioner no later than 60 days after the date of the notification to report, 
68.3 	in the form and manner prescribed by the commissioner, the following information, if 
68.4 	applicable:
68.5 	(1) a description of the drug with the following listed separately:
68.6 	(i) the national drug code;
68.7 	(ii) the product name;
68.8 	(iii) the dosage form;
68.9 	(iv) the strength; and
68.10 	(v) the package size;
68.11 	(2) the number of units of the drug product acquired by the wholesale drug distributor 
68.12 	during the 12-month period prior to the date of reporting period specified in the notification 
68.13 	to report;
68.14 	(3) the total spent before rebates by the wholesale drug distributor to acquire the drug 
68.15 	product during the 12-month period prior to the date of reporting period specified in the 
68.16 	notification to report;
68.17 	(4) the total rebate receivable amount accrued by the wholesale drug distributor for the 
68.18 	drug product during the 12-month period prior to the date of reporting period specified in
68.19 	the notification to report;
68.20 	(5) the number of units of the drug product sold by the wholesale drug distributor during 
68.21 	the 12-month period prior to the date of reporting period specified in the notification to 
68.22 	report;
68.23 	(6) gross revenue from sales in the United States generated by the wholesale drug 
68.24 	distributor for this the drug product during the 12-month period prior to the date of reporting 
68.25 	period specified in the notification to report; and
68.26 	(7) total rebate payable amount accrued by the wholesale drug distributor for the drug 
68.27 	product during the 12-month period prior to the date of reporting period specified in the 
68.28 	notification to report.
68.29 	(c) The wholesale drug distributor may submit any documentation necessary to support 
68.30 	the information reported under this subdivision.

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

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

69.12 	Sec. 16. Minnesota Statutes 2024, section 62K.10, subdivision 5, is amended to read:
69.13 		Subd. 5.Waiver. (a) A health carrier may apply to the commissioner of health for a 
69.14 	waiver of the requirements in subdivision 2 or 3 if it is unable to meet the statutory 
69.15 	requirements. A waiver application must be submitted on a form provided by the 
69.16 	commissioner, must be accompanied by an application fee of $500 for each application to 
69.17 	waive the requirements in subdivision 2 or 3 for one or more provider types per county, and 
69.18 	must:
69.19 	(1) demonstrate with specific data that the requirement of subdivision 2 or 3 is not 
69.20 	feasible in a particular service area or part of a service area; and
69.21 	(2) include specific information as to the steps that were and will be taken to address 
69.22 	the network inadequacy, and, for steps that will be taken prospectively to address network 
69.23 	inadequacy, the time frame within which those steps will be taken.
69.24 	(b) The commissioner shall establish guidelines for evaluating waiver applications, 
69.25 	standards governing approval or denial of a waiver application, and standards for steps that 
69.26 	health carriers must take to address the network inadequacy and allow the health carrier to 
69.27 	meet network adequacy requirements within a reasonable time period. The commissioner 
69.28 	shall review each waiver application using these guidelines and standards and shall approve 
69.29 	a waiver application only if:
69.30 	(1) the standards for approval established by the commissioner are satisfied; and
69.31 	(2) the steps that were and will be taken to address the network inadequacy and the time 
69.32 	frame for taking these steps satisfy the standards established by the commissioner.
70.1 	(c) If, in its waiver application, a health carrier demonstrates to the commissioner that 
70.2 	there are no providers of a specific type or specialty in a county, the commissioner may 
70.3 	approve a waiver in which the health carrier is allowed to address network inadequacy in 
70.4 	that county by providing for patient access to providers of that type or specialty via telehealth, 
70.5 	as defined in section 62A.673, subdivision 2.
70.6 	(d) The waiver shall automatically expire after one year. Upon or prior to expiration of 
70.7 	a waiver, a health carrier unable to meet the requirements in subdivision 2 or 3 must submit 
70.8 	a new waiver application under paragraph (a) and must also submit evidence of steps the 
70.9 	carrier took to address the network inadequacy. When the commissioner reviews a waiver 
70.10 	application for a network adequacy requirement which has been waived for the carrier for 
70.11 	the most recent one-year period, the commissioner shall also examine the steps the carrier 
70.12 	took during that one-year period to address network inadequacy, and shall only approve a 
70.13 	subsequent waiver application that satisfies the requirements in paragraph (b), demonstrates 
70.14 	that the carrier took the steps it proposed to address network inadequacy, and explains why 
70.15 	the carrier continues to be unable to satisfy the requirements in subdivision 2 or 3.
70.16 	(e) Application fees collected under this subdivision shall be deposited in the state 
70.17 	government special revenue fund in the state treasury.

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

70.25 	Sec. 18. Minnesota Statutes 2024, section 103I.005, subdivision 17b, is amended to read:
70.26 		Subd. 17b.Temporary boring. "Temporary boring" means an excavation that is 15 
70.27 	feet or more in depth, is sealed within 72 hours of the time of construction, and is drilled, 
70.28 	cored, washed, driven, dug, jetted, or otherwise constructed to:
70.29 	(1) conduct physical, chemical, or biological testing of groundwater, including 
70.30 	groundwater quality monitoring;
71.1 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
71.2 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
71.3 	resistance;
71.4 	(3) measure groundwater levels, including use of a piezometer; and or
71.5 	(4) determine groundwater flow direction or velocity.

71.6 	Sec. 19. Minnesota Statutes 2024, section 103I.101, subdivision 2, is amended to read:
71.7 		Subd. 2.Duties. The commissioner shall:
71.8 	(1) regulate the drilling, construction, modification, repair, and sealing of wells and 
71.9 	borings;
71.10 	(2) examine and license:
71.11 	(i) well contractors;
71.12 	(ii) persons constructing, repairing, and sealing bored geothermal heat exchangers;
71.13 	(iii) persons modifying or repairing well casings above the pitless unit or adaptor, well 
71.14 	screens, well diameters, and installing well pumps or pumping equipment;
71.15 	(iv) persons constructing, repairing, and sealing dewatering wells;
71.16 	(v) persons sealing wells or borings; and
71.17 	(vi) persons excavating or drilling holes for the installation of elevator borings; and
71.18 	(vii) persons installing, removing, or maintaining groundwater thermal exchange devices 
71.19 	and submerged closed loop heat exchangers;
71.20 	(3) examine and license environmental well contractors;
71.21 	(4) license explorers engaged in exploratory boring and examine individuals who 
71.22 	supervise or oversee exploratory boring;
71.23 	(5) after consultation with the commissioner of natural resources and the Pollution 
71.24 	Control Agency, establish standards for the design, location, construction, repair, and sealing 
71.25 	of wells and borings within the state; and
71.26 	(6) issue permits for wells, groundwater thermal devices, bored geothermal heat 
71.27 	exchangers, installation of submerged closed loop heat exchanger systems, and elevator 
71.28 	borings.

72.1 	Sec. 20. Minnesota Statutes 2024, section 103I.101, subdivision 5, is amended to read:
72.2 		Subd. 5.Commissioner to adopt rules. The commissioner shall adopt rules including:
72.3 	(1) issuance of licenses for:
72.4 	(i) qualified well contractors;
72.5 	(ii) persons constructing, repairing, and sealing dewatering wells;
72.6 	(iii) persons sealing wells or borings;
72.7 	(iv) persons installing, modifying, or repairing well casings, well screens, well diameters, 
72.8 	and well pumps or pumping equipment;
72.9 	(v) persons constructing, repairing, and sealing bored geothermal heat exchangers;
72.10 	(vi) persons constructing, repairing, and sealing elevator borings; and
72.11 	(vii) persons constructing, repairing, and sealing environmental wells; and
72.12 	(viii) persons installing, removing, or maintaining groundwater thermal exchange devices 
72.13 	and submerged closed loop heat exchangers;
72.14 	(2) establishment of conditions for examination and review of applications for license 
72.15 	and certification;
72.16 	(3) establishment of conditions for revocation and suspension of license and certification;
72.17 	(4) establishment of minimum standards for design, location, construction, repair, and 
72.18 	sealing of wells and borings to implement the purpose and intent of this chapter;
72.19 	(5) establishment of a system for reporting on wells and borings drilled and sealed;
72.20 	(6) establishment of standards for the construction, maintenance, sealing, and water 
72.21 	quality monitoring of wells in areas of known or suspected contamination;
72.22 	(7) establishment of wellhead protection measures for wells serving public water supplies;
72.23 	(8) establishment of procedures to coordinate collection of well and boring data with 
72.24 	other state and local governmental agencies;
72.25 	(9) establishment of criteria and procedures for submission of well and boring logs, 
72.26 	formation samples or well or boring cuttings, water samples, or other special information 
72.27 	required for and water resource mapping; and
72.28 	(10) establishment of minimum standards for design, location, construction, maintenance, 
72.29 	repair, sealing, safety, and resource conservation related to borings, including exploratory 
72.30 	borings as defined in section 103I.005, subdivision 9.

73.1 	Sec. 21. Minnesota Statutes 2024, section 103I.101, is amended by adding a subdivision 
73.2 	to read:
73.3 		Subd. 7.Inspection. At a minimum, the commissioner of health shall inspect at least 
73.4 	25 percent of well construction notifications each year under this section.

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

73.11 	Sec. 23. Minnesota Statutes 2024, section 138.912, subdivision 2, is amended to read:
73.12 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
73.13 	(b) "Healthy eating, here at home" means a program administered by the Minnesota 
73.14 	Humanities Center Department of Health to provide incentives for low-income Minnesotans 
73.15 	to use SNAP or SUN bucks (Summer EBT) benefits for healthy purchases at Minnesota-based 
73.16 	farmers' markets.
73.17 	(c) "Healthy purchases" means SNAP-eligible foods.
73.18 	(d) "Minnesota-based farmers' market" means a physical market as defined in section 
73.19 	28A.151, subdivision 1, paragraph (b), and also includes mobile markets and direct-farmer 
73.20 	sales, including through a community-supported agriculture model.
73.21 	(e) "Voucher" means a physical or electronic credit.
73.22 	(f) "Eligible household" means an individual or family that is determined to be a recipient 
73.23 	of SNAP or SUN bucks (Summer EBT).

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

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

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

74.15 	Sec. 27. Minnesota Statutes 2024, section 144.0758, subdivision 3, is amended to read:
74.16 		Subd. 3.Eligible grantees. (a) Organizations eligible to receive grant funding under 
74.17 	this section are Minnesota's Tribal Nations in accordance with paragraph (b) and urban 
74.18 	American Indian community-based organizations in accordance with paragraph (c).
74.19 	(b) Minnesota's Tribal Nations may choose to receive funding under this section according 
74.20 	to a noncompetitive funding formula specified by the commissioner.
74.21 	(c) Urban American Indian community-based organizations are eligible to apply for 
74.22 	funding under this section by submitting a proposal for consideration by the commissioner.

74.23 	Sec. 28. Minnesota Statutes 2024, section 144.50, is amended by adding a subdivision to 
74.24 	read:
74.25 		Subd. 8.Controlling person. (a) "Controlling person" includes the following individuals, 
74.26 	if applicable, as deemed appropriate by the hospital:
74.27 	(1) any officer of the organization;
74.28 	(2) any hospital administrator; and
74.29 	(3) any managerial official.
75.1 	(b) Controlling person does not include:
75.2 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
75.3 	loan and thrift company, investment banking firm, or insurance company unless the entity 
75.4 	directly or through a subsidiary operates a hospital;
75.5 	(2) government and government-sponsored entities such as the United States Department 
75.6 	of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the 
75.7 	Minnesota Housing Finance Agency which provide loans, financing, and insurance products 
75.8 	for housing sites;
75.9 	(3) an individual who is a state or federal official, a state or federal employee, or a 
75.10 	member or employee of the governing body of a political subdivision of the state or federal 
75.11 	government that operates one or more hospitals, unless the individual is also an officer, 
75.12 	owner, or managerial official of the hospital, receives any remuneration from a hospital, or 
75.13 	who is a controlling person not otherwise excluded in this subdivision;
75.14 	(4) a natural person who is a member of a tax-exempt organization under section 290.05, 
75.15 	subdivision 2, unless the individual is also a controlling person not otherwise excluded in 
75.16 	this subdivision; and
75.17 	(5) a natural person who owns less than five percent of the outstanding common shares 
75.18 	of a corporation:
75.19 	(i) whose securities are exempt by virtue of section 80A.45, clause (6); or
75.20 	(ii) whose transactions are exempt by virtue of section 80A.46, clause (7).

75.21 	Sec. 29. Minnesota Statutes 2024, section 144.555, subdivision 1a, is amended to read:
75.22 		Subd. 1a.Notice of closing, curtailing operations, relocating services, or ceasing to 
75.23 	offer certain services; hospitals. (a) The controlling persons of a hospital licensed under 
75.24 	sections 144.50 to 144.56 or a hospital campus must notify the commissioner of health, the 
75.25 	public, and others at least 182 days before the hospital or hospital campus voluntarily plans 
75.26 	to implement one of the scheduled actions listed in paragraph (b), unless the controlling 
75.27 	persons can demonstrate to the commissioner that meeting the advanced notice requirement 
75.28 	is not feasible and the commissioner approves a shorter advanced notice.
75.29 	(b) The following scheduled actions require advanced notice under paragraph (a):
75.30 	(1) ceasing operations;
75.31 	(2) curtailing operations to the extent that patients inpatients or emergency department 
75.32 	services must be relocated;
76.1 	(3) relocating the provision of inpatient health services or emergency department services
76.2 	to another hospital or another hospital campus; or
76.3 	(4) ceasing to offer inpatient maternity care and inpatient newborn care services, inpatient
76.4 	intensive care unit services, inpatient mental health services, or inpatient substance use 
76.5 	disorder treatment services.
76.6 	(c) A notice required under this subdivision must comply with the requirements in 
76.7 	subdivision 1d.
76.8 	(d) The commissioner shall cooperate with the controlling persons and advise them 
76.9 	about relocating the patients.
76.10 	(e) For purposes of this subdivision, "inpatient" means services that are provided to a 
76.11 	person who has been admitted to a hospital for bed occupancy.

76.12 	Sec. 30. Minnesota Statutes 2024, section 144.555, subdivision 1b, is amended to read:
76.13 		Subd. 1b.Public hearing. Within 30 days after receiving notice under subdivision 1a, 
76.14 	the commissioner shall conduct a public hearing on the scheduled cessation of operations, 
76.15 	curtailment of operations, relocation of health services, or cessation in offering health 
76.16 	services. The commissioner must provide adequate public notice of the hearing in a time 
76.17 	and manner determined by the commissioner. The commissioner must ensure that video 
76.18 	conferencing technology will be used to allow members of the public to view and participate 
76.19 	in the hearing. The controlling persons of the hospital or hospital campus must participate 
76.20 	in the public hearing. The public hearing must be held at a location that is within ten miles 
76.21 	of the hospital or hospital campus and can accommodate anticipated public attendance or 
76.22 	with the commissioner's approval as close as is practicable, and that is provided or arranged 
76.23 	by the hospital or hospital campus. Video conferencing technology must be used to allow 
76.24 	members of the public to view and participate in the hearing. The public hearing must 
76.25 	include:
76.26 	(1) an explanation by the controlling persons of the reasons for ceasing or curtailing 
76.27 	operations, relocating health services, or ceasing to offer any of the listed health services;
76.28 	(2) a description of the actions that controlling persons will take to ensure that residents 
76.29 	in the hospital's or campus's service area have continued access to the health services being 
76.30 	eliminated, curtailed, or relocated;
76.31 	(3) an opportunity for public testimony for at least one hour on the scheduled cessation 
76.32 	or curtailment of operations, relocation of health services, or cessation in offering any of 
77.1 	the listed health services, and on the hospital's or campus's plan to ensure continued access 
77.2 	to those health services being eliminated, curtailed, or relocated; and
77.3 	(4) an opportunity for the controlling persons to respond to questions from interested 
77.4 	persons.

77.5 	Sec. 31. Minnesota Statutes 2024, section 144.608, subdivision 2, is amended to read:
77.6 		Subd. 2.Council administration. (a) The council must meet at least twice a year but 
77.7 	may meet more frequently at the call of the chair, a majority of the council members, or the 
77.8 	commissioner.
77.9 	(b) The terms, compensation, and removal of members of the council are governed by 
77.10 	section 15.059. The council expires June 30, 2025 2035.
77.11 	(c) The council may appoint subcommittees and work groups. Subcommittees shall 
77.12 	consist of council members. Work groups may include noncouncil members. Noncouncil 
77.13 	members shall be compensated for work group activities under section 15.059, subdivision 
77.14 	3, but shall receive expenses only.

77.15 	Sec. 32. Minnesota Statutes 2024, section 144.966, subdivision 2, is amended to read:
77.16 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The commissioner 
77.17 	of health shall establish a Newborn Hearing Screening Advisory Committee to advise and 
77.18 	assist the Department of Health; Department of Children, Youth, and Families; and the 
77.19 	Department of Education in:
77.20 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
77.21 	audiological assessment and early medical, audiological, and educational intervention 
77.22 	services for children who are deaf or hard-of-hearing;
77.23 	(2) designing protocols for tracking children from birth through age three that may have 
77.24 	passed newborn screening but are at risk for delayed or late onset of permanent hearing 
77.25 	loss;
77.26 	(3) designing a technical assistance program to support facilities implementing the 
77.27 	screening program and facilities conducting rescreening and diagnostic audiological 
77.28 	assessment;
77.29 	(4) designing implementation and evaluation of a system of follow-up and tracking; and
77.30 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
77.31 	culturally appropriate services for children with a confirmed hearing loss and their families.
78.1 	(b) The commissioner of health shall appoint at least one member from each of the 
78.2 	following groups with no less than two of the members being deaf or hard-of-hearing:
78.3 	(1) a representative from a consumer organization representing culturally deaf persons;
78.4 	(2) a parent with a child with hearing loss representing a parent organization;
78.5 	(3) a consumer from an organization representing oral communication options;
78.6 	(4) a consumer from an organization representing cued speech communication options;
78.7 	(5) an audiologist who has experience in evaluation and intervention of infants and 
78.8 	young children;
78.9 	(6) a speech-language pathologist who has experience in evaluation and intervention of 
78.10 	infants and young children;
78.11 	(7) two primary care providers who have experience in the care of infants and young 
78.12 	children, one of which shall be a pediatrician;
78.13 	(8) a representative from the early hearing detection intervention teams;
78.14 	(9) a representative from the Department of Education resource center for the deaf and 
78.15 	hard-of-hearing or the representative's designee;
78.16 	(10) a representative of the Commission of the Deaf, DeafBlind and Hard of Hearing;
78.17 	(11) a representative from the Department of Human Services Deaf and Hard-of-Hearing 
78.18 	Services Division;
78.19 	(12) one or more of the Part C coordinators from the Department of Education; the 
78.20 	Department of Health; the Department of Children, Youth, and Families; or the Department 
78.21 	of Human Services or the department's designees;
78.22 	(13) the Department of Health early hearing detection and intervention coordinators;
78.23 	(14) two birth hospital representatives from one rural and one urban hospital;
78.24 	(15) a pediatric geneticist;
78.25 	(16) an otolaryngologist;
78.26 	(17) a representative from the Newborn Screening Advisory Committee under this 
78.27 	subdivision;
78.28 	(18) a representative of the Department of Education regional low-incidence facilitators;
78.29 	(19) a representative from the deaf mentor program; and
79.1 	(20) a representative of the Minnesota State Academy for the Deaf from the Minnesota 
79.2 	State Academies staff.
79.3 	The commissioner must complete the initial appointments required under this subdivision 
79.4 	by September 1, 2007, and the initial appointments under clauses (19) and (20) by September 
79.5 	1, 2019.
79.6 	(c) The Department of Health member shall chair the first meeting of the committee. At 
79.7 	the first meeting, the committee shall elect a chair from its membership. The committee 
79.8 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
79.9 	written bylaws to govern its activities. The Department of Health shall provide technical 
79.10 	and administrative support services as required by the committee. These services shall 
79.11 	include technical support from individuals qualified to administer infant hearing screening, 
79.12 	rescreening, and diagnostic audiological assessments.
79.13 	Members of the committee shall receive no compensation for their service, but shall be 
79.14 	reimbursed as provided in section 15.059 for expenses incurred as a result of their duties 
79.15 	as members of the committee.
79.16 	(d) By February 15, 2015, and by February 15 of the odd-numbered years after that date, 
79.17 	the commissioner shall report to the chairs and ranking minority members of the legislative 
79.18 	committees with jurisdiction over health and data privacy on the activities of the committee 
79.19 	that have occurred during the past two years.
79.20 	(e) This subdivision expires June 30, 2025.

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

79.23 	Sec. 33. Minnesota Statutes 2024, section 144E.123, subdivision 3, is amended to read:
79.24 		Subd. 3.Review. Prehospital care data may be reviewed by the director or its designees. 
79.25 	The data shall be classified as private data on individuals under chapter 13, the Minnesota 
79.26 	Government Data Practices Act. The director may share with the Washington/Baltimore 
79.27 	High Intensity Drug Trafficking Area's Overdose Detection Mapping Application Program 
79.28 	(ODMAP) data that identifies where and when an overdose incident happens, fatality status, 
79.29 	suspected drug type, naloxone administration, and first responder type. ODMAP may:
79.30 	(1) allow secure access to the system by authorized users to report information about an 
79.31 	overdose incident;
80.1 	(2) allow secure access to the system by authorized users to view, in near real time, 
80.2 	information about overdose incidents reported;
80.3 	(3) produce a map in near real time of the approximate locations of confirmed or 
80.4 	suspected overdose incidents reported; and
80.5 	(4) enable access to overdose incident information that assists in state and local decisions 
80.6 	regarding the allocation of public health, public safety, and educational resources for the 
80.7 	purposes of monitoring and reporting data related to suspected overdoses.

80.8 	Sec. 34. [144E.54] AMBULANCE OPERATING DEFICIT GRANT PROGRAM.
80.9 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
80.10 	subdivision have the meanings given.
80.11 	(b) "Capital expenses" means expenses incurred by a licensee for the purchase, 
80.12 	improvement, or maintenance of assets with an expected useful life of greater than five 
80.13 	years that improve the efficiency of provided ambulance services or the capabilities of the 
80.14 	licensee.
80.15 	(c) "Eligible applicant" or "eligible licensee" means any licensee who possessed a license 
80.16 	not excluded under subdivision 4 or 5 in the last completed state fiscal year for which data 
80.17 	was provided to the director, as provided in section 62J.49; who continues to operate that 
80.18 	same nonexcluded license at the time of application; and who provides verifiable evidence 
80.19 	of an operating deficit in the state fiscal year prior to submitting an application.
80.20 	(d) "Government licensee" means any government entity, as defined in section 118A.01, 
80.21 	subdivision 2, including a Tribe, that is a licensee.
80.22 	(e) "Insurance revenue" means revenue from Medicare, medical assistance, private health 
80.23 	insurance, third-party liability insurance, and payments from individuals.
80.24 	(f) "Operating deficit" means the sum of insurance revenue and other revenue is less 
80.25 	than the sum of operational expenses and capital expenses.
80.26 	(g) "Operational expenses" means costs related to the day-to-day operations of an 
80.27 	ambulance service, including but not limited to costs related to personnel, supplies and 
80.28 	equipment, fuel, vehicle maintenance, travel, education, and fundraising.
80.29 	(h) "Other revenue" means revenue from any revenue that is not insurance revenue, 
80.30 	including but not limited to grants, tax revenue, donations, fundraisers, or standby fees. 
80.31 	Grants awarded under this section must not be considered revenue.
81.1 		Subd. 2.Program establishment. An ambulance operating deficit grant program is 
81.2 	established to award grants to applicants to address revenue shortfalls creating operating 
81.3 	deficits among eligible applicants.
81.4 		Subd. 3.Account established. An ambulance operating deficit account is created in the 
81.5 	special revenue fund in the state treasury. The director shall credit the account appropriations 
81.6 	and transfers to the account. Earnings, including interest, dividends, and any other earnings 
81.7 	arising from assets of the account, must be credited to the account. The director shall manage 
81.8 	the account.
81.9 		Subd. 4.Licensees providing specialized life support services excluded. Licensees 
81.10 	providing specialized life support services as described in section 144E.101, subdivision 9, 
81.11 	are not eligible for grants under this section.
81.12 		Subd. 5.Other licensees excluded. Licensees whose individual primary service areas 
81.13 	are located mostly within a metropolitan county listed in section 473.121, subdivision 4, or 
81.14 	within the cities of Duluth, Mankato, St. Cloud, or Rochester are not eligible for grants 
81.15 	under this section.
81.16 		Subd. 6.Application process. (a) An eligible licensee may apply to the director, in the 
81.17 	form and manner determined by the director, for a grant under this section.
81.18 	(b) A grant application made by a government licensee must be accompanied by a 
81.19 	resolution of support from the governing body.
81.20 		Subd. 7.Director calculations. The director shall award grants only to applicants who 
81.21 	provide verifiable evidence of an operating deficit in the last completed state fiscal year for 
81.22 	which data were provided to the director. The director may audit the financial data provided 
81.23 	to the director by applicants, as provided in section 62J.49. A grant awarded must not be 
81.24 	more than five percent more than any previous grant without special permission from the 
81.25 	director.
81.26 		Subd. 8.Grant awards; limitations. (a) Grants awarded under this section to eligible 
81.27 	applicants may be proportionally distributed based on money available. Total amounts 
81.28 	awarded must not exceed the amount in the ambulance operating deficit account.
81.29 	(b) The director shall award grants annually.
81.30 	(c) The director must not award individual grants that exceed the amount of the grantee's 
81.31 	most recent verified operating deficit as reported to the director.
81.32 		Subd. 9.Eligible expenditures. A grantee must spend grant money received under this 
81.33 	section on operational expenses and capital expenses incurred to provide ambulance services.
82.1 		Subd. 10.Report. By February 15, 2026, and annually thereafter, the director must 
82.2 	submit a report to the chairs and ranking minority members of the legislative committees 
82.3 	with jurisdiction over health finance and policy. The report must describe the number and 
82.4 	amount of grants awarded under this section and the uses made of grant money by grantees.

82.5 	Sec. 35. [145.076] INFORMED CONSENT REQUIRED FOR SENSITIVE 
82.6 	EXAMINATIONS.
82.7 		Subdivision 1.Definition. For purposes of this section, "sensitive examination" means 
82.8 	a pelvic, breast, urogenital, or rectal examination.
82.9 		Subd. 2.Informed consent required; exceptions. A health professional, or a student 
82.10 	or resident participating in a course of instruction, clinical training, or a residency program 
82.11 	for a health profession, shall not perform a sensitive examination on an anesthetized or 
82.12 	unconscious patient unless:
82.13 	(1) the patient or the patient's legally authorized representative provided prior, written, 
82.14 	informed consent to the sensitive examination and the sensitive examination is necessary 
82.15 	for preventive, diagnostic, or treatment purposes;
82.16 	(2) the patient or the patient's legally authorized representative provided prior, written, 
82.17 	informed consent to a surgical procedure or diagnostic examination and the sensitive 
82.18 	examination is within the scope of care ordered for that surgical procedure or diagnostic 
82.19 	examination;
82.20 	(3) the patient is unconscious and incapable of providing informed consent and the 
82.21 	sensitive examination is necessary for diagnostic or treatment purposes; or
82.22 	(4) a court ordered a sensitive examination to be performed for purposes of collection 
82.23 	of evidence.
82.24 		Subd. 3.Penalty; ground for disciplinary action. A person who violates this section 
82.25 	is subject to disciplinary action by the health-related licensing board regulating the person.

82.26 	Sec. 36. Minnesota Statutes 2024, section 145.8811, is amended to read:
82.27 	145.8811 MATERNAL AND CHILD HEALTH ADVISORY TASK FORCE
82.28 	COMMITTEE.
82.29 		Subdivision 1.Composition of task force committee. The commissioner shall establish 
82.30 	and appoint a Maternal and Child Health Advisory Task Force Committee consisting of 15 
82.31 	members who will provide equal representation from:
83.1 	(1) professionals with expertise in maternal and child health services;
83.2 	(2) representatives of community health boards as defined in section 145A.02, subdivision 
83.3 	5; and
83.4 	(3) consumer representatives interested in the health of mothers and children.
83.5 	No members shall be employees of the Minnesota Department of Health. Section 15.059
83.6 	governs the Maternal and Child Health Advisory Task Force Committee. Notwithstanding 
83.7 	section 15.059, the Maternal and Child Health Advisory Task Force Committee does not 
83.8 	expire.
83.9 		Subd. 2.Duties. The advisory task force committee shall meet on a regular basis to 
83.10 	perform the following duties:
83.11 	(1) review and report on the health care needs of mothers and children throughout the 
83.12 	state of Minnesota;
83.13 	(2) review and report on the type, frequency, and impact of maternal and child health 
83.14 	care services provided to mothers and children under existing maternal and child health 
83.15 	care programs, including programs administered by the commissioner of health;
83.16 	(3) establish, review, and report to the commissioner a list of program guidelines and 
83.17 	criteria which the advisory task force committee considers essential to providing an effective 
83.18 	maternal and child health care program to low-income populations and high-risk persons 
83.19 	and fulfilling the purposes defined in section 145.88;
83.20 	(4) make recommendations to the commissioner for the use of other federal and state 
83.21 	funds available to meet maternal and child health needs;
83.22 	(5) make recommendations to the commissioner of health on priorities for funding the 
83.23 	following maternal and child health services:
83.24 	(i) prenatal, delivery, and postpartum care;
83.25 	(ii) comprehensive health care for children, especially from birth through five years of 
83.26 	age;
83.27 	(iii) adolescent health services;
83.28 	(iv) family planning services;
83.29 	(v) preventive dental care;
83.30 	(vi) special services for chronically ill and disabled children; and
83.31 	(vii) any other services that promote the health of mothers and children; and
84.1 	(6) establish in consultation with the commissioner statewide outcomes that will improve 
84.2 	the health status of mothers and children.

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

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

84.9 	Sec. 38. Minnesota Statutes 2024, section 145.987, subdivision 1, is amended to read:
84.10 		Subdivision 1.Establishment; composition of advisory council. The health equity 
84.11 	advisory and leadership (HEAL) council consists of 18 members appointed by the 
84.12 	commissioner of health, including but not limited to members who will provide representation 
84.13 	from the following groups:
84.14 	(1) African American and African heritage communities;
84.15 	(2) Asian American and Pacific Islander communities;
84.16 	(3) Latina/o/x communities;
84.17 	(4) American Indian communities and Tribal governments and nations;
84.18 	(5) disability communities;
84.19 	(6) lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities; and
84.20 	(7) representatives who reside outside the seven-county metropolitan area.

84.21 	Sec. 39. Minnesota Statutes 2024, section 145.987, subdivision 2, is amended to read:
84.22 		Subd. 2.Organization and meetings. (a) Terms, compensation, and removal of members 
84.23 	of the advisory council shall be as provided in section 15.059, subdivisions 2 to 4, except 
84.24 	that terms for advisory council members shall be for two years. Members may be reappointed 
84.25 	to serve up to two additional terms. Notwithstanding section 15.059, subdivision 6, the 
84.26 	advisory council shall not expire. The commissioner shall recommend appointments to 
84.27 	replace members vacating their positions in a timely manner, no more than three months 
84.28 	after the advisory council reviews panel recommendations.
84.29 	(b) The commissioner must convene meetings at least quarterly and must provide meeting 
84.30 	space and administrative support to the advisory council. Subcommittees may be convened 
85.1 	as necessary. Advisory council meetings are subject to the Open Meeting Law under chapter 
85.2 	13D.

85.3 	Sec. 40. [148.781] CENTRAL SERVICE TECHNICIAN.
85.4 		Subdivision 1.Application. This section applies to persons who perform the functions 
85.5 	of a central service technician in a health care facility.
85.6 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
85.7 	given:
85.8 	(1) "central service technician" means a person who decontaminates, inspects, assembles, 
85.9 	packages, and sterilizes reusable medical instruments or devices used by a health care 
85.10 	facility;
85.11 	(2) "health care facility" means a hospital or ambulatory surgical center; and
85.12 	(3) "health care practitioner" means an individual regulated by a health-related licensing 
85.13 	board as defined in section 214.01, subdivision 2, or by the commissioner of health under 
85.14 	sections 148.511 to 148.5198, to the extent the individual provides services in a health care 
85.15 	facility and the tasks of a central service technician are within the individual's scope of 
85.16 	practice. Health care practitioner includes an intern, resident, or fellow who performs or 
85.17 	assists with surgery.
85.18 		Subd. 3.Requirements for central service technician. (a) A health care facility shall 
85.19 	employ or otherwise retain the services of a central service technician only if the central 
85.20 	service technician:
85.21 	(1) has successfully passed a nationally accredited examination for central service 
85.22 	technicians and holds and maintains one of the following credentials administered by a 
85.23 	nationally accredited central service technician credentialing organization: a certified 
85.24 	registered central service technician credential, a certified endoscope reprocessor credential, 
85.25 	a certified sterile processing and distribution technician credential, or a certified flexible 
85.26 	endoscope reprocessor credential; or
85.27 	(2) provides evidence that the person was employed by or was retained as a central 
85.28 	service technician by a health care facility on or before December 31, 2027.
85.29 	(b) A central service technician who does not meet the requirements of paragraph (a), 
85.30 	clause (1), shall have 24 months from the date of hire to obtain a certified registered central 
85.31 	service technician credential, a certified endoscope reprocessor credential, a certified sterile 
86.1 	processing and distribution technician credential, or a certified flexible endoscope reprocessor 
86.2 	credential.
86.3 	(c) A person who qualifies to operate as a central service technician in a health care 
86.4 	facility under paragraph (a) must annually complete ten hours of continuing education 
86.5 	credits to remain qualified to operate as a central service technician. The continuing education 
86.6 	required under this paragraph must be related to the functions of a central service technician.
86.7 	(d) Nothing in this subdivision shall prohibit the following persons from performing the 
86.8 	tasks or functions of a central service technician:
86.9 	(1) a health care practitioner;
86.10 	(2) a person who holds or maintains a registration, certification, or license by a nationally 
86.11 	accredited credentialing organization to perform health care services; or
86.12 	(3) a student or intern performing the functions of a central service technician under the 
86.13 	direct supervision of a health care practitioner as part of the student's or intern's training or 
86.14 	internship.
86.15 	(e) A health care facility shall, upon the written request of a central service technician, 
86.16 	verify in writing the central service technician's dates of employment or the contract period 
86.17 	during which the central service technician provided services to the health care facility.

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

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

86.23 	Sec. 42. REVISOR INSTRUCTION.
 86.24 	The revisor of statutes shall renumber Minnesota Statutes, section 138.912, as section 
86.25 	144.0554. The revisor shall make any cross-reference changes necessary resulting from the 
86.26 	renumbering of the healthy eating, here at home program.

86.27 	Sec. 43. REPEALER.
 86.28 	Minnesota Statutes 2024, sections 62K.10, subdivision 3; and 138.912, subdivision 7,
86.29 	are repealed.

87.1 	ARTICLE 3
87.2 	HEALTH LICENSING BOARDS

87.3 	Section 1. Minnesota Statutes 2024, section 144.99, subdivision 1, is amended to read:
87.4 		Subdivision 1.Remedies available. The provisions of chapters 103I and 157 and sections 
87.5 	115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14), 
87.6 	and (15); 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385; 
87.7 	144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98; 
87.8 	144.992;147.037, subdivision 1b, paragraph (d); 326.70 to 326.785; 327.10 to 327.131; 
87.9 	and 327.14 to 327.28 and all rules, orders, stipulation agreements, settlements, compliance 
87.10 	agreements, licenses, registrations, certificates, and permits adopted or issued by the 
87.11 	department or under any other law now in force or later enacted for the preservation of 
87.12 	public health may, in addition to provisions in other statutes, be enforced under this section.

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

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

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

87.22 	Sec. 4. Minnesota Statutes 2024, section 147.01, subdivision 7, is amended to read:
87.23 		Subd. 7.Physician application and license fees. (a) The board may charge the following 
87.24 	nonrefundable application and license fees processed pursuant to sections 147.02, 147.03, 
87.25 	147.037, 147.0375, and 147.38:
87.26 	(1) physician application fee, $200;
87.27 	(2) physician annual registration renewal fee, $192;
87.28 	(3) physician endorsement to other states, $40;
87.29 	(4) physician emeritus license, $50;
87.30 	(5) physician late fee, $60;
88.1 	(6) nonrenewable 24-month limited license, $392;
88.2 	(7) initial physician license for limited license holder, $192;
88.3 	(6) (8) duplicate license fee, $20;
88.4 	(7) (9) certification letter fee, $25;
88.5 	(8) (10) education or training program approval fee, $100;
88.6 	(9) (11) report creation and generation fee, $60 per hour;
88.7 	(10) (12) examination administration fee (half day), $50;
88.8 	(11) (13) examination administration fee (full day), $80;
88.9 	(12) (14) fees developed by the Interstate Commission for determining physician 
88.10 	qualification to register and participate in the interstate medical licensure compact, as 
88.11 	established in rules authorized in and pursuant to section 147.38, not to exceed $1,000; and
88.12 	(13) (15) verification fee, $25.
88.13 	(b) The board may prorate the initial annual license fee. All licensees are required to 
88.14 	pay the full fee upon license renewal. The revenue generated from the fee must be deposited 
88.15 	in an account in the state government special revenue fund.

88.16 	Sec. 5. Minnesota Statutes 2024, section 147.037, is amended by adding a subdivision to 
88.17 	read:
88.18 		Subd. 1b.Limited license. (a) A limited license under this section is valid for one 
88.19 	24-month period and is not renewable or eligible for reapplication. The board may issue a 
88.20 	limited license, valid for 24 months, to any person who satisfies the requirements of 
88.21 	subdivision 1, paragraphs (a) to (c) and (e) to (g), and who:
88.22 	(1) pursuant to a license or other authorization to practice, has practiced medicine, as 
88.23 	defined in section 147.081, subdivision 3, clauses (2) to (4), for at least 60 months in the 
88.24 	previous 12 years outside of the United States;
88.25 	(2) submits sufficient evidence of an offer to practice within the context of a collaborative 
88.26 	agreement within a hospital or clinical setting where the limited license holder and physicians 
88.27 	work together to provide patient care;
88.28 	(3) provides services in a designated rural area or underserved urban community as 
88.29 	defined in section 144.1501; and
89.1 	(4) submits two letters of recommendation in support of a limited license, which must 
89.2 	include one letter from a physician with whom the applicant previously worked and one 
89.3 	letter from an administrator of the hospital or clinical setting in which the applicant previously 
89.4 	worked. The letters of recommendation must attest to the applicant's good medical standing. 
89.5 	The board may accept alternative forms of proof that demonstrate good medical standing 
89.6 	where there are extenuating circumstances that prevent an applicant from providing letters.
89.7 	(b) For purposes of this subdivision, a person has satisfied the requirements of subdivision 
89.8 	1, paragraph (e), if the person has passed steps or levels one and two of the USMLE or the 
89.9 	COMLEX-USA with passing scores as recommended by the USMLE program or National 
89.10 	Board of Osteopathic Medical Examiners within three attempts.
89.11 	(c) A person issued a limited license under this subdivision must not be required to 
89.12 	present evidence satisfactory to the board of the completion of one year of graduate clinical 
89.13 	medical training in a program accredited by a national accrediting organization approved 
89.14 	by the board.
89.15 	(d) An employer of a limited license holder must pay the limited license holder at least 
89.16 	an amount equivalent to a medical resident in a comparable field. The employer must carry 
89.17 	medical malpractice insurance covering a limited license holder for the duration of the 
89.18 	employment. The commissioner of health may issue a correction order under section 144.99, 
89.19 	subdivision 3, requiring an employer to comply with this paragraph. An employer must not 
89.20 	retaliate against or discipline an employee for raising a complaint or pursuing enforcement 
89.21 	relating to this paragraph.
89.22 	(e) The board may issue a full and unrestricted license to practice medicine to a person 
89.23 	who holds a limited license issued pursuant to paragraph (a) and who has:
89.24 	(1) held the limited license for two years and is in good standing to practice medicine 
89.25 	in Minnesota;
89.26 	(2) practiced for a minimum of 1,692 hours per year for each of the previous two years;
89.27 	(3) submitted a letter of recommendation in support of a full and unrestricted license 
89.28 	containing all attestations required under paragraph (i) from any physician who participated 
89.29 	in the collaborative agreement;
89.30 	(4) passed steps or levels one, two, and three of the USMLE or COMLEX-USA with 
89.31 	passing scores as recommended by the USMLE program or National Board of Osteopathic 
89.32 	Medical Examiners within three attempts; and
89.33 	(5) completed 20 hours of continuing medical education.
90.1 	(f) A limited license holder must submit to the board, every six months or upon request, 
90.2 	a statement certifying whether the person is still employed as a physician in Minnesota and 
90.3 	whether the person has been subjected to professional discipline as a result of the person's 
90.4 	practice. The board may suspend or revoke a limited license if a majority of the board 
90.5 	determines that the licensee is no longer employed as a physician in Minnesota by an 
90.6 	employer. The licensee must be granted an opportunity to be heard prior to the board's 
90.7 	determination. Upon request by the limited license holder, the limited license holder may 
90.8 	have 90 days to regain employment. A licensee may change employers during the duration 
90.9 	of the limited license if the licensee has another offer of employment. In the event that a 
90.10 	change of employment occurs, the licensee must still work the number of hours required 
90.11 	under paragraph (e), clause (2), to be eligible for a full and unrestricted license to practice 
90.12 	medicine.
90.13 	(g) In addition to any other remedy provided by law, the board may, without a hearing, 
90.14 	temporarily suspend the license of a limited license holder if the board finds that the limited 
90.15 	license holder has violated a statute or rule that the board is empowered to enforce and 
90.16 	continued practice by the limited license holder would create a serious risk of harm to the 
90.17 	public. The suspension shall take effect upon written notice to the limited license holder 
90.18 	specifying the statute or rule violated. The suspension shall remain in effect until the board 
90.19 	issues a final order in the matter after a hearing. At the time it issues the suspension notice, 
90.20 	the board shall schedule a disciplinary hearing to be held pursuant to the Administrative 
90.21 	Procedure Act. The limited license holder shall be provided with at least 20 days' notice of 
90.22 	any hearing held pursuant to this subdivision. The hearing shall be scheduled to begin no 
90.23 	later than 30 days after the issuance of the suspension order.
90.24 	(h) For purposes of this subdivision, "collaborative agreement" means a mutually agreed 
90.25 	upon plan for the overall working relationship and collaborative arrangement between a 
90.26 	holder of a limited license and one or more physicians licensed under this chapter that 
90.27 	designates the scope of services that can be provided to manage the care of patients. The 
90.28 	limited license holder and one of the collaborating physicians must have experience in 
90.29 	providing care to patients with the same or similar medical conditions. Under the 
90.30 	collaborative agreement, the limited license holder must shadow the collaborating physician 
90.31 	for four weeks, after which time the limited license holder must staff all patient encounters 
90.32 	with the collaborating physician for an additional four weeks. After that time, the 
90.33 	collaborating physician has discretion to allow the limited license holder to see patients 
90.34 	independently and will require the limited license holder to present patients at their discretion. 
90.35 	However, the limited license holder must be supervised by the collaborating physician for 
91.1 	a minimum of two hours per week. A limited license holder may practice medicine without 
91.2 	a collaborating physician physically present, but the limited license holder and collaborating 
91.3 	physicians must be able to easily contact each other by radio, telephone, or other 
91.4 	telecommunication device while the limited license holder practices medicine. The limited 
91.5 	license holder must have one-on-one practice reviews with each collaborating physician, 
91.6 	provided in person or through eye-to-eye electronic media while maintaining visual contact, 
91.7 	for at least two hours per week.
91.8 	(i) At least one collaborating physician must submit a letter to the board, after the limited 
91.9 	license holder has practiced under the license for 12 months, attesting that:
91.10 	(1) the limited license holder has a basic understanding of federal and state laws regarding 
91.11 	the provision of health care, including but not limited to:
91.12 	(i) medical licensing obligations and standards; and
91.13 	(ii) the Health Insurance Portability and Accountability Act, Public Law 104-191;
91.14 	(2) the limited license holder has a basic understanding of documentation standards;
91.15 	(3) the limited license holder has a thorough understanding of which medications are 
91.16 	available and unavailable in the United States;
91.17 	(4) the limited license holder has a thorough understanding of American medical standards 
91.18 	of care;
91.19 	(5) the limited license holder has demonstrated mastery of each of the following:
91.20 	(i) gathering a history and performing a physical exam;
91.21 	(ii) developing and prioritizing a differential diagnosis following a clinical encounter 
91.22 	and selecting a working diagnosis;
91.23 	(iii) recommending and interpreting common diagnostic and screening tests;
91.24 	(iv) entering and discussing orders and prescriptions;
91.25 	(v) providing an oral presentation of a clinical encounter;
91.26 	(vi) giving a patient handover to transition care responsibly;
91.27 	(vii) recognizing a patient requiring urgent care and initiating an evaluation; and
91.28 	(viii) obtaining informed consent for tests, procedures, and treatments; and
91.29 	(6) the limited license holder is providing appropriate medical care.
92.1 	(j) The board must not grant a license under this section unless the applicant possesses 
92.2 	federal immigration status that allows the applicant to practice as a physician in the United 
92.3 	States.

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

92.5 	Sec. 6. Minnesota Statutes 2024, section 147A.02, is amended to read:
92.6 	147A.02 QUALIFICATIONS FOR LICENSURE.
92.7 	(a) The board may grant a license as a physician assistant to an applicant who:
92.8 	(1) submits an application on forms approved by the board;
92.9 	(2) pays the appropriate fee as determined by the board;
92.10 	(3) has current certification from the National Commission on Certification of Physician 
92.11 	Assistants, or its successor agency as approved by the board;
92.12 	(4) certifies that the applicant is mentally and physically able to engage safely in practice 
92.13 	as a physician assistant;
92.14 	(5) has no licensure, certification, or registration as a physician assistant under current 
92.15 	discipline, revocation, suspension, or probation for cause resulting from the applicant's 
92.16 	practice as a physician assistant, unless the board considers the condition and agrees to 
92.17 	licensure;
92.18 	(6) submits any other information the board deems necessary to evaluate the applicant's 
92.19 	qualifications; and
92.20 	(7) has been approved by the board.
92.21 	(b) All persons registered as physician assistants as of June 30, 1995, are eligible for 
92.22 	continuing license renewal. All persons applying for licensure after that date shall be licensed 
92.23 	according to this chapter.
92.24 	(c) A physician assistant who qualifies for licensure must practice for at least 2,080 
92.25 	hours, within the context of a collaborative agreement, within a hospital or integrated clinical 
92.26 	setting where physician assistants and physicians work together to provide patient care. The 
92.27 	physician assistant shall submit written evidence to the board with the application, or upon 
92.28 	completion of the required collaborative practice experience. For purposes of this paragraph, 
92.29 	a collaborative agreement is a mutually agreed upon plan for the overall working relationship 
92.30 	and collaborative arrangement between a physician assistant, and one or more physicians 
92.31 	licensed under chapter 147 or licensed in another state or United States territory, that 
93.1 	designates the scope of services that can be provided collaboration necessary to manage the 
93.2 	care of patients. The physician assistant and one of the collaborative physicians must have 
93.3 	experience in providing care to patients with the same or similar medical conditions. The 
93.4 	collaborating physician is not required to be physically present so long as the collaborating 
93.5 	physician and physician assistant are or can be easily in contact with each other by radio, 
93.6 	telephone, or other telecommunication device.

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

93.13 	Sec. 8. Minnesota Statutes 2024, section 148.108, subdivision 1, is amended to read:
93.14 		Subdivision 1.Fees. In addition to the fees established in Minnesota Rules, chapter 
93.15 	2500, The board is authorized to charge the fees in this section.

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

93.17 	Sec. 9. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision to 
93.18 	read:
93.19 		Subd. 5.Chiropractic license fees. Fees for chiropractic licensure must not exceed the 
93.20 	following amounts but may be adjusted lower by board action:
93.21 	(1) initial application for licensure fee, $600;
93.22 	(2) annual renewal of an active license fee, $250;
93.23 	(3) annual renewal of an inactive license fee, 75 percent of the current active license 
93.24 	renewal fee under clause (2);
93.25 	(4) late renewal penalty fee, $150 per month late; and
93.26 	(5) application for reinstatement of a voluntarily retired or inactive license fee, $100.

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

94.1 	Sec. 10. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
94.2 	to read:
94.3 		Subd. 6.Acupuncture registration fees. Fees for acupuncture registration must not 
94.4 	exceed the following amounts but may be adjusted lower by board action:
94.5 	(1) initial application acupuncture registration fee, $400;
94.6 	(2) annual renewal of active acupuncture registration fee, $200;
94.7 	(3) annual renewal of inactive acupuncture registration fee, 75 percent of the current 
94.8 	active acupuncture registration renewal fee under clause (2); and
94.9 	(4) reinstatement of nonrenewed acupuncture registration fee, $400.

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

94.11 	Sec. 11. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
94.12 	to read:
94.13 		Subd. 7.Independent examiner registration fees. Fees for independent examiner 
94.14 	registration must not exceed the following amounts but may be adjusted lower by board 
94.15 	action:
94.16 	(1) initial application independent examiner registration fee, $400;
94.17 	(2) annual renewal of independent examiner registration fee, $200; and
94.18 	(3) reinstatement of nonrenewed independent examiner registration fee, $400.

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

94.20 	Sec. 12. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
94.21 	to read:
94.22 		Subd. 8.Animal chiropractic registration fees. Fees for animal chiropractic registration 
94.23 	must not exceed the following amounts but may be adjusted lower by board action:
94.24 	(1) initial application animal chiropractic registration fee, $400;
94.25 	(2) annual renewal of active animal chiropractic registration fee, $200;
94.26 	(3) annual renewal of inactive animal chiropractic registration fee, 75 percent of the 
94.27 	current active animal chiropractic renewal fee under clause (2); and
94.28 	(4) reinstatement of nonrenewed animal chiropractic registration fee, $400.

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

95.1 	Sec. 13. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
95.2 	to read:
95.3 		Subd. 9.Graduate preceptorship registration fee. The application fee for graduate 
95.4 	preceptorship registration is an amount not to exceed $500, but may be adjusted lower by 
95.5 	board action.

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

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

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

95.13 	Sec. 15. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
95.14 	to read:
95.15 		Subd. 11.Miscellaneous fees. Fees under this subdivision must not exceed the following 
95.16 	amounts but may be adjusted lower by board action:
95.17 	(1) annual continuing education sponsorship fee, $1,000;
95.18 	(2) individual continuing education seminar sponsorship fee, $400;
95.19 	(3) mailing list request fee, $500;
95.20 	(4) license verification fee, $50;
95.21 	(5) duplicate certificate fee, $50; and
95.22 	(6) document copies fee, $0.25 per side of document page.

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

95.24 	Sec. 16. Minnesota Statutes 2024, section 148.191, subdivision 2, is amended to read:
95.25 		Subd. 2.Powers. (a) The board is authorized to adopt and, from time to time, revise 
95.26 	rules not inconsistent with the law, as may be necessary to enable it to carry into effect the 
95.27 	provisions of sections 148.171 to 148.285 and chapter 148G. The board shall prescribe by 
95.28 	rule curricula and standards for schools and courses preparing persons for licensure under 
95.29 	sections 148.171 to 148.285 and 148G.12. It shall conduct or provide for surveys of such 
96.1 	schools and courses at such times as it may deem necessary. It shall approve such schools 
96.2 	and courses as meet the requirements of sections 148.171 to 148.285 or section 148G.12,
96.3 	and board rules. It shall examine, license, and renew the license of duly qualified applicants. 
96.4 	It shall hold examinations at least once in each year at such time and place as it may 
96.5 	determine. It shall by rule adopt, evaluate, and periodically revise, as necessary, requirements 
96.6 	for licensure and for registration and renewal of registration as defined in section 148.231
96.7 	and chapter 148G. It shall maintain a record of all persons licensed by the board to practice 
96.8 	advanced practice, professional, or practical nursing, or certified as a midwife. It shall cause 
96.9 	the prosecution of all persons violating sections 148.171 to 148.285 or chapter 148G, and 
96.10 	have power to incur such necessary expense therefor. It shall register public health nurses 
96.11 	who meet educational and other requirements established by the board by rule, including 
96.12 	payment of a fee. It shall have power to issue subpoenas, and to compel the attendance of 
96.13 	witnesses and the production of all necessary documents and other evidentiary material. 
96.14 	Any board member may administer oaths to witnesses, or take their affirmation. It shall 
96.15 	keep a record of all its proceedings.
96.16 	(b) The board shall have access to hospital, nursing home, and other medical records of 
96.17 	a patient cared for by a nurse or certified midwife under review. If the board does not have 
96.18 	a written consent from a patient permitting access to the patient's records, the nurse, certified 
96.19 	midwife, or facility shall delete any data in the record that identifies the patient before 
96.20 	providing it to the board. The board shall have access to such other records as reasonably 
96.21 	requested by the board to assist the board in its investigation. Nothing herein may be 
96.22 	construed to allow access to any records protected by section 145.64. The board shall 
96.23 	maintain any records obtained pursuant to this paragraph as investigative data under chapter 
96.24 	13.
96.25 	(c) The board may accept and expend grants or gifts of money or in-kind services from 
96.26 	a person, a public or private entity, or any other source for purposes consistent with the 
96.27 	board's role and within the scope of its statutory authority.
96.28 	(d) The board may accept registration fees for meetings and conferences conducted for 
96.29 	the purposes of board activities that are within the scope of its authority.

96.30 	Sec. 17. Minnesota Statutes 2024, section 148.241, is amended to read:
96.31 	148.241 EXPENSES.
96.32 		Subdivision 1.Appropriation. The expenses of administering sections 148.171 to 
96.33 	148.285and chapter 148G shall be paid from the appropriation made to the Minnesota 
96.34 	Board of Nursing.
97.1 		Subd. 2.Expenditure. All amounts appropriated to the board shall be held subject to 
97.2 	the order of the board to be used only for the purpose of meeting necessary expenses incurred 
97.3 	in the performance of the purposes of sections 148.171 to 148.285 and chapter 148G, and 
97.4 	the duties imposed thereby as well as the promotion of nursing or certified midwifery 
97.5 	education and standards of nursing or certified midwifery care in this state.

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

97.11 	Sec. 19. Minnesota Statutes 2024, section 148.5192, subdivision 3, is amended to read:
97.12 		Subd. 3.Supervision requirements. (a) A supervising speech-language pathologist 
97.13 	shall authorize and accept full responsibility for the performance, practice, and activity of 
97.14 	a speech-language pathology assistant. The amount and type of supervision required must 
97.15 	be based on the skills and experience of the speech-language pathology assistant. A minimum 
97.16 	of one hour every 30 days of consultative supervision time must be documented for each 
97.17 	speech-language pathology assistant.
97.18 	(b) A supervising speech-language pathologist must:
97.19 	(1) be licensed under sections 122A.183, 122A.184, or 148.511 to 148.5198;
97.20 	(2) hold a certificate of clinical competence from the American Speech-Language-Hearing 
97.21 	Association or its equivalent as approved by the commissioner; and
97.22 	(3) have completed at least ten hours of continuing education in supervision.
97.23 	(c) Once every 60 days, the supervising speech-language pathologist must treat or cotreat 
97.24 	with the speech-language pathology assistant each client on the speech-language pathology 
97.25 	assistant's caseload.
97.26 	(d) For purposes of this section, "direct supervision" means observation and guidance 
97.27 	by the supervising speech-language pathologist during the performance of a delegated duty 
97.28 	that occurs either on-site and in-view or through the use of real-time, two-way interactive 
97.29 	audio and visual communication. The supervision requirements described in this section 
97.30 	are minimum requirements. Additional supervision requirements may be imposed at the 
97.31 	discretion of the supervising speech-language pathologist.
98.1 	(e) A supervising speech-language pathologist must be available to communicate with 
98.2 	a speech-language pathology assistant at any time the assistant is in direct contact with a 
98.3 	client.
98.4 	(f) A supervising speech-language pathologist must document activities performed by 
98.5 	the assistant that are directly supervised by the supervising speech-language pathologist. 
98.6 	At a minimum, the documentation must include:
98.7 	(1) information regarding the quality of the speech-language pathology assistant's 
98.8 	performance of the delegated duties; and
98.9 	(2) verification that any delegated clinical activity was limited to duties authorized to 
98.10 	be performed by the speech-language pathology assistant under this section.
98.11 	(g) A supervising speech-language pathologist must review and cosign all informal 
98.12 	treatment notes signed or initialed by the speech-language pathology assistant.
98.13 	(h) A full-time, speech-language pathologist may supervise no more than two full-time, 
98.14 	speech-language pathology assistants or the equivalent of two full-time assistants.

98.15 	Sec. 20. Minnesota Statutes 2024, section 148.5194, subdivision 3b, is amended to read:
98.16 		Subd. 3b.Speech-language pathology assistant licensure fees. The fee for initial 
98.17 	licensure as a speech-language pathology assistant is $493 must not exceed $220. The fee 
98.18 	for licensure renewal for a speech-language pathology assistant is $493 must not exceed 
98.19 	$220.

98.20 	Sec. 21. Minnesota Statutes 2024, section 148.56, subdivision 1, is amended to read:
98.21 		Subdivision 1.Optometry defined. (a) Any person shall be deemed to be practicing 
98.22 	optometry within the meaning of sections 148.52 to 148.62 who shall in any way:
98.23 	(1) advertise as an optometrist;
98.24 	(2) employ any means, including the use of autorefractors or other automated testing 
98.25 	devices, for the measurement of the powers of vision or the adaptation of lenses or prisms 
98.26 	for the aid thereof;
98.27 	(3) possess testing appliances for the purpose of the measurement of the powers of vision;
98.28 	(4) diagnose any disease, optical deficiency or deformity, or visual or muscular anomaly 
98.29 	of the visual system consisting of the human eye and its accessory or subordinate anatomical 
98.30 	parts;
99.1 	(5) prescribe lenses, including plano or cosmetic contact lenses, or prisms for the 
99.2 	correction or the relief of same;
99.3 	(6) employ or prescribe ocular exercises, orthoptics, or habilitative and rehabilitative 
99.4 	therapeutic vision care; or
99.5 	(7) prescribe or administer legend drugs to aid in the diagnosis, cure, mitigation, 
99.6 	prevention, treatment, or management of disease, deficiency, deformity, or abnormality of 
99.7 	the human eye and adnexa included in the curricula of accredited schools or colleges of 
99.8 	optometry, and as limited by Minnesota statute and adopted rules by the Board of Optometry, 
99.9 	or who holds oneself out as being able to do so.
99.10 	(b) In the course of treatment, nothing in this section shall allow:
99.11 	(1) legend drugs to be administered intravenously, intramuscularly, or by injection, 
99.12 	except for treatment of anaphylaxis or by sub-Tenon, retrobulbar, or intravitreal injection;
99.13 	(2) invasive surgery including, but not limited to, surgery using lasers;
99.14 	(3) Schedule II and III oral legend drugs and oral steroids to be administered or 
99.15 	prescribed; or
99.16 	(4) oral antivirals to be prescribed or administered for more than ten days; or steroids 
99.17 	to be administered or prescribed for more than 14 days without consultation with a physician.
99.18 	(5) oral carbonic anhydrase inhibitors to be prescribed or administered for more than 
99.19 	seven days.

99.20 	Sec. 22. Minnesota Statutes 2024, section 148.6401, is amended to read:
99.21 	148.6401 SCOPE.
99.22 	Sections 148.6401 to 148.6449 148.645 apply to persons who are applicants for licensure, 
99.23 	who are licensed, who use protected titles, or who represent that they are licensed as 
99.24 	occupational therapists or occupational therapy assistants practitioners.

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

100.1 	Sec. 24. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
100.2 	to read:
100.3 		Subd. 2a.Accreditation Council for Occupational Therapy Education or 
100.4 	ACOTE. "Accreditation Council for Occupational Therapy Education" or "ACOTE" means 
100.5 	the entity that accredits occupational therapy education programs in the United States and 
100.6 	its territories and establishes, approves, and administers educational standards ensuring 
100.7 	consistency across all occupational therapy education.

100.8 	Sec. 25. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
100.9 	to read:
100.10 		Subd. 5a.Continuing competence. "Continuing competence" means the process in 
100.11 	which an occupational therapy practitioner develops and maintains the knowledge, critical 
100.12 	reasoning, interpersonal skills, performance skills, and ethical practice necessary to perform 
100.13 	their occupational therapy responsibilities.

100.14 	Sec. 26. Minnesota Statutes 2024, section 148.6402, subdivision 7, is amended to read:
100.15 		Subd. 7.Credentialing Certification examination for occupational 
100.16 	therapist. "Credentialing Certification examination for occupational therapist" means the 
100.17 	examination sponsored by the National Board for Certification in Occupational Therapy 
100.18 	for credentialing certification as an a registered occupational therapist, registered.

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

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

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

101.6 	Sec. 30. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
101.7 	to read:
101.8 		Subd. 13a.National Board for Certification in Occupational Therapy or 
101.9 	NBCOT. "National Board for Certification in Occupational Therapy" or "NBCOT" means 
101.10 	the entity that administers the certification examination and provides initial and renewal 
101.11 	board certification for occupational therapy practitioners providing services in the United 
101.12 	States, or any successor entity performing the certification examination and initial and 
101.13 	renewal board certification.

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

101.20 	Sec. 32. Minnesota Statutes 2024, section 148.6402, subdivision 16, is amended to read:
101.21 		Subd. 16.Occupational therapy assistant. "Occupational therapy assistant" means an 
101.22 	individual who meets the qualifications for an occupational therapy assistant in sections 
101.23 	148.6401 to 148.6449 and is licensed by the board licensed to assist in the practice of 
101.24 	occupational therapy under sections 148.6401 to 148.645 who works under the appropriate 
101.25 	supervision of and in partnership with an occupational therapist, unless exempted under 
101.26 	section 148.6432.

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

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

102.4 	Sec. 35. Minnesota Statutes 2024, section 148.6402, subdivision 20, is amended to read:
102.5 		Subd. 20.Licensee. "Licensee" means a person who meets the requirements of sections 
102.6 	148.6401 to 148.6449 148.645.

102.7 	Sec. 36. Minnesota Statutes 2024, section 148.6402, subdivision 23, is amended to read:
102.8 		Subd. 23.Service competency. (a) "Service competency" of an occupational therapy 
102.9 	assistant in performing evaluation tasks means the ability of an occupational therapy assistant 
102.10 	to obtain the same information as the supervising occupational therapist when evaluating 
102.11 	a client's function.
102.12 	(b) "Service competency" of an occupational therapy assistant in performing treatment 
102.13 	procedures means the ability of an occupational therapy assistant to perform treatment 
102.14 	procedures in a manner such that the outcome, documentation, and follow-up are equivalent 
102.15 	to that which would have been achieved had the supervising occupational therapist performed 
102.16 	the treatment procedure.
102.17 	(c) "Service competency" of an occupational therapist means the ability of an occupational 
102.18 	therapist to consistently perform an assessment task or intervention procedure with the level 
102.19 	of skill recognized as satisfactory within the appropriate acceptable prevailing practice
102.20 	national practice standards of occupational therapy.

102.21 	Sec. 37. Minnesota Statutes 2024, section 148.6402, subdivision 25, is amended to read:
102.22 		Subd. 25.Temporary licensure. "Temporary licensure" means a method of licensure 
102.23 	described in section 148.6418, by which an individual who (1) has completed an approved 
102.24 	or accredited education program but has not met the examination requirement; or (2) 
102.25 	possesses a credential from another jurisdiction or the National Board for Certification in 
102.26 	Occupational Therapy but who has not submitted the documentation required by section 
102.27 	148.6420, subdivisions 3 and 4, may qualify for Minnesota licensure for a limited time 
102.28 	period.

103.1 	Sec. 38. Minnesota Statutes 2024, section 148.6403, is amended to read:
103.2 	148.6403 LICENSURE; PROTECTED TITLES AND RESTRICTIONS ON USE; 
103.3 	EXEMPT PERSONS; SANCTIONS.
103.4 		Subdivision 1.Unlicensed practice prohibited. A person must not engage in the practice 
103.5 	of occupational therapy unless the person is licensed as an occupational therapy practitioner 
103.6 	in accordance with sections 148.6401 to 148.6449 148.645.
103.7 		Subd. 2.Protected titles and restrictions on use. Use of the phrase "occupational 
103.8 	therapy," or "occupational therapist," or "occupational therapy assistant," or the initials 
103.9 	"OT" or "OTA" alone or in combination with any other words or initials to form an 
103.10 	occupational title, or to indicate or imply that the person is licensed by the state as an 
103.11 	occupational therapist or occupational therapy assistant, is prohibited unless that person is 
103.12 	licensed under sections 148.6401 to 148.6449 148.645.
103.13 		Subd. 3.Use of "Minnesota licensed." Use of the term "Minnesota licensed" in 
103.14 	conjunction with titles protected under this section by any person is prohibited unless that 
103.15 	person is licensed under sections 148.6401 to 148.6449 148.645.
103.16 		Subd. 4.Persons licensed or certified in other states. A person who is licensed in 
103.17 	Minnesota and licensed or certified in another state jurisdiction may use the designation 
103.18 	"licensed" or "certified" with a protected title only if the state jurisdiction of licensure or 
103.19 	certification is clearly indicated.
103.20 		Subd. 5.Exempt persons. This section does not apply to:
103.21 	(1) a person employed as an occupational therapy practitioner by the government of the 
103.22 	United States or any agency of it. However, use of the protected titles under those 
103.23 	circumstances is allowed only in connection with performance of official duties for the 
103.24 	federal government;
103.25 	(2) a student participating in supervised fieldwork or supervised coursework that is 
103.26 	necessary to meet the requirements of section 148.6408, subdivision 1, or 148.6410, 
103.27 	subdivision 1, if the person is designated by a title which clearly indicates the person's status 
103.28 	as a student trainee. Any use of the protected titles under these circumstances is allowed 
103.29 	only while the person is performing the duties of the supervised fieldwork or supervised 
103.30 	coursework; or
103.31 	(3) a person visiting and then leaving the state and performing occupational therapy 
103.32 	services while in the state, if the services are performed no more than 30 days in a calendar 
104.1 	year as part of a professional activity that is limited in scope and duration and is in association 
104.2 	with an occupational therapist licensed under sections 148.6401 to 148.6449, and
104.3 	(i) the (3) a person who is credentialed under the law of another state which that has 
104.4 	credentialing requirements at least as stringent as the requirements of sections 148.6401 to 
104.5 	148.6449 148.645; or
104.6 	(ii) the (4) a person who meets the requirements for certification as an occupational 
104.7 	therapist registered (OTR) or a certified occupational therapy assistant (COTA), established 
104.8 	by the National Board for Certification in Occupational Therapy.; or
104.9 	(5) an occupational therapy practitioner who possesses an active compact privilege under 
104.10 	section 148.645.
104.11 		Subd. 6.Sanctions. A person who practices occupational therapy or holds out as an 
104.12 	occupational therapy practitioner by or through the use of any title described in subdivision 
104.13 	2 without prior licensure according to sections 148.6401 to 148.6449 148.645 is subject to 
104.14 	sanctions or action against continuing the activity according to section 148.6448, chapter 
104.15 	214, or other statutory authority.
104.16 		Subd. 7.Exemption. Nothing in sections 148.6401 to 148.6449 148.645 shall prohibit 
104.17 	the practice of any profession or occupation licensed or registered by the state by any person 
104.18 	duly licensed or registered to practice the profession or occupation or to perform any act 
104.19 	that falls within the scope of practice of the profession or occupation.

104.20 	Sec. 39. Minnesota Statutes 2024, section 148.6404, is amended to read:
104.21 	148.6404 SCOPE OF PRACTICE.
104.22 	(a) The practice of occupational therapy means the therapeutic use of everyday activities
104.23 	life occupations with individuals or, groups, or populations for the purpose of enhancing 
104.24 	or enabling participation in those occupations. It is the promotion of The practice of 
104.25 	occupational therapy promotes health and well-being through the use of occupational therapy 
104.26 	services that includes screening, evaluation, intervention, and consultation to develop, 
104.27 	recover, and maintain a client's:
104.28 	(1) sensory integrative, neuromuscular, motor, emotional, motivational, cognitive, or 
104.29 	psychosocial components of performance;
104.30 	(2) daily living skills;
104.31 	(3) feeding and swallowing skills;
104.32 	(4) play and leisure skills;
105.1 	(5) educational participation skills;
105.2 	(6) functional performance and work participation skills;
105.3 	(7) community mobility; and
105.4 	(8) health and wellness.
105.5 	(b) Occupational therapy services include but are not limited to:
105.6 	(1) designing, fabricating, or applying rehabilitative technology, such as selected orthotic 
105.7 	and prosthetic devices, and providing training in the functional use of these devices;
105.8 	(2) designing, fabricating, or adapting assistive technology and providing training in the 
105.9 	functional use of assistive devices;
105.10 	(3) adapting environments using assistive technology such as environmental controls, 
105.11 	wheelchair modifications, and positioning; and
105.12 	(4) employing applying physical agent, manual, and mechanical modalities in preparation 
105.13 	for or as an adjunct to purposeful activity to meet established functional occupational therapy 
105.14 	goals; and
105.15 	(5) educating and training individuals, including families, caregivers, groups, and 
105.16 	populations.
105.17 	(c) Occupational therapy services must be based on nationally established standards of 
105.18 	practice.

105.19 	Sec. 40. Minnesota Statutes 2024, section 148.6405, is amended to read:
105.20 	148.6405 LICENSURE APPLICATION REQUIREMENTS: PROCEDURES AND 
105.21 	QUALIFICATIONS.
105.22 	(a) An applicant for licensure must comply with the application requirements in section 
105.23 	148.6420. To qualify for licensure, an applicant must satisfy one of the requirements in 
105.24 	paragraphs (b) to (f) sections 148.6408 to 148.6415, or section 148.645 and not be subject 
105.25 	to denial of licensure under section 148.6448.
105.26 	(b) A person who applies for licensure as an occupational therapist and who has not 
105.27 	been credentialed by the National Board for Certification in Occupational Therapy or another 
105.28 	jurisdiction must meet the requirements in section 148.6408.
105.29 	(c) A person who applies for licensure as an occupational therapy assistant and who has 
105.30 	not been credentialed by the National Board for Certification in Occupational Therapy or 
105.31 	another jurisdiction must meet the requirements in section 148.6410.
106.1 	(d) A person who is certified by the National Board for Certification in Occupational 
106.2 	Therapy may apply for licensure by equivalency and must meet the requirements in section 
106.3 	148.6412.
106.4 	(e) A person who is credentialed in another jurisdiction and who was previously certified 
106.5 	by the National Board for Certification in Occupational Therapy may apply for licensure 
106.6 	by reciprocity and must meet the requirements in section 148.6415.
106.7 	(f) (b) A person who applies for temporary licensure must meet the requirements in 
106.8 	section 148.6418.
106.9 	(c) A person who applies for licensure under section 148.6408 or 148.6410 more than 
106.10 	two years after the person's initial NBCOT certification was issued and who has not practiced 
106.11 	in any jurisdiction must submit:
106.12 	(1) a completed and signed application for licensure on forms provided by the board 
106.13 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
106.14 	and (2); and
106.15 	(2) proof of a minimum of 24 continuing education contact hours by an occupational 
106.16 	therapist applicant, or a minimum of 18 hours by an occupational therapy assistant applicant, 
106.17 	completed within the two years proceeding the application and meeting the requirements 
106.18 	of section 148.6443.
106.19 	(g) (d) A person who applies for licensure under paragraph (b), (c), or (f) more than two 
106.20 	and less than four years after meeting the examination requirements in section 148.6408, 
106.21 	subdivision 2, or 148.6410, subdivision 2, section 148.6408 or 148.6410 after the person's 
106.22 	initial NBCOT certification has expired must submit the following:
106.23 	(1) a completed and signed application for licensure on forms provided by the board
106.24 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
106.25 	and (2); and
106.26 	(2) the license application fee required under section 148.6445; evidence of:
106.27 	(i) completion of an occupational therapy refresher program that contains both theoretical 
106.28 	and clinical components completed within the last year; or
106.29 	(ii) current NBCOT certification.
106.30 	(3) if applying for occupational therapist licensure, proof of having met a minimum of 
106.31 	24 contact hours of continuing education in the two years preceding licensure application, 
107.1 	or if applying for occupational therapy assistant licensure, proof of having met a minimum 
107.2 	of 18 contact hours of continuing education in the two years preceding licensure application;
107.3 	(4) verified documentation of successful completion of 160 hours of supervised practice 
107.4 	approved by the board under a limited license specified in section 148.6425, subdivision 3, 
107.5 	paragraph (c); and
107.6 	(5) additional information as requested by the board to clarify information in the 
107.7 	application, including information to determine whether the individual has engaged in 
107.8 	conduct warranting disciplinary action under section 148.6448. The information must be 
107.9 	submitted within 30 calendar days from the date of the board's request.
107.10 	(h) A person who applies for licensure under paragraph (b), (c), or (f) four years or more 
107.11 	after meeting the examination requirements in section 148.6408, subdivision 2, or 148.6410, 
107.12 	subdivision 2, must:
107.13 	(1) meet all the requirements in paragraph (g) except clauses (3) and (4);
107.14 	(2) submit documentation of having retaken and achieved a qualifying score on the 
107.15 	credentialing examination for occupational therapists or occupational therapy assistants, or 
107.16 	of having completed an occupational therapy refresher program that contains both a 
107.17 	theoretical and clinical component approved by the board; and
107.18 	(3) submit verified documentation of successful completion of 480 hours of supervised 
107.19 	practice approved by the board under a limited license specified in section 148.6425, 
107.20 	subdivision 3, paragraph (c). The 480 hours of supervised practice must be completed in 
107.21 	six months and may be completed at the applicant's place of work. Only refresher courses 
107.22 	completed within one year prior to the date of application qualify for approval.

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

108.1 	Sec. 42. Minnesota Statutes 2024, section 148.6408, subdivision 2, is amended to read:
108.2 		Subd. 2.Qualifying examination score required. (a) An applicant must achieve a 
108.3 	qualifying score on the credentialing certification examination for occupational therapist.
108.4 	(b) The board shall determine the qualifying score for the credentialing certification
108.5 	examination for occupational therapist. In determining the qualifying score, the board shall 
108.6 	consider the cut scoreas recommended by the National Board for Certification in 
108.7 	Occupational Therapy, or other national credentialing certification organization approved 
108.8 	by the board, using the modified Angoff method for determining cut score or another method 
108.9 	for determining cut score that is recognized as appropriate and acceptable by industry 
108.10 	standards.
108.11 	(c) The applicant is responsible for Applicants for licensure must:
108.12 	(1) making make arrangements to take the credentialing certification examination for 
108.13 	an occupational therapist;
108.14 	(2) bearing bear all expenses associated with taking the examination; and
108.15 	(3) having the examination scores sent directly to the board from the testing service that 
108.16 	administers the examination submit an application and other materials as required by the 
108.17 	board under section 148.6420.

108.18 	Sec. 43. Minnesota Statutes 2024, section 148.6410, is amended by adding a subdivision 
108.19 	to read:
108.20 		Subd. 1a.Qualifications. To be licensed as an occupational therapist assistant, an 
108.21 	applicant must:
108.22 	(1) satisfy the education and examination requirements of subdivisions 1b and 2; or
108.23 	(2) satisfy the requirements for licensure by equivalency under section 148.6412 or 
108.24 	licensure by reciprocity under section 148.6415 as applicable based on the current status of 
108.25 	the applicant's NBCOT certification.

108.26 	Sec. 44. Minnesota Statutes 2024, section 148.6410, subdivision 2, is amended to read:
108.27 		Subd. 2.Qualifying examination score required. (a) An applicant for licensure must 
108.28 	achieve a qualifying score on the credentialing certification examination for occupational 
108.29 	therapy assistants.
108.30 	(b) The board shall determine the qualifying score for the credentialing certification
108.31 	examination for occupational therapy assistants. In determining the qualifying score, the 
109.1 	board shall consider the cut score as recommended by the National Board for Certification 
109.2 	in Occupational Therapy, or other national credentialing certification organization approved 
109.3 	by the board, using the modified Angoff method for determining cut score or another method 
109.4 	for determining cut score that is recognized as appropriate and acceptable by industry 
109.5 	standards.
109.6 	(c) The applicant is responsible for Applicants for licensure must:
109.7 	(1) making make all arrangements to take the credentialing certification examination 
109.8 	for occupational therapy assistants;
109.9 	(2) bearing bear all expense associated with taking the examination; and
109.10 	(3) having the examination scores sent directly to the board from the testing service that 
109.11 	administers the examination submit an application and other materials as required by the 
109.12 	board under section 148.6420.

109.13 	Sec. 45. Minnesota Statutes 2024, section 148.6412, subdivision 2, is amended to read:
109.14 		Subd. 2.Persons currently certified by National Board for Certification in 
109.15 	Occupational Therapy NBCOT. The board may license any person certified by the National 
109.16 	Board for Certification in Occupational Therapy who holds current NBCOT certification
109.17 	as an occupational therapist if the board determines the requirements for certification are 
109.18 	equivalent to or exceed the requirements for licensure as an occupational therapist under 
109.19 	section 148.6408 therapy practitioner. The board may license any person certified by the 
109.20 	National Board for Certification in Occupational Therapy as an occupational therapy assistant 
109.21 	if the board determines the requirements for certification are equivalent to or exceed the 
109.22 	requirements for licensure as an occupational therapy assistant under section 148.6410.
109.23 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
109.24 	for discipline in sections 148.6401 to 148.6449 148.645.

109.25 	Sec. 46. Minnesota Statutes 2024, section 148.6412, subdivision 3, is amended to read:
109.26 		Subd. 3.Application procedures. Applicants for licensure by equivalency must provide:
109.27 	(1) the application materials as required by section 148.6420, subdivisions subdivision
109.28 	1, 3, and 4; and.
109.29 	(2) the fees required by section 148.6445.

110.1 	Sec. 47. Minnesota Statutes 2024, section 148.6415, is amended to read:
110.2 	148.6415 LICENSURE BY RECIPROCITY.
110.3 	A person who is not certified by the National Board for Certification in Occupational 
110.4 	Therapy The board may license any person who does not hold current NBCOT certification
110.5 	but who holds a compact privilege or a current credential as an occupational therapist therapy 
110.6 	practitioner in the District of Columbia or a state or territory of the United States whose 
110.7 	standards for credentialing are determined by the board to be equivalent to or exceed the 
110.8 	requirements for licensure under section 148.6408may be eligible for licensure by reciprocity 
110.9 	as an occupational therapist. A person who is not certified by the National Board for 
110.10 	Certification in Occupational Therapy but who holds a current credential as an occupational 
110.11 	therapy assistant in the District of Columbia or a state or territory of the United States whose 
110.12 	standards for credentialing are determined by the board to be equivalent to or exceed the 
110.13 	requirements for licensure under section 148.6410 may be eligible for licensure by reciprocity 
110.14 	as an occupational therapy assistant. or 148.6410 as an occupational therapy practitioner.
110.15 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
110.16 	for discipline in sections 148.6401 to 148.6449 148.645. An applicant must provide:
110.17 	(1) the application materials as required by section 148.6420, subdivisions subdivision
110.18 	1, 3, and 4; and
110.19 	(2) the fees required by section 148.6445;
110.20 	(3) a copy of a current and unrestricted credential for the practice of occupational therapy 
110.21 	as either an occupational therapist or occupational therapy assistant;
110.22 	(4) a letter from the jurisdiction that issued the credential describing the applicant's 
110.23 	qualifications that entitled the applicant to receive the credential; and
110.24 	(5) (2) other information necessary to determine whether the credentialing standards of 
110.25 	the jurisdiction that issued the credential are equivalent to or exceed the requirements for 
110.26 	licensure under sections 148.6401 to 148.6449 148.645.

110.27 	Sec. 48. Minnesota Statutes 2024, section 148.6418, is amended to read:
110.28 	148.6418 TEMPORARY LICENSURE.
110.29 		Subdivision 1.Application. The board shall issue temporary licensure as an occupational 
110.30 	therapist or occupational therapy assistant practitioner to applicants who are not the subject 
110.31 	of a disciplinary action or past disciplinary action, nor disqualified on the basis of items 
110.32 	listed in section 148.6448, subdivision 1.
111.1 		Subd. 2.Procedures. To be eligible for temporary licensure, an applicant must submit 
111.2 	a completed application for temporary licensure on forms provided by the board, the fees 
111.3 	required by section 148.6445, and one of the following:
111.4 	(1) evidence of successful completion of the requirements in section 148.6408, 
111.5 	subdivision 1, or 148.6410, subdivision 1;
111.6 	(2) a copy of a current and unrestricted credential for the practice of occupational therapy 
111.7 	as either an occupational therapist or occupational therapy assistant practitioner in another 
111.8 	jurisdiction; or
111.9 	(3) a copy of a current and unrestricted certificate certification from the National Board 
111.10 	for Certification in Occupational Therapy stating that the applicant is certified as an 
111.11 	occupational therapist or occupational therapy assistant practitioner.
111.12 		Subd. 3.Additional documentation. Persons who are credentialed certified by the 
111.13 	National Board for Certification in Occupational Therapy or credentialed by another 
111.14 	jurisdiction must provide an affidavit a statement with the application for temporary licensure 
111.15 	stating that they are not the subject of a pending investigation or disciplinary action and 
111.16 	have not been the subject of a disciplinary action in the past.
111.17 		Subd. 4.Supervision required. An applicant who has graduated from an accredited 
111.18 	occupational therapy program, as required by section 148.6408, subdivision 1, or 148.6410, 
111.19 	subdivision 1, and who has not passed the examination required by section 148.6408, 
111.20 	subdivision 2, or 148.6410, subdivision 2, must practice under the supervision of a licensed 
111.21 	occupational therapist. The supervising therapist must, at a minimum, supervise the person 
111.22 	working under temporary licensure in the performance of the initial evaluation, determination 
111.23 	of the appropriate intervention plan, and periodic review and modification of the intervention 
111.24 	plan. The supervising therapist must observe the person working under temporary licensure 
111.25 	in order to ensure service competency in carrying out evaluation, intervention planning, 
111.26 	and intervention implementation. The frequency of face-to-face collaboration between the 
111.27 	person working under temporary licensure and the supervising therapist must be based on 
111.28 	the condition of each patient or client, the complexity of intervention and evaluation 
111.29 	procedures, and the proficiencies of the person practicing under temporary licensure. 
111.30 	Following demonstrated service competency of the applicant, supervision must occur no 
111.31 	less than every ten intervention days or every 30 calendar days, whichever occurs first. The 
111.32 	occupational therapist or occupational therapy assistant practitioner working under temporary 
111.33 	licensure must provide verification of supervision on the application form provided by the 
111.34 	board. Supervising occupational therapists must have a minimum of six months of fully 
112.1 	licensed practice to supervise a temporary licensee. The occupational therapy practitioner 
112.2 	working under temporary licensure must notify the board before changing supervision.
112.3 		Subd. 5.Qualifying examination requirement; expiration and renewability. (a) A 
112.4 	person issued a temporary license pursuant to subdivision 2, clause (1), must demonstrate 
112.5 	to the board within the temporary licensure period successful completion of the qualifying 
112.6 	examination requirement under section 148.6408, subdivision 2, or section 148.6410, 
112.7 	subdivision 2. A temporary license holder who fails the qualifying examination for a second 
112.8 	time shall have their temporary license revoked effective upon notification to the temporary 
112.9 	license holder of the examination score. It is the temporary license holder's obligation to 
112.10 	submit to the board their qualifying examination scores and to refrain from practice if their 
112.11 	temporary license is revoked. Failure to do so subjects the temporary license holder to 
112.12 	disciplinary action pursuant to section 148.6448, subdivision 1, clause (5) (6). The board 
112.13 	must not issue a temporary license to a person with two or more certification examination 
112.14 	failures.
112.15 	(b) A temporary license expires six months from the date of issuance or on the date the 
112.16 	board grants or denies licensure, whichever occurs first.
112.17 	(c) A temporary license is not renewable.

112.18 	Sec. 49. Minnesota Statutes 2024, section 148.6420, subdivision 1, is amended to read:
112.19 		Subdivision 1.Applications for initial licensure. (a) An applicant for initial licensure 
112.20 	must:
112.21 	(1) submit a completed application for licensure on forms provided by the board and 
112.22 	must supply the all information and documentation requested on the application, including:
112.23 	(i) the applicant's name, business address and business telephone number, business 
112.24 	setting, primary email address, and daytime home or mobile telephone number;
112.25 	(ii) the name and location of the occupational therapy program the applicant completed;
112.26 	(iii) (ii) a description of the applicant's education and training, including the name and 
112.27 	location of the occupational therapy program the applicant completed and a list of degrees 
112.28 	received from all other educational institutions attended;
112.29 	(iv) (iii) the applicant's work history for the six years preceding the application;
112.30 	(v) (iv) a list of all credentials currently and previously held in Minnesota and other 
112.31 	jurisdictions;
112.32 	(vi) (v) a description of any jurisdiction's refusal to credential the applicant;
113.1 	(vii) (vi) a description of all professional disciplinary actions initiated against the applicant 
113.2 	in any jurisdiction;
113.3 	(viii) (vii) information on any physical or mental condition or substance use disorder 
113.4 	that impairs the person's ability to engage in the practice of occupational therapy with 
113.5 	reasonable judgment or safety;
113.6 	(ix) (viii) a description of any misdemeanor or felony conviction that relates to honesty 
113.7 	or to the practice of occupational therapy charges or convictions; and
113.8 	(x) (ix) a description of any state or federal court order, including a conciliation court 
113.9 	judgment or a disciplinary order, related to the individual's occupational therapy practice;
113.10 	(2) submit with the application all fees required by section 148.6445;
113.11 	(3) sign a statement that the information in the application is true and correct to the best 
113.12 	of the applicant's knowledge and belief;
113.13 	(4) sign a waiver authorizing the board to obtain access to the applicant's records in this 
113.14 	or any other state in which the applicant holds or previously held a credential for the practice 
113.15 	of an occupation, has completed an accredited occupational therapy education program, or 
113.16 	engaged in the practice of occupational therapy;
113.17 	(x) any legal information required under chapter 214;
113.18 	(xi) either documentation to demonstrate the completion of the required education and 
113.19 	examination requirements under section 148.6408, subdivisions 1b and 2, or 148.6410, 
113.20 	subdivisions 1b and 2; for applicants for licensure by equivalency under section 148.6412, 
113.21 	documentation of current NBCOT certification; for applicants for licensure by reciprocity 
113.22 	under section 148.6415, documentation submitted directly by the appropriate commission 
113.23 	or government body verifying the license or credential; or verification from the Compact 
113.24 	Commission of the applicant's practice status in Compact Commission states;
113.25 	(xii) all application fees required by section 148.6445;
113.26 	(xiii) evidence of completing a criminal background check according to section 214.075; 
113.27 	and
113.28 	(xiv) a signed statement affirming that the information in the application is true and 
113.29 	correct to the best of the applicant's knowledge and belief;
113.30 	(5)(2) submit additional information as requested by the board; and
113.31 	(6) (3) submit the any additional information required for licensure by equivalency, 
113.32 	licensure by reciprocity, licensure by compact privilege, and temporary licensure as specified 
114.1 	in sections 148.6408 to 148.6418. and 148.645. An applicant applying under section 148.6418 
114.2 	is exempt from providing documentation related to a criminal background check under 
114.3 	clause (1), item (xiii). An applicant applying under section 148.6418, subdivision 4, is 
114.4 	exempt from providing documentation related to previously held licenses or credentials 
114.5 	under clause (1), item (iv).
114.6 	(b) The board must not verify the status of an applicant under paragraph (a), clause (1), 
114.7 	item (xi), by using another jurisdiction's publicly available website unless the other 
114.8 	jurisdiction fails to provide the requested documentation after the applicant provides 
114.9 	documentation of making the request.

114.10 	Sec. 50. Minnesota Statutes 2024, section 148.6423, subdivision 1, is amended to read:
114.11 		Subdivision 1.Renewal requirements. To be eligible for licensure renewal, a licensee 
114.12 	must:
114.13 	(1) submit a completed and signed application for licensure renewal; on forms provided 
114.14 	by the board, including:
114.15 	(i) updated personal information, including the renewal applicant's name, business 
114.16 	address and business telephone number, primary email address, and home or mobile telephone 
114.17 	number;
114.18 	(ii) information regarding any change to the renewal applicant's responses to section 
114.19 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
114.20 	(iii) a signed statement affirming that the information in the renewal application is true 
114.21 	and correct to the best of the applicant's knowledge and belief; and
114.22 	(iv) any legal information required under chapter 214;
114.23 	(2) submit the renewal fee required under section 148.6445;
114.24 	(3) if audited, submit proof of having met the continuing education requirement of section 
114.25 	148.6443; and
114.26 	(4) submit additional information as requested by the board to clarify information 
114.27 	presented in the renewal application. The information must be submitted within 30 calendar 
114.28 	days of the board's request.

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

115.5 	Sec. 52. Minnesota Statutes 2024, section 148.6423, subdivision 2, is amended to read:
115.6 		Subd. 2.Renewal deadline. (a) Except as provided in paragraph (c), licenses must be 
115.7 	renewed every two years on or before the first day of the month after the licensee's birth 
115.8 	month. Licensees must comply with the following procedures in paragraphs (b) to (e).
115.9 	(b) Each license must state an expiration date. An application for licensure renewal must 
115.10 	be received by the board at least 30 calendar days on or before the expiration date.
115.11 	(c) If the board changes the renewal schedule and the expiration date is less than two 
115.12 	years, the fee and the continuing education contact hours to be reported at the next renewal 
115.13 	must be prorated.
115.14 	(d) An application for licensure renewal not received within the time required under 
115.15 	paragraph (b), but received on or before the expiration date, must be accompanied by a late 
115.16 	fee in addition to the renewal fee specified by section 148.6445.
115.17 	(e) Licensure renewals received after the expiration date must comply with the 
115.18 	requirements of section 148.6425.

115.19 	Sec. 53. Minnesota Statutes 2024, section 148.6425, subdivision 2, is amended to read:
115.20 		Subd. 2.Licensure renewal within one year after licensure expiration date. A licensee 
115.21 	whose application for licensure renewal is received after the licensure expiration date but 
115.22 	within one year of the expiration date must submit the following:
115.23 	(1) a completed and signed renewal application for licensure following lapse in licensed 
115.24 	status; on forms provided by the board, including:
115.25 	(i) updated personal information, including the renewal applicant's name, business 
115.26 	address and business telephone number, primary email address, and home or mobile telephone 
115.27 	number;
115.28 	(ii) information regarding any change to the renewal applicant's responses to section 
115.29 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
115.30 	(iii) a signed statement affirming that the information in the renewal application is true 
115.31 	and correct to the best of the applicant's knowledge and belief;
116.1 	(iv) information regarding any change to the renewal applicant's responses to section 
116.2 	148.6420, subdivision 1, paragraph (a), clause (1), item (xi);
116.3 	(v) NBCOT verification of certification documentation; and
116.4 	(vi) any legal information required under chapter 214;
116.5 	(2) the renewal fee and the late fee required under section 148.6445;
116.6 	(3) proof of having met the continuing education requirements in section 148.6443, 
116.7 	subdivision 1; and
116.8 	(4) an employment verification form; and
116.9 	(4) (5) additional information as requested by the board to clarify information in the 
116.10 	application, including information to determine whether the licensee has engaged in conduct 
116.11 	warranting disciplinary action as set forth in section 148.6448. The information must be 
116.12 	submitted within 30 calendar days from the date of the board's request.

116.13 	Sec. 54. Minnesota Statutes 2024, section 148.6425, is amended by adding a subdivision 
116.14 	to read:
116.15 		Subd. 4.Licensure renewal within two years after license expiration date. A licensee 
116.16 	whose application for license renewal is received more than one year but less than two years 
116.17 	after the expiration date must submit the following:
116.18 	(1) a completed and signed renewal application for licensure following lapse in licensed 
116.19 	status on forms provided by the board, including all information listed in subdivision 2, 
116.20 	clause (1);
116.21 	(2) the renewal fee and the late fee required under section 148.6445;
116.22 	(3) proof of having met the continuing education requirements in section 148.6443;
116.23 	(4) an employment verification form;
116.24 	(5) evidence of completion of a criminal background check as required under section 
116.25 	214.075 and the associated fee; and
116.26 	(6) additional information as requested by the board to clarify information in the 
116.27 	application, including information to determine whether the licensee has engaged in conduct 
116.28 	warranting disciplinary action as set forth in section 148.6448. The information must be 
116.29 	submitted within 30 calendar days from the date of the board's request.

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

117.9 	Sec. 56. Minnesota Statutes 2024, section 148.6428, is amended to read:
117.10 	148.6428 CHANGE OF CONTACT INFORMATION OR EMPLOYMENT.
117.11 	A licensee who changes a name, primary email address, address, employment, business 
117.12 	address, or business telephone number must inform the board of the change of name, primary 
117.13 	email address, address, employment, business address, or business telephone number within 
117.14 	30 calendar days from the effective date of the change. A change in name must be 
117.15 	accompanied by a copy of a marriage certificate, government-issued identification card, 
117.16 	Social Security card, or court order. All notices or other correspondence served on a licensee 
117.17 	by the board at the licensee's contact information on file with the board must be considered 
117.18 	as having been received by the licensee.

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

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

117.28 	Sec. 59. Minnesota Statutes 2024, section 148.6432, is amended by adding a subdivision 
117.29 	to read:
117.30 		Subd. 1a.Delegation of duties. (a) The occupational therapist may delegate to an 
117.31 	occupational therapy assistant those portions of the client's evaluation, reevaluation, and 
118.1 	intervention that, according to prevailing national practice standards, can be performed by 
118.2 	an occupational therapy assistant.
118.3 	(b) The occupational therapist is responsible for all duties delegated to the occupational 
118.4 	therapy assistant.
118.5 	(c) The occupational therapist may not delegate portions of an evaluation or reevaluation 
118.6 	of a person whose condition is changing rapidly.

118.7 	Sec. 60. Minnesota Statutes 2024, section 148.6432, subdivision 2, is amended to read:
118.8 		Subd. 2.Evaluations. The occupational therapist shall determine the frequency of 
118.9 	evaluations and reevaluations for each client. The occupational therapy assistant shall inform 
118.10 	the occupational therapist of the need for more frequent reevaluation if indicated by the 
118.11 	client's condition or response to treatment. Before delegating a portion of a client's evaluation 
118.12 	pursuant to section 148.6430 subdivision 1a, the occupational therapist shall ensure the 
118.13 	service competency of the occupational therapy assistant in performing the evaluation 
118.14 	procedure and shall provide supervision consistent with the condition of the patient or client 
118.15 	and the complexity of the evaluation procedure.

118.16 	Sec. 61. Minnesota Statutes 2024, section 148.6432, subdivision 3, is amended to read:
118.17 		Subd. 3.Intervention. (a) The occupational therapist must determine the frequency and 
118.18 	manner of supervision of an occupational therapy assistant performing intervention 
118.19 	procedures delegated pursuant to section 148.6430 subdivision 1a based on the condition 
118.20 	of the patient or client, the complexity of the intervention procedure, and the service 
118.21 	competency of the occupational therapy assistant.
118.22 	(b) Face-to-face collaboration between the occupational therapist and the occupational 
118.23 	therapy assistant must occur for all clients every ten intervention days or every 30 days, 
118.24 	whichever comes first, during which time the occupational therapist is responsible for:
118.25 	(1) planning and documenting an initial intervention plan and discharge from 
118.26 	interventions;
118.27 	(2) reviewing intervention goals, therapy programs, and client progress;
118.28 	(3) supervising changes in the intervention plan;
118.29 	(4) conducting or observing intervention procedures for selected clients and documenting 
118.30 	appropriateness of intervention procedures. Clients must be selected based on the 
119.1 	occupational therapy services provided to the client and the role of the occupational therapist 
119.2 	and the occupational therapy assistant in those services; and
119.3 	(5) ensuring the service competency of the occupational therapy assistant in performing 
119.4 	delegated intervention procedures.
119.5 	(c) Face-to-face collaboration must occur more frequently if necessary to meet the 
119.6 	requirements of paragraph (a) or (b).
119.7 	(d) The occupational therapist must document compliance with this subdivision in the 
119.8 	client's file or chart.

119.9 	Sec. 62. Minnesota Statutes 2024, section 148.6432, subdivision 4, is amended to read:
119.10 		Subd. 4.Exception. (a) The supervision requirements of this section do not apply to an 
119.11 	occupational therapy assistant who:
119.12 	(1) works in an activities program; and
119.13 	(2) does not perform occupational therapy services.
119.14 	(b) The occupational therapy assistant must meet all other applicable requirements of 
119.15 	sections 148.6401 to 148.6449 148.645.

119.16 	Sec. 63. Minnesota Statutes 2024, section 148.6435, is amended to read:
119.17 	148.6435 COORDINATION OF SERVICES.
119.18 	An occupational therapist must:
119.19 	(1) collect information necessary to ensure that the provision of occupational therapy 
119.20 	services are consistent with the client's physical and mental health status. The information 
119.21 	required to make this determination may include, but is not limited to, contacting the client's 
119.22 	licensed health care professional for health history, current health status, current medications, 
119.23 	and precautions;
119.24 	(2) modify or terminate occupational therapy intervention of a client that is not beneficial 
119.25 	to the client, not tolerated by the client, or refused by the client, and if intervention was 
119.26 	terminated for a medical reason, notify the client's licensed health care professional by 
119.27 	correspondence postmarked or delivered to the licensed health care professional within one 
119.28 	week of the termination of intervention;
119.29 	(3) (2) refer a client to an appropriate health care, social service, or education practitioner 
119.30 	if the client's condition requires services not within the occupational therapist's service 
120.1 	competency or not within the practice of occupational therapy generally, or if the client's 
120.2 	acuity warrants alternative care; and
120.3 	(4) (3) participate and cooperate in the coordination of occupational therapy services 
120.4 	with other related services, as a member of the professional community serving the client.

120.5 	Sec. 64. Minnesota Statutes 2024, section 148.6438, is amended to read:
120.6 	148.6438 RECIPIENT NOTIFICATION.
120.7 		Subdivision 1.Required notification. (a) In the absence of a physician, advanced 
120.8 	practice registered nurse, or physician assistantlicensed health care provider referral or 
120.9 	prior authorization, and before providing occupational therapy services for remuneration 
120.10 	or expectation of payment from the client, an occupational therapist must provide the 
120.11 	following written notification in all capital letters of 12-point or larger boldface type, to the 
120.12 	client, parent, or guardian in a format meeting national accessibility standards and the needs 
120.13 	of the client, parent, or guardian:
120.14 	"Your health care provider, insurer, or plan may require a physician, advanced practice 
120.15 	registered nurse, or physician assistant licensed health care provider referral or prior 
120.16 	authorization and you may be obligated for partial or full payment for occupational therapy 
120.17 	services rendered."
120.18 	(b) Information other than this notification may be included as long as the notification 
120.19 	remains conspicuous on the face of the document. A nonwritten disclosure format may be 
120.20 	used to satisfy the recipient notification requirement when necessary to accommodate the 
120.21 	physical condition of a client or client's guardian.
120.22 		Subd. 2.Evidence of recipient notification. The occupational therapist is responsible 
120.23 	for providing evidence of compliance with the recipient notification requirement of this 
120.24 	section with documentation of the client, parent, or guardian agreement.

120.25 	Sec. 65. Minnesota Statutes 2024, section 148.6443, subdivision 3, is amended to read:
120.26 		Subd. 3.Activities qualifying for continuing education contact hours. (a) The activities 
120.27 	in this subdivision qualify for continuing education contact hours if they meet all other 
120.28 	requirements of this section.
120.29 	(b) A minimum of one-half of the required contact hours must be directly related to 
120.30 	occupational therapy practice. The remaining contact hours may be related to occupational 
120.31 	therapy practice, the delivery of occupational therapy services, or to the practitioner's current 
120.32 	professional role.
121.1 	(c) A licensee may obtain an unlimited number of contact hours in any two-year 
121.2 	continuing education period through participation in the following:
121.3 	(1) attendance at educational programs of annual conferences, lectures, panel discussions, 
121.4 	workshops, in-service training, seminars, and symposiums;
121.5 	(2) successful completion of college or university courses. The licensee must obtain a 
121.6 	grade of at least a "C" or a pass in a pass/fail course in order to receive credit. One college 
121.7 	credit equals six continuing education contact hours; or
121.8 	(3) successful completion of home study courses that require the participant to 
121.9 	demonstrate the participant's knowledge following completion of the course provide 
121.10 	documentation that the course was completed and that meet the requirements in subdivision 
121.11 	2.
121.12 	(d) A licensee may obtain a maximum of one-half of the required contact hours in any 
121.13 	two-year continuing education period for:
121.14 	(1) teaching continuing education or occupational therapy related courses that meet the 
121.15 	requirements of this section. A licensee is entitled to earn a maximum of two contact hours 
121.16 	as preparation time for each contact hour of presentation time. Contact hours may be claimed 
121.17 	only once for teaching the same course in any two-year continuing education period. A 
121.18 	course schedule or brochure must be maintained for audit;
121.19 	(2) supervising occupational therapist or occupational therapy assistant students. A 
121.20 	licensee may earn one contact hour for every eight hours of student supervision. Licensees 
121.21 	must ensure they receive documentation regarding each student supervised and the dates 
121.22 	and hours each student was supervised. Contact hours obtained by student supervision must 
121.23 	be obtained by supervising students from an occupational therapy education program 
121.24 	accredited by the Accreditation Council for Occupational Therapy Education; and
121.25 	(3) teaching or participating in courses related to leisure activities, recreational activities, 
121.26 	or hobbies if the practitioner uses these interventions within the practitioner's current practice 
121.27 	or employment; and
121.28 	(4)(3) engaging in research activities or outcome studies that are related to the practice 
121.29 	of occupational therapy and associated with grants, postgraduate studies, or publications in 
121.30 	professional journals or books.
121.31 	(e) A licensee may obtain a maximum of two contact hours in any two-year continuing 
121.32 	education period for continuing education activities in the following areas:
122.1 	(1) personal skill topics: career burnout, communication skills, human relations, and 
122.2 	similar topics;
122.3 	(2) training that is obtained in conjunction with a licensee's employment, occurs during 
122.4 	a licensee's normal workday, and does not include subject matter specific to the fundamentals 
122.5 	of occupational therapy basic life support and CPR training; and
122.6 	(3) participation for a minimum of one year on a professional committee or board.

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

122.14 	Sec. 67. Minnesota Statutes 2024, section 148.6443, subdivision 5, is amended to read:
122.15 		Subd. 5.Reporting continuing education contact hours. Each licensee must use the 
122.16 	continuing education reporting form to verify meeting the continuing education requirements 
122.17 	of this section. The licensee must maintain documentation, including but not limited to a 
122.18 	signed certificate, transcript, or similar evidence of participation in an activity. The 
122.19 	documentation must include a:
122.20 	(1) the title of the continuing education activity;
122.21 	(2) a brief description of the continuing education activity prepared by the presenter or 
122.22 	sponsor;
122.23 	(3) the name of the sponsor, presenter, or author;
122.24 	(4) the location and attendance dates;
122.25 	(5) the number of contact hours; and
122.26 	(6) the licensee's name.

122.27 	Sec. 68. Minnesota Statutes 2024, section 148.6443, subdivision 6, is amended to read:
122.28 		Subd. 6.Auditing continuing education reports. (a) The board may audit a percentage 
122.29 	of the continuing education reports based on random selection. A licensee shall maintain 
123.1 	all documentation required by this section for two years after the last day of the biennial 
123.2 	licensure period in which the contact hours were earned.
123.3 	(b) All renewal applications that are received after the expiration date may be subject 
123.4 	to a continuing education report audit.
123.5 	(c) Any licensee against whom a complaint is filed may be subject to a continuing 
123.6 	education report audit.
123.7 	(d) The licensee shall make the following information available to the board for auditing 
123.8 	purposes:
123.9 	(1) a copy of the completed continuing education reporting form for the continuing 
123.10 	education reporting period that is the subject of the audit including all supporting 
123.11 	documentation required by subdivision 5;
123.12 	(2) documentation of university, college, or vocational school courses by a transcript 
123.13 	and a course syllabus, listing in a course bulletin, or equivalent documentation that includes 
123.14 	the course title, instructor's name, course dates, number of contact hours, and course content, 
123.15 	objectives, or goals; and
123.16 	(3) verification of attendance by that meets the requirements of subdivision 5 by 
123.17 	submitting:
123.18 	(i) a signature ofcertificate of attendance, or if a certificate is not available, other 
123.19 	documentation from the presenter or a designee at the continuing education activity on the 
123.20 	continuing education report form or a certificate of attendance with the course name, course 
123.21 	date, and licensee's name submitted directly to the board confirming the requirements; or
123.22 	(ii) a summary or outline of the educational content of an audio or video educational 
123.23 	activity to verify the licensee's participation in the activity if a designee is not available to 
123.24 	sign the continuing education report form; or
123.25 	(iii) (ii) verification of self-study programs by a certificate of completion or other 
123.26 	documentation indicating that the individual has demonstrated knowledge and has 
123.27 	successfully completed the program.

123.28 	Sec. 69. Minnesota Statutes 2024, section 148.6443, subdivision 7, is amended to read:
123.29 		Subd. 7.Waiver Deferral of continuing education requirements. The board may 
123.30 	waive or defer all or part of the continuing education requirements of this section if the 
123.31 	licensee submits a written request and provides satisfactory evidence to the board of illness, 
123.32 	injury, financial hardship, family hardship, or other similar extenuating circumstances that 
124.1 	preclude completion of the requirements during the licensure period. The request for a 
124.2 	waiver deferral must be in writing, state the circumstances that constitute hardship, state 
124.3 	the period of time the licensee wishes to have the continuing education requirement waived
124.4 	deferred, and state the alternative measures that will be taken if a waiver deferral is granted. 
124.5 	The board must set forth, in writing, the reasons for granting or denying the waiver deferral. 
124.6 	Waivers Deferrals granted by the board must specify, in writing, the time limitation and 
124.7 	required alternative measures to be taken by the licensee. A request for waiver deferral must 
124.8 	be denied if the board finds that the circumstances stated by the licensee do not support a 
124.9 	claim of hardship, the requested time period for waiver deferral is unreasonable, the 
124.10 	alternative measures proposed by the licensee are not equivalent to the continuing education 
124.11 	activity being waived deferred, or the request for waiver deferral is not submitted to the 
124.12 	board within 60 calendar days of the expiration date.

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

124.22 	Sec. 71. Minnesota Statutes 2024, section 148.6445, is amended by adding a subdivision 
124.23 	to read:
124.24 		Subd. 5a.Compact privilege fee.  The fee for interstate licensure compact privilege to 
124.25 	practice is $150.

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

125.1 	Sec. 73. Minnesota Statutes 2024, section 148.6448, subdivision 1, is amended to read:
125.2 		Subdivision 1.Grounds for denial of licensure or discipline. The board may deny an 
125.3 	application for licensure, may approve licensure with conditions, or may discipline a licensee 
125.4 	using any disciplinary actions listed in subdivision 3 on proof that the individual has:
125.5 	(1) intentionally submitted false or misleading information to the board;
125.6 	(2) obtained a license by means of fraud, misrepresentation, or concealment of material 
125.7 	facts;
125.8 	(3) failed, within 30 days, to provide information in response to a written request by the 
125.9 	board;
125.10 	(3) (4) performed services of an occupational therapist or occupational therapy assistant
125.11 	practitioner in an incompetent manner or in a manner that falls below the community standard 
125.12 	of care or national practice standards of care;
125.13 	(4) (5) failed to satisfactorily perform occupational therapy services during a period of 
125.14 	temporary licensure;
125.15 	(5) (6) violated sections 148.6401 to 148.6449 148.645;
125.16 	(6) (7) failed to perform services with reasonable judgment, skill, or safety due to the 
125.17 	use of alcohol or drugs, or other physical or mental impairment;
125.18 	(7) (8) been convicted of violating any state or federal law, rule, or regulation which 
125.19 	directly that reasonably relates to the practice of occupational therapy;
125.20 	(9) failed to report other licensees that have violated sections 148.6401 to 148.645;
125.21 	(8) (10) aided or abetted another person in violating any provision of sections 148.6401
125.22 	to 148.6449 148.645;
125.23 	(9) (11) been disciplined for conduct in the practice of an occupation by the state of 
125.24 	Minnesota, another jurisdiction, or a national professional association, if any of the grounds 
125.25 	for discipline are the same or substantially equivalent to those in sections 148.6401 to 
125.26 	148.6449 148.645;
125.27 	(10) (12) not cooperated with the board in an investigation conducted according to 
125.28 	subdivision 2;
125.29 	(11) (13) advertised in a manner that is false or misleading;
125.30 	(12) (14) engaged in dishonest, unethical, or unprofessional conduct in connection with 
125.31 	the practice of occupational therapy that is likely to deceive, defraud, or harm the public;
126.1 	(15) improperly managed client records, including but not limited to failure to maintain 
126.2 	client records in a manner that meets community standards of care or nationally accepted 
126.3 	practice standards;
126.4 	(13)(16) demonstrated a willful or careless disregard for the health, welfare, or safety 
126.5 	of a client;
126.6 	(17) inappropriately supervised or delegated or assigned tasks to an occupational therapy 
126.7 	assistant, occupational therapy student, rehabilitation aide, or other licensed professional;
126.8 	(14) (18) performed medical diagnosis or provided intervention, other than occupational 
126.9 	therapy, without being licensed to do so under the laws of this state;
126.10 	(15) (19) paid or promised to pay a commission or part of a fee to any person who 
126.11 	contacts the occupational therapist therapy practitioner for consultation or sends patients to 
126.12 	the occupational therapist therapy practitioner for intervention;
126.13 	(16) (20) engaged in an incentive payment arrangement, other than that prohibited by 
126.14 	clause (15) (19), that promotes occupational therapy overutilization, whereby the referring 
126.15 	person or person who controls the availability of occupational therapy services to a client 
126.16 	profits unreasonably as a result of client intervention;
126.17 	(17) (21) engaged in abusive or fraudulent billing practices, including violations of 
126.18 	federal Medicare and Medicaid laws, Food and Drug Administration regulations, or state 
126.19 	medical assistance laws;
126.20 	(18) (22) obtained money, property, or services from a consumer through the use of 
126.21 	undue influence, high pressure sales tactics, harassment, duress, deception, or fraud;
126.22 	(19) (23) performed services for a client who had no possibility of benefiting from the 
126.23 	services;
126.24 	(20) (24) failed to refer a client for medical evaluation when appropriate or when a client 
126.25 	indicated symptoms associated with diseases that could be medically or surgically treated;
126.26 	(21) (25) engaged in conduct with a client that is sexual or may reasonably be interpreted 
126.27 	by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning to 
126.28 	a patient;
126.29 	(22) (26) violated a federal or state court order, including a conciliation court judgment, 
126.30 	or a disciplinary order issued by the board, related to the person's occupational therapy 
126.31 	practice; or
126.32 	(23)(27) any other just cause related to the practice of occupational therapy.

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

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

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

127.19 	Sec. 77. Minnesota Statutes 2024, section 148.6449, subdivision 1, is amended to read:
127.20 		Subdivision 1.Creation. The Board of Occupational Therapy Practice consists of 11 
127.21 	members appointed by the governor. The members are:
127.22 	(1) five occupational therapists licensed under sections 148.6401 to 148.6449 148.645;
127.23 	(2) three occupational therapy assistants licensed under sections 148.6401 to 148.6449
127.24 	148.645; and
127.25 	(3) three public members, including two members who have received occupational 
127.26 	therapy services or have a family member who has received occupational therapy services, 
127.27 	and one member who is a health care professional or health care provider licensed in 
127.28 	Minnesota.

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

128.8 	Sec. 79. Minnesota Statutes 2024, section 148.6449, subdivision 7, is amended to read:
128.9 		Subd. 7.Duties of the Board of Occupational Therapy Practice. (a) The board shall:
128.10 	(1) adopt and enforce rules and laws necessary for licensing occupational therapy 
128.11 	practitioners;
128.12 	(2) adopt and enforce rules for regulating the professional conduct of the practice of 
128.13 	occupational therapy;
128.14 	(3) issue licenses to qualified individuals in accordance with sections 148.6401 to 
128.15 	148.6449 148.645;
128.16 	(4) assess and collect fees for the issuance and renewal of licenses;
128.17 	(5) educate the public about the requirements for licensing occupational therapy 
128.18 	practitioners, educate occupational therapy practitioners about the rules of conduct, and 
128.19 	enable the public to file complaints against applicants and licensees who may have violated 
128.20 	sections 148.6401 to 148.6449 148.645; and
128.21 	(6) investigate individuals engaging in practices that violate sections 148.6401 to 
128.22 	148.6449 148.645 and take necessary disciplinary, corrective, or other action according to 
128.23 	section 148.6448.
128.24 	(b) The board may adopt rules necessary to define standards or carry out the provisions 
128.25 	of sections 148.6401 to 148.6449 148.645. Rules shall be adopted according to chapter 14.

128.26 	Sec. 80. Minnesota Statutes 2024, section 148B.53, subdivision 3, is amended to read:
128.27 		Subd. 3.Fee Fees. Nonrefundable fees are as follows:
128.28 	(1) initial license application fee for licensed professional counseling (LPC) - $150;
128.29 	(2) initial license fee for LPC - $250;
129.1 	(3) annual active license renewal fee for LPC - $250 or equivalent;
129.2 	(4) annual inactive license renewal fee for LPC - $125;
129.3 	(5) initial license application fee for licensed professional clinical counseling (LPCC) - 
129.4 	$150;
129.5 	(6) initial license fee for LPCC - $250;
129.6 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
129.7 	(8) annual inactive license renewal fee for LPCC - $125;
129.8 	(9) license renewal late fee - $100 per month or portion thereof;
129.9 	(10) copy of board order or stipulation - $10;
129.10 	(11) certificate of good standing or license verification - $25;
129.11 	(12) duplicate certificate fee - $25;
129.12 	(13) professional firm renewal fee - $25;
129.13 	(14) sponsor application for approval of a continuing education course - $60;
129.14 	(15) initial registration fee - $50;
129.15 	(16) annual registration renewal fee - $25;
129.16 	(17) approved supervisor application processing fee - $30; and
129.17 	(18) temporary license for members of the military - $250; and
129.18 	(19) interstate compact privilege to practice fee - not to exceed $100.

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

129.20 	Sec. 81. Minnesota Statutes 2024, section 148E.180, subdivision 1, is amended to read:
129.21 		Subdivision 1.Application fees. (a) Nonrefundable application fees for licensure may 
129.22 	not exceed the following amounts but may be adjusted lower by board action:
129.23 	(1) for a licensed social worker, $75;
129.24 	(2) for a licensed graduate social worker, $75;
129.25 	(3) for a licensed independent social worker, $75;
129.26 	(4) for a licensed independent clinical social worker, $75;
129.27 	(5) for a temporary license, $50; and
130.1 	(6) for a license by endorsement, $115; and
130.2 	(7) for a compact multistate license, $75.
130.3 	(b) The fee for criminal background checks is the fee charged by the Bureau of Criminal 
130.4 	Apprehension. The criminal background check fee must be included with the application 
130.5 	fee as required according to section 148E.055.

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

130.7 	Sec. 82. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
130.8 	to read:
130.9 		Subd. 2a.Compact multistate license fees. Nonrefundable compact multistate license 
130.10 	fees must not exceed the following amounts but may be adjusted lower by board action:
130.11 	(1) for a licensed social worker, $115;
130.12 	(2) for a licensed graduate social worker, $210;
130.13 	(3) for a licensed independent social worker, $305; and
130.14 	(4) for a licensed independent clinical social worker, $335.

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

130.16 	Sec. 83. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
130.17 	to read:
130.18 		Subd. 3a.Compact multistate renewal fees. Nonrefundable renewal fees for compact 
130.19 	multistate licensure must not exceed the following amounts but may be adjusted lower by 
130.20 	board action:
130.21 	(1) for a licensed social worker, $115;
130.22 	(2) for a licensed graduate social worker, $210;
130.23 	(3) for a licensed independent social worker, $305; and
130.24 	(4) for a licensed independent clinical social worker, $335.

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

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

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

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

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

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

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

131.22 	Sec. 88. [148G.03] DEFINITIONS.
131.23 		Subdivision 1.Scope. For purposes of this chapter, the definitions in this section have 
131.24 	the meanings given.
131.25 		Subd. 2.Board. "Board" means the Minnesota Board of Nursing.
131.26 		Subd. 3.Certification. "Certification" means the formal recognition by the American 
131.27 	Midwifery Certification Board of the knowledge, skills, and experience demonstrated by 
131.28 	the achievement of standards identified by the American College of Nurse Midwives or any 
131.29 	successor organization.
132.1 		Subd. 4.Certified midwife. "Certified midwife" means an individual who holds a current 
132.2 	and valid national certification as a certified midwife from the American Midwifery 
132.3 	Certification Board or any successor organization and who is licensed by the board under 
132.4 	this chapter.
132.5 		Subd. 5.Certified midwifery practice. "Certified midwifery practice" means:
132.6 	(1) managing, diagnosing, and treating women's primary health care beginning in 
132.7 	adolescence, including pregnancy, childbirth, the postpartum period, care of the newborn, 
132.8 	family planning, partner care management relating to sexual health, and gynecological care 
132.9 	of women;
132.10 	(2) ordering, performing, supervising, and interpreting diagnostic studies within the 
132.11 	scope of certified midwifery practice, excluding:
132.12 	(i) interpreting and performing specialized ultrasound examinations; and
132.13 	(ii) interpreting computed tomography scans, magnetic resonance imaging scans, positron 
132.14 	emission tomography scans, nuclear scans, and mammography;
132.15 	(3) prescribing pharmacologic and nonpharmacologic therapies appropriate to midwifery 
132.16 	practice;
132.17 	(4) consulting with, collaborating with, or referring to other health care providers as 
132.18 	warranted by the needs of the patient; and
132.19 	(5) performing the role of educator in the theory and practice of midwifery.
132.20 		Subd. 6.Collaborating. "Collaborating" means the process in which two or more health 
132.21 	care professionals work together to meet the health care needs of a patient, as warranted by 
132.22 	the needs of the patient.
132.23 		Subd. 7.Consulting. "Consulting" means the process in which a certified midwife who 
132.24 	maintains primary management responsibility for a patient's care seeks advice or opinion 
132.25 	of a physician, an advanced practice registered nurse, or another member of the health care 
132.26 	team.
132.27 		Subd. 8.Encumbered. "Encumbered" means:
132.28 	(1) a license or other credential that is revoked, is suspended, or contains limitations on 
132.29 	the full and unrestricted practice of certified midwifery when the revocation, suspension, 
132.30 	or limitation is imposed by a state licensing board or other state regulatory entity; or
132.31 	(2) a license or other credential that is voluntarily surrendered.
133.1 		Subd. 9.Licensure period. "Licensure period" means the interval of time during which 
133.2 	the certified midwife is authorized to engage in certified midwifery. The initial licensure 
133.3 	period is from six to 29 full calendar months starting on the day of licensure and ending on 
133.4 	the last day of the certified midwife's month of birth in an even-numbered year if the year 
133.5 	of birth is an even-numbered year, or in an odd-numbered year if the year of birth is an 
133.6 	odd-numbered year. Subsequent licensure renewal periods are 24 months. For licensure 
133.7 	renewal, the period starts on the first day of the month following expiration of the previous 
133.8 	licensure period. The period ends the last day of the certified midwife's month of birth in 
133.9 	an even- or odd-numbered year according to the certified midwife's year of birth.
133.10 		Subd. 10.Licensed practitioner. "Licensed practitioner" means a physician licensed 
133.11 	under chapter 147, an advanced practice registered nurse licensed under sections 148.171 
133.12 	to 148.235, or a certified midwife licensed under this chapter.
133.13 		Subd. 11.Midwifery education program. "Midwifery education program" means a 
133.14 	program of theory and practice offered by a university or college that leads to the preparation 
133.15 	and eligibility for certification in midwifery and is accredited by the Accreditation 
133.16 	Commission for Midwifery Education or any successor organization recognized by the 
133.17 	United States Department of Education or the Council for Higher Education Accreditation.
133.18 		Subd. 12.Patient. "Patient" means a recipient of care provided by a certified midwife 
133.19 	within the scope of certified midwifery practice, including an individual, family, group, or 
133.20 	community.
133.21 		Subd. 13.Prescribing. "Prescribing" means the act of generating a prescription for the 
133.22 	preparation of, use of, or manner of using a drug or therapeutic device under section 148G.09. 
133.23 	Prescribing does not include recommending the use of a drug or therapeutic device that is 
133.24 	not required by the federal Food and Drug Administration to meet the labeling requirements 
133.25 	for prescription drugs and devices.
133.26 		Subd. 14.Prescription. "Prescription" means a written direction or an oral direction 
133.27 	reduced to writing provided to or for a patient for the preparation or use of a drug or 
133.28 	therapeutic device. The requirements of section 151.01, subdivisions 16, 16a, and 16b, apply 
133.29 	to prescriptions for drugs.
133.30 		Subd. 15.Referral. "Referral" means the process in which a certified midwife directs 
133.31 	a patient to a physician or another health care professional for management of a particular 
133.32 	problem or aspect of the patient's care.
134.1 		Subd. 16.Supervision. "Supervision" means monitoring and establishing the initial 
134.2 	direction of, setting expectations for, directing activities in, evaluating, and changing a 
134.3 	course of action in certified midwifery care.

134.4 	Sec. 89. [148G.04] CERTIFIED MIDWIFE LICENSING.
134.5 		Subdivision 1.Licensure. (a) No person shall practice as a certified midwife or serve 
134.6 	as the faculty of record for clinical instruction in a midwifery distance learning program 
134.7 	unless the person is licensed by the board under this chapter.
134.8 	(b) An applicant for a license to practice as a certified midwife must apply to the board 
134.9 	in a format prescribed by the board and pay a fee in an amount determined under section 
134.10 	148G.11.
134.11 	(c) To be eligible for licensure, an applicant must:
134.12 	(1) not hold an encumbered license or other credential as a certified midwife or equivalent 
134.13 	professional designation in any state or territory;
134.14 	(2) hold a current and valid certification as a certified midwife from the American 
134.15 	Midwifery Certification Board or any successor organization acceptable to the board and 
134.16 	provide primary source verification of certification to the board in a format prescribed by 
134.17 	the board;
134.18 	(3) have completed a graduate level midwifery education program that includes clinical 
134.19 	experience, is accredited by the Accreditation Commission for Midwifery Education or any 
134.20 	successor organization recognized by the United States Department of Education or the 
134.21 	Council for Higher Education Accreditation, and leads to a graduate degree. The applicant 
134.22 	must submit primary source verification of program completion to the board in a format 
134.23 	prescribed by the board. The primary source verification must verify the applicant completed 
134.24 	three separate graduate-level courses in physiology and pathophysiology; advanced health 
134.25 	assessment; and advanced pharmacology, including pharmacodynamics, pharmacokinetics, 
134.26 	and pharmacotherapeutics of all broad categories of agents;
134.27 	(4) report any criminal conviction, nolo contendere plea, Alford plea, or other plea 
134.28 	arrangement in lieu of conviction; and
134.29 	(5) not have committed any acts or omissions that are grounds for disciplinary action in 
134.30 	another jurisdiction or, if these acts were committed and would be grounds for disciplinary 
134.31 	action as set forth in section 148G.13, the board has found after an investigation that sufficient 
134.32 	remediation was made.
135.1 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
135.2 	applicant has practiced in the certified midwife role, the applicant must complete a 
135.3 	reorientation plan as a certified midwife. The plan must include supervision during the 
135.4 	clinical component by a licensed practitioner with experience in providing care to patients 
135.5 	with the same or similar health care needs. The applicant must submit the plan and the name 
135.6 	of the practitioner to the board. The plan must include a minimum of 500 hours of supervised 
135.7 	certified midwifery practice. The certified midwife must submit verification of completion 
135.8 	of the clinical reorientation to the board when the reorientation is complete.

135.9 	Sec. 90. [148G.05] LICENSURE RENEWAL; RELICENSURE.
135.10 		Subdivision 1.Renewal; current applicants. (a) A certified midwife must apply for 
135.11 	renewal of the certified midwife's license before the certified midwife's licensure period 
135.12 	ends. To be considered timely, the board must receive the certified midwife's application 
135.13 	on or before the last day of the certified midwife's licensure period. A certified midwife's 
135.14 	license lapses if the certified midwife's application is untimely.
135.15 	(b) An applicant for license renewal must provide the board evidence of current 
135.16 	certification or recertification as a certified midwife by the American Midwifery Certification 
135.17 	Board or any successor organization.
135.18 	(c) An applicant for license renewal must submit to the board the fee under section 
135.19 	148G.11, subdivision 2.
135.20 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
135.21 	applicant has practiced as a certified midwife, the applicant must complete a reorientation 
135.22 	plan as a certified midwife. The plan must include supervision during the clinical component 
135.23 	by a licensed practitioner with experience in providing care to patients with the same or 
135.24 	similar health care needs. The licensee must submit the plan and the name of the practitioner 
135.25 	to the board. The plan must include a minimum of 500 hours of supervised certified 
135.26 	midwifery practice. The certified midwife must submit verification of completion of the 
135.27 	clinical reorientation to the board when the reorientation is complete.
135.28 		Subd. 3.Relicensure; lapsed applicants. A person whose license has lapsed who desires 
135.29 	to resume practice as a certified midwife must apply for relicensure, submit to the board 
135.30 	satisfactory evidence of compliance with the procedures and requirements established by 
135.31 	the board, and pay the board the relicensure fee under section 148G.11, subdivision 4, for 
135.32 	the current licensure period. A penalty fee under section 148G.11, subdivision 4, is required 
135.33 	from a person who practiced certified midwifery without current licensure. The board must 
135.34 	relicense a person who meets the requirements of this subdivision.

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

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

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

136.20 	Sec. 94. [148G.09] PRESCRIBING DRUGS AND THERAPEUTIC DEVICES.
136.21 		Subdivision 1.Diagnosing, prescribing, and ordering. Certified midwives, within the 
136.22 	scope of certified midwifery practice, are authorized to:
136.23 	(1) diagnose, prescribe, and institute therapy or referrals of patients to health care agencies 
136.24 	and providers;
136.25 	(2) prescribe, procure, sign for, record, administer, and dispense over-the-counter, legend, 
136.26 	and controlled substances, including sample drugs; and
136.27 	(3) plan and initiate a therapeutic regimen that includes ordering and prescribing durable 
136.28 	medical devices and equipment, nutrition, diagnostic services, and supportive services, 
136.29 	including but not limited to home health care, physical therapy, and occupational therapy.
136.30 		Subd. 2.Drug Enforcement Administration requirements. (a) Certified midwives 
136.31 	must:
137.1 	(1) comply with federal Drug Enforcement Administration (DEA) requirements related 
137.2 	to controlled substances; and
137.3 	(2) file the certified midwife's DEA registrations and numbers, if any, with the board.
137.4 	(b) The board must maintain current records of all certified midwives with a DEA 
137.5 	registration and number.

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

137.9 	Sec. 96. [148G.11] FEE AMOUNTS.
137.10 		Subdivision 1.Licensure. The fee for licensure is $105.
137.11 		Subd. 2.Renewal. The fee for licensure renewal is $85.
137.12 		Subd. 3.Practicing without current certification. The penalty fee for a person who 
137.13 	practices certified midwifery without a current certification or recertification, or who practices 
137.14 	certified midwifery without current certification or recertification on file with the board, is 
137.15 	$200 for the first month or part of a month and an additional $100 for each subsequent 
137.16 	month or parts of months of practice. The penalty fee must be calculated from the first day 
137.17 	the certified midwife practiced without a current certification to the last day of practice 
137.18 	without a current certification, or from the first day the certified midwife practiced without 
137.19 	a current certification or recertification on file with the board until the day the current 
137.20 	certification or recertification is filed with the board.
137.21 		Subd. 4.Relicensure. The fee for relicensure is $105. The fee for practicing without 
137.22 	current licensure is two times the amount of the current renewal fee for any part of the first 
137.23 	calendar month, plus the current renewal fee for any part of each subsequent month up to 
137.24 	24 months.
137.25 		Subd. 5.Dishonored check fee. The service fee for a dishonored check is as provided 
137.26 	in section 604.113.

137.27 	Sec. 97. [148G.12] APPROVED MIDWIFERY EDUCATION PROGRAM.
137.28 		Subdivision 1.Initial approval. A university or college desiring to conduct a certified 
137.29 	midwifery education program must submit evidence to the board that the university or 
137.30 	college is prepared to:
138.1 	(1) provide a program of theory and practice in certified midwifery leading to eligibility 
138.2 	for certification in midwifery;
138.3 	(2) achieve preaccreditation and eventual full accreditation by the American Commission 
138.4 	for Midwifery Education or any successor organization recognized by the United States 
138.5 	Department of Education or the Council for Higher Education Accreditation. Instruction 
138.6 	and required experience may be obtained in one or more institutions or agencies outside 
138.7 	the applying university or college if the program retains accountability for all clinical and 
138.8 	nonclinical teaching; and
138.9 	(3) meet other standards established by law and by the board.
138.10 		Subd. 2.Continuing approval. The board must, through the board's representative, 
138.11 	annually survey all midwifery education programs in Minnesota for current accreditation 
138.12 	status by the American Commission for Midwifery Education or any successor organization 
138.13 	recognized by the United States Department of Education or the Council for Higher Education 
138.14 	Accreditation. If the results of the survey show that a certified midwifery education program 
138.15 	meets all standards for continuing accreditation, the board must continue approval of the 
138.16 	certified midwifery education program.
138.17 		Subd. 3.Loss of approval. If the board determines that an accredited certified midwifery 
138.18 	education program is not maintaining the standards required by the American Commission 
138.19 	on Midwifery Education or any successor organization, the board must obtain the defect in 
138.20 	writing from the accrediting body. If a program fails to correct the defect to the satisfaction 
138.21 	of the accrediting body and the accrediting body revokes the program's accreditation, the 
138.22 	board must remove the program from the list of approved certified midwifery education 
138.23 	programs.
138.24 		Subd. 4.Reinstatement of approval. The board must reinstate approval of a certified 
138.25 	midwifery education program upon submission of satisfactory evidence that the certified 
138.26 	midwifery education program of theory and practice meets the standards required by the 
138.27 	accrediting body.

138.28 	Sec. 98. [148G.13] GROUNDS FOR DISCIPLINARY ACTION.
138.29 		Subdivision 1.Grounds listed. The board may deny, revoke, suspend, limit, or condition 
138.30 	the license of any person to practice certified midwifery under this chapter or otherwise 
138.31 	discipline a licensee or applicant as described in section 148G.14. The following are grounds 
138.32 	for disciplinary action:
139.1 	(1) failure to demonstrate the qualifications or satisfy the requirements for a license 
139.2 	contained in this chapter or rules of the board. In the case of an applicant for licensure, the 
139.3 	burden of proof is upon the applicant to demonstrate the qualifications or satisfaction of the 
139.4 	requirements;
139.5 	(2) employing fraud or deceit in procuring or attempting to procure a license to practice 
139.6 	certified midwifery;
139.7 	(3) conviction of a felony or gross misdemeanor reasonably related to the practice of 
139.8 	certified midwifery. Conviction, as used in this subdivision, includes a conviction of an 
139.9 	offense that if committed in this state would be considered a felony or gross misdemeanor 
139.10 	without regard to its designation elsewhere, or a criminal proceeding where a finding or 
139.11 	verdict of guilt is made or returned, but the adjudication of guilt is either withheld or not 
139.12 	entered;
139.13 	(4) revocation, suspension, limitation, conditioning, or other disciplinary action against 
139.14 	the person's certified midwife credential in another state, territory, or country; failure to 
139.15 	report to the board that charges regarding the person's certified midwifery license, 
139.16 	certification, or other credential are pending in another state, territory, or country; or failure 
139.17 	to report to the board having been refused a license or other credential by another state, 
139.18 	territory, or country;
139.19 	(5) failure or inability to practice as a certified midwife with reasonable skill and safety, 
139.20 	or departure from or failure to conform to standards of acceptable and prevailing certified 
139.21 	midwifery practice, including failure of a certified midwife to adequately supervise or 
139.22 	monitor the performance of acts by any person working at the certified midwife's direction;
139.23 	(6) engaging in unprofessional conduct, including but not limited to a departure from 
139.24 	or failure to conform to statutes relating to certified midwifery practice or to the minimal 
139.25 	standards of acceptable and prevailing certified midwifery practice, or engaging in any 
139.26 	certified midwifery practice that may create unnecessary danger to a patient's life, health, 
139.27 	or safety. Actual injury to a patient need not be established under this clause;
139.28 	(7) supervision or accepting the supervision of a midwifery function or a prescribed 
139.29 	health care function when the acceptance could reasonably be expected to result in unsafe 
139.30 	or ineffective patient care;
139.31 	(8) actual or potential inability to practice certified midwifery with reasonable skill and 
139.32 	safety to patients by reason of illness; by the reason of use of alcohol, drugs, chemicals, or 
139.33 	any other material; or as a result of any mental or physical condition;
140.1 	(9) adjudication as mentally incompetent, mentally ill, a chemically dependent person, 
140.2 	or a person dangerous to the public by a court of competent jurisdiction, within or outside 
140.3 	of Minnesota;
140.4 	(10) engaging in any unethical conduct, including but not limited to conduct likely to 
140.5 	deceive, defraud, or harm the public, or demonstrating a willful or careless disregard for 
140.6 	the health, welfare, or safety of a patient. Actual injury need not be established under this 
140.7 	clause;
140.8 	(11) engaging in conduct with a patient that is sexual or may reasonably be interpreted 
140.9 	by the patient as sexual, in any verbal behavior that is seductive or sexually demeaning to 
140.10 	a patient, or in sexual exploitation of a patient or former patient;
140.11 	(12) obtaining money, property, or services from a patient, other than reasonable fees 
140.12 	for services provided to the patient, through the use of undue influence, harassment, duress, 
140.13 	deception, or fraud;
140.14 	(13) revealing a privileged communication from or relating to a patient except when 
140.15 	otherwise required or permitted by law;
140.16 	(14) engaging in abusive or fraudulent billing practices, including violations of federal 
140.17 	Medicare and Medicaid laws or state medical assistance laws;
140.18 	(15) improper management of patient records, including failure to maintain adequate 
140.19 	patient records, to comply with a patient's request made pursuant to sections 144.291 to 
140.20 	144.298, or to furnish a patient record or report required by law;
140.21 	(16) knowingly aiding, assisting, advising, or allowing an unlicensed person to engage 
140.22 	in the unlawful practice of certified midwifery;
140.23 	(17) violating a rule adopted by the board, an order of the board, a state or federal law 
140.24 	relating to the practice of certified midwifery, or a state or federal narcotics or controlled 
140.25 	substance law;
140.26 	(18) knowingly providing false or misleading information to a patient that is directly 
140.27 	related to the care of that patient unless done for an accepted therapeutic purpose such as 
140.28 	the administration of a placebo;
140.29 	(19) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
140.30 	established by any of the following:
140.31 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
140.32 	of section 609.215, subdivision 1 or 2;
141.1 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
141.2 	issued under section 609.215, subdivision 4;
141.3 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
141.4 	subdivision 5; or
141.5 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
141.6 	The board must investigate any complaint of a violation of section 609.215, subdivision 1 
141.7 	or 2;
141.8 	(20) practicing outside the scope of certified midwifery practice as defined under section 
141.9 	148G.03, subdivision 5;
141.10 	(21) making a false statement or knowingly providing false information to the board, 
141.11 	failing to make reports as required by section 148G.15, or failing to cooperate with an 
141.12 	investigation of the board as required by section 148G.17;
141.13 	(22) engaging in false, fraudulent, deceptive, or misleading advertising;
141.14 	(23) failure to inform the board of the person's certification or recertification status as 
141.15 	a certified midwife;
141.16 	(24) engaging in certified midwifery practice without a license and current certification 
141.17 	or recertification by the American Midwifery Certification Board or any successor 
141.18 	organization; or
141.19 	(25) failure to maintain appropriate professional boundaries with a patient. A certified 
141.20 	midwife must not engage in practices that create an unacceptable risk of patient harm or of 
141.21 	the impairment of a certified midwife's objectivity or professional judgment. A certified 
141.22 	midwife must not act or fail to act in a way that, as judged by a reasonable and prudent 
141.23 	certified midwife, inappropriately encourages the patient to relate to the certified midwife 
141.24 	outside of the boundaries of the professional relationship or in a way that interferes with 
141.25 	the patient's ability to benefit from certified midwife services. A certified midwife must not 
141.26 	use the professional relationship with a patient, student, supervisee, or intern to further the 
141.27 	certified midwife's personal, emotional, financial, sexual, religious, political, or business 
141.28 	benefit or interests.
141.29 		Subd. 2.Conviction of a felony-level criminal sexual offense. (a) Except as provided 
141.30 	in paragraph (e), the board must not grant or renew a license to practice certified midwifery 
141.31 	to any person who has been convicted on or after August 1, 2014, of any of the provisions 
141.32 	of section 609.342, subdivision 1 or 1a; 609.343, subdivision 1 or 1a; 609.344, subdivision 
142.1 	1 or 1a, paragraphs (c) to (g); or 609.345, subdivision 1 or 1a, paragraphs (c) to (g); or a 
142.2 	similar statute in another jurisdiction.
142.3 	(b) A license to practice certified midwifery is automatically revoked if the licensee is 
142.4 	convicted of an offense listed in paragraph (a).
142.5 	(c) A license to practice certified midwifery that has been denied or revoked under this 
142.6 	subdivision is not subject to chapter 364.
142.7 	(d) For purposes of this subdivision, "conviction" means a plea of guilty, a verdict of 
142.8 	guilty by a jury, or a finding of guilty by the court, unless the court stays imposition or 
142.9 	execution of the sentence and final disposition of the case is accomplished at a nonfelony 
142.10 	level.
142.11 	(e) The board may establish criteria whereby an individual convicted of an offense listed 
142.12 	in paragraph (a) may become licensed if the criteria:
142.13 	(1) utilize a rebuttable presumption that the applicant is not suitable for licensing;
142.14 	(2) provide a standard for overcoming the presumption; and
142.15 	(3) require that a minimum of ten years has elapsed since the applicant's sentence was 
142.16 	discharged.
142.17 	(f) The board must not consider an application under paragraph (e) if the board determines 
142.18 	that the victim involved in the offense was a patient or a client of the applicant at the time 
142.19 	of the offense.
142.20 		Subd. 3.Evidence. In disciplinary actions alleging a violation of subdivision 1, clause 
142.21 	(3) or (4), or 2, a copy of the judgment or proceeding under the seal of the court administrator 
142.22 	or of the administrative agency that entered the same is admissible into evidence without 
142.23 	further authentication and constitutes prima facie evidence of the violation concerned.
142.24 		Subd. 4.Examination; access to medical data. (a) If the board has probable cause to 
142.25 	believe that grounds for disciplinary action exist under subdivision 1, clause (8) or (9), it 
142.26 	may direct the applicant or certified midwife to submit to a mental or physical examination 
142.27 	or chemical dependency evaluation. For the purpose of this subdivision, when a certified 
142.28 	midwife licensed under this chapter is directed in writing by the board to submit to a mental 
142.29 	or physical examination or chemical dependency evaluation, that person is considered to 
142.30 	have consented and to have waived all objections to admissibility on the grounds of privilege. 
142.31 	Failure of the applicant or certified midwife to submit to an examination when directed 
142.32 	constitutes an admission of the allegations against the applicant or certified midwife, unless 
142.33 	the failure was due to circumstances beyond the person's control, and the board may enter 
143.1 	a default and final order without taking testimony or allowing evidence to be presented. A 
143.2 	certified midwife affected under this paragraph must, at reasonable intervals, be given an 
143.3 	opportunity to demonstrate that the competent practice of certified midwifery can be resumed 
143.4 	with reasonable skill and safety to patients. Neither the record of proceedings nor the orders 
143.5 	entered by the board in a proceeding under this paragraph may be used against a certified 
143.6 	midwife in any other proceeding.
143.7 	(b) Notwithstanding sections 13.384, 144.651, and 595.02, or any other law limiting 
143.8 	access to medical or other health data, the board may obtain medical data and health records 
143.9 	relating to a certified midwife or applicant for a license without that person's consent if the 
143.10 	board has probable cause to believe that grounds for disciplinary action exist under 
143.11 	subdivision 1, clause (8) or (9). The medical data may be requested from a provider, as 
143.12 	defined in section 144.291, subdivision 2; an insurance company; or a government agency, 
143.13 	including the Department of Human Services or Direct Care and Treatment. A provider, 
143.14 	insurance company, or government agency must comply with any written request of the 
143.15 	board under this subdivision and is not liable in any action for damages for releasing the 
143.16 	data requested by the board if the data are released pursuant to a written request under this 
143.17 	subdivision, unless the information is false and the provider giving the information knew 
143.18 	or had reason to believe the information was false. Information obtained under this 
143.19 	subdivision is classified as private data on individuals as defined in section 13.02.

143.20 	Sec. 99. [148G.14] FORMS OF DISCIPLINARY ACTION; AUTOMATIC 
143.21 	SUSPENSION; TEMPORARY SUSPENSION; REISSUANCE.
143.22 		Subdivision 1.Forms of disciplinary action. If the board finds that grounds for 
143.23 	disciplinary action exist under section 148G.13, it may take one or more of the following 
143.24 	actions:
143.25 	(1) deny the license application or application for license renewal;
143.26 	(2) revoke the license;
143.27 	(3) suspend the license;
143.28 	(4) impose limitations on the certified midwife's practice of certified midwifery, including 
143.29 	but not limited to limitation of scope of practice or the requirement of practice under 
143.30 	supervision;
143.31 	(5) impose conditions on the retention of the license, including but not limited to the 
143.32 	imposition of retraining or rehabilitation requirements or the conditioning of continued 
144.1 	practice on demonstration of knowledge or skills by appropriate examination, monitoring, 
144.2 	or other review;
144.3 	(6) impose a civil penalty not exceeding $10,000 for each separate violation. The amount 
144.4 	of the civil penalty must be fixed so as to deprive the certified midwife of any economic 
144.5 	advantage gained by reason of the violation charged; to reimburse the board for the cost of 
144.6 	counsel, investigation, and proceeding; and to discourage repeated violations;
144.7 	(7) order the certified midwife to provide unremunerated service;
144.8 	(8) censure or reprimand the certified midwife; or
144.9 	(9) any other action justified by the facts in the case.
144.10 		Subd. 2.Automatic suspension of license. (a) Unless the board orders otherwise, a 
144.11 	license to practice certified midwifery is automatically suspended if:
144.12 	(1) a guardian of a certified midwife is appointed by order of a court under sections 
144.13 	524.5-101 to 524.5-502;
144.14 	(2) the certified midwife is committed by order of a court under chapter 253B; or
144.15 	(3) the certified midwife is determined to be mentally incompetent, mentally ill, 
144.16 	chemically dependent, or a person dangerous to the public by a court of competent 
144.17 	jurisdiction within or outside of Minnesota.
144.18 	(b) The license remains suspended until the certified midwife is restored to capacity by 
144.19 	a court and, upon petition by the certified midwife, the suspension is terminated by the 
144.20 	board after a hearing or upon agreement between the board and the certified midwife.
144.21 		Subd. 3.Temporary suspension of license. In addition to any other remedy provided 
144.22 	by law, the board may, through its designated board member under section 214.10, 
144.23 	subdivision 2, temporarily suspend the license of a certified midwife without a hearing if 
144.24 	the board finds that there is probable cause to believe the certified midwife has violated a 
144.25 	statute or rule the board is empowered to enforce and continued practice by the certified 
144.26 	midwife would create a serious risk of harm to others. The suspension takes effect upon 
144.27 	written notice to the certified midwife, served by first-class mail, specifying the statute or 
144.28 	rule violated. The suspension must remain in effect until the board issues a temporary stay 
144.29 	of suspension or a final order in the matter after a hearing or upon agreement between the 
144.30 	board and the certified midwife. At the time it issues the suspension notice, the board must 
144.31 	schedule a disciplinary hearing to be held under the Administrative Procedure Act. The 
144.32 	board must provide the certified midwife at least 20 days' notice of any hearing held under 
145.1 	this subdivision. The board must schedule the hearing to begin no later than 30 days after 
145.2 	the issuance of the suspension order.
145.3 		Subd. 4.Reissuance. The board may reinstate and reissue a license to practice certified 
145.4 	midwifery, but as a condition may impose any disciplinary or corrective measure that it 
145.5 	might originally have imposed. Any person whose license has been revoked, suspended, or 
145.6 	limited may have the license reinstated and a new license issued when, at the discretion of 
145.7 	the board, the action is warranted, provided that the board must require the person to pay 
145.8 	the costs of the proceedings resulting in the revocation, suspension, or limitation of the 
145.9 	license; the relicensure fee; and the fee for the current licensure period. The cost of 
145.10 	proceedings includes but is not limited to the cost paid by the board to the Office of 
145.11 	Administrative Hearings and the Office of the Attorney General for legal and investigative 
145.12 	services; the costs of a court reporter and witnesses, reproduction of records, board staff 
145.13 	time, travel, and expenses; and the costs of board members' per diem reimbursements, travel 
145.14 	costs, and expenses.

145.15 	Sec. 100. [148G.15] REPORTING OBLIGATIONS.
145.16 		Subdivision 1.Permission to report. A person who has knowledge of any conduct 
145.17 	constituting grounds for discipline under section 148G.13 may report the alleged violation 
145.18 	to the board.
145.19 		Subd. 2.Institutions. The chief nursing executive or chief administrative officer of any 
145.20 	hospital, clinic, prepaid medical plan, or other health care institution or organization located 
145.21 	in Minnesota must report to the board any action taken by the institution or organization or 
145.22 	any of its administrators or committees to revoke, suspend, limit, or condition a certified 
145.23 	midwife's privilege to practice in the institution or as part of the organization, any denial of 
145.24 	privileges, any dismissal from employment, or any other disciplinary action. The institution 
145.25 	or organization must also report the resignation of any certified midwife before the conclusion 
145.26 	of any disciplinary proceeding or before commencement of formal charges, but after the 
145.27 	certified midwife had knowledge that formal charges were contemplated or in preparation. 
145.28 	The reporting described by this subdivision is required only if the action pertains to grounds 
145.29 	for disciplinary action under section 148G.13.
145.30 		Subd. 3.Licensed professionals. A person licensed by a health-related licensing board 
145.31 	as defined in section 214.01, subdivision 2, must report to the board personal knowledge 
145.32 	of any conduct the person reasonably believes constitutes grounds for disciplinary action 
145.33 	under section 148G.13 by any certified midwife, including conduct indicating that the 
145.34 	certified midwife may be incompetent, may have engaged in unprofessional or unethical 
146.1 	conduct, or may be mentally or physically unable to engage safely in the practice of certified 
146.2 	midwifery.
146.3 		Subd. 4.Insurers. (a) By the first day of February, May, August, and November each 
146.4 	year, each insurer authorized to sell insurance described in section 60A.06, subdivision 1, 
146.5 	clause (13), and providing professional liability insurance to certified midwives must submit 
146.6 	to the board a report concerning any certified midwife against whom a malpractice award 
146.7 	has been made or who has been a party to a settlement. The report must contain at least the 
146.8 	following information:
146.9 	(1) the total number of settlements or awards;
146.10 	(2) the date a settlement or award was made;
146.11 	(3) the allegations contained in the claim or complaint leading to the settlement or award;
146.12 	(4) the dollar amount of each malpractice settlement or award and whether that amount 
146.13 	was paid as a result of a settlement or of an award; and
146.14 	(5) the name and address of the practice of the certified midwife against whom an award 
146.15 	was made or with whom a settlement was made.
146.16 	(b) An insurer must also report to the board any information it possesses that tends to 
146.17 	substantiate a charge that a certified midwife may have engaged in conduct in violation of 
146.18 	this chapter.
146.19 		Subd. 5.Courts. The court administrator of district court or another court of competent 
146.20 	jurisdiction must report to the board any judgment or other determination of the court that 
146.21 	adjudges or includes a finding that a certified midwife is a person who is mentally ill, 
146.22 	mentally incompetent, chemically dependent, dangerous to the public, guilty of a felony or 
146.23 	gross misdemeanor, guilty of a violation of federal or state narcotics laws or controlled 
146.24 	substances act, guilty of operating a motor vehicle while under the influence of alcohol or 
146.25 	a controlled substance, or guilty of an abuse or fraud under Medicare or Medicaid; or if the 
146.26 	court appoints a guardian of the certified midwife under sections 524.5-101 to 524.5-502 
146.27 	or commits a certified midwife under chapter 253B.
146.28 		Subd. 6.Deadlines; forms. Reports required by subdivisions 2, 3, and 5 must be 
146.29 	submitted no later than 30 days after the occurrence of the reportable event or transaction. 
146.30 	The board may provide forms for the submission of reports required under this section, may 
146.31 	require that the reports be submitted on the forms provided, and may adopt rules necessary 
146.32 	to ensure prompt and accurate reporting. The board must review all reports, including those 
146.33 	submitted after the deadline.
147.1 		Subd. 7.Failure to report. Any person, institution, insurer, or organization that fails to 
147.2 	report as required under subdivisions 2 to 6 is subject to civil penalties for failing to report 
147.3 	as required by law.

147.4 	Sec. 101. [148G.16] IMMUNITY.
147.5 		Subdivision 1.Reporting. Any person, health care facility, business, or organization is 
147.6 	immune from civil liability and criminal prosecution for submitting in good faith a report 
147.7 	to the board under section 148G.15 or for otherwise reporting in good faith to the board 
147.8 	violations or alleged violations of this chapter. All such reports are investigative data as 
147.9 	defined in chapter 13.
147.10 		Subd. 2.Investigation. (a) Members of the board, persons employed by the board or 
147.11 	engaged in the investigation of violations and in the preparation and management of charges 
147.12 	of violations of this chapter on behalf of the board, or persons participating in the 
147.13 	investigation or testifying regarding charges of violations are immune from civil liability 
147.14 	and criminal prosecution for any actions, transactions, or publications in the execution of, 
147.15 	or relating to, their duties under this chapter.
147.16 	(b) Members of the board and persons employed by the board or engaged in maintaining 
147.17 	records and making reports regarding adverse health care events are immune from civil 
147.18 	liability and criminal prosecution for any actions, transactions, or publications in the 
147.19 	execution of, or relating to, their duties under this chapter.

147.20 	Sec. 102. [148G.17] CERTIFIED MIDWIFE COOPERATION.
147.21 	A certified midwife who is the subject of an investigation by or on behalf of the board 
147.22 	must cooperate fully with the investigation. Cooperation includes responding fully and 
147.23 	promptly to any question raised by or on behalf of the board relating to the subject of the 
147.24 	investigation and providing copies of patient or other records in the certified midwife's 
147.25 	possession, as reasonably requested by the board, to assist the board in its investigation and 
147.26 	to appear at conferences and hearings scheduled by the board. The board must pay for copies 
147.27 	requested. If the board does not have written consent from a patient permitting access to 
147.28 	the patient's records, the certified midwife must delete any data in the record that identify 
147.29 	the patient before providing it to the board. The board must maintain any records obtained 
147.30 	pursuant to this section as investigative data under chapter 13. The certified midwife must 
147.31 	not be excused from giving testimony or producing any documents, books, records, or 
147.32 	correspondence on the grounds of self-incrimination, but the testimony or evidence must 
147.33 	not be used against the certified midwife in any criminal case.

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

148.5 	Sec. 104. [148G.19] EXEMPTIONS.
148.6 	The provisions of this chapter do not prohibit:
148.7 	(1) the furnishing of certified midwifery assistance in an emergency;
148.8 	(2) the practice of certified midwifery by any legally qualified certified midwife of 
148.9 	another state who is employed by the United States government or any bureau, division, or 
148.10 	agency thereof while in the discharge of official duties;
148.11 	(3) the practice of any profession or occupation licensed by Minnesota, other than 
148.12 	certified midwifery, by any person licensed to practice the profession or occupation, or the 
148.13 	performance by a person of any acts properly coming within the scope of the profession, 
148.14 	occupation, or license;
148.15 	(4) the practice of traditional midwifery as specified under section 147D.03;
148.16 	(5) certified midwifery practice by a student practicing under the supervision of an 
148.17 	instructor while the student is enrolled in an approved certified midwifery education program; 
148.18 	or
148.19 	(6) certified midwifery practice by a certified midwife licensed in another state, territory, 
148.20 	or jurisdiction who is in Minnesota temporarily:
148.21 	(i) providing continuing or in-service education;
148.22 	(ii) serving as a guest lecturer;
148.23 	(iii) presenting at a conference; or
148.24 	(iv) teaching didactic content via distance education to a student located in Minnesota 
148.25 	who is enrolled in a formal, structured course of study, such as a course leading to a higher 
148.26 	degree in midwifery.

148.27 	Sec. 105. [148G.20] VIOLATIONS; PENALTY.
148.28 		Subdivision 1.Violations described. It is unlawful for any person, corporation, firm, 
148.29 	or association to:
149.1 	(1) sell or fraudulently obtain or furnish any certified midwifery diploma, license, or 
149.2 	record, or aid or abet therein;
149.3 	(2) practice certified midwifery under cover of any diploma, permit, license, certified 
149.4 	midwife credential, or record illegally or fraudulently obtained or signed or issued unlawfully 
149.5 	or under fraudulent representation;
149.6 	(3) practice certified midwifery unless the person is licensed to do so under this chapter;
149.7 	(4) use the professional title certified midwife or licensed certified midwife unless 
149.8 	licensed to practice certified midwifery under this chapter;
149.9 	(5) use any abbreviation or other designation tending to imply licensure as a certified 
149.10 	midwife unless licensed to practice certified midwifery under this chapter;
149.11 	(6) practice certified midwifery in a manner prohibited by the board in any limitation 
149.12 	of a license issued under this chapter;
149.13 	(7) practice certified midwifery during the time a license issued under this chapter is 
149.14 	suspended or revoked;
149.15 	(8) knowingly employ persons in the practice of certified midwifery who have not been 
149.16 	issued a current license to practice as a certified midwife in this state; or
149.17 	(9) conduct a certified midwifery program for the education of persons to become certified 
149.18 	midwives unless the program has been approved by the board.
149.19 		Subd. 2.Penalty. Any person, corporation, firm, or association violating any provision 
149.20 	of subdivision 1 is guilty of a gross misdemeanor and must be punished according to law.
149.21 		Subd. 3.Penalty; certified midwives. In addition to subdivision 2, a person who practices 
149.22 	certified midwifery without a current license and certification or recertification, or without 
149.23 	current certification or recertification on file with the board, is subject to the applicable 
149.24 	penalties in section 148G.11.

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

150.1 	Sec. 107. Minnesota Statutes 2024, section 150A.105, is amended by adding a subdivision 
150.2 	to read:
150.3 		Subd. 3a.Collaborative management agreement under armed forces. (a) While 
150.4 	practicing under the auspices of the Minnesota National Guard or any branch of the armed 
150.5 	forces, including the Navy, Marines, Army, Coast Guard, or Space Force, the collaborating 
150.6 	dentist may be determined by the command structure of the armed service for which the 
150.7 	dental therapist is a member assigned or contracted.
150.8 	(b) A collaborating dentist for a dental therapist when in civilian practice will not be 
150.9 	responsible for supervising the dental services performed by the dental therapist while the 
150.10 	dental therapist is practicing under the auspices of the armed forces.

150.11 	Sec. 108. Minnesota Statutes 2024, section 151.01, subdivision 15, is amended to read:
150.12 		Subd. 15.Pharmacist intern or intern.  "Pharmacist intern" or "intern" means:
150.13 	(1) a natural person who has completed college or school of pharmacy orientation or is 
150.14 	otherwise enrolled in a doctor of pharmacy program accredited by the Accreditation Council 
150.15 	for Pharmacy Education (ACPE) and is satisfactorily progressing toward the degree in 
150.16 	pharmacy required for licensure, or;
150.17 	(2) a graduate of the University of Minnesota College of Pharmacy, or other pharmacy 
150.18 	college approved by the board, a doctor of pharmacy program accredited by ACPE who is 
150.19 	registered by the Board of Pharmacy for the purpose of obtaining practical experience as a 
150.20 	requirement for licensure as a pharmacist, or;
150.21 	(3) a qualified applicant awaiting examination for licensure.;
150.22 	(4) a participant in a residency or fellowship program who is not licensed to practice 
150.23 	pharmacy in Minnesota but is:
150.24 	(i) licensed to practice pharmacy in another state; or
150.25 	(ii) a graduate of a doctor of pharmacy program accredited by ACPE and not registered 
150.26 	by the board under clause (2); or
150.27 	(5) a foreign pharmacy graduate who:
150.28 	(i) has passed the Foreign Pharmacy Graduate Equivalency Examination;
150.29 	(ii) is certified by the Foreign Pharmacy Graduate Equivalency Commission; and
150.30 	(iii) is seeking internship experience in accordance with Minnesota Rules, part 6800.1250.

151.1 	Sec. 109. Minnesota Statutes 2024, section 151.01, subdivision 23, is amended to read:
151.2 		Subd. 23.Practitioner. "Practitioner" means a licensed doctor of medicine, licensed 
151.3 	doctor of osteopathic medicine duly licensed to practice medicine, licensed doctor of 
151.4 	dentistry, licensed doctor of optometry, licensed podiatrist, licensed veterinarian, licensed 
151.5 	advanced practice registered nurse, licensed certified midwife, or licensed physician assistant. 
151.6 	For purposes of sections 151.15, subdivision 4; 151.211, subdivision 3; 151.252, subdivision 
151.7 	3; 151.37, subdivision 2, paragraph (b); and 151.461, "practitioner" also means a dental 
151.8 	therapist authorized to dispense and administer under chapter 150A. For purposes of sections 
151.9 	151.252, subdivision 3, and 151.461, "practitioner" also means a pharmacist authorized to 
151.10 	prescribe self-administered hormonal contraceptives, nicotine replacement medications, or 
151.11 	opiate antagonists under section 151.37, subdivision 14, 15, or 16, or authorized to prescribe 
151.12 	drugs to prevent the acquisition of human immunodeficiency virus (HIV) under section 
151.13 	151.37, subdivision 17.

151.14 	Sec. 110. Minnesota Statutes 2024, section 151.065, subdivision 1, is amended to read:
151.15 		Subdivision 1.Application fees. Application fees for licensure and registration are as 
151.16 	follows:
151.17 	(1) pharmacist licensed by examination, $225;
151.18 	(2) pharmacist licensed by reciprocity, $300;
151.19 	(3) pharmacy intern, $75 $25;
151.20 	(4) pharmacy technician, $60;
151.21 	(5) pharmacy, $450;
151.22 	(6) drug wholesaler, legend drugs only, $5,500;
151.23 	(7) drug wholesaler, legend and nonlegend drugs, $5,500;
151.24 	(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
151.25 	(9) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
151.26 	additional facility;
151.27 	(10) third-party logistics provider, $300;
151.28 	(11) drug manufacturer, nonopiate legend drugs only, $5,500;
151.29 	(12) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
151.30 	(13) drug manufacturer, nonlegend or veterinary legend drugs, $5,500;
152.1 	(14) drug manufacturer, medical gases, $5,500 for the first facility and $500 for each 
152.2 	additional facility;
152.3 	(15) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
152.4 	(16) drug manufacturer of opiate-containing controlled substances listed in section 
152.5 	152.02, subdivisions 3 to 5, $55,500;
152.6 	(17) medical gas dispenser, $400;
152.7 	(18) controlled substance researcher, $150; and
152.8 	(19) pharmacy professional corporation, $150.

152.9 	Sec. 111. Minnesota Statutes 2024, section 151.065, subdivision 3, is amended to read:
152.10 		Subd. 3.Annual renewal fees. Annual licensure and registration renewal fees are as 
152.11 	follows:
152.12 	(1) pharmacist, $225;
152.13 	(2) pharmacy technician, $60;
152.14 	(3) beginning January 1, 2026, pharmacy intern, $25;
152.15 	(3) (4) pharmacy, $450;
152.16 	(4) (5) drug wholesaler, legend drugs only, $5,500;
152.17 	(5) (6) drug wholesaler, legend and nonlegend drugs, $5,500;
152.18 	(6) (7) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
152.19 	(7) (8) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
152.20 	additional facility;
152.21 	(8) (9) third-party logistics provider, $300;
152.22 	(9) (10) drug manufacturer, nonopiate legend drugs only, $5,500;
152.23 	(10) (11) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
152.24 	(11) (12) drug manufacturer, nonlegend, veterinary legend drugs, or both, $5,500;
152.25 	(12) (13) drug manufacturer, medical gases, $5,500 for the first facility and $500 for 
152.26 	each additional facility;
152.27 	(13) (14) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
153.1 	(14) (15) drug manufacturer of opiate-containing controlled substances listed in section 
153.2 	152.02, subdivisions 3 to 5, $55,500;
153.3 	(15) (16) medical gas dispenser, $400;
153.4 	(16) (17) controlled substance researcher, $150; and
153.5 	(17) (18) pharmacy professional corporation, $150.

153.6 	Sec. 112. Minnesota Statutes 2024, section 151.065, subdivision 6, is amended to read:
153.7 		Subd. 6.Reinstatement fees. (a) A pharmacist who has allowed the pharmacist's license 
153.8 	to lapse may reinstate the license with board approval and upon payment of any fees and 
153.9 	late fees in arrears, up to a maximum of $1,000.
153.10 	(b) A pharmacy technician who has allowed the technician's registration to lapse may 
153.11 	reinstate the registration with board approval and upon payment of any fees and late fees 
153.12 	in arrears, up to a maximum of $250.
153.13 	(c) A pharmacy intern who has allowed the intern's registration to lapse may reinstate 
153.14 	the registration with board approval and upon payment of any fees and late fees in arrears, 
153.15 	up to a maximum of $100.
153.16 	(c) (d) An owner of a pharmacy, a drug wholesaler, a drug manufacturer, third-party 
153.17 	logistics provider, or a medical gas dispenser who has allowed the license of the establishment 
153.18 	to lapse may reinstate the license with board approval and upon payment of any fees and 
153.19 	late fees in arrears.
153.20 	(d) (e) A controlled substance researcher who has allowed the researcher's registration 
153.21 	to lapse may reinstate the registration with board approval and upon payment of any fees 
153.22 	and late fees in arrears.
153.23 	(e) (f) A pharmacist owner of a professional corporation who has allowed the corporation's 
153.24 	registration to lapse may reinstate the registration with board approval and upon payment 
153.25 	of any fees and late fees in arrears.

153.26 	Sec. 113. Minnesota Statutes 2024, section 151.101, is amended to read:
153.27 	151.101 INTERNSHIP.
153.28 		Subdivision 1.Registration requirements. (a) Upon payment of the fee specified in 
153.29 	section 151.065, the board may register as an intern any natural persons who have satisfied 
153.30 	the board that they are of good moral character, not physically or mentally unfit, and who 
153.31 	have successfully completed the educational requirements for intern registration prescribed 
154.1 	by the board. The board shall prescribe standards and requirements for interns, 
154.2 	pharmacist-preceptors, and internship training but may not require more than one year of 
154.3 	such training.
154.4 	(b) The board in its discretion may accept internship experience obtained in another 
154.5 	state provided the internship requirements in such other state are in the opinion of the board 
154.6 	equivalent to those herein provided.
154.7 		Subd. 2.Renewal requirements. (a) Beginning January 1, 2026, an intern registration 
154.8 	expires on September 30 each year or when the intern receives a pharmacist license, 
154.9 	whichever is earlier.
154.10 	(b) To renew an intern registration, the intern must file an application for renewal and 
154.11 	submit the fee established under section 151.065 on or before September 1 each year.
154.12 	(c) If the board does not receive the intern's registration renewal application on or before 
154.13 	September 1 each year, the intern is subject to a late filing fee equal to 50 percent of the 
154.14 	renewal fee under section 151.065 in addition to the renewal fee.
154.15 	(d) An individual who received an intern registration under the criteria in section 151.01, 
154.16 	subdivision 15, clause (1), and paid $75 for the individual's application fee between May 
154.17 	1, 2024, and June 30, 2025, is not subject to the $25 renewal fee for the first two renewal 
154.18 	cycles following the $75 fee payment.
154.19 	(e) If an individual is no longer enrolled in a doctor of pharmacy program accredited by 
154.20 	the Accreditation Council for Pharmacy Education, the board must terminate that individual's 
154.21 	intern registration effective the last date the individual was enrolled in a qualifying program.
154.22 	(f) The board must not renew an intern registration unless the individual:
154.23 	(1) has maintained current notices of employment for internship training with the board;
154.24 	(2) submitted a progress report affidavit of the intern credit hours completed by June 15 
154.25 	each year;
154.26 	(3) meets all other eligibility criteria for a pharmacist intern; and
154.27 	(4) demonstrates to the board's satisfaction the individual is in good faith and with 
154.28 	reasonable diligence pursuing a degree in pharmacy or is completing a pharmacy residency 
154.29 	or fellowship.
154.30 	(g) An intern whose registration has lapsed may renew the intern registration within one 
154.31 	year of expiration, subject to the fees in paragraph (c). An intern whose registration has 
154.32 	lapsed for more than one year must meet the registration requirements for an initial intern 
155.1 	applicant in effect at the time the individual applies for reinstatement and pay any fees and 
155.2 	late fees in arrears in accordance with section 151.065.
155.3 	(h) If the board receives a late renewal, reinstatement, or initial intern application from 
155.4 	an eligible individual within 90 days before September 30, the board may extend the 
155.5 	registration expiration date for that applicant to September 30 of the subsequent calendar 
155.6 	year and prorate the application fee accordingly.
155.7 		Subd. 3.Internship credit hour requirements. (a) To apply for licensure as a pharmacist 
155.8 	under section 151.10, an individual must complete at least 1,600 intern credit hours under 
155.9 	the direction and supervision of a preceptor.
155.10 	(b) Of the 1,600 credit hours required under this subdivision, an intern may earn:
155.11 	(1) a maximum of 80 credit hours in the individual's first professional academic year 
155.12 	for a structured experience directed by the college of pharmacy that the individual attends 
155.13 	and is overseen by college faculty, registered preceptors, or supervising licensed pharmacists;
155.14 	(2) a maximum of 400 credit hours of concurrent time internship; and
155.15 	(3) a maximum of 54 credit hours per week that may be earned from more than one site.

155.16 	Sec. 114. Minnesota Statutes 2024, section 152.12, subdivision 1, is amended to read:
155.17 		Subdivision 1.Prescribing, dispensing, administering controlled substances in 
155.18 	Schedules II through V. A licensed doctor of medicine, a doctor of osteopathic medicine, 
155.19 	duly licensed to practice medicine, a doctor of dental surgery, a doctor of dental medicine, 
155.20 	a licensed doctor of podiatry, a licensed advanced practice registered nurse, a licensed 
155.21 	certified midwife, a licensed physician assistant, or a licensed doctor of optometry limited 
155.22 	to Schedules IV and V, and in the course of professional practice only, may prescribe, 
155.23 	administer, and dispense a controlled substance included in Schedules II through V of section 
155.24 	152.02, may cause the same to be administered by a nurse, an intern or an assistant under 
155.25 	the direction and supervision of the doctor, and may cause a person who is an appropriately 
155.26 	certified and licensed health care professional to prescribe and administer the same within 
155.27 	the expressed legal scope of the person's practice as defined in Minnesota Statutes.

155.28 	Sec. 115. [153.30] FEES.
155.29 		Subdivision 1.Nonrefundable fees. The fees in this section are nonrefundable.
155.30 		Subd. 2.Fee amounts. The amount of fees must be set by the board so that the total 
155.31 	fees collected by the board equals as closely as possible the anticipated expenditures during 
156.1 	the fiscal biennium, as provided in section 16A.1285. Fees must not exceed the following 
156.2 	amounts but may be adjusted lower by board action:
156.3 	(1) application for licensure fee, $1,000;
156.4 	(2) renewal licensure fee, $1,000;
156.5 	(3) late renewal fee, $250;
156.6 	(4) temporary permit fee, $250;
156.7 	(5) duplicate license fee or duplicate renewal certificate fee, $25;
156.8 	(6) reinstatement fee, $1,250;
156.9 	(7) examination administration fee for persons who have not applied for a license or 
156.10 	permit, $50;
156.11 	(8) verification of licensure fee, $50;
156.12 	(9) label fee, $50;
156.13 	(10) list of licensees fee, $50; and
156.14 	(11) copies fee, $0.50 per page.
156.15 		Subd. 3.Current fee information. Information about fees in effect at any time must 
156.16 	be available from the board office.
156.17 		Subd. 4.Deposit of fees. The license fees collected under this section must be deposited 
156.18 	in the state government special revenue fund.

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

156.20 	Sec. 116. Minnesota Statutes 2024, section 153B.85, subdivision 1, is amended to read:
156.21 		Subdivision 1.Fees. (a) The application fee for initial licensure shall not exceed $600.
156.22 	(b) The biennial renewal fee for a license to practice as an orthotist, prosthetist, prosthetist 
156.23 	orthotist, or pedorthist shall not exceed $600.
156.24 	(c) The biennial renewal fee for a license to practice as an assistant or a fitter shall not 
156.25 	exceed $300.
156.26 	(d) The fee for license restoration shall not exceed $600.
156.27 	(e) The fee for license verification shall not exceed $30 $50.
156.28 	(f) The fee to obtain a list of licensees shall not exceed $25 $50.

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

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

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

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

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

157.10 	Sec. 119. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
157.11 	to read:
157.12 		Subd. 3.Fee amounts. Fees must not exceed the following amounts but may be adjusted 
157.13 	lower by board action:
157.14 	(1) initial application fee, $75;
157.15 	(2) state examination fee, $75;
157.16 	(3) duplicate license fee, $25;
157.17 	(4) continuing education sponsor application fee, $75;
157.18 	(5) mailing list fee, $250;
157.19 	(6) initial veterinary license fee, $300;
157.20 	(7) initial veterinary technician fee, $100;
157.21 	(8) active veterinary renewal fee, $300;
157.22 	(9) active veterinary technician renewal fee, $100;
157.23 	(10) inactive veterinary renewal fee, $150;
157.24 	(11) inactive veterinary technician renewal fee, $50;
157.25 	(12) institutional license fee, $300;
157.26 	(13) active late veterinary renewal fee, $150;
157.27 	(14) active late veterinary technician renewal fee, $50;
158.1 	(15) inactive late veterinary renewal fee, $100;
158.2 	(16) inactive late veterinary technician renewal fee, $25; and
158.3 	(17) institutional late renewal fee, $150.

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

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

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

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

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

158.24 	Sec. 123. REVISOR INSTRUCTION.
 158.25 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 148.6408, 
158.26 	subdivision 1, as Minnesota Statutes, section 148.6408, subdivision 1b.
158.27 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 148.6410, 
158.28 	subdivision 1, as Minnesota Statutes, section 148.6410, subdivision 1b.

159.1 	Sec. 124. REPEALER.
 159.2 	(a) Minnesota Statutes 2024, sections 148.108, subdivisions 2, 3, and 4; 148.6402, 
159.3 	subdivision 22a; 148.6420, subdivisions 2, 3, and 4; 148.6423, subdivisions 4, 5, 7, 8, and 
159.4 	9; 148.6425, subdivision 3; 148.6430; 148.6445, subdivisions 5, 6, and 8; and 156.015, 
159.5 	subdivision 1, are repealed.
159.6 	(b) Minnesota Rules, parts 2500.1150; 2500.2030; 6800.5100, subpart 5; 6800.5400, 
159.7 	subparts 5 and 6; 9100.0400, subparts 1 and 3; 9100.0500; and 9100.0600, are repealed.
159.8 	(c) Minnesota Rules, part 6900.0250, subparts 1 and 2, are repealed.

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

159.11 	ARTICLE 4
159.12 	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

159.13 	Section 1. Minnesota Statutes 2024, section 3.732, subdivision 1, is amended to read:
159.14 		Subdivision 1.Definitions. As used in this section and section 3.736 the terms defined 
159.15 	in this section have the meanings given them.
159.16 	(1) "State" includes each of the departments, boards, agencies, commissions, courts, and 
159.17 	officers in the executive, legislative, and judicial branches of the state of Minnesota and 
159.18 	includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 
159.19 	Education, the Higher Health and Education Facilities Authority, the Health Technology 
159.20 	Advisory Committee, the Armory Building Commission, the Zoological Board, the 
159.21 	Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society, 
159.22 	the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges 
159.23 	and Universities, state hospitals, and state penal institutions. It does not include a city, town, 
159.24 	county, school district, or other local governmental body corporate and politic.
159.25 	(2) "Employee of the state" means all present or former officers, members, directors, or 
159.26 	employees of the state, members of the Minnesota National Guard, members of a bomb 
159.27 	disposal unit approved by the commissioner of public safety and employed by a municipality 
159.28 	defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 
159.29 	similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 
159.30 	municipality but within the state, or persons acting on behalf of the state in an official 
159.31 	capacity, temporarily or permanently, with or without compensation. It does not include 
159.32 	either an independent contractor except, for purposes of this section and section 3.736 only, 
160.1 	a guardian ad litem acting under court appointment, or members of the Minnesota National 
160.2 	Guard while engaged in training or duty under United States Code, title 10, or title 32, 
160.3 	section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 
160.4 	sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 
160.5 	of the state" includes a district public defender or assistant district public defender in the 
160.6 	Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 
160.7 	and any officer, agent, or employee of the state of Wisconsin performing work for the state 
160.8 	of Minnesota pursuant to a joint state initiative.
160.9 	(3) "Scope of office or employment" means that the employee was acting on behalf of 
160.10 	the state in the performance of duties or tasks lawfully assigned by competent authority.
160.11 	(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

160.12 	Sec. 2. Minnesota Statutes 2024, section 10A.01, subdivision 35, is amended to read:
160.13 		Subd. 35.Public official. "Public official" means any:
160.14 	(1) member of the legislature;
160.15 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
160.16 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
160.17 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
160.18 	Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis 
160.19 	Department;
160.20 	(3) constitutional officer in the executive branch and the officer's chief administrative 
160.21 	deputy;
160.22 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
160.23 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
160.24 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
160.25 	officer;
160.26 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
160.27 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
160.28 	14, or the power to adjudicate contested cases or appeals under chapter 14;
160.29 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
160.30 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
160.31 	(8) executive director of the State Board of Investment;
161.1 	(9) deputy of any official listed in clauses (7) and (8);
161.2 	(10) judge of the Workers' Compensation Court of Appeals;
161.3 	(11) administrative law judge or compensation judge in the State Office of Administrative 
161.4 	Hearings or unemployment law judge in the Department of Employment and Economic 
161.5 	Development;
161.6 	(12) member, regional administrator, division director, general counsel, or operations 
161.7 	manager of the Metropolitan Council;
161.8 	(13) member or chief administrator of a metropolitan agency;
161.9 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
161.10 	of Public Safety;
161.11 	(15) member or executive director of the Higher Health and Education Facilities 
161.12 	Authority;
161.13 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
161.14 	(17) member of the board of directors or executive director of the Minnesota State High 
161.15 	School League;
161.16 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
161.17 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
161.18 	(20) manager of a watershed district, or member of a watershed management organization 
161.19 	as defined under section 103B.205, subdivision 13;
161.20 	(21) supervisor of a soil and water conservation district;
161.21 	(22) director of Explore Minnesota Tourism;
161.22 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
161.23 	97A.056;
161.24 	(24) citizen member of the Clean Water Council established in section 114D.30;
161.25 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
161.26 	in section 473J.07;
161.27 	(26) district court judge, appeals court judge, or supreme court justice;
161.28 	(27) county commissioner;
161.29 	(28) member of the Greater Minnesota Regional Parks and Trails Commission;
162.1 	(29) member of the Destination Medical Center Corporation established in section 
162.2 	469.41; or
162.3 	(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges 
162.4 	and Universities.

162.5 	Sec. 3. Minnesota Statutes 2024, section 136A.25, is amended to read:
162.6 	136A.25 CREATION.
162.7 	A state agency known as the Minnesota HigherHealth and Education Facilities Authority 
162.8 	is hereby created.

162.9 	Sec. 4. Minnesota Statutes 2024, section 136A.26, is amended to read:
162.10 	136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.
162.11 		Subdivision 1.Membership. The Minnesota Higher Health and Education Facilities 
162.12 	Authority shall consist of eight nine members appointed by the governor with the advice 
162.13 	and consent of the senate, and a representative of the office Office of Higher Education.
162.14 	All members to be appointed by the governor shall be residents of the state. At least two 
162.15 	members must reside outside the metropolitan area as defined in section 473.121, subdivision 
162.16 	2. At least one of the members shall be a person having a favorable reputation for skill, 
162.17 	knowledge, and experience in the field of state and municipal finance; and at least one shall 
162.18 	be a person having a favorable reputation for skill, knowledge, and experience in the building 
162.19 	construction field; and at least one of the members shall be a trustee, director, officer, or 
162.20 	employee of an institution of higher education; and at least one of the members shall be a 
162.21 	trustee, director, officer, or employee of a health care organization.
162.22 		Subd. 1a.Private College Council member. The president of the Minnesota Private 
162.23 	College Council, or the president's designee, shall serve without compensation as an advisory, 
162.24 	nonvoting member of the authority.
162.25 		Subd. 1b.Nonprofit health care association member. The chief executive officer of 
162.26 	a Minnesota nonprofit membership association whose members are primarily nonprofit 
162.27 	health care organizations, or the chief executive officer's designee, shall serve without 
162.28 	compensation as an advisory, nonvoting member of the authority. The identity of the 
162.29 	Minnesota nonprofit membership association shall be determined and may be changed from 
162.30 	time to time by the members of the authority in accordance with and as shall be provided 
162.31 	in the bylaws of the authority.
163.1 		Subd. 2.Term; compensation; removal. The membership terms, compensation, removal 
163.2 	of members, and filling of vacancies for authority members other than the representative 
163.3 	of the office, and the president of the Private College Council, or the chief executive officer 
163.4 	of the Minnesota nonprofit membership association described in subdivision 1b shall be as 
163.5 	provided in section 15.0575.

163.6 	Sec. 5. Minnesota Statutes 2024, section 136A.27, is amended to read:
163.7 	136A.27 POLICY.
163.8 	It is hereby declared that for the benefit of the people of the state, the increase of their 
163.9 	commerce, welfare and prosperity and the improvement of their health and living conditions 
163.10 	it is essential that health care organizations in Minnesota be provided with appropriate 
163.11 	additional means to establish, acquire, construct, improve, and expand health care facilities 
163.12 	in furtherance of their purposes; that this and future generations of youth be given the fullest 
163.13 	opportunity to learn and to develop their intellectual and mental capacities; that it is essential
163.14 	that institutions of higher education within the state be provided with appropriate additional 
163.15 	means to assist such youth in achieving the required levels of learning and development of 
163.16 	their intellectual and mental capacities; and that health care organizations and institutions 
163.17 	of higher education be enabled to refinance outstanding indebtedness incurred to provide 
163.18 	existing facilities used for such those purposes in order to preserve and enhance the utilization 
163.19 	of facilities for purposes of health care and higher education, to extend or adjust maturities 
163.20 	in relation to the resources available for their payment, and to save interest costs and thereby 
163.21 	reduce health care costs or higher education tuition, fees, and charges; and. It is hereby 
163.22 	further declared that it is the purpose of sections 136A.25 to 136A.42 to provide a measure 
163.23 	of assistance and an alternative method to enable health care organizations and institutions 
163.24 	of higher education in the state to provide the facilities and structures which are sorely 
163.25 	needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit 
163.26 	and good, to the extent and manner provided herein.

163.27 	Sec. 6. Minnesota Statutes 2024, section 136A.28, is amended to read:
163.28 	136A.28 DEFINITIONS.
163.29 		Subdivision 1.Scope. In sections 136A.25 to 136A.42, the following words and terms 
163.30 	shall, unless the context otherwise requires, have the meanings ascribed to them.
163.31 		Subd. 1a.Affiliate. "Affiliate" means an entity that directly or indirectly controls, is 
163.32 	controlled by, or is under common control with another entity. For purposes of this 
163.33 	subdivision, "control" means either the power to elect a majority of the members of the 
164.1 	governing body of an entity or the power, whether by contract or otherwise, to direct the 
164.2 	management and policies of the entity. Affiliate also means an entity whose business or 
164.3 	substantially all of whose property is operated under a lease, management agreement, or 
164.4 	operating agreement by another entity, or an entity who operates the business or substantially 
164.5 	all of the property of another entity under a lease, management agreement, or operating 
164.6 	agreement.
164.7 		Subd. 2.Authority. "Authority" means the HigherHealth and Education Facilities 
164.8 	Authority created by sections 136A.25 to 136A.42.
164.9 		Subd. 3.Project. "Project" means a structure or structures available for use as a dormitory 
164.10 	or other student housing facility, a dining hall, student union, administration building, 
164.11 	academic building, library, laboratory, research facility, classroom, athletic facility, health 
164.12 	care facility, child care facility, and maintenance, storage, or utility facility and other 
164.13 	structures or facilities related thereto or required or useful for the instruction of students or 
164.14 	the conducting of research or the operation of an institution of higher education, whether 
164.15 	proposed, under construction, or completed, including parking and other facilities or 
164.16 	structures essential or convenient for the orderly conduct of such institution for higher 
164.17 	education, and shall also include landscaping, site preparation, furniture, equipment and 
164.18 	machinery, and other similar items necessary or convenient for the operation of a particular 
164.19 	facility or structure in the manner for which its use is intended but shall not include such 
164.20 	items as books, fuel, supplies, or other items the costs of which are customarily deemed to 
164.21 	result in a current operating charge, and shalla health care facility or an education facility 
164.22 	whether proposed, under construction, or completed, and includes land or interests in land, 
164.23 	appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures, 
164.24 	furniture, machinery, equipment, and parking. Project also includes other structures, facilities, 
164.25 	improvements, machinery, equipment, and means of transport of a capital nature that are 
164.26 	necessary or convenient for the operation of the facility. Project does not include: (1) any 
164.27 	facility used or to be used for sectarian instruction or as a place of religious worship nor; 
164.28 	(2) any facility which is used or to be used primarily in connection with any part of the 
164.29 	program of a school or department of divinity for any religious denomination; or (3) any 
164.30 	books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are 
164.31 	customarily deemed to result in a current operating charge.
164.32 		Subd. 4.Cost. "Cost," as applied to a project or any portion thereof financed under the 
164.33 	provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction, 
164.34 	acquisition, alteration, enlargement, reconstruction and remodeling of a project including 
164.35 	all lands, structures, real or personal property, rights, rights-of-way, franchises, easements 
165.1 	and interests acquired or used for or in connection with a project, the cost of demolishing 
165.2 	or removing any buildings or structures on land so acquired, including the cost of acquiring 
165.3 	any lands to which such the buildings or structures may be moved, the cost of all machinery 
165.4 	and equipment, financing charges, interest prior to, during and for a period after completion 
165.5 	of such construction and acquisition, provisions for reserves for principal and interest and 
165.6 	for extensions, enlargements, additions and improvements, the cost of architectural, 
165.7 	engineering, financial and legal services, plans, specifications, studies, surveys, estimates 
165.8 	of cost and of revenues, administrative expenses, expenses necessary or incident to 
165.9 	determining the feasibility or practicability of constructing the project and such other 
165.10 	expenses as may be necessary or incident to the construction and acquisition of the project, 
165.11 	the financing of such construction and acquisition and the placing of the project in operation.
165.12 		Subd. 5.Bonds. "Bonds," or "revenue bonds" means revenue bonds of the authority 
165.13 	issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding 
165.14 	bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit 
165.15 	of a participating institution for higher education or any other lawfully pledged security of 
165.16 	a participating institution for higher education.
165.17 		Subd. 6.Institution of higher education. "Institution of higher education" means a 
165.18 	nonprofit educational institution within the state authorized to provide a program of education 
165.19 	beyond the high school level.
165.20 		Subd. 6a.Health care organization. (a) "Health care organization" means a nonprofit 
165.21 	organization located within the state and authorized by law to operate a nonprofit health 
165.22 	care facility in the state. Health care organization also means a nonprofit affiliate of a health 
165.23 	care organization as defined under this paragraph, provided the affiliate is located within 
165.24 	the state or within a state that is geographically contiguous to Minnesota.
165.25 	(b) Health care organization also means a nonprofit organization located in another state 
165.26 	that is geographically contiguous to Minnesota and authorized by law to operate a nonprofit 
165.27 	health care facility in that state, provided that the nonprofit organization located in the 
165.28 	contiguous state is an affiliate of a health care organization located in Minnesota.
165.29 		Subd. 6b.Education facility. "Education facility" means a structure or structures 
165.30 	available for use as a dormitory or other student housing facility, dining hall, student union, 
165.31 	administration building, academic building, library, laboratory, research facility, classroom, 
165.32 	athletic facility, student health care facility, or child care facility, and includes other facilities 
165.33 	or structures related to the essential or convenient orderly conduct of an institution of higher 
165.34 	education.
166.1 		Subd. 6c.Health care facility. (a) "Health care facility" means a structure or structures 
166.2 	available for use in Minnesota as a hospital, clinic, psychiatric residential treatment facility, 
166.3 	birth center, outpatient surgical center, comprehensive outpatient rehabilitation facility, 
166.4 	outpatient physical therapy or speech pathology facility, end-stage renal dialysis facility, 
166.5 	medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility, medical 
166.6 	office building, residence for nurses or interns, nursing home, boarding care home, assisted 
166.7 	living facility, residential hospice, intermediate care facility for persons with developmental 
166.8 	disabilities, supervised living facility, housing with services establishment, board and lodging 
166.9 	establishment with special services, adult day care center, day services facility, prescribed 
166.10 	pediatric extended care facility, community residential setting, adult foster home, or other 
166.11 	facility related to medical or health care research, or the delivery or administration of health 
166.12 	care services and includes other structures or facilities related to the essential or convenient 
166.13 	orderly conduct of a health care organization.
166.14 	(b) Health care facility also means a facility in a state that is geographically contiguous 
166.15 	to Minnesota operated by a health care organization that corresponds by purpose, function, 
166.16 	or use with a facility listed in paragraph (a).
166.17 		Subd. 7.Participating institution of higher education. "Participating institution of 
166.18 	higher education" means a health care organization or an institution of higher education 
166.19 	that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and 
166.20 	construction or acquisition of a project or undertakes the refunding or refinancing of 
166.21 	obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42. 
166.22 	Community colleges and technical colleges may be considered participating institutions of 
166.23 	higher education for the purpose of financing and constructing child care facilities and 
166.24 	parking facilities.

166.25 	Sec. 7. Minnesota Statutes 2024, section 136A.29, subdivision 1, is amended to read:
166.26 		Subdivision 1.Purpose. The purpose of the authority shall be to assist health care 
166.27 	organizations and institutions of higher education in the construction, financing, and 
166.28 	refinancing of projects. The exercise by the authority of the powers conferred by sections 
166.29 	136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public 
166.30 	function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the 
166.31 	powers and duties set forth in subdivisions 2 to 23.

167.1 	Sec. 8. Minnesota Statutes 2024, section 136A.29, subdivision 3, is amended to read:
167.2 		Subd. 3.Employees; office space. The authority is authorized and empowered to appoint 
167.3 	and employ employees as it may deem necessary to carry out its duties, determine the title 
167.4 	of the employees so employed, and fix the salary of said the employees. Employees of the 
167.5 	authority shall participate in retirement and other benefits in the same manner that employees 
167.6 	in the unclassified service of the office managerial plan under section 43A.18, subdivision 
167.7 	3, participate. The authority may maintain an office space as it may designate.

167.8 	Sec. 9. Minnesota Statutes 2024, section 136A.29, subdivision 6, is amended to read:
167.9 		Subd. 6.Projects; generally. (a) The authority is authorized and empowered to determine 
167.10 	the location and character of any project to be financed under the provisions of sections 
167.11 	136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge, 
167.12 	alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into 
167.13 	contracts for any or all of such these purposes, to enter into contracts for the management 
167.14 	and operation of a project, and to designate a participating institution of higher education
167.15 	as its agent to determine the location and character of a project undertaken by such a
167.16 	participating institution of higher education under the provisions of sections 136A.25 to 
167.17 	136A.42 and as the agent of the authority, to construct, reconstruct, remodel, maintain, 
167.18 	manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the 
167.19 	same, and as the agent of the authority, to enter into contracts for any or all of such these
167.20 	purposes, including contracts for the management and operation of such the project.
167.21 	(b) Notwithstanding paragraph (a), a project involving a health care facility in Minnesota 
167.22 	financed under sections 136A.25 to 136A.42 must comply with all applicable requirements 
167.23 	in state law related to authorizing construction of or modifications to a health care facility, 
167.24 	including the requirements in sections 144.5509, 144.551, 144A.071, and 252.291.
167.25 	(c) Contracts of the authority or of a participating institution of higher education to 
167.26 	acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair 
167.27 	projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other 
167.28 	public contract or competitive bid law.

167.29 	Sec. 10. Minnesota Statutes 2024, section 136A.29, subdivision 9, is amended to read:
167.30 		Subd. 9.Revenue bonds; limit. (a) The authority is authorized and empowered to issue 
167.31 	revenue bonds whose aggregate principal amount at any time shall not exceed $2,000,000,000
167.32 	$5,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds 
167.33 	of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for 
168.1 	acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, 
168.2 	furnishing, or equipping one or more projects or parts thereof.
168.3 	(b) Of the $5,000,000,000 limit in paragraph (a), the aggregate principal amount used 
168.4 	to fund education facilities may not exceed $2,250,000,000 at any time and the aggregate 
168.5 	principal amount used to fund health care facilities may not exceed $2,750,000,000 at any 
168.6 	time.

168.7 	Sec. 11. Minnesota Statutes 2024, section 136A.29, subdivision 10, is amended to read:
168.8 		Subd. 10.Revenue bonds; issuance, purpose, conditions. The authority is authorized 
168.9 	and empowered to issue revenue bonds to acquire projects from or to make loans to 
168.10 	participating institutions of higher education and thereby refinance outstanding indebtedness 
168.11 	incurred by participating institutions of higher education to provide funds for the acquisition, 
168.12 	construction or improvement of a facility before or after the enactment of sections 136A.25
168.13 	to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the 
168.14 	authority finds that such the refinancing will enhance or preserve such the participating 
168.15 	institutions and such the facilities or utilization thereof that is for health care or educational 
168.16 	purposes or extend or adjust maturities to correspond to the resources available for their 
168.17 	payment, or reduce charges or fees imposed on patients or occupants, or the tuition, charges,
168.18 	or fees imposed on students for the use or occupancy of the facilities of such the participating 
168.19 	institutions of higher education or costs met by federal or state public funds, or enhance or 
168.20 	preserve health care or educational programs and research or the acquisition or improvement 
168.21 	of other facilities eligible to be a project or part thereof by the participating institution of 
168.22 	higher education. The amount of revenue bonds to be issued to refinance outstanding 
168.23 	indebtedness of a participating institution of higher education shall not exceed the lesser of 
168.24 	(a) the fair value of the project to be acquired by the authority from the institution or 
168.25 	mortgaged to the authority by the institution or (b) the amount of the outstanding indebtedness 
168.26 	including any premium thereon and any interest accrued or to accrue to the date of redemption 
168.27 	and any legal, fiscal and related costs in connection with such the refinancing and reasonable 
168.28 	reserves, as determined by the authority. The provisions of this subdivision do not prohibit 
168.29 	the authority from issuing revenue bonds within and charged against the limitations provided 
168.30 	in subdivision 9 to provide funds for improvements, alteration, renovation, or extension of 
168.31 	the project refinanced.

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

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

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

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

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

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

170.10 	Sec. 18. Minnesota Statutes 2024, section 136A.32, subdivision 1, is amended to read:
170.11 		Subdivision 1.Bonds; generally. (a) The authority may from time to time issue revenue 
170.12 	bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes, 
170.13 	bond anticipation notes or other obligations of the authority issued pursuant to sections 
170.14 	136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes 
170.15 	notwithstanding their payment from a limited source and without regard to any other law 
170.16 	or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable 
170.17 	bond anticipation notes and may renew the same from time to time, but the maximum 
170.18 	maturity of any such note, including renewals thereof, shall not exceed five years from the 
170.19 	date of issue of the original note. Such Notes shall be paid from any revenues of the authority 
170.20 	available therefor and not otherwise pledged, or from the proceeds of sale of the revenue 
170.21 	bonds of the authority in anticipation of which they were issued. The notes shall be issued 
170.22 	in the same manner as the revenue bonds. Such The notes and the resolution or resolutions 
170.23 	authorizing the same may contain any provisions, conditions or limitations which a bond 
170.24 	resolution or the authority may contain.
170.25 	(b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on 
170.26 	behalf of a health care organization to finance health care facilities, the authority must obtain 
170.27 	consent by resolution from each city or town where the project is located, except that consent 
170.28 	need not be obtained in the case of a city or town with a population of less than 100,000. 
170.29 	The consent by resolution requirement does not apply to financing under paragraph (a) on 
170.30 	behalf of a participating institution that is primarily an institution of higher education.

171.1 	Sec. 19. Minnesota Statutes 2024, section 136A.32, subdivision 4, is amended to read:
171.2 		Subd. 4.Provisions of resolution authorizing bonds. Any resolution or resolutions 
171.3 	authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which 
171.4 	shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:
171.5 	(1) pledging all or any part of the revenues of a project or projects, any revenue producing 
171.6 	contract or contracts made by the authority with any individual partnership, corporation or 
171.7 	association or other body one or more partnerships, corporations or associations, or other 
171.8 	bodies, public or private, to secure the payment of the revenue bonds or of any particular 
171.9 	issue of revenue bonds, subject to such agreements with bondholders as may then exist;
171.10 	(2) the rentals, fees and other charges to be charged, and the amounts to be raised in 
171.11 	each year thereby, and the use and disposition of the revenues;
171.12 	(3) the setting aside of reserves or sinking funds, and the regulation and disposition 
171.13 	thereof of them;
171.14 	(4) limitations on the right of the authority or its agent to restrict and regulate the use of 
171.15 	the project;
171.16 	(5) limitations on the purpose to which the proceeds of sale of any issue of revenue 
171.17 	bonds then or thereafter to be issued may be applied and pledging such the proceeds to 
171.18 	secure the payment of the revenue bonds or any issue of the revenue bonds;
171.19 	(6) limitations on the issuance of additional bonds, the terms upon which additional 
171.20 	bonds may be issued and secured and the refunding of outstanding bonds;
171.21 	(7) the procedure, if any, by which the terms of any contract with bondholders may be 
171.22 	amended or abrogated, the amount of bonds the holders of which must consent thereto to, 
171.23 	and the manner in which such consent may be given;
171.24 	(8) limitations on the amount of moneys derived from the project to be expended for 
171.25 	operating, administrative or other expenses of the authority;
171.26 	(9) defining the acts or omissions to act which shall constitute a default in the duties of 
171.27 	the authority to holders of its obligations and providing the rights and remedies of such the
171.28 	holders in the event of a default; or
171.29 	(10) the mortgaging of a project and the site thereof for the purpose of securing the 
171.30 	bondholders.

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

172.8 	Sec. 21. Minnesota Statutes 2024, section 136A.33, is amended to read:
172.9 	136A.33 TRUST AGREEMENT.
172.10 	In the discretion of the authority any revenue bonds issued under the provisions of 
172.11 	sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the 
172.12 	authority and a corporate trustee or trustees, which may be any trust company or bank having 
172.13 	the powers of a trust company within the state. Such The trust agreement or the resolution 
172.14 	providing for the issuance of such revenue bonds may pledge or assign the revenues to be 
172.15 	received or proceeds of any contract or contracts pledged and may convey or mortgage the 
172.16 	project or any portion thereof of the project. Such The trust agreement or resolution providing 
172.17 	for the issuance of such revenue bonds may contain such provisions for protecting and 
172.18 	enforcing the rights and remedies of the bondholders as may be reasonable and proper and 
172.19 	not in violation of laws, including particularly such particular provisions as have hereinabove
172.20 	that have been specifically authorized to be included in any resolution or resolutions of the 
172.21 	authority authorizing revenue bonds thereof. Any bank or trust company incorporated under 
172.22 	the laws of the state which that may act as depository of the proceeds of bonds or of revenues 
172.23 	or other moneys may furnish such indemnifying bonds or pledges suchpledge securities as 
172.24 	may be required by the authority. Any such trust agreement may set forth the rights and 
172.25 	remedies of the bondholders and of the trustee or trustees and may restrict the individual 
172.26 	right of action by bondholders. In addition to the foregoing, any such trust agreement or 
172.27 	resolution may contain such other provisions as the authority may deem reasonable and 
172.28 	proper for the security of the bondholders. All expenses incurred in carrying out the 
172.29 	provisions of such the trust agreement or resolution may be treated as a part of the cost of 
172.30 	the operation of a project.

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

173.11 	Sec. 23. Minnesota Statutes 2024, section 136A.34, subdivision 4, is amended to read:
173.12 		Subd. 4.Additional purpose; improvements. The portion of the proceeds of any such
173.13 	revenue bonds issued for the additional purpose of paying all or any part of the cost of 
173.14 	constructing and acquiring additions, improvements, extensions or enlargements of a project 
173.15 	may be invested or deposited in time deposits as provided in section 136A.32, subdivision 
173.16 	7.

173.17 	Sec. 24. Minnesota Statutes 2024, section 136A.36, is amended to read:
173.18 	136A.36 REVENUES.
173.19 	The authority may fix, revise, charge and collect rates, rents, fees and charges for the 
173.20 	use of and for the services furnished or to be furnished by each project and to may contract 
173.21 	with any person, partnership, association or corporation, or other body, public or private, 
173.22 	in respect thereof. Such The rates, rents, fees, and charges may vary between projects 
173.23 	involving an education facility and projects involving a health care facility and shall be 
173.24 	fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from such
173.25 	the project so as to provide funds sufficient with other revenues, if any:
173.26 	(1) to pay the cost of maintaining, repairing and operating the project and each and every 
173.27 	portion thereof of the project, to the extent that the payment of such the cost has not otherwise 
173.28 	been adequately provided for;
173.29 	(2) to pay the principal of and the interest on outstanding revenue bonds of the authority 
173.30 	issued in respect of such the project as the same shall become due and payable; and
173.31 	(3) to create and maintain reserves required or provided for in any resolution authorizing, 
173.32 	or trust agreement securing, such revenue bonds of the authority. Such The rates, rents, fees 
174.1 	and charges shall not be subject to supervision or regulation by any department, commission, 
174.2 	board, body, bureau or agency of this state other than the authority. A sufficient amount of 
174.3 	the revenues derived in respect of a project, except such part of such the revenues as may 
174.4 	be necessary to pay the cost of maintenance, repair and operation and to provide reserves 
174.5 	and for renewals, replacements, extensions, enlargements and improvements as may be 
174.6 	provided for in the resolution authorizing the issuance of any revenue bonds of the authority 
174.7 	or in the trust agreement securing the same, shall be set aside at such regular intervals as 
174.8 	may be provided in such the resolution or trust agreement in a sinking or other similar fund 
174.9 	which that is hereby pledged to, and charged with, the payment of the principal of and the 
174.10 	interest on such revenue bonds as the same shall become due, and the redemption price or 
174.11 	the purchase price of bonds retired by call or purchase as therein provided. Such The pledge 
174.12 	shall be valid and binding from the time when the pledge is made; the rates, rents, fees and 
174.13 	charges and other revenues or other moneys so pledged and thereafter received by the 
174.14 	authority shall immediately be subject to the lien of such the pledge without physical delivery 
174.15 	thereof or further act, and the lien of any such pledge shall be valid and binding as against 
174.16 	all parties having claims of any kind against the authority, irrespective of whether such the
174.17 	parties have notice thereof of the pledge. Neither the resolution nor any trust agreement by 
174.18 	which a pledge is created need be filed or recorded except in the records of the authority. 
174.19 	The use and disposition of moneys to the credit of such a sinking or other similar fund shall 
174.20 	be subject to the provisions of the resolution authorizing the issuance of such bonds or of 
174.21 	such a trust agreement. Except as may otherwise be provided in such the resolution or such
174.22 	trust agreement, such the sinking or other similar fund shall be a fund for all such revenue 
174.23 	bonds issued to finance a project or projects at one or more participating institutions of 
174.24 	higher education without distinction or priority of one over another; provided the authority 
174.25 	in any such resolution or trust agreement may provide that such the sinking or other similar 
174.26 	fund shall be the fund for a particular project at an a participating institution of higher 
174.27 	education and for the revenue bonds issued to finance a particular project and may, 
174.28 	additionally, permit and provide for the issuance of revenue bonds having a subordinate 
174.29 	lien in respect of the security herein authorized to other revenue bonds of the authority and, 
174.30 	in such case, the authority may create separate or other similar funds in respect of such the
174.31 	subordinate lien bonds.

174.32 	Sec. 25. Minnesota Statutes 2024, section 136A.38, is amended to read:
174.33 	136A.38 BONDS ELIGIBLE FOR INVESTMENT.
174.34 	Bonds issued by the authority under the provisions of sections 136A.25 to 136A.42, are 
174.35 	hereby made securities in which all public officers and public bodies of the state and its 
175.1 	political subdivisions, all insurance companies, trust companies, banking associations, 
175.2 	investment companies, executors, administrators, trustees and other fiduciaries may properly 
175.3 	and legally invest funds, including capital in their control or belonging to them; it being the 
175.4 	purpose of this section to authorize the investment in such bonds of all sinking, insurance, 
175.5 	retirement, compensation, pension and trust funds, whether owned or controlled by private 
175.6 	or public persons or officers; provided, however, that nothing contained in this section may 
175.7 	be construed as relieving any person, firm, or corporation from any duty of exercising due 
175.8 	care in selecting securities for purchase or investment; and provide further, that in no event 
175.9 	shall assets of pension funds of public employees of the state of Minnesota or any of its 
175.10 	agencies, boards or subdivisions, whether publicly or privately administered, be invested 
175.11 	in bonds issued under the provisions of sections 136A.25 to 136A.42. Such The bonds are 
175.12 	hereby constituted "authorized securities" within the meaning and for the purposes of 
175.13 	Minnesota Statutes 1969, section 50.14. Such The bonds are hereby made securities which
175.14 	that may properly and legally be deposited with and received by any state or municipal 
175.15 	officer or any agency or political subdivision of the state for any purpose for which the 
175.16 	deposit of bonds or obligations of the state now or may hereafter be authorized by law.

175.17 	Sec. 26. Minnesota Statutes 2024, section 136A.41, is amended to read:
175.18 	136A.41 CONFLICT OF INTEREST.
175.19 	Notwithstanding any other law to the contrary it shall not be or constitute a conflict of 
175.20 	interest for a trustee, director, officer or employee of any participating institution of higher 
175.21 	education, financial institution, investment banking firm, brokerage firm, commercial bank 
175.22 	or trust company, architecture firm, insurance company, construction company, or any other 
175.23 	firm, person or corporation to serve as a member of the authority, provided such the trustee, 
175.24 	director, officer or employee shall abstain from deliberation, action and vote by the authority 
175.25 	in each instance where the business affiliation of any such trustee, director, officer or 
175.26 	employee is involved.

175.27 	Sec. 27. Minnesota Statutes 2024, section 136A.42, is amended to read:
175.28 	136A.42 ANNUAL REPORT.
175.29 	The authority shall keep an accurate account of all of its activities and all of its receipts 
175.30 	and expenditures and shall annually report to the office. Each year, the authority shall submit 
175.31 	to the Minnesota Historical Society and the Legislative Reference Library a report of the 
175.32 	authority's activities in the previous year, including all financial activities.

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

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

176.12 	Sec. 30. REVISOR INSTRUCTION.
 176.13 	The revisor of statutes shall renumber the law establishing and governing the Minnesota 
176.14 	Higher Education Facilities Authority, renamed the Minnesota Health and Education 
176.15 	Facilities Authority in this act, as Minnesota Statutes, chapter 15D, coded in Minnesota 
176.16 	Statutes, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor of 
176.17 	statutes shall also duplicate any required definitions from Minnesota Statutes, chapter 136A, 
176.18 	revise any statutory cross-references consistent with the recoding, and report the history in 
176.19 	Minnesota Statutes, chapter 15D. The revisor of statutes shall change "Minnesota Higher 
176.20 	Education Facilities Authority" to "Minnesota Health and Higher Education Facilities 
176.21 	Authority" where it appears in Minnesota Statutes.

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

176.24 	ARTICLE 5
176.25 	PHARMACY BENEFITS

176.26 	Section 1. [62Q.83] FORMULARY CHANGES.
176.27 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
176.28 	the meanings given.
176.29 	(b) "Drug" has the meaning given in section 151.01, subdivision 5.
177.1 	(c) "Enrollee" has the meaning given in section 62Q.01, subdivision 2b.
177.2 	(d) "Formulary" means a current list of covered prescription drug products that is subject 
177.3 	to periodic review and update.
177.4 	(e) "Health plan" has the meaning given in section 62Q.01, subdivision 3.
177.5 	(f) "Pharmacy benefit manager" has the meaning given in section 62W.02, subdivision 
177.6 	15.
177.7 	(g) "Prescription" has the meaning given in section 151.01, subdivision 16a.
177.8 		Subd. 2.Formulary changes. (a) Except as provided in paragraphs (b) and (c), a health 
177.9 	plan must not, with respect to an enrollee who was previously prescribed the drug during 
177.10 	the plan year, remove a drug from the health plan's formulary or place a drug in a benefit 
177.11 	category that increases the enrollee's cost for the duration of the enrollee's plan year.
177.12 	(b) Paragraph (a) does not apply if a health plan changes the health plan's formulary:
177.13 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
177.14 	Administration (FDA);
177.15 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
177.16 	(3) when an independent source of research, clinical guidelines, or evidence-based 
177.17 	standards has issued drug-specific warnings or recommended changes with respect to a 
177.18 	drug's use for reasons related to previously unknown and imminent patient harm.
177.19 	(c) Paragraph (a) does not apply if a health plan removes a brand name drug from the 
177.20 	health plan's formulary or places a brand name drug in a benefit category that increases the 
177.21 	enrollee's cost if the health plan:
177.22 	(1) adds to the health plan's formulary a generic or multisource brand name drug rated 
177.23 	as therapeutically equivalent according to the FDA Orange Book, or a biologic drug rated 
177.24 	as interchangeable according to the FDA Purple Book, at the same or lower cost to the 
177.25 	enrollee; and
177.26 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

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

177.29 	Sec. 2. Minnesota Statutes 2024, section 256B.0625, subdivision 13, is amended to read:
177.30 		Subd. 13.Drugs. (a) Medical assistance covers drugs, except for fertility drugs when 
177.31 	specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed 
178.1 	by a licensed pharmacist, by a physician enrolled in the medical assistance program as a 
178.2 	dispensing physician, or by a physician, a physician assistant, or an advanced practice 
178.3 	registered nurse employed by or under contract with a community health board as defined 
178.4 	in section 145A.02, subdivision 5, for the purposes of communicable disease control.
178.5 	(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply unless 
178.6 	authorized by the commissioner or as provided in paragraph (h) or the drug appears on the 
178.7 	90-day supply list published by the commissioner. The 90-day supply list shall be published 
178.8 	by the commissioner on the department's website. The commissioner may add to, delete 
178.9 	from, and otherwise modify the 90-day supply list after providing public notice and the 
178.10 	opportunity for a 15-day public comment period. The 90-day supply list may include 
178.11 	cost-effective generic drugs and shall not include controlled substances.
178.12 	(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical 
178.13 	ingredient" is defined as a substance that is represented for use in a drug and when used in 
178.14 	the manufacturing, processing, or packaging of a drug becomes an active ingredient of the 
178.15 	drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle 
178.16 	for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and 
178.17 	excipients which are included in the medical assistance formulary. Medical assistance covers 
178.18 	selected active pharmaceutical ingredients and excipients used in compounded prescriptions 
178.19 	when the compounded combination is specifically approved by the commissioner or when 
178.20 	a commercially available product:
178.21 	(1) is not a therapeutic option for the patient;
178.22 	(2) does not exist in the same combination of active ingredients in the same strengths 
178.23 	as the compounded prescription; and
178.24 	(3) cannot be used in place of the active pharmaceutical ingredient in the compounded 
178.25 	prescription.
178.26 	(d) Medical assistance covers the following over-the-counter drugs when prescribed by 
178.27 	a licensed practitioner or by a licensed pharmacist who meets standards established by the 
178.28 	commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family 
178.29 	planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults 
178.30 	with documented vitamin deficiencies, vitamins for children under the age of seven and 
178.31 	pregnant or nursing women, and any other over-the-counter drug identified by the 
178.32 	commissioner, in consultation with the Formulary Committee, as necessary, appropriate, 
178.33 	and cost-effective for the treatment of certain specified chronic diseases, conditions, or 
178.34 	disorders, and this determination shall not be subject to the requirements of chapter 14. A 
179.1 	pharmacist may prescribe over-the-counter medications as provided under this paragraph 
179.2 	for purposes of receiving reimbursement under Medicaid. When prescribing over-the-counter 
179.3 	drugs under this paragraph, licensed pharmacists must consult with the recipient to determine 
179.4 	necessity, provide drug counseling, review drug therapy for potential adverse interactions, 
179.5 	and make referrals as needed to other health care professionals.
179.6 	(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable 
179.7 	under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and 
179.8 	Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible 
179.9 	for drug coverage as defined in the Medicare Prescription Drug, Improvement, and 
179.10 	Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these 
179.11 	individuals, medical assistance may cover drugs from the drug classes listed in United States 
179.12 	Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to 
179.13 	13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall 
179.14 	not be covered.
179.15 	(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing 
179.16 	Program and dispensed by 340B covered entities and ambulatory pharmacies under common 
179.17 	ownership of the 340B covered entity. Medical assistance does not cover drugs acquired 
179.18 	through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.
179.19 	(g) Notwithstanding paragraph (a), medical assistance covers self-administered hormonal 
179.20 	contraceptives prescribed and dispensed by a licensed pharmacist in accordance with section 
179.21 	151.37, subdivision 14; nicotine replacement medications prescribed and dispensed by a 
179.22 	licensed pharmacist in accordance with section 151.37, subdivision 15; and opiate antagonists 
179.23 	used for the treatment of an acute opiate overdose prescribed and dispensed by a licensed 
179.24 	pharmacist in accordance with section 151.37, subdivision 16.
179.25 	(h) Medical assistance coverage for a prescription contraceptive must provide a 12-month 
179.26 	supply for any prescription contraceptive if a 12-month supply is prescribed by the 
179.27 	prescribing health care provider. The prescribing health care provider must determine the 
179.28 	appropriate duration for which to prescribe the prescription contraceptives, up to 12 months. 
179.29 	For purposes of this paragraph, "prescription contraceptive" means any drug or device that 
179.30 	requires a prescription and is approved by the Food and Drug Administration to prevent 
179.31 	pregnancy. Prescription contraceptive does not include an emergency contraceptive drug 
179.32 	approved to prevent pregnancy when administered after sexual contact. For purposes of this 
179.33 	paragraph, "health plan" has the meaning provided in section 62Q.01, subdivision 3.
180.1 	(i) Notwithstanding a removal of a drug from the drug formulary under subdivision 13d, 
180.2 	except as provided in paragraphs (j) and (k), medical assistance covers a drug, with respect 
180.3 	to an enrollee who was previously prescribed the drug during the calendar year when the 
180.4 	drug was on the formulary, at the same level until January 1 of the calendar year following 
180.5 	the year in which the commissioner removed the drug from the formulary.
180.6 	(j) Paragraph (i) does not apply if the commissioner changes the drug formulary:
180.7 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
180.8 	Administration (FDA);
180.9 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
180.10 	(3) when an independent source of research, clinical guidelines, or evidence-based 
180.11 	standards has issued drug-specific warnings or recommended changes with respect to a 
180.12 	drug's use for reasons related to previously unknown and imminent patient harm.
180.13 	(k) Paragraph (i) does not apply if the commissioner removes a brand name drug from 
180.14 	the formulary if the commissioner:
180.15 	(1) adds to the formulary a generic or multisource brand name drug rated as 
180.16 	therapeutically equivalent according to the FDA Orange Book, or a biologic drug rated as 
180.17 	interchangeable according to the FDA Purple Book, at the same or lower cost to the enrollee; 
180.18 	and
180.19 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

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

180.23 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, subdivision 13c, is amended to read:
180.24 		Subd. 13c.Formulary Committee. The commissioner, after receiving recommendations 
180.25 	from professional medical associations and professional pharmacy associations, and consumer 
180.26 	groups shall designate a Formulary Committee to carry out duties as described in subdivisions 
180.27 	13 to 13g. The Formulary Committee shall be comprised of at least five licensed physicians 
180.28 	actively engaged in the practice of medicine in Minnesota, one of whom is an actively 
180.29 	practicing psychiatrist, one of whom specializes in the diagnosis and treatment of rare 
180.30 	diseases, one of whom specializes in pediatrics, and one of whom actively treats persons 
180.31 	with disabilities; at least three licensed pharmacists actively engaged in the practice of 
180.32 	pharmacy in Minnesota, one of whom practices outside the metropolitan counties listed in 
181.1 	section 473.121, subdivision 4, one of whom practices in the metropolitan counties listed 
181.2 	in section 473.121, subdivision 4, and one of whom is a practicing hospital pharmacist; at 
181.3 	least two consumer representatives, all of whom must have a personal or professional 
181.4 	connection to medical assistance; and one representative designated by the Minnesota Rare 
181.5 	Disease Advisory Council established under section 256.4835; the remainder to be made 
181.6 	up of health care professionals who are licensed in their field and have recognized knowledge 
181.7 	in the clinically appropriate prescribing, dispensing, and monitoring of covered outpatient 
181.8 	drugs. Members of the Formulary Committee shall not be employed by the Department of 
181.9 	Human Services or have a personal interest in a pharmaceutical company, pharmacy benefits 
181.10 	manager, health plan company, or their affiliate organizations, but the committee shall be 
181.11 	staffed by an employee of the department who shall serve as an ex officio, nonvoting member 
181.12 	of the committee. For the purposes of this subdivision, "personal interest" means that a 
181.13 	person owns at least five percent of the voting interest or equity interest in the entity, the 
181.14 	equity interest owned by a person represents at least five percent of that person's net worth, 
181.15 	or more than five percent of a person's gross income for the preceding year was derived 
181.16 	from the entity. A committee member must notify the committee of any potential conflict 
181.17 	of interest and recuse themselves from any communications, discussion, or vote on any 
181.18 	matter where a conflict of interest exists. A conflict of interest alone, without a personal 
181.19 	interest, does not preclude an applicant from serving as a member of the Formulary 
181.20 	Committee. Members may be removed from the committee for cause after a recommendation 
181.21 	for removal by a majority of the committee membership. For the purposes of this subdivision, 
181.22 	"cause" does not include offering a differing or dissenting clinical opinion on a drug or drug 
181.23 	class. The department's medical director shall also serve as an ex officio, nonvoting member 
181.24 	for the committee. Committee members shall serve three-year terms and may be reappointed 
181.25 	twice by the commissioner. The committee members shall vote on a chair and vice chair 
181.26 	from among their membership. The chair shall preside over all committee meetings, and 
181.27 	the vice chair shall preside over the meetings if the chair is not present. The Formulary 
181.28 	Committee shall meet at least three times per year. The commissioner may require more 
181.29 	frequent Formulary Committee meetings as needed. An honorarium of $100 per meeting 
181.30 	and reimbursement for mileage shall be paid to each committee member in attendance. The 
181.31 	Formulary Committee expires June 30, 2027 2029. The Formulary Committee is subject to 
181.32 	the Open Meeting Law under chapter 13D. For purposes of establishing a quorum to transact 
181.33 	business, vacant committee member positions do not count in the calculation as long as at 
181.34 	least 60 percent of the committee member positions are filled.

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

182.1 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, subdivision 13d, is amended to read:
182.2 		Subd. 13d.Drug formulary. (a) The commissioner shall establish a drug formulary. Its 
182.3 	establishment and publication shall not be subject to the requirements of the Administrative 
182.4 	Procedure Act, but the Formulary Committee shall review and comment on the formulary 
182.5 	contents.
182.6 	(b) The formulary shall not include:
182.7 	(1) drugs, active pharmaceutical ingredients, or products for which there is no federal 
182.8 	funding;
182.9 	(2) over-the-counter drugs, except as provided in subdivision 13;
182.10 	(3) drugs or active pharmaceutical ingredients when used for the treatment of impotence 
182.11 	or erectile dysfunction;
182.12 	(4) drugs or active pharmaceutical ingredients for which medical value has not been 
182.13 	established;
182.14 	(5) drugs from manufacturers who have not signed a rebate agreement with the 
182.15 	Department of Health and Human Services pursuant to section 1927 of title XIX of the 
182.16 	Social Security Act; and
182.17 	(6) medical cannabis flower as defined in section 342.01, subdivision 54, or medical 
182.18 	cannabinoid products as defined in section 342.01, subdivision 52.
182.19 	(c) If a single-source drug used by at least two percent of the fee-for-service medical 
182.20 	assistance recipients is removed from the formulary due to the failure of the manufacturer 
182.21 	to sign a rebate agreement with the Department of Health and Human Services, the 
182.22 	commissioner shall notify prescribing practitioners within 30 days of receiving notification 
182.23 	from the Centers for Medicare and Medicaid Services (CMS) that a rebate agreement was 
182.24 	not signed.
182.25 	(d) Within ten calendar days of any commissioner determination to change the drug 
182.26 	formulary, the commissioner must provide written notice to all enrollees affected by the 
182.27 	change. The notice must include a description of the change, the reason for the change, and 
182.28 	the date the change will become effective.
182.29 	(e) By January 15, 2026, and annually thereafter, the commissioner of human services 
182.30 	must provide a report with data and information related to the effects on enrollees of drug 
182.31 	formulary changes made in the prior calendar year to the chairs and ranking minority 
183.1 	members of the legislative committees with jurisdiction over health and human services 
183.2 	policy and finance. The report must include but is not limited to data and information on:
183.3 	(1) the number of times the formulary was changed;
183.4 	(2) the reasons for the formulary changes and how frequently the formulary was changed 
183.5 	for each reason;
183.6 	(3) the drugs that were removed from the formulary;
183.7 	(4) for each drug that was removed from the formulary, the number of enrollees who 
183.8 	were prescribed that drug when it was removed;
183.9 	(5) for each drug that was removed from the formulary, whether a therapeutically 
183.10 	equivalent drug was added;
183.11 	(6) the drugs that were added to the formulary;
183.12 	(7) the fiscal impacts to the Department of Human Services resulting from the changes 
183.13 	to the formulary; and
183.14 	(8) enrollee populations or medical conditions disproportionately affected by the 
183.15 	formulary changes.

183.16 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 13e, is amended to read:
183.17 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
183.18 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
183.19 	usual and customary price charged to the public. The usual and customary price means the 
183.20 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
183.21 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
183.22 	a prescription savings club or prescription discount club administered by the pharmacy or 
183.23 	pharmacy chain, unless the prescription savings club or prescription discount club is one 
183.24 	in which an individual pays a recurring monthly access fee for unlimited access to a defined 
183.25 	list of drugs for which the pharmacy does not bill the member or a payer on a 
183.26 	per-standard-transaction basis. The amount of payment basis must be reduced to reflect all 
183.27 	discount amounts applied to the charge by any third-party provider/insurer agreement or 
183.28 	contract for submitted charges to medical assistance programs. The net submitted charge 
183.29 	may not be greater than the patient liability for the service. The professional dispensing fee 
183.30 	shall be $11.55 for prescriptions filled with legend drugs meeting the definition of "covered 
183.31 	outpatient drugs" according to United States Code, title 42, section 1396r-8(k)(2). The 
183.32 	dispensing fee for intravenous solutions that must be compounded by the pharmacist shall 
184.1 	be $11.55 per claim. The professional dispensing fee for prescriptions filled with 
184.2 	over-the-counter drugs meeting the definition of covered outpatient drugs shall be $11.55 
184.3 	for dispensed quantities equal to or greater than the number of units contained in the 
184.4 	manufacturer's original package. The professional dispensing fee shall be prorated based 
184.5 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
184.6 	than the number of units contained in the manufacturer's original package. The pharmacy 
184.7 	dispensing fee for prescribed over-the-counter drugs not meeting the definition of covered 
184.8 	outpatient drugs shall be $3.65 for quantities equal to or greater than the number of units 
184.9 	contained in the manufacturer's original package and shall be prorated based on the 
184.10 	percentage of the package dispensed when the pharmacy dispenses a quantity less than the 
184.11 	number of units contained in the manufacturer's original package. The ingredient cost for 
184.12 	a drug is the lower of the National Average Drug Acquisition Cost (NADAC) shall be used 
184.13 	to determine the ingredient cost of a drug, the Minnesota actual acquisition cost (MNAAC) 
184.14 	as defined in paragraph (i), or the maximum allowable cost. For drugs for which a NADAC, 
184.15 	a MNAAC, or a maximum allowable cost is not reported, the commissioner shall estimate 
184.16 	the ingredient cost at the wholesale acquisition cost minus two percent. The ingredient cost 
184.17 	of a drug for a provider participating in the federal 340B Drug Pricing Program shall be 
184.18 	either the 340B Drug Pricing Program ceiling price established by the Health Resources 
184.19 	and Services Administration or, the NADAC, the MNAAC, or the maximum allowable 
184.20 	cost, whichever is lower. Wholesale acquisition cost is defined as the manufacturer's list 
184.21 	price for a drug or biological to wholesalers or direct purchasers in the United States, not 
184.22 	including prompt pay or other discounts, rebates, or reductions in price, for the most recent 
184.23 	month for which information is available, as reported in wholesale price guides or other 
184.24 	publications of drug or biological pricing data. The maximum allowable cost of a multisource
184.25 	drug may be set by the commissioner and it shall be comparable to the actual acquisition 
184.26 	cost of the drug product and no higher than the NADAC of the generic product. Establishment 
184.27 	of the amount of payment for drugs shall not be subject to the requirements of the 
184.28 	Administrative Procedure Act.
184.29 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
184.30 	an automated drug distribution system meeting the requirements of section 151.58, or a 
184.31 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
184.32 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
184.33 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
184.34 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
184.35 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
184.36 	pharmacy must use a billing period not less than one calendar month or 30 days.
185.1 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
185.2 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
185.3 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
185.4 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
185.5 	is less than a 30-day supply.
185.6 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the lesser 
185.7 	of the NADAC of the generic product, the MNAAC of the generic product, or the maximum 
185.8 	allowable cost of the generic product established by the commissioner unless prior 
185.9 	authorization for the brand name product has been granted according to the criteria 
185.10 	established by the Drug Formulary Committee as required by subdivision 13f, paragraph 
185.11 	(a), and the prescriber has indicated "dispense as written" on the prescription in a manner 
185.12 	consistent with section 151.21, subdivision 2. If prior authorization is granted, the ingredient 
185.13 	cost shall be the lesser of the NADAC of the brand name product, the MNAAC of the brand 
185.14 	name product, or the maximum allowable cost of the brand name product. A generic product 
185.15 	includes a generic drug, an authorized generic drug, and a biosimilar biological product as 
185.16 	defined in Code of Federal Regulations, title 42, section 423.4. A brand name product 
185.17 	includes a brand name drug, a brand name biological product, and an unbranded biological 
185.18 	product as defined in Code of Federal Regulations, title 42, section 423.4.
185.19 	(e) The basis for determining the amount of payment for drugs administered in an 
185.20 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
185.21 	provider, 106 percent of the average sales price as determined by the United States 
185.22 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
185.23 	federal Social Security Act, the specialty pharmacy rate MNAAC, or the maximum allowable 
185.24 	cost set by the commissioner. If the average sales price is, the MNAAC, and the maximum 
185.25 	allowable cost are unavailable, the amount of payment must be lower of the usual and 
185.26 	customary cost submitted by the provider, or the wholesale acquisition cost, the specialty 
185.27 	pharmacy rate, or the maximum allowable cost set by the commissioner. The commissioner 
185.28 	shall discount the payment rate for drugs obtained through the federal 340B Drug Pricing 
185.29 	Program by 28.6 percent. The payment for drugs administered in an outpatient setting shall 
185.30 	be made to the administering facility or practitioner. A retail or specialty pharmacy dispensing 
185.31 	a drug for administration in an outpatient setting is not eligible for direct reimbursement.
185.32 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
185.33 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
185.34 	commissioner may require individuals enrolled in the health care programs administered 
185.35 	by the department to obtain specialty pharmacy products from providers with whom the 
186.1 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
186.2 	defined as those used by a small number of recipients or recipients with complex and chronic 
186.3 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
186.4 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
186.5 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
186.6 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
186.7 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
186.8 	require complex care. The commissioner shall consult with the Formulary Committee to 
186.9 	develop a list of specialty pharmacy products subject to maximum allowable cost 
186.10 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
186.11 	commissioner shall take into consideration the population served by specialty pharmacy 
186.12 	products, the current delivery system and standard of care in the state, and access to care 
186.13 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
186.14 	to prevent access to care issues.
186.15 	(g) (f) Home infusion therapy services provided by home infusion therapy pharmacies 
186.16 	must be paid at rates according to subdivision 8d.
186.17 	(h) (g) The commissioner shall contract with a vendor to conduct a cost of dispensing 
186.18 	survey for all pharmacies that are physically located in the state of Minnesota that dispense 
186.19 	outpatient drugs under medical assistance. The commissioner shall ensure that the vendor 
186.20 	has prior experience in conducting cost of dispensing surveys. Each pharmacy enrolled with 
186.21 	the department to dispense outpatient prescription drugs to fee-for-service members must 
186.22 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
186.23 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
186.24 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
186.25 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
186.26 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
186.27 	medical assistance prescription volume, median, median weighted by total prescription 
186.28 	volume, and median weighted by total medical assistance prescription volume. The 
186.29 	commissioner shall post a copy of the final cost of dispensing survey report on the 
186.30 	department's website. The initial survey must be completed no later than January 1, 2021, 
186.31 	and repeated every three two years. The commissioner shall provide a summary of the 
186.32 	results of each cost of dispensing survey and provide recommendations for any changes to 
186.33 	the dispensing fee to the chairs and ranking minority members of the legislative committees 
186.34 	with jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
186.35 	256.01, subdivision 42, this paragraph does not expire.
187.1 	(i) (h) The commissioner shall increase the ingredient cost reimbursement calculated in 
187.2 	paragraphs (a) and (f) (e) by 1.8 percent the amount of the wholesale drug distributor tax
187.3 	for prescription and nonprescription drugs subject to the wholesale drug distributor tax 
187.4 	under section 295.52.
187.5 	(i) The commissioner shall contract with a vendor to create MNAAC through a periodic 
187.6 	survey of enrolled pharmacy providers. Each pharmacy enrolled with the department to 
187.7 	dispense outpatient prescription drugs must respond to the periodic surveys. The 
187.8 	commissioner may sanction a pharmacy under section 256B.064 for failure to respond. The 
187.9 	current MNAAC rates must be publicly available on the department's or vendor's website. 
187.10 	The commissioner must require that the MNAAC is measured and calculated at least 
187.11 	quarterly, but the MNAAC can be measured and calculated more frequently. The 
187.12 	commissioner must ensure that the vendor has an appeal process available to providers for 
187.13 	the time between the measurement and calculation of the periodically updated MNAAC 
187.14 	rates if price fluctuations result in a MNAAC that is lower than the price at which enrolled 
187.15 	providers can purchase a drug. Establishment of the MNAAC and survey reporting 
187.16 	requirements shall not be subject to the requirements of the Administrative Procedure Act. 
187.17 	Data provided by pharmacies for the measurement and calculation of the MNAAC are 
187.18 	nonpublic data as defined in section 13.02, subdivision 9.

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

187.22 	Sec. 6. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
187.23 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
187.24 	any individual or entity that receives payments from medical assistance or provides goods 
187.25 	or services for which payment is made from medical assistance for any of the following: 
187.26 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
187.27 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
187.28 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
187.29 	a pattern of making false statements of material facts for the purpose of obtaining greater 
187.30 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
187.31 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
187.32 	regular business hours to examine all records necessary to disclose the extent of services 
187.33 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
187.34 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
188.1 	errors in the maintenance of health service or financial records for which a fine was imposed 
188.2 	or after issuance of a warning by the commissioner; and (8) any reason for which an 
188.3 	individual or entity could be excluded from participation in the Medicare program under 
188.4 	section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the purposes of this 
188.5 	section, goods or services for which payment is made from medical assistance includes but 
188.6 	is not limited to care and services identified in section 256B.0625 or provided pursuant to 
188.7 	any federally approved waiver.
188.8 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
188.9 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
188.10 	(h) (g).
188.11 	(c) The commissioner may impose sanctions against a pharmacy provider for failure to 
188.12 	respond to a Minnesota drug acquisition cost survey under section 256B.0625, subdivision 
188.13 	13e, paragraph (i).

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

188.17 	Sec. 7. Minnesota Statutes 2024, section 256B.69, subdivision 6d, is amended to read:
188.18 		Subd. 6d.Prescription drugs. (a) The commissioner may exclude or modify coverage 
188.19 	for prescription drugs from the prepaid managed care contracts entered into under this 
188.20 	section in order to increase savings to the state by collecting additional prescription drug 
188.21 	rebates.
188.22 	(b) The contracts must maintain incentives for the managed care plan to manage drug 
188.23 	costs and utilization and may require that the managed care plans maintain an open drug 
188.24 	formulary. In order to manage drug costs and utilization, the contracts may authorize the 
188.25 	managed care plans to use preferred drug lists and prior authorization. The contracts must 
188.26 	require that the managed care plans enter into contracts with the state's selected pharmacy 
188.27 	benefit manager vendor to administer the pharmacy benefit.
188.28 	(c) This subdivision is contingent on federal approval of the managed care contract 
188.29 	changes and the collection of additional prescription drug rebates.

189.1 	Sec. 8. Minnesota Statutes 2024, section 256B.69, is amended by adding a subdivision to 
189.2 	read:
189.3 		Subd. 6i.Directed pharmacy dispensing payment. (a) The commissioner shall provide 
189.4 	a directed pharmacy dispensing payment of $4.50 per filled prescription to eligible outpatient 
189.5 	retail pharmacies in Minnesota to improve and maintain access to pharmaceutical services 
189.6 	in rural and underserved areas of Minnesota. Managed care and county-based purchasing 
189.7 	plans delivering services under section 256B.69 or 256B.692, and any pharmacy benefit 
189.8 	managers under contract with these entities, must pay the directed pharmacy dispensing 
189.9 	payment to eligible outpatient retail pharmacies for drugs dispensed to medical assistance 
189.10 	enrollees. The directed pharmacy dispensing payment is in addition to, and must not supplant 
189.11 	or reduce, any other dispensing fee paid by these entities to the pharmacy. Entities paying 
189.12 	the directed pharmacy dispensing payment must not reduce other payments to the pharmacy 
189.13 	as a result of payment of the directed pharmacy dispensing payment.
189.14 	(b) For purposes of this subdivision, "eligible outpatient retail pharmacy" means an 
189.15 	outpatient retail pharmacy licensed under chapter 151 that is not owned, either directly or 
189.16 	indirectly or through an affiliate or subsidiary, by a pharmacy benefit manager licensed 
189.17 	under chapter 62W or a health carrier, as defined in section 62A.011, subdivision 2, and 
189.18 	that:
189.19 	(1) is located in a medically underserved area or primarily serves a medically underserved 
189.20 	population, as defined by the United States Department of Health and Human Services 
189.21 	Health Resources and Services Administration under United States Code, title 42, section 
189.22 	254; or
189.23 	(2) shares common ownership with 12 or fewer Minnesota pharmacies.
189.24 	(c) In order to receive the directed pharmacy dispensing payment, a pharmacy must 
189.25 	submit to the commissioner a form, developed by the commissioner, attesting that the 
189.26 	pharmacy meets the requirements of paragraph (b).
189.27 	(d) Managed care and county-based purchasing plans, and any pharmacy benefit managers 
189.28 	under contract with these entities, shall pay the directed pharmacy dispensing payment to 
189.29 	eligible outpatient retail pharmacies. The commissioner shall monitor the effect of this 
189.30 	requirement on access to pharmaceutical services in rural and underserved areas of 
189.31 	Minnesota. If, for any contract year, federal approval is not received for this subdivision, 
189.32 	the commissioner must adjust the capitation rates paid to managed care plans and 
189.33 	county-based purchasing plans for that contract year to reflect removal of this subdivision. 
189.34 	Contracts between managed care plans and county-based purchasing plans, and any pharmacy 
190.1 	benefit managers under contract with these entities, and providers to whom this subdivision 
190.2 	applies, must allow recovery of payments from those providers if capitation rates are adjusted 
190.3 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
190.4 	to any increase in rates that results from this subdivision. This subdivision expires if federal 
190.5 	approval is not received for this subdivision at any time.
190.6 	(e) This subdivision expires on December 31, 2026.

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

190.10 	Sec. 9. [256B.696] PRESCRIPTION DRUGS; STATE PHARMACY BENEFIT 
190.11 	MANAGER.
190.12 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
190.13 	the meanings given.
190.14 	(b) "Managed care plans" means health plans and county-based purchasing organizations 
190.15 	providing coverage to medical assistance and MinnesotaCare enrollees under the managed 
190.16 	care delivery system.
190.17 	(c) "Managed care enrollees" means medical assistance and MinnesotaCare enrollees 
190.18 	receiving coverage from managed care plans.
190.19 	(d) "State pharmacy benefit manager" means the pharmacy benefit manager selected 
190.20 	pursuant to the procurement process in subdivision 2.
190.21 		Subd. 2.Procurement process. (a) The commissioner must, through a competitive 
190.22 	procurement process in compliance with paragraph (b), select a single pharmacy benefit 
190.23 	manager to comply with the requirements set forth in subdivision 3. The single pharmacy 
190.24 	benefit manager selected under this subdivision must be a prepaid ambulatory health plan, 
190.25 	as defined in Code of Federal Regulations, title 42, section 438.2.
190.26 	(b) When selecting the single pharmacy benefit manager, the commissioner must:
190.27 	(1) accept applications for entities seeking to become the single pharmacy benefit 
190.28 	manager;
190.29 	(2) establish eligibility criteria an entity must meet in order to become the single pharmacy 
190.30 	benefit manager; and
190.31 	(3) enter into a master contract with a single pharmacy benefit manager.
191.1 	(c) The contract required under paragraph (b), clause (3), must include provisions that 
191.2 	prohibit the single pharmacy benefit manager from:
191.3 	(1) requiring, enticing, or coercing an enrollee to obtain pharmacy services, including 
191.4 	a prescription drug, from a pharmacy owned or otherwise affiliated with the single pharmacy 
191.5 	benefit manager;
191.6 	(2) communicating to an enrollee, in any manner, that the enrollee is required to obtain 
191.7 	pharmacy services or have a prescription dispensed at, or pharmacy services provided by, 
191.8 	a particular pharmacy owned or affiliated with the single pharmacy benefit manager if there 
191.9 	are other nonaffiliated pharmacies that have the ability to dispense the medication or provide 
191.10 	the services and are also in network;
191.11 	(3) requiring an enrollee to obtain pharmacy services, including a prescription drug, 
191.12 	exclusively through a mail order pharmacy;
191.13 	(4) directly or indirectly retroactively denying or reducing a claim or aggregate of claims 
191.14 	for pharmacy services, including prescription drugs, after adjudication of the claim or 
191.15 	aggregate of claims;
191.16 	(5) paying or reimbursing a pharmacy or pharmacist for the ingredient drug product 
191.17 	component of pharmacist services, including a prescription drug, less than the lesser of 
191.18 	national average drug acquisition cost; the Minnesota actual acquisition cost (MNAAC) as 
191.19 	defined in section 256B.0625, subdivision 13e, paragraph (i); or the maximum allowable 
191.20 	cost as defined in section 62W.08 of that pharmacy service or prescription drug, or, if the 
191.21 	national average drug acquisition cost is unavailable, the wholesale acquisition cost minus 
191.22 	two percent at the time the drug is administered or dispensed, plus a professional dispensing 
191.23 	fee equal to the amount of the dispensing fee if it were determined pursuant to section 
191.24 	256B.0625, subdivision 13e; and
191.25 	(6) denying a pharmacy or pharmacist the right to participate as a contract provider under 
191.26 	the health plan if the pharmacy or pharmacist agrees to provide pharmacy services, including 
191.27 	but not limited to prescription drugs that meet the terms and requirements set forth by the 
191.28 	health plan and agrees to the terms of reimbursement set forth by the health plan company.
191.29 	(d) Applicants for the single pharmacy benefit manager must disclose to the commissioner 
191.30 	the following during the procurement process:
191.31 	(1) any activity, policy, practice, contract, or arrangement of the single pharmacy benefit 
191.32 	manager that may directly or indirectly present any conflict of interest with the pharmacy 
192.1 	benefit manager's relationship with or obligation to the Department of Human Services, a 
192.2 	health plan company, or a county-based purchasing organization;
192.3 	(2) all common ownership, members of a board of directors, managers, or other control 
192.4 	of the pharmacy benefit manager or any of the pharmacy benefit manager's affiliated 
192.5 	companies with:
192.6 	(i) a health plan company administering medical assistance or MinnesotaCare benefits 
192.7 	in Minnesota or an affiliate of the health plan company;
192.8 	(ii) a county-based purchasing organization;
192.9 	(iii) an entity that contracts on behalf of a pharmacy or any pharmacy services 
192.10 	administration organization and its affiliates;
192.11 	(iv) a drug wholesaler or distributor and its affiliates;
192.12 	(v) a third-party payer and its affiliates; or
192.13 	(vi) a pharmacy and its affiliates;
192.14 	(3) any direct or indirect fees, charges, or any kind of assessments imposed by the 
192.15 	pharmacy benefit manager on pharmacies licensed in Minnesota with which the pharmacy 
192.16 	benefit manager shares common ownership, management, or control, or that are owned, 
192.17 	managed, or controlled by any of the pharmacy benefit manager's affiliated companies;
192.18 	(4) any direct or indirect fees, charges, or any kind of assessments imposed by the 
192.19 	pharmacy benefit manager on pharmacies licensed in Minnesota; and
192.20 	(5) any financial terms and arrangements between the pharmacy benefit manager and a 
192.21 	prescription drug manufacturer or labeler, including formulary management, drug substitution 
192.22 	programs, educational support claims processing, or data sales fees.
192.23 		Subd. 3.Drug coverage. (a) The commissioner may require the state pharmacy benefit 
192.24 	manager to modify utilization review limitations, requirements, and strategies imposed by 
192.25 	managed care plans on prescription drug coverage.
192.26 	(b) The state pharmacy benefit manager is responsible for processing all point of sale 
192.27 	outpatient pharmacy claims under the managed care delivery system. Managed care plans 
192.28 	must use the state pharmacy benefit manager pursuant to the terms of the master contract 
192.29 	required under subdivision 2, paragraph (b), clause (3). The pharmacy benefit manager 
192.30 	selected is the exclusive pharmacy benefit manager used by health plan companies and 
192.31 	county-based purchasing organizations when providing coverage to enrollees. The 
193.1 	commissioner may require the managed care plans and state pharmacy benefit manager to 
193.2 	directly exchange data and files for members enrolled with managed care plans.
193.3 	(c) All payment arrangements between the Department of Human Services, managed 
193.4 	care plans, and the state pharmacy benefit manager must comply with state and federal 
193.5 	statutes, regulations adopted by the Centers for Medicare and Medicaid Services, and any 
193.6 	other agreement between the department and the Centers for Medicare and Medicaid Services. 
193.7 	The commissioner may change a payment arrangement to comply with this paragraph.
193.8 	(d) The commissioner must administer and oversee this section to:
193.9 	(1) ensure proper administration of prescription drug benefits for managed care enrollees; 
193.10 	and
193.11 	(2) increase the transparency of prescription drug prices and other information for the 
193.12 	benefit of pharmacies.
193.13 		Subd. 4.Prescription drug disclosures. (a) The state pharmacy benefit manager must, 
193.14 	on request from the commissioner, disclose to the commissioner all sources of payment the 
193.15 	pharmacy benefit manager receives for prescribed drugs, including drug rebates, discounts, 
193.16 	credits, clawbacks, fees, grants, chargebacks, reimbursements, or other financial benefits 
193.17 	or payments related to services provided for a managed care plan.
193.18 	(b) Each managed care plan must disclose to the commissioner, in the format specified 
193.19 	by the commissioner, the entity's administrative costs associated with providing pharmacy 
193.20 	services under the managed care delivery system.
193.21 	(c) The state pharmacy benefit manager must provide a written quarterly report to the 
193.22 	commissioner containing the following information from the immediately preceding quarter:
193.23 	(1) the prices the state pharmacy benefit manager negotiated for prescribed drugs under 
193.24 	the managed care delivery system. The prices must include any rebates the state pharmacy 
193.25 	benefit manager received from the drug manufacturer;
193.26 	(2) unredacted copies of contracts between the state pharmacy benefit manager and 
193.27 	enrolled pharmacies;
193.28 	(3) any rebate amounts the state pharmacy benefit manager passed on to individual 
193.29 	pharmacies;
193.30 	(4) any changes to the information previously disclosed in accordance with subdivision 
193.31 	2, paragraph (d); and
193.32 	(5) any other information required by the commissioner.
194.1 	(d) The commissioner may request and collect additional information and clinical data 
194.2 	from the state pharmacy benefit manager.
194.3 	(e) At the time of contract execution, renewal, or modification, the commissioner must 
194.4 	modify the reporting requirements under its managed care contracts as necessary to meet 
194.5 	the requirements of this subdivision.
194.6 		Subd. 5.Program authority. (a) To accomplish the requirements of subdivision 3, 
194.7 	paragraph (d), the commissioner, in consultation with the Formulary Committee established 
194.8 	under section 256B.0625, subdivision 13c, has the authority to:
194.9 	(1) adopt or develop a preferred drug list for managed care plans;
194.10 	(2) at the commissioner's discretion, engage in price negotiations with prescription drug 
194.11 	manufacturers, wholesalers, or group purchasing organizations in place of the state pharmacy 
194.12 	benefit manager to obtain price discounts and rebates for prescription drugs for managed 
194.13 	care enrollees; and
194.14 	(3) develop and manage a drug formulary for managed care plans.
194.15 	(b) The commissioner may contract with one or more entities to perform any of the 
194.16 	functions described in paragraph (a).
194.17 		Subd. 6.Pharmacies. The commissioner may review contracts between the state 
194.18 	pharmacy benefit manager and pharmacies for compliance with this section and the master 
194.19 	contract required under subdivision 2, paragraph (b), clause (3). The commissioner may 
194.20 	amend any term or condition of a contract that does not comply with this section or the 
194.21 	master contract.
194.22 		Subd. 7.Federal approval. The commissioner must seek any necessary federal approvals 
194.23 	to implement this section.

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

195.1 	ARTICLE 6
195.2 	HUMAN SERVICES HEALTH CARE FINANCE

195.3 	Section 1. Minnesota Statutes 2024, section 62A.673, subdivision 2, is amended to read:
195.4 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
195.5 	have the meanings given.
195.6 	(b) "Distant site" means a site at which a health care provider is located while providing 
195.7 	health care services or consultations by means of telehealth.
195.8 	(c) "Health care provider" means a health care professional who is licensed or registered 
195.9 	by the state to perform health care services within the provider's scope of practice and in 
195.10 	accordance with state law. A health care provider includes a mental health professional 
195.11 	under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04, 
195.12 	subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator 
195.13 	under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11, 
195.14 	subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
195.15 	(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
195.16 	(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan 
195.17 	includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental 
195.18 	plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed 
195.19 	to pay benefits directly to the policy holder.
195.20 	(f) "Originating site" means a site at which a patient is located at the time health care 
195.21 	services are provided to the patient by means of telehealth. For purposes of store-and-forward 
195.22 	technology, the originating site also means the location at which a health care provider 
195.23 	transfers or transmits information to the distant site.
195.24 	(g) "Store-and-forward technology" means the asynchronous electronic transfer or 
195.25 	transmission of a patient's medical information or data from an originating site to a distant 
195.26 	site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
195.27 	(h) "Telehealth" means the delivery of health care services or consultations through the 
195.28 	use of real time two-way interactive audio and visual communications to provide or support 
195.29 	health care delivery and facilitate the assessment, diagnosis, consultation, treatment, 
195.30 	education, and care management of a patient's health care. Telehealth includes the application 
195.31 	of secure video conferencing, store-and-forward technology, and synchronous interactions 
195.32 	between a patient located at an originating site and a health care provider located at a distant 
195.33 	site. Until July 1, 2025 2028, telehealth also includes audio-only communication between 
196.1 	a health care provider and a patient in accordance with subdivision 6, paragraph (b) if the 
196.2 	communication is a scheduled appointment and the standard of care for that particular 
196.3 	service can be met through the use of audio-only communication or if, for substance use 
196.4 	disorder treatment services and mental health care services delivered through telehealth by 
196.5 	means of audio-only communication, the communication was initiated by the enrollee while 
196.6 	in an emergency or crisis situation and a scheduled appointment was not possible due to 
196.7 	the need of an immediate response. Telehealth does not include communication between 
196.8 	health care providers that consists solely of a telephone conversation, email, or facsimile 
196.9 	transmission. Telehealth does not include communication between a health care provider 
196.10 	and a patient that consists solely of an email or facsimile transmission. Telehealth does not 
196.11 	include telemonitoring services as defined in paragraph (i).
196.12 	(i) "Telemonitoring services" means the remote monitoring of clinical data related to 
196.13 	the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits 
196.14 	the data electronically to a health care provider for analysis. Telemonitoring is intended to 
196.15 	collect an enrollee's health-related data for the purpose of assisting a health care provider 
196.16 	in assessing and monitoring the enrollee's medical condition or status.

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

196.18 	Sec. 2. Minnesota Statutes 2024, section 62M.17, subdivision 2, is amended to read:
196.19 		Subd. 2.Effect of change in prior authorization clinical criteria. (a) If, during a plan 
196.20 	year, or a calendar year for fee-for-service providers under chapters 256B and 256L, a 
196.21 	utilization review organization changes coverage terms for a health care service or the 
196.22 	clinical criteria used to conduct prior authorizations for a health care service, the change in 
196.23 	coverage terms or change in clinical criteria shall not apply until the next plan year, or the 
196.24 	next calendar year for fee-for-service providers under chapters 256B and 256L, for any 
196.25 	enrollee who received prior authorization for a health care service using the coverage terms 
196.26 	or clinical criteria in effect before the effective date of the change.
196.27 	(b) Paragraph (a) does not apply if a utilization review organization changes coverage 
196.28 	terms for a drug or device that has been deemed unsafe by the United States Food and Drug 
196.29 	Administration (FDA); that has been withdrawn by either the FDA or the product 
196.30 	manufacturer; or when an independent source of research, clinical guidelines, or 
196.31 	evidence-based standards has issued drug- or device-specific warnings or recommended 
196.32 	changes in drug or device usage.
196.33 	(c) Paragraph (a) does not apply if a utilization review organization changes coverage 
196.34 	terms for a service or the clinical criteria used to conduct prior authorizations for a service 
197.1 	when an independent source of research, clinical guidelines, or evidence-based standards 
197.2 	has recommended changes in usage of the service for reasons related to patient harm. This 
197.3 	paragraph expires December 31, 2025, for health benefit plans offered, sold, issued, or 
197.4 	renewed on or after that date.
197.5 	(d) Effective January 1, 2026, and applicable to health benefit plans offered, sold, issued, 
197.6 	or renewed on or after that date, paragraph (a) does not apply if a utilization review 
197.7 	organization changes coverage terms for a service or the clinical criteria used to conduct 
197.8 	prior authorizations for a service when an independent source of research, clinical guidelines, 
197.9 	or evidence-based standards has recommended changes in usage of the service for reasons 
197.10 	related to previously unknown and imminent patient harm.
197.11 	(e) Paragraph (a) does not apply if a utilization review organization removes a brand 
197.12 	name drug from its formulary or places a brand name drug in a benefit category that increases 
197.13 	the enrollee's cost, provided the utilization review organization (1) adds to its formulary a 
197.14 	generic or multisource brand name drug rated as therapeutically equivalent according to 
197.15 	the FDA Orange Book, or a biologic drug rated as interchangeable according to the FDA 
197.16 	Purple Book, at a lower cost to the enrollee, and (2) provides at least a 60-day notice to 
197.17 	prescribers, pharmacists, and affected enrollees.

197.18 	Sec. 3. Minnesota Statutes 2024, section 256.9657, is amended by adding a subdivision 
197.19 	to read:
197.20 		Subd. 2b.Hospital assessment. (a) For purposes of this subdivision, the following terms 
197.21 	have the meanings given:
197.22 	(1) "eligible hospital" means a hospital licensed under section 144.50 and located in 
197.23 	Minnesota;
197.24 	(2) "net outpatient revenue" means the value reflecting total outpatient revenue less 
197.25 	Medicare revenue as calculated from Worksheet G of the hospital's most recent Medicare 
197.26 	cost report filed and showing in the Healthcare Cost Report Information System (HCRIS) 
197.27 	as of August 1 of each year; and
197.28 	(3) "total patient days" means the value reflecting total hospital inpatient days as reported 
197.29 	on Worksheet S-3 of the hospital's most recent Medicare cost report filed and showing in 
197.30 	HCRIS as of August 1 of each year.
197.31 	(b) Subject to paragraphs (k) to (n), each eligible hospital must pay to the hospital directed 
197.32 	payment program account assessments in an aggregate annual amount equal to the sum of 
197.33 	the following:
198.1 	(1) $120.22 multiplied by total patient days; and
198.2 	(2) 5.96 percent of the hospital's net outpatient revenue.
198.3 	(c) The assessment amount for calendar years 2026 and 2027 must be based on the total 
198.4 	patient days and net outpatient revenue in 2021 for each eligible hospital.
198.5 	(d) The commissioner may, after consultation with the Minnesota Hospital Association, 
198.6 	modify the rates of assessment in paragraph (b) as necessary to comply with federal law, 
198.7 	obtain or maintain a waiver under Code of Federal Regulations, title 42, section 433.72, or 
198.8 	to otherwise maximize under this section federal financial participation for medical assistance. 
198.9 	Notwithstanding the foregoing authorization to maximize federal financial participation for 
198.10 	medical assistance, the commissioner must reduce the rates of assessment in paragraph (b) 
198.11 	as necessary to ensure:
198.12 	(1) the state's aggregated health care-related taxes on inpatient hospital services do not 
198.13 	exceed five percent of the net patient revenue attributable to those services; and
198.14 	(2) the state's aggregated health care-related taxes on outpatient hospital services do not 
198.15 	exceed five percent of the net patient revenue attributable to those services.
198.16 	(e) Eligible hospitals must pay the annual assessment amount under paragraph (b) to the 
198.17 	commissioner by paying four equal quarterly assessments. Eligible hospitals must pay the 
198.18 	quarterly assessments by January 1, April 1, July 1, and October 1 each year. Eligible 
198.19 	hospitals must pay the assessments in the form and manner specified by the commissioner. 
198.20 	An eligible hospital is prohibited from paying a quarterly assessment until the eligible 
198.21 	hospital has received the applicable invoice under paragraph (f). The commissioner may 
198.22 	make the assessment retroactive to the first quarter for which federal approval is effective.
198.23 	(f) The commissioner must provide eligible hospitals with an invoice by December 1 
198.24 	for the assessment due January 1, March 1 for the assessment due April 1, June 1 for the 
198.25 	assessment due July 1, and September 1 for the assessment due October 1 each year.
198.26 	(g) The commissioner must notify each eligible hospital of its estimated annual assessment 
198.27 	amount for the subsequent calendar year by October 15 each year.
198.28 	(h) If any of the dates for assessments or invoices in paragraphs (e) to (g) fall on a 
198.29 	holiday, the applicable date is the next business day.
198.30 	(i) A hospital is not required to pay an assessment under this subdivision until the start 
198.31 	of the first full fiscal year the hospital is an eligible hospital. A hospital that has merged 
198.32 	with another hospital must have the hospital's assessment revised at the start of the first full 
199.1 	fiscal year after the merger is complete. A closed hospital is retroactively responsible for 
199.2 	assessments owed for services provided through the final date of operations.
199.3 	(j) If the commissioner determines that a hospital has underpaid or overpaid an 
199.4 	assessment, the commissioner must notify the hospital of the unpaid assessment or of any 
199.5 	refund due.
199.6 	(k) Revenue from an assessment under this subdivision must only be used by the 
199.7 	commissioner to pay the nonfederal share of the directed payment program under section 
199.8 	256B.1974.
199.9 	(l) The commissioner is prohibited from collecting any assessment under this subdivision 
199.10 	during any period of time when:
199.11 	(1) federal financial participation is unavailable, disallowed, or reduced by at least 15 
199.12 	percent relative to the state's share of medical assistance as of April 1, 2025; or
199.13 	(2) a directed payment under section 256B.1974 is not approved by the Centers for 
199.14 	Medicare and Medicaid Services.
199.15 	(m) The commissioner must make the following discounts from the inpatient portion of 
199.16 	the assessment under paragraph (b), clause (1), in the stated amount or as necessary to 
199.17 	achieve federal approval of the assessment in this section:
199.18 	(1) for Hennepin Healthcare, a discount of 25 percent off the inpatient portion of the 
199.19 	assessment rate;
199.20 	(2) for Mayo Rochester, a discount of ten percent off the inpatient portion of the 
199.21 	assessment rate; and
199.22 	(3) for Gillette Children's Hospital, a discount of 90 percent off the inpatient portion of 
199.23 	the assessment rate.
199.24 	(n) The commissioner must make the following discounts from the outpatient portion 
199.25 	of the assessment under paragraph (b), clause (2), in the stated amount or as necessary to 
199.26 	achieve federal approval of the assessment in this section:
199.27 	(1) for each critical access hospital or independent hospital located outside a city of the 
199.28 	first class and paid under the Medicare prospective payment system, a discount of 40 percent 
199.29 	off the outpatient portion of the assessment rate;
199.30 	(2) for Gillette Children's Hospital, a discount of 90 percent off the outpatient portion 
199.31 	of the assessment rate;
200.1 	(3) for Hennepin Healthcare, a discount of 60 percent off the outpatient portion of the 
200.2 	assessment rate; and
200.3 	(4) for Mayo Rochester, a discount of 20 percent off the outpatient portion of the 
200.4 	assessment rate.
200.5 	(o) The commissioner must fully exempt the following from the assessment in this 
200.6 	section:
200.7 	(1) federal Indian Health Service facilities;
200.8 	(2) state-owned or state-operated regional treatment centers and all state-operated services;
200.9 	(3) federal Veterans Administration Medical Centers; and
200.10 	(4) long-term acute care hospitals.
200.11 	(p) If the federal share of the hospital directed payment program under section 256B.1974 
200.12 	is increased as the result of an increase to the federal medical assistance percentage, then 
200.13 	the commissioner must reduce the assessment on a uniform percentage basis across eligible 
200.14 	hospitals on which the assessment is imposed, such that the aggregate amount collected 
200.15 	from hospitals under this subdivision does not exceed the total amount needed to maintain 
200.16 	the same aggregate state and federal funding level for the directed payments authorized by 
200.17 	section 256B.1974.
200.18 	(q) Hospitals subject to the assessment under this subdivision must submit to the 
200.19 	commissioner on an annual basis, in the form and manner specified by the commissioner 
200.20 	in consultation with the Minnesota Hospital Association, all documentation necessary to 
200.21 	determine the assessment amounts under this subdivision.
200.22 	(r) Any disproportionate share hospital payments that are supplanted due to the 
200.23 	implementation of the hospital directed payment program under section 256B.1974 must 
200.24 	be redirected into the hospital directed payment program as an offset to the assessment 
200.25 	under this section owed by all medical assistance disproportionate share hospitals as defined 
200.26 	in section 256.969, subdivision 9, and reduce their assessments on a uniform basis.
200.27 	(s) Any future state funding sources identified and used toward the hospital directed 
200.28 	payment program under section 256B.1974 may be used to offset the assessment under this 
200.29 	section.

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

201.4 	Sec. 4. Minnesota Statutes 2024, section 256.969, subdivision 2b, is amended to read:
201.5 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
201.6 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
201.7 	to the following:
201.8 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
201.9 	methodology;
201.10 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
201.11 	under subdivision 25;
201.12 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
201.13 	distinct parts as defined by Medicare shall be paid according to the methodology under 
201.14 	subdivision 12; and
201.15 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
201.16 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
201.17 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
201.18 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
201.19 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
201.20 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
201.21 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
201.22 	period as other hospitals.
201.23 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
201.24 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
201.25 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
201.26 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
201.27 	manner similar to Medicare. The base year or years for the rates effective November 1, 
201.28 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
201.29 	ensuring that the total aggregate payments under the rebased system are equal to the total 
201.30 	aggregate payments that were made for the same number and types of services in the base 
201.31 	year. Separate budget neutrality calculations shall be determined for payments made to 
201.32 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
201.33 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
202.1 	rebased during the entire base period shall be incorporated into the budget neutrality 
202.2 	calculation.
202.3 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
202.4 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
202.5 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
202.6 	a five percent increase or decrease from the base year payments for any hospital. Any 
202.7 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
202.8 	shall maintain budget neutrality as described in paragraph (c).
202.9 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
202.10 	additional adjustments to the rebased rates, and when evaluating whether additional 
202.11 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
202.12 	following:
202.13 	(1) pediatric services;
202.14 	(2) behavioral health services;
202.15 	(3) trauma services as defined by the National Uniform Billing Committee;
202.16 	(4) transplant services;
202.17 	(5) obstetric services, newborn services, and behavioral health services provided by 
202.18 	hospitals outside the seven-county metropolitan area;
202.19 	(6) outlier admissions;
202.20 	(7) low-volume providers; and
202.21 	(8) services provided by small rural hospitals that are not critical access hospitals.
202.22 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
202.23 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
202.24 	admission is standardized by the applicable Medicare wage index and adjusted by the 
202.25 	hospital's disproportionate population adjustment;
202.26 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
202.27 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
202.28 	October 31, 2014;
202.29 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
202.30 	inpatient services covered by medical assistance; and
203.1 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
203.2 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
203.3 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
203.4 	program in effect during the base year or years. In determining hospital payment rates for 
203.5 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
203.6 	methods and allowable costs of the Medicare program in effect during the base year or 
203.7 	years.
203.8 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
203.9 	the rates established under paragraph (c), and any adjustments made to the rates under 
203.10 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
203.11 	total aggregate payments for the same number and types of services under the rebased rates 
203.12 	are equal to the total aggregate payments made during calendar year 2013.
203.13 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
203.14 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
203.15 	in hospital costs between the existing base year or years and the next base year or years. In 
203.16 	any year that inpatient claims volume falls below the threshold required to ensure a 
203.17 	statistically valid sample of claims, the commissioner may combine claims data from two 
203.18 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
203.19 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
203.20 	a base year or part of a base year if the base year includes more than one year. Changes in 
203.21 	costs between base years shall be measured using the lower of the hospital cost index defined 
203.22 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
203.23 	claim. The commissioner shall establish the base year for each rebasing period considering 
203.24 	the most recent year or years for which filed Medicare cost reports are available, except 
203.25 	that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019. 
203.26 	The estimated change in the average payment per hospital discharge resulting from a 
203.27 	scheduled rebasing must be calculated and made available to the legislature by January 15 
203.28 	of each year in which rebasing is scheduled to occur, and must include by hospital the 
203.29 	differential in payment rates compared to the individual hospital's costs.
203.30 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
203.31 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
203.32 	using a new cost-based methodology. The commissioner shall establish within the 
203.33 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
203.34 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
203.35 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
204.1 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
204.2 	decrease from the base year payments for any hospital, except a hospital that had payments 
204.3 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
204.4 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
204.5 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
204.6 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
204.7 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
204.8 	following criteria:
204.9 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
204.10 	shall have a rate set that equals 85 percent of their base year costs;
204.11 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
204.12 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
204.13 	base year costs; and
204.14 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
204.15 	shall have a rate set that equals 100 percent of their base year costs.
204.16 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
204.17 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
204.18 	methodology may include, but are not limited to:
204.19 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
204.20 	hospital's charges to the medical assistance program;
204.21 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
204.22 	hospital's payments received from the medical assistance program for the care of medical 
204.23 	assistance patients;
204.24 	(3) the ratio between the hospital's charges to the medical assistance program and the 
204.25 	hospital's payments received from the medical assistance program for the care of medical 
204.26 	assistance patients;
204.27 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
204.28 	(5) the proportion of that hospital's costs that are administrative and trends in 
204.29 	administrative costs; and
204.30 	(6) geographic location.
204.31 	(k) Subject to subdivision 2g, effective for discharges occurring on or after January 1, 
204.32 	2024, the rates paid to hospitals described in paragraph (a), clauses (2) to (4), must include 
205.1 	a rate factor specific to each hospital that qualifies for a medical education and research 
205.2 	cost distribution under section 62J.692, subdivision 4, paragraph (a).
205.3 	(l) Effective for discharges occurring on or after January 1, 2028, or on or after the date 
205.4 	of federal approval, whichever is later, the commissioner must increase:
205.5 	(1) payments for inpatient behavioral health services provided by hospitals paid under 
205.6 	the DRG methodology by increasing the adjustment for behavioral health services under 
205.7 	section 256.969, subdivision 2b, paragraph (e); and
205.8 	(2) capitation payments made to managed care plans and county-based purchasing plans 
205.9 	to reflect the rate increase provided under this paragraph. Managed care and county-based 
205.10 	purchasing plans must use the capitation rate increase provided under this clause to increase 
205.11 	payment rates for inpatient behavioral health services provided by hospitals paid under the 
205.12 	DRG methodology. The commissioner must monitor the effect of this rate increase on 
205.13 	enrollee access to behavioral health services. If for any contract year federal approval is not 
205.14 	received for this clause, the commissioner must adjust the capitation rates paid to managed 
205.15 	care plans and county-based purchasing plans for that contract year to reflect the removal 
205.16 	of this clause. Contracts between managed care plans and county-based purchasing plans 
205.17 	and providers to whom this paragraph applies must allow recovery of payments from those 
205.18 	providers if capitation rates are adjusted in accordance with this clause. Payment recoveries 
205.19 	must not exceed the amount equal to any increase in rates that results from this paragraph.

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

205.21 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 3b, is amended to read:
205.22 		Subd. 3b.Telehealth services. (a) Medical assistance covers medically necessary services 
205.23 	and consultations delivered by a health care provider through telehealth in the same manner 
205.24 	as if the service or consultation was delivered through in-person contact. Services or 
205.25 	consultations delivered through telehealth shall be paid at the full allowable rate.
205.26 	(b) The commissioner may establish criteria that a health care provider must attest to in 
205.27 	order to demonstrate the safety or efficacy of delivering a particular service through 
205.28 	telehealth. The attestation may include that the health care provider:
205.29 	(1) has identified the categories or types of services the health care provider will provide 
205.30 	through telehealth;
205.31 	(2) has written policies and procedures specific to services delivered through telehealth 
205.32 	that are regularly reviewed and updated;
206.1 	(3) has policies and procedures that adequately address patient safety before, during, 
206.2 	and after the service is delivered through telehealth;
206.3 	(4) has established protocols addressing how and when to discontinue telehealth services; 
206.4 	and
206.5 	(5) has an established quality assurance process related to delivering services through 
206.6 	telehealth.
206.7 	(c) As a condition of payment, a licensed health care provider must document each 
206.8 	occurrence of a health service delivered through telehealth to a medical assistance enrollee. 
206.9 	Health care service records for services delivered through telehealth must meet the 
206.10 	requirements set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and must 
206.11 	document:
206.12 	(1) the type of service delivered through telehealth;
206.13 	(2) the time the service began and the time the service ended, including an a.m. and p.m. 
206.14 	designation;
206.15 	(3) the health care provider's basis for determining that telehealth is an appropriate and 
206.16 	effective means for delivering the service to the enrollee;
206.17 	(4) the mode of transmission used to deliver the service through telehealth and records 
206.18 	evidencing that a particular mode of transmission was utilized;
206.19 	(5) the location of the originating site and the distant site;
206.20 	(6) if the claim for payment is based on a physician's consultation with another physician 
206.21 	through telehealth, the written opinion from the consulting physician providing the telehealth 
206.22 	consultation; and
206.23 	(7) compliance with the criteria attested to by the health care provider in accordance 
206.24 	with paragraph (b).
206.25 	(d) Telehealth visits provided through audio and visual communication or accessible 
206.26 	video-based platforms may be used to satisfy the face-to-face requirement for reimbursement 
206.27 	under the payment methods that apply to a federally qualified health center, rural health 
206.28 	clinic, Indian health service, 638 tribal clinic, and certified community behavioral health 
206.29 	clinic, if the service would have otherwise qualified for payment if performed in person.
206.30 	(e) For purposes of this subdivision, unless otherwise covered under this chapter:
206.31 	(1) "telehealth" means the delivery of health care services or consultations using real-time 
206.32 	two-way interactive audio and visual communication or accessible telehealth video-based 
207.1 	platforms to provide or support health care delivery and facilitate the assessment, diagnosis, 
207.2 	consultation, treatment, education, and care management of a patient's health care. Telehealth 
207.3 	includes: the application of secure video conferencing consisting of a real-time, full-motion 
207.4 	synchronized video; store-and-forward technology; and synchronous interactions, between 
207.5 	a patient located at an originating site and a health care provider located at a distant site. 
207.6 	Telehealth does not include communication between health care providers, or between a 
207.7 	health care provider and a patient that consists solely of an audio-only communication, 
207.8 	email, or facsimile transmission or as specified by law, except that from July 1, 2025, to 
207.9 	July 1, 2028, telehealth includes communication between a health care provider and a patient 
207.10 	that solely consists of audio-only communication;
207.11 	(2) "health care provider" means a health care provider as defined under section 62A.673; 
207.12 	a community paramedic as defined under section 144E.001, subdivision 5f; a community 
207.13 	health worker who meets the criteria under subdivision 49, paragraph (a); a mental health 
207.14 	certified peer specialist under section 245I.04, subdivision 10; a mental health certified 
207.15 	family peer specialist under section 245I.04, subdivision 12; a mental health rehabilitation 
207.16 	worker under section 245I.04, subdivision 14; a mental health behavioral aide under section 
207.17 	245I.04, subdivision 16; a treatment coordinator under section 245G.11, subdivision 7; an 
207.18 	alcohol and drug counselor under section 245G.11, subdivision 5; or a recovery peer under 
207.19 	section 245G.11, subdivision 8; and
207.20 	(3) "originating site," "distant site," and "store-and-forward technology" have the 
207.21 	meanings given in section 62A.673, subdivision 2.

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

207.25 	Sec. 6. Minnesota Statutes 2024, section 256B.0625, subdivision 17a, is amended to read:
207.26 		Subd. 17a.Payment for ambulance services. (a) Medical assistance covers ambulance 
207.27 	services. Providers shall bill ambulance services according to Medicare criteria. 
207.28 	Nonemergency ambulance services shall not be paid as emergencies. Effective for services 
207.29 	rendered on or after July 1, 2001, medical assistance payments for ambulance services shall 
207.30 	be paid at the Medicare reimbursement rate or at the medical assistance payment rate in 
207.31 	effect on July 1, 2000, whichever is greater.
207.32 	(b) Effective for services provided on or after July 1, 2016, medical assistance payment 
207.33 	rates for ambulance services identified in this paragraph are increased by five percent. 
207.34 	Capitation payments made to managed care plans and county-based purchasing plans for 
208.1 	ambulance services provided on or after January 1, 2017, shall be increased to reflect this 
208.2 	rate increase. The increased rate described in this paragraph applies to ambulance service 
208.3 	providers whose base of operations as defined in section 144E.10 is located:
208.4 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
208.5 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
208.6 	(2) within a municipality with a population of less than 1,000.
208.7 	(c) Effective for services provided statewide on or after January 1, 2026, medical 
208.8 	assistance payment rates for ambulance services are increased by 15 percent. Capitation 
208.9 	payments made to managed care plans and county-based purchasing plans for ambulance 
208.10 	services provided on or after January 1, 2026, must be increased to reflect this rate increase.
208.11 	(d) Effective for services provided on or after January 1, 2026, medical assistance 
208.12 	payment rates for ambulance services identified in this paragraph are increased by ten 
208.13 	percent. Capitation payments made to managed care plans and county-based purchasing 
208.14 	plans for ambulance services provided on or after January 1, 2026, must be increased to 
208.15 	reflect this rate increase. The increased rate described in this paragraph applies to ambulance 
208.16 	service providers whose base of operations, as defined in section 144E.001, is located:
208.17 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
208.18 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
208.19 	(2) within a municipality with a population of less than 1,000.
208.20 	(c) (e) Effective for the first day of each calendar quarter in which the price of gasoline 
208.21 	as posted publicly by the United States Energy Information Administration exceeds $3.00 
208.22 	per gallon, the commissioner shall adjust the rate paid per mile in paragraph (a) by one 
208.23 	percent up or down for every increase or decrease of ten cents for the price of gasoline. The 
208.24 	increase or decrease must be calculated using a base gasoline price of $3.00. The percentage 
208.25 	increase or decrease must be calculated using the average of the most recently available 
208.26 	price of all grades of gasoline for Minnesota as posted publicly by the United States Energy 
208.27 	Information Administration.
208.28 	(d) (f) Managed care plans and county-based purchasing plans must provide a fuel 
208.29 	adjustment for ambulance services rates when fuel exceeds $3 per gallon. If, for any contract 
208.30 	year, federal approval is not received for this paragraph, the commissioner must adjust the 
208.31 	capitation rates paid to managed care plans and county-based purchasing plans for that 
208.32 	contract year to reflect the removal of this provision. Contracts between managed care plans 
208.33 	and county-based purchasing plans and providers to whom this paragraph applies must 
209.1 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
209.2 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
209.3 	in rates that results from this paragraph. This paragraph expires if federal approval is not 
209.4 	received for this paragraph at any time.

209.5 	Sec. 7. Minnesota Statutes 2024, section 256B.0625, subdivision 25c, is amended to read:
209.6 		Subd. 25c.Applicability of utilization review provisions. (a) Effective January 1, 
209.7 	2026, the following provisions of chapter 62M apply to the commissioner when delivering 
209.8 	services under chapters 256B and 256L: 62M.02, subdivisions 1 to 5, 7 to 12, 13, 14 to 18, 
209.9 	and 21; 62M.04; 62M.05, subdivisions 1 to 4; 62M.06, subdivisions 1 to 3; 62M.07; 
209.10 	62M.072; 62M.09; 62M.10; 62M.12; and 62M.17, subdivision 2; and 62M.18.
209.11 	(b) By April 1, 2026, and each April 1 thereafter, managed care plans and county-based 
209.12 	purchasing plans when the plan is providing coverage to enrollees under chapter 256B or 
209.13 	256L, and the commissioner when delivering services under chapters 256B and 256L, must 
209.14 	post on the entity's public website the following data for the immediately preceding calendar 
209.15 	year for each health plan or program:
209.16 	(1) the number of prior authorization requests for which an authorization was issued;
209.17 	(2) the number of prior authorization requests for which an adverse determination was 
209.18 	issued and sorted by:
209.19 	(i) health care service;
209.20 	(ii) whether the adverse determination was appealed; and
209.21 	(iii) whether the adverse determination was upheld or reversed on appeal;
209.22 	(3) the number of prior authorization requests that were submitted electronically and 
209.23 	not by facsimile or email or other method pursuant to section 62J.497; and
209.24 	(4) the reasons for prior authorization denial, including but not limited to:
209.25 	(i) the patient did not meet prior authorization criteria;
209.26 	(ii) the provider submitted incomplete information to the utilization review organization;
209.27 	(iii) a change in treatment program; and
209.28 	(iv) the patient is no longer covered by the plan or program.
209.29 	(c) All information posted under paragraph (b) must be written in easily understandable 
209.30 	language.

210.1 	Sec. 8. Minnesota Statutes 2024, section 256B.0625, subdivision 30, is amended to read:
210.2 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic services, 
210.3 	federally qualified health center services, nonprofit community health clinic services, and 
210.4 	public health clinic services. Rural health clinic services and federally qualified health center 
210.5 	services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and 
210.6 	(C). Payment for rural health clinic and federally qualified health center services shall be 
210.7 	made according to applicable federal law and regulation.
210.8 	(b) A federally qualified health center (FQHC) that is beginning initial operation shall 
210.9 	submit an estimate of budgeted costs and visits for the initial reporting period in the form 
210.10 	and detail required by the commissioner. An FQHC that is already in operation shall submit 
210.11 	an initial report using actual costs and visits for the initial reporting period. Within 90 days 
210.12 	of the end of its reporting period, an FQHC shall submit, in the form and detail required by 
210.13 	the commissioner, a report of its operations, including allowable costs actually incurred for 
210.14 	the period and the actual number of visits for services furnished during the period, and other 
210.15 	information required by the commissioner. FQHCs that file Medicare cost reports shall 
210.16 	provide the commissioner with a copy of the most recent Medicare cost report filed with 
210.17 	the Medicare program intermediary for the reporting year which support the costs claimed 
210.18 	on their cost report to the state.
210.19 	(c) In order to continue cost-based payment under the medical assistance program 
210.20 	according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation 
210.21 	as an essential community provider within six months of final adoption of rules by the 
210.22 	Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and 
210.23 	rural health clinics that have applied for essential community provider status within the 
210.24 	six-month time prescribed, medical assistance payments will continue to be made according 
210.25 	to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural 
210.26 	health clinics that either do not apply within the time specified above or who have had 
210.27 	essential community provider status for three years, medical assistance payments for health 
210.28 	services provided by these entities shall be according to the same rates and conditions 
210.29 	applicable to the same service provided by health care providers that are not FQHCs or rural 
210.30 	health clinics.
210.31 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural 
210.32 	health clinic to make application for an essential community provider designation in order 
210.33 	to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
211.1 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall 
211.2 	be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
211.3 	(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health 
211.4 	clinic may elect to be paid either under the prospective payment system established in United 
211.5 	States Code, title 42, section 1396a(aa), or under an alternative payment methodology 
211.6 	consistent with the requirements of United States Code, title 42, section 1396a(aa), and 
211.7 	approved by the Centers for Medicare and Medicaid Services. The alternative payment 
211.8 	methodology shall be 100 percent of cost as determined according to Medicare cost 
211.9 	principles.
211.10 	(g) Effective for services provided on or after January 1, 2021, all claims for payment 
211.11 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
211.12 	commissioner, according to an annual election by the FQHC or rural health clinic, under 
211.13 	the current prospective payment system described in paragraph (f) or the alternative payment 
211.14 	methodology described in paragraph (l), or, upon federal approval, for FQHCs that are also 
211.15 	urban Indian organizations under Title V of the federal Indian Health Improvement Act, as 
211.16 	provided under paragraph (k).
211.17 	(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
211.18 	(1) has nonprofit status as specified in chapter 317A;
211.19 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
211.20 	(3) is established to provide health services to low-income population groups, uninsured, 
211.21 	high-risk and special needs populations, underserved and other special needs populations;
211.22 	(4) employs professional staff at least one-half of which are familiar with the cultural 
211.23 	background of their clients;
211.24 	(5) charges for services on a sliding fee scale designed to provide assistance to 
211.25 	low-income clients based on current poverty income guidelines and family size; and
211.26 	(6) does not restrict access or services because of a client's financial limitations or public 
211.27 	assistance status and provides no-cost care as needed.
211.28 	(i) Effective for services provided on or after January 1, 2015, all claims for payment 
211.29 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
211.30 	commissioner. the commissioner shall determine the most feasible method for paying claims 
211.31 	from the following options:
212.1 	(1) FQHCs and rural health clinics submit claims directly to the commissioner for 
212.2 	payment, and the commissioner provides claims information for recipients enrolled in a 
212.3 	managed care or county-based purchasing plan to the plan, on a regular basis; or
212.4 	(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed 
212.5 	care or county-based purchasing plan to the plan, and those claims are submitted by the 
212.6 	plan to the commissioner for payment to the clinic.
212.7 	(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate 
212.8 	and pay monthly the proposed managed care supplemental payments to clinics, and clinics 
212.9 	shall conduct a timely review of the payment calculation data in order to finalize all 
212.10 	supplemental payments in accordance with federal law. Any issues arising from a clinic's 
212.11 	review must be reported to the commissioner by January 1, 2017. Upon final agreement 
212.12 	between the commissioner and a clinic on issues identified under this subdivision, and in 
212.13 	accordance with United States Code, title 42, section 1396a(bb), no supplemental payments 
212.14 	for managed care plan or county-based purchasing plan claims for services provided prior 
212.15 	to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are 
212.16 	unable to resolve issues under this subdivision, the parties shall submit the dispute to the 
212.17 	arbitration process under section 14.57.
212.18 	(k) The commissioner shall establish an encounter payment rate that is equivalent to the 
212.19 	all inclusive rate (AIR) payment established by the Indian Health Service and published in 
212.20 	the Federal Register. The encounter rate must be updated annually and must reflect the 
212.21 	changes in the AIR established by the Indian Health Service each calendar year. FQHCs 
212.22 	that are also urban Indian organizations under Title V of the federal Indian Health 
212.23 	Improvement Act may elect to be paid: (1) at the encounter rate established under this 
212.24 	paragraph; (2) under the alternative payment methodology described in paragraph (l); or 
212.25 	(3) under the federally required prospective payment system described in paragraph (f). 
212.26 	FQHCs that elect to be paid at the encounter rate established under this paragraph must 
212.27 	continue to meet all state and federal requirements related to FQHCs and urban Indian 
212.28 	organizations, and must maintain their statuses as FQHCs and urban Indian organizations.
212.29 	(l) All claims for payment of clinic services provided by FQHCs and rural health clinics, 
212.30 	that have elected to be paid under this paragraph, shall be paid by the commissioner according 
212.31 	to the following requirements:
212.32 	(1) the commissioner shall establish a single medical and single dental organization 
212.33 	encounter rate for each FQHC and rural health clinic when applicable;
213.1 	(2) each FQHC and rural health clinic is eligible for same day reimbursement of one 
213.2 	medical and one dental organization encounter rate if eligible medical and dental visits are 
213.3 	provided on the same day;
213.4 	(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance 
213.5 	with current applicable Medicare cost principles, their allowable costs, including direct 
213.6 	patient care costs and patient-related support services. Nonallowable costs include, but are 
213.7 	not limited to:
213.8 	(i) general social services and administrative costs;
213.9 	(ii) retail pharmacy;
213.10 	(iii) patient incentives, food, housing assistance, and utility assistance;
213.11 	(iv) external lab and x-ray;
213.12 	(v) navigation services;
213.13 	(vi) health care taxes;
213.14 	(vii) advertising, public relations, and marketing;
213.15 	(viii) office entertainment costs, food, alcohol, and gifts;
213.16 	(ix) contributions and donations;
213.17 	(x) bad debts or losses on awards or contracts;
213.18 	(xi) fines, penalties, damages, or other settlements;
213.19 	(xii) fundraising, investment management, and associated administrative costs;
213.20 	(xiii) research and associated administrative costs;
213.21 	(xiv) nonpaid workers;
213.22 	(xv) lobbying;
213.23 	(xvi) scholarships and student aid; and
213.24 	(xvii) nonmedical assistance covered services;
213.25 	(4) the commissioner shall review the list of nonallowable costs in the years between 
213.26 	the rebasing process established in clause (5), in consultation with the Minnesota Association 
213.27 	of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall 
213.28 	publish the list and any updates in the Minnesota health care programs provider manual;
214.1 	(5) the initial applicable base year organization encounter rates for FQHCs and rural 
214.2 	health clinics shall be computed for services delivered on or after January 1, 2021, and:
214.3 	(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports 
214.4 	from 2017 and 2018;
214.5 	(ii) must be according to current applicable Medicare cost principles as applicable to 
214.6 	FQHCs and rural health clinics without the application of productivity screens and upper 
214.7 	payment limits or the Medicare prospective payment system FQHC aggregate mean upper 
214.8 	payment limit;
214.9 	(iii) must be subsequently rebased every two years thereafter using the Medicare cost 
214.10 	reports that are three and four years prior to the rebasing year. Years in which organizational 
214.11 	cost or claims volume is reduced or altered due to a pandemic, disease, or other public health 
214.12 	emergency shall not be used as part of a base year when the base year includes more than 
214.13 	one year. The commissioner may use the Medicare cost reports of a year unaffected by a 
214.14 	pandemic, disease, or other public health emergency, or previous two consecutive years, 
214.15 	inflated to the base year as established under item (iv);
214.16 	(iv) must be inflated to the base year using the inflation factor described in clause (6); 
214.17 	and
214.18 	(v) the commissioner must provide for a 60-day appeals process under section 14.57;
214.19 	(6) the commissioner shall annually inflate the applicable organization encounter rates 
214.20 	for FQHCs and rural health clinics from the base year payment rate to the effective date by 
214.21 	using the CMS FQHC Market Basket inflator established under United States Code, title 
214.22 	42, section 1395m(o), less productivity;
214.23 	(7) FQHCs and rural health clinics that have elected the alternative payment methodology 
214.24 	under this paragraph shall submit all necessary documentation required by the commissioner 
214.25 	to compute the rebased organization encounter rates no later than six months following the 
214.26 	date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid 
214.27 	Services;
214.28 	(8) the commissioner shall reimburse FQHCs and rural health clinics an additional 
214.29 	amount relative to their medical and dental organization encounter rates that is attributable 
214.30 	to the tax required to be paid according to section 295.52, if applicable;
214.31 	(9) FQHCs and rural health clinics may submit change of scope requests to the 
214.32 	commissioner if the change of scope would result in an increase or decrease of 2.5 percent 
215.1 	or higher in the medical or dental organization encounter rate currently received by the 
215.2 	FQHC or rural health clinic;
215.3 	(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner 
215.4 	under clause (9) that requires the approval of the scope change by the federal Health 
215.5 	Resources Services Administration:
215.6 	(i) FQHCs and rural health clinics shall submit the change of scope request, including 
215.7 	the start date of services, to the commissioner within seven business days of submission of 
215.8 	the scope change to the federal Health Resources Services Administration;
215.9 	(ii) the commissioner shall establish the effective date of the payment change as the 
215.10 	federal Health Resources Services Administration date of approval of the FQHC's or rural 
215.11 	health clinic's scope change request, or the effective start date of services, whichever is 
215.12 	later; and
215.13 	(iii) within 45 days of one year after the effective date established in item (ii), the 
215.14 	commissioner shall conduct a retroactive review to determine if the actual costs established 
215.15 	under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in 
215.16 	the medical or dental organization encounter rate, and if this is the case, the commissioner 
215.17 	shall revise the rate accordingly and shall adjust payments retrospectively to the effective 
215.18 	date established in item (ii);
215.19 	(11) for change of scope requests that do not require federal Health Resources Services 
215.20 	Administration approval, the FQHC and rural health clinic shall submit the request to the 
215.21 	commissioner before implementing the change, and the effective date of the change is the 
215.22 	date the commissioner received the FQHC's or rural health clinic's request, or the effective 
215.23 	start date of the service, whichever is later. The commissioner shall provide a response to 
215.24 	the FQHC's or rural health clinic's request within 45 days of submission and provide a final 
215.25 	approval within 120 days of submission. This timeline may be waived at the mutual 
215.26 	agreement of the commissioner and the FQHC or rural health clinic if more information is 
215.27 	needed to evaluate the request;
215.28 	(12) the commissioner, when establishing organization encounter rates for new FQHCs 
215.29 	and rural health clinics, shall consider the patient caseload of existing FQHCs and rural 
215.30 	health clinics in a 60-mile radius for organizations established outside of the seven-county 
215.31 	metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan 
215.32 	area. If this information is not available, the commissioner may use Medicare cost reports 
215.33 	or audited financial statements to establish base rates;
216.1 	(13) the commissioner, when establishing organization encounter rates under this section 
216.2 	for FQHCs and rural health clinics resulting from a merger of existing clinics or the 
216.3 	acquisition of an existing clinic by another existing clinic, must use the combined costs and 
216.4 	caseloads from the clinics participating in the merger or acquisition to set the encounter rate 
216.5 	for the new clinic organization resulting from the merger or acquisition. The scope of services 
216.6 	for the newly formed clinic must be inclusive of the scope of services of the clinics 
216.7 	participating in the merger or acquisition;
216.8 	(13) (14) the commissioner shall establish a quality measures workgroup that includes 
216.9 	representatives from the Minnesota Association of Community Health Centers, FQHCs, 
216.10 	and rural health clinics, to evaluate clinical and nonclinical measures; and
216.11 	(14) (15) the commissioner shall not disallow or reduce costs that are related to an 
216.12 	FQHC's or rural health clinic's participation in health care educational programs to the extent 
216.13 	that the costs are not accounted for in the alternative payment methodology encounter rate 
216.14 	established in this paragraph.
216.15 	(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health 
216.16 	center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC. 
216.17 	Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to 
216.18 	a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to 
216.19 	comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish 
216.20 	an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses 
216.21 	the same method and rates applicable to a Tribal facility or health center that does not enroll 
216.22 	as a Tribal FQHC.
216.23 	(n) FQHC reimbursement for mental health targeted case management services is limited 
216.24 	to:
216.25 	(1) only those services described under section 256B.0625, subdivision 20, and provided 
216.26 	in accordance with contracts executed with counties authorized to subcontract for mental 
216.27 	health targeted case management services; and
216.28 	(2) an FQHC's actual incurred costs as separately reported on the cost report submitted 
216.29 	to the Centers for Medicare and Medicaid Services and further identified in reports submitted 
216.30 	to the commissioner.
216.31 	(o) Counties contracting with FQHCs for mental health targeted case management remain 
216.32 	responsible for the nonfederal share of the cost of the provided mental health targeted case 
216.33 	management services. The commissioner must bill each county for the nonfederal share of 
216.34 	the mental health targeted case management costs as reported by the FQHC.

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

217.2 	Sec. 9. Minnesota Statutes 2024, section 256B.0625, subdivision 54, is amended to read:
217.3 		Subd. 54.Services provided in birth centers. (a) Medical assistance covers services 
217.4 	provided in a licensed birth center by a licensed health professional if the service would 
217.5 	otherwise be covered if provided in a hospital.
217.6 	(b) Facility services provided by a birth center shall be paid at the lower of billed charges 
217.7 	or 70 100 percent of the statewide average for a facility payment rate made to a hospital
217.8 	hospital facility fee cost trended to current for an uncomplicated vaginal birth as determined 
217.9 	using the most recent calendar year for which complete claims data is available. If a recipient 
217.10 	is transported from a birth center to a hospital prior to the delivery, the payment for facility 
217.11 	services to the birth center shall be the lower of billed charges or 15 100 percent of the 
217.12 	average hospital facility payment made to a hospital for the services provided fee cost 
217.13 	trended to current for an uncomplicated vaginal delivery as determined using the most recent 
217.14 	calendar year for which complete claims data is available.
217.15 	(c) Nursery care Facility services provided to a newborn by a birth center shall be paid 
217.16 	the lower of billed charges or 70 at 100 percent of the statewide average for a payment rate 
217.17 	paid to a hospital for nursery care as determined by using the most recent calendar year for 
217.18 	which complete claims data is available the hospital facility fee for a normal newborn as 
217.19 	determined using the most recent calendar year for which complete claims data is available, 
217.20 	cost trended to current.
217.21 	(d) Professional services provided by traditional midwives licensed under chapter 147D 
217.22 	shall be paid at the lower of billed charges or 100 percent of the rate paid to a physician 
217.23 	performing the same services. If a recipient is transported from a birth center to a hospital 
217.24 	prior to the delivery, a licensed traditional midwife who does not perform the delivery may 
217.25 	not bill for any delivery services. Services are not covered if provided by an unlicensed 
217.26 	traditional midwife.
217.27 	(e) Licensed health professionals working in licensed birth centers shall be reimbursed 
217.28 	for the full range of maternity care and newborn care services within their scope of practice, 
217.29 	regardless of place of service. The commissioner shall review current birth center 
217.30 	reimbursement and, in consultation with birth centers currently licensed in the state, develop 
217.31 	revisions to current payment practices in order to ensure reimbursement for the full range 
217.32 	of maternity care and newborn care services, including but not limited to:
218.1 	(1) professional services for intrapartum care when a recipient is transferred from a birth 
218.2 	center to a hospital prior to delivery;
218.3 	(2) professional services billed with a home place of service code by a licensed health 
218.4 	professional within their scope of practice;
218.5 	(3) professional services when a licensed health professional provides any Minnesota 
218.6 	mandated newborn screening, including but not limited to the newborn metabolic screen, 
218.7 	CCHD screening, hearing screen, or any other medically necessary newborn screening, test, 
218.8 	or assessment; and
218.9 	(4) telehealth services provided by any licensed health professional working in a birth 
218.10 	center.
218.11 	(f) Managed care organizations and county-based purchasing plans contracted to provide 
218.12 	medical assistance coverage under section 256B.69 shall reimburse licensed birth centers 
218.13 	and licensed health professionals working in licensed birth centers for the full range of 
218.14 	maternity care services within their scope of practice, regardless of place of service, as 
218.15 	determined in paragraph (e) at no less than the medical assistance fee for service fee schedule 
218.16 	for the year in which the service is provided.
218.17 	(e) (g) The commissioner shall apply for any necessary waivers from the Centers for 
218.18 	Medicare and Medicaid Services to allow birth centers and birth center providers to be 
218.19 	reimbursed.

218.20 	Sec. 10. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
218.21 	to read:
218.22 		Subd. 54a.Home birth. (a) For purposes of this subdivision, the following terms have 
218.23 	the meanings given:
218.24 	(1) "birth services" means prenatal, labor, birth, and postpartum services;
218.25 	(2) "eligible provider" means a licensed or certified health care professional eligible for 
218.26 	reimbursement under the medical assistance program; and
218.27 	(3) "low-risk patient for birth services" means a person undergoing a normal, 
218.28 	uncomplicated prenatal course as determined by documentation of adequate prenatal care 
218.29 	who anticipates a normal, uncomplicated labor and birth, as defined by reasonable and 
218.30 	generally accepted criteria adopted by professional groups for maternal, fetal, and neonatal 
218.31 	health care.
219.1 	(b) Medical assistance covers birth services provided at home when the following 
219.2 	conditions are met:
219.3 	(1) the birth services are provided by an eligible provider whose scope of practice and 
219.4 	experience includes home birth;
219.5 	(2) the recipient is a low-risk patient for birth services; and
219.6 	(3) the recipient has a plan of care that includes:
219.7 	(i) a consent form detailing the risks and benefits of home birth signed by the recipient;
219.8 	(ii) sufficient visits, test results, and follow-up consultations as needed to establish that 
219.9 	the recipient is a low-risk patient for birth services; and
219.10 	(iii) a plan for transfer to a hospital as needed.
219.11 	(c) Services provided under this subdivision by an eligible provider must be paid at a 
219.12 	rate at least equal to 100 percent of the rate paid to a physician performing the same services. 
219.13 	An eligible provider who does not perform the delivery must not bill for any delivery 
219.14 	services.
219.15 	(d) Supplies used for birth services under this subdivision must be paid at 70 percent of 
219.16 	the statewide average for a facility payment rate made to a hospital for an uncomplicated 
219.17 	vaginal delivery as determined using the most recent calendar year for which complete 
219.18 	claims data are available. If a recipient is transported from a home to a hospital prior to the 
219.19 	delivery, the payment for the supplies used for birth services under this subdivision must 
219.20 	be the lower of billed charges or 15 percent of the statewide average for a facility payment 
219.21 	rate made to a hospital for the services provided for an uncomplicated vaginal delivery as 
219.22 	determined using the most recent calendar year for which complete claims data are available.

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

219.26 	Sec. 11. Minnesota Statutes 2024, section 256B.0757, subdivision 5, is amended to read:
219.27 		Subd. 5.Payments. (a) The commissioner shall make payments to each designated 
219.28 	provider for the provision of health home services described in subdivision 3 to each eligible 
219.29 	individual under subdivision 2 that selects the health home as a provider. This paragraph 
219.30 	expires on the date that paragraph (b) becomes effective.
219.31 	(b) Effective January 1, 2028, or upon federal approval, whichever is later, the 
219.32 	commissioner shall make payments to each designated provider for the provision of health 
220.1 	home services described in subdivision 3, except for behavioral health services, to each 
220.2 	eligible individual under subdivision 2 who selects the health home as a provider.

220.3 	Sec. 12. Minnesota Statutes 2024, section 256B.0757, is amended by adding a subdivision 
220.4 	to read:
220.5 		Subd. 5a.Payments for behavioral health home services. (a) Notwithstanding 
220.6 	subdivision 5, the commissioner must implement a single statewide reimbursement rate for 
220.7 	behavioral health home services under this section. The rate must be no less than $425 per 
220.8 	member per month. The commissioner must adjust the reimbursement rate for behavioral 
220.9 	health home services annually according to the change from the midpoint of the previous 
220.10 	rate year to the midpoint of the rate year for which the rate is being determined using the 
220.11 	Centers for Medicare and Medicaid Services Medicare Economic Index as forecasted in 
220.12 	the fourth quarter of the calendar year before the rate year.
220.13 	(b) The commissioner must review and update the behavioral health home services rate 
220.14 	under paragraph (a) at least every four years. The updated rate must account for the average 
220.15 	hours required for behavioral health home team members spent providing services and the 
220.16 	Department of Labor prevailing wage for required behavioral health home team members. 
220.17 	The updated rate must ensure that behavioral health home services rates are sufficient to 
220.18 	allow providers to meet required certifications, training, and practice transformation 
220.19 	standards; staff qualification requirements; and service delivery standards.
220.20 	(c) Managed care plans and county-based purchasing plans must reimburse providers 
220.21 	at an amount that is at least equal to the fee-for-service rate for services under this 
220.22 	subdivision. The commissioner must monitor the effect of this rate increase on enrollee 
220.23 	access to services under this subdivision. If for any contract year federal approval is not 
220.24 	received for this paragraph, the commissioner must adjust the capitation rates paid to managed 
220.25 	care plans and county-based purchasing plans for that contract year to reflect the removal 
220.26 	of this paragraph. Contracts between managed care plans and county-based purchasing 
220.27 	plans and providers to whom this paragraph applies must allow recovery of payments from 
220.28 	those providers if capitation rates are adjusted in accordance with this paragraph. Payment 
220.29 	recoveries must not exceed the amount equal to any increase in rates that results from this 
220.30 	paragraph.
220.31 	(d) This subdivision is effective January 1, 2028, or upon federal approval, whichever 
220.32 	is later.

221.1 	Sec. 13. Minnesota Statutes 2024, section 256B.1973, is amended by adding a subdivision 
221.2 	to read:
221.3 		Subd. 9.Interaction with other directed payments. An eligible provider under 
221.4 	subdivision 3 may participate in the hospital directed payment program under section 
221.5 	256B.1974 for inpatient hospital services, outpatient hospital services, or both. A provider 
221.6 	participating in the hospital directed payment program must not receive a directed payment 
221.7 	under this section for any provider classes paid via the hospital directed payment program. 
221.8 	A hospital subject to this section must notify the commissioner in writing no later than 30 
221.9 	days after enactment of this subdivision of its intention to participate in the hospital directed 
221.10 	payment program under section 256B.1974 for inpatient hospital services, outpatient hospital 
221.11 	services, or both. The election under this subdivision is a onetime election, except that if 
221.12 	an eligible provider elects to participate in the hospital directed payment program, and the 
221.13 	hospital directed payment program expires, then the eligible provider may thereafter elect 
221.14 	to participate in the directed payment program under this section.

221.15 	EFFECTIVE DATE. (a) This section is effective on the later of January 1, 2026, or 
221.16 	federal approval of all of the following:
221.17 	(1) this section;
221.18 	(2) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
221.19 	2b; and
221.20 	(3) the amendments in this act to Minnesota Statutes, section 256B.1974.
221.21 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
221.22 	approval for all amendments set forth in paragraph (a) is obtained.

221.23 	Sec. 14. [256B.1974] HOSPITAL DIRECTED PAYMENT PROGRAM.
221.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
221.25 	the meanings given.
221.26 	(b) "Health plan" means a managed care plan or county-based purchasing plan that is 
221.27 	under contract with the commissioner to deliver services to medical assistance enrollees 
221.28 	under section 256B.69.
221.29 	(c) "Hospital" means a hospital licensed under section 144.50.
221.30 		Subd. 2.Required conditions for program. The hospital directed payment program is 
221.31 	contingent on the satisfaction of all requirements necessary for the collection of an assessment 
222.1 	under section 256.9657, and must conform with the requirements for permissible directed 
222.2 	managed care organization expenditures under section 256B.6928, subdivision 5.
222.3 		Subd. 3.Commissioner's duties; state-directed fee schedule requirement. (a) For 
222.4 	each federally approved directed payment program that is a state-directed fee schedule 
222.5 	requirement that includes a quarterly payment amount to be submitted by each health plan 
222.6 	to each hospital, the commissioner must determine the quarterly payment amount using the 
222.7 	average commercial payer rate, or using another method acceptable to the Centers for 
222.8 	Medicare and Medicaid Services if the average commercial payer rate is not approved. The 
222.9 	commissioner must ensure that the application of the quarterly payment amounts maximizes 
222.10 	the amount generated by the hospital assessment in section 256.9657, subdivision 2b, for 
222.11 	allowable directed payments and does not result in payments exceeding federal limits.
222.12 	(b) The commissioner must use an annual settle-up process that occurs within the time 
222.13 	period allowed for medical assistance managed care claims adjustments.
222.14 	(c) On and after January 1, 2028, if the federal regulations set forth in Code of Federal 
222.15 	Regulations, title 42, parts 430, 438, and 457, remain effective, the hospital directed payment 
222.16 	program must be specific to each health plan and prospectively incorporated into capitation 
222.17 	payments for that plan.
222.18 	(d) For each federally approved directed payment program that is a state-directed fee 
222.19 	schedule requirement, the commissioner must develop a plan for the initial implementation 
222.20 	of the state-directed fee schedule requirement to ensure that hospitals receive the entire 
222.21 	permissible value of the federally approved directed payment. If federal approval of a 
222.22 	directed payment under this subdivision is retroactive, the commissioner must make a 
222.23 	onetime pro rata increase to the quarterly payment amount and the initial payments to include 
222.24 	claims submitted between the retroactive federal approval date and the period captured by 
222.25 	the initial payments.
222.26 	(e) Directed payments under this section must only be used to supplement, and not 
222.27 	supplant, medical assistance reimbursement to hospitals. The directed payment program 
222.28 	must not modify, reduce, or offset the medical assistance payment rates determined for each 
222.29 	hospital as required by section 256.969.
222.30 	(f) The commissioner must require health plans to make quarterly directed payments 
222.31 	according to this section.
222.32 	(g) Health plans must make quarterly directed payments using electronic funds transfers, 
222.33 	if the hospital provides the information necessary to process such transfers, and in accordance 
223.1 	with directions provided by the commissioner. Health plans must make quarterly directed 
223.2 	payments:
223.3 	(1) for the first two quarters for which such payments are due, within 30 calendar days 
223.4 	of the date the commissioner issued sufficient payments to the health plan to make the 
223.5 	directed payments according to this section; and
223.6 	(2) for all subsequent quarters, within ten calendar days of the date the commissioner 
223.7 	issued sufficient payments to the health plan to make the directed payments according to 
223.8 	this section.
223.9 	(h) The commissioner must publish on the Department of Human Services' website, on 
223.10 	a quarterly basis, the dates that the health plans completed their required quarterly payments 
223.11 	under this section.
223.12 	(i) Payments to health plans that would be paid consistent with actuarial certification 
223.13 	and enrollment in the absence of the increased capitation payments under this section must 
223.14 	not be reduced as a result of this section.
223.15 	(j) The commissioner must publish all directed payments owed to each hospital from 
223.16 	each health plan on the department's website for at least two years. All calculations and 
223.17 	reports must be posted no later than the first day of the quarter for which the payments are 
223.18 	to be issued.
223.19 	(k) By December 1 each year, the commissioner must notify each hospital of any changes 
223.20 	to the payment methodologies in this section, including but not limited to changes in the 
223.21 	directed payment rates, the aggregate directed payment amount for all hospitals, and the 
223.22 	hospital's directed payment amount for the upcoming calendar year.
223.23 	(l) The commissioner must distribute payments required under this section for each 
223.24 	hospital within 30 days of a quarterly assessment under section 256.9657, subdivision 2b, 
223.25 	being received. The commissioner must pay the directed payments to health plans under 
223.26 	contract no later than January 1, April 1, July 1, and October 1 each year.
223.27 	(m) A hospital is not entitled to payments under this section until the start of the first 
223.28 	full fiscal year it is an eligible hospital. A hospital that has merged with another hospital 
223.29 	must have its payments under this section revised at the start of the first full fiscal year after 
223.30 	the merger is complete. A closed hospital is entitled to the payments under this section for 
223.31 	services provided through the final date of operations.
223.32 		Subd. 4.Health plan duties; submission of claims. Each health plan must submit to 
223.33 	the commissioner, in accordance with its contract with the commissioner to serve as a 
224.1 	managed care organization in medical assistance, payment information for each claim paid 
224.2 	to a hospital for services provided to a medical assistance enrollee. Health plans must allow 
224.3 	each hospital to review the health plan's own paid claims detail to enable proper validation 
224.4 	that the medical assistance managed care claims volume and content is consistent with the 
224.5 	hospital's internal records. To support the validation process for the directed payment 
224.6 	program, health plans must permit the commissioner to share inpatient and outpatient 
224.7 	claims-level details with hospitals identifying only those claims where the prepaid medical 
224.8 	assistance program under section 256B.69 is the payer source. Hospitals must provide notice 
224.9 	of discrepancies in claims paid to the commissioner in a form determined by the 
224.10 	commissioner. The commissioner is authorized to determine the final disposition of the 
224.11 	validation process for disputed claims.
224.12 		Subd. 5.Health plan duties; directed payment add-on. (a) Each health plan must 
224.13 	make, in accordance with its contract with the commissioner to serve as a managed care 
224.14 	organization in medical assistance, a directed payment to each hospital. The amount of the 
224.15 	directed payment to the hospital must be equal to the payment amounts the plan received 
224.16 	from the commissioner for the hospital.
224.17 	(b) Health plans are prohibited from:
224.18 	(1) setting, establishing, or negotiating reimbursement rates with a hospital in a manner 
224.19 	that directly or indirectly takes into account a directed payment that a hospital receives 
224.20 	under this section;
224.21 	(2) unnecessarily delaying a directed payment to a hospital; or
224.22 	(3) recouping or offsetting a directed payment for any reason, except as expressly 
224.23 	authorized by the commissioner.
224.24 		Subd. 6.Hospital duties; quarterly supplemental directed payment add-on. (a) A 
224.25 	hospital receiving a directed payment under this section is prohibited from:
224.26 	(1) setting, establishing, or negotiating reimbursement rates with a managed care 
224.27 	organization in a manner that directly or indirectly takes into account a directed payment 
224.28 	that a hospital receives under this section; or
224.29 	(2) directly passing on the cost of an assessment to patients or nonmedical assistance 
224.30 	payers, including as a fee or rate increase.
224.31 	(b) A hospital that violates this subdivision is prohibited from receiving a directed 
224.32 	payment under this section for the remainder of the rate year. This subdivision does not 
224.33 	prohibit a hospital from negotiating with a payer for a rate increase.
225.1 	(c) Any hospital receiving a directed payment under this section must meet the 
225.2 	commissioner's standards for directed payments as described in subdivision 7.
225.3 		Subd. 7.State minimum policy goals established. (a) The effect of the directed 
225.4 	payments under this section must align with the state's policy goals for medical assistance 
225.5 	enrollees. The directed payments must be used to maintain quality and access to a full range 
225.6 	of health care delivery mechanisms for medical assistance enrollees, and specifically provide 
225.7 	improvement for one of the following quality measures:
225.8 	(1) overall well child visit rates;
225.9 	(2) maternal depression screening rates; or
225.10 	(3) colon cancer screening rates.
225.11 	(b) The commissioner, in consultation with the Minnesota Hospital Association, must 
225.12 	submit to the Centers for Medicare and Medicaid Services quality measures performance 
225.13 	evaluation criteria and a methodology to regularly measure access to care and the 
225.14 	achievement of state policy goals described in this subdivision.
225.15 	(c) The quality measures evaluation data, as determined by paragraph (b), must be 
225.16 	reported to the Centers for Medicare and Medicaid Services after at least 12 months of 
225.17 	directed payments to hospitals.
225.18 		Subd. 8.Administrative review. Before making the payments required under this 
225.19 	section, and on at least an annual basis, the commissioner must consult with and provide 
225.20 	for review of the payment amounts by a permanent select committee established by the 
225.21 	Minnesota Hospital Association. Any data or information reviewed by members of the 
225.22 	committee are data not on individuals, as defined in section 13.02. The committee's members 
225.23 	must not include any current employee or paid consultant of any hospital.

225.24 	EFFECTIVE DATE. (a) This section is effective the later of January 1, 2026, or federal 
225.25 	approval for all of the following:
225.26 	(1) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
225.27 	2b; and
225.28 	(2) the amendments in this act to this section.
225.29 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
225.30 	approval for all amendments set forth in paragraph (a) is obtained.

226.1 	Sec. 15. [256B.1975] HOSPITAL DIRECTED PAYMENT PROGRAM ACCOUNT.
226.2 		Subdivision 1.Account established; appropriation. (a) The hospital directed payment 
226.3 	program account is created in the special revenue fund in the state treasury.
226.4 	(b) Money in the account, including interest earned, is annually appropriated to the 
226.5 	commissioner for the purposes specified in section 256B.1974.
226.6 	(c) Transfers from this account to another fund are prohibited, except as necessary to 
226.7 	make the payments required under section 256B.1974.
226.8 		Subd. 2.Reports to the legislature. By January 15, 2027, and each January 15 thereafter, 
226.9 	the commissioner must submit a report to the chairs and ranking minority members of the 
226.10 	legislative committees with jurisdiction over health and human services policy and finance 
226.11 	that details the activities and uses of money in the hospital directed payment program 
226.12 	account, including the metrics and outcomes of the policy goals established by section 
226.13 	256B.1974, subdivision 7.

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

226.18 	Sec. 16. Minnesota Statutes 2024, section 256B.76, subdivision 1, is amended to read:
226.19 		Subdivision 1.Physician and professional services Reimbursement adjustments.  (a) 
226.20 	Effective for services rendered on or after October 1, 1992, the commissioner shall make 
226.21 	payments for physician services as follows:
226.22 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
226.23 	procedural coding system codes titled "office and other outpatient services," "preventive 
226.24 	medicine new and established patient," "delivery, antepartum, and postpartum care," "critical 
226.25 	care," cesarean delivery and pharmacologic management provided to psychiatric patients, 
226.26 	and level three codes for enhanced services for prenatal high risk, shall be paid at the lower 
226.27 	of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
226.28 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
226.29 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
226.30 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
226.31 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
227.1 	except that payment rates for home health agency services shall be the rates in effect on 
227.2 	September 30, 1992.
227.3 	(b) Effective for services rendered on or after January 1, 2000, payment rates for physician 
227.4 	and professional services shall be increased by three percent over the rates in effect on 
227.5 	December 31, 1999, except for home health agency and family planning agency services. 
227.6 	The increases in this paragraph shall be implemented January 1, 2000, for managed care.
227.7 	(c) Effective for services rendered on or after July 1, 2009, payment rates for physician 
227.8 	and professional services shall be reduced by five percent, except that for the period July 
227.9 	1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical 
227.10 	assistance and general assistance medical care programs, over the rates in effect on June 
227.11 	30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other 
227.12 	outpatient visits, preventive medicine visits and family planning visits billed by physicians, 
227.13 	advanced practice registered nurses, or physician assistants in a family planning agency or 
227.14 	in one of the following primary care practices: general practice, general internal medicine, 
227.15 	general pediatrics, general geriatrics, and family medicine. This reduction and the reductions 
227.16 	in paragraph (d) do not apply to federally qualified health centers, rural health centers, and 
227.17 	Indian health services. Effective October 1, 2009, payments made to managed care plans 
227.18 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
227.19 	reflect the payment reduction described in this paragraph.
227.20 	(d) Effective for services rendered on or after July 1, 2010, payment rates for physician 
227.21 	and professional services shall be reduced an additional seven percent over the five percent 
227.22 	reduction in rates described in paragraph (c). This additional reduction does not apply to 
227.23 	physical therapy services, occupational therapy services, and speech pathology and related 
227.24 	services provided on or after July 1, 2010. This additional reduction does not apply to 
227.25 	physician services billed by a psychiatrist or an advanced practice registered nurse with a 
227.26 	specialty in mental health. Effective October 1, 2010, payments made to managed care plans 
227.27 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
227.28 	reflect the payment reduction described in this paragraph.
227.29 	(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013, 
227.30 	payment rates for physician and professional services shall be reduced three percent from 
227.31 	the rates in effect on August 31, 2011. This reduction does not apply to physical therapy 
227.32 	services, occupational therapy services, and speech pathology and related services.
227.33 	(f) Effective for services rendered on or after September 1, 2014, payment rates for 
227.34 	physician and professional services, including physical therapy, occupational therapy, speech 
228.1 	pathology, and mental health services shall be increased by five percent from the rates in 
228.2 	effect on August 31, 2014. In calculating this rate increase, the commissioner shall not 
228.3 	include in the base rate for August 31, 2014, the rate increase provided under section 
228.4 	256B.76, subdivision 7. This increase does not apply to federally qualified health centers, 
228.5 	rural health centers, and Indian health services. Payments made to managed care plans and 
228.6 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
228.7 	(g) (a) Effective for services rendered on or after July 1, 2015, payment rates for physical 
228.8 	therapy, occupational therapy, and speech pathology and related services provided by a 
228.9 	hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause 
228.10 	(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments 
228.11 	made to managed care plans and county-based purchasing plans shall not be adjusted to 
228.12 	reflect payments under this paragraph.
228.13 	(h) (b) Any ratables effective before July 1, 2015, do not apply to early intensive 
228.14 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
228.15 	(i) (c) The commissioner may reimburse physicians and other licensed professionals for 
228.16 	costs incurred to pay the fee for testing newborns who are medical assistance enrollees for 
228.17 	heritable and congenital disorders under section 144.125, subdivision 1, paragraph (c), when 
228.18 	the sample is collected outside of an inpatient hospital or freestanding birth center and the 
228.19 	cost is not recognized by another payment source.

228.20 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval 
228.21 	of the amendments in this act to Minnesota Statutes, sections 256B.76, subdivision 6, and 
228.22 	256B.768, whichever is later. The commissioner of human services shall notify the revisor 
228.23 	of statutes when federal approval is obtained.

228.24 	Sec. 17. Minnesota Statutes 2024, section 256B.76, subdivision 6, is amended to read:
228.25 		Subd. 6.Medicare relative value units.  (a) Effective for services rendered on or after 
228.26 	January 1, 2007, the commissioner shall make payments for physician and professional 
228.27 	services based on the Medicare relative value units (RVUs). This change shall be budget 
228.28 	neutral and the cost of implementing RVUs will be incorporated in the established conversion 
228.29 	factor. This paragraph expires on the date that paragraph (b) becomes effective.
228.30 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
228.31 	for services rendered on or after January 1, 2007, the commissioner must make payments 
228.32 	for physician and professional services based on the Medicare relative value units (RVUs).
229.1 	(b) (c) Effective for services rendered on or after January 1, 2025, rates for mental health 
229.2 	services reimbursed under the resource-based relative value scale (RBRVS) must be equal 
229.3 	to 83 percent of the Medicare Physician Fee Schedule. This paragraph expires on the date 
229.4 	that section 256B.768 becomes effective.
229.5 	(c) (d) Effective for services rendered on or after January 1, 2025, the commissioner 
229.6 	shall increase capitation payments made to managed care plans and county-based purchasing 
229.7 	plans to reflect the rate increases provided under this subdivision. Managed care plans and 
229.8 	county-based purchasing plans must use the capitation rate increase provided under this 
229.9 	paragraph to increase payment rates to the providers corresponding to the rate increases. 
229.10 	The commissioner must monitor the effect of this rate increase on enrollee access to services 
229.11 	under this subdivision. If for any contract year federal approval is not received for this 
229.12 	paragraph, the commissioner must adjust the capitation rates paid to managed care plans 
229.13 	and county-based purchasing plans for that contract year to reflect the removal of this 
229.14 	paragraph. Contracts between managed care plans and county-based purchasing plans and 
229.15 	providers to whom this paragraph applies must allow recovery of payments from those 
229.16 	providers if capitation rates are adjusted in accordance with this paragraph. Payment 
229.17 	recoveries must not exceed the amount equal to any increase in rates that results from this 
229.18 	paragraph. This paragraph expires on the date that section 256B.768 becomes effective.

229.19 	Sec. 18. Minnesota Statutes 2024, section 256B.761, is amended to read:
229.20 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
229.21 		Subdivision 1.Rates effective 2026. (a) Effective for services rendered on or after July 
229.22 	1, 2001, payment for medication management provided to psychiatric patients, outpatient 
229.23 	mental health services, day treatment services, home-based mental health services, and 
229.24 	family community support services shall be paid at the lower of (1) submitted charges, or 
229.25 	(2) 75.6 percent of the 50th percentile of 1999 charges.
229.26 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
229.27 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
229.28 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
229.29 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
229.30 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
229.31 	those services are provided within the comprehensive outpatient rehabilitation facility and 
229.32 	provided to residents of nursing facilities owned by the entity.
229.33 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
229.34 	coverage policy and rates to improve access to adult rehabilitative mental health services 
230.1 	under section 256B.0623 and related mental health support services under section 256B.021, 
230.2 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
230.3 	state share of increased costs due to this paragraph is transferred from adult mental health 
230.4 	grants under sections 245.4661 and 256K.10. The transfer for fiscal year 2016 is a permanent 
230.5 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
230.6 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
230.7 	the rate changes described in this paragraph.
230.8 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
230.9 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
230.10 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
230.11 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
230.12 	Session chapter 7, article 17, section 18, except for adult day treatment services under section 
230.13 	256B.0671, subdivision 3; early intensive developmental and behavioral intervention services 
230.14 	under section 256B.0949; and substance use disorder services under chapter 254B, must be 
230.15 	increased by three percent from the rates in effect on December 31, 2023. Effective for 
230.16 	services rendered on or after January 1, 2025, payment rates for behavioral health services 
230.17 	included in the rate analysis required by Laws 2021, First Special Session chapter 7, article 
230.18 	17, section 18; early intensive developmental behavioral intervention services under section 
230.19 	256B.0949; and substance use disorder services under chapter 254B, must be annually 
230.20 	adjusted according to the change from the midpoint of the previous rate year to the midpoint 
230.21 	of the rate year for which the rate is being determined using the Centers for Medicare and 
230.22 	Medicaid Services Medicare Economic Index as forecasted in the fourth quarter of the 
230.23 	calendar year before the rate year. For payments made in accordance with this paragraph, 
230.24 	if and to the extent that the commissioner identifies that the state has received federal 
230.25 	financial participation for behavioral health services in excess of the amount allowed under 
230.26 	United States Code, title 42, section 447.321, the state shall repay the excess amount to the 
230.27 	Centers for Medicare and Medicaid Services with state money and maintain the full payment 
230.28 	rate under this paragraph. This paragraph does not apply to federally qualified health centers, 
230.29 	rural health centers, Indian health services, certified community behavioral health clinics, 
230.30 	cost-based rates, and rates that are negotiated with the county. This paragraph expires upon 
230.31 	legislative implementation of the new rate methodology resulting from the rate analysis 
230.32 	required by Laws 2021, First Special Session chapter 7, article 17, section 18.
230.33 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
230.34 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
230.35 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
231.1 	plans must use the capitation rate increase provided under this paragraph to increase payment 
231.2 	rates to behavioral health services providers. The commissioner must monitor the effect of 
231.3 	this rate increase on enrollee access to behavioral health services. If for any contract year 
231.4 	federal approval is not received for this paragraph, the commissioner must adjust the 
231.5 	capitation rates paid to managed care plans and county-based purchasing plans for that 
231.6 	contract year to reflect the removal of this provision. Contracts between managed care plans 
231.7 	and county-based purchasing plans and providers to whom this paragraph applies must 
231.8 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
231.9 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
231.10 	in rates that results from this provision.
231.11 	(a) Effective for services rendered on or after January 1, 2026, the commissioner must 
231.12 	establish market-based payment rates for the following services:
231.13 	(1) children's therapeutic services and supports under section 256B.0943;
231.14 	(2) child and family psychoeducation services under section 256B.0671, subdivision 5;
231.15 	(3) clinical care consultation services under section 256B.0671, subdivision 7; and
231.16 	(4) mental health certified family peer specialist services under section 256B.0616.
231.17 	(b) Rates established under paragraph (a) must not be lower than:
231.18 	(1) the payment rates recommended in the rate analysis required by Laws 2021, First 
231.19 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
231.20 	Services on January 22, 2024; or
231.21 	(2) the payment rates in effect on December 31, 2025.
231.22 		Subd. 2.Rates effective 2027.  (a) Effective for services rendered on or after January 1, 
231.23 	2027, the commissioner must establish market-based payment rates for the following services:
231.24 	(1) adult day treatment services under section 256B.0671, subdivision 3;
231.25 	(2) adult rehabilitative mental health services under section 256B.0623;
231.26 	(3) adult mental health peer support specialist services under section 256B.0615;
231.27 	(4) dialectical behavioral therapy under section 256B.0671, subdivision 6;
231.28 	(5) explanation of findings under section 256B.0671, subdivision 4;
231.29 	(6) mental health crisis response services under section 256B.0624;
231.30 	(7) mental health provider travel time under section 256B.0625, subdivision 43;
232.1 	(8) neuropsychological testing under section 256B.0671, subdivision 9;
232.2 	(9) partial hospitalization services under section 256B.0671, subdivision 12; and
232.3 	(10) psychotherapy services under section 256B.0671, subdivision 11, incorporating 
232.4 	biofeedback.
232.5 	(b) Rates established under paragraph (a) must not be lower than:
232.6 	(1) the payments rates recommended in the rate analysis required by Laws 2021, First 
232.7 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
232.8 	Services on January 22, 2024; or
232.9 	(2) the payment rates in effect on December 31, 2026.
232.10 		Subd. 3.Capitation payments. The commissioner must adjust capitation payments 
232.11 	made to managed care plans and county-based purchasing plans to reflect the behavioral 
232.12 	health service rates provided in this section. Managed care and county-based purchasing 
232.13 	plans must reimburse providers at an amount that is at least equal to the fee-for-service rate 
232.14 	for services under this section. The commissioner must monitor the effect of this rate 
232.15 	adjustment on enrollee access to behavioral health services. If for any contract year federal 
232.16 	approval is not received for this subdivision, the commissioner must adjust the capitation 
232.17 	rates paid to managed care plans and county-based purchasing plans for that contract year 
232.18 	to reflect the removal of this provision. Contracts between managed care plans and 
232.19 	county-based purchasing plans and providers to whom this subdivision applies must allow 
232.20 	recovery of payments from those providers if capitation rates are adjusted in accordance 
232.21 	with this subdivision. Payment recoveries must not exceed the amount equal to any increase 
232.22 	in rates that results from this subdivision.
232.23 		Subd. 4.Inflation adjustment. The commissioner must adjust the reimbursement rate 
232.24 	for services under this section annually according to the change from the midpoint of the 
232.25 	previous rate year to the midpoint of the rate year for which the rate is being determined 
232.26 	using the Centers for Medicare and Medicaid Services Medicare Economic Index as 
232.27 	forecasted in the fourth quarter of the calendar year before the rate year.
232.28 		Subd. 5.Exceptions. (a) This section does not apply to federally qualified health centers, 
232.29 	rural health centers, Indian health services, or certified community behavioral health clinics 
232.30 	or to cost-based rates or rates that are negotiated with the county.
232.31 	(b) This section does not apply to services with reimbursement rates established pursuant 
232.32 	to section 256B.768.

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

233.4 	Sec. 19. Minnesota Statutes 2024, section 256B.766, is amended to read:
233.5 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
233.6 		Subdivision 1.Payment reductions for base care services effective July 1, 2009. (a)
233.7 	Effective for services provided on or after July 1, 2009, total payments for basic care services, 
233.8 	shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 
233.9 	2011, total payments shall be reduced by 4.5 percent for the medical assistance and general 
233.10 	assistance medical care programs, prior to third-party liability and spenddown calculation.
233.11 		Subd. 2.Classification of therapies as basic care services. Effective July 1, 2010, The 
233.12 	commissioner shall classify physical therapy services, occupational therapy services, and 
233.13 	speech-language pathology and related services as basic care services. The reduction in this 
233.14 	paragraph subdivision 1 shall apply to physical therapy services, occupational therapy 
233.15 	services, and speech-language pathology and related services provided on or after July 1, 
233.16 	2010.
233.17 		Subd. 3.Payment reductions to managed care plans effective October 1, 2009. (b)
233.18 	Payments made to managed care plans and county-based purchasing plans shall be reduced 
233.19 	for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1 
233.20 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
233.21 	1, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010.
233.22 		Subd. 4.Temporary payment reductions effective September 1, 2011. (c) (a) Effective 
233.23 	for services provided on or after September 1, 2011, through June 30, 2013, total payments 
233.24 	for outpatient hospital facility fees shall be reduced by five percent from the rates in effect 
233.25 	on August 31, 2011.
233.26 	(d) (b) Effective for services provided on or after September 1, 2011, through June 30, 
233.27 	2013, total payments for ambulatory surgery centers facility fees, medical supplies and 
233.28 	durable medical equipment not subject to a volume purchase contract, prosthetics and 
233.29 	orthotics, renal dialysis services, laboratory services, public health nursing services, physical 
233.30 	therapy services, occupational therapy services, speech therapy services, eyeglasses not 
233.31 	subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, 
233.32 	and anesthesia services shall be reduced by three percent from the rates in effect on August 
233.33 	31, 2011.
234.1 		Subd. 5.Payment increases effective September 1, 2014. (e) (a) Effective for services 
234.2 	provided on or after September 1, 2014, payments for ambulatory surgery centers facility 
234.3 	fees, hospice services, renal dialysis services, laboratory services, public health nursing 
234.4 	services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject 
234.5 	to a volume purchase contract shall be increased by three percent and payments for outpatient 
234.6 	hospital facility fees shall be increased by three percent.
234.7 	(b) Payments made to managed care plans and county-based purchasing plans shall not 
234.8 	be adjusted to reflect payments under this paragraph subdivision.
234.9 		Subd. 6.Temporary payment reductions effective July 1, 2014. (f) Payments for 
234.10 	medical supplies and durable medical equipment not subject to a volume purchase contract, 
234.11 	and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall 
234.12 	be decreased by .33 percent.
234.13 		Subd. 7.Payment increases effective July 1, 2015. (a) Payments for medical supplies 
234.14 	and durable medical equipment not subject to a volume purchase contract, and prosthetics 
234.15 	and orthotics, provided on or after July 1, 2015, shall be increased by three percent from 
234.16 	the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10.
234.17 	(g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient 
234.18 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
234.19 	volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified 
234.20 	in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent 
234.21 	from the rates in effect on June 30, 2015.
234.22 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
234.23 	be adjusted to reflect payments under this paragraph (b).
234.24 		Subd. 8.Exempt services. (h) This section does not apply to physician and professional 
234.25 	services, inpatient hospital services, family planning services, mental health services, dental 
234.26 	services, prescription drugs, medical transportation, federally qualified health centers, rural 
234.27 	health centers, Indian health services, and Medicare cost-sharing.
234.28 		Subd. 9.Individually priced items. (i) (a) Effective for services provided on or after 
234.29 	July 1, 2015, the following categories of medical supplies and durable medical equipment 
234.30 	shall be individually priced items: customized and other specialized tracheostomy tubes 
234.31 	and supplies, electric patient lifts, and durable medical equipment repair and service.
234.32 	(b) This paragraph subdivision does not apply to medical supplies and durable medical 
234.33 	equipment subject to a volume purchase contract, products subject to the preferred diabetic 
235.1 	testing supply program, and items provided to dually eligible recipients when Medicare is 
235.2 	the primary payer for the item.
235.3 	(c) The commissioner shall not apply any medical assistance rate reductions to durable 
235.4 	medical equipment as a result of Medicare competitive bidding.
235.5 		Subd. 10.Rate increases effective July 1, 2015. (j) (a) Effective for services provided 
235.6 	on or after July 1, 2015, medical assistance payment rates for durable medical equipment, 
235.7 	prosthetics, orthotics, or supplies shall be increased as follows:
235.8 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that 
235.9 	were subject to the Medicare competitive bid that took effect in January of 2009 shall be 
235.10 	increased by 9.5 percent; and
235.11 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on 
235.12 	the medical assistance fee schedule, whether or not subject to the Medicare competitive bid 
235.13 	that took effect in January of 2009, shall be increased by 2.94 percent, with this increase 
235.14 	being applied after calculation of any increased payment rate under clause (1).
235.15 	This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment 
235.16 	subject to a volume purchase contract, products subject to the preferred diabetic testing 
235.17 	supply program, items provided to dually eligible recipients when Medicare is the primary 
235.18 	payer for the item, and individually priced items identified in paragraph (i) subdivision 9.
235.19 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
235.20 	be adjusted to reflect the rate increases in this paragraph subdivision.
235.21 		Subd. 11.Rates for ventilators. (k) (a) Effective for nonpressure support ventilators 
235.22 	provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or 
235.23 	the Medicare fee schedule rate.
235.24 	(b) Effective for pressure support ventilators provided on or after January 1, 2016, the 
235.25 	rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule 
235.26 	rate.
235.27 	(c) For payments made in accordance with this paragraph subdivision, if, and to the 
235.28 	extent that, the commissioner identifies that the state has received federal financial 
235.29 	participation for ventilators in excess of the amount allowed effective January 1, 2018, 
235.30 	under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess 
235.31 	amount to the Centers for Medicare and Medicaid Services with state funds and maintain 
235.32 	the full payment rate under this paragraph subdivision.
236.1 		Subd. 12.Rates subject to the upper payment limit. (l) Payment rates for durable 
236.2 	medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment 
236.3 	limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the 
236.4 	Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed 
236.5 	in this paragraph subdivision.
236.6 		Subd. 13.Temporary rates for enteral nutrition and supplies. (m) (a) For dates of 
236.7 	service on or after July 1, 2023, through June 30, 2025, enteral nutrition and supplies must 
236.8 	be paid according to this paragraph subdivision. If sufficient data exists for a product or 
236.9 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
236.10 	per product code submitted to the commissioner, using only charges submitted per unit. 
236.11 	Increases in rates resulting from the 50th percentile payment method must not exceed 150 
236.12 	percent of the previous fiscal year's rate per code and product combination. Data are sufficient 
236.13 	if: (1) the commissioner has at least 100 paid claim lines by at least ten different providers 
236.14 	for a given product or supply; or (2) in the absence of the data in clause (1), the commissioner 
236.15 	has at least 20 claim lines by at least five different providers for a product or supply that 
236.16 	does not meet the requirements of clause (1). If sufficient data are not available to calculate 
236.17 	the 50th percentile for enteral products or supplies, the payment rate must be the payment 
236.18 	rate in effect on June 30, 2023.
236.19 	(b) This subdivision expires June 30, 2025.
236.20 		Subd. 14.Rates for enteral nutrition and supplies. (n) For dates of service on or after 
236.21 	July 1, 2025, enteral nutrition and supplies must be paid according to this paragraph
236.22 	subdivision and updated annually each January 1. If sufficient data exists for a product or 
236.23 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
236.24 	per product code submitted to the commissioner for the previous calendar year, using only 
236.25 	charges submitted per unit. Increases in rates resulting from the 50th percentile payment 
236.26 	method must not exceed 150 percent of the previous year's rate per code and product 
236.27 	combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines 
236.28 	by at least ten different providers for a given product or supply; or (2) in the absence of the 
236.29 	data in clause (1), the commissioner has at least 20 claim lines by at least five different 
236.30 	providers for a product or supply that does not meet the requirements of clause (1). If 
236.31 	sufficient data are not available to calculate the 50th percentile for enteral products or 
236.32 	supplies, the payment must be the manufacturer's suggested retail price of that product or 
236.33 	supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment 
236.34 	must be the actual acquisition cost of that product or supply plus 20 percent.
237.1 		Subd. 15.Rates for phototherapy services. For dates of service on or after July 1, 
237.2 	2025, the payment rate for phototherapy services provided in the home setting must include 
237.3 	a service fee in the amount of $520 per patient episode, in addition to the daily rental rate 
237.4 	for the medical equipment in subdivision 12. The commissioner shall provide an annual 
237.5 	inflation adjustment for the phototherapy service fee. The index for the inflation adjustment 
237.6 	must be based on the Consumer Price Index for All Urban Consumers increase published 
237.7 	by the Bureau of Labor Statistics.

237.8 	Sec. 20. [256B.768] MEDICARE RATE ALIGNMENT.
237.9 		Subdivision 1.Medicare physician fee schedule rates. (a) Effective January 1, 2026, 
237.10 	or upon federal approval, whichever is later, and effective for services rendered on or after 
237.11 	January 1, 2026, or the date of federal approval, whichever is later, the commissioner must 
237.12 	make payments based on the resource-based relative value scale for all services:
237.13 	(1) covered in medical assistance; and
237.14 	(2) with a corresponding rate and procedure code in the Medicare Physician Fee Schedule.
237.15 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
237.16 	for services rendered on or after January 1, 2026, or the date of federal approval, whichever 
237.17 	is later, rates must be at least equal to 100 percent of the Medicare Physician Fee Schedule 
237.18 	if the service:
237.19 	(1) is reimbursed in medical assistance under the resource-based relative value scale; 
237.20 	and
237.21 	(2) has a corresponding rate and procedural code in the Medicare Physician Fee Schedule.
237.22 	(c) For services rendered on or after January 1, 2026, the commissioner shall increase 
237.23 	capitation payments made to managed care plans and county-based purchasing plans to 
237.24 	reflect the rate increases provided under this subdivision. Managed care plans and 
237.25 	county-based purchasing plans must reimburse providers at an amount that is at least equal 
237.26 	to the fee-for-service rate for services under this subdivision. The commissioner must 
237.27 	monitor the effect of this rate increase on enrollee access to services under this subdivision. 
237.28 	If for any contract year federal approval is not received for this paragraph, the commissioner 
237.29 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
237.30 	plans for that contract year to reflect the removal of this paragraph. Contracts between 
237.31 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
237.32 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
238.1 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
238.2 	to any increase in rates that results from this paragraph.
238.3 		Subd. 2.Applicable fee schedule. For purposes of this section, the applicable Medicare 
238.4 	Physician Fee Schedule is the most recent Medicare Physician Fee Schedule Final Rule 
238.5 	issued by the Centers for Medicare and Medicaid Services in effect at the time the service 
238.6 	was rendered.
238.7 		Subd. 3.Exceptions. This section does not apply to federally qualified health centers, 
238.8 	rural health centers, Indian health services, certified community behavioral health clinics, 
238.9 	cost-based rates, and rates that are negotiated with the county.

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

238.13 	Sec. 21. Minnesota Statutes 2024, section 295.52, subdivision 1, is amended to read:
238.14 		Subdivision 1.Hospital tax. A tax is imposed on each hospital equal to 1.8 two percent 
238.15 	of its gross revenues.

238.16 	Sec. 22. Minnesota Statutes 2024, section 295.52, subdivision 1a, is amended to read:
238.17 		Subd. 1a.Surgical center tax. A tax is imposed on each surgical center equal to 1.8
238.18 	two percent of its gross revenues.

238.19 	Sec. 23. Minnesota Statutes 2024, section 295.52, subdivision 2, is amended to read:
238.20 		Subd. 2.Provider tax. A tax is imposed on each health care provider equal to 1.8 two
238.21 	percent of its gross revenues.

238.22 	Sec. 24. Minnesota Statutes 2024, section 295.52, subdivision 3, is amended to read:
238.23 		Subd. 3.Wholesale drug distributor tax. A tax is imposed on each wholesale drug 
238.24 	distributor equal to 1.8 two percent of its gross revenues.

238.25 	Sec. 25. Minnesota Statutes 2024, section 295.52, subdivision 4, is amended to read:
238.26 		Subd. 4.Use tax; legend drugs. (a) A person that receives legend drugs for resale or 
238.27 	use in Minnesota, other than from a wholesale drug distributor that is subject to tax under 
238.28 	subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 
239.1 	1.8 two percent. Liability for the tax is incurred when legend drugs are received or delivered 
239.2 	in Minnesota by the person.
239.3 	(b) A tax imposed under this subdivision does not apply to purchases by an individual 
239.4 	for personal consumption.

239.5 	Sec. 26. [295.525] MCO ASSESSMENT ON HEALTH PLAN COMPANIES.
239.6 		Subdivision 1.Definitions. (a) For purposes of this section, the definitions in this 
239.7 	subdivision have the meanings given.
239.8 	(b) "Commissioner" means the commissioner of human services.
239.9 	(c) "Enrollee" has the meaning given in section 62Q.01, except that enrollee does not 
239.10 	include:
239.11 	(1) an individual enrolled in a Medicare plan;
239.12 	(2) a plan-to-plan enrollee; or
239.13 	(3) an individual enrolled in a health plan pursuant to the Federal Employees Health 
239.14 	Benefits Act of 1959, Public Law 86-382, as amended, to the extent the imposition of the 
239.15 	assessment under this section is preempted pursuant to United States Code, title 5, section 
239.16 	8909, subsection (f).
239.17 	(d) "Health plan" has the meaning given in section 62Q.01.
239.18 	(e) "Health plan company" has the meaning given in section 62Q.01.
239.19 	(f) "Medical assistance" means the medical assistance program established under chapter 
239.20 	256B.
239.21 	(g) "Medical assistance enrollee" means an enrollee in medical assistance or 
239.22 	MinnesotaCare for whom the Department of Human Services directly pays the health plan 
239.23 	company a capitated payment.
239.24 	(h) "MinnesotaCare" means the MinnesotaCare program established under chapter 256L.
239.25 	(i) "Plan-to-plan enrollee" means an individual who receives coverage for health care 
239.26 	services through a health plan pursuant to a subcontract from another health plan.
239.27 		Subd. 2.MCO assessment. (a) An annual assessment is imposed on health plan 
239.28 	companies for each calendar year beginning in calendar year 2026. The total annual 
239.29 	assessment amount is equal to the sum of the amounts assessed for medical assistance 
239.30 	enrollees under paragraph (b) and for nonmedical assistance enrollees under paragraph (c).
240.1 	(b) The amount assessed for medical assistance enrollees is equal to the sum of the 
240.2 	following:
240.3 	(1) for medical assistance enrollees 0 to 60,000, $0 per enrollee;
240.4 	(2) for medical assistance enrollees 60,001 to 100,000, $340 per enrollee;
240.5 	(3) for medical assistance enrollees 100,001 to 200,000, $365 per enrollee; and
240.6 	(4) for medical assistance enrollees 200,001 to 350,000, $380 per enrollee.
240.7 	(c) The amount assessed for nonmedical assistance enrollees is equal to the sum of the 
240.8 	following:
240.9 	(1) for nonmedical assistance enrollees 0 to 60,000, $0 per enrollee;
240.10 	(2) for nonmedical assistance enrollees 60,001 to 100,000, 50 cents per enrollee;
240.11 	(3) for nonmedical assistance enrollees 100,001 to 200,000, 75 cents per enrollee; and
240.12 	(4) for nonmedical assistance enrollees 200,001 to 350,000, $1 per enrollee.
240.13 	(d) The commissioner must annually use the commissioner's authority as necessary to 
240.14 	modify the rate of assessment, provided under paragraph (e), such that the annual assessment 
240.15 	imposed under this subdivision equals 2.8 percent of the health plan companies' aggregate 
240.16 	gross revenue.
240.17 	(e) The commissioner may, after consultation with health plan companies likely to be 
240.18 	affected, modify the rate of assessment, as set forth in paragraphs (a) to (d), as necessary 
240.19 	to:
240.20 	(1) comply with federal law, obtain or maintain a waiver under Code of Federal 
240.21 	Regulations, title 42, section 433.72, or to otherwise maximize under this section federal 
240.22 	financial participation for medical assistance; and
240.23 	(2) comply with paragraph (d).
240.24 	(f) Unpaid assessment amounts accrue interest at a rate of ten percent per annum, 
240.25 	beginning the day following the assessment payment's due date. A penalty, equal to the 
240.26 	total accrued interest charge, is imposed monthly on payments 60 days or more overdue 
240.27 	until the payment, penalty, and interest are paid in full.
240.28 		Subd. 3.Assessment computation; collection. (a) The commissioner must annually 
240.29 	determine the following for each health plan company:
240.30 	(1) total enrollment for the calendar year;
241.1 	(2) total Medicare enrollment for the calendar year;
241.2 	(3) total medical assistance enrollment for the calendar year;
241.3 	(4) total plan-to-plan enrollment for the calendar year;
241.4 	(5) total enrollment through the Federal Employees Health Benefits Act of 1959, Public 
241.5 	Law 86-382, as amended, for the calendar year; and
241.6 	(6) total other enrollment for the calendar year that is not otherwise counted in clauses 
241.7 	(2) to (5).
241.8 	(b) Health plan companies must provide any information requested by the commissioner 
241.9 	for the purpose of this subdivision, provided that the commissioner determines such 
241.10 	information is necessary to accurately determine the information in paragraph (a).
241.11 	(c) The commissioner may correct errors in data provided to the commissioner by a 
241.12 	health plan company to the extent necessary to accurately determine the information in 
241.13 	paragraph (a).
241.14 	(d) For purposes of calculating the information in paragraph (a) for a health plan company, 
241.15 	the commissioner must count any individual that was an enrollee of a health plan at any 
241.16 	point of the calendar year, regardless of the enrollee's duration as an enrollee of the health 
241.17 	plan.
241.18 	(e) The commissioner must annually use the information in paragraph (a) to compute 
241.19 	the assessment for each health plan company.
241.20 	(f) The commissioner must collect the annual assessment for each health plan company 
241.21 	in four equal installments, in the manner and on the schedule determined by the 
241.22 	commissioner. The commissioner is prohibited from collecting any amount under this section 
241.23 	until 20 days after the commissioner has notified the health plan company of:
241.24 	(1) the effective date of this section;
241.25 	(2) the assessment due dates for the applicable calendar year; and
241.26 	(3) the annual assessment amount.
241.27 	(g) The commissioner may waive all or part of the interest or penalty imposed on a 
241.28 	health plan company under subdivision 2, paragraph (f), if the commissioner determines 
241.29 	the interest or penalty is likely to create an undue financial hardship on the health plan 
241.30 	company or a significant financial difficulty in providing necessary services to medical 
241.31 	assistance enrollees. A waiver under this paragraph must be contingent on the health plan 
241.32 	company's agreement to make assessment payments on an alternative schedule, determined 
242.1 	by the commissioner, that accounts for the health plan company's finances and the potential 
242.2 	impact on the delivery of services to medical assistance enrollees.
242.3 	(h) In the event of a merger, acquisition, or other transaction that results in the transfer 
242.4 	of health plan responsibility to another health plan company or similar entity during calendar 
242.5 	years 2026 to 2029, the surviving, acquiring, or controlling health plan company or similar 
242.6 	entity shall be responsible for paying the full assessment amount as provided in this section 
242.7 	that would have been the responsibility of the health plan company to which that full 
242.8 	assessment amount was assessed upon the effective date of the transaction. If a transaction 
242.9 	results in the transfer of health plan responsibility for only some of a health plan's enrollees 
242.10 	under this section but not all enrollees, the full assessment amount as provided in this section 
242.11 	remains the responsibility of that health plan company to which that full assessment amount 
242.12 	was assessed.
242.13 		Subd. 4.MCO assessment expenditures. (a) All amounts collected by the commissioner 
242.14 	under this section must be deposited in the health care access fund.
242.15 	(b) All amounts collected by the commissioner under this section are annually 
242.16 	appropriated to the commissioner to provide nonfederal money for medical assistance and 
242.17 	MinnesotaCare program rate changes made in this act related to:
242.18 	(1) ambulance services under section 256B.0625, subdivision 17a;
242.19 	(2) behavioral health home services under section 256B.0757;
242.20 	(3) mental health services under section 256B.761;
242.21 	(4) services reimbursed under the resource-based relative value scale and with a 
242.22 	corresponding rate and procedural code in the Medicare Physician Fee Schedule under 
242.23 	section 256B.768; and
242.24 	(5) inpatient behavioral health services provided by hospitals paid under the DRG 
242.25 	methodology.
242.26 	(c) The assessment money must be used to supplement money for medical assistance 
242.27 	from the general fund.
242.28 	(d) The commissioner must provide an annual report to all health plan companies, in a 
242.29 	time and manner determined by the commissioner. The report must identify the assessments 
242.30 	imposed on each health plan company pursuant to this section, account for all money raised 
242.31 	by the MCO assessment, and provide an itemized accounting of expenditures from the fund.

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

243.9 	Sec. 27. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ENHANCED 
243.10 	FEDERAL REIMBURSEMENT FOR FAMILY PLANNING SERVICES IN 
243.11 	MEDICAL ASSISTANCE.
 243.12 	The commissioner of human services must make the systems modification necessary to 
243.13 	claim enhanced federal reimbursement for all family planning services under the medical 
243.14 	assistance program.

243.15 	Sec. 28. IMPLEMENTATION OF HOSPITAL ASSESSMENT AND DIRECTED 
243.16 	PAYMENT PROGRAM.
 243.17 	(a) The commissioner of human services must immediately begin all necessary claims 
243.18 	analysis to calculate the assessment and payments required under Minnesota Statutes, section 
243.19 	256.9657, subdivision 2b, and the hospital directed payment program described in Minnesota 
243.20 	Statutes, section 256B.1974.
243.21 	(b) The commissioner of human services, in consultation with the Minnesota Hospital 
243.22 	Association, must submit to the Centers for Medicare and Medicaid Services a request for 
243.23 	federal approval to implement the hospital assessment described in Minnesota Statutes, 
243.24 	section 256.9657, subdivision 2b, and the hospital directed payment program under 
243.25 	Minnesota Statutes, section 256B.1974. At least 15 days before submitting the request for 
243.26 	approval, the commissioner must make available to the public the draft assessment 
243.27 	requirements, draft directed payment details, and an estimate of each assessment amount 
243.28 	for each hospital without an exemption from the assessment pursuant to Minnesota Statutes, 
243.29 	section 256.9657, subdivision 2b, paragraph (k).
243.30 	(c) During the design and prior to submission of the request for approval under paragraph 
243.31 	(b), the commissioner of human services must consult with the Minnesota Hospital 
243.32 	Association and any hospitals without an exemption from the assessment pursuant to 
244.1 	Minnesota Statutes, section 256.9657, subdivision 2b, paragraph (k), and that are not 
244.2 	members of the Minnesota Hospital Association.
244.3 	(d) If federal approval is received for the request under paragraph (b), the commissioner 
244.4 	of human services must provide at least 15 days of public posting and review of the federally 
244.5 	approved terms and conditions for the assessment and the directed payment program prior 
244.6 	to any assessment under Minnesota Statutes, section 256.9657, subdivision 2b, becoming 
244.7 	due from a hospital.

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

244.9 	Sec. 29. FEDERAL APPROVAL; WAIVERS.
 244.10 	(a) The commissioner must request, as the commissioner determines necessary, federal 
244.11 	approval for the MCO assessment on health plan companies established in this act to be 
244.12 	considered a permissible health-care-related tax under Code of Federal Regulations, title 
244.13 	42, section 433.68, eligible for federal financial participation.
244.14 	(b) To obtain the federal approval under paragraph (a), the commissioner may apply for 
244.15 	a waiver of the federal broad-based requirement for health care-related taxes, uniform 
244.16 	requirement for health-care-related taxes, and any other provision of federal law necessary 
244.17 	to implement Minnesota Statutes, section 295.525.

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

244.19 	Sec. 30. BUDGET NEUTRALITY; RATE ADJUSTMENTS.
 244.20 	(a) By October 1 of each year, the commissioner of human services must determine the 
244.21 	difference between the actual costs or forecasted costs to the medical assistance and 
244.22 	MinnesotaCare programs attributable to the program changes in Minnesota Statutes, section 
244.23 	295.525, subdivision 4, paragraph (b), clauses (1) to (5), and the revenue from the MCO 
244.24 	assessment imposed under Minnesota Statutes, section 295.525, subdivision 2, including 
244.25 	federal financial participation.
244.26 	(b) For each fiscal year, the commissioner of human services must certify the difference 
244.27 	between the actual costs or forecasted costs to the medical assistance and MinnesotaCare 
244.28 	programs determined under paragraph (a), and report the difference in costs to the 
244.29 	commissioner of management and budget at least four weeks prior to a forecast under 
244.30 	Minnesota Statutes, section 16A.103.
244.31 	(c) If for any fiscal year, the cumulative costs attributable to the program changes in 
244.32 	Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), clauses (1) to (5), exceed 
245.1 	revenue from the MCO assessment imposed under Minnesota Statutes, section 295.525, 
245.2 	subdivision 2, as determined under paragraph (a), the commissioner of human services must 
245.3 	reduce the costs to the medical assistance and MinnesotaCare programs attributable to the 
245.4 	program changes in Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), 
245.5 	clauses (1) to (5). The commissioner's reduction under this paragraph must be on a uniform 
245.6 	percentage basis across the rate increases provided in Minnesota Statutes, section 295.525, 
245.7 	subdivision 4, paragraph (b), clauses (1) to (5).

245.8 	Sec. 31. TREND LIMIT; CALCULATION.
 245.9 	(a) Beginning January 1, 2027, and ending June 30, 2029, the commissioner of human 
245.10 	services may limit the trend increase in rates paid to managed care plans and county-based 
245.11 	purchasing plans under Minnesota Statutes, sections 256B.69 and 256B.692, by an amount 
245.12 	equal to the value of a 0.35 percent reduction in trend in medical assistance. Managed care 
245.13 	rates must meet actuarial soundness and rate development requirements under Code of 
245.14 	Federal Regulations, title 42, part 438, subpart A.
245.15 	(b) In the November 2025 forecast, the commissioner of human services, in consultation 
245.16 	with the commissioner of management and budget, must reduce the forecasted trend growth 
245.17 	in managed care for medical assistance expenditures in fiscal years 2027, 2028, and 2029. 
245.18 	The reduction must not be less than $7,784,000 in fiscal year 2027, $8,219,000 in fiscal 
245.19 	year 2028, and $8,446,000 in fiscal year 2029.

245.20 	Sec. 32. APPROPRIATION.
 245.21 	$10,000,000 is appropriated in fiscal year 2027 from the health care access fund to the 
245.22 	commissioner of human services for increases to payments for inpatient behavioral health 
245.23 	services provided by hospitals paid under the DRG methodology under Minnesota Statutes, 
245.24 	section 256.969, subdivision 2b, paragraph (l).

245.25 	Sec. 33. REPEALER.
 245.26 	Minnesota Statutes 2024, section 256B.0625, subdivision 38, is repealed.

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

246.1 	ARTICLE 7
246.2 	HUMAN SERVICES HEALTH CARE POLICY

246.3 	Section 1. Minnesota Statutes 2024, section 62Q.522, subdivision 1, is amended to read:
246.4 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
246.5 	(b) "Contraceptive method" means a drug, device, or other product approved by the 
246.6 	Food and Drug Administration to prevent unintended pregnancy.
246.7 	(c) "Contraceptive service" means consultation, examination, procedures, and medical 
246.8 	services related to the prevention of unintended pregnancy, excluding vasectomies. This 
246.9 	includes but is not limited to voluntary sterilization procedures, patient education, counseling 
246.10 	on contraceptives, and follow-up services related to contraceptive methods or services, 
246.11 	management of side effects, counseling for continued adherence, and device insertion or 
246.12 	removal.
246.13 	(d) "Medical necessity" includes but is not limited to considerations such as severity of 
246.14 	side effects, difference in permanence and reversibility of a contraceptive method or service, 
246.15 	and ability to adhere to the appropriate use of the contraceptive method or service, as 
246.16 	determined by the attending provider.
246.17 	(e) "Therapeutic equivalent version" means a drug, device, or product that can be expected 
246.18 	to have the same clinical effect and safety profile when administered to a patient under the 
246.19 	conditions specified in the labeling, and that:
246.20 	(1) is approved as safe and effective;
246.21 	(2) is a pharmaceutical equivalent: (i) containing identical amounts of the same active 
246.22 	drug ingredient in the same dosage form and route of administration; and (ii) meeting 
246.23 	compendial or other applicable standards of strength, quality, purity, and identity;
246.24 	(3) is bioequivalent in that:
246.25 	(i) the drug, device, or product does not present a known or potential bioequivalence 
246.26 	problem and meets an acceptable in vitro standard; or
246.27 	(ii) if the drug, device, or product does present a known or potential bioequivalence 
246.28 	problem, it is shown to meet an appropriate bioequivalence standard;
246.29 	(4) is adequately labeled; and
246.30 	(5) is manufactured in compliance with current manufacturing practice regulations.

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

247.3 	Sec. 2. Minnesota Statutes 2024, section 256B.0371, subdivision 3, is amended to read:
247.4 		Subd. 3.Contingent contract with dental administrator. (a) The commissioner shall 
247.5 	determine the extent to which managed care and county-based purchasing plans in the 
247.6 	aggregate meet the performance benchmark specified in subdivision 1 for coverage year 
247.7 	2024. If managed care and county-based purchasing plans in the aggregate fail to meet the 
247.8 	performance benchmark, the commissioner, after issuing a request for information followed 
247.9 	by a request for proposals, shall contract with a dental administrator to administer dental 
247.10 	services beginning January 1, 2026 2030, for all recipients of medical assistance and 
247.11 	MinnesotaCare, including persons served under fee-for-service and persons receiving 
247.12 	services through managed care and county-based purchasing plans.
247.13 	(b) The dental administrator must provide administrative services, including but not 
247.14 	limited to:
247.15 	(1) provider recruitment, contracting, and assistance;
247.16 	(2) recipient outreach and assistance;
247.17 	(3) utilization management and reviews of medical necessity for dental services;
247.18 	(4) dental claims processing;
247.19 	(5) coordination of dental care with other services;
247.20 	(6) management of fraud and abuse;
247.21 	(7) monitoring access to dental services;
247.22 	(8) performance measurement;
247.23 	(9) quality improvement and evaluation; and
247.24 	(10) management of third-party liability requirements.
247.25 	(c) Dental administrator payments to contracted dental providers must be at the rates 
247.26 	established under sections 256B.76 and 256L.11.
247.27 	(d) (c) Recipients must be given a choice of dental provider, including any provider who 
247.28 	agrees to provider participation requirements and payment rates established by the 
247.29 	commissioner and dental administrator. The dental administrator must comply with the 
247.30 	network adequacy and geographic access requirements that apply to managed care and 
247.31 	county-based purchasing plans for dental services under section 62K.14.
248.1 	(e) (d) The contract with the dental administrator must include a provision that states 
248.2 	that if the dental administrator fails to meet, by calendar year 2029 2032, a performance 
248.3 	benchmark under which at least 55 percent of children and adults who were continuously 
248.4 	enrolled for at least 11 months in either medical assistance or MinnesotaCare received at 
248.5 	least one dental visit during the calendar year, the contract must be terminated and the 
248.6 	commissioner must enter into a contract with a new dental administrator as soon as 
248.7 	practicable.
248.8 	(f) (e) The commissioner shall implement this subdivision in consultation with 
248.9 	representatives of providers who provide dental services to patients enrolled in medical 
248.10 	assistance or MinnesotaCare, including but not limited to providers serving primarily 
248.11 	low-income and socioeconomically complex populations, and with representatives of 
248.12 	managed care plans and county-based purchasing plans.

248.13 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
248.14 	to read:
248.15 		Subd. 77.Vasectomies. (a) Medical assistance covers vasectomies.
248.16 	(b) Medical assistance must meet the requirements with respect to coverage of 
248.17 	vasectomies that would otherwise apply to a health plan under section 62Q.522, except that 
248.18 	medical assistance is not required to comply with any provision of section 62Q.522 if 
248.19 	compliance with the provision would:
248.20 	(1) prevent the state from receiving federal financial participation for the coverage under 
248.21 	this subdivision;
248.22 	(2) result in a lower level of coverage or reduced access to coverage for medical assistance 
248.23 	enrollees; or
248.24 	(3) violate Code of Federal Regulations, title 42, part 441, subpart F.

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

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

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

249.9 	ARTICLE 8
249.10 	BEHAVIORAL HEALTH

249.11 	Section 1. Minnesota Statutes 2024, section 245.4661, subdivision 2, is amended to read:
249.12 		Subd. 2.Program design and implementation.  Adult mental health initiatives shall 
249.13 	be responsible for designing, planning, improving, and maintaining a mental health service 
249.14 	delivery system for adults with serious and persistent mental illness that would:
249.15 	(1) provide an expanded array of services from which clients can choose services 
249.16 	appropriate to their needs;
249.17 	(2) be based on purchasing strategies that improve access and coordinate services without 
249.18 	cost shifting;
249.19 	(3) prioritize evidence-based services and implement services that are promising practices 
249.20 	or theory-based practices so that the service can be evaluated according to subdivision 5a;
249.21 	(4) incorporate existing state facilities and resources into the community mental health 
249.22 	infrastructure through creative partnerships with local vendors; and
249.23 	(5) utilize existing categorical funding streams and reimbursement sources in combined 
249.24 	and creative ways, except adult mental health initiative funding only after all other eligible 
249.25 	funding sources have been applied. Appropriations and all funds that are attributable to the 
249.26 	operation of state-operated services under the control of the Direct Care and Treatment 
249.27 	executive board are excluded unless appropriated specifically by the legislature for a purpose 
249.28 	consistent with this section.

250.1 	Sec. 2. Minnesota Statutes 2024, section 245.4661, subdivision 6, is amended to read:
250.2 		Subd. 6.Duties of commissioner. (a) For purposes of adult mental health initiatives, 
250.3 	the commissioner shall facilitate integration of funds or other resources as needed and 
250.4 	requested by each adult mental health initiative. These resources may include:
250.5 	(1) community support services funds administered under Minnesota Rules, parts 
250.6 	9535.1700 to 9535.1760;
250.7 	(2) other mental health special project funds;
250.8 	(3) medical assistance, MinnesotaCare, and housing support under chapter 256I if 
250.9 	requested by the adult mental health initiative's managing entity and if the commissioner 
250.10 	determines this would be consistent with the state's overall health care reform efforts; and
250.11 	(4) regional treatment center resources, with consent from the Direct Care and Treatment 
250.12 	executive board.
250.13 	(b) The commissioner shall consider the following criteria in awarding grants for adult 
250.14 	mental health initiatives:
250.15 	(1) the ability of the initiatives to accomplish the objectives described in subdivision 2;
250.16 	(2) the size of the target population to be served; and
250.17 	(3) geographical distribution.
250.18 	(c) (b) The commissioner shall review overall status of the initiatives at least every two 
250.19 	years and recommend any legislative changes needed by January 15 of each odd-numbered 
250.20 	year.
250.21 	(d) (c) The commissioner may waive administrative rule requirements that are 
250.22 	incompatible with the implementation of the adult mental health initiative.
250.23 	(e) (d) The commissioner may exempt the participating counties from fiscal sanctions 
250.24 	for noncompliance with requirements in laws and rules that are incompatible with the 
250.25 	implementation of the adult mental health initiative.
250.26 	(f) (e) The commissioner may award grants to an entity designated by a county board 
250.27 	or group of county boards to pay for start-up and implementation costs of the adult mental 
250.28 	health initiative.

251.1 	Sec. 3. Minnesota Statutes 2024, section 245.4661, subdivision 7, is amended to read:
251.2 		Subd. 7.Duties of adult mental health initiative board. The adult mental health 
251.3 	initiative board, or other entity which is approved to administer an adult mental health 
251.4 	initiative, shall:
251.5 	(1) administer the initiative in a manner that is consistent with the objectives described 
251.6 	in subdivision 2 and the planning process described in subdivision 5;
251.7 	(2) assure that no one is denied services that they would otherwise be eligible for; and
251.8 	(3) provide the commissioner of human services with timely and pertinent information 
251.9 	through the following methods:
251.10 	(i) submission of mental health plans and plan amendments which are based on a format 
251.11 	and timetable determined by the commissioner;
251.12 	(ii) submission of social services expenditure and grant reconciliation reports, based on 
251.13 	a coding format to be determined by mutual agreement between the initiative's managing 
251.14 	entity and the commissioner; and
251.15 	(iii) submission of data and participation in an evaluation of the adult mental health 
251.16 	initiatives, to be designed cooperatively by the commissioner and the initiatives. For services 
251.17 	provided to American Indians in Tribal Nations or urban Indian communities, oral reports 
251.18 	using a system designed in partnership between the commissioner and the reporting 
251.19 	community satisfy the requirements of this clause.

251.20 	Sec. 4. Minnesota Statutes 2024, section 245.4871, subdivision 5, is amended to read:
251.21 		Subd. 5.Child. "Child" means a person under 18 years of age, or a person 18 years of 
251.22 	age or older and under 21 years of age receiving continuous children's mental health targeted 
251.23 	case management services as defined in section 245.2875, subdivision 8.

251.24 	Sec. 5. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
251.25 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
251.26 	make grants from available appropriations to assist:
251.27 	(1) counties;
251.28 	(2) Indian tribes;
251.29 	(3) children's collaboratives under section 142D.15 or 245.493; or
251.30 	(4) mental health service providers.
252.1 	(b) The following services are eligible for grants under this section:
252.2 	(1) services to children with emotional disturbances as defined in section 245.4871, 
252.3 	subdivision 15, and their families;
252.4 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
252.5 	age 21 and their families;
252.6 	(3) respite care services for children with emotional disturbances or severe emotional 
252.7 	disturbances who are at risk of residential treatment or hospitalization, who are already in 
252.8 	out-of-home placement in family foster settings as defined in chapter 142B and at risk of 
252.9 	change in out-of-home placement or placement in a residential facility or other higher level 
252.10 	of care, who have utilized crisis services or emergency room services, or who have 
252.11 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
252.12 	care services are defined under subdivision 4. A child is not required to have case 
252.13 	management services to receive respite care services. Counties must work to provide access 
252.14 	to regularly scheduled respite care;
252.15 	(4) children's mental health crisis services;
252.16 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
252.17 	(6) mental health services for people from cultural and ethnic minorities, including 
252.18 	supervision of clinical trainees who are Black, indigenous, or people of color;
252.19 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
252.20 	(8) services to promote and develop the capacity of providers to use evidence-based 
252.21 	practices in providing children's mental health services;
252.22 	(9) school-linked mental health services under section 245.4901;
252.23 	(10) building evidence-based mental health intervention capacity for children birth to 
252.24 	age five;
252.25 	(11) suicide prevention and counseling services that use text messaging statewide;
252.26 	(12) mental health first aid training;
252.27 	(13) training for parents, collaborative partners, and mental health providers on the 
252.28 	impact of adverse childhood experiences and trauma and development of an interactive 
252.29 	website to share information and strategies to promote resilience and prevent trauma;
252.30 	(14) transition age services to develop or expand mental health treatment and supports 
252.31 	for adolescents and young adults 26 years of age or younger;
253.1 	(15) early childhood mental health consultation;
253.2 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
253.3 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
253.4 	psychosis;
253.5 	(17) psychiatric consultation for primary care practitioners; and
253.6 	(18) providers to begin operations and meet program requirements when establishing a 
253.7 	new children's mental health program. These may be start-up grants; and
253.8 	(19) evidence-based interventions for youth and young adults at risk of developing or 
253.9 	experiencing an early episode of bipolar disorder.
253.10 	(c) Services under paragraph (b) must be designed to help each child to function and 
253.11 	remain with the child's family in the community and delivered consistent with the child's 
253.12 	treatment plan. Transition services to eligible young adults under this paragraph must be 
253.13 	designed to foster independent living in the community.
253.14 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
253.15 	reimbursement sources, if applicable.
253.16 	(e) The commissioner may establish and design a pilot program to expand the mobile 
253.17 	response and stabilization services model for children, youth, and families. The commissioner 
253.18 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
253.19 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
253.20 	amendment to scale the model statewide.

253.21 	Sec. 6. Minnesota Statutes 2024, section 245.4905, is amended to read:
253.22 	245.4905 FIRST EPISODE OF PSYCHOSIS AND EARLY EPISODE OF 
253.23 	BIPOLAR DISORDER GRANT PROGRAM.
253.24 		Subdivision 1.Creation Establishment. The commissioner of human services must 
253.25 	establish the first episode of psychosis and early episode of bipolar disorder grant program 
253.26 	is established in the Department of Human Services within the department to fund: (1)
253.27 	evidence-based interventions for youth and young adults at risk of developing or experiencing 
253.28 	a first episode of psychosis or an early episode of bipolar disorder; and (2) a public awareness 
253.29 	campaign on the signs and symptoms of psychosis. First episode of psychosis services are 
253.30 	eligible for children's mental health grants as specified in section 245.4889, subdivision 1, 
253.31 	paragraph (b), clause (15) For purposes of this section, "youth and young adults" means 
253.32 	individuals who are 15 years of age or older and under 41 years of age.
254.1 		Subd. 2.Activities. (a) All first episode of psychosis grant programs or early episode 
254.2 	of bipolar disorder grantees must:
254.3 	(1) provide intensive treatment and support for adolescents and youth and young adults 
254.4 	experiencing or at risk of experiencing a first psychotic episode of psychosis or early episodes 
254.5 	of bipolar disorder. Intensive treatment and support includes may include medication 
254.6 	management, psychoeducation for an individual and an individual's family, case management, 
254.7 	employment support, education support, cognitive behavioral approaches, social skills 
254.8 	training, peer and family peer support, crisis planning, and stress management;
254.9 	(2) conduct outreach and provide training and guidance to mental health and health care 
254.10 	professionals, including postsecondary health clinicians, on early psychosis and bipolar 
254.11 	disorder symptoms, screening tools, and best practices;
254.12 	(3) ensure access for individuals to first psychotic episode of psychosis services under 
254.13 	this section, including access for individuals who live in rural areas; and
254.14 	(4) use all available funding streams.
254.15 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
254.16 	receiving services or to address other barriers preventing individuals and their families from 
254.17 	participating in first psychotic episode of psychosis services.
254.18 		Subd. 3.Eligibility Funding. Program activities must be provided to people 15 to 40 
254.19 	years old with early signs of psychosis First episode of psychosis services and early episode 
254.20 	of bipolar disorder services are eligible for children's mental health grants as specified in 
254.21 	section 245.4889, subdivision 1, paragraph (b), clauses (16) and (19).
254.22 		Subd. 4.Outcomes. (a) The commissioner must annually evaluate the first episode of 
254.23 	psychosis and early episode of bipolar disorder grant program.
254.24 	(b) The evaluation of program activities must utilize evidence-based practices and must 
254.25 	include the following outcome evaluation criteria:
254.26 	(1) whether individuals experience a reduction in psychotic symptoms;
254.27 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations
254.28 	or interactions with the criminal justice system; and
254.29 	(3) whether individuals experience an increase in educational attainment or employment.
254.30 	(c) By July 1, 2026, and every July 1 thereafter, the commissioner must provide a report 
254.31 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
254.32 	over behavioral health, along with the chairs and ranking minority members of the senate 
255.1 	finance committee and house of representatives ways and means committee. The report 
255.2 	must include the number of grantees receiving funds under this section, the number of 
255.3 	individuals served under this section, data from the evaluation conducted under this 
255.4 	subdivision, and information on the use of state and federal funds for the services provided 
255.5 	under this section.
255.6 		Subd. 5.Federal aid or grants. The commissioner of human services must comply with 
255.7 	all conditions and requirements necessary to receive federal aid or grants.

255.8 	Sec. 7. MENTAL HEALTH COLLABORATION HUB INNOVATION PILOT 
255.9 	PROGRAM.
 255.10 	(a) The commissioner of human services must support the Mental Health Collaboration 
255.11 	Hub's pilot project to develop and implement innovative care pathways and care facility 
255.12 	decompression strategies by providing funding support and technical assistance and entering 
255.13 	into a data sharing agreement with the Mental Health Collaboration Hub. The pilot project 
255.14 	must fund, track, and evaluate activities that expedite transitions of children from 
255.15 	inappropriate care settings to appropriate care settings. A steering committee of expert 
255.16 	Mental Health Collaboration Hub participants that represent the continuum of children's 
255.17 	behavioral health care must guide funding determinations to support the transition of up to 
255.18 	200 children per year.
255.19 	(b) On January 1, 2027, and each January 1 for the subsequent four years, the Mental 
255.20 	Health Collaboration Hub must submit a report to the commissioner and chairs and ranking 
255.21 	minority members of the legislative committees with jurisdiction over children's mental 
255.22 	health and juvenile detention. The report must describe how the grant funds were spent and 
255.23 	summarize the impact the pilot project had on participating children, families, and providers.

255.24 	Sec. 8. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY REPORT.
 255.25 	(a) By January 15, 2026, the commissioner of human services, in consultation with 
255.26 	organizations operating psychiatric residential treatment facilities, advocates, health care 
255.27 	experts, juvenile detention experts, and county representatives, must submit a report and 
255.28 	proposed legislative changes to the chairs and ranking minority members of the legislative 
255.29 	committees with jurisdiction over children's mental health and juvenile detention. The 
255.30 	submitted report must include recommendations on:
255.31 	(1) amending the state medical assistance plan to expand access to care provided in 
255.32 	psychiatric residential treatment facilities, with consideration being given to enhancing 
255.33 	flexibilities to serve a continuum of mental health needs;
256.1 	(2) developing licensing standards for psychiatric residential treatment facilities that 
256.2 	reflect needed flexibilities and the broad inclusion of settings where care can be delivered; 
256.3 	and
256.4 	(3) updating the rate methodology for services provided in psychiatric residential 
256.5 	treatment facilities to assure high quality of care with required individualization.
256.6 	(b) When developing the recommendations required under paragraph (b), the 
256.7 	commissioner must:
256.8 	(1) consider how best to meet the needs of children with high levels of complexity, 
256.9 	aggression, and other related barriers to being served by community providers; and
256.10 	(2) determine what would be required, including needed infrastructure, staffing, and 
256.11 	sustainable funding sources, to allow qualified residential treatment programs to transition 
256.12 	to a psychiatric residential treatment facility standard of care.

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

256.14 	ARTICLE 9
256.15 	BEHAVIORAL HEALTH POLICY

256.16 	Section 1. Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:
256.17 		Subd. 2.Definitions. For the purposes of this section, "patient" means a person who is 
256.18 	admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for 
256.19 	the purpose of diagnosis or treatment bearing on the physical or mental health of that person. 
256.20 	For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a 
256.21 	person who receives health care services at an outpatient surgical center or at a birth center 
256.22 	licensed under section 144.615. "Patient" also means a minor who is admitted to a residential 
256.23 	program as defined in section 253C.01. For purposes of subdivisions 1, 3 to 16, 18, 20 and 
256.24 	30, "patient" also means any person who is receiving mental health treatment on an outpatient 
256.25 	basis or in a community support program or other community-based program. "Resident" 
256.26 	means a person who is admitted to a nonacute care facility including extended care facilities, 
256.27 	nursing homes, and boarding care homes for care required because of prolonged mental or 
256.28 	physical illness or disability, recovery from injury or disease, or advancing age. For purposes 
256.29 	of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is 
256.30 	admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 
256.31 	4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a 
256.32 	supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which 
256.33 	operates a rehabilitation program licensed under chapter 245G or 245I, or Minnesota Rules, 
257.1 	parts 9530.6510 to 9530.6590. For purposes of all subdivisions except subdivisions 20, 28, 
257.2 	29, 32, and 33, resident also means a person who is admitted to a facility licensed to provide 
257.3 	intensive residential treatment services or residential crisis stabilization under section 
257.4 	245I.23.

257.5 	Sec. 2. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
257.6 		Subd. 4.Case management service provider. (a) "Case management service provider" 
257.7 	means a case manager or case manager associate employed by the county or other entity 
257.8 	authorized by the county board to provide case management services specified in section 
257.9 	245.4711.
257.10 	(b) A case manager must:
257.11 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
257.12 	(2) be knowledgeable about local community resources and how to use those resources 
257.13 	for the benefit of the client;
257.14 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
257.15 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
257.16 	limited to, social work, psychology, or nursing from an accredited college or university. A 
257.17 	case manager who is not a mental health practitioner and or who does not have a bachelor's 
257.18 	degree in one of the behavioral sciences or related fields must meet the requirements of 
257.19 	paragraph (c); and
257.20 	(4) meet the supervision and continuing education requirements described in paragraphs 
257.21 	(d), (e), and (f), as applicable.
257.22 	(c) Case managers without a bachelor's degree or with a bachelor's degree that is not in 
257.23 	one of the behavioral sciences or related fields must meet one of the requirements in clauses 
257.24 	(1) to (3) (5):
257.25 	(1) have three or four years of experience as a case manager associate as defined in this 
257.26 	section;
257.27 	(2) be a registered nurse without a bachelor's degree and have a combination of 
257.28 	specialized training in psychiatry and work experience consisting of community interaction 
257.29 	and involvement or community discharge planning in a mental health setting totaling three 
257.30 	years; or
258.1 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
258.2 	Service waiver provision and meet the continuing education and mentoring requirements 
258.3 	in this section.;
258.4 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
258.5 	characteristics and needs of adults with serious and persistent mental illness that is consistent 
258.6 	with national practice standards; or
258.7 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
258.8 	of the characteristics and needs of adults with serious and persistent mental illness, consistent 
258.9 	with national practice standards.
258.10 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
258.11 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
258.12 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
258.13 	supervision regarding individual service delivery with a case management supervisor. The 
258.14 	remaining 26 hours of supervision may be provided by a case manager with two years of 
258.15 	experience. Group supervision may not constitute more than one-half of the required 
258.16 	supervision hours. Clinical supervision must be documented in the client record.
258.17 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
258.18 	services to adults with mental illness must:
258.19 	(1) receive clinical supervision regarding individual service delivery from a mental 
258.20 	health professional at least one hour per week until the requirement of 2,000 hours of 
258.21 	experience is met; and
258.22 	(2) complete 40 hours of training approved by the commissioner in case management 
258.23 	skills and the characteristics and needs of adults with serious and persistent mental illness.
258.24 	(f) A case manager who is not licensed, registered, or certified by a health-related 
258.25 	licensing board must receive 30 hours of continuing education and training in mental illness 
258.26 	and mental health services every two years.
258.27 	(g) A case manager associate (CMA) must:
258.28 	(1) work under the direction of a case manager or case management supervisor;
258.29 	(2) be at least 21 years of age;
258.30 	(3) have at least a high school diploma or its equivalent; and
258.31 	(4) meet one of the following criteria:
258.32 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
259.1 	(ii) be a certified peer specialist under section 256B.0615;
259.2 	(iii) be a registered nurse without a bachelor's degree;
259.3 	(iv) within the previous ten years, have three years of life experience with serious and 
259.4 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
259.5 	disturbance as defined in section 245.4871, subdivision 6; or have three years life experience 
259.6 	as a primary caregiver to an adult with serious and persistent mental illness within the 
259.7 	previous ten years;
259.8 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
259.9 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
259.10 	persons with mental illness.
259.11 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
259.12 	after four years of supervised work experience as a case manager associate. Individuals 
259.13 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
259.14 	experience as a case manager associate.
259.15 	(h) A case management associate must meet the following supervision, mentoring, and 
259.16 	continuing education requirements:
259.17 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
259.18 	(2) receive at least 40 hours of annual continuing education in mental illness and mental 
259.19 	health services annually; andaccording to the following schedule, based on years of service 
259.20 	as a case management associate:
259.21 	(i) at least 40 hours in the first year;
259.22 	(ii) at least 30 hours in the second year;
259.23 	(iii) at least 20 hours in the third year; and
259.24 	(iv) at least 20 hours in the fourth year; and
259.25 	(3) receive at least five four hours of mentoring supervision per week month from a case 
259.26 	management mentor supervisor.
259.27 	A "case management mentor" means a qualified, practicing case manager or case management 
259.28 	supervisor who teaches or advises and provides intensive training and clinical supervision 
259.29 	to one or more case manager associates. Mentoring may occur while providing direct services 
259.30 	to consumers in the office or in the field and may be provided to individuals or groups of 
260.1 	case manager associates. At least two mentoring hours per week must be individual and 
260.2 	face-to-face.
260.3 	(i) A case management supervisor must meet the criteria for mental health professionals, 
260.4 	as specified in subdivision 18.
260.5 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
260.6 	provide case management services to adult immigrants with serious and persistent mental 
260.7 	illness who are members of the same ethnic group as the case manager if the person:
260.8 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
260.9 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
260.10 	limited to, social work, psychology, or nursing from an accredited college or university;
260.11 	(2) completes 40 hours of training as specified in this subdivision; and
260.12 	(3) receives clinical supervision at least once a week until the requirements of this 
260.13 	subdivision are met.

260.14 	Sec. 3. Minnesota Statutes 2024, section 245.462, subdivision 20, is amended to read:
260.15 		Subd. 20.Mental illness. (a) "Mental illness" means an organic disorder of the brain or 
260.16 	a clinically significant disorder of thought, mood, perception, orientation, memory, or 
260.17 	behavior that is detailed in a diagnostic codes list published by the commissioner, and that 
260.18 	seriously limits a person's capacity to function in primary aspects of daily living such as 
260.19 	personal relations, living arrangements, work, and recreation.
260.20 	(b) An "adult with acute mental illness" means an adult who has a mental illness that is 
260.21 	serious enough to require prompt intervention.
260.22 	(c) For purposes of enrolling in case management and community support services, a 
260.23 	"person with serious and persistent mental illness" means an adult who has a mental illness 
260.24 	and meets at least one of the following criteria:
260.25 	(1) the adult has undergone two one or more episodes of inpatient, residential, or crisis 
260.26 	residential care for a mental illness within the preceding 24 12 months;
260.27 	(2) the adult has experienced a continuous psychiatric hospitalization or residential 
260.28 	treatment exceeding six months' duration within the preceding 12 months;
260.29 	(3) the adult has been treated by a crisis team two or more times within the preceding 
260.30 	24 months;
260.31 	(4) the adult:
261.1 	(i) has a diagnosis of schizophrenia, bipolar disorder, major depression, schizoaffective 
261.2 	disorder, posttraumatic stress disorder, generalized anxiety disorder, panic disorder, eating 
261.3 	disorder, or borderline personality disorder;
261.4 	(ii) indicates a significant impairment in functioning; and
261.5 	(iii) has a written opinion from a mental health professional, in the last three years, 
261.6 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
261.7 	residential treatment, of a frequency described in clause (1) or (2), or the need for in-home 
261.8 	services to remain in one's home, unless ongoing case management or community support 
261.9 	services are provided;
261.10 	(5) the adult has, in the last threefive years, been committed by a court as a person who 
261.11 	is mentally ill with a mental illness under chapter 253B, or the adult's commitment has been 
261.12 	stayed or continued; or
261.13 	(6) the adult (i) was eligible under clauses (1) to (5), but the specified time period has 
261.14 	expired or the adult was eligible as a child under section 245.4871, subdivision 6; and (ii) 
261.15 	has a written opinion from a mental health professional, in the last three years, stating that 
261.16 	the adult is reasonably likely to have future episodes requiring inpatient or residential 
261.17 	treatment, of a frequency described in clause (1) or (2), unless ongoing case management 
261.18 	or community support services are provided; or
261.19 	(7) (6) the adult was eligible as a child under section 245.4871, subdivision 6, and is 
261.20 	age 21 or younger.
261.21 	(d) For purposes of enrolling in case management and community support services, a 
261.22 	"person with a complex post-traumatic stress disorder" or "C-PTSD" means an adult who 
261.23 	has a mental illness and meets the following criteria:
261.24 	(1) the adult has post-traumatic stress disorder (PTSD) symptoms that significantly 
261.25 	interfere with daily functioning related to intergenerational trauma, racial trauma, or 
261.26 	unresolved historical grief; and
261.27 	(2) the adult has a written opinion from a mental health professional that includes 
261.28 	documentation of:
261.29 	(i) culturally sensitive assessments or screenings and identification of intergenerational 
261.30 	trauma, racial trauma, or unresolved historical grief;
261.31 	(ii) significant impairment in functioning due to the PTSD symptoms that meet C-PTSD 
261.32 	condition eligibility; and
262.1 	(iii) increasing concerns within the last three years that indicates the adult is at a 
262.2 	reasonable likelihood of experiencing significant episodes of PTSD with increased frequency, 
262.3 	impacting daily functioning unless mitigated by targeted case management or community 
262.4 	support services.
262.5 	(e) Adults may continue to receive case management or community support services if, 
262.6 	in the written opinion of a mental health professional, the person needs case management 
262.7 	or community support services to maintain the person's recovery.

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

262.10 	Sec. 4. Minnesota Statutes 2024, section 245.4661, subdivision 9, is amended to read:
262.11 		Subd. 9.Services and programs. (a) The following three distinct grant programs are 
262.12 	funded under this section:
262.13 	(1) mental health crisis services;
262.14 	(2) housing with supports for adults with serious mental illness; and
262.15 	(3) projects for assistance in transitioning from homelessness (PATH program).
262.16 	(b) In addition, the following are eligible for grant funds:
262.17 	(1) community education and prevention;
262.18 	(2) client outreach;
262.19 	(3) early identification and intervention;
262.20 	(4) adult outpatient diagnostic assessment and psychological testing;
262.21 	(5) peer support services;
262.22 	(6) community support program services (CSP);
262.23 	(7) adult residential crisis stabilization;
262.24 	(8) supported employment;
262.25 	(9) assertive community treatment (ACT);
262.26 	(10) housing subsidies;
262.27 	(11) basic living, social skills, and community intervention;
262.28 	(12) emergency response services;
262.29 	(13) adult outpatient psychotherapy;
263.1 	(14) adult outpatient medication management;
263.2 	(15) adult mobile crisis services, including the purchase and renovation of vehicles by 
263.3 	mobile crisis teams in order to provide protected transport under section 256B.0625, 
263.4 	subdivision 17, paragraph (l), clause (6);
263.5 	(16) adult day treatment;
263.6 	(17) partial hospitalization;
263.7 	(18) adult residential treatment;
263.8 	(19) adult mental health targeted case management; and
263.9 	(20) transportation.

263.10 	Sec. 5. Minnesota Statutes 2024, section 245.467, subdivision 4, is amended to read:
263.11 		Subd. 4.Referral for case management. Each provider of emergency services, day 
263.12 	treatment services, outpatient treatment, community support services, residential treatment, 
263.13 	acute care hospital inpatient treatment, or regional treatment center inpatient treatment must 
263.14 	inform each of its clients with serious and persistent mental illness or a complex 
263.15 	post-traumatic stress disorder of the availability and potential benefits to the client of case 
263.16 	management. If the client consents, the provider must refer the client by notifying the county 
263.17 	employee designated by the county board to coordinate case management activities of the 
263.18 	client's name and address and by informing the client of whom to contact to request case 
263.19 	management. The provider must document compliance with this subdivision in the client's 
263.20 	record.

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

263.23 	Sec. 6. Minnesota Statutes 2024, section 245.469, is amended to read:
263.24 	245.469 EMERGENCY SERVICES.
263.25 		Subdivision 1.Availability of emergency services. (a) County boards must provide or 
263.26 	contract for enough emergency services within the county to meet the needs of adults, 
263.27 	children, and families in the county who are experiencing an emotional crisis or mental 
263.28 	illness. Clients must not be charged for services provided. Emergency service providers 
263.29 	must not delay the timely provision of emergency services to a client because of the 
263.30 	unwillingness or inability of the client to pay for services meet the qualifications under 
264.1 	section 256B.0624, subdivision 4. Emergency services must include assessment, crisis 
264.2 	intervention, and appropriate case disposition. Emergency services must:
264.3 	(1) promote the safety and emotional stability of each client;
264.4 	(2) minimize further deterioration of each client;
264.5 	(3) help each client to obtain ongoing care and treatment;
264.6 	(4) prevent placement in settings that are more intensive, costly, or restrictive than 
264.7 	necessary and appropriate to meet client needs; and
264.8 	(5) provide support, psychoeducation, and referrals to each client's family members, 
264.9 	service providers, and other third parties on behalf of the client in need of emergency 
264.10 	services.
264.11 	(b) If a county provides engagement services under section 253B.041, the county's 
264.12 	emergency service providers must refer clients to engagement services when the client 
264.13 	meets the criteria for engagement services.
264.14 		Subd. 2.Specific requirements. (a) The county board shall require that all service 
264.15 	providers of emergency services to adults or children with mental illness provide immediate 
264.16 	direct access to a mental health professional during regular business hours. For evenings, 
264.17 	weekends, and holidays, the service may be by direct toll-free telephone access to a mental 
264.18 	health professional, clinical trainee, or mental health practitioner.
264.19 	(b) The commissioner may waive the requirement in paragraph (a) that the evening, 
264.20 	weekend, and holiday service be provided by a mental health professional, clinical trainee, 
264.21 	or mental health practitioner if the county documents that:
264.22 	(1) mental health professionals, clinical trainees, or mental health practitioners are 
264.23 	unavailable to provide this service;
264.24 	(2) services are provided by a designated person with training in human services who 
264.25 	receives treatment supervision from a mental health professional; and
264.26 	(3) the service provider is not also the provider of fire and public safety emergency 
264.27 	services.
264.28 	(c) The commissioner may waive the requirement in paragraph (b), clause (3), that the 
264.29 	evening, weekend, and holiday service not be provided by the provider of fire and public 
264.30 	safety emergency services if:
264.31 	(1) every person who will be providing the first telephone contact has received at least 
264.32 	eight hours of training on emergency mental health services approved by the commissioner;
265.1 	(2) every person who will be providing the first telephone contact will annually receive 
265.2 	at least four hours of continued training on emergency mental health services approved by 
265.3 	the commissioner;
265.4 	(3) the local social service agency has provided public education about available 
265.5 	emergency mental health services and can assure potential users of emergency services that 
265.6 	their calls will be handled appropriately;
265.7 	(4) the local social service agency agrees to provide the commissioner with accurate 
265.8 	data on the number of emergency mental health service calls received;
265.9 	(5) the local social service agency agrees to monitor the frequency and quality of 
265.10 	emergency services; and
265.11 	(6) the local social service agency describes how it will comply with paragraph (d).
265.12 	(d) Whenever emergency service during nonbusiness hours is provided by anyone other 
265.13 	than a mental health professional, a mental health professional must be available on call for 
265.14 	an emergency assessment and crisis intervention services, and must be available for at least 
265.15 	telephone consultation within 30 minutes.
265.16 		Subd. 3.Mental health crisis services. The commissioner of human services shall 
265.17 	increase access to mental health crisis services for children and adults. In order to increase 
265.18 	access, the commissioner must:
265.19 	(1) develop a central phone number where calls can be routed to the appropriate crisis 
265.20 	services promote the 988 Lifeline;
265.21 	(2) provide telephone consultation 24 hours a day to mobile crisis teams who are serving 
265.22 	people with traumatic brain injury or intellectual disabilities who are experiencing a mental 
265.23 	health crisis;
265.24 	(3) expand crisis services across the state, including rural areas of the state and examining 
265.25 	access per population;
265.26 	(4) establish and implement state standards and requirements for crisis services as outlined 
265.27 	in section 256B.0624; and
265.28 	(5) provide grants to adult mental health initiatives, counties, tribes, or community mental 
265.29 	health providers to establish new mental health crisis residential service capacity.
265.30 	Priority will be given to regions that do not have a mental health crisis residential services 
265.31 	program, do not have an inpatient psychiatric unit within the region, do not have an inpatient 
265.32 	psychiatric unit within 90 miles, or have a demonstrated need based on the number of crisis 
266.1 	residential or intensive residential treatment beds available to meet the needs of the residents 
266.2 	in the region. At least 50 percent of the funds must be distributed to programs in rural 
266.3 	Minnesota. Grant funds may be used for start-up costs, including but not limited to 
266.4 	renovations, furnishings, and staff training. Grant applications shall provide details on how 
266.5 	the intended service will address identified needs and shall demonstrate collaboration with 
266.6 	crisis teams, other mental health providers, hospitals, and police.

266.7 	Sec. 7. Minnesota Statutes 2024, section 245.4711, subdivision 1, is amended to read:
266.8 		Subdivision 1.Availability of case management services. (a) By January 1, 1989, The 
266.9 	county board shall provide case management services for all adults with serious and persistent 
266.10 	mental illness or a complex post-traumatic stress disorder who are residents of the county 
266.11 	and who request or consent to the services and to each adult for whom the court appoints a 
266.12 	case manager. Staffing ratios must be sufficient to serve the needs of the clients. The case 
266.13 	manager must meet the requirements in section 245.462, subdivision 4.
266.14 	(b) Case management services provided to adults with serious and persistent mental 
266.15 	illness or a complex post-traumatic stress disorder eligible for medical assistance must be 
266.16 	billed to the medical assistance program under sections 256B.02, subdivision 8, and 
266.17 	256B.0625.
266.18 	(c) Case management services are eligible for reimbursement under the medical assistance 
266.19 	program. Costs associated with mentoring, supervision, and continuing education may be 
266.20 	included in the reimbursement rate methodology used for case management services under 
266.21 	the medical assistance program.

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

266.24 	Sec. 8. Minnesota Statutes 2024, section 245.4711, subdivision 4, is amended to read:
266.25 		Subd. 4.Individual community support plan. (a) The case manager must develop an 
266.26 	individual community support plan for each adult that incorporates the client's individual 
266.27 	treatment plan. The individual treatment plan may not be a substitute for the development 
266.28 	of an individual community support plan. The individual community support plan must be 
266.29 	developed within 30 days of client intake and reviewed at least every 180 days after it is 
266.30 	developed, unless the case manager receives a written request from the client or the client's 
266.31 	family for a review of the plan every 90 days after it is developed. The case manager is 
266.32 	responsible for developing the individual community support plan based on a diagnostic 
266.33 	assessment and a functional assessment and for implementing and monitoring the delivery 
267.1 	of services according to the individual community support plan. To the extent possible, the 
267.2 	adult with serious and persistent mental illness or a complex post-traumatic stress disorder, 
267.3 	the person's family, advocates, service providers, and significant others must be involved 
267.4 	in all phases of development and implementation of the individual community support plan.
267.5 	(b) The client's individual community support plan must state:
267.6 	(1) the goals of each service;
267.7 	(2) the activities for accomplishing each goal;
267.8 	(3) a schedule for each activity; and
267.9 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
267.10 	need and the implementation of the individual community support plan.

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

267.13 	Sec. 9. Minnesota Statutes 2024, section 245.4712, subdivision 1, is amended to read:
267.14 		Subdivision 1.Availability of community support services. (a) County boards must 
267.15 	provide or contract for sufficient community support services within the county to meet the 
267.16 	needs of adults with serious and persistent mental illness or a complex post-traumatic stress 
267.17 	disorder who are residents of the county. Adults may be required to pay a fee according to 
267.18 	section 245.481. The community support services program must be designed to improve 
267.19 	the ability of adults with serious and persistent mental illness or a complex post-traumatic 
267.20 	stress disorder to:
267.21 	(1) find and maintain competitive employment;
267.22 	(2) handle basic activities of daily living;
267.23 	(3) participate in leisure time activities;
267.24 	(4) set goals and plans; and
267.25 	(5) obtain and maintain appropriate living arrangements.
267.26 	The community support services program must also be designed to reduce the need for 
267.27 	and use of more intensive, costly, or restrictive placements both in number of admissions 
267.28 	and length of stay.
267.29 	(b) Community support services are those services that are supportive in nature and not 
267.30 	necessarily treatment oriented, and include:
268.1 	(1) conducting outreach activities such as home visits, health and wellness checks, and 
268.2 	problem solving;
268.3 	(2) connecting people to resources to meet their basic needs;
268.4 	(3) finding, securing, and supporting people in their housing;
268.5 	(4) attaining and maintaining health insurance benefits;
268.6 	(5) assisting with job applications, finding and maintaining employment, and securing 
268.7 	a stable financial situation;
268.8 	(6) fostering social support, including support groups, mentoring, peer support, and other 
268.9 	efforts to prevent isolation and promote recovery; and
268.10 	(7) educating about mental illness, treatment, and recovery.
268.11 	(c) Community support services shall use all available funding streams. The county shall 
268.12 	maintain the level of expenditures for this program, as required under section 245.4835. 
268.13 	County boards must continue to provide funds for those services not covered by other 
268.14 	funding streams and to maintain an infrastructure to carry out these services. The county is 
268.15 	encouraged to fund evidence-based practices such as Individual Placement and Supported 
268.16 	Employment and Illness Management and Recovery.
268.17 	(d) The commissioner shall collect data on community support services programs, 
268.18 	including, but not limited to, demographic information such as age, sex, race, the number 
268.19 	of people served, and information related to housing, employment, hospitalization, symptoms, 
268.20 	and satisfaction with services.

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

268.23 	Sec. 10. Minnesota Statutes 2024, section 245.4712, subdivision 3, is amended to read:
268.24 		Subd. 3.Benefits assistance. The county board must offer to help adults with serious 
268.25 	and persistent mental illness or a complex post-traumatic stress disorder in applying for 
268.26 	state and federal benefits, including Supplemental Security Income, medical assistance, 
268.27 	Medicare, general assistance, and Minnesota supplemental aid. The help must be offered 
268.28 	as part of the community support program available to adults with serious and persistent 
268.29 	mental illness or a complex post-traumatic stress disorder for whom the county is financially 
268.30 	responsible and who may qualify for these benefits.

269.1 	Sec. 11. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
269.2 		Subd. 4.Case management service provider. (a) "Case management service provider" 
269.3 	means a case manager or case manager associate employed by the county or other entity 
269.4 	authorized by the county board to provide case management services specified in subdivision 
269.5 	3 for the child with severe emotional disturbance and the child's family.
269.6 	(b) A case manager must:
269.7 	(1) have experience and training in working with children;
269.8 	(2) be a mental health practitioner under section 245I.04, subdivision 4, or have at least 
269.9 	a bachelor's degree in one of the behavioral sciences or a related field including, but not 
269.10 	limited to, social work, psychology, or nursing from an accredited college or university or 
269.11 	meet the requirements of paragraph (d);
269.12 	(3) have experience and training in identifying and assessing a wide range of children's 
269.13 	needs;
269.14 	(4) be knowledgeable about local community resources and how to use those resources 
269.15 	for the benefit of children and their families; and
269.16 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
269.17 	and (g), as applicable.
269.18 	(c) A case manager may be a member of any professional discipline that is part of the 
269.19 	local system of care for children established by the county board.
269.20 	(d) A case manager without a bachelor's degree, with a bachelor's degree that is not in 
269.21 	one of the behavioral sciences or related fields, or who is not a mental health practitioner 
269.22 	and does not have a bachelor's degree must meet one of the requirements in clauses (1) to 
269.23 	(3) (5):
269.24 	(1) have three or four years of experience as a case manager associate;
269.25 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
269.26 	training in psychiatry and work experience consisting of community interaction and 
269.27 	involvement or community discharge planning in a mental health setting totaling three years; 
269.28 	or
269.29 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
269.30 	Services waiver provision and meets the continuing education, supervision, and mentoring 
269.31 	requirements in this section.;
270.1 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
270.2 	characteristics and needs of children with severe emotional disturbance, consistent with 
270.3 	national practices standards; or
270.4 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
270.5 	of the characteristics and needs of children with severe emotional disturbance, consistent 
270.6 	with national practices standards.
270.7 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
270.8 	of mental health services to children must receive regular ongoing supervision and clinical 
270.9 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
270.10 	supervision regarding individual service delivery with a case management supervisor. The 
270.11 	other 26 hours of supervision may be provided by a case manager with two years of 
270.12 	experience. Group supervision may not constitute more than one-half of the required 
270.13 	supervision hours.
270.14 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
270.15 	mental health services to children with emotional disturbance must:
270.16 	(1) begin 40 hours of training approved by the commissioner of human services in case 
270.17 	management skills and in the characteristics and needs of children with severe emotional 
270.18 	disturbance before beginning to provide case management services; and
270.19 	(2) receive clinical supervision regarding individual service delivery from a mental 
270.20 	health professional at least one hour each week until the requirement of 2,000 hours of 
270.21 	experience is met.
270.22 	(g) A case manager who is not licensed, registered, or certified by a health-related 
270.23 	licensing board must receive 30 hours of continuing education and training in severe 
270.24 	emotional disturbance and mental health services every two years.
270.25 	(h) Clinical supervision must be documented in the child's record. When the case manager 
270.26 	is not a mental health professional, the county board must provide or contract for needed 
270.27 	clinical supervision.
270.28 	(i) The county board must ensure that the case manager has the freedom to access and 
270.29 	coordinate the services within the local system of care that are needed by the child.
270.30 	(j) A case manager associate (CMA) must:
270.31 	(1) work under the direction of a case manager or case management supervisor;
270.32 	(2) be at least 21 years of age;
271.1 	(3) have at least a high school diploma or its equivalent; and
271.2 	(4) meet one of the following criteria:
271.3 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
271.4 	(ii) be a registered nurse without a bachelor's degree;
271.5 	(iii) have three years of life experience as a primary caregiver to a child with serious 
271.6 	emotional disturbance as defined in subdivision 6 within the previous ten years;
271.7 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
271.8 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
271.9 	services to children with emotional disturbances; hours worked as a mental health behavioral 
271.10 	aide I or II under section 256B.0943, subdivision 7, may count toward the 6,000 hours of 
271.11 	supervised work experience.
271.12 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
271.13 	after four years of supervised work experience as a case manager associate. Individuals 
271.14 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
271.15 	experience as a case manager associate.
271.16 	(k) Case manager associates must meet the following supervision, mentoring, and 
271.17 	continuing education requirements;
271.18 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
271.19 	(2) receive at least 40 hours of continuing education in severe emotional disturbance 
271.20 	and mental health service annually; and
271.21 	(3) receive at least five hours of mentoring per week from a case management mentor. 
271.22 	A "case management mentor" means a qualified, practicing case manager or case management 
271.23 	supervisor who teaches or advises and provides intensive training and clinical supervision 
271.24 	to one or more case manager associates. Mentoring may occur while providing direct services 
271.25 	to consumers in the office or in the field and may be provided to individuals or groups of 
271.26 	case manager associates. At least two mentoring hours per week must be individual and 
271.27 	face-to-face.
271.28 	(l) A case management supervisor must meet the criteria for a mental health professional 
271.29 	as specified in subdivision 27.
271.30 	(m) An immigrant who does not have the qualifications specified in this subdivision 
271.31 	may provide case management services to child immigrants with severe emotional 
271.32 	disturbance of the same ethnic group as the immigrant if the person:
272.1 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
272.2 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
272.3 	or university;
272.4 	(2) completes 40 hours of training as specified in this subdivision; and
272.5 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
272.6 	a bachelor's degree and 2,000 hours of supervised experience are met.

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

272.8 	Sec. 12. Minnesota Statutes 2024, section 245.4871, is amended by adding a subdivision 
272.9 	to read:
272.10 		Subd. 7a.Clinical supervision. "Clinical supervision" means the oversight responsibility 
272.11 	for individual treatment plans and individual mental health service delivery, including 
272.12 	oversight provided by the case manager. Clinical supervision must be provided by a mental 
272.13 	health professional. The supervising mental health professional must cosign an individual 
272.14 	treatment plan, and their name must be documented in the client's record.

272.15 	Sec. 13. Minnesota Statutes 2024, section 245.4881, subdivision 3, is amended to read:
272.16 		Subd. 3.Duties of case manager. (a) Upon a determination of eligibility for case 
272.17 	management services, the case manager shall develop an individual family community 
272.18 	support plan for a child as specified in subdivision 4, review the child's progress, and monitor 
272.19 	the provision of services, and if the child and parent or legal guardian consent, complete a 
272.20 	written functional assessment as defined by section 245.4871, subdivision 18a. If services 
272.21 	are to be provided in a host county that is not the county of financial responsibility, the case 
272.22 	manager shall consult with the host county and obtain a letter demonstrating the concurrence 
272.23 	of the host county regarding the provision of services.
272.24 	(b) The case manager shall note in the child's record the services needed by the child 
272.25 	and the child's family, the services requested by the family, services that are not available, 
272.26 	and the unmet needs of the child and child's family. The case manager shall note this 
272.27 	provision in the child's record.

272.28 	Sec. 14. Minnesota Statutes 2024, section 245.4901, subdivision 3, is amended to read:
272.29 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
272.30 	and related expenses may include but are not limited to:
273.1 	(1) identifying and diagnosing mental health conditions and substance use disorders of 
273.2 	students;
273.3 	(2) delivering mental health and substance use disorder treatment and services to students 
273.4 	and their families, including via telehealth consistent with section 256B.0625, subdivision 
273.5 	3b;
273.6 	(3) supporting families in meeting their child's needs, including accessing needed mental 
273.7 	health services to support the parent in caregiving and navigating health care, social service, 
273.8 	and juvenile justice systems;
273.9 	(4) providing transportation for students receiving school-linked behavioral health 
273.10 	services when school is not in session;
273.11 	(5) building the capacity of schools to meet the needs of students with mental health and 
273.12 	substance use disorder concerns, including school staff development activities for licensed 
273.13 	and nonlicensed staff; and
273.14 	(6) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
273.15 	site fees in order to deliver school-linked behavioral health services via telehealth.
273.16 	(b) Grantees shall obtain all available third-party reimbursement sources as a condition 
273.17 	of receiving a grant. For purposes of this grant program, a third-party reimbursement source 
273.18 	excludes a public school as defined in section 120A.20, subdivision 1. Grantees shall serve 
273.19 	students regardless of health coverage status or ability to pay.

273.20 	Sec. 15. [245.4904] INTERMEDIATE SCHOOL DISTRICT BEHAVIORAL 
273.21 	HEALTH GRANT PROGRAM.
273.22 		Subdivision 1.Establishment. The commissioner of human services must establish a 
273.23 	grant program to improve behavioral health outcomes for youth attending a qualifying 
273.24 	school unit and to build the capacity of schools to support student and teacher needs in the 
273.25 	classroom. For purposes of this section, "qualifying school unit" means an intermediate 
273.26 	school district organized under section 136D.01.
273.27 		Subd. 2.Eligible applicants. An eligible applicant is an intermediate school district 
273.28 	organized under section 136D.01, and a partner entity or provider that has demonstrated 
273.29 	capacity to serve the youth identified in subdivision 1 that is:
273.30 	(1) a mental health clinic certified under section 245I.20;
273.31 	(2) a community mental health center under section 256B.0625, subdivision 5;
274.1 	(3) an Indian health service facility or a facility owned and operated by a Tribe or Tribal 
274.2 	organization operating under United States Code, title 25, section 5321;
274.3 	(4) a provider of children's therapeutic services and supports as defined in section 
274.4 	256B.0943;
274.5 	(5) enrolled in medical assistance as a mental health or substance use disorder provider 
274.6 	agency and employs at least two full-time equivalent mental health professionals qualified 
274.7 	according to section 245I.04, subdivision 2, or two alcohol and drug counselors licensed or 
274.8 	exempt from licensure under chapter 148F who are qualified to provide clinical services to 
274.9 	children and families;
274.10 	(6) licensed under chapter 245G and in compliance with the applicable requirements in 
274.11 	chapters 245A, 245C, and 260E; section 626.557; and Minnesota Rules, chapter 9544; or
274.12 	(7) a licensed professional in private practice as defined in section 245G.01, subdivision 
274.13 	17, who meets the requirements of section 254B.05, subdivision 1, paragraph (b).
274.14 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
274.15 	and related expenses include but are not limited to:
274.16 	(1) identifying mental health conditions and substance use disorders of students;
274.17 	(2) delivering mental health and substance use disorder treatment and supportive services 
274.18 	to students and their families within the classroom, including via telehealth consistent with 
274.19 	section 256B.0625, subdivision 3b;
274.20 	(3) delivering therapeutic interventions and customizing an array of supplementary 
274.21 	learning experiences for students;
274.22 	(4) supporting families in meeting their child's needs, including navigating health care, 
274.23 	social service, and juvenile justice systems;
274.24 	(5) providing transportation for students receiving behavioral health services when school 
274.25 	is not in session;
274.26 	(6) building the capacity of schools to meet the needs of students with mental health and 
274.27 	substance use disorder concerns, including school staff development activities for licensed 
274.28 	and nonlicensed staff; and
274.29 	(7) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
274.30 	site fees in order to deliver school-linked behavioral health services via telehealth.
274.31 	(b) Grantees must obtain all available third-party reimbursement sources as a condition 
274.32 	of receiving grant funds. For purposes of this grant program, a third-party reimbursement 
275.1 	source does not include a public school as defined in section 120A.20, subdivision 1. Grantees 
275.2 	shall serve students regardless of health coverage status or ability to pay.
275.3 		Subd. 4.Calculating the share of the appropriation. (a) Grants must be awarded to 
275.4 	qualifying school units proportionately.
275.5 	(b) The commissioner must calculate the share of the appropriation to be used in each 
275.6 	qualifying school unit by multiplying the total appropriation going to the grantees by the 
275.7 	qualifying school unit's average daily membership in a setting of federal instructional level 
275.8 	4 or higher and then dividing by the total average daily membership in a setting of federal 
275.9 	instructional level 4 or higher for the same year for all qualifying school units.
275.10 		Subd. 5.Data collection and outcome measurement. Grantees must provide data to 
275.11 	the commissioner for the purpose of evaluating the Intermediate School District Behavioral 
275.12 	Health Innovation grant program. The commissioner must consult with grantees to develop 
275.13 	outcome measures for program capacity and performance.

275.14 	Sec. 16. Minnesota Statutes 2024, section 245.4907, subdivision 3, is amended to read:
275.15 		Subd. 3.Allowable grant activities. Grantees must use grant funding to provide training 
275.16 	for mental health certified family peer specialists specialist candidates and continuing 
275.17 	education to certified family peer specialists as specified in section 256B.0616, subdivision 
275.18 	5.

275.19 	Sec. 17. Minnesota Statutes 2024, section 245.50, subdivision 3, is amended to read:
275.20 		Subd. 3.Exceptions. A contract may not be entered into under this section for services 
275.21 	to persons who:
275.22 	(1) are serving a sentence after conviction of a criminal offense;
275.23 	(2) are on probation or parole;
275.24 	(3) (2) are the subject of a presentence investigation; or
275.25 	(4) (3) have been committed involuntarily in Minnesota under chapter 253B for treatment 
275.26 	of mental illness or chemical dependency, except as provided under subdivision 5.

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

276.1 	Sec. 18. Minnesota Statutes 2024, section 245.50, is amended by adding a subdivision to 
276.2 	read:
276.3 		Subd. 6.Contract notice. A Minnesota mental health, chemical health, or detoxification 
276.4 	agency or facility entering into a contract with a bordering state under this section must, 
276.5 	within 30 days of the contract's effective date, provide the commissioner of human services 
276.6 	with a copy of the contract. If the contract is amended, the agency or facility must provide 
276.7 	the commissioner with a copy of each amendment within 30 days of the amendment's 
276.8 	effective date.

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

276.10 	Sec. 19. Minnesota Statutes 2024, section 245I.05, subdivision 3, is amended to read:
276.11 		Subd. 3.Initial training. (a) A staff person must receive training about:
276.12 	(1) vulnerable adult maltreatment under section 245A.65, subdivision 3; and
276.13 	(2) the maltreatment of minor reporting requirements and definitions in chapter 260E
276.14 	within 72 hours of first providing direct contact services to a client.
276.15 	(b) Before providing direct contact services to a client, a staff person must receive training 
276.16 	about:
276.17 	(1) client rights and protections under section 245I.12;
276.18 	(2) the Minnesota Health Records Act, including client confidentiality, family engagement 
276.19 	under section 144.294, and client privacy;
276.20 	(3) emergency procedures that the staff person must follow when responding to a fire, 
276.21 	inclement weather, a report of a missing person, and a behavioral or medical emergency;
276.22 	(4) specific activities and job functions for which the staff person is responsible, including 
276.23 	the license holder's program policies and procedures applicable to the staff person's position;
276.24 	(5) professional boundaries that the staff person must maintain; and
276.25 	(6) specific needs of each client to whom the staff person will be providing direct contact 
276.26 	services, including each client's developmental status, cognitive functioning, and physical 
276.27 	and mental abilities.
276.28 	(c) Before providing direct contact services to a client, a mental health rehabilitation 
276.29 	worker, mental health behavioral aide, or mental health practitioner required to receive the 
276.30 	training according to section 245I.04, subdivision 4, must receive 30 hours of training about:
276.31 	(1) mental illnesses;
277.1 	(2) client recovery and resiliency;
277.2 	(3) mental health de-escalation techniques;
277.3 	(4) co-occurring mental illness and substance use disorders; and
277.4 	(5) psychotropic medications and medication side effects, including tardive dyskinesia.
277.5 	(d) Within 90 days of first providing direct contact services to an adult client, mental 
277.6 	health practitioner, mental health certified peer specialist, or mental health rehabilitation 
277.7 	worker must receive training about:
277.8 	(1) trauma-informed care and secondary trauma;
277.9 	(2) person-centered individual treatment plans, including seeking partnerships with 
277.10 	family and other natural supports;
277.11 	(3) co-occurring substance use disorders; and
277.12 	(4) culturally responsive treatment practices.
277.13 	(e) Within 90 days of first providing direct contact services to a child client, mental 
277.14 	health practitioner, mental health certified family peer specialist, mental health certified 
277.15 	peer specialist, or mental health behavioral aide must receive training about the topics in 
277.16 	clauses (1) to (5). This training must address the developmental characteristics of each child 
277.17 	served by the license holder and address the needs of each child in the context of the child's 
277.18 	family, support system, and culture. Training topics must include:
277.19 	(1) trauma-informed care and secondary trauma, including adverse childhood experiences 
277.20 	(ACEs);
277.21 	(2) family-centered treatment plan development, including seeking partnership with a 
277.22 	child client's family and other natural supports;
277.23 	(3) mental illness and co-occurring substance use disorders in family systems;
277.24 	(4) culturally responsive treatment practices; and
277.25 	(5) child development, including cognitive functioning, and physical and mental abilities.
277.26 	(f) For a mental health behavioral aide, the training under paragraph (e) must include 
277.27 	parent team training using a curriculum approved by the commissioner.

277.28 	Sec. 20. Minnesota Statutes 2024, section 245I.05, subdivision 5, is amended to read:
277.29 		Subd. 5.Additional training for medication administration. (a) Prior to administering 
277.30 	medications to a client under delegated authority or observing a client self-administer 
278.1 	medications, a staff person who is not a licensed prescriber, registered nurse, or licensed 
278.2 	practical nurse qualified under section 148.171, subdivision 8, must receive training about 
278.3 	psychotropic medications, side effects including tardive dyskinesia, and medication 
278.4 	management.
278.5 	(b) Prior to administering medications to a client under delegated authority, a staff person 
278.6 	must successfully complete a:
278.7 	(1) medication administration training program for unlicensed personnel through an 
278.8 	accredited Minnesota postsecondary educational institution with completion of the course 
278.9 	documented in writing and placed in the staff person's personnel file; or
278.10 	(2) formalized training program taught by a registered nurse or licensed prescriber that 
278.11 	is offered by the license holder. A staff person's successful completion of the formalized 
278.12 	training program must include direct observation of the staff person to determine the staff 
278.13 	person's areas of competency.

278.14 	Sec. 21. Minnesota Statutes 2024, section 245I.06, subdivision 3, is amended to read:
278.15 		Subd. 3.Treatment supervision and direct observation of mental health 
278.16 	rehabilitation workers and mental health behavioral aides. (a) A mental health behavioral 
278.17 	aide or a mental health rehabilitation worker must receive direct observation from a mental 
278.18 	health professional, clinical trainee, certified rehabilitation specialist, or mental health 
278.19 	practitioner while the mental health behavioral aide or mental health rehabilitation worker 
278.20 	provides treatment services to clients, no less than twice per month for the first six months 
278.21 	of employment and once per month thereafter. The staff person performing the direct 
278.22 	observation must approve of the progress note for the observed treatment service.
278.23 	(b) For a mental health rehabilitation worker qualified under section 245I.04, subdivision 
278.24 	14, paragraph (a), clause (2), item (i), treatment supervision in the first 2,000 hours of work 
278.25 	must at a minimum consist of:
278.26 	(1) monthly individual supervision; and
278.27 	(2) direct observation twice per month.

278.28 	Sec. 22. Minnesota Statutes 2024, section 245I.11, subdivision 5, is amended to read:
278.29 		Subd. 5.Medication administration in residential programs. If a license holder is 
278.30 	licensed as a residential program, the license holder must:
279.1 	(1) assess and document each client's ability to self-administer medication. In the 
279.2 	assessment, the license holder must evaluate the client's ability to: (i) comply with prescribed 
279.3 	medication regimens; and (ii) store the client's medications safely and in a manner that 
279.4 	protects other individuals in the facility. Through the assessment process, the license holder 
279.5 	must assist the client in developing the skills necessary to safely self-administer medication;
279.6 	(2) monitor the effectiveness of medications, side effects of medications, and adverse 
279.7 	reactions to medications, including symptoms and signs of tardive dyskinesia, for each 
279.8 	client. The license holder must address and document any concerns about a client's 
279.9 	medications;
279.10 	(3) ensure that no staff person or client gives a legend drug supply for one client to 
279.11 	another client;
279.12 	(4) have policies and procedures for: (i) keeping a record of each client's medication 
279.13 	orders; (ii) keeping a record of any incident of deferring a client's medications; (iii) 
279.14 	documenting any incident when a client's medication is omitted; and (iv) documenting when 
279.15 	a client refuses to take medications as prescribed; and
279.16 	(5) document and track medication errors, document whether the license holder notified 
279.17 	anyone about the medication error, determine if the license holder must take any follow-up 
279.18 	actions, and identify the staff persons who are responsible for taking follow-up actions.

279.19 	Sec. 23. Minnesota Statutes 2024, section 245I.12, subdivision 5, is amended to read:
279.20 		Subd. 5.Client grievances. (a) The license holder must have a grievance procedure 
279.21 	that:
279.22 	(1) describes to clients how the license holder will meet the requirements in this 
279.23 	subdivision; and
279.24 	(2) contains the current public contact information of the Department of Human Services, 
279.25 	Licensing Division; the Office of Ombudsman for Mental Health and Developmental 
279.26 	Disabilities; the Department of Health, Office of Health Facilities Complaints; and all 
279.27 	applicable health-related licensing boards.
279.28 	(b) On the day of each client's admission, the license holder must explain the grievance 
279.29 	procedure to the client.
279.30 	(c) The license holder must:
279.31 	(1) post the grievance procedure in a place visible to clients and provide a copy of the 
279.32 	grievance procedure upon request;
280.1 	(2) allow clients, former clients, and their authorized representatives to submit a grievance 
280.2 	to the license holder;
280.3 	(3) within three business days of receiving a client's grievance, acknowledge in writing 
280.4 	that the license holder received the client's grievance. If applicable, the license holder must 
280.5 	include a notice of the client's separate appeal rights for a managed care organization's 
280.6 	reduction, termination, or denial of a covered service;
280.7 	(4) within 15 business days of receiving a client's grievance, provide a written final 
280.8 	response to the client's grievance containing the license holder's official response to the 
280.9 	grievance; and
280.10 	(5) allow the client to bring a grievance to the person with the highest level of authority 
280.11 	in the program.
280.12 	(d) Clients may voice grievances and recommend changes in policies and services to 
280.13 	staff and others of their choice, free from restraint, interference, coercion, discrimination, 
280.14 	or reprisal, including threat of discharge.

280.15 	Sec. 24. Minnesota Statutes 2024, section 245I.23, subdivision 7, is amended to read:
280.16 		Subd. 7.Intensive residential treatment services assessment and treatment 
280.17 	planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and 
280.18 	document the client's immediate needs, including the client's:
280.19 	(1) health and safety, including the client's need for crisis assistance;
280.20 	(2) responsibilities for children, family and other natural supports, and employers; and
280.21 	(3) housing and legal issues.
280.22 	(b) Within 24 hours of the client's admission, the license holder must complete an initial 
280.23 	treatment plan for the client. The license holder must:
280.24 	(1) base the client's initial treatment plan on the client's referral information and an 
280.25 	assessment of the client's immediate needs;
280.26 	(2) consider crisis assistance strategies that have been effective for the client in the past;
280.27 	(3) identify the client's initial treatment goals, measurable treatment objectives, and 
280.28 	specific interventions that the license holder will use to help the client engage in treatment;
280.29 	(4) identify the participants involved in the client's treatment planning. The client must 
280.30 	be a participant; and
281.1 	(5) ensure that a treatment supervisor approves of the client's initial treatment plan if a 
281.2 	mental health practitioner or clinical trainee completes the client's treatment plan, 
281.3 	notwithstanding section 245I.08, subdivision 3.
281.4 	(c) According to section 245A.65, subdivision 2, paragraph (b), the license holder must 
281.5 	complete an individual abuse prevention plan as part of a client's initial treatment plan.
281.6 	(d) Within five ten days of the client's admission and again within 60 days after the 
281.7 	client's admission, the license holder must complete a level of care assessment of the client. 
281.8 	If the license holder determines that a client does not need a medically monitored level of 
281.9 	service, a treatment supervisor must document how the client's admission to and continued 
281.10 	services in intensive residential treatment services are medically necessary for the client.
281.11 	(e) Within ten days of a client's admission, the license holder must complete or review 
281.12 	and update the client's standard diagnostic assessment.
281.13 	(f) Within ten days of a client's admission, the license holder must complete the client's 
281.14 	individual treatment plan, notwithstanding section 245I.10, subdivision 8. Within 40 days 
281.15 	after the client's admission and again within 70 days after the client's admission, the license 
281.16 	holder must update the client's individual treatment plan. The license holder must focus the 
281.17 	client's treatment planning on preparing the client for a successful transition from intensive 
281.18 	residential treatment services to another setting. In addition to the required elements of an 
281.19 	individual treatment plan under section 245I.10, subdivision 8, the license holder must 
281.20 	identify the following information in the client's individual treatment plan: (1) the client's 
281.21 	referrals and resources for the client's health and safety; and (2) the staff persons who are 
281.22 	responsible for following up with the client's referrals and resources. If the client does not 
281.23 	receive a referral or resource that the client needs, the license holder must document the 
281.24 	reason that the license holder did not make the referral or did not connect the client to a 
281.25 	particular resource. The license holder is responsible for determining whether additional 
281.26 	follow-up is required on behalf of the client.
281.27 	(g) Within 30 days of the client's admission, the license holder must complete a functional 
281.28 	assessment of the client. Within 60 days after the client's admission, the license holder must 
281.29 	update the client's functional assessment to include any changes in the client's functioning 
281.30 	and symptoms.
281.31 	(h) For a client with a current substance use disorder diagnosis and for a client whose 
281.32 	substance use disorder screening in the client's standard diagnostic assessment indicates the 
281.33 	possibility that the client has a substance use disorder, the license holder must complete a 
281.34 	written assessment of the client's substance use within 30 days of the client's admission. In 
282.1 	the substance use assessment, the license holder must: (1) evaluate the client's history of 
282.2 	substance use, relapses, and hospitalizations related to substance use; (2) assess the effects 
282.3 	of the client's substance use on the client's relationships including with family member and 
282.4 	others; (3) identify financial problems, health issues, housing instability, and unemployment; 
282.5 	(4) assess the client's legal problems, past and pending incarceration, violence, and 
282.6 	victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking 
282.7 	prescribed medications, and noncompliance with psychosocial treatment.
282.8 	(i) On a weekly basis, a mental health professional or certified rehabilitation specialist 
282.9 	must review each client's treatment plan and individual abuse prevention plan. The license 
282.10 	holder must document in the client's file each weekly review of the client's treatment plan 
282.11 	and individual abuse prevention plan.

282.12 	Sec. 25. Minnesota Statutes 2024, section 256B.0616, subdivision 4, is amended to read:
282.13 		Subd. 4.Family peer support specialist program providers. The commissioner shall 
282.14 	develop a process to certify family peer support specialist programs, in accordance with the 
282.15 	federal guidelines, in order for the program to bill for reimbursable services. Family peer 
282.16 	support programs must operate within an existing mental health community provider or 
282.17 	center.

282.18 	Sec. 26. Minnesota Statutes 2024, section 256B.0616, subdivision 5, is amended to read:
282.19 		Subd. 5.Certified family peer specialist training and certification. (a) The 
282.20 	commissioner shall develop a or approve the use of an existing training and certification 
282.21 	process for certified certifying family peer specialists. The Family peer specialist candidates 
282.22 	must have raised or be currently raising a child with a mental illness, have had experience 
282.23 	navigating the children's mental health system, and must demonstrate leadership and advocacy 
282.24 	skills and a strong dedication to family-driven and family-focused services. The training 
282.25 	curriculum must teach participating family peer specialists specialist candidates specific 
282.26 	skills relevant to providing peer support to other parents and youth.
282.27 	(b) In addition to initial training and certification, the commissioner shall develop ongoing 
282.28 	continuing educational workshops on pertinent issues related to family peer support 
282.29 	counseling.
282.30 	(c) Initial training leading to certification as a family peer specialist and continuing 
282.31 	education for certified family peer specialists must be delivered by the commissioner or a 
282.32 	third-party organization approved by the commissioner. An approved third-party organization 
282.33 	may also provide continuing education of certified family peer specialists.

283.1 	Sec. 27. Minnesota Statutes 2024, section 256B.0622, subdivision 3a, is amended to read:
283.2 		Subd. 3a.Provider certification and contract requirements for assertive community 
283.3 	treatment. (a) The assertive community treatment provider must have each ACT team be 
283.4 	certified by the state following the certification process and procedures developed by the 
283.5 	commissioner. The certification process determines whether the ACT team meets the 
283.6 	standards for assertive community treatment under this section, the standards in chapter 
283.7 	245I as required in section 245I.011, subdivision 5, and minimum program fidelity standards 
283.8 	as measured by a nationally recognized fidelity tool approved by the commissioner. 
283.9 	Recertification must occur at least every three years.
283.10 	(b) An ACT team certified under this subdivision must meet the following standards:
283.11 	(1) have capacity to recruit, hire, manage, and train required ACT team members;
283.12 	(2) have adequate administrative ability to ensure availability of services;
283.13 	(3) ensure flexibility in service delivery to respond to the changing and intermittent care 
283.14 	needs of a client as identified by the client and the individual treatment plan;
283.15 	(4) keep all necessary records required by law;
283.16 	(5) be an enrolled Medicaid provider; and
283.17 	(6) establish and maintain a quality assurance plan to determine specific service outcomes 
283.18 	and the client's satisfaction with services.; and
283.19 	(7) ensure that overall treatment supervision to the ACT team is provided by a qualified 
283.20 	member of the ACT team and is available during and after regular business hours and on 
283.21 	weekends and holidays.
283.22 	(c) The commissioner may intervene at any time and decertify an ACT team with cause. 
283.23 	The commissioner shall establish a process for decertification of an ACT team and shall 
283.24 	require corrective action, medical assistance repayment, or decertification of an ACT team 
283.25 	that no longer meets the requirements in this section or that fails to meet the clinical quality 
283.26 	standards or administrative standards provided by the commissioner in the application and 
283.27 	certification process. The decertification is subject to appeal to the state.

283.28 	Sec. 28. Minnesota Statutes 2024, section 256B.0622, subdivision 7a, is amended to read:
283.29 		Subd. 7a.Assertive community treatment team staff requirements and roles. (a) 
283.30 	The required treatment staff qualifications and roles for an ACT team are:
283.31 	(1) the team leader:
284.1 	(i) shall must be a mental health professional. Individuals who are not licensed but who 
284.2 	are eligible for licensure and are otherwise qualified may also fulfill this role, clinical trainee, 
284.3 	or mental health practitioner;
284.4 	(ii) must be an active member of the ACT team and provide some direct services to 
284.5 	clients;
284.6 	(iii) must be a single full-time staff member, dedicated to the ACT team, who is 
284.7 	responsible for overseeing the administrative operations of the team and supervising team 
284.8 	members to ensure delivery of best and ethical practices; and
284.9 	(iv) must be available to ensure that overall treatment supervision to the ACT team is 
284.10 	available after regular business hours and on weekends and holidays and is provided by a 
284.11 	qualified member of the ACT team;
284.12 	(2) the psychiatric care provider:
284.13 	(i) must be a mental health professional permitted to prescribe psychiatric medications 
284.14 	as part of the mental health professional's scope of practice. The psychiatric care provider 
284.15 	must have demonstrated clinical experience working with individuals with serious and 
284.16 	persistent mental illness;
284.17 	(ii) shall collaborate with the team leader in sharing overall clinical responsibility for 
284.18 	screening and admitting clients; monitoring clients' treatment and team member service 
284.19 	delivery; educating staff on psychiatric and nonpsychiatric medications, their side effects, 
284.20 	and health-related conditions; actively collaborating with nurses; and helping provide 
284.21 	treatment supervision to the team;
284.22 	(iii) shall fulfill the following functions for assertive community treatment clients: 
284.23 	provide assessment and treatment of clients' symptoms and response to medications, including 
284.24 	side effects; provide brief therapy to clients; provide diagnostic and medication education 
284.25 	to clients, with medication decisions based on shared decision making; monitor clients' 
284.26 	nonpsychiatric medical conditions and nonpsychiatric medications; and conduct home and 
284.27 	community visits;
284.28 	(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized 
284.29 	for mental health treatment and shall communicate directly with the client's inpatient 
284.30 	psychiatric care providers to ensure continuity of care;
284.31 	(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 
284.32 	50 clients. Part-time psychiatric care providers shall have designated hours to work on the 
284.33 	team, with sufficient blocks of time on consistent days to carry out the provider's clinical, 
285.1 	supervisory, and administrative responsibilities. No more than two psychiatric care providers 
285.2 	may share this role; and
285.3 	(vi) shall provide psychiatric backup to the program after regular business hours and on 
285.4 	weekends and holidays. The psychiatric care provider may delegate this duty to another 
285.5 	qualified psychiatric provider;
285.6 	(3) the nursing staff:
285.7 	(i) shall consist of one to three registered nurses or advanced practice registered nurses, 
285.8 	of whom at least one has a minimum of one-year experience working with adults with 
285.9 	serious mental illness and a working knowledge of psychiatric medications. No more than 
285.10 	two individuals can share a full-time equivalent position;
285.11 	(ii) are responsible for managing medication, administering and documenting medication 
285.12 	treatment, and managing a secure medication room; and
285.13 	(iii) shall develop strategies, in collaboration with clients, to maximize taking medications 
285.14 	as prescribed; screen and monitor clients' mental and physical health conditions and 
285.15 	medication side effects; engage in health promotion, prevention, and education activities; 
285.16 	communicate and coordinate services with other medical providers; facilitate the development 
285.17 	of the individual treatment plan for clients assigned; and educate the ACT team in monitoring 
285.18 	psychiatric and physical health symptoms and medication side effects;
285.19 	(4) the co-occurring disorder specialist:
285.20 	(i) shall be a full-time equivalent co-occurring disorder specialist who has received 
285.21 	specific training on co-occurring disorders that is consistent with national evidence-based 
285.22 	practices. The training must include practical knowledge of common substances and how 
285.23 	they affect mental illnesses, the ability to assess substance use disorders and the client's 
285.24 	stage of treatment, motivational interviewing, and skills necessary to provide counseling to 
285.25 	clients at all different stages of change and treatment. The co-occurring disorder specialist 
285.26 	may also be an individual who is a licensed alcohol and drug counselor as described in 
285.27 	section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, 
285.28 	and other requirements in section 245G.11, subdivision 5. No more than two co-occurring 
285.29 	disorder specialists may occupy this role; and
285.30 	(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients. 
285.31 	The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT 
285.32 	team members on co-occurring disorders;
285.33 	(5) the vocational specialist:
286.1 	(i) shall be a full-time vocational specialist who has at least one-year experience providing 
286.2 	employment services or advanced education that involved field training in vocational services 
286.3 	to individuals with mental illness. An individual who does not meet these qualifications 
286.4 	may also serve as the vocational specialist upon completing a training plan approved by the 
286.5 	commissioner;
286.6 	(ii) shall provide or facilitate the provision of vocational services to clients. The vocational 
286.7 	specialist serves as a consultant and educator to fellow ACT team members on these services; 
286.8 	and
286.9 	(iii) must not refer individuals to receive any type of vocational services or linkage by 
286.10 	providers outside of the ACT team;
286.11 	(6) the mental health certified peer specialist:
286.12 	(i) shall be a full-time equivalent. No more than two individuals can share this position. 
286.13 	The mental health certified peer specialist is a fully integrated team member who provides 
286.14 	highly individualized services in the community and promotes the self-determination and 
286.15 	shared decision-making abilities of clients. This requirement may be waived due to workforce 
286.16 	shortages upon approval of the commissioner;
286.17 	(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, 
286.18 	self-advocacy, and self-direction, promote wellness management strategies, and assist clients 
286.19 	in developing advance directives; and
286.20 	(iii) must model recovery values, attitudes, beliefs, and personal action to encourage 
286.21 	wellness and resilience, provide consultation to team members, promote a culture where 
286.22 	the clients' points of view and preferences are recognized, understood, respected, and 
286.23 	integrated into treatment, and serve in a manner equivalent to other team members;
286.24 	(7) the program administrative assistant shall be a full-time office-based program 
286.25 	administrative assistant position assigned to solely work with the ACT team, providing a 
286.26 	range of supports to the team, clients, and families; and
286.27 	(8) additional staff:
286.28 	(i) shall be based on team size. Additional treatment team staff may include mental 
286.29 	health professionals; clinical trainees; certified rehabilitation specialists; mental health 
286.30 	practitioners; or mental health rehabilitation workers. These individuals shall have the 
286.31 	knowledge, skills, and abilities required by the population served to carry out rehabilitation 
286.32 	and support functions; and
286.33 	(ii) shall be selected based on specific program needs or the population served.
287.1 	(b) Each ACT team must clearly document schedules for all ACT team members.
287.2 	(c) Each ACT team member must serve as a primary team member for clients assigned 
287.3 	by the team leader and are responsible for facilitating the individual treatment plan process 
287.4 	for those clients. The primary team member for a client is the responsible team member 
287.5 	knowledgeable about the client's life and circumstances and writes the individual treatment 
287.6 	plan. The primary team member provides individual supportive therapy or counseling, and 
287.7 	provides primary support and education to the client's family and support system.
287.8 	(d) Members of the ACT team must have strong clinical skills, professional qualifications, 
287.9 	experience, and competency to provide a full breadth of rehabilitation services. Each staff 
287.10 	member shall be proficient in their respective discipline and be able to work collaboratively 
287.11 	as a member of a multidisciplinary team to deliver the majority of the treatment, 
287.12 	rehabilitation, and support services clients require to fully benefit from receiving assertive 
287.13 	community treatment.
287.14 	(e) Each ACT team member must fulfill training requirements established by the 
287.15 	commissioner.

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

287.18 	Sec. 29. Minnesota Statutes 2024, section 256B.0625, subdivision 20, is amended to read:
287.19 		Subd. 20.Mental health case management. (a) To the extent authorized by rule of the 
287.20 	state agency, medical assistance covers case management services to persons with serious 
287.21 	and persistent mental illness, persons with a complex post-traumatic stress disorder, and 
287.22 	children with severe emotional disturbance. Services provided under this section must meet 
287.23 	the relevant standards in sections 245.461 to 245.4887, the Comprehensive Adult and 
287.24 	Children's Mental Health Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
287.25 	9505.0322, excluding subpart 10.
287.26 	(b) Entities meeting program standards set out in rules governing family community 
287.27 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
287.28 	assistance reimbursement for case management services for children with severe emotional 
287.29 	disturbance when these services meet the program standards in Minnesota Rules, parts 
287.30 	9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.
287.31 	(c) Medical assistance and MinnesotaCare payment for mental health case management 
287.32 	shall be made on a monthly basis. In order to receive payment for an eligible child, the 
287.33 	provider must document at least a face-to-face contact either in person or by interactive 
288.1 	video that meets the requirements of subdivision 20b with the child, the child's parents, or 
288.2 	the child's legal representative. To receive payment for an eligible adult, the provider must 
288.3 	document:
288.4 	(1) at least a face-to-face contact with the adult or the adult's legal representative either 
288.5 	in person or by interactive video that meets the requirements of subdivision 20b; or
288.6 	(2) at least a telephone contact with the adult or the adult's legal representative and 
288.7 	document a face-to-face contact either in person or by interactive video that meets the 
288.8 	requirements of subdivision 20b with the adult or the adult's legal representative within the 
288.9 	preceding two months.
288.10 	(d) Payment for mental health case management provided by county or state staff shall 
288.11 	be based on the monthly rate methodology under section 256B.094, subdivision 6, paragraph 
288.12 	(b), with separate rates calculated for child welfare and mental health, and within mental 
288.13 	health, separate rates for children and adults.
288.14 	(e) Payment for mental health case management provided by Indian health services or 
288.15 	by agencies operated by Indian tribes may be made according to this section or other relevant 
288.16 	federally approved rate setting methodology.
288.17 	(f) Payment for mental health case management provided by vendors who contract with 
288.18 	a county must be calculated in accordance with section 256B.076, subdivision 2. Payment 
288.19 	for mental health case management provided by vendors who contract with a Tribe must 
288.20 	be based on a monthly rate negotiated by the Tribe. The rate must not exceed the rate charged 
288.21 	by the vendor for the same service to other payers. If the service is provided by a team of 
288.22 	contracted vendors, the team shall determine how to distribute the rate among its members. 
288.23 	No reimbursement received by contracted vendors shall be returned to the county or tribe, 
288.24 	except to reimburse the county or tribe for advance funding provided by the county or tribe 
288.25 	to the vendor.
288.26 	(g) If the service is provided by a team which includes contracted vendors, tribal staff, 
288.27 	and county or state staff, the costs for county or state staff participation in the team shall be 
288.28 	included in the rate for county-provided services. In this case, the contracted vendor, the 
288.29 	tribal agency, and the county may each receive separate payment for services provided by 
288.30 	each entity in the same month. In order to prevent duplication of services, each entity must 
288.31 	document, in the recipient's file, the need for team case management and a description of 
288.32 	the roles of the team members.
288.33 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for 
288.34 	mental health case management shall be provided by the recipient's county of responsibility, 
289.1 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds 
289.2 	used to match other federal funds. If the service is provided by a tribal agency, the nonfederal 
289.3 	share, if any, shall be provided by the recipient's tribe. When this service is paid by the state 
289.4 	without a federal share through fee-for-service, 50 percent of the cost shall be provided by 
289.5 	the recipient's county of responsibility.
289.6 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical assistance 
289.7 	and MinnesotaCare include mental health case management. When the service is provided 
289.8 	through prepaid capitation, the nonfederal share is paid by the state and the county pays no 
289.9 	share.
289.10 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a provider 
289.11 	that does not meet the reporting or other requirements of this section. The county of 
289.12 	responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal agency, 
289.13 	is responsible for any federal disallowances. The county or tribe may share this responsibility 
289.14 	with its contracted vendors.
289.15 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
289.16 	expenditures under this section to repay the special revenue maximization account under 
289.17 	section 256.01, subdivision 2, paragraph (n). The repayment is limited to:
289.18 	(1) the costs of developing and implementing this section; and
289.19 	(2) programming the information systems.
289.20 	(l) Payments to counties and tribal agencies for case management expenditures under 
289.21 	this section shall only be made from federal earnings from services provided under this 
289.22 	section. When this service is paid by the state without a federal share through fee-for-service, 
289.23 	50 percent of the cost shall be provided by the state. Payments to county-contracted vendors 
289.24 	shall include the federal earnings, the state share, and the county share.
289.25 	(m) Case management services under this subdivision do not include therapy, treatment, 
289.26 	legal, or outreach services.
289.27 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, 
289.28 	and the recipient's institutional care is paid by medical assistance, payment for case 
289.29 	management services under this subdivision is limited to the lesser of:
289.30 	(1) the last 180 days of the recipient's residency in that facility and may not exceed more 
289.31 	than six months in a calendar year; or
289.32 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
290.1 	(o) Payment for case management services under this subdivision shall not duplicate 
290.2 	payments made under other program authorities for the same purpose.
290.3 	(p) If the recipient is receiving care in a hospital, nursing facility, or residential setting 
290.4 	licensed under chapter 245A or 245D that is staffed 24 hours a day, seven days a week, 
290.5 	mental health targeted case management services must actively support identification of 
290.6 	community alternatives for the recipient and discharge planning.

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

290.9 	Sec. 30. Minnesota Statutes 2024, section 256L.03, subdivision 5, is amended to read:
290.10 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
290.11 	children under the age of 21 and to American Indians as defined in Code of Federal 
290.12 	Regulations, title 42, section 600.5.
290.13 	(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered 
290.14 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
290.15 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
290.16 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
290.17 	this paragraph shall not be implemented prior to January 1, 2016.
290.18 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
290.19 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
290.20 	title 42, sections 600.510 and 600.520.
290.21 	(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic 
290.22 	disease must comply with the requirements of section 62Q.481.
290.23 	(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic 
290.24 	services or testing that a health care provider determines an enrollee requires after a 
290.25 	mammogram, as specified under section 62A.30, subdivision 5.
290.26 	(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to 
290.27 	tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
290.28 	(g) Co-payments, coinsurance, and deductibles do not apply to pre-exposure prophylaxis 
290.29 	(PrEP) and postexposure prophylaxis (PEP) medications when used for the prevention or 
290.30 	treatment of the human immunodeficiency virus (HIV).
290.31 	(h) Co-payments, coinsurance, and deductibles do not apply to mobile crisis intervention, 
290.32 	as defined in section 256B.0624, subdivision 2, paragraph (d).

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

291.4 	Sec. 31. Laws 2023, chapter 70, article 20, section 2, subdivision 7, is amended to read:

291.5
291.6	Subd. 7.Central Office; Behavioral Health, Deaf 
and Hard of Hearing, and Housing Services

291.7	Appropriations by Fund
	
291.8	General
	27,870,000
	27,592,000
	
291.9	Lottery Prize
	163,000
	163,000
	
291.10 	(a) Homeless management system. $250,000 
291.11 	in fiscal year 2024 and $1,000,000 in fiscal 
291.12 	year 2025 are from the general fund for a 
291.13 	homeless management information system. 
291.14 	The base for this appropriation is $1,140,000 
291.15 	in fiscal year 2026 and $1,140,000 in fiscal 
291.16 	year 2027.
291.17 	(b) Online behavioral health program 
291.18 	locator. $959,000 in fiscal year 2024 and 
291.19 	$959,000 in fiscal year 2025 are from the 
291.20 	general fund for an online behavioral health 
291.21 	program locator. Beginning July 1, 2025, any 
291.22 	vendor of the online behavioral health program 
291.23 	locator selected by the commissioner of human 
291.24 	services to perform the duties under this 
291.25 	paragraph must be based in Minnesota.
291.26 	(c) Integrated services for children and 
291.27 	families. $286,000 in fiscal year 2024 and 
291.28 	$286,000 in fiscal year 2025 are from the 
291.29 	general fund for integrated services for 
291.30 	children and families projects. 
291.31 	Notwithstanding Minnesota Statutes, section 
291.32 	16A.28, subdivision 3, $1,797,000 of the 
291.33 	appropriation in fiscal year 2024 is available 
291.34 	until June 30, 2027.
292.1 	(d) Carryforward authority.
292.2 	Notwithstanding Minnesota Statutes, section 
292.3 	16A.28, subdivision 3, $842,000 of the 
292.4 	appropriation in fiscal year 2024 is available 
292.5 	until June 30, 2027, and $852,000 of the 
292.6 	appropriation in fiscal year 2025 is available 
292.7 	until June 30, 2028.
292.8 	(f) Base level adjustment. The general fund 
292.9 	base is $25,243,000 in fiscal year 2026 and 
292.10 	$24,682,000 in fiscal year 2027.

292.11 	ARTICLE 10
292.12 	CHILDREN'S MENTAL HEALTH TERMINOLOGY

292.13 	Section 1. Minnesota Statutes 2024, section 62Q.527, subdivision 1, is amended to read:
292.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
292.15 	the meanings given them.
292.16 	(b) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
292.17 	(c) (b) "Mental illness" has the meaning given in section sections245.462, subdivision 
292.18 	20, paragraph (a), and 245.4871, subdivision 15.
292.19 	(d) (c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes 
292.20 	the coverages described in section 62A.011, subdivision 3, clauses (7) and (10).

292.21 	Sec. 2. Minnesota Statutes 2024, section 62Q.527, subdivision 2, is amended to read:
292.22 		Subd. 2.Required coverage for antipsychotic drugs. (a) A health plan that provides 
292.23 	prescription drug coverage must provide coverage for an antipsychotic drug prescribed to 
292.24 	treat emotional disturbance or mental illness regardless of whether the drug is in the health 
292.25 	plan's drug formulary, if the health care provider prescribing the drug:
292.26 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
292.27 	151.21, that the prescription must be dispensed as communicated; and
292.28 	(2) certifies in writing to the health plan company that the health care provider has 
292.29 	considered all equivalent drugs in the health plan's drug formulary and has determined that 
292.30 	the drug prescribed will best treat the patient's condition.
293.1 	(b) The health plan is not required to provide coverage for a drug if the drug was removed 
293.2 	from the health plan's drug formulary for safety reasons.
293.3 	(c) For drugs covered under this section, no health plan company that has received a 
293.4 	certification from the health care provider as described in paragraph (a) may:
293.5 	(1) impose a special deductible, co-payment, coinsurance, or other special payment 
293.6 	requirement that the health plan does not apply to drugs that are in the health plan's drug 
293.7 	formulary; or
293.8 	(2) require written certification from the prescribing provider each time a prescription 
293.9 	is refilled or renewed that the drug prescribed will best treat the patient's condition.

293.10 	Sec. 3. Minnesota Statutes 2024, section 62Q.527, subdivision 3, is amended to read:
293.11 		Subd. 3.Continuing care. (a) Enrollees receiving a prescribed drug to treat a diagnosed 
293.12 	mental illness or emotional disturbance may continue to receive the prescribed drug for up 
293.13 	to one year without the imposition of a special deductible, co-payment, coinsurance, or 
293.14 	other special payment requirements, when a health plan's drug formulary changes or an 
293.15 	enrollee changes health plans and the medication has been shown to effectively treat the 
293.16 	patient's condition. In order to be eligible for this continuing care benefit:
293.17 	(1) the patient must have been treated with the drug for 90 days prior to a change in a 
293.18 	health plan's drug formulary or a change in the enrollee's health plan;
293.19 	(2) the health care provider prescribing the drug indicates to the dispensing pharmacist, 
293.20 	orally or in writing according to section 151.21, that the prescription must be dispensed as 
293.21 	communicated; and
293.22 	(3) the health care provider prescribing the drug certifies in writing to the health plan 
293.23 	company that the drug prescribed will best treat the patient's condition.
293.24 	(b) The continuing care benefit shall be extended annually when the health care provider 
293.25 	prescribing the drug:
293.26 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
293.27 	151.21, that the prescription must be dispensed as communicated; and
293.28 	(2) certifies in writing to the health plan company that the drug prescribed will best treat 
293.29 	the patient's condition.
293.30 	(c) The health plan company is not required to provide coverage for a drug if the drug 
293.31 	was removed from the health plan's drug formulary for safety reasons.

294.1 	Sec. 4. Minnesota Statutes 2024, section 121A.61, subdivision 3, is amended to read:
294.2 		Subd. 3.Policy components. The policy must include at least the following components:
294.3 	(a) rules governing student conduct and procedures for informing students of the rules;
294.4 	(b) the grounds for removal of a student from a class;
294.5 	(c) the authority of the classroom teacher to remove students from the classroom pursuant 
294.6 	to procedures and rules established in the district's policy;
294.7 	(d) the procedures for removal of a student from a class by a teacher, school administrator, 
294.8 	or other school district employee;
294.9 	(e) the period of time for which a student may be removed from a class, which may not 
294.10 	exceed five class periods for a violation of a rule of conduct;
294.11 	(f) provisions relating to the responsibility for and custody of a student removed from 
294.12 	a class;
294.13 	(g) the procedures for return of a student to the specified class from which the student 
294.14 	has been removed;
294.15 	(h) the procedures for notifying a student and the student's parents or guardian of 
294.16 	violations of the rules of conduct and of resulting disciplinary actions;
294.17 	(i) any procedures determined appropriate for encouraging early involvement of parents 
294.18 	or guardians in attempts to improve a student's behavior;
294.19 	(j) any procedures determined appropriate for encouraging early detection of behavioral 
294.20 	problems;
294.21 	(k) any procedures determined appropriate for referring a student in need of special 
294.22 	education services to those services;
294.23 	(l) any procedures determined appropriate for ensuring victims of bullying who respond 
294.24 	with behavior not allowed under the school's behavior policies have access to a remedial 
294.25 	response, consistent with section 121A.031;
294.26 	(m) the procedures for consideration of whether there is a need for a further assessment 
294.27 	or of whether there is a need for a review of the adequacy of a current individualized 
294.28 	education program of a student with a disability who is removed from class;
294.29 	(n) procedures for detecting and addressing chemical abuse problems of a student while 
294.30 	on the school premises;
294.31 	(o) the minimum consequences for violations of the code of conduct;
295.1 	(p) procedures for immediate and appropriate interventions tied to violations of the code;
295.2 	(q) a provision that states that a teacher, school employee, school bus driver, or other 
295.3 	agent of a district may use reasonable force in compliance with section 121A.582 and other 
295.4 	laws;
295.5 	(r) an agreement regarding procedures to coordinate crisis services to the extent funds 
295.6 	are available with the county board responsible for implementing sections 245.487 to 
295.7 	245.4889 for students with a serious emotional disturbance mental illness or other students 
295.8 	who have an individualized education program whose behavior may be addressed by crisis 
295.9 	intervention;
295.10 	(s) a provision that states a student must be removed from class immediately if the student 
295.11 	engages in assault or violent behavior. For purposes of this paragraph, "assault" has the 
295.12 	meaning given it in section 609.02, subdivision 10. The removal shall be for a period of 
295.13 	time deemed appropriate by the principal, in consultation with the teacher;
295.14 	(t) a prohibition on the use of exclusionary practices for early learners as defined in 
295.15 	section 121A.425; and
295.16 	(u) a prohibition on the use of exclusionary practices to address attendance and truancy 
295.17 	issues.

295.18 	Sec. 5. Minnesota Statutes 2024, section 128C.02, subdivision 5, is amended to read:
295.19 		Subd. 5.Rules for open enrollees. (a) The league shall adopt league rules and regulations 
295.20 	governing the athletic participation of pupils attending school in a nonresident district under 
295.21 	section 124D.03.
295.22 	(b) Notwithstanding other law or league rule or regulation to the contrary, when a student 
295.23 	enrolls in or is readmitted to a recovery-focused high school after successfully completing 
295.24 	a licensed program for treatment of alcohol or substance abuse, or mental illness, or emotional 
295.25 	disturbance, the student is immediately eligible to participate on the same basis as other 
295.26 	district students in the league-sponsored activities of the student's resident school district. 
295.27 	Nothing in this paragraph prohibits the league or school district from enforcing a league or 
295.28 	district penalty resulting from the student violating a league or district rule.
295.29 	(c) The league shall adopt league rules making a student with an individualized education 
295.30 	program who transfers from one public school to another public school as a reasonable 
295.31 	accommodation to reduce barriers to educational access immediately eligible to participate 
295.32 	in league-sponsored varsity competition on the same basis as other students in the school 
295.33 	to which the student transfers. The league also must establish guidelines, consistent with 
296.1 	this paragraph, for reviewing the 504 plan of a student who transfers between public schools 
296.2 	to determine whether the student is immediately eligible to participate in league-sponsored 
296.3 	varsity competition on the same basis as other students in the school to which the student 
296.4 	transfers.

296.5 	Sec. 6. Minnesota Statutes 2024, section 142G.02, subdivision 56, is amended to read:
296.6 		Subd. 56.Learning disabled. "Learning disabled," for purposes of an extension to the 
296.7 	60-month time limit under section 142G.42, subdivision 4, clause (3), means the person has 
296.8 	a disorder in one or more of the psychological processes involved in perceiving, 
296.9 	understanding, or using concepts through verbal language or nonverbal means. Learning 
296.10 	disabled does not include learning problems that are primarily the result of visual, hearing, 
296.11 	or motor disabilities; developmental disability; emotional disturbance; or mental illness or 
296.12 	due to environmental, cultural, or economic disadvantage.

296.13 	Sec. 7. Minnesota Statutes 2024, section 142G.27, subdivision 4, is amended to read:
296.14 		Subd. 4.Good cause exemptions for not attending orientation. (a) The county agency 
296.15 	shall not impose the sanction under section 142G.70 if it determines that the participant has 
296.16 	good cause for failing to attend orientation. Good cause exists when:
296.17 	(1) appropriate child care is not available;
296.18 	(2) the participant is ill or injured;
296.19 	(3) a family member is ill and needs care by the participant that prevents the participant 
296.20 	from attending orientation. For a caregiver with a child or adult in the household who meets 
296.21 	the disability or medical criteria for home care services under section 256B.0659, or a home 
296.22 	and community-based waiver services program under chapter 256B, or meets the criteria 
296.23 	for severe emotional disturbance serious mental illness under section 245.4871, subdivision 
296.24 	6, or for serious and persistent mental illness under section 245.462, subdivision 20, 
296.25 	paragraph (c), good cause also exists when an interruption in the provision of those services 
296.26 	occurs which prevents the participant from attending orientation;
296.27 	(4) the caregiver is unable to secure necessary transportation;
296.28 	(5) the caregiver is in an emergency situation that prevents orientation attendance;
296.29 	(6) the orientation conflicts with the caregiver's work, training, or school schedule; or
296.30 	(7) the caregiver documents other verifiable impediments to orientation attendance 
296.31 	beyond the caregiver's control.
297.1 	(b) Counties must work with clients to provide child care and transportation necessary 
297.2 	to ensure a caregiver has every opportunity to attend orientation.

297.3 	Sec. 8. Minnesota Statutes 2024, section 142G.42, subdivision 3, is amended to read:
297.4 		Subd. 3.Ill or incapacitated. (a) An assistance unit subject to the time limit in section 
297.5 	142G.40, subdivision 1, is eligible to receive months of assistance under a hardship extension 
297.6 	if the participant who reached the time limit belongs to any of the following groups:
297.7 	(1) participants who are suffering from an illness, injury, or incapacity which has been 
297.8 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
297.9 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
297.10 	suitable employment. These participants must follow the treatment recommendations of the 
297.11 	qualified professional certifying the illness, injury, or incapacity;
297.12 	(2) participants whose presence in the home is required as a caregiver because of the 
297.13 	illness, injury, or incapacity of another member in the assistance unit, a relative in the 
297.14 	household, or a foster child in the household when the illness or incapacity and the need 
297.15 	for a person to provide assistance in the home has been certified by a qualified professional 
297.16 	and is expected to continue for more than 30 days; or
297.17 	(3) caregivers with a child or an adult in the household who meets the disability or 
297.18 	medical criteria for home care services under section 256B.0651, subdivision 1, paragraph 
297.19 	(c), or a home and community-based waiver services program under chapter 256B, or meets 
297.20 	the criteria for severe emotional disturbance serious mental illness under section 245.4871, 
297.21 	subdivision 6, or for serious and persistent mental illness under section 245.462, subdivision 
297.22 	20, paragraph (c). Caregivers in this category are presumed to be prevented from obtaining 
297.23 	or maintaining suitable employment.
297.24 	(b) An assistance unit receiving assistance under a hardship extension under this 
297.25 	subdivision may continue to receive assistance as long as the participant meets the criteria 
297.26 	in paragraph (a), clause (1), (2), or (3).

297.27 	Sec. 9. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
297.28 		Subd. 4.Case management service provider. (a) "Case management service provider" 
297.29 	means a case manager or case manager associate employed by the county or other entity 
297.30 	authorized by the county board to provide case management services specified in section 
297.31 	245.4711.
297.32 	(b) A case manager must:
298.1 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
298.2 	(2) be knowledgeable about local community resources and how to use those resources 
298.3 	for the benefit of the client;
298.4 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
298.5 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
298.6 	limited to, social work, psychology, or nursing from an accredited college or university. A 
298.7 	case manager who is not a mental health practitioner and who does not have a bachelor's 
298.8 	degree in one of the behavioral sciences or related fields must meet the requirements of 
298.9 	paragraph (c); and
298.10 	(4) meet the supervision and continuing education requirements described in paragraphs 
298.11 	(d), (e), and (f), as applicable.
298.12 	(c) Case managers without a bachelor's degree must meet one of the requirements in 
298.13 	clauses (1) to (3):
298.14 	(1) have three or four years of experience as a case manager associate as defined in this 
298.15 	section;
298.16 	(2) be a registered nurse without a bachelor's degree and have a combination of 
298.17 	specialized training in psychiatry and work experience consisting of community interaction 
298.18 	and involvement or community discharge planning in a mental health setting totaling three 
298.19 	years; or
298.20 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
298.21 	Service waiver provision and meet the continuing education and mentoring requirements 
298.22 	in this section.
298.23 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
298.24 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
298.25 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
298.26 	supervision regarding individual service delivery with a case management supervisor. The 
298.27 	remaining 26 hours of supervision may be provided by a case manager with two years of 
298.28 	experience. Group supervision may not constitute more than one-half of the required 
298.29 	supervision hours. Clinical supervision must be documented in the client record.
298.30 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
298.31 	services to adults with mental illness must:
299.1 	(1) receive clinical supervision regarding individual service delivery from a mental 
299.2 	health professional at least one hour per week until the requirement of 2,000 hours of 
299.3 	experience is met; and
299.4 	(2) complete 40 hours of training approved by the commissioner in case management 
299.5 	skills and the characteristics and needs of adults with serious and persistent mental illness.
299.6 	(f) A case manager who is not licensed, registered, or certified by a health-related 
299.7 	licensing board must receive 30 hours of continuing education and training in mental illness 
299.8 	and mental health services every two years.
299.9 	(g) A case manager associate (CMA) must:
299.10 	(1) work under the direction of a case manager or case management supervisor;
299.11 	(2) be at least 21 years of age;
299.12 	(3) have at least a high school diploma or its equivalent; and
299.13 	(4) meet one of the following criteria:
299.14 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
299.15 	(ii) be a certified peer specialist under section 256B.0615;
299.16 	(iii) be a registered nurse without a bachelor's degree;
299.17 	(iv) within the previous ten years, have three years of life experience with serious and 
299.18 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
299.19 	disturbance a serious mental illness as defined in section 245.4871, subdivision 6; or have 
299.20 	three years life experience as a primary caregiver to an adult with serious and persistent 
299.21 	mental illness within the previous ten years;
299.22 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
299.23 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
299.24 	persons with mental illness.
299.25 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
299.26 	after four years of supervised work experience as a case manager associate. Individuals 
299.27 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
299.28 	experience as a case manager associate.
299.29 	(h) A case management associate must meet the following supervision, mentoring, and 
299.30 	continuing education requirements:
299.31 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
300.1 	(2) receive at least 40 hours of continuing education in mental illness and mental health 
300.2 	services annually; and
300.3 	(3) receive at least five hours of mentoring per week from a case management mentor.
300.4 	A "case management mentor" means a qualified, practicing case manager or case management 
300.5 	supervisor who teaches or advises and provides intensive training and clinical supervision 
300.6 	to one or more case manager associates. Mentoring may occur while providing direct services 
300.7 	to consumers in the office or in the field and may be provided to individuals or groups of 
300.8 	case manager associates. At least two mentoring hours per week must be individual and 
300.9 	face-to-face.
300.10 	(i) A case management supervisor must meet the criteria for mental health professionals, 
300.11 	as specified in subdivision 18.
300.12 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
300.13 	provide case management services to adult immigrants with serious and persistent mental 
300.14 	illness who are members of the same ethnic group as the case manager if the person:
300.15 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
300.16 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
300.17 	limited to, social work, psychology, or nursing from an accredited college or university;
300.18 	(2) completes 40 hours of training as specified in this subdivision; and
300.19 	(3) receives clinical supervision at least once a week until the requirements of this 
300.20 	subdivision are met.

300.21 	Sec. 10. Minnesota Statutes 2024, section 245.4682, subdivision 3, is amended to read:
300.22 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 and 
300.23 	chapter 256L, the commissioner is authorized to solicit, approve, and implement up to three 
300.24 	projects to demonstrate the integration of physical and mental health services within prepaid 
300.25 	health plans and their coordination with social services. The commissioner shall require 
300.26 	that each project be based on locally defined partnerships that include at least one health 
300.27 	maintenance organization, community integrated service network, or accountable provider 
300.28 	network authorized and operating under chapter 62D, 62N, or 62T, or county-based 
300.29 	purchasing entity under section 256B.692 that is eligible to contract with the commissioner 
300.30 	as a prepaid health plan, and the county or counties within the service area. Counties shall 
300.31 	retain responsibility and authority for social services in these locally defined partnerships.
301.1 	(b) The commissioner, in consultation with consumers, families, and their representatives, 
301.2 	shall:
301.3 	(1) determine criteria for approving the projects and use those criteria to solicit proposals 
301.4 	for preferred integrated networks. The commissioner must develop criteria to evaluate the 
301.5 	partnership proposed by the county and prepaid health plan to coordinate access and delivery 
301.6 	of services. The proposal must at a minimum address how the partnership will coordinate 
301.7 	the provision of:
301.8 	(i) client outreach and identification of health and social service needs paired with 
301.9 	expedited access to appropriate resources;
301.10 	(ii) activities to maintain continuity of health care coverage;
301.11 	(iii) children's residential mental health treatment and treatment foster care;
301.12 	(iv) court-ordered assessments and treatments;
301.13 	(v) prepetition screening and commitments under chapter 253B;
301.14 	(vi) assessment and treatment of children identified through mental health screening of 
301.15 	child welfare and juvenile corrections cases;
301.16 	(vii) home and community-based waiver services;
301.17 	(viii) assistance with finding and maintaining employment;
301.18 	(ix) housing; and
301.19 	(x) transportation;
301.20 	(2) determine specifications for contracts with prepaid health plans to improve the plan's 
301.21 	ability to serve persons with mental health conditions, including specifications addressing:
301.22 	(i) early identification and intervention of physical and behavioral health problems;
301.23 	(ii) communication between the enrollee and the health plan;
301.24 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare special 
301.25 	needs plan offered by the health plan;
301.26 	(iv) risk screening procedures;
301.27 	(v) health care coordination;
301.28 	(vi) member services and access to applicable protections and appeal processes;
301.29 	(vii) specialty provider networks;
302.1 	(viii) transportation services;
302.2 	(ix) treatment planning; and
302.3 	(x) administrative simplification for providers;
302.4 	(3) begin implementation of the projects no earlier than January 1, 2009, with not more 
302.5 	than 40 percent of the statewide population included during calendar year 2009 and additional 
302.6 	counties included in subsequent years;
302.7 	(4) waive any administrative rule not consistent with the implementation of the projects;
302.8 	(5) allow potential bidders at least 90 days to respond to the request for proposals; and
302.9 	(6) conduct an independent evaluation to determine if mental health outcomes have 
302.10 	improved in that county or counties according to measurable standards designed in 
302.11 	consultation with the advisory body established under this subdivision and reviewed by the 
302.12 	State Advisory Council on Mental Health.
302.13 	(c) Notwithstanding any statute or administrative rule to the contrary, the commissioner 
302.14 	may enroll all persons eligible for medical assistance with serious mental illness or emotional 
302.15 	disturbance in the prepaid plan of their choice within the project service area unless:
302.16 	(1) the individual is eligible for home and community-based services for persons with 
302.17 	developmental disabilities and related conditions under section 256B.092; or
302.18 	(2) the individual has a basis for exclusion from the prepaid plan under section 256B.69, 
302.19 	subdivision 4, other than disability, or mental illness, or emotional disturbance.
302.20 	(d) The commissioner shall involve organizations representing persons with mental 
302.21 	illness and their families in the development and distribution of information used to educate 
302.22 	potential enrollees regarding their options for health care and mental health service delivery 
302.23 	under this subdivision.
302.24 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
302.25 	medical assistance, or declines to choose a plan, the commissioner may preferentially assign 
302.26 	that person to the prepaid plan participating in the preferred integrated network. The 
302.27 	commissioner shall implement the enrollment changes within a project's service area on the 
302.28 	timeline specified in that project's approved application.
302.29 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may disenroll 
302.30 	from the plan at any time.
302.31 	(g) The commissioner, in consultation with consumers, families, and their representatives, 
302.32 	shall evaluate the projects begun in 2009, and shall refine the design of the service integration 
303.1 	projects before expanding the projects. The commissioner shall report to the chairs of the 
303.2 	legislative committees with jurisdiction over mental health services by March 1, 2008, on 
303.3 	plans for evaluation of preferred integrated networks established under this subdivision.
303.4 	(h) The commissioner shall apply for any federal waivers necessary to implement these 
303.5 	changes.
303.6 	(i) Payment for Medicaid service providers under this subdivision for the months of 
303.7 	May and June will be made no earlier than July 1 of the same calendar year.

303.8 	Sec. 11. Minnesota Statutes 2024, section 245.4835, subdivision 2, is amended to read:
303.9 		Subd. 2.Failure to maintain expenditures. (a) If a county does not comply with 
303.10 	subdivision 1, the commissioner shall require the county to develop a corrective action plan 
303.11 	according to a format and timeline established by the commissioner. If the commissioner 
303.12 	determines that a county has not developed an acceptable corrective action plan within the 
303.13 	required timeline, or that the county is not in compliance with an approved corrective action 
303.14 	plan, the protections provided to that county under section 245.485 do not apply.
303.15 	(b) The commissioner shall consider the following factors to determine whether to 
303.16 	approve a county's corrective action plan:
303.17 	(1) the degree to which a county is maximizing revenues for mental health services from 
303.18 	noncounty sources;
303.19 	(2) the degree to which a county is expanding use of alternative services that meet mental 
303.20 	health needs, but do not count as mental health services within existing reporting systems. 
303.21 	If approved by the commissioner, the alternative services must be included in the county's 
303.22 	base as well as subsequent years. The commissioner's approval for alternative services must 
303.23 	be based on the following criteria:
303.24 	(i) the service must be provided to children with emotional disturbance or adults with 
303.25 	mental illness;
303.26 	(ii) the services must be based on an individual treatment plan or individual community 
303.27 	support plan as defined in the Comprehensive Mental Health Act; and
303.28 	(iii) the services must be supervised by a mental health professional and provided by 
303.29 	staff who meet the staff qualifications defined in sections 256B.0943, subdivision 7, and 
303.30 	256B.0623, subdivision 5.
303.31 	(c) Additional county expenditures to make up for the prior year's underspending may 
303.32 	be spread out over a two-year period.

304.1 	Sec. 12. Minnesota Statutes 2024, section 245.4863, is amended to read:
304.2 	245.4863 INTEGRATED CO-OCCURRING DISORDER TREATMENT.
304.3 	(a) The commissioner shall require individuals who perform substance use disorder 
304.4 	assessments to screen clients for co-occurring mental health disorders, and staff who perform 
304.5 	mental health diagnostic assessments to screen for co-occurring substance use disorders. 
304.6 	Screening tools must be approved by the commissioner. If a client screens positive for a 
304.7 	co-occurring mental health or substance use disorder, the individual performing the screening 
304.8 	must document what actions will be taken in response to the results and whether further 
304.9 	assessments must be performed.
304.10 	(b) Notwithstanding paragraph (a), screening is not required when:
304.11 	(1) the presence of co-occurring disorders was documented for the client in the past 12 
304.12 	months;
304.13 	(2) the client is currently receiving co-occurring disorders treatment;
304.14 	(3) the client is being referred for co-occurring disorders treatment; or
304.15 	(4) a mental health professional who is competent to perform diagnostic assessments of 
304.16 	co-occurring disorders is performing a diagnostic assessment to identify whether the client 
304.17 	may have co-occurring mental health and substance use disorders. If an individual is 
304.18 	identified to have co-occurring mental health and substance use disorders, the assessing 
304.19 	mental health professional must document what actions will be taken to address the client's 
304.20 	co-occurring disorders.
304.21 	(c) The commissioner shall adopt rules as necessary to implement this section. The 
304.22 	commissioner shall ensure that the rules are effective on July 1, 2013, thereby establishing 
304.23 	a certification process for integrated dual disorder treatment providers and a system through 
304.24 	which individuals receive integrated dual diagnosis treatment if assessed as having both a 
304.25 	substance use disorder and either a serious mental illness or emotional disturbance.
304.26 	(d) The commissioner shall apply for any federal waivers necessary to secure, to the 
304.27 	extent allowed by law, federal financial participation for the provision of integrated dual 
304.28 	diagnosis treatment to persons with co-occurring disorders.

304.29 	Sec. 13. Minnesota Statutes 2024, section 245.487, subdivision 2, is amended to read:
304.30 		Subd. 2.Findings. The legislature finds there is a need for further development of 
304.31 	existing clinical services for emotionally disturbed children with mental illness and their 
304.32 	families and the creation of new services for this population. Although the services specified 
305.1 	in sections 245.487 to 245.4889 are mental health services, sections 245.487 to 245.4889
305.2 	emphasize the need for a child-oriented and family-oriented approach of therapeutic 
305.3 	programming and the need for continuity of care with other community agencies. At the 
305.4 	same time, sections 245.487 to 245.4889 emphasize the importance of developing special 
305.5 	mental health expertise in children's mental health services because of the unique needs of 
305.6 	this population.
305.7 	Nothing in sections 245.487 to 245.4889 shall be construed to abridge the authority of 
305.8 	the court to make dispositions under chapter 260, but the mental health services due any 
305.9 	child with serious and persistent mental illness, as defined in section 245.462, subdivision 
305.10 	20, or with severe emotional disturbance serious mental illness, as defined in section 
305.11 	245.4871, subdivision 6, shall be made a part of any disposition affecting that child.

305.12 	Sec. 14. Minnesota Statutes 2024, section 245.4871, subdivision 3, is amended to read:
305.13 		Subd. 3.Case management services. "Case management services" means activities 
305.14 	that are coordinated with the family community support services and are designed to help 
305.15 	the child with severe emotional disturbance serious mental illness and the child's family 
305.16 	obtain needed mental health services, social services, educational services, health services, 
305.17 	vocational services, recreational services, and related services in the areas of volunteer 
305.18 	services, advocacy, transportation, and legal services. Case management services include 
305.19 	assisting in obtaining a comprehensive diagnostic assessment, developing an individual 
305.20 	family community support plan, and assisting the child and the child's family in obtaining 
305.21 	needed services by coordination with other agencies and assuring continuity of care. Case 
305.22 	managers must assess and reassess the delivery, appropriateness, and effectiveness of services 
305.23 	over time.

305.24 	Sec. 15. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
305.25 		Subd. 4.Case management service provider. (a) "Case management service provider" 
305.26 	means a case manager or case manager associate employed by the county or other entity 
305.27 	authorized by the county board to provide case management services specified in subdivision 
305.28 	3 for the child with severe emotional disturbance serious mental illness and the child's 
305.29 	family.
305.30 	(b) A case manager must:
305.31 	(1) have experience and training in working with children;
306.1 	(2) have at least a bachelor's degree in one of the behavioral sciences or a related field 
306.2 	including, but not limited to, social work, psychology, or nursing from an accredited college 
306.3 	or university or meet the requirements of paragraph (d);
306.4 	(3) have experience and training in identifying and assessing a wide range of children's 
306.5 	needs;
306.6 	(4) be knowledgeable about local community resources and how to use those resources 
306.7 	for the benefit of children and their families; and
306.8 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
306.9 	and (g), as applicable.
306.10 	(c) A case manager may be a member of any professional discipline that is part of the 
306.11 	local system of care for children established by the county board.
306.12 	(d) A case manager without a bachelor's degree must meet one of the requirements in 
306.13 	clauses (1) to (3):
306.14 	(1) have three or four years of experience as a case manager associate;
306.15 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
306.16 	training in psychiatry and work experience consisting of community interaction and 
306.17 	involvement or community discharge planning in a mental health setting totaling three years; 
306.18 	or
306.19 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
306.20 	Services waiver provision and meets the continuing education, supervision, and mentoring 
306.21 	requirements in this section.
306.22 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
306.23 	of mental health services to children must receive regular ongoing supervision and clinical 
306.24 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
306.25 	supervision regarding individual service delivery with a case management supervisor. The 
306.26 	other 26 hours of supervision may be provided by a case manager with two years of 
306.27 	experience. Group supervision may not constitute more than one-half of the required 
306.28 	supervision hours.
306.29 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
306.30 	mental health services to children with emotional disturbance mental illness must:
306.31 	(1) begin 40 hours of training approved by the commissioner of human services in case 
306.32 	management skills and in the characteristics and needs of children with severe emotional 
307.1 	disturbance serious mental illness before beginning to provide case management services; 
307.2 	and
307.3 	(2) receive clinical supervision regarding individual service delivery from a mental 
307.4 	health professional at least one hour each week until the requirement of 2,000 hours of 
307.5 	experience is met.
307.6 	(g) A case manager who is not licensed, registered, or certified by a health-related 
307.7 	licensing board must receive 30 hours of continuing education and training in severe 
307.8 	emotional disturbance serious mental illness and mental health services every two years.
307.9 	(h) Clinical supervision must be documented in the child's record. When the case manager 
307.10 	is not a mental health professional, the county board must provide or contract for needed 
307.11 	clinical supervision.
307.12 	(i) The county board must ensure that the case manager has the freedom to access and 
307.13 	coordinate the services within the local system of care that are needed by the child.
307.14 	(j) A case manager associate (CMA) must:
307.15 	(1) work under the direction of a case manager or case management supervisor;
307.16 	(2) be at least 21 years of age;
307.17 	(3) have at least a high school diploma or its equivalent; and
307.18 	(4) meet one of the following criteria:
307.19 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
307.20 	(ii) be a registered nurse without a bachelor's degree;
307.21 	(iii) have three years of life experience as a primary caregiver to a child with serious 
307.22 	emotional disturbance mental illness as defined in subdivision 6 within the previous ten 
307.23 	years;
307.24 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
307.25 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
307.26 	services to children with emotional disturbances mental illness; hours worked as a mental 
307.27 	health behavioral aide I or II under section 256B.0943, subdivision 7, may count toward 
307.28 	the 6,000 hours of supervised work experience.
307.29 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
307.30 	after four years of supervised work experience as a case manager associate. Individuals 
308.1 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
308.2 	experience as a case manager associate.
308.3 	(k) Case manager associates must meet the following supervision, mentoring, and 
308.4 	continuing education requirements;
308.5 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
308.6 	(2) receive at least 40 hours of continuing education in severe emotional disturbance
308.7 	serious mental illness and mental health service annually; and
308.8 	(3) receive at least five hours of mentoring per week from a case management mentor. 
308.9 	A "case management mentor" means a qualified, practicing case manager or case management 
308.10 	supervisor who teaches or advises and provides intensive training and clinical supervision 
308.11 	to one or more case manager associates. Mentoring may occur while providing direct services 
308.12 	to consumers in the office or in the field and may be provided to individuals or groups of 
308.13 	case manager associates. At least two mentoring hours per week must be individual and 
308.14 	face-to-face.
308.15 	(l) A case management supervisor must meet the criteria for a mental health professional 
308.16 	as specified in subdivision 27.
308.17 	(m) An immigrant who does not have the qualifications specified in this subdivision 
308.18 	may provide case management services to child immigrants with severe emotional 
308.19 	disturbance serious mental illness of the same ethnic group as the immigrant if the person:
308.20 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
308.21 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
308.22 	or university;
308.23 	(2) completes 40 hours of training as specified in this subdivision; and
308.24 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
308.25 	a bachelor's degree and 2,000 hours of supervised experience are met.

308.26 	Sec. 16. Minnesota Statutes 2024, section 245.4871, subdivision 6, is amended to read:
308.27 		Subd. 6.Child with severe emotional disturbance serious mental illness. For purposes 
308.28 	of eligibility for case management and family community support services, "child with 
308.29 	severe emotional disturbance serious mental illness" means a child who has an emotional 
308.30 	disturbance mental illness and who meets one of the following criteria:
309.1 	(1) the child has been admitted within the last three years or is at risk of being admitted 
309.2 	to inpatient treatment or residential treatment for an emotional disturbance mental illness; 
309.3 	or
309.4 	(2) the child is a Minnesota resident and is receiving inpatient treatment or residential 
309.5 	treatment for an emotional disturbance mental illness through the interstate compact; or
309.6 	(3) the child has one of the following as determined by a mental health professional:
309.7 	(i) psychosis or a clinical depression; or
309.8 	(ii) risk of harming self or others as a result of an emotional disturbance mental illness; 
309.9 	or
309.10 	(iii) psychopathological symptoms as a result of being a victim of physical or sexual 
309.11 	abuse or of psychic trauma within the past year; or
309.12 	(4) the child, as a result of an emotional disturbance mental illness, has significantly 
309.13 	impaired home, school, or community functioning that has lasted at least one year or that, 
309.14 	in the written opinion of a mental health professional, presents substantial risk of lasting at 
309.15 	least one year.

309.16 	Sec. 17. Minnesota Statutes 2024, section 245.4871, subdivision 13, is amended to read:
309.17 		Subd. 13.Education and prevention services. (a) "Education and prevention services" 
309.18 	means services designed to:
309.19 	(1) educate the general public;
309.20 	(2) increase the understanding and acceptance of problems associated with emotional 
309.21 	disturbances children's mental illnesses;
309.22 	(3) improve people's skills in dealing with high-risk situations known to affect children's 
309.23 	mental health and functioning; and
309.24 	(4) refer specific children or their families with mental health needs to mental health 
309.25 	services.
309.26 	(b) The services include distribution to individuals and agencies identified by the county 
309.27 	board and the local children's mental health advisory council of information on predictors 
309.28 	and symptoms of emotional disturbances mental illnesses, where mental health services are 
309.29 	available in the county, and how to access the services.

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

310.11 	Sec. 19. Minnesota Statutes 2024, section 245.4871, subdivision 17, is amended to read:
310.12 		Subd. 17.Family community support services. "Family community support services" 
310.13 	means services provided under the treatment supervision of a mental health professional 
310.14 	and designed to help each child with severe emotional disturbance serious mental illness to 
310.15 	function and remain with the child's family in the community. Family community support 
310.16 	services do not include acute care hospital inpatient treatment, residential treatment services, 
310.17 	or regional treatment center services. Family community support services include:
310.18 	(1) client outreach to each child with severe emotional disturbance serious mental illness
310.19 	and the child's family;
310.20 	(2) medication monitoring where necessary;
310.21 	(3) assistance in developing independent living skills;
310.22 	(4) assistance in developing parenting skills necessary to address the needs of the child 
310.23 	with severe emotional disturbance serious mental illness;
310.24 	(5) assistance with leisure and recreational activities;
310.25 	(6) crisis planning, including crisis placement and respite care;
310.26 	(7) professional home-based family treatment;
310.27 	(8) foster care with therapeutic supports;
310.28 	(9) day treatment;
310.29 	(10) assistance in locating respite care and special needs day care; and
311.1 	(11) assistance in obtaining potential financial resources, including those benefits listed 
311.2 	in section 245.4884, subdivision 5.

311.3 	Sec. 20. Minnesota Statutes 2024, section 245.4871, subdivision 19, is amended to read:
311.4 		Subd. 19.Individual family community support plan. "Individual family community 
311.5 	support plan" means a written plan developed by a case manager in conjunction with the 
311.6 	family and the child with severe emotional disturbance serious mental illness on the basis 
311.7 	of a diagnostic assessment and a functional assessment. The plan identifies specific services 
311.8 	needed by a child and the child's family to:
311.9 	(1) treat the symptoms and dysfunctions determined in the diagnostic assessment;
311.10 	(2) relieve conditions leading to emotional disturbance mental illness and improve the 
311.11 	personal well-being of the child;
311.12 	(3) improve family functioning;
311.13 	(4) enhance daily living skills;
311.14 	(5) improve functioning in education and recreation settings;
311.15 	(6) improve interpersonal and family relationships;
311.16 	(7) enhance vocational development; and
311.17 	(8) assist in obtaining transportation, housing, health services, and employment.

311.18 	Sec. 21. Minnesota Statutes 2024, section 245.4871, subdivision 21, is amended to read:
311.19 		Subd. 21.Individual treatment plan. (a) "Individual treatment plan" means the 
311.20 	formulation of planned services that are responsive to the needs and goals of a client. An 
311.21 	individual treatment plan must be completed according to section 245I.10, subdivisions 7 
311.22 	and 8.
311.23 	(b) A children's residential facility licensed under Minnesota Rules, chapter 2960, is 
311.24 	exempt from the requirements of section 245I.10, subdivisions 7 and 8. Instead, the individual 
311.25 	treatment plan must:
311.26 	(1) include a written plan of intervention, treatment, and services for a child with an 
311.27 	emotional disturbance mental illness that the service provider develops under the clinical 
311.28 	supervision of a mental health professional on the basis of a diagnostic assessment;
311.29 	(2) be developed in conjunction with the family unless clinically inappropriate; and
312.1 	(3) identify goals and objectives of treatment, treatment strategy, a schedule for 
312.2 	accomplishing treatment goals and objectives, and the individuals responsible for providing 
312.3 	treatment to the child with an emotional disturbance mental illness.

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

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

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

312.19 	Sec. 25. Minnesota Statutes 2024, section 245.4871, subdivision 31, is amended to read:
312.20 		Subd. 31.Professional home-based family treatment. (a) "Professional home-based 
312.21 	family treatment" means intensive mental health services provided to children because of 
312.22 	an emotional disturbance mental illness: (1) who are at risk of out-of-home placement
312.23 	residential treatment or therapeutic foster care; (2) who are in out-of-home placement
312.24 	residential treatment or therapeutic foster care; or (3) who are returning from out-of-home 
312.25 	placement residential treatment or therapeutic foster care.
312.26 	(b) Services are provided to the child and the child's family primarily in the child's home 
312.27 	environment. Services may also be provided in the child's school, child care setting, or other 
312.28 	community setting appropriate to the child. Services must be provided on an individual 
312.29 	family basis, must be child-oriented and family-oriented, and must be designed using 
312.30 	information from diagnostic and functional assessments to meet the specific mental health 
313.1 	needs of the child and the child's family. Services must be coordinated with other services 
313.2 	provided to the child and the child's family.
313.3 	(c) Examples of services are: (1) individual therapy; (2) family therapy; (3) client 
313.4 	outreach; (4) assistance in developing individual living skills; (5) assistance in developing 
313.5 	parenting skills necessary to address the needs of the child; (6) assistance with leisure and 
313.6 	recreational services; (7) crisis planning, including crisis respite care and arranging for crisis 
313.7 	placement; and (8) assistance in locating respite and child care. Services must be coordinated 
313.8 	with other services provided to the child and family.

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

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

313.23 	Sec. 28. Minnesota Statutes 2024, section 245.4873, subdivision 2, is amended to read:
313.24 		Subd. 2.State level; coordination. The Children's Cabinet, under section 4.045, in 
313.25 	consultation with a representative of the Minnesota District Judges Association Juvenile 
313.26 	Committee, shall:
313.27 	(1) educate each agency about the policies, procedures, funding, and services for children 
313.28 	with emotional disturbances mental illnesses of all agencies represented;
313.29 	(2) develop mechanisms for interagency coordination on behalf of children with emotional 
313.30 	disturbances mental illnesses;
314.1 	(3) identify barriers including policies and procedures within all agencies represented 
314.2 	that interfere with delivery of mental health services for children;
314.3 	(4) recommend policy and procedural changes needed to improve development and 
314.4 	delivery of mental health services for children in the agency or agencies they represent; and
314.5 	(5) identify mechanisms for better use of federal and state funding in the delivery of 
314.6 	mental health services for children.

314.7 	Sec. 29. Minnesota Statutes 2024, section 245.4874, subdivision 1, is amended to read:
314.8 		Subdivision 1.Duties of county board. (a) The county board must:
314.9 	(1) develop a system of affordable and locally available children's mental health services 
314.10 	according to sections 245.487 to 245.4889;
314.11 	(2) consider the assessment of unmet needs in the county as reported by the local 
314.12 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
314.13 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
314.14 	advisory council, readily available data to assist in the determination of unmet needs;
314.15 	(3) assure that parents and providers in the county receive information about how to 
314.16 	gain access to services provided according to sections 245.487 to 245.4889;
314.17 	(4) coordinate the delivery of children's mental health services with services provided 
314.18 	by social services, education, corrections, health, and vocational agencies to improve the 
314.19 	availability of mental health services to children and the cost-effectiveness of their delivery;
314.20 	(5) assure that mental health services delivered according to sections 245.487 to 245.4889 
314.21 	are delivered expeditiously and are appropriate to the child's diagnostic assessment and 
314.22 	individual treatment plan;
314.23 	(6) provide for case management services to each child with severe emotional disturbance
314.24 	serious mental illness according to sections 245.486; 245.4871, subdivisions 3 and 4; and 
314.25 	245.4881, subdivisions 1, 3, and 5;
314.26 	(7) provide for screening of each child under section 245.4885 upon admission to a 
314.27 	residential treatment facility, acute care hospital inpatient treatment, or informal admission 
314.28 	to a regional treatment center;
314.29 	(8) prudently administer grants and purchase-of-service contracts that the county board 
314.30 	determines are necessary to fulfill its responsibilities under sections 245.487 to 245.4889;
315.1 	(9) assure that mental health professionals, mental health practitioners, and case managers 
315.2 	employed by or under contract to the county to provide mental health services are qualified 
315.3 	under section 245.4871;
315.4 	(10) assure that children's mental health services are coordinated with adult mental health 
315.5 	services specified in sections 245.461 to 245.486 so that a continuum of mental health 
315.6 	services is available to serve persons with mental illness, regardless of the person's age;
315.7 	(11) assure that culturally competent mental health consultants are used as necessary to 
315.8 	assist the county board in assessing and providing appropriate treatment for children of 
315.9 	cultural or racial minority heritage; and
315.10 	(12) consistent with section 245.486, arrange for or provide a children's mental health 
315.11 	screening for:
315.12 	(i) a child receiving child protective services;
315.13 	(ii) a child in out-of-home placement residential treatment or therapeutic foster care;
315.14 	(iii) a child for whom parental rights have been terminated;
315.15 	(iv) a child found to be delinquent; or
315.16 	(v) a child found to have committed a juvenile petty offense for the third or subsequent 
315.17 	time.
315.18 	A children's mental health screening is not required when a screening or diagnostic 
315.19 	assessment has been performed within the previous 180 days, or the child is currently under 
315.20 	the care of a mental health professional.
315.21 	(b) When a child is receiving protective services or is in out-of-home placement
315.22 	residential treatment or foster care, the court or county agency must notify a parent or 
315.23 	guardian whose parental rights have not been terminated of the potential mental health 
315.24 	screening and the option to prevent the screening by notifying the court or county agency 
315.25 	in writing.
315.26 	(c) When a child is found to be delinquent or a child is found to have committed a 
315.27 	juvenile petty offense for the third or subsequent time, the court or county agency must 
315.28 	obtain written informed consent from the parent or legal guardian before a screening is 
315.29 	conducted unless the court, notwithstanding the parent's failure to consent, determines that 
315.30 	the screening is in the child's best interest.
315.31 	(d) The screening shall be conducted with a screening instrument approved by the 
315.32 	commissioner of human services according to criteria that are updated and issued annually 
316.1 	to ensure that approved screening instruments are valid and useful for child welfare and 
316.2 	juvenile justice populations. Screenings shall be conducted by a mental health practitioner 
316.3 	as defined in section 245.4871, subdivision 26, or a probation officer or local social services 
316.4 	agency staff person who is trained in the use of the screening instrument. Training in the 
316.5 	use of the instrument shall include:
316.6 	(1) training in the administration of the instrument;
316.7 	(2) the interpretation of its validity given the child's current circumstances;
316.8 	(3) the state and federal data practices laws and confidentiality standards;
316.9 	(4) the parental consent requirement; and
316.10 	(5) providing respect for families and cultural values.
316.11 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
316.12 	mental health insurance, the local social services agency, in consultation with the child's 
316.13 	family, shall have conducted a diagnostic assessment, including a functional assessment. 
316.14 	The administration of the screening shall safeguard the privacy of children receiving the 
316.15 	screening and their families and shall comply with the Minnesota Government Data Practices 
316.16 	Act, chapter 13, and the federal Health Insurance Portability and Accountability Act of 
316.17 	1996, Public Law 104-191. Screening results are classified as private data on individuals, 
316.18 	as defined by section 13.02, subdivision 12. The county board or Tribal nation may provide 
316.19 	the commissioner with access to the screening results for the purposes of program evaluation 
316.20 	and improvement.
316.21 	(e) When the county board refers clients to providers of children's therapeutic services 
316.22 	and supports under section 256B.0943, the county board must clearly identify the desired 
316.23 	services components not covered under section 256B.0943 and identify the reimbursement 
316.24 	source for those requested services, the method of payment, and the payment rate to the 
316.25 	provider.

316.26 	Sec. 30. Minnesota Statutes 2024, section 245.4875, subdivision 5, is amended to read:
316.27 		Subd. 5.Local children's advisory council. (a) By October 1, 1989, the county board, 
316.28 	individually or in conjunction with other county boards, shall establish a local children's 
316.29 	mental health advisory council or children's mental health subcommittee of the existing 
316.30 	local mental health advisory council or shall include persons on its existing mental health 
316.31 	advisory council who are representatives of children's mental health interests. The following 
316.32 	individuals must serve on the local children's mental health advisory council, the children's 
316.33 	mental health subcommittee of an existing local mental health advisory council, or be 
317.1 	included on an existing mental health advisory council: (1) at least one person who was in 
317.2 	a mental health program as a child or adolescent; (2) at least one parent of a child or 
317.3 	adolescent with severe emotional disturbance serious mental illness; (3) one children's 
317.4 	mental health professional; (4) representatives of minority populations of significant size 
317.5 	residing in the county; (5) a representative of the children's mental health local coordinating 
317.6 	council; and (6) one family community support services program representative.
317.7 	(b) The local children's mental health advisory council or children's mental health 
317.8 	subcommittee of an existing advisory council shall seek input from parents, former 
317.9 	consumers, providers, and others about the needs of children with emotional disturbance
317.10 	mental illness in the local area and services needed by families of these children, and shall 
317.11 	meet monthly, unless otherwise determined by the council or subcommittee, but not less 
317.12 	than quarterly, to review, evaluate, and make recommendations regarding the local children's 
317.13 	mental health system. Annually, the local children's mental health advisory council or 
317.14 	children's mental health subcommittee of the existing local mental health advisory council 
317.15 	shall:
317.16 	(1) arrange for input from the local system of care providers regarding coordination of 
317.17 	care between the services;
317.18 	(2) identify for the county board the individuals, providers, agencies, and associations 
317.19 	as specified in section 245.4877, clause (2); and
317.20 	(3) provide to the county board a report of unmet mental health needs of children residing 
317.21 	in the county.
317.22 	(c) The county board shall consider the advice of its local children's mental health 
317.23 	advisory council or children's mental health subcommittee of the existing local mental health 
317.24 	advisory council in carrying out its authorities and responsibilities.

317.25 	Sec. 31. Minnesota Statutes 2024, section 245.4876, subdivision 4, is amended to read:
317.26 		Subd. 4.Referral for case management. Each provider of emergency services, outpatient 
317.27 	treatment, community support services, family community support services, day treatment 
317.28 	services, screening under section 245.4885, professional home-based family treatment 
317.29 	services, residential treatment facilities, acute care hospital inpatient treatment facilities, or 
317.30 	regional treatment center services must inform each child with severe emotional disturbance
317.31 	serious mental illness, and the child's parent or legal representative, of the availability and 
317.32 	potential benefits to the child of case management. The information shall be provided as 
317.33 	specified in subdivision 5. If consent is obtained according to subdivision 5, the provider 
318.1 	must refer the child by notifying the county employee designated by the county board to 
318.2 	coordinate case management activities of the child's name and address and by informing 
318.3 	the child's family of whom to contact to request case management. The provider must 
318.4 	document compliance with this subdivision in the child's record. The parent or child may 
318.5 	directly request case management even if there has been no referral.

318.6 	Sec. 32. Minnesota Statutes 2024, section 245.4876, subdivision 5, is amended to read:
318.7 		Subd. 5.Consent for services or for release of information. (a) Although sections 
318.8 	245.487 to 245.4889 require each county board, within the limits of available resources, to 
318.9 	make the mental health services listed in those sections available to each child residing in 
318.10 	the county who needs them, the county board shall not provide any services, either directly 
318.11 	or by contract, unless consent to the services is obtained under this subdivision. The case 
318.12 	manager assigned to a child with a severe emotional disturbance serious mental illness shall 
318.13 	not disclose to any person other than the case manager's immediate supervisor and the mental 
318.14 	health professional providing clinical supervision of the case manager information on the 
318.15 	child, the child's family, or services provided to the child or the child's family without 
318.16 	informed written consent unless required to do so by statute or under the Minnesota 
318.17 	Government Data Practices Act. Informed written consent must comply with section 13.05, 
318.18 	subdivision 4, paragraph (d), and specify the purpose and use for which the case manager 
318.19 	may disclose the information.
318.20 	(b) The consent or authorization must be obtained from the child's parent unless: (1) the 
318.21 	parental rights are terminated; or (2) consent is otherwise provided under sections 144.341
318.22 	to 144.347; 253B.04, subdivision 1; 260C.148; 260C.151; and 260C.201, subdivision 1, 
318.23 	the terms of appointment of a court-appointed guardian or conservator, or federal regulations 
318.24 	governing substance use disorder services.

318.25 	Sec. 33. Minnesota Statutes 2024, section 245.4877, is amended to read:
318.26 	245.4877 EDUCATION AND PREVENTION SERVICES.
318.27 	Education and prevention services must be available to all children residing in the county. 
318.28 	Education and prevention services must be designed to:
318.29 	(1) convey information regarding emotional disturbances mental illness, mental health 
318.30 	needs, and treatment resources to the general public;
318.31 	(2) at least annually, distribute to individuals and agencies identified by the county board 
318.32 	and the local children's mental health advisory council information on predictors and 
319.1 	symptoms of emotional disturbances mental illness, where mental health services are 
319.2 	available in the county, and how to access the services;
319.3 	(3) increase understanding and acceptance of problems associated with emotional 
319.4 	disturbances mental illness;
319.5 	(4) improve people's skills in dealing with high-risk situations known to affect children's 
319.6 	mental health and functioning;
319.7 	(5) prevent development or deepening of emotional disturbances mental illness; and
319.8 	(6) refer each child with emotional disturbance mental illness or the child's family with 
319.9 	additional mental health needs to appropriate mental health services.

319.10 	Sec. 34. Minnesota Statutes 2024, section 245.488, subdivision 1, is amended to read:
319.11 		Subdivision 1.Availability of outpatient services. (a) County boards must provide or 
319.12 	contract for enough outpatient services within the county to meet the needs of each child 
319.13 	with emotional disturbance mental illness residing in the county and the child's family. 
319.14 	Services may be provided directly by the county through county-operated mental health 
319.15 	clinics meeting the standards of chapter 245I; by contract with privately operated mental 
319.16 	health clinics meeting the standards of chapter 245I; by contract with hospital mental health 
319.17 	outpatient programs certified by the Joint Commission on Accreditation of Hospital 
319.18 	Organizations; or by contract with a mental health professional. A child or a child's parent 
319.19 	may be required to pay a fee based in accordance with section 245.481. Outpatient services 
319.20 	include:
319.21 	(1) conducting diagnostic assessments;
319.22 	(2) conducting psychological testing;
319.23 	(3) developing or modifying individual treatment plans;
319.24 	(4) making referrals and recommending placements as appropriate;
319.25 	(5) treating the child's mental health needs through therapy; and
319.26 	(6) prescribing and managing medication and evaluating the effectiveness of prescribed 
319.27 	medication.
319.28 	(b) County boards may request a waiver allowing outpatient services to be provided in 
319.29 	a nearby trade area if it is determined that the child requires necessary and appropriate 
319.30 	services that are only available outside the county.
320.1 	(c) Outpatient services offered by the county board to prevent placement must be at the 
320.2 	level of treatment appropriate to the child's diagnostic assessment.

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

320.11 	Sec. 36. Minnesota Statutes 2024, section 245.4881, subdivision 1, is amended to read:
320.12 		Subdivision 1.Availability of case management services. (a) The county board shall 
320.13 	provide case management services for each child with severe emotional disturbance serious 
320.14 	mental illness who is a resident of the county and the child's family who request or consent 
320.15 	to the services. Case management services must be offered to a child with a serious emotional 
320.16 	disturbance mental illness who is over the age of 18 consistent with section 245.4875, 
320.17 	subdivision 8, or the child's legal representative, provided the child's service needs can be 
320.18 	met within the children's service system. Before discontinuing case management services 
320.19 	under this subdivision for children between the ages of 17 and 21, a transition plan must be 
320.20 	developed. The transition plan must be developed with the child and, with the consent of a 
320.21 	child age 18 or over, the child's parent, guardian, or legal representative. The transition plan 
320.22 	should include plans for health insurance, housing, education, employment, and treatment. 
320.23 	Staffing ratios must be sufficient to serve the needs of the clients. The case manager must 
320.24 	meet the requirements in section 245.4871, subdivision 4.
320.25 	(b) Except as permitted by law and the commissioner under demonstration projects, case 
320.26 	management services provided to children with severe emotional disturbance serious mental 
320.27 	illness eligible for medical assistance must be billed to the medical assistance program under 
320.28 	sections 256B.02, subdivision 8, and 256B.0625.
320.29 	(c) Case management services are eligible for reimbursement under the medical assistance 
320.30 	program. Costs of mentoring, supervision, and continuing education may be included in the 
320.31 	reimbursement rate methodology used for case management services under the medical 
320.32 	assistance program.

321.1 	Sec. 37. Minnesota Statutes 2024, section 245.4881, subdivision 4, is amended to read:
321.2 		Subd. 4.Individual family community support plan. (a) For each child, the case 
321.3 	manager must develop an individual family community support plan that incorporates the 
321.4 	child's individual treatment plan. The individual treatment plan may not be a substitute for 
321.5 	the development of an individual family community support plan. The case manager is 
321.6 	responsible for developing the individual family community support plan within 30 days 
321.7 	of intake based on a diagnostic assessment and for implementing and monitoring the delivery 
321.8 	of services according to the individual family community support plan. The case manager 
321.9 	must review the plan at least every 180 calendar days after it is developed, unless the case 
321.10 	manager has received a written request from the child's family or an advocate for the child 
321.11 	for a review of the plan every 90 days after it is developed. To the extent appropriate, the 
321.12 	child with severe emotional disturbance serious mental illness, the child's family, advocates, 
321.13 	service providers, and significant others must be involved in all phases of development and 
321.14 	implementation of the individual family community support plan. Notwithstanding the lack 
321.15 	of an individual family community support plan, the case manager shall assist the child and 
321.16 	child's family in accessing the needed services listed in section 245.4884, subdivision 1.
321.17 	(b) The child's individual family community support plan must state:
321.18 	(1) the goals and expected outcomes of each service and criteria for evaluating the 
321.19 	effectiveness and appropriateness of the service;
321.20 	(2) the activities for accomplishing each goal;
321.21 	(3) a schedule for each activity; and
321.22 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
321.23 	need and the implementation of the individual family community support plan.

321.24 	Sec. 38. Minnesota Statutes 2024, section 245.4882, subdivision 1, is amended to read:
321.25 		Subdivision 1.Availability of residential treatment services. County boards must 
321.26 	provide or contract for enough residential treatment services to meet the needs of each child 
321.27 	with severe emotional disturbance serious mental illness residing in the county and needing 
321.28 	this level of care. Length of stay is based on the child's residential treatment need and shall 
321.29 	be reviewed every 90 days. Services must be appropriate to the child's age and treatment 
321.30 	needs and must be made available as close to the county as possible. Residential treatment 
321.31 	must be designed to:
321.32 	(1) help the child improve family living and social interaction skills;
322.1 	(2) help the child gain the necessary skills to return to the community;
322.2 	(3) stabilize crisis admissions; and
322.3 	(4) work with families throughout the placement to improve the ability of the families 
322.4 	to care for children with severe emotional disturbance serious mental illness in the home.

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

322.14 	Sec. 40. Minnesota Statutes 2024, section 245.4884, is amended to read:
322.15 	245.4884 FAMILY COMMUNITY SUPPORT SERVICES.
322.16 		Subdivision 1.Availability of family community support services. By July 1, 1991, 
322.17 	county boards must provide or contract for sufficient family community support services 
322.18 	within the county to meet the needs of each child with severe emotional disturbance serious 
322.19 	mental illness who resides in the county and the child's family. Children or their parents 
322.20 	may be required to pay a fee in accordance with section 245.481.
322.21 	Family community support services must be designed to improve the ability of children 
322.22 	with severe emotional disturbance serious mental illness to:
322.23 	(1) manage basic activities of daily living;
322.24 	(2) function appropriately in home, school, and community settings;
322.25 	(3) participate in leisure time or community youth activities;
322.26 	(4) set goals and plans;
322.27 	(5) reside with the family in the community;
322.28 	(6) participate in after-school and summer activities;
322.29 	(7) make a smooth transition among mental health and education services provided to 
322.30 	children; and
323.1 	(8) make a smooth transition into the adult mental health system as appropriate.
323.2 	In addition, family community support services must be designed to improve overall 
323.3 	family functioning if clinically appropriate to the child's needs, and to reduce the need for 
323.4 	and use of placements more intensive, costly, or restrictive both in the number of admissions 
323.5 	and lengths of stay than indicated by the child's diagnostic assessment.
323.6 	The commissioner of human services shall work with mental health professionals to 
323.7 	develop standards for clinical supervision of family community support services. These 
323.8 	standards shall be incorporated in rule and in guidelines for grants for family community 
323.9 	support services.
323.10 		Subd. 2.Day treatment services provided. (a) Day treatment services must be part of 
323.11 	the family community support services available to each child with severe emotional 
323.12 	disturbance serious mental illness residing in the county. A child or the child's parent may 
323.13 	be required to pay a fee according to section 245.481. Day treatment services must be 
323.14 	designed to:
323.15 	(1) provide a structured environment for treatment;
323.16 	(2) provide support for residing in the community;
323.17 	(3) prevent placements that are more intensive, costly, or restrictive than necessary to 
323.18 	meet the child's need;
323.19 	(4) coordinate with or be offered in conjunction with the child's education program;
323.20 	(5) provide therapy and family intervention for children that are coordinated with 
323.21 	education services provided and funded by schools; and
323.22 	(6) operate during all 12 months of the year.
323.23 	(b) County boards may request a waiver from including day treatment services if they 
323.24 	can document that:
323.25 	(1) alternative services exist through the county's family community support services 
323.26 	for each child who would otherwise need day treatment services; and
323.27 	(2) county demographics and geography make the provision of day treatment services 
323.28 	cost ineffective and unfeasible.
323.29 		Subd. 3.Professional home-based family treatment provided. (a) By January 1, 1991, 
323.30 	county boards must provide or contract for sufficient professional home-based family 
323.31 	treatment within the county to meet the needs of each child with severe emotional disturbance
323.32 	serious mental illness who is at risk of out-of-home placement residential treatment or 
324.1 	therapeutic foster care due to the child's emotional disturbance mental illness or who is 
324.2 	returning to the home from out-of-home placement residential treatment or therapeutic 
324.3 	foster care. The child or the child's parent may be required to pay a fee according to section 
324.4 	245.481. The county board shall require that all service providers of professional home-based 
324.5 	family treatment set fee schedules approved by the county board that are based on the child's 
324.6 	or family's ability to pay. The professional home-based family treatment must be designed 
324.7 	to assist each child with severe emotional disturbance serious mental illness who is at risk 
324.8 	of or who is returning from out-of-home placement residential treatment or therapeutic 
324.9 	foster care and the child's family to:
324.10 	(1) improve overall family functioning in all areas of life;
324.11 	(2) treat the child's symptoms of emotional disturbance mental illness that contribute to 
324.12 	a risk of out-of-home placement residential treatment or therapeutic foster care;
324.13 	(3) provide a positive change in the emotional, behavioral, and mental well-being of 
324.14 	children and their families; and
324.15 	(4) reduce risk of out-of-home placement residential treatment or therapeutic foster care
324.16 	for the identified child with severe emotional disturbance serious mental illness and other 
324.17 	siblings or successfully reunify and reintegrate into the family a child returning from 
324.18 	out-of-home placement residential treatment or therapeutic foster care due to emotional 
324.19 	disturbance mental illness.
324.20 	(b) Professional home-based family treatment must be provided by a team consisting of 
324.21 	a mental health professional and others who are skilled in the delivery of mental health 
324.22 	services to children and families in conjunction with other human service providers. The 
324.23 	professional home-based family treatment team must maintain flexible hours of service 
324.24 	availability and must provide or arrange for crisis services for each family, 24 hours a day, 
324.25 	seven days a week. Case loads for each professional home-based family treatment team 
324.26 	must be small enough to permit the delivery of intensive services and to meet the needs of 
324.27 	the family. Professional home-based family treatment providers shall coordinate services 
324.28 	and service needs with case managers assigned to children and their families. The treatment 
324.29 	team must develop an individual treatment plan that identifies the specific treatment 
324.30 	objectives for both the child and the family.
324.31 		Subd. 4.Therapeutic support of foster care. By January 1, 1992, county boards must 
324.32 	provide or contract for foster care with therapeutic support as defined in section 245.4871, 
324.33 	subdivision 34. Foster families caring for children with severe emotional disturbance serious 
325.1 	mental illness must receive training and supportive services, as necessary, at no cost to the 
325.2 	foster families within the limits of available resources.
325.3 		Subd. 5.Benefits assistance. The county board must offer help to a child with severe 
325.4 	emotional disturbance serious mental illness and the child's family in applying for federal 
325.5 	benefits, including Supplemental Security Income, medical assistance, and Medicare.

325.6 	Sec. 41. Minnesota Statutes 2024, section 245.4885, subdivision 1, is amended to read:
325.7 		Subdivision 1.Admission criteria. (a) Prior to admission or placement, except in the 
325.8 	case of an emergency, all children referred for treatment of severe emotional disturbance
325.9 	serious mental illness in a treatment foster care setting, residential treatment facility, or 
325.10 	informally admitted to a regional treatment center shall undergo an assessment to determine 
325.11 	the appropriate level of care if county funds are used to pay for the child's services. An 
325.12 	emergency includes when a child is in need of and has been referred for crisis stabilization 
325.13 	services under section 245.4882, subdivision 6. A child who has been referred to residential 
325.14 	treatment for crisis stabilization services in a residential treatment center is not required to 
325.15 	undergo an assessment under this section.
325.16 	(b) The county board shall determine the appropriate level of care for a child when 
325.17 	county-controlled funds are used to pay for the child's residential treatment under this 
325.18 	chapter, including residential treatment provided in a qualified residential treatment program 
325.19 	as defined in section 260C.007, subdivision 26d. When a county board does not have 
325.20 	responsibility for a child's placement and the child is enrolled in a prepaid health program 
325.21 	under section 256B.69, the enrolled child's contracted health plan must determine the 
325.22 	appropriate level of care for the child. When Indian Health Services funds or funds of a 
325.23 	tribally owned facility funded under the Indian Self-Determination and Education Assistance 
325.24 	Act, Public Law 93-638, are used for the child, the Indian Health Services or 638 tribal 
325.25 	health facility must determine the appropriate level of care for the child. When more than 
325.26 	one entity bears responsibility for a child's coverage, the entities shall coordinate level of 
325.27 	care determination activities for the child to the extent possible.
325.28 	(c) The child's level of care determination shall determine whether the proposed treatment:
325.29 	(1) is necessary;
325.30 	(2) is appropriate to the child's individual treatment needs;
325.31 	(3) cannot be effectively provided in the child's home; and
325.32 	(4) provides a length of stay as short as possible consistent with the individual child's 
325.33 	needs.
326.1 	(d) When a level of care determination is conducted, the county board or other entity 
326.2 	may not determine that a screening of a child, referral, or admission to a residential treatment 
326.3 	facility is not appropriate solely because services were not first provided to the child in a 
326.4 	less restrictive setting and the child failed to make progress toward or meet treatment goals 
326.5 	in the less restrictive setting. The level of care determination must be based on a diagnostic 
326.6 	assessment of a child that evaluates the child's family, school, and community living 
326.7 	situations; and an assessment of the child's need for care out of the home using a validated 
326.8 	tool which assesses a child's functional status and assigns an appropriate level of care to the 
326.9 	child. The validated tool must be approved by the commissioner of human services and 
326.10 	may be the validated tool approved for the child's assessment under section 260C.704 if the 
326.11 	juvenile treatment screening team recommended placement of the child in a qualified 
326.12 	residential treatment program. If a diagnostic assessment has been completed by a mental 
326.13 	health professional within the past 180 days, a new diagnostic assessment need not be 
326.14 	completed unless in the opinion of the current treating mental health professional the child's 
326.15 	mental health status has changed markedly since the assessment was completed. The child's 
326.16 	parent shall be notified if an assessment will not be completed and of the reasons. A copy 
326.17 	of the notice shall be placed in the child's file. Recommendations developed as part of the 
326.18 	level of care determination process shall include specific community services needed by 
326.19 	the child and, if appropriate, the child's family, and shall indicate whether these services 
326.20 	are available and accessible to the child and the child's family. The child and the child's 
326.21 	family must be invited to any meeting where the level of care determination is discussed 
326.22 	and decisions regarding residential treatment are made. The child and the child's family 
326.23 	may invite other relatives, friends, or advocates to attend these meetings.
326.24 	(e) During the level of care determination process, the child, child's family, or child's 
326.25 	legal representative, as appropriate, must be informed of the child's eligibility for case 
326.26 	management services and family community support services and that an individual family 
326.27 	community support plan is being developed by the case manager, if assigned.
326.28 	(f) The level of care determination, placement decision, and recommendations for mental 
326.29 	health services must be documented in the child's record and made available to the child's 
326.30 	family, as appropriate.

326.31 	Sec. 42. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
326.32 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
326.33 	make grants from available appropriations to assist:
326.34 	(1) counties;
327.1 	(2) Indian tribes;
327.2 	(3) children's collaboratives under section 142D.15 or 245.493; or
327.3 	(4) mental health service providers.
327.4 	(b) The following services are eligible for grants under this section:
327.5 	(1) services to children with emotional disturbances mental illness as defined in section 
327.6 	245.4871, subdivision 15, and their families;
327.7 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
327.8 	age 21 and their families;
327.9 	(3) respite care services for children with emotional disturbances mental illness or severe 
327.10 	emotional disturbances serious mental illness who are at risk of residential treatment or 
327.11 	hospitalization,; who are already in out-of-home placement residential treatment, therapeutic 
327.12 	foster care, or in family foster settings as defined in chapter 142B and at risk of change in 
327.13 	out-of-home placement foster care or placement in a residential facility or other higher level 
327.14 	of care,; who have utilized crisis services or emergency room services,; or who have 
327.15 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
327.16 	care services are defined under subdivision 4. A child is not required to have case 
327.17 	management services to receive respite care services. Counties must work to provide access 
327.18 	to regularly scheduled respite care;
327.19 	(4) children's mental health crisis services;
327.20 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
327.21 	(6) mental health services for people from cultural and ethnic minorities, including 
327.22 	supervision of clinical trainees who are Black, indigenous, or people of color;
327.23 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
327.24 	(8) services to promote and develop the capacity of providers to use evidence-based 
327.25 	practices in providing children's mental health services;
327.26 	(9) school-linked mental health services under section 245.4901;
327.27 	(10) building evidence-based mental health intervention capacity for children birth to 
327.28 	age five;
327.29 	(11) suicide prevention and counseling services that use text messaging statewide;
327.30 	(12) mental health first aid training;
328.1 	(13) training for parents, collaborative partners, and mental health providers on the 
328.2 	impact of adverse childhood experiences and trauma and development of an interactive 
328.3 	website to share information and strategies to promote resilience and prevent trauma;
328.4 	(14) transition age services to develop or expand mental health treatment and supports 
328.5 	for adolescents and young adults 26 years of age or younger;
328.6 	(15) early childhood mental health consultation;
328.7 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
328.8 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
328.9 	psychosis;
328.10 	(17) psychiatric consultation for primary care practitioners; and
328.11 	(18) providers to begin operations and meet program requirements when establishing a 
328.12 	new children's mental health program. These may be start-up grants.
328.13 	(c) Services under paragraph (b) must be designed to help each child to function and 
328.14 	remain with the child's family in the community and delivered consistent with the child's 
328.15 	treatment plan. Transition services to eligible young adults under this paragraph must be 
328.16 	designed to foster independent living in the community.
328.17 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
328.18 	reimbursement sources, if applicable.
328.19 	(e) The commissioner may establish and design a pilot program to expand the mobile 
328.20 	response and stabilization services model for children, youth, and families. The commissioner 
328.21 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
328.22 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
328.23 	amendment to scale the model statewide.

328.24 	Sec. 43. Minnesota Statutes 2024, section 245.4907, subdivision 2, is amended to read:
328.25 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
328.26 	employs a mental health certified peer family specialist qualified under section 245I.04, 
328.27 	subdivision 12, and that provides services to families who have a child:
328.28 	(1) with an emotional disturbance mental illness or severe emotional disturbance serious 
328.29 	mental illness under chapter 245;
328.30 	(2) receiving inpatient hospitalization under section 256B.0625, subdivision 1;
328.31 	(3) admitted to a residential treatment facility under section 245.4882;
329.1 	(4) receiving children's intensive behavioral health services under section 256B.0946;
329.2 	(5) receiving day treatment or children's therapeutic services and supports under section 
329.3 	256B.0943; or
329.4 	(6) receiving crisis response services under section 256B.0624.

329.5 	Sec. 44. Minnesota Statutes 2024, section 245.491, subdivision 2, is amended to read:
329.6 		Subd. 2.Purpose. The legislature finds that children with mental illnesses or emotional 
329.7 	or behavioral disturbances or who are at risk of suffering such disturbances often require 
329.8 	services from multiple service systems including mental health, social services, education, 
329.9 	corrections, juvenile court, health, and employment and economic development. In order 
329.10 	to better meet the needs of these children, it is the intent of the legislature to establish an 
329.11 	integrated children's mental health service system that:
329.12 	(1) allows local service decision makers to draw funding from a single local source so 
329.13 	that funds follow clients and eliminates the need to match clients, funds, services, and 
329.14 	provider eligibilities;
329.15 	(2) creates a local pool of state, local, and private funds to procure a greater medical 
329.16 	assistance federal financial participation;
329.17 	(3) improves the efficiency of use of existing resources;
329.18 	(4) minimizes or eliminates the incentives for cost and risk shifting; and
329.19 	(5) increases the incentives for earlier identification and intervention.
329.20 	The children's mental health integrated fund established under sections 245.491 to 245.495
329.21 	must be used to develop and support this integrated mental health service system. In 
329.22 	developing this integrated service system, it is not the intent of the legislature to limit any 
329.23 	rights available to children and their families through existing federal and state laws.

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

330.1 	Sec. 46. Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:
330.2 		Subd. 2a.Subcommittee on Children's Mental Health. The State Advisory Council 
330.3 	on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental 
330.4 	Health. The subcommittee must make recommendations to the advisory council on policies, 
330.5 	laws, regulations, and services relating to children's mental health. Members of the 
330.6 	subcommittee must include:
330.7 	(1) the commissioners or designees of the commissioners of the Departments of Human 
330.8 	Services, Health, Education, State Planning, and Corrections;
330.9 	(2) a designee of the Direct Care and Treatment executive board;
330.10 	(3) the commissioner of commerce or a designee of the commissioner who is 
330.11 	knowledgeable about medical insurance issues;
330.12 	(4) at least one representative of an advocacy group for children with emotional 
330.13 	disturbances mental illnesses;
330.14 	(5) providers of children's mental health services, including at least one provider of 
330.15 	services to preadolescent children, one provider of services to adolescents, and one 
330.16 	hospital-based provider;
330.17 	(6) parents of children who have emotional disturbances mental illnesses;
330.18 	(7) a present or former consumer of adolescent mental health services;
330.19 	(8) educators currently working with emotionally disturbed children with mental illnesses;
330.20 	(9) people knowledgeable about the needs of emotionally disturbed children with mental 
330.21 	illnesses of minority races and cultures;
330.22 	(10) people experienced in working with emotionally disturbed children with mental 
330.23 	illnesses who have committed status offenses;
330.24 	(11) members of the advisory council;
330.25 	(12) one person from the local corrections department and one representative of the 
330.26 	Minnesota District Judges Association Juvenile Committee; and
330.27 	(13) county commissioners and social services agency representatives.
330.28 	The chair of the advisory council shall appoint subcommittee members described in 
330.29 	clauses (4) to (12) through the process established in section 15.0597. The chair shall appoint 
330.30 	members to ensure a geographical balance on the subcommittee. Terms, compensation, 
330.31 	removal, and filling of vacancies are governed by subdivision 1, except that terms of 
331.1 	subcommittee members who are also members of the advisory council are coterminous with 
331.2 	their terms on the advisory council. The subcommittee shall meet at the call of the 
331.3 	subcommittee chair who is elected by the subcommittee from among its members. The 
331.4 	subcommittee expires with the expiration of the advisory council.

331.5 	Sec. 47. Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:
331.6 		Subd. 3.Compensation provisions. (a) If the commissioner of human services is unable 
331.7 	to obtain insurance through ordinary methods for coverage of foster home providers, the 
331.8 	appropriation shall be returned to the general fund and the state shall pay claims subject to 
331.9 	the following limitations.
331.10 	(a) (b) Compensation shall be provided only for injuries, damage, or actions set forth in 
331.11 	subdivision 1.
331.12 	(b) (c) Compensation shall be subject to the conditions and exclusions set forth in 
331.13 	subdivision 2.
331.14 	(c) (d) The state shall provide compensation for bodily injury, property damage, or 
331.15 	personal injury resulting from the foster home providers activities as a foster home provider 
331.16 	while the foster child or adult is in the care, custody, and control of the foster home provider 
331.17 	in an amount not to exceed $250,000 for each occurrence.
331.18 	(d) (e) The state shall provide compensation for damage or destruction of property caused 
331.19 	or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.
331.20 	(e) (f) The compensation in paragraphs (c) and (d) and (e) is the total obligation for all 
331.21 	damages because of each occurrence regardless of the number of claims made in connection 
331.22 	with the same occurrence, but compensation applies separately to each foster home. The 
331.23 	state shall have no other responsibility to provide compensation for any injury or loss caused 
331.24 	or sustained by any foster home provider or foster child or foster adult.
331.25 	(g) This coverage is extended as a benefit to foster home providers to encourage care 
331.26 	of persons who need out-of-home the providers' care. Nothing in this section shall be 
331.27 	construed to mean that foster home providers are agents or employees of the state nor does 
331.28 	the state accept any responsibility for the selection, monitoring, supervision, or control of 
331.29 	foster home providers which is exclusively the responsibility of the counties which shall 
331.30 	regulate foster home providers in the manner set forth in the rules of the commissioner of 
331.31 	human services.

332.1 	Sec. 48. Minnesota Statutes 2024, section 245.826, is amended to read:
332.2 	245.826 USE OF RESTRICTIVE TECHNIQUES AND PROCEDURES IN 
332.3 	FACILITIES SERVING EMOTIONALLY DISTURBED CHILDREN WITH 
332.4 	MENTAL ILLNESSES.
332.5 	When amending rules governing facilities serving emotionally disturbed children with 
332.6 	mental illnesses that are licensed under section 245A.09 and Minnesota Rules, parts 
332.7 	2960.0510 to 2960.0530 and 2960.0580 to 2960.0700, the commissioner of human services 
332.8 	shall include provisions governing the use of restrictive techniques and procedures. No 
332.9 	provision of these rules may encourage or require the use of restrictive techniques and 
332.10 	procedures. The rules must prohibit: (1) the application of certain restrictive techniques or 
332.11 	procedures in facilities, except as authorized in the child's case plan and monitored by the 
332.12 	county caseworker responsible for the child; (2) the use of restrictive techniques or procedures 
332.13 	that restrict the clients' normal access to nutritious diet, drinking water, adequate ventilation, 
332.14 	necessary medical care, ordinary hygiene facilities, normal sleeping conditions, and necessary 
332.15 	clothing; and (3) the use of corporal punishment. The rule may specify other restrictive 
332.16 	techniques and procedures and the specific conditions under which permitted techniques 
332.17 	and procedures are to be carried out.

332.18 	Sec. 49. Minnesota Statutes 2024, section 245.91, subdivision 2, is amended to read:
332.19 		Subd. 2.Agency. "Agency" means the divisions, officials, or employees of the state 
332.20 	Departments of Human Services, Direct Care and Treatment, Health, and Education, and 
332.21 	of local school districts and designated county social service agencies as defined in section 
332.22 	256G.02, subdivision 7, that are engaged in monitoring, providing, or regulating services 
332.23 	or treatment for mental illness, developmental disability, or substance use disorder, or 
332.24 	emotional disturbance.

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

333.3 	Sec. 51. Minnesota Statutes 2024, section 245.92, is amended to read:
333.4 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
333.5 	FUNCTION.
333.6 	The ombudsman for persons receiving services or treatment for mental illness, 
333.7 	developmental disability, or substance use disorder, or emotional disturbance shall promote 
333.8 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
333.9 	ombudsman may gather information and data about decisions, acts, and other matters of an 
333.10 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
333.11 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman is 
333.12 	appointed by the governor, serves in the unclassified service, and may be removed only for 
333.13 	just cause. The ombudsman must be selected without regard to political affiliation and must 
333.14 	be a person who has knowledge and experience concerning the treatment, needs, and rights 
333.15 	of clients, and who is highly competent and qualified. No person may serve as ombudsman 
333.16 	while holding another public office.

333.17 	Sec. 52. Minnesota Statutes 2024, section 245.94, subdivision 1, is amended to read:
333.18 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
333.19 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
333.20 	not levy a complaint fee.
333.21 	(b) The ombudsman is a health oversight agency as defined in Code of Federal 
333.22 	Regulations, title 45, section 164.501. The ombudsman may access patient records according 
333.23 	to Code of Federal Regulations, title 42, section 2.53. For purposes of this paragraph, 
333.24 	"records" has the meaning given in Code of Federal Regulations, title 42, section 
333.25 	2.53(a)(1)(i).
333.26 	(c) The ombudsman may mediate or advocate on behalf of a client.
333.27 	(d) The ombudsman may investigate the quality of services provided to clients and 
333.28 	determine the extent to which quality assurance mechanisms within state and county 
333.29 	government work to promote the health, safety, and welfare of clients.
333.30 	(e) At the request of a client, or upon receiving a complaint or other information affording 
333.31 	reasonable grounds to believe that the rights of one or more clients who may not be capable 
333.32 	of requesting assistance have been adversely affected, the ombudsman may gather 
334.1 	information and data about and analyze, on behalf of the client, the actions of an agency, 
334.2 	facility, or program.
334.3 	(f) The ombudsman may gather, on behalf of one or more clients, records of an agency, 
334.4 	facility, or program, or records related to clinical drug trials from the University of Minnesota 
334.5 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
334.6 	ombudsman's authority. If the records are private and the client is capable of providing 
334.7 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is not 
334.8 	required to obtain consent for access to private data on clients with developmental disabilities 
334.9 	and individuals served by the Minnesota Sex Offender Program. The ombudsman may also 
334.10 	take photographic or videographic evidence while reviewing the actions of an agency, 
334.11 	facility, or program, with the consent of the client. The ombudsman is not required to obtain 
334.12 	consent for access to private data on decedents who were receiving services for mental 
334.13 	illness, developmental disability, or substance use disorder, or emotional disturbance. All 
334.14 	data collected, created, received, or maintained by the ombudsman are governed by chapter 
334.15 	13 and other applicable law.
334.16 	(g) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
334.17 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
334.18 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
334.19 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
334.20 	of an investigation possesses the same privileges that a witness possesses in the courts or 
334.21 	under the law of this state. Data obtained from a person under this paragraph are private 
334.22 	data as defined in section 13.02, subdivision 12.
334.23 	(h) The ombudsman may, at reasonable times in the course of conducting a review, enter 
334.24 	and view premises within the control of an agency, facility, or program.
334.25 	(i) The ombudsman may attend Direct Care and Treatment Review Board and Special 
334.26 	Review Board proceedings; proceedings regarding the transfer of clients, as defined in 
334.27 	section 246.50, subdivision 4, between institutions operated by the Direct Care and Treatment 
334.28 	executive board; and, subject to the consent of the affected client, other proceedings affecting 
334.29 	the rights of clients. The ombudsman is not required to obtain consent to attend meetings 
334.30 	or proceedings and have access to private data on clients with developmental disabilities 
334.31 	and individuals served by the Minnesota Sex Offender Program.
334.32 	(j) The ombudsman shall gather data of agencies, facilities, or programs classified as 
334.33 	private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services 
335.1 	provided to clients with developmental disabilities and individuals served by the Minnesota 
335.2 	Sex Offender Program.
335.3 	(k) To avoid duplication and preserve evidence, the ombudsman shall inform relevant 
335.4 	licensing or regulatory officials before undertaking a review of an action of the facility or 
335.5 	program.
335.6 	(l) The Office of Ombudsman shall provide the services of the Civil Commitment 
335.7 	Training and Resource Center.
335.8 	(m) The ombudsman shall monitor the treatment of individuals participating in a 
335.9 	University of Minnesota Department of Psychiatry clinical drug trial and ensure that all 
335.10 	protections for human subjects required by federal law and the Institutional Review Board 
335.11 	are provided.
335.12 	(n) Sections 245.91 to 245.97 are in addition to other provisions of law under which any 
335.13 	other remedy or right is provided.

335.14 	Sec. 53. Minnesota Statutes 2024, section 245A.03, subdivision 2, is amended to read:
335.15 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
335.16 	(1) residential or nonresidential programs that are provided to a person by an individual 
335.17 	who is related;
335.18 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
335.19 	a single related family;
335.20 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
335.21 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
335.22 	functional impairment, or a physical disability;
335.23 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
335.24 	of employment and economic development;
335.25 	(5) programs operated by a public school for children 33 months or older;
335.26 	(6) nonresidential programs primarily for children that provide care or supervision for 
335.27 	periods of less than three hours a day while the child's parent or legal guardian is in the 
335.28 	same building as the nonresidential program or present within another building that is 
335.29 	directly contiguous to the building in which the nonresidential program is located;
335.30 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
335.31 	under section 245A.02;
336.1 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
336.2 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
336.3 	substance use disorder treatment;
336.4 	(9) programs licensed by the commissioner of corrections;
336.5 	(10) recreation programs for children or adults that are operated or approved by a park 
336.6 	and recreation board whose primary purpose is to provide social and recreational activities;
336.7 	(11) noncertified boarding care homes unless they provide services for five or more 
336.8 	persons whose primary diagnosis is mental illness or a developmental disability;
336.9 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
336.10 	programs, and nonresidential programs for children provided for a cumulative total of less 
336.11 	than 30 days in any 12-month period;
336.12 	(13) residential programs for persons with mental illness, that are located in hospitals;
336.13 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
336.14 	4630;
336.15 	(15) mental health outpatient services for adults with mental illness or children with 
336.16 	emotional disturbance mental illness;
336.17 	(16) residential programs serving school-age children whose sole purpose is cultural or 
336.18 	educational exchange, until the commissioner adopts appropriate rules;
336.19 	(17) community support services programs as defined in section 245.462, subdivision 
336.20 	6, and family community support services as defined in section 245.4871, subdivision 17;
336.21 	(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
336.22 	(19) substance use disorder treatment activities of licensed professionals in private 
336.23 	practice as defined in section 245G.01, subdivision 17;
336.24 	(20) consumer-directed community support service funded under the Medicaid waiver 
336.25 	for persons with developmental disabilities when the individual who provided the service 
336.26 	is:
336.27 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
336.28 	a fiscal agent, fiscal intermediary, or employer of record; and
336.29 	(ii) not otherwise under the control of a residential or nonresidential program that is 
336.30 	required to be licensed under this chapter when providing the service;
337.1 	(21) a county that is an eligible vendor under section 254B.05 to provide care coordination 
337.2 	and comprehensive assessment services;
337.3 	(22) a recovery community organization that is an eligible vendor under section 254B.05 
337.4 	to provide peer recovery support services; or
337.5 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
337.6 	142B.
337.7 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
337.8 	building in which a nonresidential program is located if it shares a common wall with the 
337.9 	building in which the nonresidential program is located or is attached to that building by 
337.10 	skyway, tunnel, atrium, or common roof.
337.11 	(c) Except for the home and community-based services identified in section 245D.03, 
337.12 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
337.13 	provided and funded according to an approved federal waiver plan where licensure is 
337.14 	specifically identified as not being a condition for the services and funding.

337.15 	Sec. 54. Minnesota Statutes 2024, section 245A.26, subdivision 1, is amended to read:
337.16 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
337.17 	subdivision have the meanings given.
337.18 	(b) "Clinical trainee" means a staff person who is qualified under section 245I.04, 
337.19 	subdivision 6.
337.20 	(c) "License holder" means an individual, organization, or government entity that was 
337.21 	issued a license by the commissioner of human services under this chapter for residential 
337.22 	mental health treatment for children with emotional disturbance mental illness according 
337.23 	to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 2960.0700, or shelter 
337.24 	care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 and 2960.0510
337.25 	to 2960.0530.
337.26 	(d) "Mental health professional" means an individual who is qualified under section 
337.27 	245I.04, subdivision 2.

337.28 	Sec. 55. Minnesota Statutes 2024, section 245A.26, subdivision 2, is amended to read:
337.29 		Subd. 2.Scope and applicability. (a) This section establishes additional licensing 
337.30 	requirements for a children's residential facility to provide children's residential crisis 
338.1 	stabilization services to a client who is experiencing a mental health crisis and is in need of 
338.2 	residential treatment services.
338.3 	(b) A children's residential facility may provide residential crisis stabilization services 
338.4 	only if the facility is licensed to provide:
338.5 	(1) residential mental health treatment for children with emotional disturbance mental 
338.6 	illness according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 
338.7 	2960.0700; or
338.8 	(2) shelter care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 
338.9 	and 2960.0510 to 2960.0530.
338.10 	(c) If a client receives residential crisis stabilization services for 35 days or fewer in a 
338.11 	facility licensed according to paragraph (b), clause (1), the facility is not required to complete 
338.12 	a diagnostic assessment or treatment plan under Minnesota Rules, part 2960.0180, subpart 
338.13 	2, and part 2960.0600.
338.14 	(d) If a client receives residential crisis stabilization services for 35 days or fewer in a 
338.15 	facility licensed according to paragraph (b), clause (2), the facility is not required to develop 
338.16 	a plan for meeting the client's immediate needs under Minnesota Rules, part 2960.0520, 
338.17 	subpart 3.

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

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

339.3 	Sec. 58. Minnesota Statutes 2024, section 256B.02, subdivision 11, is amended to read:
339.4 		Subd. 11.Related condition. "Related condition" means a condition:
339.5 	(1) that is found to be closely related to a developmental disability, including but not 
339.6 	limited to cerebral palsy, epilepsy, autism, fetal alcohol spectrum disorder, and Prader-Willi 
339.7 	syndrome; and
339.8 	(2) that meets all of the following criteria:
339.9 	(i) is severe and chronic;
339.10 	(ii) results in impairment of general intellectual functioning or adaptive behavior similar 
339.11 	to that of persons with developmental disabilities;
339.12 	(iii) requires treatment or services similar to those required for persons with 
339.13 	developmental disabilities;
339.14 	(iv) is manifested before the person reaches 22 years of age;
339.15 	(v) is likely to continue indefinitely;
339.16 	(vi) results in substantial functional limitations in three or more of the following areas 
339.17 	of major life activity:
339.18 	(A) self-care;
339.19 	(B) understanding and use of language;
339.20 	(C) learning;
339.21 	(D) mobility;
339.22 	(E) self-direction; or
339.23 	(F) capacity for independent living; and
339.24 	(vii) is not attributable to mental illness as defined in section 245.462, subdivision 20, 
339.25 	or an emotional disturbance as defined in section245.4871, subdivision 15. For purposes 
339.26 	of this item, notwithstanding section 245.462, subdivision 20, or 245.4871, subdivision 15, 
339.27 	"mental illness" does not include autism or other pervasive developmental disorders.

340.1 	Sec. 59. Minnesota Statutes 2024, section 256B.055, subdivision 12, is amended to read:
340.2 		Subd. 12.Children with disabilities. (a) A person is eligible for medical assistance if 
340.3 	the person is under age 19 and qualifies as a disabled individual under United States Code, 
340.4 	title 42, section 1382c(a), and would be eligible for medical assistance under the state plan 
340.5 	if residing in a medical institution, and the child requires a level of care provided in a hospital, 
340.6 	nursing facility, or intermediate care facility for persons with developmental disabilities, 
340.7 	for whom home care is appropriate, provided that the cost to medical assistance under this 
340.8 	section is not more than the amount that medical assistance would pay for if the child resides 
340.9 	in an institution. After the child is determined to be eligible under this section, the 
340.10 	commissioner shall review the child's disability under United States Code, title 42, section 
340.11 	1382c(a) and level of care defined under this section no more often than annually and may 
340.12 	elect, based on the recommendation of health care professionals under contract with the 
340.13 	state medical review team, to extend the review of disability and level of care up to a 
340.14 	maximum of four years. The commissioner's decision on the frequency of continuing review 
340.15 	of disability and level of care is not subject to administrative appeal under section 256.045. 
340.16 	The county agency shall send a notice of disability review to the enrollee six months prior 
340.17 	to the date the recertification of disability is due. Nothing in this subdivision shall be 
340.18 	construed as affecting other redeterminations of medical assistance eligibility under this 
340.19 	chapter and annual cost-effective reviews under this section.
340.20 	(b) For purposes of this subdivision, "hospital" means an institution as defined in section 
340.21 	144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 
340.22 	licensed pursuant to sections 144.50 to 144.58. For purposes of this subdivision, a child 
340.23 	requires a level of care provided in a hospital if the child is determined by the commissioner 
340.24 	to need an extensive array of health services, including mental health services, for an 
340.25 	undetermined period of time, whose health condition requires frequent monitoring and 
340.26 	treatment by a health care professional or by a person supervised by a health care 
340.27 	professional, who would reside in a hospital or require frequent hospitalization if these 
340.28 	services were not provided, and the daily care needs are more complex than a nursing facility 
340.29 	level of care.
340.30 	A child with serious emotional disturbance mental illness requires a level of care provided 
340.31 	in a hospital if the commissioner determines that the individual requires 24-hour supervision 
340.32 	because the person exhibits recurrent or frequent suicidal or homicidal ideation or behavior, 
340.33 	recurrent or frequent psychosomatic disorders or somatopsychic disorders that may become 
340.34 	life threatening, recurrent or frequent severe socially unacceptable behavior associated with 
340.35 	psychiatric disorder, ongoing and chronic psychosis or severe, ongoing and chronic 
341.1 	developmental problems requiring continuous skilled observation, or severe disabling 
341.2 	symptoms for which office-centered outpatient treatment is not adequate, and which overall 
341.3 	severely impact the individual's ability to function.
341.4 	(c) For purposes of this subdivision, "nursing facility" means a facility which provides 
341.5 	nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections 
341.6 	144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is 
341.7 	in need of special treatments provided or supervised by a licensed nurse; or has unpredictable 
341.8 	episodes of active disease processes requiring immediate judgment by a licensed nurse. For 
341.9 	purposes of this subdivision, a child requires the level of care provided in a nursing facility 
341.10 	if the child is determined by the commissioner to meet the requirements of the preadmission 
341.11 	screening assessment document under section 256B.0911, adjusted to address age-appropriate 
341.12 	standards for children age 18 and under.
341.13 	(d) For purposes of this subdivision, "intermediate care facility for persons with 
341.14 	developmental disabilities" or "ICF/DD" means a program licensed to provide services to 
341.15 	persons with developmental disabilities under section 252.28, and chapter 245A, and a 
341.16 	physical plant licensed as a supervised living facility under chapter 144, which together are 
341.17 	certified by the Minnesota Department of Health as meeting the standards in Code of Federal 
341.18 	Regulations, title 42, part 483, for an intermediate care facility which provides services for 
341.19 	persons with developmental disabilities who require 24-hour supervision and active treatment 
341.20 	for medical, behavioral, or habilitation needs. For purposes of this subdivision, a child 
341.21 	requires a level of care provided in an ICF/DD if the commissioner finds that the child has 
341.22 	a developmental disability in accordance with section 256B.092, is in need of a 24-hour 
341.23 	plan of care and active treatment similar to persons with developmental disabilities, and 
341.24 	there is a reasonable indication that the child will need ICF/DD services.
341.25 	(e) For purposes of this subdivision, a person requires the level of care provided in a 
341.26 	nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental 
341.27 	health treatment because of specific symptoms or functional impairments associated with 
341.28 	a serious mental illness or disorder diagnosis, which meet severity criteria for mental health 
341.29 	established by the commissioner and published in March 1997 as the Minnesota Mental 
341.30 	Health Level of Care for Children and Adolescents with Severe Emotional Disorders.
341.31 	(f) The determination of the level of care needed by the child shall be made by the 
341.32 	commissioner based on information supplied to the commissioner by (1) the parent or 
341.33 	guardian, (2) the child's physician or physicians, advanced practice registered nurse or 
341.34 	advanced practice registered nurses, or physician assistant or physician assistants, and (3) 
342.1 	other professionals as requested by the commissioner. The commissioner shall establish a 
342.2 	screening team to conduct the level of care determinations according to this subdivision.
342.3 	(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 
342.4 	must assess the case to determine whether:
342.5 	(1) the child qualifies as a disabled individual under United States Code, title 42, section 
342.6 	1382c(a), and would be eligible for medical assistance if residing in a medical institution; 
342.7 	and
342.8 	(2) the cost of medical assistance services for the child, if eligible under this subdivision, 
342.9 	would not be more than the cost to medical assistance if the child resides in a medical 
342.10 	institution to be determined as follows:
342.11 	(i) for a child who requires a level of care provided in an ICF/DD, the cost of care for 
342.12 	the child in an institution shall be determined using the average payment rate established 
342.13 	for the regional treatment centers that are certified as ICF's/DD;
342.14 	(ii) for a child who requires a level of care provided in an inpatient hospital setting 
342.15 	according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 
342.16 	Rules, part 9505.3520, items F and G; and
342.17 	(iii) for a child who requires a level of care provided in a nursing facility according to 
342.18 	paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota Rules, 
342.19 	part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates 
342.20 	which would be paid for children under age 16. The commissioner may authorize an amount 
342.21 	up to the amount medical assistance would pay for a child referred to the commissioner by 
342.22 	the preadmission screening team under section 256B.0911.

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

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

343.9 	Sec. 62. Minnesota Statutes 2024, section 256B.0943, subdivision 1, is amended to read:
343.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
343.11 	the meanings given them.
343.12 	(b) "Children's therapeutic services and supports" means the flexible package of mental 
343.13 	health services for children who require varying therapeutic and rehabilitative levels of 
343.14 	intervention to treat a diagnosed emotional disturbance, as defined in section 245.4871, 
343.15 	subdivision 15, or a diagnosed mental illness, as defined in section 245.462, subdivision 
343.16 	20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered 
343.17 	using various treatment modalities and combinations of services designed to reach treatment 
343.18 	outcomes identified in the individual treatment plan.
343.19 	(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, 
343.20 	subdivision 6.
343.21 	(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
343.22 	(e) "Culturally competent provider" means a provider who understands and can utilize 
343.23 	to a client's benefit the client's culture when providing services to the client. A provider 
343.24 	may be culturally competent because the provider is of the same cultural or ethnic group 
343.25 	as the client or the provider has developed the knowledge and skills through training and 
343.26 	experience to provide services to culturally diverse clients.
343.27 	(f) "Day treatment program" for children means a site-based structured mental health 
343.28 	program consisting of psychotherapy for three or more individuals and individual or group 
343.29 	skills training provided by a team, under the treatment supervision of a mental health 
343.30 	professional.
343.31 	(g) "Direct service time" means the time that a mental health professional, clinical trainee, 
343.32 	mental health practitioner, or mental health behavioral aide spends face-to-face with a client 
344.1 	and the client's family or providing covered services through telehealth as defined under 
344.2 	section 256B.0625, subdivision 3b. Direct service time includes time in which the provider 
344.3 	obtains a client's history, develops a client's treatment plan, records individual treatment 
344.4 	outcomes, or provides service components of children's therapeutic services and supports. 
344.5 	Direct service time does not include time doing work before and after providing direct 
344.6 	services, including scheduling or maintaining clinical records.
344.7 	(h) "Direction of mental health behavioral aide" means the activities of a mental health 
344.8 	professional, clinical trainee, or mental health practitioner in guiding the mental health 
344.9 	behavioral aide in providing services to a client. The direction of a mental health behavioral 
344.10 	aide must be based on the client's individual treatment plan and meet the requirements in 
344.11 	subdivision 6, paragraph (b), clause (7).
344.12 	(i) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
344.13 	(j) (i) "Individual treatment plan" means the plan described in section 245I.10, 
344.14 	subdivisions 7 and 8.
344.15 	(k) (j) "Mental health behavioral aide services" means medically necessary one-on-one 
344.16 	activities performed by a mental health behavioral aide qualified according to section 
344.17 	245I.04, subdivision 16, to assist a child retain or generalize psychosocial skills as previously 
344.18 	trained by a mental health professional, clinical trainee, or mental health practitioner and 
344.19 	as described in the child's individual treatment plan and individual behavior plan. Activities 
344.20 	involve working directly with the child or child's family as provided in subdivision 9, 
344.21 	paragraph (b), clause (4).
344.22 	(l) (k) "Mental health certified family peer specialist" means a staff person who is 
344.23 	qualified according to section 245I.04, subdivision 12.
344.24 	(m) (l) "Mental health practitioner" means a staff person who is qualified according to 
344.25 	section 245I.04, subdivision 4.
344.26 	(n) (m) "Mental health professional" means a staff person who is qualified according to 
344.27 	section 245I.04, subdivision 2.
344.28 	(o) (n) "Mental health service plan development" includes:
344.29 	(1) development and revision of a child's individual treatment plan; and
344.30 	(2) administering and reporting standardized outcome measurements approved by the 
344.31 	commissioner, as periodically needed to evaluate the effectiveness of treatment.
345.1 	(p) (o) "Mental illness," for persons at least age 18 but under age 21, has the meaning 
345.2 	given in section 245.462, subdivision 20, paragraph (a), for persons at least 18 years of age 
345.3 	but under 21 years of age, and has the meaning given in section 245.4871, subdivision 15, 
345.4 	for children under 18 years of age.
345.5 	(q) (p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 
345.6 	11.
345.7 	(r) (q) "Rehabilitative services" or "psychiatric rehabilitation services" means 
345.8 	interventions to: (1) restore a child or adolescent to an age-appropriate developmental 
345.9 	trajectory that had been disrupted by a psychiatric illness; or (2) enable the child to 
345.10 	self-monitor, compensate for, cope with, counteract, or replace psychosocial skills deficits 
345.11 	or maladaptive skills acquired over the course of a psychiatric illness. Psychiatric 
345.12 	rehabilitation services for children combine coordinated psychotherapy to address internal 
345.13 	psychological, emotional, and intellectual processing deficits, and skills training to restore 
345.14 	personal and social functioning. Psychiatric rehabilitation services establish a progressive 
345.15 	series of goals with each achievement building upon a prior achievement.
345.16 	(s) (r) "Skills training" means individual, family, or group training, delivered by or under 
345.17 	the supervision of a mental health professional, designed to facilitate the acquisition of 
345.18 	psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate 
345.19 	developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child 
345.20 	to self-monitor, compensate for, cope with, counteract, or replace skills deficits or 
345.21 	maladaptive skills acquired over the course of a psychiatric illness. Skills training is subject 
345.22 	to the service delivery requirements under subdivision 9, paragraph (b), clause (2).
345.23 	(t) (s) "Standard diagnostic assessment" means the assessment described in section 
345.24 	245I.10, subdivision 6.
345.25 	(u) (t) "Treatment supervision" means the supervision described in section 245I.06.

345.26 	Sec. 63. Minnesota Statutes 2024, section 256B.0943, subdivision 3, is amended to read:
345.27 		Subd. 3.Determination of client eligibility. (a) A client's eligibility to receive children's 
345.28 	therapeutic services and supports under this section shall be determined based on a standard 
345.29 	diagnostic assessment by a mental health professional or a clinical trainee that is performed 
345.30 	within one year before the initial start of service and updated as required under section 
345.31 	245I.10, subdivision 2. The standard diagnostic assessment must:
346.1 	(1) determine whether a child under age 18 has a diagnosis of emotional disturbance
346.2 	mental illness or, if the person is between the ages of 18 and 21, whether the person has a 
346.3 	mental illness;
346.4 	(2) document children's therapeutic services and supports as medically necessary to 
346.5 	address an identified disability, functional impairment, and the individual client's needs and 
346.6 	goals; and
346.7 	(3) be used in the development of the individual treatment plan.
346.8 	(b) Notwithstanding paragraph (a), a client may be determined to be eligible for up to 
346.9 	five days of day treatment under this section based on a hospital's medical history and 
346.10 	presentation examination of the client.
346.11 	(c) Children's therapeutic services and supports include development and rehabilitative 
346.12 	services that support a child's developmental treatment needs.

346.13 	Sec. 64. Minnesota Statutes 2024, section 256B.0943, subdivision 9, is amended to read:
346.14 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a certified 
346.15 	provider entity must ensure that:
346.16 	(1) the provider's caseload size should reasonably enable the provider to play an active 
346.17 	role in service planning, monitoring, and delivering services to meet the client's and client's 
346.18 	family's needs, as specified in each client's individual treatment plan;
346.19 	(2) site-based programs, including day treatment programs, provide staffing and facilities 
346.20 	to ensure the client's health, safety, and protection of rights, and that the programs are able 
346.21 	to implement each client's individual treatment plan; and
346.22 	(3) a day treatment program is provided to a group of clients by a team under the treatment 
346.23 	supervision of a mental health professional. The day treatment program must be provided 
346.24 	in and by: (i) an outpatient hospital accredited by the Joint Commission on Accreditation 
346.25 	of Health Organizations and licensed under sections 144.50 to 144.55; (ii) a community 
346.26 	mental health center under section 245.62; or (iii) an entity that is certified under subdivision 
346.27 	4 to operate a program that meets the requirements of section 245.4884, subdivision 2, and 
346.28 	Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must stabilize 
346.29 	the client's mental health status while developing and improving the client's independent 
346.30 	living and socialization skills. The goal of the day treatment program must be to reduce or 
346.31 	relieve the effects of mental illness and provide training to enable the client to live in the 
346.32 	community. The remainder of the structured treatment program may include patient and/or 
346.33 	family or group psychotherapy, and individual or group skills training, if included in the 
347.1 	client's individual treatment plan. Day treatment programs are not part of inpatient or 
347.2 	residential treatment services. When a day treatment group that meets the minimum group 
347.3 	size requirement temporarily falls below the minimum group size because of a member's 
347.4 	temporary absence, medical assistance covers a group session conducted for the group 
347.5 	members in attendance. A day treatment program may provide fewer than the minimally 
347.6 	required hours for a particular child during a billing period in which the child is transitioning 
347.7 	into, or out of, the program.
347.8 	(b) To be eligible for medical assistance payment, a provider entity must deliver the 
347.9 	service components of children's therapeutic services and supports in compliance with the 
347.10 	following requirements:
347.11 	(1) psychotherapy to address the child's underlying mental health disorder must be 
347.12 	documented as part of the child's ongoing treatment. A provider must deliver or arrange for 
347.13 	medically necessary psychotherapy unless the child's parent or caregiver chooses not to 
347.14 	receive it or the provider determines that psychotherapy is no longer medically necessary. 
347.15 	When a provider determines that psychotherapy is no longer medically necessary, the 
347.16 	provider must update required documentation, including but not limited to the individual 
347.17 	treatment plan, the child's medical record, or other authorizations, to include the 
347.18 	determination. When a provider determines that a child needs psychotherapy but 
347.19 	psychotherapy cannot be delivered due to a shortage of licensed mental health professionals 
347.20 	in the child's community, the provider must document the lack of access in the child's 
347.21 	medical record;
347.22 	(2) individual, family, or group skills training is subject to the following requirements:
347.23 	(i) a mental health professional, clinical trainee, or mental health practitioner shall provide 
347.24 	skills training;
347.25 	(ii) skills training delivered to a child or the child's family must be targeted to the specific 
347.26 	deficits or maladaptations of the child's mental health disorder and must be prescribed in 
347.27 	the child's individual treatment plan;
347.28 	(iii) group skills training may be provided to multiple recipients who, because of the 
347.29 	nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from 
347.30 	interaction in a group setting, which must be staffed as follows:
347.31 	(A) one mental health professional, clinical trainee, or mental health practitioner must 
347.32 	work with a group of three to eight clients; or
348.1 	(B) any combination of two mental health professionals, clinical trainees, or mental 
348.2 	health practitioners must work with a group of nine to 12 clients;
348.3 	(iv) a mental health professional, clinical trainee, or mental health practitioner must have 
348.4 	taught the psychosocial skill before a mental health behavioral aide may practice that skill 
348.5 	with the client; and
348.6 	(v) for group skills training, when a skills group that meets the minimum group size 
348.7 	requirement temporarily falls below the minimum group size because of a group member's 
348.8 	temporary absence, the provider may conduct the session for the group members in 
348.9 	attendance;
348.10 	(3) crisis planning to a child and family must include development of a written plan that 
348.11 	anticipates the particular factors specific to the child that may precipitate a psychiatric crisis 
348.12 	for the child in the near future. The written plan must document actions that the family 
348.13 	should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for 
348.14 	direct intervention and support services to the child and the child's family. Crisis planning 
348.15 	must include preparing resources designed to address abrupt or substantial changes in the 
348.16 	functioning of the child or the child's family when sudden change in behavior or a loss of 
348.17 	usual coping mechanisms is observed, or the child begins to present a danger to self or 
348.18 	others;
348.19 	(4) mental health behavioral aide services must be medically necessary treatment services, 
348.20 	identified in the child's individual treatment plan.
348.21 	To be eligible for medical assistance payment, mental health behavioral aide services must 
348.22 	be delivered to a child who has been diagnosed with an emotional disturbance or a mental 
348.23 	illness, as provided in subdivision 1, paragraph (a). The mental health behavioral aide must 
348.24 	document the delivery of services in written progress notes. Progress notes must reflect 
348.25 	implementation of the treatment strategies, as performed by the mental health behavioral 
348.26 	aide and the child's responses to the treatment strategies; and
348.27 	(5) mental health service plan development must be performed in consultation with the 
348.28 	child's family and, when appropriate, with other key participants in the child's life by the 
348.29 	child's treating mental health professional or clinical trainee or by a mental health practitioner 
348.30 	and approved by the treating mental health professional. Treatment plan drafting consists 
348.31 	of development, review, and revision by face-to-face or electronic communication. The 
348.32 	provider must document events, including the time spent with the family and other key 
348.33 	participants in the child's life to approve the individual treatment plan. Medical assistance 
348.34 	covers service plan development before completion of the child's individual treatment plan. 
349.1 	Service plan development is covered only if a treatment plan is completed for the child. If 
349.2 	upon review it is determined that a treatment plan was not completed for the child, the 
349.3 	commissioner shall recover the payment for the service plan development.

349.4 	Sec. 65. Minnesota Statutes 2024, section 256B.0943, subdivision 12, is amended to read:
349.5 		Subd. 12.Excluded services. The following services are not eligible for medical 
349.6 	assistance payment as children's therapeutic services and supports:
349.7 	(1) service components of children's therapeutic services and supports simultaneously 
349.8 	provided by more than one provider entity unless prior authorization is obtained;
349.9 	(2) treatment by multiple providers within the same agency at the same clock time, 
349.10 	unless one service is delivered to the child and the other service is delivered to the child's 
349.11 	family or treatment team without the child present;
349.12 	(3) children's therapeutic services and supports provided in violation of medical assistance 
349.13 	policy in Minnesota Rules, part 9505.0220;
349.14 	(4) mental health behavioral aide services provided by a personal care assistant who is 
349.15 	not qualified as a mental health behavioral aide and employed by a certified children's 
349.16 	therapeutic services and supports provider entity;
349.17 	(5) service components of CTSS that are the responsibility of a residential or program 
349.18 	license holder, including foster care providers under the terms of a service agreement or 
349.19 	administrative rules governing licensure; and
349.20 	(6) adjunctive activities that may be offered by a provider entity but are not otherwise 
349.21 	covered by medical assistance, including:
349.22 	(i) a service that is primarily recreation oriented or that is provided in a setting that is 
349.23 	not medically supervised. This includes sports activities, exercise groups, activities such as 
349.24 	craft hours, leisure time, social hours, meal or snack time, trips to community activities, 
349.25 	and tours;
349.26 	(ii) a social or educational service that does not have or cannot reasonably be expected 
349.27 	to have a therapeutic outcome related to the client's emotional disturbance mental illness;
349.28 	(iii) prevention or education programs provided to the community; and
349.29 	(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

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

350.10 	Sec. 67. Minnesota Statutes 2024, section 256B.0945, subdivision 1, is amended to read:
350.11 		Subdivision 1.Residential services; provider qualifications. (a) Counties must arrange 
350.12 	to provide residential services for children with severe emotional disturbance serious mental 
350.13 	illness according to sections 245.4882, 245.4885, and this section.
350.14 	(b) Services must be provided by a facility that is licensed according to section 245.4882 
350.15 	and administrative rules promulgated thereunder, and under contract with the county.
350.16 	(c) Eligible service costs may be claimed for a facility that is located in a state that 
350.17 	borders Minnesota if:
350.18 	(1) the facility is the closest facility to the child's home, providing the appropriate level 
350.19 	of care; and
350.20 	(2) the commissioner of human services has completed an inspection of the out-of-state 
350.21 	program according to the interagency agreement with the commissioner of corrections under 
350.22 	section 260B.198, subdivision 11, paragraph (b), and the program has been certified by the 
350.23 	commissioner of corrections under section 260B.198, subdivision 11, paragraph (a), to 
350.24 	substantially meet the standards applicable to children's residential mental health treatment 
350.25 	programs under Minnesota Rules, chapter 2960. Nothing in this section requires the 
350.26 	commissioner of human services to enforce the background study requirements under chapter 
350.27 	245C or the requirements related to prevention and investigation of alleged maltreatment 
350.28 	under section 626.557 or chapter 260E. Complaints received by the commissioner of human 
350.29 	services must be referred to the out-of-state licensing authority for possible follow-up.
350.30 	(d) Notwithstanding paragraph (b), eligible service costs may be claimed for an 
350.31 	out-of-state inpatient treatment facility if:
350.32 	(1) the facility specializes in providing mental health services to children who are deaf, 
350.33 	deafblind, or hard-of-hearing and who use American Sign Language as their first language;
351.1 	(2) the facility is licensed by the state in which it is located; and
351.2 	(3) the state in which the facility is located is a member state of the Interstate Compact 
351.3 	on Mental Health.

351.4 	Sec. 68. Minnesota Statutes 2024, section 256B.0946, subdivision 6, is amended to read:
351.5 		Subd. 6.Excluded services. (a) Services in clauses (1) to (7) are not covered under this 
351.6 	section and are not eligible for medical assistance payment as components of children's 
351.7 	intensive behavioral health services, but may be billed separately:
351.8 	(1) inpatient psychiatric hospital treatment;
351.9 	(2) mental health targeted case management;
351.10 	(3) partial hospitalization;
351.11 	(4) medication management;
351.12 	(5) children's mental health day treatment services;
351.13 	(6) crisis response services under section 256B.0624;
351.14 	(7) transportation; and
351.15 	(8) mental health certified family peer specialist services under section 256B.0616.
351.16 	(b) Children receiving intensive behavioral health services are not eligible for medical 
351.17 	assistance reimbursement for the following services while receiving children's intensive 
351.18 	behavioral health services:
351.19 	(1) psychotherapy and skills training components of children's therapeutic services and 
351.20 	supports under section 256B.0943;
351.21 	(2) mental health behavioral aide services as defined in section 256B.0943, subdivision 
351.22 	1, paragraph (l) (j);
351.23 	(3) home and community-based waiver services;
351.24 	(4) mental health residential treatment; and
351.25 	(5) medical assistance room and board rate, as defined in section 256B.056, subdivision 
351.26 	5d.

352.1 	Sec. 69. Minnesota Statutes 2024, section 256B.0947, subdivision 3a, is amended to read:
352.2 		Subd. 3a.Required service components. (a) Intensive nonresidential rehabilitative 
352.3 	mental health services, supports, and ancillary activities that are covered by a single daily 
352.4 	rate per client must include the following, as needed by the individual client:
352.5 	(1) individual, family, and group psychotherapy;
352.6 	(2) individual, family, and group skills training, as defined in section 256B.0943, 
352.7 	subdivision 1, paragraph (u) (r);
352.8 	(3) crisis planning as defined in section 245.4871, subdivision 9a;
352.9 	(4) medication management provided by a physician, an advanced practice registered 
352.10 	nurse with certification in psychiatric and mental health care, or a physician assistant;
352.11 	(5) mental health case management as provided in section 256B.0625, subdivision 20;
352.12 	(6) medication education services as defined in this section;
352.13 	(7) care coordination by a client-specific lead worker assigned by and responsible to the 
352.14 	treatment team;
352.15 	(8) psychoeducation of and consultation and coordination with the client's biological, 
352.16 	adoptive, or foster family and, in the case of a youth living independently, the client's 
352.17 	immediate nonfamilial support network;
352.18 	(9) clinical consultation to a client's employer or school or to other service agencies or 
352.19 	to the courts to assist in managing the mental illness or co-occurring disorder and to develop 
352.20 	client support systems;
352.21 	(10) coordination with, or performance of, crisis intervention and stabilization services 
352.22 	as defined in section 256B.0624;
352.23 	(11) transition services;
352.24 	(12) co-occurring substance use disorder treatment as defined in section 245I.02, 
352.25 	subdivision 11; and
352.26 	(13) housing access support that assists clients to find, obtain, retain, and move to safe 
352.27 	and adequate housing. Housing access support does not provide monetary assistance for 
352.28 	rent, damage deposits, or application fees.
352.29 	(b) The provider shall ensure and document the following by means of performing the 
352.30 	required function or by contracting with a qualified person or entity: client access to crisis 
353.1 	intervention services, as defined in section 256B.0624, and available 24 hours per day and 
353.2 	seven days per week.

353.3 	Sec. 70. Minnesota Statutes 2024, section 256B.69, subdivision 23, is amended to read:
353.4 		Subd. 23.Alternative services; elderly persons and persons with a disability. (a) The 
353.5 	commissioner may implement demonstration projects to create alternative integrated delivery 
353.6 	systems for acute and long-term care services to elderly persons and persons with disabilities 
353.7 	as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve 
353.8 	access to quality services, and mitigate future cost increases. The commissioner may seek 
353.9 	federal authority to combine Medicare and Medicaid capitation payments for the purpose 
353.10 	of such demonstrations and may contract with Medicare-approved special needs plans that 
353.11 	are offered by a demonstration provider or by an entity that is directly or indirectly wholly 
353.12 	owned or controlled by a demonstration provider to provide Medicaid services. Medicare 
353.13 	funds and services shall be administered according to the terms and conditions of the federal 
353.14 	contract and demonstration provisions. For the purpose of administering medical assistance 
353.15 	funds, demonstrations under this subdivision are subject to subdivisions 1 to 22. The 
353.16 	provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
353.17 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items 
353.18 	B and C, which do not apply to persons enrolling in demonstrations under this section. All 
353.19 	enforcement and rulemaking powers available under chapters 62D, 62M, and 62Q are hereby 
353.20 	granted to the commissioner of health with respect to Medicare-approved special needs 
353.21 	plans with which the commissioner contracts to provide Medicaid services under this section. 
353.22 	An initial open enrollment period may be provided. Persons who disenroll from 
353.23 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
353.24 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
353.25 	the health plan's participation is subsequently terminated for any reason, the person shall 
353.26 	be provided an opportunity to select a new health plan and shall have the right to change 
353.27 	health plans within the first 60 days of enrollment in the second health plan. Persons required 
353.28 	to participate in health plans under this section who fail to make a choice of health plan 
353.29 	shall not be randomly assigned to health plans under these demonstrations. Notwithstanding 
353.30 	section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, 
353.31 	if adopted, for the purpose of demonstrations under this subdivision, the commissioner may 
353.32 	contract with managed care organizations, including counties, to serve only elderly persons 
353.33 	eligible for medical assistance, elderly persons with a disability, or persons with a disability 
353.34 	only. For persons with a primary diagnosis of developmental disability, serious and persistent 
353.35 	mental illness, or serious emotional disturbance mental illness in children, the commissioner 
354.1 	must ensure that the county authority has approved the demonstration and contracting design. 
354.2 	Enrollment in these projects for persons with disabilities shall be voluntary. The 
354.3 	commissioner shall not implement any demonstration project under this subdivision for 
354.4 	persons with a primary diagnosis of developmental disabilities, serious and persistent mental 
354.5 	illness, or serious emotional disturbance, mental illness in children without approval of the 
354.6 	county board of the county in which the demonstration is being implemented.
354.7 	(b) MS 2009 Supplement [Expired, 2003 c 47 s 4; 2007 c 147 art 7 s 60]
354.8 	(c) Before implementation of a demonstration project for persons with a disability, the 
354.9 	commissioner must provide information to appropriate committees of the house of 
354.10 	representatives and senate and must involve representatives of affected disability groups in 
354.11 	the design of the demonstration projects.
354.12 	(d) A nursing facility reimbursed under the alternative reimbursement methodology in 
354.13 	section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
354.14 	provide services under paragraph (a). The commissioner shall amend the state plan and seek 
354.15 	any federal waivers necessary to implement this paragraph.
354.16 	(e) The commissioner, in consultation with the commissioners of commerce and health, 
354.17 	may approve and implement programs for all-inclusive care for the elderly (PACE) according 
354.18 	to federal laws and regulations governing that program and state laws or rules applicable 
354.19 	to participating providers. A PACE provider is not required to be licensed or certified as a 
354.20 	health plan company as defined in section 62Q.01, subdivision 4. Persons age 55 and older 
354.21 	who have been screened by the county and found to be eligible for services under the elderly 
354.22 	waiver or community access for disability inclusion or who are already eligible for Medicaid 
354.23 	but meet level of care criteria for receipt of waiver services may choose to enroll in the 
354.24 	PACE program. Medicare and Medicaid services will be provided according to this 
354.25 	subdivision and federal Medicare and Medicaid requirements governing PACE providers 
354.26 	and programs. PACE enrollees will receive Medicaid home and community-based services 
354.27 	through the PACE provider as an alternative to services for which they would otherwise be 
354.28 	eligible through home and community-based waiver programs and Medicaid State Plan 
354.29 	Services. The commissioner shall establish Medicaid rates for PACE providers that do not 
354.30 	exceed costs that would have been incurred under fee-for-service or other relevant managed 
354.31 	care programs operated by the state.
354.32 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
354.33 	health options (MnDHO) program established under this subdivision in stages, first to 
354.34 	regional population centers outside the seven-county metro area and then to all areas of the 
355.1 	state. Until July 1, 2009, expansion for MnDHO projects that include home and 
355.2 	community-based services is limited to the two projects and service areas in effect on March 
355.3 	1, 2006. Enrollment in integrated MnDHO programs that include home and community-based 
355.4 	services shall remain voluntary. Costs for home and community-based services included 
355.5 	under MnDHO must not exceed costs that would have been incurred under the fee-for-service 
355.6 	program. Notwithstanding whether expansion occurs under this paragraph, in determining 
355.7 	MnDHO payment rates and risk adjustment methods, the commissioner must consider the 
355.8 	methods used to determine county allocations for home and community-based program 
355.9 	participants. If necessary to reduce MnDHO rates to comply with the provision regarding 
355.10 	MnDHO costs for home and community-based services, the commissioner shall achieve 
355.11 	the reduction by maintaining the base rate for contract year 2010 for services provided under 
355.12 	the community access for disability inclusion waiver at the same level as for contract year 
355.13 	2009. The commissioner may apply other reductions to MnDHO rates to implement decreases 
355.14 	in provider payment rates required by state law. Effective January 1, 2011, enrollment and 
355.15 	operation of the MnDHO program in effect during 2010 shall cease. The commissioner may 
355.16 	reopen the program provided all applicable conditions of this section are met. In developing 
355.17 	program specifications for expansion of integrated programs, the commissioner shall involve 
355.18 	and consult the state-level stakeholder group established in subdivision 28, paragraph (d), 
355.19 	including consultation on whether and how to include home and community-based waiver 
355.20 	programs. Plans to reopen MnDHO projects shall be presented to the chairs of the house of 
355.21 	representatives and senate committees with jurisdiction over health and human services 
355.22 	policy and finance prior to implementation.
355.23 	(g) Notwithstanding section 256B.0621, health plans providing services under this section 
355.24 	are responsible for home care targeted case management and relocation targeted case 
355.25 	management. Services must be provided according to the terms of the waivers and contracts 
355.26 	approved by the federal government.

355.27 	Sec. 71. Minnesota Statutes 2024, section 256B.77, subdivision 7a, is amended to read:
355.28 		Subd. 7a.Eligible individuals. (a) Persons are eligible for the demonstration project as 
355.29 	provided in this subdivision.
355.30 	(b) "Eligible individuals" means those persons living in the demonstration site who are 
355.31 	eligible for medical assistance and are disabled based on a disability determination under 
355.32 	section 256B.055, subdivisions 7 and 12, or who are eligible for medical assistance and 
355.33 	have been diagnosed as having:
355.34 	(1) serious and persistent mental illness as defined in section 245.462, subdivision 20;
356.1 	(2) severe emotional disturbance serious mental illness as defined in section 245.4871, 
356.2 	subdivision 6; or
356.3 	(3) developmental disability, or being a person with a developmental disability as defined 
356.4 	in section 252A.02, or a related condition as defined in section 256B.02, subdivision 11.
356.5 	Other individuals may be included at the option of the county authority based on agreement 
356.6 	with the commissioner.
356.7 	(c) Eligible individuals include individuals in excluded time status, as defined in chapter 
356.8 	256G. Enrollees in excluded time at the time of enrollment shall remain in excluded time 
356.9 	status as long as they live in the demonstration site and shall be eligible for 90 days after 
356.10 	placement outside the demonstration site if they move to excluded time status in a county 
356.11 	within Minnesota other than their county of financial responsibility.
356.12 	(d) A person who is a sexual psychopathic personality as defined in section 253D.02, 
356.13 	subdivision 15, or a sexually dangerous person as defined in section 253D.02, subdivision 
356.14 	16, is excluded from enrollment in the demonstration project.

356.15 	Sec. 72. Minnesota Statutes 2024, section 260B.157, subdivision 3, is amended to read:
356.16 		Subd. 3.Juvenile treatment screening team. (a) The local social services agency shall 
356.17 	establish a juvenile treatment screening team to conduct screenings and prepare case plans 
356.18 	under this subdivision. The team, which may be the team constituted under section 245.4885 
356.19 	or 256B.092 or chapter 254B, shall consist of social workers, juvenile justice professionals, 
356.20 	and persons with expertise in the treatment of juveniles who are emotionally disabled, 
356.21 	chemically dependent, or have a developmental disability. The team shall involve parents 
356.22 	or guardians in the screening process as appropriate. The team may be the same team as 
356.23 	defined in section 260C.157, subdivision 3.
356.24 	(b) If the court, prior to, or as part of, a final disposition, proposes to place a child:
356.25 	(1) for the primary purpose of treatment for an emotional disturbance mental illness, 
356.26 	and residential placement is consistent with section 260.012, a developmental disability, or 
356.27 	chemical dependency in a residential treatment facility out of state or in one which is within 
356.28 	the state and licensed by the commissioner of human services under chapter 245A; or
356.29 	(2) in any out-of-home setting potentially exceeding 30 days in duration, including a 
356.30 	post-dispositional placement in a facility licensed by the commissioner of corrections or 
356.31 	human services, the court shall notify the county welfare agency. The county's juvenile 
356.32 	treatment screening team must either:
357.1 	(i) screen and evaluate the child and file its recommendations with the court within 14 
357.2 	days of receipt of the notice; or
357.3 	(ii) elect not to screen a given case, and notify the court of that decision within three 
357.4 	working days.
357.5 	(c) If the screening team has elected to screen and evaluate the child, the child may not 
357.6 	be placed for the primary purpose of treatment for an emotional disturbance mental illness, 
357.7 	a developmental disability, or chemical dependency, in a residential treatment facility out 
357.8 	of state nor in a residential treatment facility within the state that is licensed under chapter 
357.9 	245A, unless one of the following conditions applies:
357.10 	(1) a treatment professional certifies that an emergency requires the placement of the 
357.11 	child in a facility within the state;
357.12 	(2) the screening team has evaluated the child and recommended that a residential 
357.13 	placement is necessary to meet the child's treatment needs and the safety needs of the 
357.14 	community, that it is a cost-effective means of meeting the treatment needs, and that it will 
357.15 	be of therapeutic value to the child; or
357.16 	(3) the court, having reviewed a screening team recommendation against placement, 
357.17 	determines to the contrary that a residential placement is necessary. The court shall state 
357.18 	the reasons for its determination in writing, on the record, and shall respond specifically to 
357.19 	the findings and recommendation of the screening team in explaining why the 
357.20 	recommendation was rejected. The attorney representing the child and the prosecuting 
357.21 	attorney shall be afforded an opportunity to be heard on the matter.

357.22 	Sec. 73. Minnesota Statutes 2024, section 260C.007, subdivision 16, is amended to read:
357.23 		Subd. 16.Emotionally disturbed Mental illness. "Emotionally disturbed Mental illness" 
357.24 	means emotional disturbance mental illness as described in section 245.4871, subdivision 
357.25 	15.

357.26 	Sec. 74. Minnesota Statutes 2024, section 260C.007, subdivision 26d, is amended to read:
357.27 		Subd. 26d.Qualified residential treatment program. "Qualified residential treatment 
357.28 	program" means a children's residential treatment program licensed under chapter 245A or 
357.29 	licensed or approved by a tribe that is approved to receive foster care maintenance payments 
357.30 	under section 142A.418 that:
357.31 	(1) has a trauma-informed treatment model designed to address the needs of children 
357.32 	with serious emotional or behavioral disorders or disturbances or mental illnesses;
358.1 	(2) has registered or licensed nursing staff and other licensed clinical staff who:
358.2 	(i) provide care within the scope of their practice; and
358.3 	(ii) are available 24 hours per day and seven days per week;
358.4 	(3) is accredited by any of the following independent, nonprofit organizations: the 
358.5 	Commission on Accreditation of Rehabilitation Facilities (CARF), the Joint Commission 
358.6 	on Accreditation of Healthcare Organizations (JCAHO), and the Council on Accreditation 
358.7 	(COA), or any other nonprofit accrediting organization approved by the United States 
358.8 	Department of Health and Human Services;
358.9 	(4) if it is in the child's best interests, facilitates participation of the child's family members 
358.10 	in the child's treatment programming consistent with the child's out-of-home placement 
358.11 	plan under sections 260C.212, subdivision 1, and 260C.708;
358.12 	(5) facilitates outreach to family members of the child, including siblings;
358.13 	(6) documents how the facility facilitates outreach to the child's parents and relatives, 
358.14 	as well as documents the child's parents' and other relatives' contact information;
358.15 	(7) documents how the facility includes family members in the child's treatment process, 
358.16 	including after the child's discharge, and how the facility maintains the child's sibling 
358.17 	connections; and
358.18 	(8) provides the child and child's family with discharge planning and family-based 
358.19 	aftercare support for at least six months after the child's discharge. Aftercare support may 
358.20 	include clinical care consultation under section 256B.0671, subdivision 7, and mental health 
358.21 	certified family peer specialist services under section 256B.0616.

358.22 	Sec. 75. Minnesota Statutes 2024, section 260C.007, subdivision 27b, is amended to read:
358.23 		Subd. 27b.Residential treatment facility. "Residential treatment facility" means a 
358.24 	24-hour-a-day program that provides treatment for children with emotional disturbance
358.25 	mental illness, consistent with section 245.4871, subdivision 32, and includes a licensed 
358.26 	residential program specializing in caring 24 hours a day for children with a developmental 
358.27 	delay or related condition. A residential treatment facility does not include a psychiatric 
358.28 	residential treatment facility under section 256B.0941 or a family foster home as defined 
358.29 	in section 260C.007, subdivision 16b.

359.1 	Sec. 76. Minnesota Statutes 2024, section 260C.157, subdivision 3, is amended to read:
359.2 		Subd. 3.Juvenile treatment screening team. (a) The responsible social services agency 
359.3 	shall establish a juvenile treatment screening team to conduct screenings under this chapter 
359.4 	and chapter 260D, for a child to receive treatment for an emotional disturbance a mental 
359.5 	illness, a developmental disability, or related condition in a residential treatment facility 
359.6 	licensed by the commissioner of human services under chapter 245A, or licensed or approved 
359.7 	by a tribe. A screening team is not required for a child to be in: (1) a residential facility 
359.8 	specializing in prenatal, postpartum, or parenting support; (2) a facility specializing in 
359.9 	high-quality residential care and supportive services to children and youth who have been 
359.10 	or are at risk of becoming victims of sex trafficking or commercial sexual exploitation; (3) 
359.11 	supervised settings for youth who are 18 years of age or older and living independently; or 
359.12 	(4) a licensed residential family-based treatment facility for substance abuse consistent with 
359.13 	section 260C.190. Screenings are also not required when a child must be placed in a facility 
359.14 	due to an emotional crisis or other mental health emergency.
359.15 	(b) The responsible social services agency shall conduct screenings within 15 days of a 
359.16 	request for a screening, unless the screening is for the purpose of residential treatment and 
359.17 	the child is enrolled in a prepaid health program under section 256B.69, in which case the 
359.18 	agency shall conduct the screening within ten working days of a request. The responsible 
359.19 	social services agency shall convene the juvenile treatment screening team, which may be 
359.20 	constituted under section 245.4885, 254B.05, or 256B.092. The team shall consist of social 
359.21 	workers; persons with expertise in the treatment of juveniles who are emotionally disturbed, 
359.22 	chemically dependent, or have a developmental disability; and the child's parent, guardian, 
359.23 	or permanent legal custodian. The team may include the child's relatives as defined in section 
359.24 	260C.007, subdivisions 26b and 27, the child's foster care provider, and professionals who 
359.25 	are a resource to the child's family such as teachers, medical or mental health providers, 
359.26 	and clergy, as appropriate, consistent with the family and permanency team as defined in 
359.27 	section 260C.007, subdivision 16a. Prior to forming the team, the responsible social services 
359.28 	agency must consult with the child's parents, the child if the child is age 14 or older, and, 
359.29 	if applicable, the child's tribe to obtain recommendations regarding which individuals to 
359.30 	include on the team and to ensure that the team is family-centered and will act in the child's 
359.31 	best interests. If the child, child's parents, or legal guardians raise concerns about specific 
359.32 	relatives or professionals, the team should not include those individuals. This provision 
359.33 	does not apply to paragraph (c).
359.34 	(c) If the agency provides notice to tribes under section 260.761, and the child screened 
359.35 	is an Indian child, the responsible social services agency must make a rigorous and concerted 
360.1 	effort to include a designated representative of the Indian child's tribe on the juvenile 
360.2 	treatment screening team, unless the child's tribal authority declines to appoint a 
360.3 	representative. The Indian child's tribe may delegate its authority to represent the child to 
360.4 	any other federally recognized Indian tribe, as defined in section 260.755, subdivision 12. 
360.5 	The provisions of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 
360.6 	1901 to 1963, and the Minnesota Indian Family Preservation Act, sections 260.751 to 
360.7 	260.835, apply to this section.
360.8 	(d) If the court, prior to, or as part of, a final disposition or other court order, proposes 
360.9 	to place a child with an emotional disturbance or a mental illness, developmental disability,
360.10 	or related condition in residential treatment, the responsible social services agency must 
360.11 	conduct a screening. If the team recommends treating the child in a qualified residential 
360.12 	treatment program, the agency must follow the requirements of sections 260C.70 to 
360.13 	260C.714.
360.14 	The court shall ascertain whether the child is an Indian child and shall notify the 
360.15 	responsible social services agency and, if the child is an Indian child, shall notify the Indian 
360.16 	child's tribe as paragraph (c) requires.
360.17 	(e) When the responsible social services agency is responsible for placing and caring 
360.18 	for the child and the screening team recommends placing a child in a qualified residential 
360.19 	treatment program as defined in section 260C.007, subdivision 26d, the agency must: (1) 
360.20 	begin the assessment and processes required in section 260C.704 without delay; and (2) 
360.21 	conduct a relative search according to section 260C.221 to assemble the child's family and 
360.22 	permanency team under section 260C.706. Prior to notifying relatives regarding the family 
360.23 	and permanency team, the responsible social services agency must consult with the child's 
360.24 	parent or legal guardian, the child if the child is age 14 or older, and, if applicable, the child's 
360.25 	tribe to ensure that the agency is providing notice to individuals who will act in the child's 
360.26 	best interests. The child and the child's parents may identify a culturally competent qualified 
360.27 	individual to complete the child's assessment. The agency shall make efforts to refer the 
360.28 	assessment to the identified qualified individual. The assessment may not be delayed for 
360.29 	the purpose of having the assessment completed by a specific qualified individual.
360.30 	(f) When a screening team determines that a child does not need treatment in a qualified 
360.31 	residential treatment program, the screening team must:
360.32 	(1) document the services and supports that will prevent the child's foster care placement 
360.33 	and will support the child remaining at home;
361.1 	(2) document the services and supports that the agency will arrange to place the child 
361.2 	in a family foster home; or
361.3 	(3) document the services and supports that the agency has provided in any other setting.
361.4 	(g) When the Indian child's tribe or tribal health care services provider or Indian Health 
361.5 	Services provider proposes to place a child for the primary purpose of treatment for an 
361.6 	emotional disturbance mental illness, a developmental disability, or co-occurring emotional 
361.7 	disturbance mental illness and chemical dependency, the Indian child's tribe or the tribe 
361.8 	delegated by the child's tribe shall submit necessary documentation to the county juvenile 
361.9 	treatment screening team, which must invite the Indian child's tribe to designate a 
361.10 	representative to the screening team.
361.11 	(h) The responsible social services agency must conduct and document the screening in 
361.12 	a format approved by the commissioner of human services.

361.13 	Sec. 77. Minnesota Statutes 2024, section 260C.201, subdivision 1, is amended to read:
361.14 		Subdivision 1.Dispositions. (a) If the court finds that the child is in need of protection 
361.15 	or services or neglected and in foster care, the court shall enter an order making any of the 
361.16 	following dispositions of the case:
361.17 	(1) place the child under the protective supervision of the responsible social services 
361.18 	agency or child-placing agency in the home of a parent of the child under conditions 
361.19 	prescribed by the court directed to the correction of the child's need for protection or services:
361.20 	(i) the court may order the child into the home of a parent who does not otherwise have 
361.21 	legal custody of the child, however, an order under this section does not confer legal custody 
361.22 	on that parent;
361.23 	(ii) if the court orders the child into the home of a father who is not adjudicated, the 
361.24 	father must cooperate with paternity establishment proceedings regarding the child in the 
361.25 	appropriate jurisdiction as one of the conditions prescribed by the court for the child to 
361.26 	continue in the father's home; and
361.27 	(iii) the court may order the child into the home of a noncustodial parent with conditions 
361.28 	and may also order both the noncustodial and the custodial parent to comply with the 
361.29 	requirements of a case plan under subdivision 2; or
361.30 	(2) transfer legal custody to one of the following:
361.31 	(i) a child-placing agency; or
362.1 	(ii) the responsible social services agency. In making a foster care placement of a child 
362.2 	whose custody has been transferred under this subdivision, the agency shall make an 
362.3 	individualized determination of how the placement is in the child's best interests using the 
362.4 	placement consideration order for relatives and the best interest factors in section 260C.212, 
362.5 	subdivision 2, and may include a child colocated with a parent in a licensed residential 
362.6 	family-based substance use disorder treatment program under section 260C.190; or
362.7 	(3) order a trial home visit without modifying the transfer of legal custody to the 
362.8 	responsible social services agency under clause (2). Trial home visit means the child is 
362.9 	returned to the care of the parent or guardian from whom the child was removed for a period 
362.10 	not to exceed six months. During the period of the trial home visit, the responsible social 
362.11 	services agency:
362.12 	(i) shall continue to have legal custody of the child, which means that the agency may 
362.13 	see the child in the parent's home, at school, in a child care facility, or other setting as the 
362.14 	agency deems necessary and appropriate;
362.15 	(ii) shall continue to have the ability to access information under section 260C.208;
362.16 	(iii) shall continue to provide appropriate services to both the parent and the child during 
362.17 	the period of the trial home visit;
362.18 	(iv) without previous court order or authorization, may terminate the trial home visit in 
362.19 	order to protect the child's health, safety, or welfare and may remove the child to foster care;
362.20 	(v) shall advise the court and parties within three days of the termination of the trial 
362.21 	home visit when a visit is terminated by the responsible social services agency without a 
362.22 	court order; and
362.23 	(vi) shall prepare a report for the court when the trial home visit is terminated whether 
362.24 	by the agency or court order that describes the child's circumstances during the trial home 
362.25 	visit and recommends appropriate orders, if any, for the court to enter to provide for the 
362.26 	child's safety and stability. In the event a trial home visit is terminated by the agency by 
362.27 	removing the child to foster care without prior court order or authorization, the court shall 
362.28 	conduct a hearing within ten days of receiving notice of the termination of the trial home 
362.29 	visit by the agency and shall order disposition under this subdivision or commence 
362.30 	permanency proceedings under sections 260C.503 to 260C.515. The time period for the 
362.31 	hearing may be extended by the court for good cause shown and if it is in the best interests 
362.32 	of the child as long as the total time the child spends in foster care without a permanency 
362.33 	hearing does not exceed 12 months;
363.1 	(4) if the child has been adjudicated as a child in need of protection or services because 
363.2 	the child is in need of special services or care to treat or ameliorate a physical or mental 
363.3 	disability or emotional disturbance mental illness as defined in section 245.4871, subdivision 
363.4 	15, the court may order the child's parent, guardian, or custodian to provide it. The court 
363.5 	may order the child's health plan company to provide mental health services to the child. 
363.6 	Section 62Q.535 applies to an order for mental health services directed to the child's health 
363.7 	plan company. If the health plan, parent, guardian, or custodian fails or is unable to provide 
363.8 	this treatment or care, the court may order it provided. Absent specific written findings by 
363.9 	the court that the child's disability is the result of abuse or neglect by the child's parent or 
363.10 	guardian, the court shall not transfer legal custody of the child for the purpose of obtaining 
363.11 	special treatment or care solely because the parent is unable to provide the treatment or care. 
363.12 	If the court's order for mental health treatment is based on a diagnosis made by a treatment 
363.13 	professional, the court may order that the diagnosing professional not provide the treatment 
363.14 	to the child if it finds that such an order is in the child's best interests; or
363.15 	(5) if the court believes that the child has sufficient maturity and judgment and that it is 
363.16 	in the best interests of the child, the court may order a child 16 years old or older to be 
363.17 	allowed to live independently, either alone or with others as approved by the court under 
363.18 	supervision the court considers appropriate, if the county board, after consultation with the 
363.19 	court, has specifically authorized this dispositional alternative for a child.
363.20 	(b) If the child was adjudicated in need of protection or services because the child is a 
363.21 	runaway or habitual truant, the court may order any of the following dispositions in addition 
363.22 	to or as alternatives to the dispositions authorized under paragraph (a):
363.23 	(1) counsel the child or the child's parents, guardian, or custodian;
363.24 	(2) place the child under the supervision of a probation officer or other suitable person 
363.25 	in the child's own home under conditions prescribed by the court, including reasonable rules 
363.26 	for the child's conduct and the conduct of the parents, guardian, or custodian, designed for 
363.27 	the physical, mental, and moral well-being and behavior of the child;
363.28 	(3) subject to the court's supervision, transfer legal custody of the child to one of the 
363.29 	following:
363.30 	(i) a reputable person of good moral character. No person may receive custody of two 
363.31 	or more unrelated children unless licensed to operate a residential program under sections 
363.32 	245A.01 to 245A.16; or
363.33 	(ii) a county probation officer for placement in a group foster home established under 
363.34 	the direction of the juvenile court and licensed pursuant to section 241.021;
364.1 	(4) require the child to pay a fine of up to $100. The court shall order payment of the 
364.2 	fine in a manner that will not impose undue financial hardship upon the child;
364.3 	(5) require the child to participate in a community service project;
364.4 	(6) order the child to undergo a chemical dependency evaluation and, if warranted by 
364.5 	the evaluation, order participation by the child in a drug awareness program or an inpatient 
364.6 	or outpatient chemical dependency treatment program;
364.7 	(7) if the court believes that it is in the best interests of the child or of public safety that 
364.8 	the child's driver's license or instruction permit be canceled, the court may order the 
364.9 	commissioner of public safety to cancel the child's license or permit for any period up to 
364.10 	the child's 18th birthday. If the child does not have a driver's license or permit, the court 
364.11 	may order a denial of driving privileges for any period up to the child's 18th birthday. The 
364.12 	court shall forward an order issued under this clause to the commissioner, who shall cancel 
364.13 	the license or permit or deny driving privileges without a hearing for the period specified 
364.14 	by the court. At any time before the expiration of the period of cancellation or denial, the 
364.15 	court may, for good cause, order the commissioner of public safety to allow the child to 
364.16 	apply for a license or permit, and the commissioner shall so authorize;
364.17 	(8) order that the child's parent or legal guardian deliver the child to school at the 
364.18 	beginning of each school day for a period of time specified by the court; or
364.19 	(9) require the child to perform any other activities or participate in any other treatment 
364.20 	programs deemed appropriate by the court.
364.21 	To the extent practicable, the court shall enter a disposition order the same day it makes 
364.22 	a finding that a child is in need of protection or services or neglected and in foster care, but 
364.23 	in no event more than 15 days after the finding unless the court finds that the best interests 
364.24 	of the child will be served by granting a delay. If the child was under eight years of age at 
364.25 	the time the petition was filed, the disposition order must be entered within ten days of the 
364.26 	finding and the court may not grant a delay unless good cause is shown and the court finds 
364.27 	the best interests of the child will be served by the delay.
364.28 	(c) If a child who is 14 years of age or older is adjudicated in need of protection or 
364.29 	services because the child is a habitual truant and truancy procedures involving the child 
364.30 	were previously dealt with by a school attendance review board or county attorney mediation 
364.31 	program under section 260A.06 or 260A.07, the court shall order a cancellation or denial 
364.32 	of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th 
364.33 	birthday.
365.1 	(d) In the case of a child adjudicated in need of protection or services because the child 
365.2 	has committed domestic abuse and been ordered excluded from the child's parent's home, 
365.3 	the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing 
365.4 	to provide an alternative safe living arrangement for the child as defined in paragraph (f).
365.5 	(e) When a parent has complied with a case plan ordered under subdivision 6 and the 
365.6 	child is in the care of the parent, the court may order the responsible social services agency 
365.7 	to monitor the parent's continued ability to maintain the child safely in the home under such 
365.8 	terms and conditions as the court determines appropriate under the circumstances.
365.9 	(f) For the purposes of this subdivision, "alternative safe living arrangement" means a 
365.10 	living arrangement for a child proposed by a petitioning parent or guardian if a court excludes 
365.11 	the minor from the parent's or guardian's home that is separate from the victim of domestic 
365.12 	abuse and safe for the child respondent. A living arrangement proposed by a petitioning 
365.13 	parent or guardian is presumed to be an alternative safe living arrangement absent information 
365.14 	to the contrary presented to the court. In evaluating any proposed living arrangement, the 
365.15 	court shall consider whether the arrangement provides the child with necessary food, clothing, 
365.16 	shelter, and education in a safe environment. Any proposed living arrangement that would 
365.17 	place the child in the care of an adult who has been physically or sexually violent is presumed 
365.18 	unsafe.

365.19 	Sec. 78. Minnesota Statutes 2024, section 260C.201, subdivision 2, is amended to read:
365.20 		Subd. 2.Written findings. (a) Any order for a disposition authorized under this section 
365.21 	shall contain written findings of fact to support the disposition and case plan ordered and 
365.22 	shall also set forth in writing the following information:
365.23 	(1) why the best interests and safety of the child are served by the disposition and case 
365.24 	plan ordered;
365.25 	(2) what alternative dispositions or services under the case plan were considered by the 
365.26 	court and why such dispositions or services were not appropriate in the instant case;
365.27 	(3) when legal custody of the child is transferred, the appropriateness of the particular 
365.28 	placement made or to be made by the placing agency using the relative and sibling placement 
365.29 	considerations and best interest factors in section 260C.212, subdivision 2, or the 
365.30 	appropriateness of a child colocated with a parent in a licensed residential family-based 
365.31 	substance use disorder treatment program under section 260C.190;
365.32 	(4) whether reasonable efforts to finalize the permanent plan for the child consistent 
365.33 	with section 260.012 were made including reasonable efforts:
366.1 	(i) to prevent the child's placement and to reunify the child with the parent or guardian 
366.2 	from whom the child was removed at the earliest time consistent with the child's safety. 
366.3 	The court's findings must include a brief description of what preventive and reunification 
366.4 	efforts were made and why further efforts could not have prevented or eliminated the 
366.5 	necessity of removal or that reasonable efforts were not required under section 260.012 or 
366.6 	260C.178, subdivision 1;
366.7 	(ii) to identify and locate any noncustodial or nonresident parent of the child and to 
366.8 	assess such parent's ability to provide day-to-day care of the child, and, where appropriate, 
366.9 	provide services necessary to enable the noncustodial or nonresident parent to safely provide 
366.10 	day-to-day care of the child as required under section 260C.219, unless such services are 
366.11 	not required under section 260.012 or 260C.178, subdivision 1. The court's findings must 
366.12 	include a description of the agency's efforts to:
366.13 	(A) identify and locate the child's noncustodial or nonresident parent;
366.14 	(B) assess the noncustodial or nonresident parent's ability to provide day-to-day care of 
366.15 	the child; and
366.16 	(C) if appropriate, provide services necessary to enable the noncustodial or nonresident 
366.17 	parent to safely provide the child's day-to-day care, including efforts to engage the 
366.18 	noncustodial or nonresident parent in assuming care and responsibility of the child;
366.19 	(iii) to make the diligent search for relatives and provide the notices required under 
366.20 	section 260C.221; a finding made pursuant to a hearing under section 260C.202 that the 
366.21 	agency has made diligent efforts to conduct a relative search and has appropriately engaged 
366.22 	relatives who responded to the notice under section 260C.221 and other relatives, who came 
366.23 	to the attention of the agency after notice under section 260C.221 was sent, in placement 
366.24 	and case planning decisions fulfills the requirement of this item;
366.25 	(iv) to identify and make a foster care placement of the child, considering the order in 
366.26 	section 260C.212, subdivision 2, paragraph (a), in the home of an unlicensed relative, 
366.27 	according to the requirements of section 142B.06, a licensed relative, or other licensed foster 
366.28 	care provider, who will commit to being the permanent legal parent or custodian for the 
366.29 	child in the event reunification cannot occur, but who will actively support the reunification 
366.30 	plan for the child. If the court finds that the agency has not appropriately considered relatives 
366.31 	for placement of the child, the court shall order the agency to comply with section 260C.212, 
366.32 	subdivision 2, paragraph (a). The court may order the agency to continue considering 
366.33 	relatives for placement of the child regardless of the child's current placement setting; and
367.1 	(v) to place siblings together in the same home or to ensure visitation is occurring when 
367.2 	siblings are separated in foster care placement and visitation is in the siblings' best interests 
367.3 	under section 260C.212, subdivision 2, paragraph (d); and
367.4 	(5) if the child has been adjudicated as a child in need of protection or services because 
367.5 	the child is in need of special services or care to treat or ameliorate a mental disability or 
367.6 	emotional disturbance mental illness as defined in section 245.4871, subdivision 15, the 
367.7 	written findings shall also set forth:
367.8 	(i) whether the child has mental health needs that must be addressed by the case plan;
367.9 	(ii) what consideration was given to the diagnostic and functional assessments performed 
367.10 	by the child's mental health professional and to health and mental health care professionals' 
367.11 	treatment recommendations;
367.12 	(iii) what consideration was given to the requests or preferences of the child's parent or 
367.13 	guardian with regard to the child's interventions, services, or treatment; and
367.14 	(iv) what consideration was given to the cultural appropriateness of the child's treatment 
367.15 	or services.
367.16 	(b) If the court finds that the social services agency's preventive or reunification efforts 
367.17 	have not been reasonable but that further preventive or reunification efforts could not permit 
367.18 	the child to safely remain at home, the court may nevertheless authorize or continue the 
367.19 	removal of the child.
367.20 	(c) If the child has been identified by the responsible social services agency as the subject 
367.21 	of concurrent permanency planning, the court shall review the reasonable efforts of the 
367.22 	agency to develop a permanency plan for the child that includes a primary plan that is for 
367.23 	reunification with the child's parent or guardian and a secondary plan that is for an alternative, 
367.24 	legally permanent home for the child in the event reunification cannot be achieved in a 
367.25 	timely manner.

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

368.5 	Sec. 80. Minnesota Statutes 2024, section 260D.01, is amended to read:
368.6 	260D.01 CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT.
368.7 	(a) Sections 260D.01 to 260D.10, may be cited as the "child in voluntary foster care for 
368.8 	treatment" provisions of the Juvenile Court Act.
368.9 	(b) The juvenile court has original and exclusive jurisdiction over a child in voluntary 
368.10 	foster care for treatment upon the filing of a report or petition required under this chapter. 
368.11 	All obligations of the responsible social services agency to a child and family in foster care 
368.12 	contained in chapter 260C not inconsistent with this chapter are also obligations of the 
368.13 	agency with regard to a child in foster care for treatment under this chapter.
368.14 	(c) This chapter shall be construed consistently with the mission of the children's mental 
368.15 	health service system as set out in section 245.487, subdivision 3, and the duties of an agency 
368.16 	under sections 256B.092 and 260C.157 and Minnesota Rules, parts 9525.0004 to 9525.0016, 
368.17 	to meet the needs of a child with a developmental disability or related condition. This 
368.18 	chapter:
368.19 	(1) establishes voluntary foster care through a voluntary foster care agreement as the 
368.20 	means for an agency and a parent to provide needed treatment when the child must be in 
368.21 	foster care to receive necessary treatment for an emotional disturbance or a mental illness,
368.22 	developmental disability, or related condition;
368.23 	(2) establishes court review requirements for a child in voluntary foster care for treatment 
368.24 	due to emotional disturbance or a mental illness, developmental disability, or a related 
368.25 	condition;
368.26 	(3) establishes the ongoing responsibility of the parent as legal custodian to visit the 
368.27 	child, to plan together with the agency for the child's treatment needs, to be available and 
368.28 	accessible to the agency to make treatment decisions, and to obtain necessary medical, 
368.29 	dental, and other care for the child;
368.30 	(4) applies to voluntary foster care when the child's parent and the agency agree that the 
368.31 	child's treatment needs require foster care either:
369.1 	(i) due to a level of care determination by the agency's screening team informed by the 
369.2 	child's diagnostic and functional assessment under section 245.4885; or
369.3 	(ii) due to a determination regarding the level of services needed by the child by the 
369.4 	responsible social services agency's screening team under section 256B.092, and Minnesota 
369.5 	Rules, parts 9525.0004 to 9525.0016; and
369.6 	(5) includes the requirements for a child's placement in sections 260C.70 to 260C.714, 
369.7 	when the juvenile treatment screening team recommends placing a child in a qualified 
369.8 	residential treatment program, except as modified by this chapter.
369.9 	(d) This chapter does not apply when there is a current determination under chapter 
369.10 	260E that the child requires child protective services or when the child is in foster care for 
369.11 	any reason other than treatment for the child's emotional disturbance or mental illness,
369.12 	developmental disability, or related condition. When there is a determination under chapter 
369.13 	260E that the child requires child protective services based on an assessment that there are 
369.14 	safety and risk issues for the child that have not been mitigated through the parent's 
369.15 	engagement in services or otherwise, or when the child is in foster care for any reason other 
369.16 	than the child's emotional disturbance or mental illness, developmental disability, or related 
369.17 	condition, the provisions of chapter 260C apply.
369.18 	(e) The paramount consideration in all proceedings concerning a child in voluntary foster 
369.19 	care for treatment is the safety, health, and the best interests of the child. The purpose of 
369.20 	this chapter is:
369.21 	(1) to ensure that a child with a disability is provided the services necessary to treat or 
369.22 	ameliorate the symptoms of the child's disability;
369.23 	(2) to preserve and strengthen the child's family ties whenever possible and in the child's 
369.24 	best interests, approving the child's placement away from the child's parents only when the 
369.25 	child's need for care or treatment requires out-of-home placement and the child cannot be 
369.26 	maintained in the home of the parent; and
369.27 	(3) to ensure that the child's parent retains legal custody of the child and associated 
369.28 	decision-making authority unless the child's parent willfully fails or is unable to make 
369.29 	decisions that meet the child's safety, health, and best interests. The court may not find that 
369.30 	the parent willfully fails or is unable to make decisions that meet the child's needs solely 
369.31 	because the parent disagrees with the agency's choice of foster care facility, unless the 
369.32 	agency files a petition under chapter 260C, and establishes by clear and convincing evidence 
369.33 	that the child is in need of protection or services.
370.1 	(f) The legal parent-child relationship shall be supported under this chapter by maintaining 
370.2 	the parent's legal authority and responsibility for ongoing planning for the child and by the 
370.3 	agency's assisting the parent, when necessary, to exercise the parent's ongoing right and 
370.4 	obligation to visit or to have reasonable contact with the child. Ongoing planning means:
370.5 	(1) actively participating in the planning and provision of educational services, medical, 
370.6 	and dental care for the child;
370.7 	(2) actively planning and participating with the agency and the foster care facility for 
370.8 	the child's treatment needs;
370.9 	(3) planning to meet the child's need for safety, stability, and permanency, and the child's 
370.10 	need to stay connected to the child's family and community;
370.11 	(4) engaging with the responsible social services agency to ensure that the family and 
370.12 	permanency team under section 260C.706 consists of appropriate family members. For 
370.13 	purposes of voluntary placement of a child in foster care for treatment under chapter 260D, 
370.14 	prior to forming the child's family and permanency team, the responsible social services 
370.15 	agency must consult with the child's parent or legal guardian, the child if the child is 14 
370.16 	years of age or older, and, if applicable, the child's Tribe to obtain recommendations regarding 
370.17 	which individuals to include on the team and to ensure that the team is family-centered and 
370.18 	will act in the child's best interests. If the child, child's parents, or legal guardians raise 
370.19 	concerns about specific relatives or professionals, the team should not include those 
370.20 	individuals unless the individual is a treating professional or an important connection to the 
370.21 	youth as outlined in the case or crisis plan; and
370.22 	(5) for a voluntary placement under this chapter in a qualified residential treatment 
370.23 	program, as defined in section 260C.007, subdivision 26d, for purposes of engaging in a 
370.24 	relative search as provided in section 260C.221, the county agency must consult with the 
370.25 	child's parent or legal guardian, the child if the child is 14 years of age or older, and, if 
370.26 	applicable, the child's Tribe to obtain recommendations regarding which adult relatives the 
370.27 	county agency should notify. If the child, child's parents, or legal guardians raise concerns 
370.28 	about specific relatives, the county agency should not notify those relatives.
370.29 	(g) The provisions of section 260.012 to ensure placement prevention, family 
370.30 	reunification, and all active and reasonable effort requirements of that section apply.

370.31 	Sec. 81. Minnesota Statutes 2024, section 260D.02, subdivision 5, is amended to read:
370.32 		Subd. 5.Child in voluntary foster care for treatment. "Child in voluntary foster care 
370.33 	for treatment" means a child with emotional disturbance a mental illness or developmental 
371.1 	disability, or who has a related condition and is in foster care under a voluntary foster care 
371.2 	agreement between the child's parent and the agency due to concurrence between the agency 
371.3 	and the parent when it is determined that foster care is medically necessary:
371.4 	(1) due to a determination by the agency's screening team based on its review of the 
371.5 	diagnostic and functional assessment under section 245.4885; or
371.6 	(2) due to a determination by the agency's screening team under section 256B.092 and 
371.7 	Minnesota Rules, parts 9525.0004 to 9525.0016.
371.8 	A child is not in voluntary foster care for treatment under this chapter when there is a 
371.9 	current determination under chapter 260E that the child requires child protective services 
371.10 	or when the child is in foster care for any reason other than the child's emotional or mental 
371.11 	illness, developmental disability, or related condition.

371.12 	Sec. 82. Minnesota Statutes 2024, section 260D.02, subdivision 9, is amended to read:
371.13 		Subd. 9.Emotional disturbance Mental illness.  "Emotional disturbance Mental illness" 
371.14 	means emotional disturbance mental illness as described in section 245.4871, subdivision 
371.15 	15.

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

371.24 	Sec. 84. Minnesota Statutes 2024, section 260D.04, is amended to read:
371.25 	260D.04 REQUIRED INFORMATION FOR A CHILD IN VOLUNTARY FOSTER 
371.26 	CARE FOR TREATMENT.
371.27 	An agency with authority to place a child in voluntary foster care for treatment due to 
371.28 	emotional disturbance or a mental illness, developmental disability, or related condition,
371.29 	shall inform the child, age 12 or older, of the following:
372.1 	(1) the child has the right to be consulted in the preparation of the out-of-home placement 
372.2 	plan required under section 260C.212, subdivision 1, and the administrative review required 
372.3 	under section 260C.203;
372.4 	(2) the child has the right to visit the parent and the right to visit the child's siblings as 
372.5 	determined safe and appropriate by the parent and the agency;
372.6 	(3) if the child disagrees with the foster care facility or services provided under the 
372.7 	out-of-home placement plan required under section 260C.212, subdivision 1, the agency 
372.8 	shall include information about the nature of the child's disagreement and, to the extent 
372.9 	possible, the agency's understanding of the basis of the child's disagreement in the information 
372.10 	provided to the court in the report required under section 260D.06; and
372.11 	(4) the child has the rights established under Minnesota Rules, part 2960.0050, as a 
372.12 	resident of a facility licensed by the state.

372.13 	Sec. 85. Minnesota Statutes 2024, section 260D.06, subdivision 2, is amended to read:
372.14 		Subd. 2.Agency report to court; court review. The agency shall obtain judicial review 
372.15 	by reporting to the court according to the following procedures:
372.16 	(a) A written report shall be forwarded to the court within 165 days of the date of the 
372.17 	voluntary placement agreement. The written report shall contain or have attached:
372.18 	(1) a statement of facts that necessitate the child's foster care placement;
372.19 	(2) the child's name, date of birth, race, gender, and current address;
372.20 	(3) the names, race, date of birth, residence, and post office addresses of the child's 
372.21 	parents or legal custodian;
372.22 	(4) a statement regarding the child's eligibility for membership or enrollment in an Indian 
372.23 	tribe and the agency's compliance with applicable provisions of sections 260.751 to 260.835;
372.24 	(5) the names and addresses of the foster parents or chief administrator of the facility in 
372.25 	which the child is placed, if the child is not in a family foster home or group home;
372.26 	(6) a copy of the out-of-home placement plan required under section 260C.212, 
372.27 	subdivision 1;
372.28 	(7) a written summary of the proceedings of any administrative review required under 
372.29 	section 260C.203;
372.30 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
372.31 	residential treatment program as defined in section 260C.007, subdivision 26d; and
373.1 	(9) any other information the agency, parent or legal custodian, the child or the foster 
373.2 	parent, or other residential facility wants the court to consider.
373.3 	(b) In the case of a child in placement due to emotional disturbance mental illness, the 
373.4 	written report shall include as an attachment, the child's individual treatment plan developed 
373.5 	by the child's treatment professional, as provided in section 245.4871, subdivision 21, or 
373.6 	the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
373.7 	(e).
373.8 	(c) In the case of a child in placement due to developmental disability or a related 
373.9 	condition, the written report shall include as an attachment, the child's individual service 
373.10 	plan, as provided in section 256B.092, subdivision 1b; the child's individual program plan, 
373.11 	as provided in Minnesota Rules, part 9525.0004, subpart 11; the child's waiver care plan; 
373.12 	or the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
373.13 	(e).
373.14 	(d) The agency must inform the child, age 12 or older, the child's parent, and the foster 
373.15 	parent or foster care facility of the reporting and court review requirements of this section 
373.16 	and of their right to submit information to the court:
373.17 	(1) if the child or the child's parent or the foster care provider wants to send information 
373.18 	to the court, the agency shall advise those persons of the reporting date and the date by 
373.19 	which the agency must receive the information they want forwarded to the court so the 
373.20 	agency is timely able submit it with the agency's report required under this subdivision;
373.21 	(2) the agency must also inform the child, age 12 or older, the child's parent, and the 
373.22 	foster care facility that they have the right to be heard in person by the court and how to 
373.23 	exercise that right;
373.24 	(3) the agency must also inform the child, age 12 or older, the child's parent, and the 
373.25 	foster care provider that an in-court hearing will be held if requested by the child, the parent, 
373.26 	or the foster care provider; and
373.27 	(4) if, at the time required for the report under this section, a child, age 12 or older, 
373.28 	disagrees about the foster care facility or services provided under the out-of-home placement 
373.29 	plan required under section 260C.212, subdivision 1, the agency shall include information 
373.30 	regarding the child's disagreement, and to the extent possible, the basis for the child's 
373.31 	disagreement in the report required under this section.
374.1 	(e) After receiving the required report, the court has jurisdiction to make the following 
374.2 	determinations and must do so within ten days of receiving the forwarded report, whether 
374.3 	a hearing is requested:
374.4 	(1) whether the voluntary foster care arrangement is in the child's best interests;
374.5 	(2) whether the parent and agency are appropriately planning for the child; and
374.6 	(3) in the case of a child age 12 or older, who disagrees with the foster care facility or 
374.7 	services provided under the out-of-home placement plan, whether it is appropriate to appoint 
374.8 	counsel and a guardian ad litem for the child using standards and procedures under section 
374.9 	260C.163.
374.10 	(f) Unless requested by a parent, representative of the foster care facility, or the child, 
374.11 	no in-court hearing is required in order for the court to make findings and issue an order as 
374.12 	required in paragraph (e).
374.13 	(g) If the court finds the voluntary foster care arrangement is in the child's best interests 
374.14 	and that the agency and parent are appropriately planning for the child, the court shall issue 
374.15 	an order containing explicit, individualized findings to support its determination. The 
374.16 	individualized findings shall be based on the agency's written report and other materials 
374.17 	submitted to the court. The court may make this determination notwithstanding the child's 
374.18 	disagreement, if any, reported under paragraph (d).
374.19 	(h) The court shall send a copy of the order to the county attorney, the agency, parent, 
374.20 	child, age 12 or older, and the foster parent or foster care facility.
374.21 	(i) The court shall also send the parent, the child, age 12 or older, the foster parent, or 
374.22 	representative of the foster care facility notice of the permanency review hearing required 
374.23 	under section 260D.07, paragraph (e).
374.24 	(j) If the court finds continuing the voluntary foster care arrangement is not in the child's 
374.25 	best interests or that the agency or the parent are not appropriately planning for the child, 
374.26 	the court shall notify the agency, the parent, the foster parent or foster care facility, the child, 
374.27 	age 12 or older, and the county attorney of the court's determinations and the basis for the 
374.28 	court's determinations. In this case, the court shall set the matter for hearing and appoint a 
374.29 	guardian ad litem for the child under section 260C.163, subdivision 5.

375.1 	Sec. 86. Minnesota Statutes 2024, section 260D.07, is amended to read:
375.2 	260D.07 REQUIRED PERMANENCY REVIEW HEARING.
375.3 	(a) When the court has found that the voluntary arrangement is in the child's best interests 
375.4 	and that the agency and parent are appropriately planning for the child pursuant to the report 
375.5 	submitted under section 260D.06, and the child continues in voluntary foster care as defined 
375.6 	in section 260D.02, subdivision 10, for 13 months from the date of the voluntary foster care 
375.7 	agreement, or has been in placement for 15 of the last 22 months, the agency must:
375.8 	(1) terminate the voluntary foster care agreement and return the child home; or
375.9 	(2) determine whether there are compelling reasons to continue the voluntary foster care 
375.10 	arrangement and, if the agency determines there are compelling reasons, seek judicial 
375.11 	approval of its determination; or
375.12 	(3) file a petition for the termination of parental rights.
375.13 	(b) When the agency is asking for the court's approval of its determination that there are 
375.14 	compelling reasons to continue the child in the voluntary foster care arrangement, the agency 
375.15 	shall file a "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
375.16 	for Treatment" and ask the court to proceed under this section.
375.17 	(c) The "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
375.18 	for Treatment" shall be drafted or approved by the county attorney and be under oath. The 
375.19 	petition shall include:
375.20 	(1) the date of the voluntary placement agreement;
375.21 	(2) whether the petition is due to the child's developmental disability or emotional 
375.22 	disturbance mental illness;
375.23 	(3) the plan for the ongoing care of the child and the parent's participation in the plan;
375.24 	(4) a description of the parent's visitation and contact with the child;
375.25 	(5) the date of the court finding that the foster care placement was in the best interests 
375.26 	of the child, if required under section 260D.06, or the date the agency filed the motion under 
375.27 	section 260D.09, paragraph (b);
375.28 	(6) the agency's reasonable efforts to finalize the permanent plan for the child, including 
375.29 	returning the child to the care of the child's family;
375.30 	(7) a citation to this chapter as the basis for the petition; and
376.1 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
376.2 	residential treatment program as defined in section 260C.007, subdivision 26d.
376.3 	(d) An updated copy of the out-of-home placement plan required under section 260C.212, 
376.4 	subdivision 1, shall be filed with the petition.
376.5 	(e) The court shall set the date for the permanency review hearing no later than 14 months 
376.6 	after the child has been in placement or within 30 days of the petition filing date when the 
376.7 	child has been in placement 15 of the last 22 months. The court shall serve the petition 
376.8 	together with a notice of hearing by United States mail on the parent, the child age 12 or 
376.9 	older, the child's guardian ad litem, if one has been appointed, the agency, the county 
376.10 	attorney, and counsel for any party.
376.11 	(f) The court shall conduct the permanency review hearing on the petition no later than 
376.12 	14 months after the date of the voluntary placement agreement, within 30 days of the filing 
376.13 	of the petition when the child has been in placement 15 of the last 22 months, or within 15 
376.14 	days of a motion to terminate jurisdiction and to dismiss an order for foster care under 
376.15 	chapter 260C, as provided in section 260D.09, paragraph (b).
376.16 	(g) At the permanency review hearing, the court shall:
376.17 	(1) inquire of the parent if the parent has reviewed the "Petition for Permanency Review 
376.18 	Regarding a Child in Voluntary Foster Care for Treatment," whether the petition is accurate, 
376.19 	and whether the parent agrees to the continued voluntary foster care arrangement as being 
376.20 	in the child's best interests;
376.21 	(2) inquire of the parent if the parent is satisfied with the agency's reasonable efforts to 
376.22 	finalize the permanent plan for the child, including whether there are services available and 
376.23 	accessible to the parent that might allow the child to safely be with the child's family;
376.24 	(3) inquire of the parent if the parent consents to the court entering an order that:
376.25 	(i) approves the responsible agency's reasonable efforts to finalize the permanent plan 
376.26 	for the child, which includes ongoing future planning for the safety, health, and best interests 
376.27 	of the child; and
376.28 	(ii) approves the responsible agency's determination that there are compelling reasons 
376.29 	why the continued voluntary foster care arrangement is in the child's best interests; and
376.30 	(4) inquire of the child's guardian ad litem and any other party whether the guardian or 
376.31 	the party agrees that:
377.1 	(i) the court should approve the responsible agency's reasonable efforts to finalize the 
377.2 	permanent plan for the child, which includes ongoing and future planning for the safety, 
377.3 	health, and best interests of the child; and
377.4 	(ii) the court should approve of the responsible agency's determination that there are 
377.5 	compelling reasons why the continued voluntary foster care arrangement is in the child's 
377.6 	best interests.
377.7 	(h) At a permanency review hearing under this section, the court may take the following 
377.8 	actions based on the contents of the sworn petition and the consent of the parent:
377.9 	(1) approve the agency's compelling reasons that the voluntary foster care arrangement 
377.10 	is in the best interests of the child; and
377.11 	(2) find that the agency has made reasonable efforts to finalize the permanent plan for 
377.12 	the child.
377.13 	(i) A child, age 12 or older, may object to the agency's request that the court approve its 
377.14 	compelling reasons for the continued voluntary arrangement and may be heard on the reasons 
377.15 	for the objection. Notwithstanding the child's objection, the court may approve the agency's 
377.16 	compelling reasons and the voluntary arrangement.
377.17 	(j) If the court does not approve the voluntary arrangement after hearing from the child 
377.18 	or the child's guardian ad litem, the court shall dismiss the petition. In this case, either:
377.19 	(1) the child must be returned to the care of the parent; or
377.20 	(2) the agency must file a petition under section 260C.141, asking for appropriate relief 
377.21 	under sections 260C.301 or 260C.503 to 260C.521.
377.22 	(k) When the court approves the agency's compelling reasons for the child to continue 
377.23 	in voluntary foster care for treatment, and finds that the agency has made reasonable efforts 
377.24 	to finalize a permanent plan for the child, the court shall approve the continued voluntary 
377.25 	foster care arrangement, and continue the matter under the court's jurisdiction for the purposes 
377.26 	of reviewing the child's placement every 12 months while the child is in foster care.
377.27 	(l) A finding that the court approves the continued voluntary placement means the agency 
377.28 	has continued legal authority to place the child while a voluntary placement agreement 
377.29 	remains in effect. The parent or the agency may terminate a voluntary agreement as provided 
377.30 	in section 260D.10. Termination of a voluntary foster care placement of an Indian child is 
377.31 	governed by section 260.765, subdivision 4.

378.1 	Sec. 87. Minnesota Statutes 2024, section 260E.11, subdivision 3, is amended to read:
378.2 		Subd. 3.Report to medical examiner or coroner; notification to local agency and 
378.3 	law enforcement; report ombudsman. (a) A person mandated to report maltreatment who 
378.4 	knows or has reason to believe a child has died as a result of maltreatment shall report that 
378.5 	information to the appropriate medical examiner or coroner instead of the local welfare 
378.6 	agency, police department, or county sheriff.
378.7 	(b) The medical examiner or coroner shall notify the local welfare agency, police 
378.8 	department, or county sheriff in instances in which the medical examiner or coroner believes 
378.9 	that the child has died as a result of maltreatment. The medical examiner or coroner shall 
378.10 	complete an investigation as soon as feasible and report the findings to the police department 
378.11 	or county sheriff and the local welfare agency.
378.12 	(c) If the child was receiving services or treatment for mental illness, developmental 
378.13 	disability, or substance use disorder, or emotional disturbance from an agency, facility, or 
378.14 	program as defined in section 245.91, the medical examiner or coroner shall also notify and 
378.15 	report findings to the ombudsman established under sections 245.91 to 245.97.

378.16 	Sec. 88. Minnesota Statutes 2024, section 295.50, subdivision 9b, is amended to read:
378.17 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
378.18 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
378.19 	They include the following health care goods and services provided to a patient or consumer:
378.20 	(1) bed and board;
378.21 	(2) nursing services and other related services;
378.22 	(3) use of hospitals, surgical centers, or health care provider facilities;
378.23 	(4) medical social services;
378.24 	(5) drugs, biologicals, supplies, appliances, and equipment;
378.25 	(6) other diagnostic or therapeutic items or services;
378.26 	(7) medical or surgical services;
378.27 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
378.28 	and
378.29 	(9) emergency services.
378.30 	(b) "Patient services" does not include:
379.1 	(1) services provided to nursing homes licensed under chapter 144A;
379.2 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
379.3 	litigation, and employment, including reviews of medical records for those purposes;
379.4 	(3) services provided to and by community residential mental health facilities licensed 
379.5 	under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by 
379.6 	residential treatment programs for children with severe emotional disturbance a serious 
379.7 	mental illness licensed or certified under chapter 245A;
379.8 	(4) services provided under the following programs: day treatment services as defined 
379.9 	in section 245.462, subdivision 8; assertive community treatment as described in section 
379.10 	256B.0622; adult rehabilitative mental health services as described in section 256B.0623; 
379.11 	crisis response services as described in section 256B.0624; and children's therapeutic services 
379.12 	and supports as described in section 256B.0943;
379.13 	(5) services provided to and by community mental health centers as defined in section 
379.14 	245.62, subdivision 2;
379.15 	(6) services provided to and by assisted living programs and congregate housing 
379.16 	programs;
379.17 	(7) hospice care services;
379.18 	(8) home and community-based waivered services under chapter 256S and sections 
379.19 	256B.49 and 256B.501;
379.20 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
379.21 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
379.22 	(10) services provided to the following: supervised living facilities for persons with 
379.23 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
379.24 	housing with services establishments required to be registered under chapter 144D; board 
379.25 	and lodging establishments providing only custodial services that are licensed under chapter 
379.26 	157 and registered under section 157.17 to provide supportive services or health supervision 
379.27 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
379.28 	and habilitation services for adults with developmental disabilities as defined in section 
379.29 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
379.30 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
379.31 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
379.32 	chapter 144A.

380.1 	ARTICLE 11
380.2 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
380.3 	TREATMENT SERVICES RECODIFICATION

380.4 	Section 1. Minnesota Statutes 2024, section 256B.0622, subdivision 1, is amended to read:
380.5 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
380.6 	necessary, assertive community treatment when the services are provided by an entity 
380.7 	certified under and meeting the standards in this section.
380.8 	(b) Subject to federal approval, medical assistance covers medically necessary, intensive 
380.9 	residential treatment services when the services are provided by an entity licensed under 
380.10 	and meeting the standards in section 245I.23.
380.11 	(c) (b) The provider entity must make reasonable and good faith efforts to report 
380.12 	individual client outcomes to the commissioner, using instruments and protocols approved 
380.13 	by the commissioner.

380.14 	Sec. 2. Minnesota Statutes 2024, section 256B.0622, subdivision 8, is amended to read:
380.15 		Subd. 8.Medical assistance payment for assertive community treatment and 
380.16 	intensive residential treatment services. (a) Payment for intensive residential treatment 
380.17 	services and assertive community treatment in this section shall be based on one daily rate 
380.18 	per provider inclusive of the following services received by an eligible client in a given 
380.19 	calendar day: all rehabilitative services under this section, staff travel time to provide 
380.20 	rehabilitative services under this section, and nonresidential crisis stabilization services 
380.21 	under section 256B.0624.
380.22 	(b) Except as indicated in paragraph (d) (c), payment will not be made to more than one 
380.23 	entity for each client for services provided under this section on a given day. If services 
380.24 	under this section are provided by a team that includes staff from more than one entity, the 
380.25 	team must determine how to distribute the payment among the members.
380.26 	(c) Payment must not be made based solely on a court order to participate in intensive 
380.27 	residential treatment services. If a client has a court order to participate in the program or 
380.28 	to obtain assessment for treatment and follow treatment recommendations, payment under 
380.29 	this section must only be provided if the client is eligible for the service and the service is 
380.30 	determined to be medically necessary.
380.31 	(d) (c) The commissioner shall determine one rate for each provider that will bill medical 
380.32 	assistance for residential services under this section and one rate for each assertive community 
380.33 	treatment provider under this section. If a single entity provides both services intensive 
381.1 	residential treatment services under section 256B.0632 and assertive community treatment 
381.2 	under this section, one rate is established for the entity's intensive residential treatment
381.3 	services under section 256B.0632 and another rate for the entity's nonresidential assertive 
381.4 	community treatment services under this section. A provider is not eligible for payment 
381.5 	under this section without authorization from the commissioner. The commissioner shall 
381.6 	develop rates using the following criteria:
381.7 	(1) the provider's cost for services shall include direct services costs, other program 
381.8 	costs, and other costs determined as follows:
381.9 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
381.10 	payroll taxes, and training of direct service staff and service-related transportation;
381.11 	(ii) other program costs not included in item (i) must be determined as a specified 
381.12 	percentage of the direct services costs as determined by item (i). The percentage used shall 
381.13 	be determined by the commissioner based upon the average of percentages that represent 
381.14 	the relationship of other program costs to direct services costs among the entities that provide 
381.15 	similar services;
381.16 	(iii) physical plant costs calculated based on the percentage of space within the program 
381.17 	that is entirely devoted to treatment and programming. This does not include administrative 
381.18 	or residential space;
381.19 	(iv) assertive community treatment physical plant costs must be reimbursed as part of 
381.20 	the costs described in item (ii); and
381.21 	(v) subject to federal approval, up to an additional five percent of the total rate may be 
381.22 	added to the program rate as a quality incentive based upon the entity meeting performance 
381.23 	criteria specified by the commissioner;
381.24 	(2) actual cost is costs are defined as costs which are allowable, allocable, and reasonable, 
381.25 	and consistent with federal reimbursement requirements under Code of Federal Regulations, 
381.26 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
381.27 	Budget Circular Number A-122, relating to nonprofit entities;
381.28 	(3) the number of service units;
381.29 	(4) the degree to which clients will receive services other than services under this section
381.30 	or section 256B.0632; and
381.31 	(5) the costs of other services that will be separately reimbursed.
382.1 	(e) (d) The rate for intensive residential treatment services and assertive community 
382.2 	treatment must exclude the medical assistance room and board rate, as defined in section 
382.3 	256B.056, subdivision 5d, and services not covered under this section, such as partial 
382.4 	hospitalization, home care, and inpatient services.
382.5 	(f) Physician services that are not separately billed may be included in the rate to the 
382.6 	extent that a psychiatrist, or other health care professional providing physician services 
382.7 	within their scope of practice, is a member of the intensive residential treatment services 
382.8 	treatment team. Physician services, whether billed separately or included in the rate, may 
382.9 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
382.10 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
382.11 	is used to provide intensive residential treatment services.
382.12 	(g) (e) When services under this section are provided by an assertive community treatment 
382.13 	provider, case management functions must be an integral part of the team.
382.14 	(h) (f) The rate for a provider must not exceed the rate charged by that provider for the 
382.15 	same service to other payors.
382.16 	(i) (g) The rates for existing programs must be established prospectively based upon the 
382.17 	expenditures and utilization over a prior 12-month period using the criteria established in 
382.18 	paragraph (d) (c). The rates for new programs must be established based upon estimated 
382.19 	expenditures and estimated utilization using the criteria established in paragraph (d) (c).
382.20 	(j) (h) Effective for the rate years beginning on and after January 1, 2024, rates for 
382.21 	assertive community treatment, adult residential crisis stabilization services, and intensive 
382.22 	residential treatment services must be annually adjusted for inflation using the Centers for 
382.23 	Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter 
382.24 	of the calendar year before the rate year. The inflation adjustment must be based on the 
382.25 	12-month period from the midpoint of the previous rate year to the midpoint of the rate year 
382.26 	for which the rate is being determined. This paragraph expires upon federal approval.
382.27 	(i) Effective upon the expiration of paragraph (h), and effective for the rate years 
382.28 	beginning on and after January 1, 2024, rates for assertive community treatment services 
382.29 	must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
382.30 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
382.31 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
382.32 	of the previous rate year to the midpoint of the rate year for which the rate is being 
382.33 	determined.
383.1 	(k) (j) Entities who discontinue providing services must be subject to a settle-up process 
383.2 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
383.3 	event that the entity was paid more than the entity's actual costs plus any applicable 
383.4 	performance-related funding due the provider, the excess payment must be reimbursed to 
383.5 	the department. If a provider's revenue is less than actual allowed costs due to lower 
383.6 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
383.7 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
383.8 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
383.9 	of greater than five percent.
383.10 	(l) (k) A provider may request of the commissioner a review of any rate-setting decision 
383.11 	made under this subdivision.

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

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

383.21 	Sec. 5. [256B.0632] INTENSIVE RESIDENTIAL TREATMENT SERVICES.
383.22 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
383.23 	necessary, intensive residential treatment services when the services are provided by an 
383.24 	entity licensed under and meeting the standards in section 245I.23.
383.25 	(b) The provider entity must make reasonable and good faith efforts to report individual 
383.26 	client outcomes to the commissioner, using instruments and protocols approved by the 
383.27 	commissioner.
383.28 		Subd. 2.Provider entity licensure and contract requirements for intensive residential 
383.29 	treatment services. (a) The commissioner shall develop procedures for counties and 
383.30 	providers to submit other documentation as needed to allow the commissioner to determine 
383.31 	whether the standards in this section are met.
384.1 	(b) A provider entity must specify in the provider entity's application what geographic 
384.2 	area and populations will be served by the proposed program. A provider entity must 
384.3 	document that the capacity or program specialties of existing programs are not sufficient 
384.4 	to meet the service needs of the target population. A provider entity must submit evidence 
384.5 	of ongoing relationships with other providers and levels of care to facilitate referrals to and 
384.6 	from the proposed program.
384.7 	(c) A provider entity must submit documentation that the provider entity requested a 
384.8 	statement of need from each county board and Tribal authority that serves as a local mental 
384.9 	health authority in the proposed service area. The statement of need must specify if the local 
384.10 	mental health authority supports or does not support the need for the proposed program and 
384.11 	the basis for this determination. If a local mental health authority does not respond within 
384.12 	60 days of the receipt of the request, the commissioner shall determine the need for the 
384.13 	program based on the documentation submitted by the provider entity.
384.14 		Subd. 3.Medical assistance payment for intensive residential treatment services. (a) 
384.15 	Payment for intensive residential treatment services in this section shall be based on one 
384.16 	daily rate per provider inclusive of the following services received by an eligible client in 
384.17 	a given calendar day: all rehabilitative services under this section, staff travel time to provide 
384.18 	rehabilitative services under this section, and nonresidential crisis stabilization services 
384.19 	under section 256B.0624.
384.20 	(b) Except as indicated in paragraph (d), payment will not be made to more than one 
384.21 	entity for each client for services provided under this section on a given day. If services 
384.22 	under this section are provided by a team that includes staff from more than one entity, the 
384.23 	team must determine how to distribute the payment among the members.
384.24 	(c) Payment must not be made based solely on a court order to participate in intensive 
384.25 	residential treatment services. If a client has a court order to participate in the program or 
384.26 	to obtain assessment for treatment and follow treatment recommendations, payment under 
384.27 	this section must only be provided if the client is eligible for the service and the service is 
384.28 	determined to be medically necessary.
384.29 	(d) The commissioner shall determine one rate for each provider that will bill medical 
384.30 	assistance for intensive residential treatment services under this section. If a single entity 
384.31 	provides both intensive residential treatment services under this section and assertive 
384.32 	community treatment under section 256B.0622, one rate is established for the entity's 
384.33 	intensive residential treatment services under this section and another rate for the entity's 
384.34 	assertive community treatment services under section 256B.0622. A provider is not eligible 
385.1 	for payment under this section without authorization from the commissioner. The 
385.2 	commissioner shall develop rates using the following criteria:
385.3 	(1) the provider's cost for services shall include direct services costs, other program 
385.4 	costs, and other costs determined as follows:
385.5 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
385.6 	payroll taxes, and training of direct service staff and service-related transportation;
385.7 	(ii) other program costs not included in item (i) must be determined as a specified 
385.8 	percentage of the direct services costs as determined by item (i). The percentage used shall 
385.9 	be determined by the commissioner based upon the average of percentages that represent 
385.10 	the relationship of other program costs to direct services costs among the entities that provide 
385.11 	similar services;
385.12 	(iii) physical plant costs calculated based on the percentage of space within the program 
385.13 	that is entirely devoted to treatment and programming. This does not include administrative 
385.14 	or residential space; and
385.15 	(iv) subject to federal approval, up to an additional five percent of the total rate may be 
385.16 	added to the program rate as a quality incentive based upon the entity meeting performance 
385.17 	criteria specified by the commissioner;
385.18 	(2) actual costs are defined as costs which are allowable, allocable, and reasonable, and 
385.19 	consistent with federal reimbursement requirements under Code of Federal Regulations, 
385.20 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
385.21 	Budget Circular Number A-122, relating to nonprofit entities;
385.22 	(3) the number of services units;
385.23 	(4) the degree to which clients will receive services other than services under this section 
385.24 	or section 256B.0622; and
385.25 	(5) the costs of other services that will be separately reimbursed.
385.26 	(e) The rate for intensive residential treatment services must exclude the medical 
385.27 	assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services 
385.28 	not covered under this section, such as partial hospitalization, home care, and inpatient 
385.29 	services.
385.30 	(f) Physician services that are not separately billed may be included in the rate to the 
385.31 	extent that a psychiatrist, or other health care professional providing physician services 
385.32 	within their scope of practice, is a member of the intensive residential treatment services 
386.1 	treatment team. Physician services, whether billed separately or included in the rate, may 
386.2 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
386.3 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
386.4 	is used to provide intensive residential treatment services.
386.5 	(g) The rate for a provider must not exceed the rate charged by that provider for the 
386.6 	same service to other payors.
386.7 	(h) The rates for existing programs must be established prospectively based upon the 
386.8 	expenditures and utilization over a prior 12-month period using the criteria established in 
386.9 	paragraph (d). The rates for new programs must be established based upon estimated 
386.10 	expenditures and estimated utilization using the criteria established in paragraph (d).
386.11 	(i) Effective upon the expiration of section 256B.0622, subdivision 8, paragraph (h), 
386.12 	and effective for rate years beginning on and after January 1, 2024, rates for intensive 
386.13 	residential treatment services and adult residential crisis stabilization services must be 
386.14 	annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
386.15 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
386.16 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
386.17 	of the previous rate year to the midpoint of the rate year for which the rate is being 
386.18 	determined.
386.19 	(j) Entities who discontinue providing services must be subject to a settle-up process 
386.20 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
386.21 	event that the entity was paid more than the entity's actual costs plus any applicable 
386.22 	performance-related funding due the provider, the excess payment must be reimbursed to 
386.23 	the department. If a provider's revenue is less than actual allowed costs due to lower 
386.24 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
386.25 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
386.26 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
386.27 	of greater than five percent.
386.28 	(k) A provider may request of the commissioner a review of any rate-setting decision 
386.29 	made under this subdivision.
386.30 		Subd. 4.Provider enrollment; rate setting for county-operated entities. Counties 
386.31 	that employ their own staff to provide services under this section shall apply directly to the 
386.32 	commissioner for enrollment and rate setting. In this case, a county contract is not required.
387.1 		Subd. 5.Provider enrollment; rate setting for specialized program. A county contract 
387.2 	is not required for a provider proposing to serve a subpopulation of eligible clients under 
387.3 	the following circumstances:
387.4 	(1) the provider demonstrates that the subpopulation to be served requires a specialized 
387.5 	program which is not available from county-approved entities; and
387.6 	(2) the subpopulation to be served is of such a low incidence that it is not feasible to 
387.7 	develop a program serving a single county or regional group of counties.
387.8 		Subd. 6.Sustainability grants. The commissioner may disburse grant funds directly to 
387.9 	intensive residential treatment services providers to maintain access to these services.
387.10 		Subd. 7.Start-up grants. The commissioner may, within available appropriations, 
387.11 	disburse grant funding to counties, Indian Tribes, or mental health service providers to 
387.12 	establish additional intensive residential treatment services and residential crisis services.

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

387.15 	ARTICLE 12
387.16 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
387.17 	TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES

387.18 	Section 1. Minnesota Statutes 2024, section 148F.11, subdivision 1, is amended to read:
387.19 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members of 
387.20 	other professions or occupations from performing functions for which they are qualified or 
387.21 	licensed. This exception includes, but is not limited to: licensed physicians; registered nurses; 
387.22 	licensed practical nurses; licensed psychologists and licensed psychological practitioners; 
387.23 	members of the clergy provided such services are provided within the scope of regular 
387.24 	ministries; American Indian medicine men and women; licensed attorneys; probation officers; 
387.25 	licensed marriage and family therapists; licensed social workers; social workers employed 
387.26 	by city, county, or state agencies; licensed professional counselors; licensed professional 
387.27 	clinical counselors; licensed school counselors; registered occupational therapists or 
387.28 	occupational therapy assistants; Upper Midwest Indian Council on Addictive Disorders 
387.29 	(UMICAD) certified counselors when providing services to Native American people; city, 
387.30 	county, or state employees when providing assessments or case management under Minnesota 
387.31 	Rules, chapter 9530; and staff persons providing co-occurring substance use disorder 
387.32 	treatment in adult mental health rehabilitative programs certified or licensed by the 
388.1 	Department of Human Services under section 245I.23, 256B.0622, or256B.0623, or 
388.2 	256B.0632.
388.3 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
388.4 	licensed by the Department of Human Services from discharging their duties as provided 
388.5 	in Minnesota Rules, chapter 9530.
388.6 	(c) Any person who is exempt from licensure under this section must not use a title 
388.7 	incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
388.8 	counselor" or otherwise hold himself or herself out to the public by any title or description 
388.9 	stating or implying that he or she is engaged in the practice of alcohol and drug counseling, 
388.10 	or that he or she is licensed to engage in the practice of alcohol and drug counseling, unless 
388.11 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the practice 
388.12 	of alcohol and drug counseling are not exempt from the board's jurisdiction solely by the 
388.13 	use of one of the titles in paragraph (a).

388.14 	Sec. 2. Minnesota Statutes 2024, section 245.4662, subdivision 1, is amended to read:
388.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
388.16 	the meanings given them.
388.17 	(b) "Community partnership" means a project involving the collaboration of two or more 
388.18 	eligible applicants.
388.19 	(c) "Eligible applicant" means an eligible county, Indian tribe, mental health service 
388.20 	provider, hospital, or community partnership. Eligible applicant does not include a 
388.21 	state-operated direct care and treatment facility or program under chapters 246 and 246C.
388.22 	(d) "Intensive residential treatment services" has the meaning given in section 256B.0622
388.23 	256B.0632.
388.24 	(e) "Metropolitan area" means the seven-county metropolitan area, as defined in section 
388.25 	473.121, subdivision 2.

388.26 	Sec. 3. Minnesota Statutes 2024, section 245.4906, subdivision 2, is amended to read:
388.27 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
388.28 	employs a mental health certified peer specialist qualified under section 245I.04, subdivision 
388.29 	10, and that provides services to individuals receiving assertive community treatment or 
388.30 	intensive residential treatment services under section 256B.0622, intensive residential 
388.31 	treatment services under section 256B.0632, adult rehabilitative mental health services 
388.32 	under section 256B.0623, or crisis response services under section 256B.0624.

389.1 	Sec. 4. Minnesota Statutes 2024, section 254B.04, subdivision 1a, is amended to read:
389.2 		Subd. 1a.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
389.3 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
389.4 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
389.5 	fund services. State money appropriated for this paragraph must be placed in a separate 
389.6 	account established for this purpose.
389.7 	(b) Persons with dependent children who are determined to be in need of substance use 
389.8 	disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in 
389.9 	need of chemical dependency treatment pursuant to a case plan under section 260C.201, 
389.10 	subdivision 6, or 260C.212, shall be assisted by the local agency to access needed treatment 
389.11 	services. Treatment services must be appropriate for the individual or family, which may 
389.12 	include long-term care treatment or treatment in a facility that allows the dependent children 
389.13 	to stay in the treatment facility. The county shall pay for out-of-home placement costs, if 
389.14 	applicable.
389.15 	(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or 
389.16 	MinnesotaCare is eligible for room and board services under section 254B.05, subdivision 
389.17 	5, paragraph (b), clause (9).
389.18 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
389.19 	the behavioral health fund when the client:
389.20 	(1) is eligible for MFIP as determined under chapter 142G;
389.21 	(2) is eligible for medical assistance as determined under Minnesota Rules, parts 
389.22 	9505.0010 to 9505.0150;
389.23 	(3) is eligible for general assistance, general assistance medical care, or work readiness 
389.24 	as determined under Minnesota Rules, parts 9500.1200 to 9500.1318; or
389.25 	(4) has income that is within current household size and income guidelines for entitled 
389.26 	persons, as defined in this subdivision and subdivision 7.
389.27 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
389.28 	a third-party payment source are eligible for the behavioral health fund if the third-party 
389.29 	payment source pays less than 100 percent of the cost of treatment services for eligible 
389.30 	clients.
389.31 	(f) A client is ineligible to have substance use disorder treatment services paid for with 
389.32 	behavioral health fund money if the client:
390.1 	(1) has an income that exceeds current household size and income guidelines for entitled 
390.2 	persons as defined in this subdivision and subdivision 7; or
390.3 	(2) has an available third-party payment source that will pay the total cost of the client's 
390.4 	treatment.
390.5 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
390.6 	is eligible for continued treatment service that is paid for by the behavioral health fund until 
390.7 	the treatment episode is completed or the client is re-enrolled in a state prepaid health plan 
390.8 	if the client:
390.9 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
390.10 	medical care; or
390.11 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
390.12 	agency under section 254B.04.
390.13 	(h) When a county commits a client under chapter 253B to a regional treatment center 
390.14 	for substance use disorder services and the client is ineligible for the behavioral health fund, 
390.15 	the county is responsible for the payment to the regional treatment center according to 
390.16 	section 254B.05, subdivision 4.
390.17 	(i) Persons enrolled in MinnesotaCare are eligible for room and board services when 
390.18 	provided through intensive residential treatment services and residential crisis services under 
390.19 	section 256B.0622 256B.0632.

390.20 	Sec. 5. Minnesota Statutes 2024, section 254B.05, subdivision 1a, is amended to read:
390.21 		Subd. 1a.Room and board provider requirements. (a) Vendors of room and board 
390.22 	are eligible for behavioral health fund payment if the vendor:
390.23 	(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals 
390.24 	while residing in the facility and provide consequences for infractions of those rules;
390.25 	(2) is determined to meet applicable health and safety requirements;
390.26 	(3) is not a jail or prison;
390.27 	(4) is not concurrently receiving funds under chapter 256I for the recipient;
390.28 	(5) admits individuals who are 18 years of age or older;
390.29 	(6) is registered as a board and lodging or lodging establishment according to section 
390.30 	157.17;
390.31 	(7) has awake staff on site whenever a client is present;
391.1 	(8) has staff who are at least 18 years of age and meet the requirements of section 
391.2 	245G.11, subdivision 1, paragraph (b);
391.3 	(9) has emergency behavioral procedures that meet the requirements of section 245G.16;
391.4 	(10) meets the requirements of section 245G.08, subdivision 5, if administering 
391.5 	medications to clients;
391.6 	(11) meets the abuse prevention requirements of section 245A.65, including a policy on 
391.7 	fraternization and the mandatory reporting requirements of section 626.557;
391.8 	(12) documents coordination with the treatment provider to ensure compliance with 
391.9 	section 254B.03, subdivision 2;
391.10 	(13) protects client funds and ensures freedom from exploitation by meeting the 
391.11 	provisions of section 245A.04, subdivision 13;
391.12 	(14) has a grievance procedure that meets the requirements of section 245G.15, 
391.13 	subdivision 2; and
391.14 	(15) has sleeping and bathroom facilities for men and women separated by a door that 
391.15 	is locked, has an alarm, or is supervised by awake staff.
391.16 	(b) Programs licensed according to Minnesota Rules, chapter 2960, are exempt from 
391.17 	paragraph (a), clauses (5) to (15).
391.18 	(c) Programs providing children's mental health crisis admissions and stabilization under 
391.19 	section 245.4882, subdivision 6, are eligible vendors of room and board.
391.20 	(d) Programs providing children's residential services under section 245.4882, except 
391.21 	services for individuals who have a placement under chapter 260C or 260D, are eligible 
391.22 	vendors of room and board.
391.23 	(e) Licensed programs providing intensive residential treatment services or residential 
391.24 	crisis stabilization services pursuant to section 256B.0622 or256B.0624or 256B.0632 are 
391.25 	eligible vendors of room and board and are exempt from paragraph (a), clauses (6) to (15).
391.26 	(f) A vendor that is not licensed as a residential treatment program must have a policy 
391.27 	to address staffing coverage when a client may unexpectedly need to be present at the room 
391.28 	and board site.

391.29 	Sec. 6. Minnesota Statutes 2024, section 256.478, subdivision 2, is amended to read:
391.30 		Subd. 2.Eligibility. An individual is eligible for the transition to community initiative 
391.31 	if the individual can demonstrate that current services are not capable of meeting individual 
392.1 	treatment and service needs that can be met in the community with support, and the individual 
392.2 	meets at least one of the following criteria:
392.3 	(1) the person meets the criteria under section 256B.092, subdivision 13, or 256B.49, 
392.4 	subdivision 24;
392.5 	(2) the person has met treatment objectives and no longer requires a hospital-level care, 
392.6 	residential-level care, or a secure treatment setting, but the person's discharge from the 
392.7 	Anoka Metro Regional Treatment Center, the Minnesota Forensic Mental Health Program, 
392.8 	the Child and Adolescent Behavioral Health Hospital program, a psychiatric residential 
392.9 	treatment facility under section 256B.0941, intensive residential treatment services under 
392.10 	section 256B.0622 256B.0632, children's residential services under section 245.4882, 
392.11 	juvenile detention facility, county supervised building, or a hospital would be substantially 
392.12 	delayed without additional resources available through the transitions to community initiative;
392.13 	(3) the person (i) is receiving customized living services reimbursed under section 
392.14 	256B.4914, 24-hour customized living services reimbursed under section 256B.4914, or 
392.15 	community residential services reimbursed under section 256B.4914; (ii) expresses a desire 
392.16 	to move; and (iii) has received approval from the commissioner; or
392.17 	(4) the person can demonstrate that the person's needs are beyond the scope of current 
392.18 	service designs and grant funding can support the inclusion of additional supports for the 
392.19 	person to access appropriate treatment and services in the least restrictive environment.

392.20 	Sec. 7. Minnesota Statutes 2024, section 256B.0615, subdivision 1, is amended to read:
392.21 		Subdivision 1.Scope. Medical assistance covers mental health certified peer specialist 
392.22 	services, as established in subdivision 2, if provided to recipients who are eligible for services 
392.23 	under sections 256B.0622, 256B.0623, and256B.0624, and 256B.0632and are provided 
392.24 	by a mental health certified peer specialist who has completed the training under subdivision 
392.25 	5 and is qualified according to section 245I.04, subdivision 10.

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

393.1 	Sec. 9. Minnesota Statutes 2024, section 256B.82, is amended to read:
393.2 	256B.82 PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE 
393.3 	SERVICES.
393.4 	Medical assistance and MinnesotaCare prepaid health plans may include coverage for 
393.5 	adult mental health rehabilitative services under section 256B.0623, intensive rehabilitative 
393.6 	services under section 256B.0622 256B.0632, and adult mental health crisis response services 
393.7 	under section 256B.0624, beginning January 1, 2005.
393.8 	By January 15, 2004, the commissioner shall report to the legislature how these services 
393.9 	should be included in prepaid plans. The commissioner shall consult with mental health 
393.10 	advocates, health plans, and counties in developing this report. The report recommendations 
393.11 	must include a plan to ensure coordination of these services between health plans and 
393.12 	counties, assure recipient access to essential community providers, and monitor the health 
393.13 	plans' delivery of services through utilization review and quality standards.

393.14 	Sec. 10. Minnesota Statutes 2024, section 256D.44, subdivision 5, is amended to read:
393.15 		Subd. 5.Special needs. (a) In addition to the state standards of assistance established 
393.16 	in subdivisions 1 to 4, payments are allowed for the following special needs of recipients 
393.17 	of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
393.18 	center, or a setting authorized to receive housing support payments under chapter 256I.
393.19 	(b) The county agency shall pay a monthly allowance for medically prescribed diets if 
393.20 	the cost of those additional dietary needs cannot be met through some other maintenance 
393.21 	benefit. The need for special diets or dietary items must be prescribed by a licensed physician, 
393.22 	advanced practice registered nurse, or physician assistant. Costs for special diets shall be 
393.23 	determined as percentages of the allotment for a one-person household under the thrifty 
393.24 	food plan as defined by the United States Department of Agriculture. The types of diets and 
393.25 	the percentages of the thrifty food plan that are covered are as follows:
393.26 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
393.27 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of 
393.28 	thrifty food plan;
393.29 	(3) controlled protein diet, less than 40 grams and requires special products, 125 percent 
393.30 	of thrifty food plan;
393.31 	(4) low cholesterol diet, 25 percent of thrifty food plan;
393.32 	(5) high residue diet, 20 percent of thrifty food plan;
394.1 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
394.2 	(7) gluten-free diet, 25 percent of thrifty food plan;
394.3 	(8) lactose-free diet, 25 percent of thrifty food plan;
394.4 	(9) antidumping diet, 15 percent of thrifty food plan;
394.5 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
394.6 	(11) ketogenic diet, 25 percent of thrifty food plan.
394.7 	(c) Payment for nonrecurring special needs must be allowed for necessary home repairs 
394.8 	or necessary repairs or replacement of household furniture and appliances using the payment 
394.9 	standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as 
394.10 	other funding sources are not available.
394.11 	(d) A fee for guardian or conservator service is allowed at a reasonable rate negotiated 
394.12 	by the county or approved by the court. This rate shall not exceed five percent of the 
394.13 	assistance unit's gross monthly income up to a maximum of $100 per month. If the guardian 
394.14 	or conservator is a member of the county agency staff, no fee is allowed.
394.15 	(e) The county agency shall continue to pay a monthly allowance of $68 for restaurant 
394.16 	meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and 
394.17 	who eats two or more meals in a restaurant daily. The allowance must continue until the 
394.18 	person has not received Minnesota supplemental aid for one full calendar month or until 
394.19 	the person's living arrangement changes and the person no longer meets the criteria for the 
394.20 	restaurant meal allowance, whichever occurs first.
394.21 	(f) A fee equal to the maximum monthly amount allowed by the Social Security 
394.22 	Administration is allowed for representative payee services provided by an agency that 
394.23 	meets the requirements under SSI regulations to charge a fee for representative payee 
394.24 	services. This special need is available to all recipients of Minnesota supplemental aid 
394.25 	regardless of their living arrangement.
394.26 	(g)(1) Notwithstanding the language in this subdivision, an amount equal to one-half of 
394.27 	the maximum federal Supplemental Security Income payment amount for a single individual 
394.28 	which is in effect on the first day of July of each year will be added to the standards of 
394.29 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as 
394.30 	in need of housing assistance and are:
395.1 	(i) relocating from an institution, a setting authorized to receive housing support under 
395.2 	chapter 256I, or an adult mental health residential treatment program under section 256B.0622
395.3 	256B.0632;
395.4 	(ii) eligible for personal care assistance under section 256B.0659; or
395.5 	(iii) home and community-based waiver recipients living in their own home or rented 
395.6 	or leased apartment.
395.7 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter 
395.8 	needy benefit under this paragraph is considered a household of one. An eligible individual 
395.9 	who receives this benefit prior to age 65 may continue to receive the benefit after the age 
395.10 	of 65.
395.11 	(3) "Housing assistance" means that the assistance unit incurs monthly shelter costs that 
395.12 	exceed 40 percent of the assistance unit's gross income before the application of this special 
395.13 	needs standard. "Gross income" for the purposes of this section is the applicant's or recipient's 
395.14 	income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 
395.15 	3, paragraph (a) or (b), whichever is greater. A recipient of a federal or state housing subsidy, 
395.16 	that limits shelter costs to a percentage of gross income, shall not be considered in need of 
395.17 	housing assistance for purposes of this paragraph.

395.18 	ARTICLE 13
395.19 	BACKGROUND STUDIES

395.20 	Section 1. Minnesota Statutes 2024, section 245C.13, subdivision 2, is amended to read:
395.21 		Subd. 2.Activities pending completion of background study. The subject of a 
395.22 	background study may not perform any activity requiring a background study under 
395.23 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
395.24 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
395.25 	(1) a notice of the study results under section 245C.17 stating that:
395.26 	(i) the individual is not disqualified; or
395.27 	(ii) more time is needed to complete the study but the individual is not required to be 
395.28 	removed from direct contact or access to people receiving services prior to completion of 
395.29 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
395.30 	that more time is needed to complete the study must also indicate whether the individual is 
395.31 	required to be under continuous direct supervision prior to completion of the background 
395.32 	study. When more time is necessary to complete a background study of an individual 
396.1 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
396.2 	the individual may not work in the facility or setting regardless of whether or not the 
396.3 	individual is supervised;
396.4 	(2) a notice that a disqualification has been set aside under section 245C.23; or
396.5 	(3) a notice that a variance has been granted related to the individual under section 
396.6 	245C.30.
396.7 	(b) For a background study affiliated with a licensed child care center or certified 
396.8 	license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), 
396.9 	must not be issued until the commissioner receives a qualifying result for the individual for 
396.10 	the fingerprint-based national criminal history record check or the fingerprint-based criminal 
396.11 	history information from the Bureau of Criminal Apprehension. The notice must require 
396.12 	the individual to be under continuous direct supervision prior to completion of the remainder 
396.13 	of the background study except as permitted in subdivision 3.
396.14 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
396.15 	(1) being issued a license;
396.16 	(2) living in the household where the licensed program will be provided;
396.17 	(3) providing direct contact services to persons served by a program unless the subject 
396.18 	is under continuous direct supervision;
396.19 	(4) having access to persons receiving services if the background study was completed 
396.20 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
396.21 	(5), or (6), unless the subject is under continuous direct supervision;
396.22 	(5) for licensed child care centers and certified license-exempt child care centers, 
396.23 	providing direct contact services to persons served by the program;
396.24 	(6) for children's residential facilities or foster residence settings, working in the facility 
396.25 	or setting; or
396.26 	(7) for background studies affiliated with a personal care provider organization, except 
396.27 	as provided in section 245C.03, subdivision 3b, before a personal care assistant provides 
396.28 	services, the personal care assistance provider agency must initiate a background study of 
396.29 	the personal care assistant under this chapter and the personal care assistance provider 
396.30 	agency must have received a notice from the commissioner that the personal care assistant 
396.31 	is:
396.32 	(i) not disqualified under section 245C.14; or
397.1 	(ii) disqualified, but the personal care assistant has received a set aside of the 
397.2 	disqualification under section 245C.22.

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

397.4 	Sec. 2. Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision to 
397.5 	read:
397.6 		Subd. 4c.Two-year disqualification. An individual is disqualified under section 
397.7 	245C.14, subdivision 6, if less than two years has passed since a determination that the 
397.8 	individual violated section 142A.12, 245.095, or 256B.064.

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

397.10 	Sec. 3. Minnesota Statutes 2024, section 245C.14, is amended by adding a subdivision to 
397.11 	read:
397.12 		Subd. 6.Disqualification from owning, operating, or billing. The commissioner shall 
397.13 	disqualify an individual who is the subject of a background study from any position involving 
397.14 	ownership, management, or control of a program or billing activities if a background study 
397.15 	completed under this chapter shows a violation of section 142A.12, 245.095, or 256B.064.

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

397.17 	ARTICLE 14
397.18 	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY

397.19 	Section 1. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
397.20 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
397.21 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
397.22 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
397.23 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
397.24 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
397.25 	shall not be disclosed except:
397.26 	(1) pursuant to section 13.05;
397.27 	(2) pursuant to statute or valid court order;
397.28 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
397.29 	preparation of defense;
398.1 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
398.2 	state, or federal government, including a law enforcement officer or attorney in the 
398.3 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
398.4 	commissioner of human services or commissioner of children, youth, and families determines 
398.5 	that disclosure may compromise a Department of Human Services or Department of Children, 
398.6 	Youth, and Families ongoing investigation; or
398.7 	(5) to provide notices required or permitted by statute.
398.8 	The data referred to in this subdivision shall be classified as public data upon submission 
398.9 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
398.10 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
398.11 	(b) Notwithstanding any other provision in law, the commissioner of human services 
398.12 	shall provide all active and inactive investigative data, including the name of the reporter 
398.13 	of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for 
398.14 	mental health and developmental disabilities upon the request of the ombudsman.
398.15 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
398.16 	by the commissioner of human services of possible overpayments of public funds to a service 
398.17 	provider or recipient or the reduction or withholding of payments may be disclosed if the 
398.18 	commissioner determines that it will not compromise the investigation.

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

398.20 	Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
398.21 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
398.22 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
398.23 	individual, or associated entity in any program administered by the commissioner if the 
398.24 	commissioner determines:
398.25 	(1) there is a credible allegation of fraud for which an investigation is pending for a 
398.26 	program administered by a Minnesota state or federal agency.;
398.27 	(2) the individual, the entity, or an associated individual or entity was convicted of a 
398.28 	crime charged in state or federal court with an offense that involves fraud or theft against 
398.29 	a program administered by the commissioner or another Minnesota state or federal agency. 
398.30 	For purposes of this subdivision, "convicted" means a judgment of conviction has been 
398.31 	entered by a federal, state, or local court, regardless of whether an appeal from the judgment 
398.32 	is pending, and includes a stay of adjudication, a court-ordered diversion program, or a plea 
398.33 	of guilty or nolo contendere;
399.1 	(3) the provider is operating after a Minnesota state or federal agency orders the 
399.2 	suspension, revocation, or decertification of the provider's license;
399.3 	(4) the provider, vendor, associated individual, or associated entity, including those 
399.4 	receiving funds under any contract or registered program, has a background study 
399.5 	disqualification under chapter 245C that has not been set aside and for which no variance 
399.6 	has been issued, except for a disqualification under sections 245C.14, subdivision 5, and 
399.7 	245C.15, subdivision 4c; or
399.8 	(5) by a preponderance of the evidence that the provider, vendor, individual, associated 
399.9 	individual, or associated entity intentionally provided materially false information on the 
399.10 	provider's billing forms.
399.11 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
399.12 	that has been verified by the commissioner from any source, including but not limited to:
399.13 	(1) fraud hotline complaints;
399.14 	(2) claims data mining;
399.15 	(3) patterns identified through provider audits, civil false claims cases, and law 
399.16 	enforcement investigations; and
399.17 	(4) court filings and other legal documents, including but not limited to police reports, 
399.18 	complaints, indictments, informations, affidavits, declarations, and search warrants.
399.19 	(c) The commissioner must send notice of the withholding of payments within five days 
399.20 	of taking such action. The notice must:
399.21 	(1) state that payments are being withheld according to this subdivision;
399.22 	(2) set forth the general allegations related to the withholding action, except the notice 
399.23 	need not disclose specific information concerning an ongoing investigation;
399.24 	(3) state that the withholding is for a temporary period and cite the circumstances under 
399.25 	which the withholding will be terminated; and
399.26 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
399.27 	of the right to submit written evidence to contest the withholding action for consideration 
399.28 	by the commissioner.
399.29 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
399.30 	individual, associated individual, or associated entity has a right to request administrative 
399.31 	reconsideration. A request for administrative reconsideration must be made in writing, state 
399.32 	with specificity the reasons the payment withholding decision is in error, and include 
400.1 	documents to support the request. Within 60 days from receipt of the request, the 
400.2 	commissioner shall judiciously review allegations, facts, evidence available to the 
400.3 	commissioner, and information submitted by the provider, vendor, individual, associated 
400.4 	individual, or associated entity to determine whether the payment withholding should remain 
400.5 	in place.
400.6 	(e) The commissioner shall stop withholding payments if the commissioner determines 
400.7 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
400.8 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
400.9 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
400.10 	vendor, individual, associated individual, or associated entity.
400.11 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
400.12 	section 256.045 or chapter 14.

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

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

400.20 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
400.21 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
400.22 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
400.23 	application must be made on the forms and in the manner prescribed by the commissioner. 
400.24 	The commissioner shall provide the applicant with instruction in completing the application 
400.25 	and provide information about the rules and requirements of other state agencies that affect 
400.26 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
400.27 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
400.28 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
400.29 	this chapter that is owned by another license holder must apply for a license under this 
400.30 	chapter and comply with the application procedures in this section and section 245A.043.
400.31 	The commissioner shall act on the application within 90 working days after a complete 
400.32 	application and any required reports have been received from other state agencies or 
401.1 	departments, counties, municipalities, or other political subdivisions. The commissioner 
401.2 	shall not consider an application to be complete until the commissioner receives all of the 
401.3 	required information. If the applicant or a controlling individual is the subject of a pending 
401.4 	administrative, civil, or criminal investigation, the application is not complete until the 
401.5 	investigation has closed or the related legal proceedings are complete.
401.6 	When the commissioner receives an application for initial licensure that is incomplete 
401.7 	because the applicant failed to submit required documents or that is substantially deficient 
401.8 	because the documents submitted do not meet licensing requirements, the commissioner 
401.9 	shall provide the applicant written notice that the application is incomplete or substantially 
401.10 	deficient. In the written notice to the applicant the commissioner shall identify documents 
401.11 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
401.12 	that is substantially complete. An applicant's failure to submit a substantially complete 
401.13 	application after receiving notice from the commissioner is a basis for license denial under 
401.14 	section 245A.043.
401.15 	(b) An application for licensure must identify all controlling individuals as defined in 
401.16 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
401.17 	agent. The application must be signed by the authorized agent and must include the authorized 
401.18 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
401.19 	application for licensure, the authorized agent consents to electronic communication with 
401.20 	the commissioner throughout the application process. The authorized agent must be 
401.21 	authorized to accept service on behalf of all of the controlling individuals. A government 
401.22 	entity that holds multiple licenses under this chapter may designate one authorized agent 
401.23 	for all licenses issued under this chapter or may designate a different authorized agent for 
401.24 	each license. Service on the authorized agent is service on all of the controlling individuals. 
401.25 	It is not a defense to any action arising under this chapter that service was not made on each 
401.26 	controlling individual. The designation of a controlling individual as the authorized agent 
401.27 	under this paragraph does not affect the legal responsibility of any other controlling individual 
401.28 	under this chapter.
401.29 	(c) An applicant or license holder must have a policy that prohibits license holders, 
401.30 	employees, subcontractors, and volunteers, when directly responsible for persons served 
401.31 	by the program, from abusing prescription medication or being in any manner under the 
401.32 	influence of a chemical that impairs the individual's ability to provide services or care. The 
401.33 	license holder must train employees, subcontractors, and volunteers about the program's 
401.34 	drug and alcohol policy.
402.1 	(d) An applicant and license holder must have a program grievance procedure that permits 
402.2 	persons served by the program and their authorized representatives to bring a grievance to 
402.3 	the highest level of authority in the program.
402.4 	(e) The commissioner may limit communication during the application process to the 
402.5 	authorized agent or the controlling individuals identified on the license application and for 
402.6 	whom a background study was initiated under chapter 245C. Upon implementation of the 
402.7 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
402.8 	manner prescribed by the commissioner. The commissioner may require the applicant, 
402.9 	except for child foster care, to demonstrate competence in the applicable licensing 
402.10 	requirements by successfully completing a written examination. The commissioner may 
402.11 	develop a prescribed written examination format.
402.12 	(f) When an applicant is an individual, the applicant must provide:
402.13 	(1) the applicant's taxpayer identification numbers including the Social Security number 
402.14 	or Minnesota tax identification number, and federal employer identification number if the 
402.15 	applicant has employees;
402.16 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
402.17 	of state that includes the complete business name, if any;
402.18 	(3) if doing business under a different name, the doing business as (DBA) name, as 
402.19 	registered with the secretary of state;
402.20 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
402.21 	Minnesota Provider Identifier (UMPI) number; and
402.22 	(5) at the request of the commissioner, the notarized signature of the applicant or 
402.23 	authorized agent.
402.24 	(g) When an applicant is an organization, the applicant must provide:
402.25 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
402.26 	identification number and federal employer identification number;
402.27 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
402.28 	of state that includes the complete business name, and if doing business under a different 
402.29 	name, the doing business as (DBA) name, as registered with the secretary of state;
402.30 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
402.31 	individuals, including all officers, owners, and managerial officials as defined in section 
403.1 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
403.2 	for each controlling individual;
403.3 	(4) if applicable, the applicant's NPI number and UMPI number;
403.4 	(5) the documents that created the organization and that determine the organization's 
403.5 	internal governance and the relations among the persons that own the organization, have 
403.6 	an interest in the organization, or are members of the organization, in each case as provided 
403.7 	or authorized by the organization's governing statute, which may include a partnership 
403.8 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
403.9 	or comparable documents as provided in the organization's governing statute; and
403.10 	(6) the notarized signature of the applicant or authorized agent.
403.11 	(h) When the applicant is a government entity, the applicant must provide:
403.12 	(1) the name of the government agency, political subdivision, or other unit of government 
403.13 	seeking the license and the name of the program or services that will be licensed;
403.14 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
403.15 	identification number and federal employer identification number;
403.16 	(3) a letter signed by the manager, administrator, or other executive of the government 
403.17 	entity authorizing the submission of the license application; and
403.18 	(4) if applicable, the applicant's NPI number and UMPI number.
403.19 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
403.20 	applicant or license holder must acknowledge on the form provided by the commissioner 
403.21 	if the applicant or license holder elects to receive any public funding reimbursement from 
403.22 	the commissioner for services provided under the license that:
403.23 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
403.24 	or registration requirements for receipt of public funding may be monitored by the 
403.25 	commissioner as part of a licensing investigation or licensing inspection; and
403.26 	(2) noncompliance with the provider enrollment agreement or registration requirements 
403.27 	for receipt of public funding that is identified through a licensing investigation or licensing 
403.28 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
403.29 	reimbursement for a service, may result in:
403.30 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
403.31 	section 245A.07;
404.1 	(ii) nonpayment of claims submitted by the license holder for public program 
404.2 	reimbursement;
404.3 	(iii) recovery of payments made for the service;
404.4 	(iv) disenrollment in the public payment program; or
404.5 	(v) other administrative, civil, or criminal penalties as provided by law.

404.6 	Sec. 5. Minnesota Statutes 2024, section 245A.05, is amended to read:
404.7 	245A.05 DENIAL OF APPLICATION.
404.8 	(a) The commissioner may deny a license if an applicant or controlling individual:
404.9 	(1) fails to submit a substantially complete application after receiving notice from the 
404.10 	commissioner under section 245A.04, subdivision 1;
404.11 	(2) fails to comply with applicable laws or rules;
404.12 	(3) knowingly withholds relevant information from or gives false or misleading 
404.13 	information to the commissioner in connection with an application for a license or during 
404.14 	an investigation;
404.15 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
404.16 	variance has been granted;
404.17 	(5) has an individual living in the household who received a background study under 
404.18 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
404.19 	has not been set aside under section 245C.22, and no variance has been granted;
404.20 	(6) is associated with an individual who received a background study under section 
404.21 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
404.22 	children or vulnerable adults, and who has a disqualification that has not been set aside 
404.23 	under section 245C.22, and no variance has been granted;
404.24 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
404.25 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
404.26 	6;
404.27 	(9) has a history of noncompliance as a license holder or controlling individual with 
404.28 	applicable laws or rules, including but not limited to this chapter and chapters 142E and 
404.29 	245C; or
404.30 	(10) is prohibited from holding a license according to section 245.095.; or
405.1 	(11) is the subject of a pending administrative, civil, or criminal investigation.
405.2 	(b) An applicant whose application has been denied by the commissioner must be given 
405.3 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
405.4 	must be given by certified mail, by personal service, or through the provider licensing and 
405.5 	reporting hub. The notice must state the reasons the application was denied and must inform 
405.6 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
405.7 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
405.8 	commissioner in writing by certified mail, by personal service, or through the provider 
405.9 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
405.10 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
405.11 	an appeal request is made by personal service, it must be received by the commissioner 
405.12 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
405.13 	through the provider hub, the appeal must be received by the commissioner within 20 
405.14 	calendar days from the date the commissioner issued the order through the hub. Section 
405.15 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

405.16 	Sec. 6. Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:
405.17 		Subd. 2.Temporary immediate suspension. (a) The commissioner shall act immediately 
405.18 	to temporarily suspend a license issued under this chapter if:
405.19 	(1) the license holder's or controlling individual's actions or failure to comply with 
405.20 	applicable law or rule, or the actions of other individuals or conditions in the program, pose 
405.21 	an imminent risk of harm to the health, safety, or rights of persons served by the program;
405.22 	(2) while the program continues to operate pending an appeal of an order of revocation, 
405.23 	the commissioner identifies one or more subsequent violations of law or rule which may 
405.24 	adversely affect the health or safety of persons served by the program; or
405.25 	(3) the license holder or controlling individual is criminally charged in state or federal 
405.26 	court with an offense that involves fraud or theft against a program administered by the 
405.27 	commissioner a state or federal agency.
405.28 	(b) No state funds shall be made available or be expended by any agency or department 
405.29 	of state, county, or municipal government for use by a license holder regulated under this 
405.30 	chapter while a license issued under this chapter is under immediate suspension. A notice 
405.31 	stating the reasons for the immediate suspension and informing the license holder of the 
405.32 	right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 
405.33 	1400.8612, must be delivered by personal service to the address shown on the application 
406.1 	or the last known address of the license holder. The license holder may appeal an order 
406.2 	immediately suspending a license. The appeal of an order immediately suspending a license 
406.3 	must be made in writing by certified mail, personal service, or other means expressly set 
406.4 	forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the 
406.5 	commissioner within five calendar days after the license holder receives notice that the 
406.6 	license has been immediately suspended. If a request is made by personal service, it must 
406.7 	be received by the commissioner within five calendar days after the license holder received 
406.8 	the order. A license holder and any controlling individual shall discontinue operation of the 
406.9 	program upon receipt of the commissioner's order to immediately suspend the license.
406.10 	(c) The commissioner may act immediately to temporarily suspend a license issued 
406.11 	under this chapter if the license holder or controlling individual is the subject of a pending 
406.12 	administrative, civil, or criminal investigation or subject to an administrative or civil action 
406.13 	related to fraud against a program administered by a state or federal agency.

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

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

406.28 	Sec. 8. Minnesota Statutes 2024, section 256.983, subdivision 4, is amended to read:
406.29 		Subd. 4.Funding. (a) County and Tribal agency reimbursement shall be made through 
406.30 	the settlement provisions applicable to the Supplemental Nutrition Assistance Program 
406.31 	(SNAP), MFIP, child care assistance programs, the medical assistance program, and other 
406.32 	federal and state-funded programs.
407.1 	(b) The commissioners will maintain program compliance if for any three consecutive 
407.2 	month period quarter, a county or Tribal agency fails to comply with fraud prevention 
407.3 	investigation program guidelines, or fails to meet the cost-effectiveness standards developed 
407.4 	by the commissioners. This result is contingent on the commissioners providing written 
407.5 	notice, including an offer of technical assistance, within 30 days of the end of the third or 
407.6 	subsequent month quarter of noncompliance. The county or Tribal agency shall be required 
407.7 	to submit a corrective action plan to the commissioners within 30 days of receipt of a notice 
407.8 	of noncompliance. Failure to submit a corrective action plan or, continued deviation from 
407.9 	standards of more than ten percent after submission of a corrective action plan, will result 
407.10 	in denial of funding for each subsequent month, or billing the county or Tribal agency for 
407.11 	fraud prevention investigation (FPI) service provided by the commissioners, or reallocation 
407.12 	of program grant funds, or investigative resources, or both, to other counties or Tribal 
407.13 	agencies. The denial of funding shall apply to the general settlement received by the county 
407.14 	or Tribal agency on a quarterly basis and shall not reduce the grant amount applicable to 
407.15 	the FPI project.

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

407.17 	Sec. 9. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
407.18 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
407.19 	screening activities as required by Code of Federal Regulations, title 42, section 455, subpart 
407.20 	E. A provider must enroll each provider-controlled location where direct services are 
407.21 	provided. The commissioner may deny a provider's incomplete application if a provider 
407.22 	fails to respond to the commissioner's request for additional information within 60 days of 
407.23 	the request. The commissioner must conduct a background study under chapter 245C, 
407.24 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
407.25 	(1) to (5), for a provider described in this paragraph. The background study requirement 
407.26 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
407.27 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
407.28 	(a), clauses (1) to (5).
407.29 	(b) The commissioner shall revalidate each:
407.30 	(1) each provider under this subdivision at least once every five years; and
407.31 	(2) each personal care assistance agency under this subdivision once every three years.; 
407.32 	and
408.1 	(3) at the commissioner's discretion, any other Medicaid-only provider type the 
408.2 	commissioner deems "high risk" under this subdivision.
408.3 	(c) The commissioner shall conduct revalidation as follows:
408.4 	(1) provide 30-day notice of the revalidation due date including instructions for 
408.5 	revalidation and a list of materials the provider must submit;
408.6 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
408.7 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
408.8 	days from the notification date to comply; and
408.9 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
408.10 	notice of termination and immediately suspend the provider's ability to bill. The provider 
408.11 	does not have the right to appeal suspension of ability to bill.
408.12 	(d) If a provider fails to comply with any individual provider requirement or condition 
408.13 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
408.14 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
408.15 	to an administrative appeal.
408.16 	(e) Correspondence and notifications, including notifications of termination and other 
408.17 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
408.18 	does not apply to correspondences and notifications related to background studies.
408.19 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
408.20 	that a provider is designated "high-risk," the commissioner may withhold payment from 
408.21 	providers within that category upon initial enrollment for a 90-day period. The withholding 
408.22 	for each provider must begin on the date of the first submission of a claim.
408.23 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
408.24 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
408.25 	licensed as an assisted living facility under chapter 144G and has a home and 
408.26 	community-based services designation on the home care license under section 144A.484, 
408.27 	must designate an individual as the entity's compliance officer. The compliance officer 
408.28 	must:
408.29 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
408.30 	regulations and to prevent inappropriate claims submissions;
408.31 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
408.32 	provider entity including billers, on the policies and procedures under clause (1);
409.1 	(3) respond to allegations of improper conduct related to the provision or billing of 
409.2 	medical assistance services, and implement action to remediate any resulting problems;
409.3 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
409.4 	regulations;
409.5 	(5) promptly report to the commissioner any identified violations of medical assistance 
409.6 	laws or regulations; and
409.7 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
409.8 	overpayment, report the overpayment to the commissioner and make arrangements with 
409.9 	the commissioner for the commissioner's recovery of the overpayment.
409.10 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
409.11 	provider within a particular industry sector or category establish a compliance program that 
409.12 	contains the core elements established by the Centers for Medicare and Medicaid Services.
409.13 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
409.14 	for a period of not more than one year, if the provider fails to maintain and, upon request 
409.15 	from the commissioner, provide access to documentation relating to written orders or requests 
409.16 	for payment for durable medical equipment, certifications for home health services, or 
409.17 	referrals for other items or services written or ordered by such provider, when the 
409.18 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
409.19 	to maintain documentation or provide access to documentation on more than one occasion. 
409.20 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
409.21 	under the provisions of section 256B.064.
409.22 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
409.23 	if the individual or entity has been terminated from participation in Medicare or under the 
409.24 	Medicaid program or Children's Health Insurance Program of any other state. The 
409.25 	commissioner may exempt a rehabilitation agency from termination or denial that would 
409.26 	otherwise be required under this paragraph, if the agency:
409.27 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
409.28 	to the Medicare program;
409.29 	(2) meets all other applicable Medicare certification requirements based on an on-site 
409.30 	review completed by the commissioner of health; and
409.31 	(3) serves primarily a pediatric population.
409.32 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
409.33 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
410.1 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
410.2 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
410.3 	designated contractors to conduct unannounced on-site inspections of any provider location. 
410.4 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
410.5 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
410.6 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
410.7 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
410.8 	The commissioner's designations are not subject to administrative appeal.
410.9 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
410.10 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
410.11 	provider of five percent or higher, consent to criminal background checks, including 
410.12 	fingerprinting, when required to do so under state law or by a determination by the 
410.13 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
410.14 	high-risk for fraud, waste, or abuse.
410.15 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
410.16 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
410.17 	meeting the durable medical equipment provider and supplier definition in clause (3), 
410.18 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
410.19 	annually renewed and designates the Minnesota Department of Human Services as the 
410.20 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
410.21 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
410.22 	federally qualified health center, a home health agency, the Indian Health Service, a 
410.23 	pharmacy, and a rural health clinic.
410.24 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
410.25 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
410.26 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
410.27 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
410.28 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
410.29 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
410.30 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
410.31 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
410.32 	agency decision. An agency decision is final when the right to appeal the debt has been 
410.33 	exhausted or the time to appeal has expired under section 256B.064.
410.34 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
410.35 	purchase medical equipment or supplies for sale or rental to the general public and is able 
411.1 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
411.2 	sale or rental.
411.3 	(m) The Department of Human Services may require a provider to purchase a surety 
411.4 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
411.5 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
411.6 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
411.7 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
411.8 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
411.9 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
411.10 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
411.11 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
411.12 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
411.13 	maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

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

411.15 	Sec. 10. Minnesota Statutes 2024, section 256B.0659, subdivision 21, is amended to read:
411.16 		Subd. 21.Requirements for provider enrollment of personal care assistance provider 
411.17 	agencies. (a) All personal care assistance provider agencies must provide, at the time of 
411.18 	enrollment, reenrollment, and revalidation as a personal care assistance provider agency in 
411.19 	a format determined by the commissioner, information and documentation that includes, 
411.20 	but is not limited to, the following:
411.21 	(1) the personal care assistance provider agency's current contact information including 
411.22 	address, telephone number, and email address;
411.23 	(2) proof of surety bond coverage for each business location providing services. Upon 
411.24 	new enrollment, or if the provider's Medicaid revenue in the previous calendar year is up 
411.25 	to and including $300,000, the provider agency must purchase a surety bond of $50,000. If 
411.26 	the Medicaid revenue in the previous year is over $300,000, the provider agency must 
411.27 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
411.28 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
411.29 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
411.30 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
411.31 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
411.32 	or the time to appeal has expired under section 256B.064;
412.1 	(3) proof of fidelity bond coverage in the amount of $20,000 for each business location 
412.2 	providing service;
412.3 	(4) proof of workers' compensation insurance coverage identifying the business location 
412.4 	where personal care assistance services are provided;
412.5 	(5) proof of liability insurance coverage identifying the business location where personal 
412.6 	care assistance services are provided and naming the department as a certificate holder;
412.7 	(6) a copy of the personal care assistance provider agency's written policies and 
412.8 	procedures including: hiring of employees; training requirements; service delivery; and 
412.9 	employee and consumer safety including process for notification and resolution of consumer 
412.10 	grievances, identification and prevention of communicable diseases, and employee 
412.11 	misconduct;
412.12 	(7) copies of all other forms the personal care assistance provider agency uses in the 
412.13 	course of daily business including, but not limited to:
412.14 	(i) a copy of the personal care assistance provider agency's time sheet if the time sheet 
412.15 	varies from the standard time sheet for personal care assistance services approved by the 
412.16 	commissioner, and a letter requesting approval of the personal care assistance provider 
412.17 	agency's nonstandard time sheet;
412.18 	(ii) the personal care assistance provider agency's template for the personal care assistance 
412.19 	care plan; and
412.20 	(iii) the personal care assistance provider agency's template for the written agreement 
412.21 	in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
412.22 	(8) a list of all training and classes that the personal care assistance provider agency 
412.23 	requires of its staff providing personal care assistance services;
412.24 	(9) documentation that the personal care assistance provider agency and staff have 
412.25 	successfully completed all the training required by this section, including the requirements 
412.26 	under subdivision 11, paragraph (d), if enhanced personal care assistance services are 
412.27 	provided and submitted for an enhanced rate under subdivision 17a;
412.28 	(10) documentation of the agency's marketing practices;
412.29 	(11) disclosure of ownership, leasing, or management of all residential properties that 
412.30 	is used or could be used for providing home care services;
412.31 	(12) documentation that the agency will use the following percentages of revenue 
412.32 	generated from the medical assistance rate paid for personal care assistance services for 
413.1 	employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal 
413.2 	care assistance choice option and 72.5 percent of revenue from other personal care assistance 
413.3 	providers. The revenue generated by the qualified professional and the reasonable costs 
413.4 	associated with the qualified professional shall not be used in making this calculation; and
413.5 	(13) effective May 15, 2010, documentation that the agency does not burden recipients' 
413.6 	free exercise of their right to choose service providers by requiring personal care assistants 
413.7 	to sign an agreement not to work with any particular personal care assistance recipient or 
413.8 	for another personal care assistance provider agency after leaving the agency and that the 
413.9 	agency is not taking action on any such agreements or requirements regardless of the date 
413.10 	signed.
413.11 	(b) Personal care assistance provider agencies shall provide the information specified 
413.12 	in paragraph (a) to the commissioner at the time the personal care assistance provider agency 
413.13 	enrolls as a vendor or upon request from the commissioner. The commissioner shall collect 
413.14 	the information specified in paragraph (a) from all personal care assistance providers 
413.15 	beginning July 1, 2009.
413.16 	(c) All personal care assistance provider agencies shall require all employees in 
413.17 	management and supervisory positions and owners of the agency who are active in the 
413.18 	day-to-day management and operations of the agency to complete mandatory training as 
413.19 	determined by the commissioner before submitting an application for enrollment of the 
413.20 	agency as a provider. All personal care assistance provider agencies shall also require 
413.21 	qualified professionals to complete the training required by subdivision 13 before submitting 
413.22 	an application for enrollment of the agency as a provider. Employees in management and 
413.23 	supervisory positions and owners who are active in the day-to-day operations of an agency 
413.24 	who have completed the required training as an employee with a personal care assistance 
413.25 	provider agency do not need to repeat the required training if they are hired by another 
413.26 	agency, if they have completed the training within the past three years. By September 1, 
413.27 	2010, the required training must be available with meaningful access according to title VI 
413.28 	of the Civil Rights Act and federal regulations adopted under that law or any guidance from 
413.29 	the United States Health and Human Services Department. The required training must be 
413.30 	available online or by electronic remote connection. The required training must provide for 
413.31 	competency testing. Personal care assistance provider agency billing staff shall complete 
413.32 	training about personal care assistance program financial management. This training is 
413.33 	effective July 1, 2009. Any personal care assistance provider agency enrolled before that 
413.34 	date shall, if it has not already, complete the provider training within 18 months of July 1, 
413.35 	2009. Any new owners or employees in management and supervisory positions involved 
414.1 	in the day-to-day operations are required to complete mandatory training as a requisite of 
414.2 	working for the agency. Personal care assistance provider agencies certified for participation 
414.3 	in Medicare as home health agencies are exempt from the training required in this 
414.4 	subdivision. When available, Medicare-certified home health agency owners, supervisors, 
414.5 	or managers must successfully complete the competency test.
414.6 	(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability 
414.7 	insurance required by this subdivision must be maintained continuously. After initial 
414.8 	enrollment, a provider must submit proof of bonds and required coverages at any time at 
414.9 	the request of the commissioner. Services provided while there are lapses in coverage are 
414.10 	not eligible for payment. Lapses in coverage may result in sanctions, including termination. 
414.11 	The commissioner shall send instructions and a due date to submit the requested information 
414.12 	to the personal care assistance provider agency.

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

414.14 	Sec. 11. Minnesota Statutes 2024, section 256B.85, subdivision 12, is amended to read:
414.15 		Subd. 12.Requirements for enrollment of CFSS agency-providers. (a) All CFSS 
414.16 	agency-providers must provide, at the time of enrollment, reenrollment, and revalidation 
414.17 	as a CFSS agency-provider in a format determined by the commissioner, information and 
414.18 	documentation that includes but is not limited to the following:
414.19 	(1) the CFSS agency-provider's current contact information including address, telephone 
414.20 	number, and email address;
414.21 	(2) proof of surety bond coverage. Upon new enrollment, or if the agency-provider's 
414.22 	Medicaid revenue in the previous calendar year is less than or equal to $300,000, the 
414.23 	agency-provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid 
414.24 	revenue in the previous calendar year is greater than $300,000, the agency-provider must 
414.25 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
414.26 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
414.27 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
414.28 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
414.29 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
414.30 	or the time to appeal has expired under section 256B.064;
414.31 	(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;
414.32 	(4) proof of workers' compensation insurance coverage;
414.33 	(5) proof of liability insurance;
415.1 	(6) a copy of the CFSS agency-provider's organizational chart identifying the names 
415.2 	and roles of all owners, managing employees, staff, board of directors, and additional 
415.3 	documentation reporting any affiliations of the directors and owners to other service 
415.4 	providers;
415.5 	(7) proof that the CFSS agency-provider has written policies and procedures including: 
415.6 	hiring of employees; training requirements; service delivery; and employee and consumer 
415.7 	safety, including the process for notification and resolution of participant grievances, incident 
415.8 	response, identification and prevention of communicable diseases, and employee misconduct;
415.9 	(8) proof that the CFSS agency-provider has all of the following forms and documents:
415.10 	(i) a copy of the CFSS agency-provider's time sheet; and
415.11 	(ii) a copy of the participant's individual CFSS service delivery plan;
415.12 	(9) a list of all training and classes that the CFSS agency-provider requires of its staff 
415.13 	providing CFSS services;
415.14 	(10) documentation that the CFSS agency-provider and staff have successfully completed 
415.15 	all the training required by this section;
415.16 	(11) documentation of the agency-provider's marketing practices;
415.17 	(12) disclosure of ownership, leasing, or management of all residential properties that 
415.18 	are used or could be used for providing home care services;
415.19 	(13) documentation that the agency-provider will use at least the following percentages 
415.20 	of revenue generated from the medical assistance rate paid for CFSS services for CFSS 
415.21 	support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except 
415.22 	100 percent of the revenue generated by a medical assistance rate increase due to a collective 
415.23 	bargaining agreement under section 179A.54 must be used for support worker wages and 
415.24 	benefits. The revenue generated by the worker training and development services and the 
415.25 	reasonable costs associated with the worker training and development services shall not be 
415.26 	used in making this calculation; and
415.27 	(14) documentation that the agency-provider does not burden participants' free exercise 
415.28 	of their right to choose service providers by requiring CFSS support workers to sign an 
415.29 	agreement not to work with any particular CFSS participant or for another CFSS 
415.30 	agency-provider after leaving the agency and that the agency is not taking action on any 
415.31 	such agreements or requirements regardless of the date signed.
416.1 	(b) CFSS agency-providers shall provide to the commissioner the information specified 
416.2 	in paragraph (a).
416.3 	(c) All CFSS agency-providers shall require all employees in management and 
416.4 	supervisory positions and owners of the agency who are active in the day-to-day management 
416.5 	and operations of the agency to complete mandatory training as determined by the 
416.6 	commissioner. Employees in management and supervisory positions and owners who are 
416.7 	active in the day-to-day operations of an agency who have completed the required training 
416.8 	as an employee with a CFSS agency-provider do not need to repeat the required training if 
416.9 	they are hired by another agency and they have completed the training within the past three 
416.10 	years. CFSS agency-provider billing staff shall complete training about CFSS program 
416.11 	financial management. Any new owners or employees in management and supervisory 
416.12 	positions involved in the day-to-day operations are required to complete mandatory training 
416.13 	as a requisite of working for the agency.
416.14 	(d) Agency-providers shall submit all required documentation in this section within 30 
416.15 	days of notification from the commissioner. If an agency-provider fails to submit all the 
416.16 	required documentation, the commissioner may take action under subdivision 23a.

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

416.18 	ARTICLE 15
416.19 	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL 
416.20 	POLICY

416.21 	Section 1. Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:
416.22 		Subd. 5.Administrative disqualification of child care providers caring for children 
416.23 	receiving child care assistance. (a) The department shall pursue an administrative 
416.24 	disqualification, if the child care provider is accused of committing an intentional program 
416.25 	violation, in lieu of a criminal action when it has not been pursued. Intentional program 
416.26 	violations include intentionally making false or misleading statements; receiving or providing 
416.27 	a kickback, as defined in subdivision 6, paragraph (b); intentionally misrepresenting, 
416.28 	concealing, or withholding facts; and repeatedly and intentionally violating program 
416.29 	regulations under this chapter. Intent may be proven by demonstrating a pattern of conduct 
416.30 	that violates program rules under this chapter.
416.31 	(b) To initiate an administrative disqualification, the commissioner must send written 
416.32 	notice using a signature-verified confirmed delivery method to the provider against whom 
416.33 	the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules, 
416.34 	chapter 3400, the commissioner must send the written notice at least 15 calendar days before 
417.1 	the adverse action's effective date. The notice shall state (1) the factual basis for the agency's 
417.2 	determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary 
417.3 	recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed 
417.4 	action.
417.5 	(c) The provider may appeal an administrative disqualification by submitting a written 
417.6 	request to the state agency. A provider's request must be received by the state agency no 
417.7 	later than 30 days after the date the commissioner mails the notice.
417.8 	(d) The provider's appeal request must contain the following:
417.9 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
417.10 	dollar amount involved for each disputed item;
417.11 	(2) the computation the provider believes to be correct, if applicable;
417.12 	(3) the statute or rule relied on for each disputed item; and
417.13 	(4) the name, address, and telephone number of the person at the provider's place of 
417.14 	business with whom contact may be made regarding the appeal.
417.15 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
417.16 	preponderance of the evidence that the provider committed an intentional program violation.
417.17 	(f) The hearing is subject to the requirements of section 142A.20. The human services 
417.18 	judge may combine a fair hearing and administrative disqualification hearing into a single 
417.19 	hearing if the factual issues arise out of the same or related circumstances and the provider 
417.20 	receives prior notice that the hearings will be combined.
417.21 	(g) A provider found to have committed an intentional program violation and is 
417.22 	administratively disqualified must be disqualified, for a period of three years for the first 
417.23 	offense and permanently for any subsequent offense, from receiving any payments from 
417.24 	any child care program under this chapter.
417.25 	(h) Unless a timely and proper appeal made under this section is received by the 
417.26 	department, the administrative determination of the department is final and binding.

417.27 	Sec. 2. Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:
417.28 		Subd. 6.Prohibited hiring practice practices. (a) It is prohibited to hire a child care 
417.29 	center employee when, as a condition of employment, the employee is required to have one 
417.30 	or more children who are eligible for or receive child care assistance, if:
418.1 	(1) the individual hiring the employee is, or is acting at the direction of or in cooperation 
418.2 	with, a child care center provider, center owner, director, manager, license holder, or other 
418.3 	controlling individual; and
418.4 	(2) the individual hiring the employee knows or has reason to know the purpose in hiring 
418.5 	the employee is to obtain child care assistance program funds.
418.6 	(b) Program applicants, participants, and providers are prohibited from receiving or 
418.7 	providing a kickback or payment in exchange for obtaining or attempting to obtain child 
418.8 	care assistance benefits for their own financial gain. This paragraph does not apply to:
418.9 	(1) marketing or promotional offerings that directly benefit an applicant or recipient's 
418.10 	child or dependent for whom the child care provider is providing child care services; or
418.11 	(2) child care provider discounts, scholarships, or other financial assistance allowed 
418.12 	under section 142E.17, subdivision 7.
418.13 	(c) An attempt to buy or sell access to a family's child care subsidy benefits to an 
418.14 	unauthorized person by an applicant, a participant, or a provider is a kickback, an intentional 
418.15 	program violation under subdivision 5, and wrongfully obtaining assistance under section 
418.16 	256.98.

418.17 	Sec. 3. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
418.18 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
418.19 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
418.20 	application must be made on the forms and in the manner prescribed by the commissioner. 
418.21 	The commissioner shall provide the applicant with instruction in completing the application 
418.22 	and provide information about the rules and requirements of other state agencies that affect 
418.23 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
418.24 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
418.25 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
418.26 	this chapter that is owned by another license holder must apply for a license under this 
418.27 	chapter and comply with the application procedures in this section and section 245A.043.
418.28 	The commissioner shall act on the application within 90 working days after a complete 
418.29 	application and any required reports have been received from other state agencies or 
418.30 	departments, counties, municipalities, or other political subdivisions. The commissioner 
418.31 	shall not consider an application to be complete until the commissioner receives all of the 
418.32 	required information.
419.1 	When the commissioner receives an application for initial licensure that is incomplete 
419.2 	because the applicant failed to submit required documents or that is substantially deficient 
419.3 	because the documents submitted do not meet licensing requirements, the commissioner 
419.4 	shall provide the applicant written notice that the application is incomplete or substantially 
419.5 	deficient. In the written notice to the applicant the commissioner shall identify documents 
419.6 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
419.7 	that is substantially complete. An applicant's failure to submit a substantially complete 
419.8 	application after receiving notice from the commissioner is a basis for license denial under 
419.9 	section 245A.043.
419.10 	(b) An application for licensure must identify all controlling individuals as defined in 
419.11 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
419.12 	agent. The application must be signed by the authorized agent and must include the authorized 
419.13 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
419.14 	application for licensure, the authorized agent consents to electronic communication with 
419.15 	the commissioner throughout the application process. The authorized agent must be 
419.16 	authorized to accept service on behalf of all of the controlling individuals. A government 
419.17 	entity that holds multiple licenses under this chapter may designate one authorized agent 
419.18 	for all licenses issued under this chapter or may designate a different authorized agent for 
419.19 	each license. Service on the authorized agent is service on all of the controlling individuals. 
419.20 	It is not a defense to any action arising under this chapter that service was not made on each 
419.21 	controlling individual. The designation of a controlling individual as the authorized agent 
419.22 	under this paragraph does not affect the legal responsibility of any other controlling individual 
419.23 	under this chapter.
419.24 	(c) An applicant or license holder must have a policy that prohibits license holders, 
419.25 	employees, subcontractors, and volunteers, when directly responsible for persons served 
419.26 	by the program, from abusing prescription medication or being in any manner under the 
419.27 	influence of a chemical that impairs the individual's ability to provide services or care. The 
419.28 	license holder must train employees, subcontractors, and volunteers about the program's 
419.29 	drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact, 
419.30 	as defined in section 245C.02, subdivision 11, with a person served by the program.
419.31 	(d) An applicant and license holder must have a program grievance procedure that permits 
419.32 	persons served by the program and their authorized representatives to bring a grievance to 
419.33 	the highest level of authority in the program.
419.34 	(e) The commissioner may limit communication during the application process to the 
419.35 	authorized agent or the controlling individuals identified on the license application and for 
420.1 	whom a background study was initiated under chapter 245C. Upon implementation of the 
420.2 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
420.3 	manner prescribed by the commissioner. The commissioner may require the applicant, 
420.4 	except for child foster care, to demonstrate competence in the applicable licensing 
420.5 	requirements by successfully completing a written examination. The commissioner may 
420.6 	develop a prescribed written examination format.
420.7 	(f) When an applicant is an individual, the applicant must provide:
420.8 	(1) the applicant's taxpayer identification numbers including the Social Security number 
420.9 	or Minnesota tax identification number, and federal employer identification number if the 
420.10 	applicant has employees;
420.11 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
420.12 	of state that includes the complete business name, if any;
420.13 	(3) if doing business under a different name, the doing business as (DBA) name, as 
420.14 	registered with the secretary of state;
420.15 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
420.16 	Minnesota Provider Identifier (UMPI) number; and
420.17 	(5) at the request of the commissioner, the notarized signature of the applicant or 
420.18 	authorized agent.
420.19 	(g) When an applicant is an organization, the applicant must provide:
420.20 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
420.21 	identification number and federal employer identification number;
420.22 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
420.23 	of state that includes the complete business name, and if doing business under a different 
420.24 	name, the doing business as (DBA) name, as registered with the secretary of state;
420.25 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
420.26 	individuals, including all officers, owners, and managerial officials as defined in section 
420.27 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
420.28 	for each controlling individual;
420.29 	(4) if applicable, the applicant's NPI number and UMPI number;
420.30 	(5) the documents that created the organization and that determine the organization's 
420.31 	internal governance and the relations among the persons that own the organization, have 
420.32 	an interest in the organization, or are members of the organization, in each case as provided 
421.1 	or authorized by the organization's governing statute, which may include a partnership 
421.2 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
421.3 	or comparable documents as provided in the organization's governing statute; and
421.4 	(6) the notarized signature of the applicant or authorized agent.
421.5 	(h) When the applicant is a government entity, the applicant must provide:
421.6 	(1) the name of the government agency, political subdivision, or other unit of government 
421.7 	seeking the license and the name of the program or services that will be licensed;
421.8 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
421.9 	identification number and federal employer identification number;
421.10 	(3) a letter signed by the manager, administrator, or other executive of the government 
421.11 	entity authorizing the submission of the license application; and
421.12 	(4) if applicable, the applicant's NPI number and UMPI number.
421.13 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
421.14 	applicant or license holder must acknowledge on the form provided by the commissioner 
421.15 	if the applicant or license holder elects to receive any public funding reimbursement from 
421.16 	the commissioner for services provided under the license that:
421.17 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
421.18 	or registration requirements for receipt of public funding may be monitored by the 
421.19 	commissioner as part of a licensing investigation or licensing inspection; and
421.20 	(2) noncompliance with the provider enrollment agreement or registration requirements 
421.21 	for receipt of public funding that is identified through a licensing investigation or licensing 
421.22 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
421.23 	reimbursement for a service, may result in:
421.24 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
421.25 	section 245A.07;
421.26 	(ii) nonpayment of claims submitted by the license holder for public program 
421.27 	reimbursement;
421.28 	(iii) recovery of payments made for the service;
421.29 	(iv) disenrollment in the public payment program; or
421.30 	(v) other administrative, civil, or criminal penalties as provided by law.

422.1 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 7, is amended to read:
422.2 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
422.3 	the program complies with all applicable rules and laws, the commissioner shall issue a 
422.4 	license consistent with this section or, if applicable, a temporary change of ownership license 
422.5 	under section 245A.043. At minimum, the license shall state:
422.6 	(1) the name of the license holder;
422.7 	(2) the address of the program;
422.8 	(3) the effective date and expiration date of the license;
422.9 	(4) the type of license;
422.10 	(5) the maximum number and ages of persons that may receive services from the program; 
422.11 	and
422.12 	(6) any special conditions of licensure.
422.13 	(b) The commissioner may issue a license for a period not to exceed two years if:
422.14 	(1) the commissioner is unable to conduct the observation required by subdivision 4, 
422.15 	paragraph (a), clause (3), because the program is not yet operational;
422.16 	(2) certain records and documents are not available because persons are not yet receiving 
422.17 	services from the program; and
422.18 	(3) the applicant complies with applicable laws and rules in all other respects.
422.19 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
422.20 	or persons will be placed or cared for in the licensed program.
422.21 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
422.22 	license if the applicant, license holder, or an affiliated controlling individual has:
422.23 	(1) been disqualified and the disqualification was not set aside and no variance has been 
422.24 	granted;
422.25 	(2) been denied a license under this chapter or chapter 142B within the past two years;
422.26 	(3) had a license issued under this chapter or chapter 142B revoked within the past five 
422.27 	years; or
422.28 	(4) failed to submit the information required of an applicant under subdivision 1, 
422.29 	paragraph (f), (g), or (h), after being requested by the commissioner.
423.1 	When a license issued under this chapter or chapter 142B is revoked, the license holder 
423.2 	and each affiliated controlling individual with a revoked license may not hold any license 
423.3 	under chapter 245A for five years following the revocation, and other licenses held by the 
423.4 	applicant or license holder or licenses affiliated with each controlling individual shall also 
423.5 	be revoked.
423.6 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
423.7 	affiliated with a license holder or controlling individual that had a license revoked within 
423.8 	the past five years if the commissioner determines that (1) the license holder or controlling 
423.9 	individual is operating the program in substantial compliance with applicable laws and rules 
423.10 	and (2) the program's continued operation is in the best interests of the community being 
423.11 	served.
423.12 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
423.13 	to an application that is affiliated with an applicant, license holder, or controlling individual 
423.14 	that had an application denied within the past two years or a license revoked within the past 
423.15 	five years if the commissioner determines that (1) the applicant or controlling individual 
423.16 	has operated one or more programs in substantial compliance with applicable laws and rules 
423.17 	and (2) the program's operation would be in the best interests of the community to be served.
423.18 	(g) In determining whether a program's operation would be in the best interests of the 
423.19 	community to be served, the commissioner shall consider factors such as the number of 
423.20 	persons served, the availability of alternative services available in the surrounding 
423.21 	community, the management structure of the program, whether the program provides 
423.22 	culturally specific services, and other relevant factors.
423.23 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
423.24 	living in the household where the services will be provided as specified under section 
423.25 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
423.26 	and no variance has been granted.
423.27 	(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
423.28 	under this chapter has been suspended or revoked and the suspension or revocation is under 
423.29 	appeal, the program may continue to operate pending a final order from the commissioner. 
423.30 	If the license under suspension or revocation will expire before a final order is issued, a 
423.31 	temporary provisional license may be issued provided any applicable license fee is paid 
423.32 	before the temporary provisional license is issued.
423.33 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
423.34 	a controlling individual or license holder, and the controlling individual or license holder 
424.1 	is ordered under section 245C.17 to be immediately removed from direct contact with 
424.2 	persons receiving services or is ordered to be under continuous, direct supervision when 
424.3 	providing direct contact services, the program may continue to operate only if the program 
424.4 	complies with the order and submits documentation demonstrating compliance with the 
424.5 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
424.6 	if the disqualification is not set aside and no variance is granted, the order to immediately 
424.7 	remove the individual from direct contact or to be under continuous, direct supervision 
424.8 	remains in effect pending the outcome of a hearing and final order from the commissioner.
424.9 	(k) Unless otherwise specified by statute, all licenses issued under this chapter expire 
424.10 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
424.11 	apply for and be grantedcomply with the requirements in section 245A.10 and be reissued 
424.12 	a new license to operate the program or the program must not be operated after the expiration 
424.13 	date. Adult foster care, family adult day services, child foster residence setting, and 
424.14 	community residential services license holders must apply for and be granted a new license 
424.15 	to operate the program or the program must not be operated after the expiration date. Upon 
424.16 	implementation of the provider licensing and reporting hub, licenses may be issued each 
424.17 	calendar year.
424.18 	(l) The commissioner shall not issue or reissue a license under this chapter if it has been 
424.19 	determined that a Tribal licensing authority has established jurisdiction to license the program 
424.20 	or service.
424.21 	(m) The commissioner of human services may coordinate and share data with the 
424.22 	commissioner of children, youth, and families to enforce this section.

424.23 	Sec. 5. Minnesota Statutes 2024, section 245A.16, subdivision 1, is amended to read:
424.24 		Subdivision 1.Delegation of authority to agencies. (a) County agencies that have been 
424.25 	designated by the commissioner to perform licensing functions and activities under section 
424.26 	245A.04; to recommend denial of applicants under section 245A.05; to issue correction 
424.27 	orders, to issue variances, and recommend a conditional license under section 245A.06; or 
424.28 	to recommend suspending or revoking a license or issuing a fine under section 245A.07, 
424.29 	shall comply with rules and directives of the commissioner governing those functions and 
424.30 	with this section. The following variances are excluded from the delegation of variance 
424.31 	authority and may be issued only by the commissioner:
424.32 	(1) dual licensure of child foster residence setting and community residential setting;
425.1 	(2) until the responsibility for family child foster care transfers to the commissioner of 
425.2 	children, youth, and families under Laws 2023, chapter 70, article 12, section 30, dual 
425.3 	licensure of family child foster care and family adult foster care;
425.4 	(3) until the responsibility for family child care transfers to the commissioner of children, 
425.5 	youth, and families under Laws 2023, chapter 70, article 12, section 30, dual licensure of 
425.6 	family adult foster care and family child care;
425.7 	(4) adult foster care or community residential setting maximum capacity;
425.8 	(5) adult foster care or community residential setting minimum age requirement;
425.9 	(6) child foster care maximum age requirement;
425.10 	(7) variances regarding disqualified individuals;
425.11 	(8) the required presence of a caregiver in the adult foster care residence during normal 
425.12 	sleeping hours;
425.13 	(9) variances to requirements relating to chemical use problems of a license holder or a 
425.14 	household member of a license holder; and
425.15 	(10) variances to section 142B.46 for the use of a cradleboard for a cultural 
425.16 	accommodation.
425.17 	(b) Once the respective responsibilities transfer from the commissioner of human services 
425.18 	to the commissioner of children, youth, and families, under Laws 2023, chapter 70, article 
425.19 	12, section 30, the commissioners of human services and children, youth, and families must 
425.20 	both approve a variance for dual licensure of family child foster care and family adult foster 
425.21 	care or family adult foster care and family child care. Variances under this paragraph are 
425.22 	excluded from the delegation of variance authority and may be issued only by both 
425.23 	commissioners.
425.24 	(c) For family adult day services programs, the commissioner may authorize licensing 
425.25 	reviews every two years after a licensee has had at least one annual review.
425.26 	(d) A (c) An adult foster care, family adult day services, child foster residence setting, 
425.27 	or community residential services license issued under this section may be issued for up to 
425.28 	two years until implementation of the provider licensing and reporting hub. Upon 
425.29 	implementation of the provider licensing and reporting hub, licenses may be issued each 
425.30 	calendar year.
425.31 	(e) (d) During implementation of chapter 245D, the commissioner shall consider:
425.32 	(1) the role of counties in quality assurance;
426.1 	(2) the duties of county licensing staff; and
426.2 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
426.3 	through which some licensing duties under chapter 245D may be delegated by the 
426.4 	commissioner to the counties.
426.5 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
426.6 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
426.7 	(f) (e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
426.8 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
426.9 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
426.10 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county agencies.

426.11 	Sec. 6. Minnesota Statutes 2024, section 245A.242, subdivision 2, is amended to read:
426.12 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
426.13 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
426.14 	treatment of opioid overdose and must have a written standing order protocol by a physician 
426.15 	who is licensed under chapter 147, advanced practice registered nurse who is licensed under 
426.16 	chapter 148, or physician assistant who is licensed under chapter 147A, that permits the 
426.17 	license holder to maintain a supply of opiate antagonists on site. A license holder must 
426.18 	require staff to undergo training in the specific mode of administration used at the program, 
426.19 	which may include intranasal administration, intramuscular injection, or both, before the 
426.20 	staff has direct contact, as defined in section 245C.02, subdivision 11, with a person served 
426.21 	by the program.
426.22 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960 
426.23 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
426.24 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
426.25 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
426.26 	location;
426.27 	(2) staff persons who only administer emergency opiate antagonist medications only 
426.28 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
426.29 	The trainer is not required to be a registered nurse or part of an accredited educational 
426.30 	institution; and
426.31 	(3) nonresidential substance use disorder treatment programs that do not administer 
426.32 	client medications beyond emergency opiate antagonist medications are not required to 
426.33 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
427.1 	must instead describe the program's procedures for administering opiate antagonist 
427.2 	medications in the license holder's description of health care services under section 245G.08, 
427.3 	subdivision 1.

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

427.9 	Sec. 8. Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:
427.10 		Subd. 3.Arrest and investigative information. (a) For any background study completed 
427.11 	under this section, if the commissioner has reasonable cause to believe the information is 
427.12 	pertinent to the disqualification of an individual, the commissioner also may review arrest 
427.13 	and investigative information from:
427.14 	(1) the Bureau of Criminal Apprehension;
427.15 	(2) the commissioners of children, youth, and families; health; and human services;
427.16 	(3) a county attorney prosecutor;
427.17 	(4) a county sheriff;
427.18 	(5) (4) a county agency;
427.19 	(6) (5) a local chief of police law enforcement agency;
427.20 	(7) (6) other states;
427.21 	(8) (7) the courts;
427.22 	(9) (8) the Federal Bureau of Investigation;
427.23 	(10) (9) the National Criminal Records Repository; and
427.24 	(11) (10) criminal records from other states.
427.25 	(b) Except when specifically required by law, the commissioner is not required to conduct 
427.26 	more than one review of a subject's records from the Federal Bureau of Investigation if a 
427.27 	review of the subject's criminal history with the Federal Bureau of Investigation has already 
427.28 	been completed by the commissioner and there has been no break in the subject's affiliation 
427.29 	with the entity that initiated the background study.
428.1 	(c) If the commissioner conducts a national criminal history record check when required 
428.2 	by law and uses the information from the national criminal history record check to make a 
428.3 	disqualification determination, the data obtained is private data and cannot be shared with 
428.4 	private agencies or prospective employers of the background study subject.
428.5 	(d) If the commissioner conducts a national criminal history record check when required 
428.6 	by law and uses the information from the national criminal history record check to make a 
428.7 	disqualification determination, the license holder or entity that submitted the study is not 
428.8 	required to obtain a copy of the background study subject's disqualification letter under 
428.9 	section 245C.17, subdivision 3.

428.10 	Sec. 9. Minnesota Statutes 2024, section 245C.22, subdivision 5, is amended to read:
428.11 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
428.12 	this section, the disqualified individual remains disqualified, but may hold a license and 
428.13 	have direct contact with or access to persons receiving services. Except as provided in 
428.14 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
428.15 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
428.16 	For personal care provider organizations, financial management services organizations, 
428.17 	community first services and supports organizations, unlicensed home and community-based 
428.18 	organizations, and consumer-directed community supports organizations, the commissioner's 
428.19 	set-aside may further be limited to a specific individual who is receiving services. For new 
428.20 	background studies required under section 245C.04, subdivision 1, paragraph (h), if an 
428.21 	individual's disqualification was previously set aside for the license holder's program and 
428.22 	the new background study results in no new information that indicates the individual may 
428.23 	pose a risk of harm to persons receiving services from the license holder, the previous 
428.24 	set-aside shall remain in effect.
428.25 	(b) If the commissioner has previously set aside an individual's disqualification for one 
428.26 	or more programs or agencies, and the individual is the subject of a subsequent background 
428.27 	study for a different program or agency, the commissioner shall determine whether the 
428.28 	disqualification is set aside for the program or agency that initiated the subsequent 
428.29 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
428.30 	working days if all of the following criteria are met:
428.31 	(1) the subsequent background study was initiated in connection with a program licensed 
428.32 	or regulated under the same provisions of law and rule for at least one program for which 
428.33 	the individual's disqualification was previously set aside by the commissioner;
429.1 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
429.2 	subdivision 1 or 2;
429.3 	(3) the commissioner has received no new information to indicate that the individual 
429.4 	may pose a risk of harm to any person served by the program; and
429.5 	(4) the previous set-aside was not limited to a specific person receiving services.
429.6 	(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the 
429.7 	substance use disorder field, if the commissioner has previously set aside an individual's 
429.8 	disqualification for one or more programs or agencies in the substance use disorder treatment 
429.9 	field, and the individual is the subject of a subsequent background study for a different 
429.10 	program or agency in the substance use disorder treatment field, the commissioner shall set 
429.11 	aside the disqualification for the program or agency in the substance use disorder treatment 
429.12 	field that initiated the subsequent background study when the criteria under paragraph (b), 
429.13 	clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified 
429.14 	in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued 
429.15 	within 15 working days.
429.16 	(d) When a disqualification is set aside under paragraph (b), the notice of background 
429.17 	study results issued under section 245C.17, in addition to the requirements under section 
429.18 	245C.17, shall state that the disqualification is set aside for the program or agency that 
429.19 	initiated the subsequent background study. The notice must inform the individual that the 
429.20 	individual may request reconsideration of the disqualification under section 245C.21 on the 
429.21 	basis that the information used to disqualify the individual is incorrect.

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

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

429.30 	Sec. 11. Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:
429.31 		Subdivision 1.Wrongfully obtaining assistance. (a) A person who commits any of the 
429.32 	following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897, 
430.1 	the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program 
430.2 	formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K, 
430.3 	or 256L, child care assistance programs, and emergency assistance programs under section 
430.4 	256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses 
430.5 	(1) to (5):
430.6 	(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a 
430.7 	willfully false statement or representation, by intentional concealment of any material fact, 
430.8 	or by impersonation or other fraudulent device, assistance or the continued receipt of 
430.9 	assistance, to include child care assistance or food benefits produced according to sections 
430.10 	145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94, 
430.11 	and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that 
430.12 	to which the person is entitled;
430.13 	(2) knowingly aids or abets in buying or in any way disposing of the property of a 
430.14 	recipient or applicant of assistance without the consent of the county agency; or
430.15 	(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments 
430.16 	to which the individual is not entitled as a provider of subsidized child care, or by furnishing 
430.17 	or concurring in receiving or providing any prohibited payment, as defined in section 
430.18 	609.542, subdivision 2, including a kickback, or by submitting or aiding or abetting the 
430.19 	submission of a willfully false claim for child care assistance.
430.20 	(b) The continued receipt of assistance to which the person is not entitled or greater than 
430.21 	that to which the person is entitled as a result of any of the acts, failure to act, or concealment 
430.22 	described in this subdivision shall be deemed to be continuing offenses from the date that 
430.23 	the first act or failure to act occurred.

430.24 	Sec. 12. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
430.25 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
430.26 	any individual or entity that receives payments from medical assistance or provides goods 
430.27 	or services for which payment is made from medical assistance for any of the following: 
430.28 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
430.29 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
430.30 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
430.31 	a pattern of making false statements of material facts for the purpose of obtaining greater 
430.32 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
430.33 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
430.34 	regular business hours to examine all records necessary to disclose the extent of services 
431.1 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
431.2 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
431.3 	errors in the maintenance of health service or financial records for which a fine was imposed 
431.4 	or after issuance of a warning by the commissioner; (8) soliciting or receiving any 
431.5 	remuneration as defined in section 609.542, subdivision 3, or United States Code, title 42, 
431.6 	section 1320a-7b(b)(1), and a criminal conviction is not required; (9) paying or offering to 
431.7 	pay any remuneration as defined in section 609.542, subdivision 2, or United States Code, 
431.8 	title 42, section 1320a-7b(b)(2), and a criminal conviction is not required; and (8) (10) any 
431.9 	reason for which an individual or entity could be excluded from participation in the Medicare 
431.10 	program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the 
431.11 	purposes of this section, goods or services for which payment is made from medical 
431.12 	assistance includes but is not limited to care and services identified in section 256B.0625
431.13 	or provided pursuant to any federally approved waiver.
431.14 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
431.15 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
431.16 	(h).

431.17 	Sec. 13. Minnesota Statutes 2024, section 256B.12, is amended to read:
431.18 	256B.12 LEGAL REPRESENTATION.
431.19 	The attorney general or the appropriate county attorney appearing at the direction of the 
431.20 	attorney general shall be the attorney for the state agency, and the county attorney of the 
431.21 	appropriate county shall be the attorney for the local agency in all matters pertaining hereto. 
431.22 	To prosecute under this chapter or sections 609.466and;609.52, subdivision 2,; and 609.542
431.23 	or to recover payments wrongfully made under this chapter, the attorney general or the 
431.24 	appropriate county attorney, acting independently or at the direction of the attorney general 
431.25 	may institute a criminal or civil action.

431.26 	Sec. 14. [609.542] HUMAN SERVICES PROGRAMS CRIMES.
431.27 		Subdivision 1.Definition. For purposes of this section, "federal health care program" 
431.28 	has the meaning given in United States Code, title 42, section 1320a-7b(f).
431.29 		Subd. 2.Prohibited payments made relating to human services programs. A person 
431.30 	is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
431.31 	intentionally offers or pays any remuneration, including any kickback, bribe, or rebate, 
431.32 	directly or indirectly, overtly or covertly, in cash or in kind, to another person:
432.1 	(1) to induce that person to apply for, receive, or induce another person to apply for or 
432.2 	receive an item or service for which payment may be made in whole or in part under a 
432.3 	federal health care program, state behavioral health program under section 254B.04, or 
432.4 	family program under chapter 142E; or
432.5 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
432.6 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
432.7 	in whole or in part, or which is administered in whole or in part under a federal health care 
432.8 	program, state behavioral health program under section 254B.04, or family program under 
432.9 	chapter 142E.
432.10 		Subd. 3.Receipt of prohibited payments relating to human services programs. A 
432.11 	person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
432.12 	intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate, 
432.13 	directly or indirectly, overtly or covertly, in cash or in kind:
432.14 	(1) in return for applying for or receiving a human services benefit, service, or grant for 
432.15 	which payment may be made in whole or in part under a federal health care program, state 
432.16 	behavioral health program under section 254B.04, or family program under chapter 142E; 
432.17 	or
432.18 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
432.19 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
432.20 	in whole or in part under a federal health care program, state behavioral health program 
432.21 	under section 254B.04, or family program under chapter 142E.
432.22 		Subd. 4.Exemptions. (a) This section does not apply to remuneration exempted under 
432.23 	the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment 
432.24 	made under a federal health care program which is exempt from liability by United States 
432.25 	Code, title 42, section 1001.952.
432.26 	(b) This section does not apply to:
432.27 	(1) any amount paid by an employer to a bona fide employee for providing covered 
432.28 	items or services under chapter 142E while acting in the course and scope of employment; 
432.29 	or
432.30 	(2) child care provider discounts, scholarships, or other financial assistance to families 
432.31 	allowed under section 142E.17, subdivision 7.
432.32 		Subd. 5.Sentence. (a) A person convicted under subdivision 2 or 3 may be sentenced 
432.33 	pursuant to section 609.52, subdivision 3.
433.1 	(b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market 
433.2 	value of the good, facility, service, or item that was obtained as a direct or indirect result 
433.3 	of the prohibited payment.
433.4 	(c) For purposes of sentencing a violation of subdivision 3, "value" means the amount 
433.5 	of the prohibited payment solicited or received.
433.6 	(d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed 
433.7 	to have been rendered in violation of this section is noncompensable and unenforceable at 
433.8 	the time the claim is made.
433.9 		Subd. 6.Aggregation. In a prosecution under this section, the value of the money, 
433.10 	property, or benefit received or solicited by the defendant within a six-month period may 
433.11 	be aggregated and the defendant charged accordingly in applying the provisions of 
433.12 	subdivision 5.
433.13 		Subd. 7.False claims. In addition to the penalties provided for in this section, a claim, 
433.14 	as defined in section 15C.01, subdivision 2, that includes items or services resulting from 
433.15 	a violation of this section constitutes a false or fraudulent claim for purposes of section 
433.16 	15C.02.

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

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

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

433.23 	Sec. 16. MODIFICATION OF DEFINITIONS.
 433.24 	For the purposes of implementing the provider licensing and reporting hub, the 
433.25 	commissioner of human services may modify definitions in Minnesota Statutes, chapters 
433.26 	142B, 245A, 245D, 245F, 245G, and 245I, and Minnesota Rules, chapters 2960, 9502, 
433.27 	9520, 9530, 9543, 9555, and 9570. Definitions changed pursuant to this section do not affect 
433.28 	the rights, responsibilities, or duties of the commissioner; the Department of Human Services; 
433.29 	programs administered, licensed, certified, or funded by the commissioner; or the programs' 
433.30 	employees or clients. This section expires August 31, 2028.

434.1 	Sec. 17. REPEALER.
 434.2 	Minnesota Statutes 2024, section 245A.11, subdivision 8, is repealed.

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

434.4 	ARTICLE 16
434.5 	ECONOMIC SUPPORTS

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

434.13 	Sec. 2. [142F.141] PREPARED MEALS FOOD RELIEF GRANTS.
434.14 		Subdivision 1.Establishment The commissioner of children, youth, and families must 
434.15 	establish a prepared meals grant program to provide hunger relief to Minnesotans 
434.16 	experiencing food insecurity and who have difficulty preparing meals due to limited mobility, 
434.17 	disability, or limited resources.
434.18 		Subd. 2.Eligible grantees. (a) Eligible grantees are nonprofit organizations and federally 
434.19 	recognized American Indian Tribes or Bands located in Minnesota, as defined in section 
434.20 	10.65, with a demonstrated history of providing and distributing prepared meals customized 
434.21 	for the population that they serve, including tailoring meals to the cultural, religious, and 
434.22 	dietary needs of the population served. Eligible grantees must prepare meals in a licensed 
434.23 	commercial kitchen and distribute meals according to ServSafe guidelines.
434.24 	(b) An individual or nonprofit organization affiliated with Feeding Our Future is 
434.25 	prohibited from receiving grant funds under this section.
434.26 		Subd. 3.Application. Applicants for grant money under this section must apply to the 
434.27 	commissioner on the forms and in the time and manner established by the commissioner.
434.28 		Subd. 4.Allowable uses of grant funds. Eligible grantees must use grant money awarded 
434.29 	under this section to fund a prepared meals program that primarily targets individuals 18 
434.30 	years of age or older and under 61 years of age, and their dependents experiencing food 
435.1 	insecurity. Grantees must not receive funding from other state and federal meal programs 
435.2 	for activities funded under this section.
435.3 		Subd. 5.Duties of the commissioner. (a) The commissioner must develop a process 
435.4 	for determining eligible grantees under this section.
435.5 	(b) In granting money, the commissioner must prioritize applicants that:
435.6 	(1) have demonstrated the ability to provide prepared meals to racially, ethnically, and 
435.7 	geographically diverse populations at greater risk for food insecurity;
435.8 	(2) work with external community partners to distribute meals targeting nontraditional 
435.9 	meal sites reaching those most in need; and
435.10 	(3) have a demonstrated history of sourcing at least 50 percent of the prepared meal 
435.11 	ingredients from:
435.12 	(i) Minnesota food producers and processors; or
435.13 	(ii) food that is donated or would otherwise be waste.
435.14 	(c) The commissioner must consider geographic distribution to ensure statewide coverage 
435.15 	when awarding grants and minimize the number of grantees to simplify administrative 
435.16 	burdens and costs.
435.17 		Subd. 6.Reporting. (a) Grantees receiving money under this section must retain records 
435.18 	documenting expenditure of the money and comply with any additional documentation 
435.19 	requirements imposed by the commissioner.
435.20 	(b) Grantees must report on the use of money received under this section to the 
435.21 	commissioner. The commissioner must determine the timing and form required for the 
435.22 	reports.
435.23 	(c) If the commissioner determines that ineligible expenditures are made by grantees 
435.24 	receiving money under this section, the ineligible amount must be repaid to the commissioner 
435.25 	and deposited in the general fund.

435.26 	Sec. 3. [142F.16] REGIONAL FOOD BANK GRANTS.
435.27 		Subdivision 1.Establishment. The commissioner of children, youth, and families must 
435.28 	establish regional food bank grants to increase the availability of food to individuals and 
435.29 	families in need.
435.30 		Subd. 2.Distribution of appropriation. The commissioner must distribute funds 
435.31 	appropriated under this section to regional food banks and federally recognized American 
436.1 	Indian Tribes or Bands in Minnesota, as defined in section 10.65. The commissioner must 
436.2 	distribute the funds under this section in accordance with the federal The Emergency Food 
436.3 	Assistance Program (TEFAP) formula and guidelines of the United States Department of 
436.4 	Agriculture. The commissioner may increase or decrease a qualifying recipient's proportionate 
436.5 	amount if the commissioner determines the increase or decrease is necessary to meet 
436.6 	community needs or demands for food in Minnesota. Food banks and American Indian 
436.7 	Tribes or Bands must be in compliance with TEFAP regulations from the United States 
436.8 	Department of Agriculture in order to receive funding under this section, as applicable.
436.9 		Subd. 3.Allowable uses of funds. (a) Grant funds distributed to regional food banks 
436.10 	under this section must be used to purchase, transport, and coordinate the distribution of 
436.11 	food to TEFAP providers.
436.12 	(b) Grant funds distributed to American Indian Tribes or Bands under this section must 
436.13 	be used to purchase, transport, and coordinate the distribution of food to individuals and 
436.14 	families in need.
436.15 	(c) Grant funds distributed under this section may also be used to purchase personal 
436.16 	hygiene products, including but not limited to diapers and toilet paper.
436.17 		Subd. 4.Reporting. (a) Food banks and American Indian Tribes or Bands receiving 
436.18 	grant funds under this section must retain records documenting expenditure of the grant 
436.19 	funds and comply with any additional documentation requirements imposed by the 
436.20 	commissioner.
436.21 	(b) Food banks and American Indian Tribes or Bands must report on the use of grant 
436.22 	funds received under this section to the commissioner. The commissioner must determine 
436.23 	the timing and form required for the reports.
436.24 	(c) If the commissioner determines that ineligible expenditures are made by food banks 
436.25 	or American Indian Tribes or Bands receiving grant funds under this section, the ineligible 
436.26 	amount must be repaid to the commissioner and deposited in the general fund.

436.27 	Sec. 4. FAMILY SUPPORTIVE HOUSING GRANT PROGRAM.
 436.28 		Subdivision 1.Establishment; purpose. The commissioner of human services must 
436.29 	establish a family supportive housing grant program to award competitive grants to eligible 
436.30 	applicants operating supportive housing for families.
436.31 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
437.1 	(b) "Family" means a nontemporary household unit that includes at least one child and 
437.2 	one parent or legal guardian.
437.3 	(c) "Family permanent supportive housing" means housing that:
437.4 	(1) is not time limited;
437.5 	(2) is affordable for those at or below 30 percent of the area median income;
437.6 	(3) offers specialized support services to residents tailored to the needs of children and 
437.7 	families; and
437.8 	(4) is available to families with multiple barriers to obtaining and maintaining housing, 
437.9 	including but not limited to those who are homeless or at risk of homelessness; those with 
437.10 	mental illness, substance use disorders, and other disabilities; and those referred by child 
437.11 	protection services.
437.12 	(d) "Resident" means a resident of family permanent supportive housing.
437.13 		Subd. 3.Eligibility. To be eligible for a grant under this section, an applicant must be 
437.14 	currently operating family supportive housing and be a nonprofit organization or Tribal 
437.15 	government.
437.16 		Subd. 4.Application and administration. (a) When applying to the commissioner for 
437.17 	a grant under this section, each applicant must include the number of families they estimate 
437.18 	to serve.
437.19 	(b) Within available appropriations, the commissioner must award grant money to eligible 
437.20 	grantees based on the estimated number of families served. The commissioner must use 
437.21 	best efforts to ensure that 60 percent of the families served are within the seven-county 
437.22 	metropolitan area and 40 percent of the families served are outside the seven-county 
437.23 	metropolitan area. The commissioner must use best efforts to ensure that ten percent of the 
437.24 	overall families served are members of Minnesota's Tribal Nations.
437.25 	(c) By June 30, 2026, each grantee must provide a report to the commissioner on how 
437.26 	many families the grantee served and what services the grantee provided.
437.27 		Subd. 5.Eligible uses of grant money. An eligible applicant that receives grant money 
437.28 	under this section must use the money for the services described in subdivision 6.
437.29 		Subd. 6.Specialized family support services. Specialized family support services are 
437.30 	nonmandatory, trauma-informed, and culturally appropriate services designed to help family 
437.31 	residents maintain secure, dignified housing and provide a safe, stable environment for 
437.32 	children. Services provided may include but are not limited to:
438.1 	(1) age-appropriate child-centric services for education and enrichment;
438.2 	(2) stabilization services such as:
438.3 	(i) educational assessment and referrals to educational programs;
438.4 	(ii) career planning, work skills training, job placement, and employment retention;
438.5 	(iii) budgeting and money management;
438.6 	(iv) referral for counseling regarding violence and sexual exploitation;
438.7 	(v) referral for medical or psychiatric services or substance use disorder treatment;
438.8 	(vi) parenting skills training;
438.9 	(vii) self-sufficiency support services or life skills training, including tenant education 
438.10 	and support to sustain housing; and
438.11 	(viii) aftercare and follow-up services; and
438.12 	(3) 24-hour-a-day, seven-day-a-week on-site staffing, including but not limited to front 
438.13 	desk and security.

438.14 	ARTICLE 17
438.15 	CHILD PROTECTION AND WELFARE

438.16 	Section 1. Minnesota Statutes 2024, section 142A.03, subdivision 2, is amended to read:
438.17 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
438.18 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
438.19 	out the duties and responsibilities of the commissioner. Any money received under this 
438.20 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
438.21 	The commissioner must biennially report to the chairs and ranking minority members of 
438.22 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
438.23 	list of all grants and gifts received under this subdivision.
438.24 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
438.25 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
438.26 	commissioner.
438.27 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
438.28 	private agencies, for-profit and nonprofit organizations, and individuals using appropriated 
438.29 	money.
439.1 	(d) The commissioner must develop program objectives and performance measures for 
439.2 	evaluating progress toward achieving the objectives. The commissioner must identify the 
439.3 	objectives, performance measures, and current status of achieving the measures in a biennial 
439.4 	report to the chairs and ranking minority members of relevant legislative committees and 
439.5 	divisions. The report is due no later than January 15 each even-numbered year. The report 
439.6 	must include, when possible, the following objectives:
439.7 	(1) centering and including the lived experiences of children and youth, including those 
439.8 	with disabilities and mental illness and their families, in all aspects of the department's work;
439.9 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
439.10 	children and youth facing racial, economic, or geographic inequities;
439.11 	(3) increasing coordination and reducing inefficiencies among the department's programs 
439.12 	and the funding sources that support the programs;
439.13 	(4) increasing the alignment and coordination of family access to child care and early 
439.14 	learning programs and improving systems of support for early childhood and learning 
439.15 	providers and services;
439.16 	(5) improving the connection between the department's programs and the kindergarten 
439.17 	through grade 12 and higher education systems; and
439.18 	(6) minimizing and streamlining the effort required of youth and families to receive 
439.19 	services to which the youth and families are entitled.
439.20 	(e) The commissioner shall administer and supervise the forms of public assistance and 
439.21 	other activities or services that are vested in the commissioner. Administration and 
439.22 	supervision of activities or services includes but is not limited to assuring timely and accurate 
439.23 	distribution of benefits, completeness of service, and quality program management. In 
439.24 	addition to administering and supervising activities vested by law in the department, the 
439.25 	commissioner has the authority to:
439.26 	(1) require county agency participation in training and technical assistance programs to 
439.27 	promote compliance with statutes, rules, federal laws, regulations, and policies governing 
439.28 	the programs and activities administered by the commissioner;
439.29 	(2) monitor, on an ongoing basis, the performance of county agencies in the operation 
439.30 	and administration of activities and programs; enforce compliance with statutes, rules, 
439.31 	federal laws, regulations, and policies governing welfare services; and promote excellence 
439.32 	of administration and program operation;
440.1 	(3) develop a quality control program or other monitoring program to review county 
440.2 	performance and accuracy of benefit determinations;
440.3 	(4) require county agencies to make an adjustment to the public assistance benefits issued 
440.4 	to any individual consistent with federal law and regulation and state law and rule and to 
440.5 	issue or recover benefits as appropriate;
440.6 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
440.7 	administrative reimbursement according to the procedures set forth in section 142A.10;
440.8 	(6) make contracts with and grants to public and private agencies and organizations, 
440.9 	both for-profit and nonprofit, and individuals, using appropriated funds; and
440.10 	(7) enter into contractual agreements with federally recognized Indian Tribes with a 
440.11 	reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved 
440.12 	family assistance program or any other program under the supervision of the commissioner. 
440.13 	The commissioner shall consult with the affected county or counties in the contractual 
440.14 	agreement negotiations, if the county or counties wish to be included, in order to avoid the 
440.15 	duplication of county and Tribal assistance program services. The commissioner may 
440.16 	establish necessary accounts for the purposes of receiving and disbursing funds as necessary 
440.17 	for the operation of the programs.
440.18 	The commissioner shall work in conjunction with the commissioner of human services to 
440.19 	carry out the duties of this paragraph when necessary and feasible.
440.20 	(f) The commissioner shall inform county agencies, on a timely basis, of changes in 
440.21 	statute, rule, federal law, regulation, and policy necessary to county agency administration 
440.22 	of the programs and activities administered by the commissioner.
440.23 	(g) The commissioner shall administer and supervise child welfare activities, including 
440.24 	promoting the enforcement of laws preventing child maltreatment and protecting children 
440.25 	with a disability and children who are in need of protection or services, licensing and 
440.26 	supervising child care and child-placing agencies, and supervising the care of children in 
440.27 	foster care. The commissioner shall coordinate with the commissioner of human services 
440.28 	on activities impacting children overseen by the Department of Human Services, such as 
440.29 	disability services, behavioral health, and substance use disorder treatment.
440.30 	(h) The commissioner shall assist and cooperate with local, state, and federal departments, 
440.31 	agencies, and institutions.
441.1 	(i) The commissioner shall establish and maintain any administrative units reasonably 
441.2 	necessary for the performance of administrative functions common to all divisions of the 
441.3 	department.
441.4 	(j) The commissioner shall act as designated guardian of children pursuant to chapter 
441.5 	260C. For children under the guardianship of the commissioner or a Tribe in Minnesota 
441.6 	recognized by the Secretary of the Interior whose interests would be best served by adoptive 
441.7 	placement, the commissioner may contract with a licensed child-placing agency or a 
441.8 	Minnesota Tribal social services agency to provide adoption services. For children in 
441.9 	out-of-home care whose interests would be best served by a transfer of permanent legal and 
441.10 	physical custody to a relative under section 260C.515, subdivision 4, or equivalent in Tribal 
441.11 	code, the commissioner may contract with a licensed child-placing agency or a Minnesota 
441.12 	Tribal social services agency to provide permanency services. A contract with a licensed 
441.13 	child-placing agency must be designed to supplement existing county efforts and may not 
441.14 	replace existing county programs or Tribal social services, unless the replacement is agreed 
441.15 	to by the county board and the appropriate exclusive bargaining representative, Tribal 
441.16 	governing body, or the commissioner has evidence that child placements of the county 
441.17 	continue to be substantially below that of other counties. Funds encumbered and obligated 
441.18 	under an agreement for a specific child shall remain available until the terms of the agreement 
441.19 	are fulfilled or the agreement is terminated.
441.20 	(k) The commissioner has the authority to conduct and administer experimental projects 
441.21 	to test methods and procedures of administering assistance and services to recipients or 
441.22 	potential recipients of public benefits. To carry out the experimental projects, the 
441.23 	commissioner may waive the enforcement of existing specific statutory program 
441.24 	requirements, rules, and standards in one or more counties. The order establishing the waiver 
441.25 	must provide alternative methods and procedures of administration and must not conflict 
441.26 	with the basic purposes, coverage, or benefits provided by law. No project under this 
441.27 	paragraph shall exceed four years. No order establishing an experimental project as authorized 
441.28 	by this paragraph is effective until the following conditions have been met:
441.29 	(1) the United States Secretary of Health and Human Services has agreed, for the same 
441.30 	project, to waive state plan requirements relative to statewide uniformity; and
441.31 	(2) a comprehensive plan, including estimated project costs, has been approved by the 
441.32 	Legislative Advisory Commission and filed with the commissioner of administration.
441.33 	(l) The commissioner shall, according to federal requirements and in coordination with 
441.34 	the commissioner of human services, establish procedures to be followed by local welfare 
442.1 	boards in creating citizen advisory committees, including procedures for selection of 
442.2 	committee members.
442.3 	(m) The commissioner shall allocate federal fiscal disallowances or sanctions that are 
442.4 	based on quality control error rates for the aid to families with dependent children (AFDC) 
442.5 	program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition 
442.6 	Assistance Program (SNAP) in the following manner:
442.7 	(1) one-half of the total amount of the disallowance shall be borne by the county boards 
442.8 	responsible for administering the programs. For AFDC, disallowances shall be shared by 
442.9 	each county board in the same proportion as that county's expenditures to the total of all 
442.10 	counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county 
442.11 	board, with 50 percent of the sanction being distributed to each county in the same proportion 
442.12 	as that county's administrative costs for SNAP benefits are to the total of all SNAP 
442.13 	administrative costs for all counties, and 50 percent of the sanctions being distributed to 
442.14 	each county in the same proportion as that county's value of SNAP benefits issued are to 
442.15 	the total of all benefits issued for all counties. Each county shall pay its share of the 
442.16 	disallowance to the state of Minnesota. When a county fails to pay the amount due under 
442.17 	this paragraph, the commissioner may deduct the amount from reimbursement otherwise 
442.18 	due the county, or the attorney general, upon the request of the commissioner, may institute 
442.19 	civil action to recover the amount due; and
442.20 	(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing 
442.21 	noncompliance by one or more counties with a specific program instruction, and that knowing 
442.22 	noncompliance is a matter of official county board record, the commissioner may require 
442.23 	payment or recover from the county or counties, in the manner prescribed in clause (1), an 
442.24 	amount equal to the portion of the total disallowance that resulted from the noncompliance 
442.25 	and may distribute the balance of the disallowance according to clause (1).
442.26 	(n) The commissioner shall develop and implement special projects that maximize 
442.27 	reimbursements and result in the recovery of money to the state. For the purpose of recovering 
442.28 	state money, the commissioner may enter into contracts with third parties. Any recoveries 
442.29 	that result from projects or contracts entered into under this paragraph shall be deposited 
442.30 	in the state treasury and credited to a special account until the balance in the account reaches 
442.31 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
442.32 	transferred and credited to the general fund. All money in the account is appropriated to the 
442.33 	commissioner for the purposes of this paragraph.
443.1 	(o) The commissioner has the authority to establish and enforce the following county 
443.2 	reporting requirements:
443.3 	(1) the commissioner shall establish fiscal and statistical reporting requirements necessary 
443.4 	to account for the expenditure of funds allocated to counties for programs administered by 
443.5 	the commissioner. When establishing financial and statistical reporting requirements, the 
443.6 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
443.7 	the reports can be simplified or the number of reports can be reduced;
443.8 	(2) the county board shall submit monthly or quarterly reports to the department as 
443.9 	required by the commissioner. Monthly reports are due no later than 15 working days after 
443.10 	the end of the month. Quarterly reports are due no later than 30 calendar days after the end 
443.11 	of the quarter, unless the commissioner determines that the deadline must be shortened to 
443.12 	20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss 
443.13 	of federal funding. Only reports that are complete, legible, and in the required format shall 
443.14 	be accepted by the commissioner;
443.15 	(3) if the required reports are not received by the deadlines established in clause (2), the 
443.16 	commissioner may delay payments and withhold funds from the county board until the next 
443.17 	reporting period. When the report is needed to account for the use of federal funds and the 
443.18 	late report results in a reduction in federal funding, the commissioner shall withhold from 
443.19 	the county boards with late reports an amount equal to the reduction in federal funding until 
443.20 	full federal funding is received;
443.21 	(4) a county board that submits reports that are late, illegible, incomplete, or not in the 
443.22 	required format for two out of three consecutive reporting periods is considered 
443.23 	noncompliant. When a county board is found to be noncompliant, the commissioner shall 
443.24 	notify the county board of the reason the county board is considered noncompliant and 
443.25 	request that the county board develop a corrective action plan stating how the county board 
443.26 	plans to correct the problem. The corrective action plan must be submitted to the 
443.27 	commissioner within 45 days after the date the county board received notice of 
443.28 	noncompliance;
443.29 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after 
443.30 	the date the report was originally due. If the commissioner does not receive a report by the 
443.31 	final deadline, the county board forfeits the funding associated with the report for that 
443.32 	reporting period and the county board must repay any funds associated with the report 
443.33 	received for that reporting period;
444.1 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
444.2 	under clause (3) or (5) if the county demonstrates that the commissioner failed to provide 
444.3 	appropriate forms, guidelines, and technical assistance to enable the county to comply with 
444.4 	the requirements. If the county board disagrees with an action taken by the commissioner 
444.5 	under clause (3) or (5), the county board may appeal the action according to sections 14.57 
444.6 	to 14.69; and
444.7 	(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment 
444.8 	of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover 
444.9 	costs incurred due to actions taken by the commissioner under clause (3) or (5).
444.10 	(p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit 
444.11 	exceptions when federal fiscal disallowances or sanctions are based on a statewide random 
444.12 	sample in direct proportion to each county's claim for that period.
444.13 	(q) The commissioner is responsible for ensuring the detection, prevention, investigation, 
444.14 	and resolution of fraudulent activities or behavior by applicants, recipients, and other 
444.15 	participants in the programs administered by the department. The commissioner shall 
444.16 	cooperate with the commissioner of education to enforce the requirements for program 
444.17 	integrity and fraud prevention for investigation for child care assistance under chapter 142E.
444.18 	(r) The commissioner shall require county agencies to identify overpayments, establish 
444.19 	claims, and utilize all available and cost-beneficial methodologies to collect and recover 
444.20 	these overpayments in the programs administered by the department.
444.21 	(s) The commissioner shall develop recommended standards for child foster care homes 
444.22 	that address the components of specialized therapeutic services to be provided by child 
444.23 	foster care homes with those services.
444.24 	(t) The commissioner shall authorize the method of payment to or from the department 
444.25 	as part of the programs administered by the department. This authorization includes the 
444.26 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
444.27 	the programs administered by the department.
444.28 	(u) In coordination with the commissioner of human services, the commissioner shall 
444.29 	create and provide county and Tribal agencies with blank applications, affidavits, and other 
444.30 	forms as necessary for public assistance programs.
444.31 	(v) The commissioner shall cooperate with the federal government and its public welfare 
444.32 	agencies in any reasonable manner as may be necessary to qualify for federal aid for 
444.33 	temporary assistance for needy families and in conformity with Title I of Public Law 104-193, 
445.1 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
445.2 	amendments, including making reports that contain information required by the federal 
445.3 	Social Security Advisory Board and complying with any provisions the board may find 
445.4 	necessary to assure the correctness and verification of the reports.
445.5 	(w) On or before January 15 in each even-numbered year, the commissioner shall make 
445.6 	a biennial report to the governor concerning the activities of the agency.
445.7 	(x) The commissioner shall enter into agreements with other departments of the state as 
445.8 	necessary to meet all requirements of the federal government.
445.9 	(y) The commissioner may cooperate with other state agencies in establishing reciprocal 
445.10 	agreements in instances where a child receiving Minnesota family investment program 
445.11 	(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out 
445.12 	of the state, in order that the child may continue to receive MFIP or equivalent aid from the 
445.13 	state moved from until the child has resided for one year in the state moved to.
445.14 	(z) The commissioner shall provide appropriate technical assistance to county agencies 
445.15 	to develop methods to have county financial workers remind and encourage recipients of 
445.16 	aid to families with dependent children, the Minnesota family investment program, the 
445.17 	Minnesota family investment plan, family general assistance, or SNAP benefits whose 
445.18 	assistance unit includes at least one child under the age of five to have each young child 
445.19 	immunized against childhood diseases. The commissioner must examine the feasibility of 
445.20 	utilizing the capacity of a statewide computer system to assist county agency financial 
445.21 	workers in performing this function at appropriate intervals.
445.22 	(aa) The commissioner shall have the power and authority to accept on behalf of the 
445.23 	state contributions and gifts for the use and benefit of children under the guardianship or 
445.24 	custody of the commissioner. The commissioner may also receive and accept on behalf of 
445.25 	such children money due and payable to them as old age and survivors insurance benefits, 
445.26 	veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions, 
445.27 	and benefits under this paragraph must be deposited in and disbursed from the social welfare 
445.28 	fund provided for in sections 256.88 to 256.92.
445.29 	(bb) The specific enumeration of powers and duties in this section must not be construed 
445.30 	to be a limitation upon the general powers granted to the commissioner.

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

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

446.16 	Sec. 4. Minnesota Statutes 2024, section 260.821, subdivision 2, is amended to read:
446.17 		Subd. 2.Special focus grants. The amount available for grants established under section 
446.18 	260.785, subdivision 2, for child-placing agencies, Tribes, Indian organizations, and other 
446.19 	social services organizations is one-fifth of the total annual appropriation for Indian child 
446.20 	welfare grants. The maximum award under this subdivision is $100,000 a year for programs 
446.21 	approved by the commissioner.

446.22 	Sec. 5. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
446.23 	FAMILIES; CHILD WELFARE FISCAL ANALYSIS.
 446.24 		Subdivision 1.Child welfare fiscal analysis. The commissioner of children, youth, and 
446.25 	families must contract with a third-party consultant selected according to subdivision 2 to 
446.26 	conduct a fiscal analysis to identify and make recommendations on how to best utilize all 
446.27 	available child welfare funding streams and federal resources for supporting children, 
446.28 	families, and county and Tribal child welfare service providers across Minnesota.
446.29 		Subd. 2.Fiscal analysis consultant selection. The commissioner, with input from the 
446.30 	Association of Minnesota Counties, the Minnesota Indian Affairs Council, community 
446.31 	nonprofits, community providers, and other child welfare system stakeholders, must select 
447.1 	an independent third-party consultant to conduct the fiscal analysis required under this 
447.2 	section. The consultant must have expertise in and experience with child welfare systems 
447.3 	and conducting fiscal analyses.
447.4 		Subd. 3.Child welfare fiscal analysis requirements. When conducting the child welfare 
447.5 	fiscal analysis under this section, the third-party consultant must evaluate:
447.6 	(1) financial systems in Minnesota's child welfare system and funding sources available 
447.7 	to the child welfare system; and
447.8 	(2) state, county, and Tribal access to and use of funding or reimbursements for expenses 
447.9 	related to child welfare, including but not limited to legal representation, training, and 
447.10 	prevention services, under federal Title IV-E and Title IV-B, the federal Child Abuse 
447.11 	Prevention and Treatment Act, TANF, Medicaid, the federal Social Services Block Grant 
447.12 	Program, and other federal funds.
447.13 		Subd. 4.Stakeholder engagement. The third-party consultant conducting the fiscal 
447.14 	analysis under this section must engage with community child welfare service providers; 
447.15 	state, county, and Tribal social services agencies; and other individuals or organizations 
447.16 	with expertise in child welfare services, as the consultant determines to be appropriate.
447.17 		Subd. 5.Report on fiscal analysis. By June 30, 2027, the third-party consultant 
447.18 	conducting the child welfare fiscal analysis under this section must submit a report to the 
447.19 	commissioner of children, youth, and families and the chairs and ranking minority members 
447.20 	of the legislative committees with jurisdiction over the child welfare system. The report 
447.21 	must include the findings from the fiscal analysis required in this section and 
447.22 	recommendations on:
447.23 	(1) how to maximize the state's receipt and use of child welfare funding streams and 
447.24 	federal resources; and
447.25 	(2) legislative proposals for any statutory or funding changes necessary to maximize the 
447.26 	state's receipt and use of child welfare funding streams and federal resources.
447.27 		Subd. 6.Tribal participation. Each of Minnesota's 11 federally recognized Tribal 
447.28 	Nations may participate in the fiscal analysis required under this section. Tribal Nations 
447.29 	that choose to participate have sovereignty over data they choose to share with the consultant, 
447.30 	or other individuals or entities, and may request that their data not be included in any public 
447.31 	documents.

448.1 	Sec. 6. SCAN OF AND REPORT ON OUT-OF-SCHOOL AND YOUTH 
448.2 	PROGRAMMING.
 448.3 	(a) The commissioner of children, youth, and families must conduct a scan of 
448.4 	out-of-school and youth programming for youth under 21 years of age. The scan may include 
448.5 	a review of existing reports, targeted interviews, surveys, and other methodologies, as 
448.6 	determined by the commissioner.
448.7 	(b) When conducting the scan, the commissioner must collaborate with community 
448.8 	organizations and programming providers who provide out-of-school and youth 
448.9 	programming; parents, youth, and families who participate or have participated in 
448.10 	out-of-school and youth programming; and other individuals with expertise in out-of-school 
448.11 	and youth programming in order to:
448.12 	(1) identify different avenues for gathering information; and
448.13 	(2) collaborate in the outreach and facilitation of focused community engagement.
448.14 	(c) By July 1, 2026, the commissioner must prepare and submit a final report to the 
448.15 	chairs and ranking minority members of the legislative committees with jurisdiction over 
448.16 	children, youth, and families. The commissioner may contract with consultants to help with 
448.17 	the development of the report. The report must include:
448.18 	(1) information on current federal, state, Tribal, county, and city out-of-school and youth 
448.19 	programs;
448.20 	(2) school districts that offer enrichment activities;
448.21 	(3) information on availability and amount of funding sources, the costs to provide the 
448.22 	out-of-school and youth programs, and the costs of the programs for families;
448.23 	(4) any barriers and gaps for families to participate in the out-of-school and youth 
448.24 	programming, as identified by findings from the scan under paragraph (a) and in discussions 
448.25 	with community members and program providers;
448.26 	(5) information on the populations participating in out-of-school and youth programming;
448.27 	(6) differences in programming needs, opportunities, and accessibility between different 
448.28 	demographics and different regions of Minnesota; and
448.29 	(7) recommendations on policy and funding needs, including recommending potential 
448.30 	partners for program delivery to expand access to quality out-of-school and youth 
448.31 	programming.
449.1 	(d) By July 1, 2026, the commissioner must present the final report to the chairs and 
449.2 	ranking minority members of the legislative committees with jurisdiction over children, 
449.3 	youth, and families.

449.4 	ARTICLE 18
449.5 	CHILD PROTECTION AND WELFARE POLICY

449.6 	Section 1. Minnesota Statutes 2024, section 142B.01, subdivision 15, is amended to read:
449.7 		Subd. 15.Individual who is related. "Individual who is related" means a spouse, a 
449.8 	parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, 
449.9 	a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, or a legal guardian.
449.10 	For purposes of family child foster care, individual who is related also includes an individual 
449.11 	who, prior to the child's placement in the individual's home for foster care or adoption, is 
449.12 	an important individual of the child or of the child's parent or custodian. Important individual 
449.13 	means an individual with whom the child has resided or had significant contact or who has 
449.14 	a significant relationship to the child or the child's parent or custodian.

449.15 	Sec. 2. Minnesota Statutes 2024, section 142B.05, subdivision 3, is amended to read:
449.16 		Subd. 3.Foster care by an individual who is related to a child; license required. (a) 
449.17 	Notwithstanding subdivision 2, paragraph (a), clause (1), in order to provide foster care for 
449.18 	a child, an individual who is related to the child, other than a parent, or legal guardian, must 
449.19 	be licensed by the commissioner except as provided by section 142B.06.
449.20 	(b) An individual who is related to the child may seek foster care licensure through the 
449.21 	county agency or a private agency in the community designated or licensed by the 
449.22 	commissioner. The county agency, depending on funding available, must provide information 
449.23 	to all potential relative foster care providers about this choice, including information about 
449.24 	available private agencies for foster care licensure.
449.25 	(c) If an individual who is related to a child is seeking licensure to provide foster care 
449.26 	for the child and the individual has a domestic partner but is not married to the domestic 
449.27 	partner, only the individual related to the child must be licensed to provide foster care. The 
449.28 	commissioner must conduct background studies on household members according to section 
449.29 	245C.03, subdivision 1.

450.1 	Sec. 3. Minnesota Statutes 2024, section 142B.47, is amended to read:
450.2 	142B.47 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT DEATH 
450.3 	AND ABUSIVE HEAD TRAUMA FOR CHILD FOSTER CARE PROVIDERS.
450.4 	(a) Licensed child foster care providers, except individuals related to the child who only 
450.5 	care for a relative child, that care for infants or children through five years of age must 
450.6 	document that before caregivers assist in the care of infants or children through five years 
450.7 	of age, they the caregivers are instructed on the standards in section 142B.46 and receive 
450.8 	training on reducing the risk of sudden unexpected infant death and abusive head trauma 
450.9 	from shaking infants and young children. Licensed child foster care providers who are 
450.10 	related to the child and who only care for a relative child must document completion of the 
450.11 	training required under this section within 30 days after licensure. This section does not 
450.12 	apply to emergency relative placement under section 142B.06. The training on reducing 
450.13 	the risk of sudden unexpected infant death and abusive head trauma may be provided as:
450.14 	(1) orientation training to child foster care providers who care for infants or children 
450.15 	through five years of age under Minnesota Rules, part 2960.3070, subpart 1; or
450.16 	(2) in-service training to child foster care providers who care for infants or children 
450.17 	through five years of age under Minnesota Rules, part 2960.3070, subpart 2.
450.18 	(b) Training required under this section must be at least one hour in length and must be 
450.19 	completed at least once every five years. At a minimum, the training must address the risk 
450.20 	factors related to sudden unexpected infant death and abusive head trauma, means of reducing 
450.21 	the risk of sudden unexpected infant death and abusive head trauma, and license holder 
450.22 	communication with parents regarding reducing the risk of sudden unexpected infant death 
450.23 	and abusive head trauma.
450.24 	(c) Training for child foster care providers must be approved by the county or private 
450.25 	licensing agency that is responsible for monitoring the child foster care provider under 
450.26 	section 142B.30. The approved training fulfills, in part, training required under Minnesota 
450.27 	Rules, part 2960.3070.

450.28 	Sec. 4. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
450.29 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
450.30 	licensed by the Department of Human Services under chapter 245A or the Department of 
450.31 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
450.32 	serve a child or children under eight years of age must document training that fulfills the 
450.33 	requirements in this subdivision.
451.1 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
451.2 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
451.3 	training on the proper use and installation of child restraint systems in motor vehicles. 
451.4 	Training completed under this section may be used to meet initial or ongoing training under 
451.5 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
451.6 	(c) Training required under this section must be completed at orientation or initial training 
451.7 	and repeated at least once every five years. At a minimum, the training must address the 
451.8 	proper use of child restraint systems based on the child's size, weight, and age, and the 
451.9 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
451.10 	holder to transport the child or children.
451.11 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
451.12 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
451.13 	holders may obtain a list of certified and approved trainers through the Department of Public 
451.14 	Safety website or by contacting the agency.
451.15 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
451.16 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
451.17 	for a relative who completes a child seat safety check up. The child seat safety check up 
451.18 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
451.19 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
451.20 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
451.21 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
451.22 	a license and may transport a relative foster child younger than eight years of age. A child 
451.23 	seat safety check up must be completed each time a child requires a different size car seat 
451.24 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
451.25 	complete training that meets the other requirements of this subdivision prior to placement 
451.26 	of another foster child younger than eight years of age in the home or prior to the renewal 
451.27 	of the child foster care license.
451.28 	(f) Notwithstanding paragraph (b), a child foster care license holder who is an individual 
451.29 	related to the child, and who only serves a relative child, must document completion of the 
451.30 	training required under this section within 30 days after licensure.

452.1 	Sec. 5. Minnesota Statutes 2024, section 142B.80, is amended to read:
452.2 	142B.80 CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL 
452.3 	HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING.
452.4 	Prior to a nonemergency placement of a child in a foster care home, the child foster care 
452.5 	license holder and caregivers in foster family and treatment foster care settings must complete 
452.6 	two hours of training that addresses the causes, symptoms, and key warning signs of mental 
452.7 	health disorders; cultural considerations; and effective approaches for dealing with a child's 
452.8 	behaviors. At least one hour of the annual training requirement for the foster family license 
452.9 	holder and caregivers must be on children's mental health issues and treatment. Except for 
452.10 	providers and services under chapter 245D and child foster care license holders who are 
452.11 	individuals related to the child who only serve a relative child who does not have fetal 
452.12 	alcohol spectrum disorder, the annual training must also include at least one hour of training 
452.13 	on fetal alcohol spectrum disorders, which must be counted toward the 12 hours of required 
452.14 	in-service training per year. Short-term substitute caregivers are exempt from these 
452.15 	requirements. Training curriculum shall be approved by the commissioner of children, 
452.16 	youth, and families.

452.17 	Sec. 6. [142B.81] CHILD FOSTER CARE TRAINING; RELATIVE CAREGIVERS.
452.18 	Notwithstanding the required hours under Minnesota Rules, part 2960.3070, subpart 2, 
452.19 	a child foster care license holder who is an individual related to the child must complete a 
452.20 	minimum of six hours of in-service training per year in one or more of the areas in Minnesota 
452.21 	Rules, part 2960.3070, subpart 2, or in other areas as agreed upon by the licensing agency 
452.22 	and the foster parent. The relative child foster care license holder must consult with the 
452.23 	licensing agency and complete training in areas that are most applicable to caring for the 
452.24 	relative children in foster care in the home. This section does not apply to a child foster care 
452.25 	license holder who is licensed to care for both a relative child and a nonrelative child.

452.26 	Sec. 7. Minnesota Statutes 2024, section 245C.02, is amended by adding a subdivision to 
452.27 	read:
452.28 		Subd. 16b.Relative. "Relative" has the meaning given in section 260C.007, subdivision 
452.29 	27. For purposes of background studies affiliated with child foster care licensure, a person 
452.30 	is a relative if the person was known to the child or the child's parent before the child is 
452.31 	placed in foster care.

453.1 	Sec. 8. Minnesota Statutes 2024, section 245C.15, subdivision 4a, is amended to read:
453.2 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
453.3 	subdivisions 1 to 4, for a background study affiliated with a licensed family foster setting, 
453.4 	regardless of how much time has passed, an individual is disqualified under section 245C.14 
453.5 	if the individual committed an act that resulted in a felony-level conviction for sections: 
453.6 	609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder 
453.7 	in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in 
453.8 	the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first 
453.9 	degree);609.223, subdivision 2 (assault in the third degree, past pattern of child abuse); 
453.10 	609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense 
453.11 	under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or 
453.12 	neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325 
453.13 	(criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245 
453.14 	(aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree); 
453.15 	609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child 
453.16 	in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663 
453.17 	(murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child 
453.18 	in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 
453.19 	609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child 
453.20 	in the second degree); 609.268 (injury or death of an unborn child in the commission of a 
453.21 	crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex 
453.22 	trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in, 
453.23 	hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct 
453.24 	in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal 
453.25 	sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 
453.26 	609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory 
453.27 	conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual 
453.28 	conduct); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of 
453.29 	a child); 609.561 (arson in the first degree); 609.582, subdivision 1 (burglary in the first 
453.30 	degree); 609.746 (interference with privacy); 617.23 (indecent exposure); 617.246 (use of 
453.31 	minors in sexual performance prohibited); or 617.247 (possession of pictorial representations 
453.32 	of minors).
453.33 	(b) Notwithstanding subdivisions 1 to 4, for the purposes of a background study affiliated 
453.34 	with a licensed family foster setting, an individual is disqualified under section 245C.14, 
453.35 	regardless of how much time has passed, if the individual:
454.1 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
454.2 	abuse, as defined in section 260E.03, subdivision 20;
454.3 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
454.4 	609.3451 (criminal sexual conduct in the fifth degree);
454.5 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
454.6 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
454.7 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
454.8 	or
454.9 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
454.10 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
454.11 	(c) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
454.12 	family foster setting,:
454.13 	(1) an individual is disqualified under section 245C.14 if fewer than 20 years have passed 
454.14 	since the termination of the individual's parental rights under section 260C.301, subdivision 
454.15 	1, paragraph (b), or if the individual consented to a termination of parental rights under 
454.16 	section 260C.301, subdivision 1, paragraph (a), to settle a petition to involuntarily terminate 
454.17 	parental rights. An individual is disqualified under section 245C.14 if fewer than 20 years 
454.18 	have passed since the termination of the individual's parental rights in any other state or 
454.19 	country, where the conditions for the individual's termination of parental rights are 
454.20 	substantially similar to the conditions in section 260C.301, subdivision 1, paragraph (b); or
454.21 	(2) when an individual is a relative of the child in foster care, an individual is disqualified 
454.22 	under section 245C.14 if fewer than seven years have passed since the termination of the 
454.23 	individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or if the 
454.24 	individual consented to a termination of parental rights under section 260C.301, subdivision 
454.25 	1, paragraph (a), to settle a petition to involuntarily terminate parental rights. An individual 
454.26 	is disqualified under section 245C.14 if fewer than seven years have passed since the 
454.27 	termination of the individual's parental rights in any other state or country, where the 
454.28 	conditions for the individual's termination of parental rights are substantially similar to the 
454.29 	conditions in section 260C.301, subdivision 1, paragraph (b).
454.30 	(d) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
454.31 	family foster setting, an individual is disqualified under section 245C.14 if fewer than five 
454.32 	years have passed since a felony-level violation for sections: 152.021 (controlled substance 
454.33 	crime in the first degree); 152.022 (controlled substance crime in the second degree); 152.023 
454.34 	(controlled substance crime in the third degree); 152.024 (controlled substance crime in the 
455.1 	fourth degree); 152.025 (controlled substance crime in the fifth degree); 152.0261 (importing 
455.2 	controlled substances across state borders); 152.0262, subdivision 1, paragraph (b) 
455.3 	(possession of substance with intent to manufacture methamphetamine); 152.027, subdivision 
455.4 	6, paragraph (c) (sale or possession of synthetic cannabinoids); 152.096 (conspiracies 
455.5 	prohibited); 152.097 (simulated controlled substances); 152.136 (anhydrous ammonia; 
455.6 	prohibited conduct; criminal penalties; civil liabilities); 152.137 (methamphetamine-related 
455.7 	crimes involving children or vulnerable adults); 169A.24 (felony first-degree driving while 
455.8 	impaired); 243.166 (violation of predatory offender registration requirements); 609.2113 
455.9 	(criminal vehicular operation; bodily harm); 609.2114 (criminal vehicular operation; unborn 
455.10 	child); 609.221 (assault in the first degree); 609.228 (great bodily harm caused by distribution 
455.11 	of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in the death of a 
455.12 	vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure or facilitate 
455.13 	a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the third degree); 
455.14 	609.322, subdivision 1a (solicitation, inducement, and promotion of prostitution; sex 
455.15 	trafficking in the second degree); 609.498, subdivision 1 (tampering with a witness in the 
455.16 	first degree); 609.498, subdivision 1b (aggravated first-degree witness tampering); 609.562 
455.17 	(arson in the second degree); 609.563 (arson in the third degree); 609.582, subdivision 2 
455.18 	(burglary in the second degree); 609.66 (felony dangerous weapons); 609.687 (adulteration); 
455.19 	609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5 (felony-level harassment or 
455.20 	stalking); 609.855, subdivision 5 (shooting at or in a public transit vehicle or facility); or 
455.21 	624.713 (certain people not to possess firearms).
455.22 	(e) Notwithstanding subdivisions 1 to 4, except as provided in paragraph (a), for a 
455.23 	background study affiliated with a licensed family child foster care license, an individual 
455.24 	is disqualified under section 245C.14 if fewer than five years have passed since:
455.25 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
455.26 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
455.27 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
455.28 	fifth degree);
455.29 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
455.30 	(3) a determination or disposition of the individual's failure to make required reports 
455.31 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
455.32 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
455.33 	was recurring or serious;
456.1 	(4) a determination or disposition of the individual's substantiated serious or recurring 
456.2 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
456.3 	serious or recurring maltreatment in any other state, the elements of which are substantially 
456.4 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
456.5 	the definition of serious maltreatment or recurring maltreatment;
456.6 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
456.7 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
456.8 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
456.9 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
456.10 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
456.11 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
456.12 	(f) For purposes of this subdivision, the disqualification begins from:
456.13 	(1) the date of the alleged violation, if the individual was not convicted;
456.14 	(2) the date of conviction, if the individual was convicted of the violation but not 
456.15 	committed to the custody of the commissioner of corrections; or
456.16 	(3) the date of release from prison, if the individual was convicted of the violation and 
456.17 	committed to the custody of the commissioner of corrections.
456.18 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
456.19 	of the individual's supervised release, the disqualification begins from the date of release 
456.20 	from the subsequent incarceration.
456.21 	(g) Notwithstanding paragraph (f), for purposes of paragraph (d), the disqualification 
456.22 	begins from the date of the alleged violation when the individual is a relative of the child 
456.23 	in foster care.
456.24 	(h) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
456.25 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
456.26 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
456.27 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
456.28 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
456.29 	(d) and (e).
456.30 	(h) (i) An individual's offense in any other state or country, where the elements of the 
456.31 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
456.32 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
456.33 	under section 245C.14 if fewer than five years have passed since an offense in any other 
457.1 	state or country, the elements of which are substantially similar to the elements of any 
457.2 	offense listed in paragraphs (d) and (e).

457.3 	Sec. 9. Minnesota Statutes 2024, section 260.65, is amended to read:
457.4 	260.65 NONCUSTODIAL PARENTS; RELATIVE PLACEMENT.
457.5 	(a) Prior to the removal of an African American or a disproportionately represented child 
457.6 	from the child's home, the responsible social services agency must make active efforts to 
457.7 	identify and locate the child's noncustodial or nonadjudicated parent and the child's relatives 
457.8 	to notify the child's parent and relatives that the child is or will be placed in foster care, and 
457.9 	provide the child's parent and relatives with a list of legal resources. The notice to the child's 
457.10 	noncustodial or nonadjudicated parent and relatives must also include the information 
457.11 	required under section 260C.221, subdivision 2, paragraph (b). The responsible social 
457.12 	services agency must maintain detailed records of the agency's efforts to notify parents and 
457.13 	relatives under this section.
457.14 	(b) Notwithstanding the provisions of section 260C.219, the responsible social services 
457.15 	agency must assess an African American or a disproportionately represented child's 
457.16 	noncustodial or nonadjudicated parent's ability to care for the child before placing the child 
457.17 	in foster care. If a child's noncustodial or nonadjudicated parent is willing and able to provide 
457.18 	daily care for the African American or disproportionately represented child temporarily or 
457.19 	permanently, the court shall order that the child be placed in into the home of the noncustodial 
457.20 	or nonadjudicated parent pursuant to section 260C.178 or 260C.201, subdivision 1. The 
457.21 	responsible social services agency must make active efforts to assist a noncustodial or 
457.22 	nonadjudicated parent with remedying any issues that may prevent the child from being 
457.23 	placed with the ordered into the home of a noncustodial or nonadjudicated parent.
457.24 	(c) The relative search, notice, engagement, and placement consideration requirements 
457.25 	under section 260C.221 apply under this act.

457.26 	Sec. 10. Minnesota Statutes 2024, section 260.66, subdivision 1, is amended to read:
457.27 		Subdivision 1.Emergency removal or placement permitted. Nothing in this section 
457.28 	shall be construed to prevent the emergency removal of an African American or a 
457.29 	disproportionately represented child's parent or custodian child or the emergency placement 
457.30 	of the child in a foster setting in order to prevent imminent physical damage or harm to the 
457.31 	child.

458.1 	Sec. 11. Minnesota Statutes 2024, section 260.691, subdivision 1, is amended to read:
458.2 		Subdivision 1.Establishment and duties. (a) The African American Child and Family 
458.3 	Well-Being Advisory Council is established for the Department of Children, Youth, and 
458.4 	Families.
458.5 	(b) The council shall consist of 31 members appointed by the commissioner and must 
458.6 	include representatives with lived personal or professional experience within African 
458.7 	American communities. Members may include but are not limited to youth who have exited 
458.8 	the child welfare system; parents; legal custodians; relative and kinship caregivers or foster 
458.9 	care providers; community service providers, advocates, and members; county and private 
458.10 	social services agency case managers; representatives from faith-based institutions; academic 
458.11 	professionals; a representative from the Council for Minnesotans of African Heritage; the 
458.12 	Ombudsperson for African American Families; and other individuals with experience and 
458.13 	knowledge of African American communities. Council members must be selected through 
458.14 	an open appointments process under section 15.0597. The terms, compensation, and removal 
458.15 	of council members are governed by section 15.059.
458.16 	(c) The African American Child Well-Being Advisory council must:
458.17 	(1) review annual reports related to African American children involved in the child 
458.18 	welfare system. These reports may include but are not limited to the maltreatment, 
458.19 	out-of-home placement, and permanency of African American children;
458.20 	(2) assist with and make recommendations to the commissioner for developing strategies 
458.21 	to reduce maltreatment determinations, prevent unnecessary out-of-home placement, promote 
458.22 	culturally appropriate foster care and shelter or facility placement decisions and settings for 
458.23 	African American children in need of out-of-home placement, ensure timely achievement 
458.24 	of permanency, and improve child welfare outcomes for African American children and 
458.25 	their families;
458.26 	(3) review summary reports on targeted case reviews prepared by the commissioner to 
458.27 	ensure that responsible social services agencies meet the needs of African American children 
458.28 	and their families. Based on data collected from those reviews, the council shall assist the 
458.29 	commissioner with developing strategies needed to improve any identified child welfare 
458.30 	outcomes, including but not limited to maltreatment, out-of-home placement, and permanency 
458.31 	for African American children;
458.32 	(4) assist the Cultural and Ethnic Communities Leadership Council with making make
458.33 	recommendations to the commissioner and the legislature for public policy and statutory 
459.1 	changes that specifically consider the needs of African American children and their families 
459.2 	involved in the child welfare system;
459.3 	(5) advise the commissioner on stakeholder engagement strategies and actions that the 
459.4 	commissioner and responsible social services agencies may take to improve child welfare 
459.5 	outcomes for African American children and their families;
459.6 	(6) assist the commissioner with developing strategies for public messaging and 
459.7 	communication related to racial disproportionality and disparities in child welfare outcomes 
459.8 	for African American children and their families;
459.9 	(7) assist the commissioner with identifying and developing internal and external 
459.10 	partnerships to support adequate access to services and resources for African American 
459.11 	children and their families, including but not limited to housing assistance, employment 
459.12 	assistance, food and nutrition support, health care, child care assistance, and educational 
459.13 	support and training; and
459.14 	(8) assist the commissioner with developing strategies to promote the development of 
459.15 	a culturally diverse and representative child welfare workforce in Minnesota that includes 
459.16 	professionals who are reflective of the community served and who have been directly 
459.17 	impacted by lived experiences within the child welfare system. The council must also assist 
459.18 	the commissioner with exploring strategies and partnerships to address education and training 
459.19 	needs, hiring, recruitment, retention, and professional advancement practices.

459.20 	Sec. 12. Minnesota Statutes 2024, section 260.692, is amended to read:
459.21 	260.692 AFRICAN AMERICAN CHILD AND FAMILY WELL-BEING UNIT.
459.22 		Subdivision 1.Duties. The African American Child and Family Well-Being Unit, 
459.23 	currently established by the commissioner, must:
459.24 	(1) assist with the development of African American cultural competency training and 
459.25 	review child welfare curriculum in the Minnesota Child Welfare Training Academy to 
459.26 	ensure that responsible social services agency staff and other child welfare professionals 
459.27 	are appropriately prepared to engage with African American children and their families and 
459.28 	to support family preservation and reunification;
459.29 	(2) provide technical assistance, including on-site technical assistance, and case 
459.30 	consultation to responsible social services agencies to assist agencies with implementing 
459.31 	and complying with the Minnesota African American Family Preservation and Child Welfare 
459.32 	Disproportionality Act;
460.1 	(3) monitor individual county and statewide disaggregated and nondisaggregated data 
460.2 	to identify trends and patterns in child welfare outcomes, including but not limited to 
460.3 	reporting, maltreatment, out-of-home placement, and permanency of African American 
460.4 	children and develop strategies to address disproportionality and disparities in the child 
460.5 	welfare system;
460.6 	(4) develop and implement a system for conducting case reviews when the commissioner 
460.7 	receives reports of noncompliance with the Minnesota African American Family Preservation 
460.8 	and Child Welfare Disproportionality Act or when requested by the parent or custodian of 
460.9 	an African American child. Case reviews may include but are not limited to a review of 
460.10 	placement prevention efforts, safety planning, case planning and service provision by the 
460.11 	responsible social services agency, relative placement consideration, and permanency 
460.12 	planning;
460.13 	(5) establish and administer a request for proposals process for African American and 
460.14 	disproportionately represented family preservation grants under section 260.693, monitor 
460.15 	grant activities, and provide technical assistance to grantees;
460.16 	(6) in coordination with the African American Child and Family Well-Being Advisory 
460.17 	Council, coordinate services and create internal and external partnerships to support adequate 
460.18 	access to services and resources for African American children and their families, including 
460.19 	but not limited to housing assistance, employment assistance, food and nutrition support, 
460.20 	health care, child care assistance, and educational support and training; and
460.21 	(7) develop public messaging and communication to inform the public about racial 
460.22 	disparities in child welfare outcomes, current efforts and strategies to reduce racial disparities, 
460.23 	and resources available to African American children and their families involved in the 
460.24 	child welfare system.
460.25 		Subd. 2.Case reviews. (a) The African American Child and Family Well-Being Unit 
460.26 	must conduct systemic case reviews to monitor targeted child welfare outcomes, including 
460.27 	but not limited to maltreatment, out-of-home placement, and permanency of African 
460.28 	American children.
460.29 	(b) The reviews under this subdivision must be conducted using a random sampling of 
460.30 	representative child welfare cases stratified for certain case related factors, including but 
460.31 	not limited to case type, maltreatment type, if the case involves out-of-home placement, 
460.32 	and other demographic variables. In conducting the reviews, unit staff may use court records 
460.33 	and documents, information from the social services information system, and other available 
460.34 	case file information to complete the case reviews.
461.1 	(c) The frequency of the reviews and the number of cases, child welfare outcomes, and 
461.2 	selected counties reviewed shall be determined by the unit in consultation with the African 
461.3 	American Child and Family Well-Being Advisory Council, with consideration given to the 
461.4 	availability of unit resources needed to conduct the reviews.
461.5 	(d) The unit must monitor all case reviews and use the collective case review information 
461.6 	and data to generate summary case review reports, ensure compliance with the Minnesota 
461.7 	African American Family Preservation and Child Welfare Disproportionality Act, and 
461.8 	identify trends or patterns in child welfare outcomes for African American children.
461.9 	(e) The unit must review information from members of the public received through the 
461.10 	compliance and feedback portal, including policy and practice concerns related to individual 
461.11 	child welfare cases. After assessing a case concern, the unit may determine if further 
461.12 	necessary action should be taken, which may include coordinating case remediation with 
461.13 	other relevant child welfare agencies in accordance with data privacy laws, including the 
461.14 	African American Child and Family Well-Being Advisory Council, and offering case 
461.15 	consultation and technical assistance to the responsible local social services agency as 
461.16 	needed or requested by the agency.
461.17 		Subd. 3.Reports. (a) The African American Child and Family Well-Being Unit must 
461.18 	provide regular updates on unit activities, including summary reports of case reviews, to 
461.19 	the African American Child and Family Well-Being Advisory Council, and must publish 
461.20 	an annual census of African American children in out-of-home placements statewide. The 
461.21 	annual census must include data on the types of placements, age and sex of the children, 
461.22 	how long the children have been in out-of-home placements, and other relevant demographic 
461.23 	information.
461.24 	(b) The African American Child and Family Well-Being Unit shall gather summary data 
461.25 	about the practice and policy inquiries and individual case concerns received through the 
461.26 	compliance and feedback portal under subdivision 2, paragraph (e). The unit shall provide 
461.27 	regular reports of the nonidentifying compliance and feedback portal summary data to the 
461.28 	African American Child and Family Well-Being Advisory Council to identify child welfare 
461.29 	trends and patterns to assist with developing policy and practice recommendations to support 
461.30 	eliminating disparity and disproportionality for African American children.

461.31 	Sec. 13. Minnesota Statutes 2024, section 260C.001, subdivision 2, is amended to read:
461.32 		Subd. 2.Juvenile protection proceedings. (a) The paramount consideration in all 
461.33 	juvenile protection proceedings is the health, safety, and best interests of the child. In 
461.34 	proceedings involving an American Indian child, as defined in section 260.755, subdivision 
462.1 	8, the best interests of the child must be determined consistent with sections 260.751 to 
462.2 	260.835 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 
462.3 	1923.
462.4 	(b) The purpose of the laws relating to juvenile protection proceedings is:
462.5 	(1) to secure for each child under the jurisdiction of the court, the care and guidance, 
462.6 	preferably in the child's own home, as will best serve the spiritual, emotional, mental, and 
462.7 	physical welfare of the child;
462.8 	(2) to provide judicial procedures that protect the welfare of the child;
462.9 	(3) to preserve and strengthen the child's family ties whenever possible and in the child's 
462.10 	best interests, removing the child from the custody of parents only when the child's welfare 
462.11 	or safety cannot be adequately safeguarded without removal;
462.12 	(4) to ensure that when removal from the child's own family is necessary and in the 
462.13 	child's best interests, the responsible social services agency has legal responsibility for the 
462.14 	child removal either:
462.15 	(i) pursuant to a voluntary placement agreement between the child's parent or guardian 
462.16 	or the child, when the child is over age 18, and the responsible social services agency; or
462.17 	(ii) by court order pursuant to section 260C.151, subdivision 6; 260C.178; 260C.201; 
462.18 	260C.325; or 260C.515;
462.19 	(5) to ensure that, when placement is pursuant to court order, the court order removing 
462.20 	the child or continuing the child in foster care contains an individualized determination that 
462.21 	placement is in the best interests of the child that coincides with the actual removal of the 
462.22 	child;
462.23 	(6) to ensure that when the child is removed, the child's care and discipline is, as nearly 
462.24 	as possible, equivalent to that which should have been given by the parents and is either in:
462.25 	(i) the home of a noncustodial parent pursuant to section 260C.178 or 260C.201, 
462.26 	subdivision 1, paragraph (a), clause (1);
462.27 	(ii) the home of a relative pursuant to emergency placement by the responsible social 
462.28 	services agency under chapter 245A; or
462.29 	(iii) foster care licensed under chapter 245A; and
462.30 	(7) to ensure appropriate permanency planning for children in foster care including:
463.1 	(i) unless reunification is not required under section 260.012, developing a permanency 
463.2 	plan for the child that includes a primary plan for reunification with the child's parent or 
463.3 	guardian and a secondary plan for an alternative, legally permanent home for the child in 
463.4 	the event reunification cannot be achieved in a timely manner;
463.5 	(ii) identifying, locating, and assessing both parents of the child as soon as possible and 
463.6 	offering reunification services to both parents of the child as required under sections 260.012
463.7 	and 260C.219;
463.8 	(iii) inquiring about the child's heritage, including the child's Tribal lineage pursuant to 
463.9 	section 260.761, and their race, culture, and ethnicity pursuant to section 260.63, subdivision 
463.10 	10;
463.11 	(iii) (iv) identifying, locating, and notifying relatives of both parents of the child according 
463.12 	to section 260C.221;
463.13 	(iv) (v) making a placement with a family that will commit to being the legally permanent 
463.14 	home for the child in the event reunification cannot occur at the earliest possible time while 
463.15 	at the same time actively supporting the reunification plan; and
463.16 	(v) (vi) returning the child home with supports and services, as soon as return is safe for 
463.17 	the child, or when safe return cannot be timely achieved, moving to finalize another legally 
463.18 	permanent home for the child.

463.19 	Sec. 14. Minnesota Statutes 2024, section 260C.007, subdivision 19, is amended to read:
463.20 		Subd. 19.Habitual truant. (a) "Habitual truant" means a child under the age of 17 years 
463.21 	who is absent from attendance at school without lawful excuse for seven school days per 
463.22 	school year if the child is in elementary school or for one or more class periods on seven 
463.23 	school days per school year if the child is in middle school, junior high school, or high 
463.24 	school or a child who is 17 years of age who is absent from attendance at school without 
463.25 	lawful excuse for one or more class periods on seven school days per school year and who 
463.26 	has not lawfully withdrawn from school under section 120A.22, subdivision 8.
463.27 	(b) For the purposes of educational neglect under section 260C.163, subdivision 11, 
463.28 	habitual truant includes a child under 12 years of age who has been absent from school for 
463.29 	seven school days without lawful excuse where the presumption of educational neglect is 
463.30 	rebutted based on a showing by clear and convincing evidence that the child's absence is 
463.31 	not due to the failure of the child's parent, guardian, or custodian to comply with compulsory 
463.32 	instruction laws.

464.1 	Sec. 15. Minnesota Statutes 2024, section 260C.150, subdivision 3, is amended to read:
464.2 		Subd. 3.Identifying parents of child; diligent efforts; data. (a) The responsible social 
464.3 	services agency shall make diligent efforts to inquire about the child's heritage, including 
464.4 	the child's Tribal lineage pursuant to section 260.761 and their race, culture, and ethnicity 
464.5 	pursuant to section 260.63, subdivision 10, and to identify and locate both parents of any 
464.6 	child who is the subject of proceedings under this chapter. Diligent efforts include:
464.7 	(1) asking the custodial or known parent to identify any nonresident parent of the child 
464.8 	and provide information that can be used to verify the nonresident parent's identity including 
464.9 	the dates and locations of marriages and divorces; dates and locations of any legal 
464.10 	proceedings regarding paternity; date and place of the child's birth; nonresident parent's full 
464.11 	legal name; nonresident parent's date of birth, or if the nonresident parent's date of birth is 
464.12 	unknown, an approximate age; the nonresident parent's Social Security number; the 
464.13 	nonresident parent's whereabouts including last known whereabouts; and the whereabouts 
464.14 	of relatives of the nonresident parent. For purposes of this subdivision, "nonresident parent" 
464.15 	means a parent who does not reside in the same household as the child or did not reside in 
464.16 	the same household as the child at the time the child was removed when the child is in foster 
464.17 	care;
464.18 	(2) obtaining information that will identify and locate the nonresident parent from the 
464.19 	county and state of Minnesota child support enforcement information system;
464.20 	(3) requesting a search of the Minnesota Fathers' Adoption Registry 30 days after the 
464.21 	child's birth; and
464.22 	(4) using any other reasonable means to identify and locate the nonresident parent.
464.23 	(b) The agency may disclose data which is otherwise private under section 13.46 or 
464.24 	chapter 260E in order to carry out its duties under this subdivision.
464.25 	(c) Upon the filing of a petition alleging the child to be in need of protection or services, 
464.26 	the responsible social services agency may contact a putative father who registered with 
464.27 	the Minnesota Fathers' Adoption Registry more than 30 days after the child's birth. The 
464.28 	social service agency may consider a putative father for the day-to-day care of the child 
464.29 	under section 260C.219 if the putative father cooperates with genetic testing and there is a 
464.30 	positive test result under section 257.62, subdivision 5. Nothing in this paragraph:
464.31 	(1) relieves a putative father who registered with the Minnesota Fathers' Adoption 
464.32 	Registry more than 30 days after the child's birth of the duty to cooperate with paternity 
464.33 	establishment proceedings under section 260C.219;
465.1 	(2) gives a putative father who registered with the Minnesota Fathers' Adoption Registry 
465.2 	more than 30 days after the child's birth the right to notice under section 260C.151 unless 
465.3 	the putative father is entitled to notice under sections 259.24 and 259.49, subdivision 1, 
465.4 	paragraph (a) or (b), clauses (1) to (7); or
465.5 	(3) establishes a right to assert an interest in the child in a termination of parental rights 
465.6 	proceeding contrary to section 259.52, subdivision 6, unless the putative father is entitled 
465.7 	to notice under sections 259.24 and 259.49, subdivision 1, paragraph (a) or (b), clauses (1) 
465.8 	to (7).

465.9 	Sec. 16. Minnesota Statutes 2024, section 260C.202, subdivision 2, is amended to read:
465.10 		Subd. 2.Court review for a child placed in foster care. (a) If the court orders a child 
465.11 	placed in foster care, the court shall review the out-of-home placement plan and the child's 
465.12 	placement at least every 90 days as required in juvenile court rules to determine whether 
465.13 	continued out-of-home placement is necessary and appropriate or whether the child should 
465.14 	be returned home.
465.15 	(b) This review is not required if the court has returned the child home, ordered the child 
465.16 	permanently placed away from the parent under sections 260C.503 to 260C.521, or 
465.17 	terminated rights under section 260C.301. Court review for a child permanently placed 
465.18 	away from a parent, including where the child is under guardianship of the commissioner, 
465.19 	is governed by section 260C.607.
465.20 	(c) When a child is placed in a qualified residential treatment program setting as defined 
465.21 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
465.22 	evidence to the court as specified in section 260C.712.
465.23 	(d) No later than three months after the child's placement in foster care, the court shall 
465.24 	review agency efforts to search for and notify relatives pursuant to section 260C.221, and 
465.25 	order that the agency's efforts begin immediately, or continue, if the agency has failed to 
465.26 	perform, or has not adequately performed, the duties under that section. The court must 
465.27 	order the agency to continue to appropriately engage relatives who responded to the notice 
465.28 	under section 260C.221 in placement and case planning decisions and to consider relatives 
465.29 	for foster care placement consistent with section 260C.221. Notwithstanding a court's finding 
465.30 	that the agency has made reasonable efforts to search for and notify relatives under section 
465.31 	260C.221, the court may order the agency to continue making reasonable efforts to search 
465.32 	for, notify, engage, and consider relatives who came to the agency's attention after sending 
465.33 	the initial notice under section 260C.221.
466.1 	(e) The court shall review the out-of-home placement plan and may modify the plan as 
466.2 	provided under section 260C.201, subdivisions 6 and 7.
466.3 	(f) When the court transfers the custody of a child to a responsible social services agency 
466.4 	resulting in foster care or protective supervision with a noncustodial parent under subdivision 
466.5 	1, the court shall notify the parents of the provisions of sections 260C.204 and 260C.503 
466.6 	to 260C.521, as required under juvenile court rules.
466.7 	(g) When a child remains in or returns to foster care pursuant to section 260C.451 and 
466.8 	the court has jurisdiction pursuant to section 260C.193, subdivision 6, paragraph (c), the 
466.9 	court shall at least annually conduct the review required under section 260C.203.

466.10 	Sec. 17. Minnesota Statutes 2024, section 260C.204, is amended to read:
466.11 	260C.204 PERMANENCY PROGRESS REVIEW FOR CHILDREN IN FOSTER 
466.12 	CARE FOR SIX MONTHS.
466.13 	(a) When a child continues in placement out of the home of the parent or guardian from 
466.14 	whom the child was removed, no later than six months after the child's placement the court 
466.15 	shall conduct a permanency progress hearing to review:
466.16 	(1) the progress of the case, the parent's progress on the case plan or out-of-home 
466.17 	placement plan, whichever is applicable;
466.18 	(2) the agency's reasonable, or in the case of an Indian child, active efforts for 
466.19 	reunification and its provision of services;
466.20 	(3) the agency's reasonable efforts to finalize the permanent plan for the child under 
466.21 	section 260.012, paragraph (e), and to make a placement as required under section 260C.212, 
466.22 	subdivision 2, in a home that will commit to being the legally permanent family for the 
466.23 	child in the event the child cannot return home according to the timelines in this section; 
466.24 	and
466.25 	(4) in the case of an Indian child, active efforts to prevent the breakup of the Indian 
466.26 	family and to make a placement according to the placement preferences under United States 
466.27 	Code, title 25, chapter 21, section 1915.
466.28 	(b) When a child is placed in a qualified residential treatment program setting as defined 
466.29 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
466.30 	evidence to the court as specified in section 260C.712.
466.31 	(c) The court shall ensure that notice of the hearing is sent to any relative who:
467.1 	(1) responded to the agency's notice provided under section 260C.221, indicating an 
467.2 	interest in participating in planning for the child or being a permanency resource for the 
467.3 	child and who has kept the court apprised of the relative's address; or
467.4 	(2) asked to be notified of court proceedings regarding the child as is permitted in section 
467.5 	260C.152, subdivision 5.
467.6 	(d)(1) If the parent or guardian has maintained contact with the child and is complying 
467.7 	with the court-ordered out-of-home placement plan, and if the child would benefit from 
467.8 	reunification with the parent, the court may either:
467.9 	(i) return the child home, if the conditions that led to the out-of-home placement have 
467.10 	been sufficiently mitigated that it is safe and in the child's best interests to return home; or
467.11 	(ii) continue the matter up to a total of six additional months. If the child has not returned 
467.12 	home by the end of the additional six months, the court must conduct a hearing according 
467.13 	to sections 260C.503 to 260C.521.
467.14 	(2) If the court determines that the parent or guardian is not complying, is not making 
467.15 	progress with or engaging with services in the out-of-home placement plan, or is not 
467.16 	maintaining regular contact with the child as outlined in the visitation plan required as part 
467.17 	of the out-of-home placement plan under section 260C.212, the court may order the 
467.18 	responsible social services agency:
467.19 	(i) to develop a plan for legally permanent placement of the child away from the parent;
467.20 	(ii) to consider, identify, recruit, and support one or more permanency resources from 
467.21 	the child's relatives and foster parent, consistent with clause (3) and section 260C.212, 
467.22 	subdivision 2, paragraph (a), to be the legally permanent home in the event the child cannot 
467.23 	be returned to the parent. Any relative or the child's foster parent may ask the court to order 
467.24 	the agency to consider them for permanent placement of the child in the event the child 
467.25 	cannot be returned to the parent. A relative or foster parent who wants to be considered 
467.26 	under this item shall cooperate with the background study required under section 245C.08, 
467.27 	if the individual has not already done so, and with the home study process required under 
467.28 	chapter 142B for providing child foster care and for adoption under section 259.41. The 
467.29 	home study referred to in this item shall be a single-home study in the form required by the 
467.30 	commissioner of children, youth, and families or similar study required by the individual's 
467.31 	state of residence when the subject of the study is not a resident of Minnesota. The court 
467.32 	may order the responsible social services agency to make a referral under the Interstate 
467.33 	Compact on the Placement of Children when necessary to obtain a home study for an 
468.1 	individual who wants to be considered for transfer of permanent legal and physical custody 
468.2 	or adoption of the child; and
468.3 	(iii) to file a petition to support an order for the legally permanent placement plan.
468.4 	(3) Consistent with section 260C.223, subdivision 2, paragraph (b), the responsible social 
468.5 	services agency must not define a foster family as the permanent home for a child until:
468.6 	(i) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
468.7 	are satisfied;
468.8 	(ii) inquiry about the child's heritage, including their race, culture, and ethnicity pursuant 
468.9 	to section 260.63, subdivision 10, has been completed; and
468.10 	(iii) the court has determined that reasonable or active efforts toward completing the 
468.11 	relative search requirements in section 260C.221 have been made.
468.12 	(e) Following the review under this section:
468.13 	(1) if the court has either returned the child home or continued the matter up to a total 
468.14 	of six additional months, the agency shall continue to provide services to support the child's 
468.15 	return home or to make reasonable efforts to achieve reunification of the child and the parent 
468.16 	as ordered by the court under an approved case plan;
468.17 	(2) if the court orders the agency to develop a plan for the transfer of permanent legal 
468.18 	and physical custody of the child to a relative, a petition supporting the plan shall be filed 
468.19 	in juvenile court within 30 days of the hearing required under this section and a trial on the 
468.20 	petition held within 60 days of the filing of the pleadings; or
468.21 	(3) if the court orders the agency to file a termination of parental rights, unless the county 
468.22 	attorney can show cause why a termination of parental rights petition should not be filed, 
468.23 	a petition for termination of parental rights shall be filed in juvenile court within 30 days 
468.24 	of the hearing required under this section and a trial on the petition held within 60 days of 
468.25 	the filing of the petition.

468.26 	Sec. 18. Minnesota Statutes 2024, section 260C.212, subdivision 1, is amended to read:
468.27 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan shall 
468.28 	be prepared within 30 days after any child is placed in foster care by court order or a 
468.29 	voluntary placement agreement between the responsible social services agency and the 
468.30 	child's parent pursuant to section 260C.227 or chapter 260D.
468.31 	(b) (a) An out-of-home placement plan means a written document individualized to the 
468.32 	needs of the child and the child's parents or guardians that is prepared by the responsible 
469.1 	social services agency using a form developed by the commissioner. The plan must be 
469.2 	completed jointly with the child's parents or guardians and in consultation with the child's 
469.3 	guardian ad litem; the child's tribe, if the child is an Indian child; the child's foster parent 
469.4 	or representative of the foster care facility; and, when appropriate, the child. When a child 
469.5 	is age 14 or older, the child may include two other individuals on the team preparing the 
469.6 	child's out-of-home placement plan. The child may select one member of the case planning 
469.7 	team to be designated as the child's advisor and to advocate with respect to the application 
469.8 	of the reasonable and prudent parenting standards. The responsible social services agency 
469.9 	may reject an individual selected by the child if the agency has good cause to believe that 
469.10 	the individual would not act in the best interest of the child. For a child in voluntary foster 
469.11 	care for treatment under chapter 260D, preparation of the out-of-home placement plan shall 
469.12 	additionally include the child's mental health treatment provider. For a child 18 years of 
469.13 	age or older, the responsible social services agency shall involve the child and the child's 
469.14 	parents as appropriate. As appropriate, the plan shall be:
469.15 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
469.16 	(2) ordered by the court, either as presented or modified after hearing, under section 
469.17 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
469.18 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad litem, 
469.19 	a representative of the child's tribe, the responsible social services agency, and, if possible, 
469.20 	the child.
469.21 	(b) Before an out-of-home placement plan is signed by the parent or parents or guardian 
469.22 	of the child, the responsible social services agency must provide the parent or parents or 
469.23 	guardian with a one- to two-page summary of the plan using a form developed by the 
469.24 	commissioner. The out-of-home placement plan summary must clearly summarize the plan's 
469.25 	contents under paragraph (d) and list the requirements and responsibilities for the parent or 
469.26 	parents or guardian using plain language. The summary must be updated and provided to 
469.27 	the parent or parents or guardian when the out-of-home placement plan is updated under 
469.28 	subdivision 1a.
469.29 	(c) An out-of-home placement plan summary shall be prepared within 30 days after any 
469.30 	child is placed in foster care by court order or voluntary placement agreement between the 
469.31 	responsible social services agency and the child's parent pursuant to section 260C.227 or 
469.32 	chapter 260D. An out-of-home placement plan shall be prepared within 60 days after any 
469.33 	child is placed in foster care by court order or a voluntary placement agreement between 
470.1 	the responsible social services agency and the child's parent pursuant to section 260C.227 
470.2 	or chapter 260D.
470.3 	(c) (d) The out-of-home placement plan shall be explained by the responsible social 
470.4 	services agency to all persons involved in the plan's implementation, including the child 
470.5 	who has signed the plan, and shall set forth:
470.6 	(1) a description of the foster care home or facility selected, including how the 
470.7 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
470.8 	least restrictive, most family-like setting available that is in close proximity to the home of 
470.9 	the child's parents or guardians when the case plan goal is reunification; and how the 
470.10 	placement is consistent with the best interests and special needs of the child according to 
470.11 	the factors under subdivision 2, paragraph (b);
470.12 	(2) a description of the services offered and provided to prevent removal of the child 
470.13 	from the home;
470.14 	(2) (3) the specific reasons for the placement of the child in foster care, and when 
470.15 	reunification is the plan, a description of the problems or conditions in the home of the 
470.16 	parent or parents that necessitated removal of the child from home and the services offered 
470.17 	and provided to support the changes the parent or parents must make for the child to safely 
470.18 	return home;
470.19 	(3) a description of the services offered and provided to prevent removal of the child 
470.20 	from the home and to reunify the family including:
470.21 	(i) the specific actions to be taken by the parent or parents of the child to eliminate or 
470.22 	correct the problems or conditions identified in clause (2), and the time period during which 
470.23 	the actions are to be taken; and
470.24 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made to 
470.25 	achieve a safe and stable home for the child including social and other supportive services 
470.26 	to be provided or offered to the parent or parents or guardian of the child, the child, and the 
470.27 	residential facility during the period the child is in the residential facility;
470.28 	(4) a description of any services or resources that were requested by the child or the 
470.29 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
470.30 	in the residential facility, and whether those services or resources were provided and if not, 
470.31 	the basis for the denial of the services or resources;
470.32 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined in 
470.33 	section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not 
471.1 	placed together in foster care, and whether visitation is consistent with the best interest of 
471.2 	the child, during the period the child is in foster care;
471.3 	(6) when a child cannot return to or be in the care of either parent, documentation of 
471.4 	steps to finalize permanency through either:
471.5 	(i) adoption as the permanency plan for the child through reasonable efforts to place the 
471.6 	child for adoption pursuant to section 260C.605. At a minimum, the documentation must 
471.7 	include consideration of whether adoption is in the best interests of the child and 
471.8 	child-specific recruitment efforts such as a relative search, consideration of relatives for 
471.9 	adoptive placement, and the use of state, regional, and national adoption exchanges to 
471.10 	facilitate orderly and timely placements in and outside of the state. A copy of this 
471.11 	documentation shall be provided to the court in the review required under section 260C.317, 
471.12 	subdivision 3, paragraph (b); or
471.13 	(7) when a child cannot return to or be in the care of either parent, documentation of 
471.14 	steps to finalize (ii) the transfer of permanent legal and physical custody to a relative as the 
471.15 	permanency plan for the child. This documentation must support the requirements of the 
471.16 	kinship placement agreement under section 142A.605 and must include the reasonable 
471.17 	efforts used to determine that it is not appropriate for the child to return home or be adopted, 
471.18 	and reasons why permanent placement with a relative through a Northstar kinship assistance 
471.19 	arrangement is in the child's best interest; how the child meets the eligibility requirements 
471.20 	for Northstar kinship assistance payments; agency efforts to discuss adoption with the child's 
471.21 	relative foster parent and reasons why the relative foster parent chose not to pursue adoption, 
471.22 	if applicable; and agency efforts to discuss with the child's parent or parents the permanent 
471.23 	transfer of permanent legal and physical custody or the reasons why these efforts were not 
471.24 	made;
471.25 	(8) (7) efforts to ensure the child's educational stability while in foster care for a child 
471.26 	who attained the minimum age for compulsory school attendance under state law and is 
471.27 	enrolled full time in elementary or secondary school, or instructed in elementary or secondary 
471.28 	education at home, or instructed in an independent study elementary or secondary program, 
471.29 	or incapable of attending school on a full-time basis due to a medical condition that is 
471.30 	documented and supported by regularly updated information in the child's case plan. 
471.31 	Educational stability efforts include:
471.32 	(i) efforts to ensure that the child remains in the same school in which the child was 
471.33 	enrolled prior to placement or upon the child's move from one placement to another, including 
472.1 	efforts to work with the local education authorities to ensure the child's educational stability 
472.2 	and attendance; or
472.3 	(ii) if it is not in the child's best interest to remain in the same school that the child was 
472.4 	enrolled in prior to placement or move from one placement to another, efforts to ensure 
472.5 	immediate and appropriate enrollment for the child in a new school;
472.6 	(9) (8) the educational records of the child including the most recent information available 
472.7 	regarding:
472.8 	(i) the names and addresses of the child's educational providers;
472.9 	(ii) the child's grade level performance;
472.10 	(iii) the child's school record;
472.11 	(iv) a statement about how the child's placement in foster care takes into account 
472.12 	proximity to the school in which the child is enrolled at the time of placement; and
472.13 	(v) any other relevant educational information;
472.14 	(10) (9) the efforts by the responsible social services agency to ensure support the child's 
472.15 	well-being by ensuring the oversight and continuity of health care services for the foster 
472.16 	child and documenting their health record, including:
472.17 	(i) the plan to schedule the child's initial health screens;
472.18 	(ii) how the child's known medical problems and identified needs from the screens, 
472.19 	including any known communicable diseases, as defined in section 144.4172, subdivision 
472.20 	2, shall be monitored and treated while the child is in foster care;
472.21 	(iii) how the child's medical information shall be updated and shared, including the 
472.22 	child's immunizations;
472.23 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
472.24 	including the role of the parent, the agency, and the foster parent;
472.25 	(v) who is responsible for oversight of the child's prescription medications;
472.26 	(vi) how physicians or other appropriate medical and nonmedical professionals shall be 
472.27 	consulted and involved in assessing the health and well-being of the child and determine 
472.28 	the appropriate medical treatment for the child; and
472.29 	(vii) the responsibility to ensure that the child has access to medical care through either 
472.30 	medical insurance or medical assistance; and
472.31 	(11) the health records of the child including (viii) information available regarding:
473.1 	(i) (A) the names and addresses of the child's health care and dental care providers;
473.2 	(ii) (B) a record of the child's immunizations;
473.3 	(iii) (C) the child's known medical problems, including any known communicable 
473.4 	diseases as defined in section 144.4172, subdivision 2;
473.5 	(iv) (D) the child's medications; and
473.6 	(v) (E) any other relevant health care information such as the child's eligibility for medical 
473.7 	insurance or medical assistance;
473.8 	(12) (10) an independent living plan for a child 14 years of age or older, developed in 
473.9 	consultation with the child. The child may select one member of the case planning team to 
473.10 	be designated as the child's advisor and to advocate with respect to the application of the 
473.11 	reasonable and prudent parenting standards in subdivision 14. The plan should include, but 
473.12 	not be limited to, the following objectives:
473.13 	(i) educational, vocational, or employment planning;
473.14 	(ii) health care planning and medical coverage;
473.15 	(iii) transportation including, where appropriate, assisting the child in obtaining a driver's 
473.16 	license;
473.17 	(iv) money management, including the responsibility of the responsible social services 
473.18 	agency to ensure that the child annually receives, at no cost to the child, a consumer report 
473.19 	as defined under section 13C.001 and assistance in interpreting and resolving any inaccuracies 
473.20 	in the report;
473.21 	(v) planning for housing;
473.22 	(vi) social and recreational skills;
473.23 	(vii) establishing and maintaining connections with the child's family and community; 
473.24 	and
473.25 	(viii) regular opportunities to engage in age-appropriate or developmentally appropriate 
473.26 	activities typical for the child's age group, taking into consideration the capacities of the 
473.27 	individual child;
473.28 	(13) (11) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
473.29 	and assessment information, specific services relating to meeting the mental health care 
473.30 	needs of the child, and treatment outcomes;
474.1 	(14) (12) for a child 14 years of age or older, a signed acknowledgment that describes 
474.2 	the child's rights regarding education, health care, visitation, safety and protection from 
474.3 	exploitation, and court participation; receipt of the documents identified in section 260C.452; 
474.4 	and receipt of an annual credit report. The acknowledgment shall state that the rights were 
474.5 	explained in an age-appropriate manner to the child; and
474.6 	(15) (13) for a child placed in a qualified residential treatment program, the plan must 
474.7 	include the requirements in section 260C.708.
474.8 	(d) (e) The parent or parents or guardian and the child each shall have the right to legal 
474.9 	counsel in the preparation of the case plan and shall be informed of the right at the time of 
474.10 	placement of the child. The child shall also have the right to a guardian ad litem. If unable 
474.11 	to employ counsel from their own resources, the court shall appoint counsel upon the request 
474.12 	of the parent or parents or the child or the child's legal guardian. The parent or parents may 
474.13 	also receive assistance from any person or social services agency in preparation of the case 
474.14 	plan.
474.15 	(e) Before an out-of-home placement plan is signed by the parent or parents or guardian 
474.16 	of the child, the responsible social services agency must provide the parent or parents or 
474.17 	guardian with a one- to two-page summary of the plan using a form developed by the 
474.18 	commissioner. The out-of-home placement plan summary must clearly summarize the plan's 
474.19 	contents under paragraph (c) and list the requirements and responsibilities for the parent or 
474.20 	parents or guardian using plain language. The summary must be updated and provided to 
474.21 	the parent or parents or guardian when the out-of-home placement plan is updated under 
474.22 	subdivision 1a.
474.23 	(f) After the plan has been agreed upon by the parties involved or approved or ordered 
474.24 	by the court, the foster parents shall be fully informed of the provisions of the case plan and 
474.25 	shall be provided a copy of the plan.
474.26 	(g) Upon the child's discharge from foster care, the responsible social services agency 
474.27 	must provide the child's parent, adoptive parent, or permanent legal and physical custodian, 
474.28 	and the child, if the child is 14 years of age or older, with a current copy of the child's health 
474.29 	and education record. If a child meets the conditions in subdivision 15, paragraph (b), the 
474.30 	agency must also provide the child with the child's social and medical history. The responsible 
474.31 	social services agency may give a copy of the child's health and education record and social 
474.32 	and medical history to a child who is younger than 14 years of age, if it is appropriate and 
474.33 	if subdivision 15, paragraph (b), applies.

475.1 	Sec. 19. Minnesota Statutes 2024, section 260C.212, subdivision 1a, is amended to read:
475.2 		Subd. 1a.Out-of-home placement plan update. (a) Within 30 days of placing the child 
475.3 	in foster care, the agency must complete the child's out-of-home placement plan summary 
475.4 	and file it with the court. Within 60 days of placing the child in foster care, the agency must
475.5 	file the child's initial out-of-home placement plan with the court. After filing the child's 
475.6 	initial out-of-home placement plan, the agency shall update and file the child's out-of-home 
475.7 	placement plan with the court as follows:
475.8 	(1) when the agency moves a child to a different foster care setting, the agency shall 
475.9 	inform the court within 30 days of the child's placement change or court-ordered trial home 
475.10 	visit. The agency must file the child's updated out-of-home placement plan summary and
475.11 	out-of-home placement plan with the court at the next required review hearing;
475.12 	(2) when the agency places a child in a qualified residential treatment program as defined 
475.13 	in section 260C.007, subdivision 26d, or moves a child from one qualified residential 
475.14 	treatment program to a different qualified residential treatment program, the agency must 
475.15 	update the child's out-of-home placement plan within 60 days. To meet the requirements 
475.16 	of section 260C.708, the agency must file the child's out-of-home placement plan along 
475.17 	with the agency's report seeking the court's approval of the child's placement at a qualified 
475.18 	residential treatment program under section 260C.71. After the court issues an order, the 
475.19 	agency must update the child's out-of-home placement plan to document the court's approval 
475.20 	or disapproval of the child's placement in a qualified residential treatment program;
475.21 	(3) when the agency places a child with the child's parent in a licensed residential 
475.22 	family-based substance use disorder treatment program under section 260C.190, the agency 
475.23 	must identify the treatment program where the child will be placed in the child's out-of-home 
475.24 	placement plan prior to the child's placement. The agency must file the child's out-of-home 
475.25 	placement plan summary and out-of-home placement plan with the court at the next required 
475.26 	review hearing; and
475.27 	(4) under sections 260C.227 and 260C.521, the agency must update the child's
475.28 	out-of-home placement plan summary and out-of-home placement plan and file the child's 
475.29 	out-of-home placement plan with the court.
475.30 	(b) When none of the items in paragraph (a) apply, the agency must update the child's
475.31 	out-of-home placement plan summary and out-of-home placement plan no later than 180 
475.32 	days after the child's initial placement and every six months thereafter, consistent with 
475.33 	section 260C.203, paragraph (a).

476.1 	Sec. 20. Minnesota Statutes 2024, section 260C.221, subdivision 2, is amended to read:
476.2 		Subd. 2.Relative notice requirements. (a) The agency may provide oral or written 
476.3 	notice to a child's relatives. In the child's case record, the agency must document providing 
476.4 	the required notice to each of the child's relatives. The responsible social services agency 
476.5 	must notify relatives:
476.6 	(1) of the need for a foster home for the child, the option to become a placement resource 
476.7 	for the child, the order of placement that the agency will consider under section 260C.212, 
476.8 	subdivision 2, paragraph (a), and the possibility of the need for a permanent placement for 
476.9 	the child;
476.10 	(2) of their responsibility to keep the responsible social services agency and the court 
476.11 	informed of their current address in order to receive notice in the event that a permanent 
476.12 	placement is sought for the child and to receive notice of the permanency progress review 
476.13 	hearing under section 260C.204. A relative who fails to provide a current address to the 
476.14 	responsible social services agency and the court forfeits the right to receive notice of the 
476.15 	possibility of permanent placement and of the permanency progress review hearing under 
476.16 	section 260C.204, until the relative provides a current address to the responsible social 
476.17 	services agency and the court. A decision by a relative not to be identified as a potential 
476.18 	permanent placement resource or participate in planning for the child shall not affect whether 
476.19 	the relative is considered for placement of, or as a permanency resource for, the child with 
476.20 	that relative at any time in the case, and shall not be the sole basis for the court to rule out 
476.21 	the relative as the child's placement or permanency resource;
476.22 	(3) that the relative may participate in the care and planning for the child, as specified 
476.23 	in subdivision 3, including that the opportunity for such participation may be lost by failing 
476.24 	to respond to the notice sent under this subdivision;
476.25 	(4) of the family foster care licensing and adoption home study requirements, including:
476.26 	(i) how to complete an application and;
476.27 	(ii) how to request a variance from licensing standards that do not present a safety or 
476.28 	health risk to the child in the home under section 142B.10and;
476.29 	(iii) supports that are available for relatives and children who reside in a family foster 
476.30 	home, including how to access respite care, strategies for leveraging natural supports for 
476.31 	the child and family, and ways to include resource or substitute caregivers in the child's 
476.32 	case plan; and
477.1 	(iv) the relative's choice between county or private agency and services provided by that 
477.2 	agency under section 142B.30, depending on funding available;
477.3 	(5) of the relatives' right to ask to be notified of any court proceedings regarding the 
477.4 	child, to attend the hearings, and of a relative's right to be heard by the court as required 
477.5 	under section 260C.152, subdivision 5;
477.6 	(6) that regardless of the relative's response to the notice sent under this subdivision, the 
477.7 	agency is required to establish permanency for a child, including planning for alternative 
477.8 	permanency options if the agency's reunification efforts fail or are not required; and
477.9 	(7) that by responding to the notice, a relative may receive information about participating 
477.10 	in a child's family and permanency team if the child is placed in a qualified residential 
477.11 	treatment program as defined in section 260C.007, subdivision 26d; and
477.12 	(8) information advising a relative on access to legal services and support.
477.13 	(b) The responsible social services agency shall send the notice required under paragraph 
477.14 	(a) to relatives who become known to the responsible social services agency, except for 
477.15 	relatives that the agency does not contact due to safety reasons under subdivision 5, paragraph 
477.16 	(b). The responsible social services agency shall continue to send notice to relatives 
477.17 	notwithstanding a court's finding that the agency has made reasonable efforts to conduct a 
477.18 	relative search.
477.19 	(c) The responsible social services agency is not required to send the notice under 
477.20 	paragraph (a) to a relative who becomes known to the agency after an adoption placement 
477.21 	agreement has been fully executed under section 260C.613, subdivision 1. If the relative 
477.22 	wishes to be considered for adoptive placement of the child, the agency shall inform the 
477.23 	relative of the relative's ability to file a motion for an order for adoptive placement under 
477.24 	section 260C.607, subdivision 6.

477.25 	Sec. 21. Minnesota Statutes 2024, section 260C.223, subdivision 1, is amended to read:
477.26 		Subdivision 1.Program; goals. (a) The commissioner of children, youth, and families 
477.27 	shall establish a program for concurrent permanency planning for child protection services.
477.28 	(b) Concurrent permanency planning involves a planning process for children who are 
477.29 	placed out of the home of their parents pursuant to a court order, or who have been voluntarily 
477.30 	placed out of the home by the parents for 60 days or more and who are not developmentally 
477.31 	disabled or emotionally disabled under section 260C.212, subdivision 9. The responsible 
477.32 	social services agency shall develop an alternative permanency plan while making reasonable 
478.1 	efforts for reunification of the child with the family, if required by section 260.012. The 
478.2 	goals of concurrent permanency planning are to:
478.3 	(1) achieve early permanency for children;
478.4 	(2) decrease children's length of stay in foster care and reduce the number of moves 
478.5 	children experience in foster care; and
478.6 	(3) develop a group of families establish a foster parent for a child who will work towards 
478.7 	reunification and also serve as a permanent families family for children.

478.8 	Sec. 22. Minnesota Statutes 2024, section 260C.223, subdivision 2, is amended to read:
478.9 		Subd. 2.Development of guidelines and protocols. (a) The commissioner shall establish 
478.10 	guidelines and protocols for social services agencies involved in concurrent permanency 
478.11 	planning, including criteria for conducting concurrent permanency planning based on relevant 
478.12 	factors such as:
478.13 	(1) age of the child and duration of out-of-home placement;
478.14 	(2) prognosis for successful reunification with parents;
478.15 	(3) availability of relatives and other concerned individuals to provide support or a 
478.16 	permanent placement for the child; and
478.17 	(4) special needs of the child and other factors affecting the child's best interests.
478.18 	(b) In developing the guidelines and protocols, the commissioner shall consult with 
478.19 	interest groups within the child protection system, including child protection workers, child 
478.20 	protection advocates, county attorneys, law enforcement, community service organizations, 
478.21 	the councils of color, and the ombudsperson for families.
478.22 	(c) The responsible social services agency must not make a foster family the permanent 
478.23 	home for a child until:
478.24 	(1) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
478.25 	are satisfied;
478.26 	(2) inquiry about the child's heritage, including their race, culture, and ethnicity pursuant 
478.27 	to section 260.63, subdivision 10, has been completed; and
478.28 	(3) the court has determined that reasonable or active efforts toward completing the 
478.29 	relative search requirements in section 260C.221 have been made.

479.1 	Sec. 23. Minnesota Statutes 2024, section 260C.329, subdivision 8, is amended to read:
479.2 		Subd. 8.Hearing. The court may grant the petition ordering the reestablishment of the 
479.3 	legal parent and child relationship only if it finds by clear and convincing evidence that:
479.4 	(1) reestablishment of the legal parent and child relationship is in the child's best interests;
479.5 	(2) the child has is not been currently adopted;
479.6 	(3) the child is not the subject of a written adoption placement agreement between the 
479.7 	responsible social services agency and the prospective adoptive parent, as required under 
479.8 	Minnesota Rules, part 9560.0060, subpart 2;
479.9 	(4) at least 24 months have elapsed following a final order terminating parental rights 
479.10 	and the child remains in foster care;
479.11 	(5) the child desires to reside with the parent;
479.12 	(6) the parent has corrected the conditions that led to an order terminating parental rights; 
479.13 	and
479.14 	(7) the parent is willing and has the capability to provide day-to-day care and maintain 
479.15 	the health, safety, and welfare of the child.

479.16 	Sec. 24. Minnesota Statutes 2024, section 260C.452, subdivision 4, is amended to read:
479.17 		Subd. 4.Administrative or court review of placements. (a) When the youth is 14 years 
479.18 	of age or older, the court, in consultation with the youth, shall review the youth's independent 
479.19 	living plan according to section 260C.203, paragraph (d).
479.20 	(b) The responsible social services agency shall file a copy of the notification of foster 
479.21 	care benefits for a youth who is 18 years of age or older according to section 260C.451, 
479.22 	subdivision 1, with the court. If the responsible social services agency does not file the 
479.23 	notice by the time the youth is 17-1/2 years of age, the court shall require the responsible 
479.24 	social services agency to file the notice.
479.25 	(c) When a youth is 18 years of age or older, the court shall ensure that the responsible 
479.26 	social services agency assists the youth in obtaining the following documents before the 
479.27 	youth leaves foster care: a Social Security card; an official or certified copy of the youth's 
479.28 	birth certificate; a state identification card or driver's license, Tribal enrollment identification 
479.29 	card, green permanent resident card, or school visa; health insurance information; the youth's 
479.30 	school, medical, and dental records; a contact list of the youth's medical, dental, and mental 
479.31 	health providers; and contact information for the youth's siblings, if the siblings are in foster 
479.32 	care.
480.1 	(d) For a youth who will be discharged from foster care at 18 years of age or older 
480.2 	because the youth is not eligible for extended foster care benefits or chooses to leave foster 
480.3 	care, the responsible social services agency must develop a personalized transition plan as 
480.4 	directed by the youth during the 180-day period immediately prior to the expected date of 
480.5 	discharge. The transition plan must be as detailed as the youth elects and include specific 
480.6 	options, including but not limited to:
480.7 	(1) affordable housing with necessary supports that does not include a homeless shelter;
480.8 	(2) health insurance, including eligibility for medical assistance as defined in section 
480.9 	256B.055, subdivision 17;
480.10 	(3) education, including application to the Education and Training Voucher Program;
480.11 	(4) local opportunities for mentors and continuing support services;
480.12 	(5) workforce supports and employment services;
480.13 	(6) a copy of the youth's consumer credit report as defined in section 13C.001 and 
480.14 	assistance in interpreting and resolving any inaccuracies in the report, at no cost to the youth;
480.15 	(7) information on executing a health care directive under chapter 145C and on the 
480.16 	importance of designating another individual to make health care decisions on behalf of the 
480.17 	youth if the youth becomes unable to participate in decisions;
480.18 	(8) appropriate contact information through 21 years of age if the youth needs information 
480.19 	or help dealing with a crisis situation; and
480.20 	(9) official documentation that the youth was previously in foster care.

480.21 	Sec. 25. Minnesota Statutes 2024, section 260E.03, subdivision 15, is amended to read:
480.22 		Subd. 15.Neglect. (a) "Neglect" means the commission or omission of any of the acts 
480.23 	specified under clauses (1) to (8), other than by accidental means:
480.24 	(1) failure by a person responsible for a child's care to supply a child with necessary 
480.25 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
480.26 	mental health when reasonably able to do so;
480.27 	(2) failure to protect a child from conditions or actions that seriously endanger the child's 
480.28 	physical or mental health when reasonably able to do so, including a growth delay, which 
480.29 	may be referred to as a failure to thrive, that has been diagnosed by a physician and is due 
480.30 	to parental neglect;
481.1 	(3) failure to provide for necessary supervision or child care arrangements appropriate 
481.2 	for a child after considering factors as the child's age, mental ability, physical condition, 
481.3 	length of absence, or environment, when the child is unable to care for the child's own basic 
481.4 	needs or safety, or the basic needs or safety of another child in their care;
481.5 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
481.6 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
481.7 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 
481.8 	5;
481.9 	(5) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 
481.10 	2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in 
481.11 	the child at birth, results of a toxicology test performed on the mother at delivery or the 
481.12 	child at birth, medical effects or developmental delays during the child's first year of life 
481.13 	that medically indicate prenatal exposure to a controlled substance, or the presence of a 
481.14 	fetal alcohol spectrum disorder;
481.15 	(6) medical neglect, as defined in section 260C.007, subdivision 6, clause (5);
481.16 	(7) chronic and severe use of alcohol or a controlled substance by a person responsible 
481.17 	for the child's care that adversely affects the child's basic needs and safety; or
481.18 	(8) emotional harm from a pattern of behavior that contributes to impaired emotional 
481.19 	functioning of the child which may be demonstrated by a substantial and observable effect 
481.20 	in the child's behavior, emotional response, or cognition that is not within the normal range 
481.21 	for the child's age and stage of development, with due regard to the child's culture.
481.22 	(b) Nothing in this chapter shall be construed to mean that a child is neglected solely 
481.23 	because the child's parent, guardian, or other person responsible for the child's care in good 
481.24 	faith selects and depends upon spiritual means or prayer for treatment or care of disease or 
481.25 	remedial care of the child in lieu of medical care.
481.26 	(c) This chapter does not impose upon persons not otherwise legally responsible for 
481.27 	providing a child with necessary food, clothing, shelter, education, or medical care a duty 
481.28 	to provide that care.
481.29 	(d) Nothing in this chapter shall be construed to mean that a child who has a mental, 
481.30 	physical, or emotional condition is neglected solely because the child remains in an 
481.31 	emergency department or hospital setting because services, including residential treatment, 
481.32 	that are deemed necessary by the child's medical or mental health care professional or county 
482.1 	case manager are not available to the child's parent, guardian, or other person responsible 
482.2 	for the child's care, and the child cannot be safely discharged to the child's family.

482.3 	Sec. 26. Minnesota Statutes 2024, section 260E.09, is amended to read:
482.4 	260E.09 REPORTING REQUIREMENTS.
482.5 	(a) An oral report shall be made immediately by telephone or otherwise. An oral report 
482.6 	made by a person required under section 260E.06, subdivision 1, to report shall be followed 
482.7 	within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate 
482.8 	police department, the county sheriff, the agency responsible for assessing or investigating 
482.9 	the report, or the local welfare agency.
482.10 	(b) Any report shall be of sufficient content to identify the child, any person believed 
482.11 	to be responsible for the maltreatment of the child if the person is known, the nature and 
482.12 	extent of the maltreatment, and the name and address of the reporter. The local welfare 
482.13 	agency or agency responsible for assessing or investigating the report shall accept a report 
482.14 	made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's 
482.15 	name or address as long as the report is otherwise sufficient under this paragraph. The local 
482.16 	welfare agency or agency responsible for assessing or investigating the report shall ask the 
482.17 	reporter if the reporter is aware of the child or family heritage, including the child's Tribal 
482.18 	lineage pursuant to section 260.761 and their race, culture, and ethnicity pursuant to section 
482.19 	260.63, subdivision 10.
482.20 	(c) Notwithstanding paragraph (a), upon implementation of the provider licensing and 
482.21 	reporting hub, an individual who has an account with the provider licensing and reporting 
482.22 	hub and is required to report suspected maltreatment at a licensed program under section 
482.23 	260E.06, subdivision 1, may submit a written report in the hub in a manner prescribed by 
482.24 	the commissioner and is not required to make an oral report. A report submitted through 
482.25 	the provider licensing and reporting hub must be made immediately.

482.26 	Sec. 27. Minnesota Statutes 2024, section 260E.20, subdivision 1, is amended to read:
482.27 		Subdivision 1.General duties. (a) The local welfare agency shall offer services to 
482.28 	prevent future maltreatment, safeguarding and enhancing the welfare of the maltreated child, 
482.29 	and supporting and preserving family life whenever possible.
482.30 	(b) If the report alleges a violation of a criminal statute involving maltreatment or child 
482.31 	endangerment under section 609.378, the local law enforcement agency and local welfare 
482.32 	agency shall coordinate the planning and execution of their respective investigation and 
483.1 	assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews. 
483.2 	Each agency shall prepare a separate report of the results of the agency's investigation or 
483.3 	assessment.
483.4 	(c) In cases of alleged child maltreatment resulting in death, the local agency may rely 
483.5 	on the fact-finding efforts of a law enforcement investigation to make a determination of 
483.6 	whether or not maltreatment occurred.
483.7 	(d) When necessary, the local welfare agency shall seek authority to remove the child 
483.8 	from the custody of a parent, guardian, or adult with whom the child is living.
483.9 	(e) In performing any of these duties, the local welfare agency shall maintain an 
483.10 	appropriate record.
483.11 	(f) In conducting a family assessment, noncaregiver human trafficking assessment, or 
483.12 	investigation, the local welfare agency shall gather information on the existence of substance 
483.13 	abuse and domestic violence.
483.14 	(g) If the family assessment, noncaregiver human trafficking assessment, or investigation 
483.15 	indicates there is a potential for abuse of alcohol or other drugs by the parent, guardian, or 
483.16 	person responsible for the child's care, the local welfare agency must coordinate a 
483.17 	comprehensive assessment pursuant to section 245G.05.
483.18 	(h) The agency may use either a family assessment or investigation to determine whether 
483.19 	the child is safe when responding to a report resulting from birth match data under section 
483.20 	260E.03, subdivision 23, paragraph (c). If the child subject of birth match data is determined 
483.21 	to be safe, the agency shall consult with the county attorney to determine the appropriateness 
483.22 	of filing a petition alleging the child is in need of protection or services under section 
483.23 	260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is 
483.24 	determined not to be safe, the agency and the county attorney shall take appropriate action 
483.25 	as required under section 260C.503, subdivision 2.
483.26 	(i) When conducting any assessment or investigation, the agency shall ask the child, if 
483.27 	age appropriate; parents; extended family; and reporter about the child's family heritage, 
483.28 	including the child's Tribal lineage pursuant to section 260.761 and the child's race, culture, 
483.29 	and ethnicity pursuant to section 260.63, subdivision 10.

483.30 	Sec. 28. Minnesota Statutes 2024, section 260E.24, subdivision 1, is amended to read:
483.31 		Subdivision 1.Timing. The local welfare agency shall conclude the family assessment, 
483.32 	the noncaregiver human trafficking assessment, or the investigation within 45 days of the 
483.33 	receipt of a report. The conclusion of the assessment or investigation may be extended to 
484.1 	permit the completion of a criminal investigation or the receipt of expert information 
484.2 	requested within 45 days of the receipt of the report.

484.3 	Sec. 29. Minnesota Statutes 2024, section 260E.24, subdivision 2, is amended to read:
484.4 		Subd. 2.Determination after family assessment or a noncaregiver human trafficking 
484.5 	assessment. After conducting a family assessment or a noncaregiver human trafficking 
484.6 	assessment, the local welfare agency shall determine whether child protective services are 
484.7 	needed to address the safety of the child and other family members and the risk of subsequent 
484.8 	maltreatment. The local welfare agency must document the information collected under 
484.9 	section 260E.20, subdivision 3, related to the completed family assessment or noncaregiver 
484.10 	human trafficking assessment in the child's or family's case notes.

484.11 	Sec. 30. [260E.291] REPORTING OF SCHOOL ATTENDANCE CONCERNS.
484.12 		Subdivision 1.Reports required. (a) A person mandated to report under this chapter 
484.13 	must immediately report to the local welfare agency, Tribal social services agency, or 
484.14 	designated partner if the person knows or has reason to believe that a child required to be 
484.15 	enrolled in school under section 120A.22 has at least seven unexcused absences in the 
484.16 	current school year and is at risk of educational neglect under section 260C.163, subdivision 
484.17 	11.
484.18 	(b) Any person may voluntarily report to the local welfare agency, Tribal social services 
484.19 	agency, or designated partner if the person knows or has reason to believe that a child 
484.20 	required to be enrolled in school under section 120A.22 has at least seven unexcused absences 
484.21 	in the current school year and is at risk of educational neglect under section 260C.163, 
484.22 	subdivision 11.
484.23 	(c) An oral report must be made immediately by telephone or otherwise. An oral report 
484.24 	made by a person required to report under paragraph (a) must be followed within 72 hours, 
484.25 	exclusive of weekends and holidays, by a report in writing to the local welfare agency. A 
484.26 	report must sufficiently identify the child and the child's parent or guardian, the actual or 
484.27 	estimated number of the child's unexcused absences in the current school year, the efforts 
484.28 	made by school officials to resolve attendance concerns with the family, and the name and 
484.29 	address of the reporter. A voluntary reporter under paragraph (b) may refuse to provide 
484.30 	their name or address if the report is otherwise sufficient, and such a report must be accepted 
484.31 	by the local welfare agency.
484.32 		Subd. 2.Local welfare agency. (a) The local welfare agency or partner designated to 
484.33 	provide child welfare services must provide a child welfare response for a report that alleges 
485.1 	a child enrolled in school has seven or more unexcused absences. When providing a child 
485.2 	welfare response under this paragraph, the local welfare agency or designated partner must 
485.3 	offer services to the child and the child's family to address school attendance concerns or 
485.4 	may partner with a county attorney's office, a community-based organization, or other 
485.5 	community partner to provide the services. The services must be culturally and linguistically 
485.6 	appropriate and tailored to the needs of the child and the child's family. This section is 
485.7 	subject to all requirements of the Minnesota Indian Family Preservation Act under sections 
485.8 	260.751 to 260.835, and the Minnesota African American Family Preservation and Child 
485.9 	Welfare Disproportionality Act under sections 260.61 to 260.693.
485.10 	(b) If the child's unexcused absences continue and the family has not engaged with 
485.11 	services under paragraph (a) after the local welfare agency, Tribal social services agency, 
485.12 	or partner designated to provide child welfare services has made multiple varied attempts 
485.13 	to engage the child's family, a report of educational neglect must be made regardless of the 
485.14 	number of unexcused absences the child has accrued. The local welfare agency must 
485.15 	determine the response path assignment pursuant to section 260E.17 and may proceed with 
485.16 	the process outlined in section 260C.141.

485.17 	Sec. 31. REVISOR INSTRUCTION.
 485.18 	The revisor of statutes shall change paragraphs to subdivisions, clauses to paragraphs, 
485.19 	and items to clauses in Minnesota Statutes, sections 260C.203 and 260C.204. The revisor 
485.20 	shall make any necessary grammatical changes or changes to sentence structure necessary 
485.21 	to preserve the meaning of the text as a result of the changes. The revisor of statutes must 
485.22 	correct any statutory cross-references consistent with the changes in this section.

485.23 	ARTICLE 19
485.24 	EARLY CARE AND LEARNING

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

485.29 	Sec. 2. Minnesota Statutes 2024, section 142A.76, subdivision 3, is amended to read:
485.30 		Subd. 3.Director; other staff. (a) The commissioner of public safety children, youth, 
485.31 	and families shall appoint a director of the Office of Restorative Practices. The director 
485.32 	should have qualifications that include or are similar to the following:
486.1 	(1) experience in the many facets of restorative justice and practices such as peacemaking 
486.2 	circles, sentencing circles, community conferencing, community panels, and family group 
486.3 	decision making;
486.4 	(2) experience in victim-centered and trauma-informed practices;
486.5 	(3) knowledge of the range of social problems that bring children and families to points 
486.6 	of crisis such as poverty, racism, unemployment, and unequal opportunity;
486.7 	(4) knowledge of the many ways youth become involved in other systems such as truancy, 
486.8 	juvenile delinquency, and child protection; and
486.9 	(5) understanding of educational barriers.
486.10 	(b) The director shall hire additional staff to perform the duties of the Office of 
486.11 	Restorative Practices. The staff shall be in the classified service of the state and their 
486.12 	compensation shall be established pursuant to chapter 43A.

486.13 	Sec. 3. Minnesota Statutes 2024, section 142D.31, subdivision 2, is amended to read:
486.14 		Subd. 2.Program components. (a) The nonprofit organization must use the grant for:
486.15 	(1) tuition scholarships up to $10,000 per year in amounts per year consistent with the 
486.16 	national TEACH early childhood program requirements for courses leading to the nationally 
486.17 	recognized child development associate credential or college-level courses leading to an 
486.18 	associate's degree or bachelor's degree in early childhood development and school-age care; 
486.19 	and
486.20 	(2) education incentives of a minimum of $250 to participants in the tuition scholarship 
486.21 	program if they complete a year of working in the early care and education field.
486.22 	(b) Applicants for the scholarship must be employed by a licensed or certified early 
486.23 	childhood or child care program and working directly with children, a licensed family child 
486.24 	care provider, employed by a public prekindergarten program, employed by a Head Start 
486.25 	program, or an employee in a school-age program exempt from licensing under section 
486.26 	142B.05, subdivision 2, paragraph (a), clause (8). Lower wage earners must be given priority 
486.27 	in awarding the tuition scholarships. Scholarship recipients must contribute at least ten 
486.28 	percent of the total scholarship and must be sponsored by their employers, who must also 
486.29 	contribute at least five percent of the total scholarship. Scholarship recipients who are 
486.30 	self-employed work in licensed family child care under Minnesota Rules, chapter 9502,
486.31 	must contribute 20 at least ten percent of the total scholarship and are not required to receive 
486.32 	employer sponsorship or employer match.

487.1 	Sec. 4. Minnesota Statutes 2024, section 142E.03, subdivision 3, is amended to read:
487.2 		Subd. 3.Redeterminations. (a) Notwithstanding Minnesota Rules, part 3400.0180, item 
487.3 	A, the county shall conduct a redetermination according to paragraphs (b) and (c).
487.4 	(b) The county shall use the redetermination form developed by the commissioner. The 
487.5 	county must verify the factors listed in subdivision 1, paragraph (a), as part of the 
487.6 	redetermination.
487.7 	(c) An applicant's eligibility must be redetermined no more frequently than every 12 
487.8 	months. The following criteria apply:
487.9 	(1) a family meets the eligibility redetermination requirements if a complete 
487.10 	redetermination form and all required verifications are received within 30 days after the 
487.11 	date the form was due;
487.12 	(2) if the 30th day after the date the form was due falls on a Saturday, Sunday, or holiday, 
487.13 	the 30-day time period is extended to include the next day that is not a Saturday, Sunday, 
487.14 	or holiday. Assistance shall be payable retroactively from the redetermination due date;
487.15 	(3) for a family where at least one parent is younger than 21 years of age, does not have 
487.16 	a high school degree or commissioner of education-selected high school equivalency 
487.17 	certification, and is a student in a school district or another similar program that provides 
487.18 	or arranges for child care, parenting, social services, career and employment supports, and 
487.19 	academic support to achieve high school graduation, the redetermination of eligibility may 
487.20 	be deferred beyond 12 months, to the end of the student's school year; and
487.21 	(4) starting May 25, 2026, if a new eligible child is added to the family and has care 
487.22 	authorized, the redetermination of eligibility must be extended 12 months from the eligible 
487.23 	child's arrival date; and
487.24 	(4) (5) a family and the family's providers must be notified that the family's 
487.25 	redetermination is due at least 45 days before the end of the family's 12-month eligibility 
487.26 	period.

487.27 	Sec. 5. Minnesota Statutes 2024, section 142E.11, subdivision 1, is amended to read:
487.28 		Subdivision 1.General authorization requirements. (a) When authorizing the amount 
487.29 	of child care, the county agency must consider the amount of time the parent reports on the 
487.30 	application or redetermination form that the child attends preschool, a Head Start program, 
487.31 	or school while the parent is participating in an authorized activity.
488.1 	(b) Care must be authorized and scheduled with a provider based on the applicant's or 
488.2 	participant's verified activity schedule when:
488.3 	(1) the family requests care from more than one provider per child;
488.4 	(2) the family requests care from a legal nonlicensed provider; or
488.5 	(3) an applicant or participant is employed by any child care center that is licensed by 
488.6 	the Department of Children, Youth, and Families or has been identified as a high-risk 
488.7 	Medicaid-enrolled provider.
488.8 	This paragraph expires March 2, 2026.
488.9 	(c) If the family remains eligible at redetermination, a new authorization with fewer 
488.10 	hours, the same hours, or increased hours may be determined.

488.11 	Sec. 6. Minnesota Statutes 2024, section 142E.11, subdivision 2, is amended to read:
488.12 		Subd. 2.Maintain steady child care authorizations. (a) Notwithstanding Minnesota 
488.13 	Rules, chapter 3400, the amount of child care authorized under section 142E.12 for 
488.14 	employment, education, or an MFIP employment plan shall continue at the same number 
488.15 	of hours or more hours until redetermination, including:
488.16 	(1) when the other parent moves in and is employed or has an education plan under 
488.17 	section 142E.12, subdivision 3, or has an MFIP employment plan; or
488.18 	(2) when the participant's work hours are reduced or a participant temporarily stops 
488.19 	working or attending an approved education program. Temporary changes include, but are 
488.20 	not limited to, a medical leave, seasonal employment fluctuations, or a school break between 
488.21 	semesters.
488.22 	(b) The county may increase the amount of child care authorized at any time if the 
488.23 	participant verifies the need for increased hours for authorized activities.
488.24 	(c) The county may reduce the amount of child care authorized if a parent requests a 
488.25 	reduction or because of a change in:
488.26 	(1) the child's school schedule;
488.27 	(2) the custody schedule; or
488.28 	(3) the provider's availability.
488.29 	(d) The amount of child care authorized for a family subject to subdivision 1, paragraph 
488.30 	(b), must change when the participant's activity schedule changes. Paragraph (a) does not 
489.1 	apply to a family subject to subdivision 1, paragraph (b). This paragraph expires March 2, 
489.2 	2026.
489.3 	(e) When a child reaches 13 years of age or a child with a disability reaches 15 years of 
489.4 	age, the amount of child care authorized shall continue at the same number of hours or more 
489.5 	hours until redetermination.

489.6 	Sec. 7. Minnesota Statutes 2024, section 142E.13, subdivision 2, is amended to read:
489.7 		Subd. 2.Extended eligibility and redetermination. (a) If the family received three 
489.8 	months of extended eligibility and redetermination is not due, to continue receiving child 
489.9 	care assistance the participant must be employed or have an education plan that meets the 
489.10 	requirements of section 142E.12, subdivision 3, or have an MFIP employment plan. 
489.11 	Notwithstanding Minnesota Rules, part 3400.0110, if child care assistance continues, the 
489.12 	amount of child care authorized shall continue at the same number or more hours until 
489.13 	redetermination, unless a condition in section 142E.11, subdivision 2, paragraph (c), applies. 
489.14 	A family subject to section 142E.11, subdivision 1, paragraph (b), shall have child care 
489.15 	authorized based on a verified activity schedule.
489.16 	(b) If the family's redetermination occurs before the end of the three-month extended 
489.17 	eligibility period to continue receiving child care assistance, the participant must verify that 
489.18 	the participant meets eligibility and activity requirements for child care assistance under 
489.19 	this chapter. If child care assistance continues, the amount of child care authorized is based 
489.20 	on section 142E.12. A family subject to section 142E.11, subdivision 1, paragraph (b), shall 
489.21 	have child care authorized based on a verified activity schedule.

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

489.23 	Sec. 8. Minnesota Statutes 2024, section 142E.15, subdivision 1, is amended to read:
489.24 		Subdivision 1.Fee schedule. All changes to parent fees must be implemented on the 
489.25 	first Monday of the service period following the effective date of the change.
489.26 	PARENT FEE SCHEDULE. The parent fee schedule is as follows, except as noted in 
489.27 	subdivision 2:

489.28
489.29
489.30	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)
	
489.31
489.32	0-74.99% 0-99.99% of federal poverty 
guidelines
	$0/biweekly
	
489.33	75.00-99.99% of federal poverty guidelines
	$2/biweekly
	
490.1
490.2	100.00% of federal poverty 
guidelines-27.72% 27.99%
	2.61% 2.6%
	
490.3	27.73-29.04%
	2.61%
	
490.4	29.05-30.36%
	2.61%
	
490.5	30.37-31.68%
	2.61%
	
490.6	31.69-33.00%
	2.91%
	
490.7	33.01-34.32%
	2.91%
	
490.8	34.33-35.65%
	2.91%
	
490.9	35.66-36.96%
	2.91%
	
490.10	36.97-38.29%
	3.21%
	
490.11	38.30-39.61%
	3.21%
	
490.12	39.62-40.93%
	3.21%
	
490.13	40.94-42.25%
	3.84%
	
490.14	42.26-43.57%
	3.84%
	
490.15	43.58-44.89%
	4.46%
	
490.16	44.90-46.21%
	4.76%
	
490.17	46.22-47.53%
	5.05%
	
490.18	47.54-48.85%
	5.65%
	
490.19	48.86-50.17%
	5.95%
	
490.20	50.18-51.49%
	6.24%
	
490.21	51.50-52.81%
	6.84%
	
490.22	52.82-54.13%
	7.58%
	
490.23	54.14-55.45%
	8.33%
	
490.24	55.46-56.77%
	9.20%
	
490.25	56.78-58.09%
	10.07%
	
490.26	58.10-59.41%
	10.94%
	
490.27	59.42-60.73%
	11.55%
	
490.28	60.74-62.06%
	12.16%
	
490.29	62.07-63.38%
	12.77%
	
490.30	63.39-64.70%
	13.38%
	
490.31	64.71-67.00%
	14.00%
	
490.32	28.00-30.99%
	2.6%
	
490.33	31.00-33.99%
	2.6%
	
490.34	34.00-36.99%
	2.9%
	
490.35	37.00-39.99%
	3.2%
	
490.36	40.00-42.99%
	3.8%
	
490.37	43.00-45.99%
	4.4%
	
490.38	46.00-48.99%
	5.0%
	
491.1	49.00-51.99%
	5.6%
	
491.2	52.00-54.99%
	6.2%
	
491.3	55.00-57.99%
	6.8%
	
491.4	58.00-60.99%
	6.9%
	
491.5	61.00-63.99%
	6.9%
	
491.6	64.00-67.00%
	6.9%
	
491.7	Greater than 67.00%
	ineligible
	
491.8 	A family's biweekly co-payment fee is the fixed percentage established for the income 
491.9 	range multiplied by the highest lowest possible income within that income range.

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

491.11 	Sec. 9. Minnesota Statutes 2024, section 142E.16, subdivision 3, is amended to read:
491.12 		Subd. 3.Training required. (a) Prior to initial authorization as required in subdivision 
491.13 	1, a legal nonlicensed family child care provider must complete first aid and CPR training 
491.14 	and provide the verification of first aid and CPR training to the commissioner. The training 
491.15 	documentation must have valid effective dates as of the date the registration request is 
491.16 	submitted to the commissioner. The training must have been provided by an individual 
491.17 	approved to provide first aid and CPR instruction and have included CPR techniques for 
491.18 	infants and children.
491.19 	(b) Upon each reauthorization after the authorization period when the initial first aid 
491.20 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
491.21 	provide verification of at least eight hours of additional training listed in the Minnesota 
491.22 	Center for Professional Development Registry.
491.23 	(c) Every 12 months, a legal nonlicensed family child care provider who is unrelated to 
491.24 	the child they care for must complete two hours of training in caring for children approved 
491.25 	by the commissioner.
491.26 	(c) (d) This subdivision only applies to legal nonlicensed family child care providers.

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

491.28 	Sec. 10. Minnesota Statutes 2024, section 142E.16, subdivision 7, is amended to read:
491.29 		Subd. 7.Record-keeping requirement. (a) As a condition of payment, all providers 
491.30 	receiving child care assistance payments must:
491.31 	(1) keep accurate and legible daily attendance records at the site where services are 
491.32 	delivered for children receiving child care assistance; and
492.1 	(2) make those records available immediately to the county or the commissioner upon 
492.2 	request. Any records not provided to a county or the commissioner at the date and time of 
492.3 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
492.4 	to contest an overpayment or disqualification of the provider.; and
492.5 	(3) submit data on child enrollment and attendance in the form and manner specified by 
492.6 	the commissioner.
492.7 	(b) As a condition of payment, attendance records must be completed daily and include 
492.8 	the date, the first and last name of each child in attendance, and the times when each child 
492.9 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
492.10 	off to and picked up from the child care provider must be entered by the person dropping 
492.11 	off or picking up the child. The daily attendance records must be retained at the site where 
492.12 	services are delivered for six years after the date of service.
492.13 	(c) When the county or the commissioner knows or has reason to believe that a current 
492.14 	or former provider has not complied with the record-keeping requirement in this subdivision:
492.15 	(1) the commissioner may:
492.16 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
492.17 	under section 142E.17, subdivision 9, paragraph (d);
492.18 	(ii) pursue an administrative disqualification under sections 142E.51, subdivision 5, and 
492.19 	256.98; or
492.20 	(iii) take an action against the provider under sections 142E.50 to 142E.58 section 
492.21 	142E.51; or
492.22 	(2) a county or the commissioner may establish an attendance record overpayment under 
492.23 	paragraph (d).
492.24 	(d) To calculate an attendance record overpayment under this subdivision, the 
492.25 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
492.26 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
492.27 	incomplete, inaccurate, or otherwise inadequate.
492.28 	(e) The commissioner shall develop criteria for a county to determine an attendance 
492.29 	record overpayment under this subdivision.

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

493.1 	Sec. 11. Minnesota Statutes 2024, section 245.975, subdivision 1, is amended to read:
493.2 		Subdivision 1.Creation and appointment. The Office of the Ombudsperson for Family 
493.3 	Child Care Providers is hereby created. The governor shall appoint an ombudsperson in the 
493.4 	unclassified service to assist family child care providers with licensing, compliance, and 
493.5 	other issues facing family child care providers. The ombudsperson must be selected without 
493.6 	regard to the person's political affiliation and must have been a licensed family child care 
493.7 	provider for at least three years. The ombudsperson shall serve a term of four years, which 
493.8 	may be renewed, and may be removed prior to the end of the term for just cause.

493.9 	Sec. 12. ELIMINATING SCHEDULE REPORTER DESIGNATION.
 493.10 	Notwithstanding Minnesota Statutes, section 142E.04, subdivisions 6, 7, and 8, the 
493.11 	commissioner of children, youth, and families must allocate additional basic sliding fee 
493.12 	child care money for calendar years 2026 and 2027 to counties and Tribes to account for 
493.13 	eliminating the schedule reporter designation in the child care assistance program. In 
493.14 	allocating the additional money, the commissioner shall consider:
493.15 	(1) the number of children who are in schedule reporter families; and
493.16 	(2) the average basic sliding fee cost of care in the county or Tribe.

493.17 	Sec. 13. REVISOR INSTRUCTION.
 493.18 	The revisor of statutes shall renumber Minnesota Statutes, section 245.0962, as Minnesota 
493.19 	Statutes, section 142A.47. The revisor shall also make necessary cross-reference changes 
493.20 	consistent with the renumbering.

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

493.22 	Sec. 14. REVISOR INSTRUCTION.
 493.23 	The revisor of statutes shall renumber Minnesota Statutes, section 142D.12, subdivision 
493.24 	3, as Minnesota Statutes, section 120B.121. The revisor shall also make necessary 
493.25 	cross-reference changes consistent with the renumbering.

493.26 	Sec. 15. REVISOR INSTRUCTION.
 493.27 	The revisor of statutes shall renumber Minnesota Statutes, section 124D.129, as 
493.28 	Minnesota Statutes, section 142A.48. The revisor shall also make necessary cross-reference 
493.29 	changes consistent with the renumbering.

494.1 	ARTICLE 20
494.2 	CHILDREN AND FAMILIES LICENSING POLICY

494.3 	Section 1. Minnesota Statutes 2024, section 142B.10, subdivision 14, is amended to read:
494.4 		Subd. 14.Grant of license; license extension. (a) If the commissioner determines that 
494.5 	the program complies with all applicable rules and laws, the commissioner shall issue a 
494.6 	license consistent with this section or, if applicable, a temporary change of ownership license 
494.7 	under section 142B.11. At minimum, the license shall state:
494.8 	(1) the name of the license holder;
494.9 	(2) the address of the program;
494.10 	(3) the effective date and expiration date of the license;
494.11 	(4) the type of license;
494.12 	(5) the maximum number and ages of persons that may receive services from the program; 
494.13 	and
494.14 	(6) any special conditions of licensure.
494.15 	(b) The commissioner may issue a license for a period not to exceed two years if:
494.16 	(1) the commissioner is unable to conduct the observation required by subdivision 11, 
494.17 	paragraph (a), clause (3), because the program is not yet operational;
494.18 	(2) certain records and documents are not available because persons are not yet receiving 
494.19 	services from the program; and
494.20 	(3) the applicant complies with applicable laws and rules in all other respects.
494.21 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
494.22 	or persons will be placed or cared for in the licensed program.
494.23 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
494.24 	license if the applicant, license holder, or an affiliated controlling individual has:
494.25 	(1) been disqualified and the disqualification was not set aside and no variance has been 
494.26 	granted;
494.27 	(2) been denied a license under this chapter or chapter 245A within the past two years;
494.28 	(3) had a license issued under this chapter or chapter 245A revoked within the past five 
494.29 	years; or
495.1 	(4) failed to submit the information required of an applicant under subdivision 1, 
495.2 	paragraph (f), (g), or (h), after being requested by the commissioner.
495.3 	When a license issued under this chapter or chapter 245A is revoked, the license holder 
495.4 	and each affiliated controlling individual with a revoked license may not hold any license 
495.5 	under chapter 142B for five years following the revocation, and other licenses held by the 
495.6 	applicant or license holder or licenses affiliated with each controlling individual shall also 
495.7 	be revoked.
495.8 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
495.9 	affiliated with a license holder or controlling individual that had a license revoked within 
495.10 	the past five years if the commissioner determines that (1) the license holder or controlling 
495.11 	individual is operating the program in substantial compliance with applicable laws and rules 
495.12 	and (2) the program's continued operation is in the best interests of the community being 
495.13 	served.
495.14 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
495.15 	to an application that is affiliated with an applicant, license holder, or controlling individual 
495.16 	that had an application denied within the past two years or a license revoked within the past 
495.17 	five years if the commissioner determines that (1) the applicant or controlling individual 
495.18 	has operated one or more programs in substantial compliance with applicable laws and rules 
495.19 	and (2) the program's operation would be in the best interests of the community to be served.
495.20 	(g) In determining whether a program's operation would be in the best interests of the 
495.21 	community to be served, the commissioner shall consider factors such as the number of 
495.22 	persons served, the availability of alternative services available in the surrounding 
495.23 	community, the management structure of the program, whether the program provides 
495.24 	culturally specific services, and other relevant factors.
495.25 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
495.26 	living in the household where the services will be provided as specified under section 
495.27 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
495.28 	and no variance has been granted.
495.29 	(i) Pursuant to section 142B.18, subdivision 1, paragraph (b), when a license issued 
495.30 	under this chapter has been suspended or revoked and the suspension or revocation is under 
495.31 	appeal, the program may continue to operate pending a final order from the commissioner. 
495.32 	If the license under suspension or revocation will expire before a final order is issued, a 
495.33 	temporary provisional license may be issued provided any applicable license fee is paid 
495.34 	before the temporary provisional license is issued.
496.1 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
496.2 	a controlling individual or license holder, and the controlling individual or license holder 
496.3 	is ordered under section 245C.17 to be immediately removed from direct contact with 
496.4 	persons receiving services or is ordered to be under continuous, direct supervision when 
496.5 	providing direct contact services, the program may continue to operate only if the program 
496.6 	complies with the order and submits documentation demonstrating compliance with the 
496.7 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
496.8 	if the disqualification is not set aside and no variance is granted, the order to immediately 
496.9 	remove the individual from direct contact or to be under continuous, direct supervision 
496.10 	remains in effect pending the outcome of a hearing and final order from the commissioner.
496.11 	(k) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
496.12 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
496.13 	relocation within the same county by a licensed family day care provider, shall be considered 
496.14 	an extension of the license for a period of no more than 30 calendar days or until the new 
496.15 	license is issued, whichever occurs first, provided the county agency has determined the 
496.16 	family day care provider meets licensure requirements at the new location.
496.17 	(l) Unless otherwise specified by statute, all licenses issued under this chapter expire at 
496.18 	12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
496.19 	apply for and be granted comply with the requirements in section 142B.12 and be reissued
496.20 	a new license to operate the program or the program must not be operated after the expiration 
496.21 	date. Child foster care license holders must apply for and be granted a new license to operate 
496.22 	the program or the program must not be operated after the expiration date. Upon 
496.23 	implementation of the provider licensing and reporting hub, licenses may be issued each 
496.24 	calendar year.
496.25 	(m) The commissioner shall not issue or reissue a license under this chapter if it has 
496.26 	been determined that a tribal licensing authority has established jurisdiction to license the 
496.27 	program or service.
496.28 	(n) The commissioner of children, youth, and families shall coordinate and share data 
496.29 	with the commissioner of human services to enforce this section.

496.30 	Sec. 2. Minnesota Statutes 2024, section 142B.16, subdivision 2, is amended to read:
496.31 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
496.32 	believes that the contents of the commissioner's correction order are in error, the applicant 
496.33 	or license holder may ask the Department of Children, Youth, and Families to reconsider 
496.34 	the parts of the correction order that are alleged to be in error. The request for reconsideration 
497.1 	must be made in writing and must be postmarked and sent to the commissioner within 20 
497.2 	calendar days after receipt of the correction order by the applicant or license holder or 
497.3 	submitted in the provider licensing and reporting hub within 20 calendar days from the date 
497.4 	the commissioner issued the order through the hub, and:
497.5 	(1) specify the parts of the correction order that are alleged to be in error;
497.6 	(2) explain why they are in error; and
497.7 	(3) include documentation to support the allegation of error.
497.8 	(b) Upon implementation of the provider licensing and reporting hub, the provider must 
497.9 	use the hub to request reconsideration. A request for reconsideration does not stay any 
497.10 	provisions or requirements of the correction order. The commissioner's disposition of a 
497.11 	request for reconsideration is final and not subject to appeal under chapter 14.
497.12 	(b) (c) This paragraph applies only to licensed family child care providers. A licensed 
497.13 	family child care provider who requests reconsideration of a correction order under paragraph 
497.14 	(a) may also request, on a form and in the manner prescribed by the commissioner, that the 
497.15 	commissioner expedite the review if:
497.16 	(1) the provider is challenging a violation and provides a description of how complying 
497.17 	with the corrective action for that violation would require the substantial expenditure of 
497.18 	funds or a significant change to their program; and
497.19 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
497.20 	to ensure the health and safety of children in care pending the commissioner's review of the 
497.21 	correction order.
497.22 	(d) The commissioner must not publicly post the correction order for licensed child care 
497.23 	centers or licensed family child care providers on the department's website until:
497.24 	(1) after the 20-calendar-day period for requesting reconsideration; or
497.25 	(2) if the applicant or license holder requested reconsideration, after the commissioner's 
497.26 	disposition of a request for reconsideration is provided to the applicant or license holder.

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

498.1 	Sec. 3. Minnesota Statutes 2024, section 142B.171, subdivision 2, is amended to read:
498.2 		Subd. 2.Documented technical assistance.  (a) In lieu of a correction order under section 
498.3 	142B.16, the commissioner shall provide documented technical assistance to a family child 
498.4 	care or child care center license holder if the commissioner finds that:
498.5 	(1) the license holder has failed to comply with a requirement in this chapter or Minnesota 
498.6 	Rules, chapter 9502 or 9503, that the commissioner determines to be low risk as determined 
498.7 	by the child care weighted risk system;
498.8 	(2) the noncompliance does not imminently endanger the health, safety, or rights of the 
498.9 	persons served by the program; and
498.10 	(3) the license holder did not receive documented technical assistance or a correction 
498.11 	order for the same violation at the license holder's most recent annual licensing inspection.
498.12 	(b) Documented technical assistance must include communication from the commissioner 
498.13 	to the license holder that:
498.14 	(1) states the conditions that constitute a violation of a law or rule;
498.15 	(2) references the specific law or rule violated; and
498.16 	(3) explains remedies for correcting the violation.
498.17 	(c) The commissioner shall not publicly publish documented technical assistance on the 
498.18 	department's website.

498.19 	Sec. 4. [142B.181] POSTING LICENSING ACTIONS ON DEPARTMENT 
498.20 	WEBSITE.
498.21 	(a) The commissioner must post a summary document for each licensing action issued 
498.22 	to a licensed child care center and family child care provider on the Licensing Information 
498.23 	Lookup public website maintained by the Department of Children, Youth, and Families. 
498.24 	The commissioner must not post any communication, including letters, from the 
498.25 	commissioner to the center or provider.
498.26 	(b) The commissioner must remove a summary document from the Licensing Information 
498.27 	Lookup public website within ten days of the length of time that the document is required 
498.28 	to be posted under Code of Federal Regulations, title 45, section 98.33.

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

499.1 	Sec. 5. Minnesota Statutes 2024, section 142B.30, subdivision 1, is amended to read:
499.2 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
499.3 	agencies that have been designated or licensed by the commissioner to perform licensing 
499.4 	functions and activities under section 142B.10; to recommend denial of applicants under 
499.5 	section 142B.15; to issue correction orders, to issue variances, and to recommend a 
499.6 	conditional license under section 142B.16; or to recommend suspending or revoking a 
499.7 	license or issuing a fine under section 142B.18, shall comply with rules and directives of 
499.8 	the commissioner governing those functions and with this section. The following variances 
499.9 	are excluded from the delegation of variance authority and may be issued only by the 
499.10 	commissioner:
499.11 	(1) dual licensure of family child care and family child foster care;
499.12 	(2) child foster care maximum age requirement;
499.13 	(3) variances regarding disqualified individuals;
499.14 	(4) variances to requirements relating to chemical use problems of a license holder or a 
499.15 	household member of a license holder; and
499.16 	(5) variances to section 142B.74 for a time-limited period. If the commissioner grants 
499.17 	a variance under this clause, the license holder must provide notice of the variance to all 
499.18 	parents and guardians of the children in care.
499.19 	(b) The commissioners of human services and children, youth, and families must both 
499.20 	approve a variance for dual licensure of family child foster care and family adult foster care 
499.21 	or family adult foster care and family child care. Variances under this paragraph are excluded 
499.22 	from the delegation of variance authority and may be issued only by both commissioners.
499.23 	(c) Except as provided in section 142B.41, subdivision 4, paragraph (e), a county agency 
499.24 	must not grant a license holder a variance to exceed the maximum allowable family child 
499.25 	care license capacity of 14 children.
499.26 	(d) A county agency that has been designated by the commissioner to issue family child 
499.27 	care variances must:
499.28 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
499.29 	public website and update the policies as necessary; and
499.30 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
499.31 	all family child care license holders in the county.
500.1 	(e) Before the implementation of NETStudy 2.0, county agencies must report information 
500.2 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
500.3 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
500.4 	commissioner at least monthly in a format prescribed by the commissioner.
500.5 	(f) For family child care programs, the commissioner shall require a county agency to 
500.6 	conduct one unannounced licensing review at least annually.
500.7 	(g) A child foster care license issued under this section may be issued for up to two years
500.8 	until implementation of the provider licensing and reporting hub. Upon implementation of 
500.9 	the provider licensing and reporting hub, licenses may be issued each calendar year.
500.10 	(h) A county agency shall report to the commissioner, in a manner prescribed by the 
500.11 	commissioner, the following information for a licensed family child care program:
500.12 	(1) the results of each licensing review completed, including the date of the review, and 
500.13 	any licensing correction order issued;
500.14 	(2) any death, serious injury, or determination of substantiated maltreatment; and
500.15 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
500.16 	information under this clause must also be reported to the state fire marshal within two 
500.17 	business days of receiving notice from a licensed family child care provider.

500.18 	Sec. 6. Minnesota Statutes 2024, section 142B.41, is amended by adding a subdivision to 
500.19 	read:
500.20 		Subd. 14.Staff distribution. Notwithstanding Minnesota Rules, part 9503.0040, subpart 
500.21 	2, item B, a child care aide in a licensed child care center may be substituted for a teacher 
500.22 	during morning arrival and afternoon departure times if the total arrival and departure time 
500.23 	does not exceed 25 percent of the center's daily hours of operation. For a child care aide to 
500.24 	be substituted for a teacher under this subdivision, the child care aide must:
500.25 	(1) be 18 years of age or older;
500.26 	(2) have been employed by the child care center for a minimum of 30 days; and
500.27 	(3) have completed the training required under section 142B.65, including orientation 
500.28 	training and the training required within the first 90 days of employment.

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

501.1 	Sec. 7. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
501.2 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
501.3 	licensed by the Department of Human Services under chapter 245A or the Department of 
501.4 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
501.5 	serve a child or children under eight nine years of age must document training that fulfills 
501.6 	the requirements in this subdivision.
501.7 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
501.8 	age eight nine in a motor vehicle, the person transporting the child must satisfactorily 
501.9 	complete training on the proper use and installation of child restraint systems in motor 
501.10 	vehicles. Training completed under this section may be used to meet initial or ongoing 
501.11 	training under Minnesota Rules, part 2960.3070, subparts 1 and 2.
501.12 	(c) Training required under this section must be completed at orientation or initial training 
501.13 	and repeated at least once every five years. At a minimum, the training must address the 
501.14 	proper use of child restraint systems based on the child's size, weight, and age, and the 
501.15 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
501.16 	holder to transport the child or children.
501.17 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
501.18 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
501.19 	holders may obtain a list of certified and approved trainers through the Department of Public 
501.20 	Safety website or by contacting the agency.
501.21 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
501.22 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
501.23 	for a relative who completes a child seat safety check up. The child seat safety check up 
501.24 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
501.25 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
501.26 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
501.27 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
501.28 	a license and may transport a relative foster child younger than eight years of age. A child 
501.29 	seat safety check up must be completed each time a child requires a different size car seat 
501.30 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
501.31 	complete training that meets the other requirements of this subdivision prior to placement 
501.32 	of another foster child younger than eight years of age in the home or prior to the renewal 
501.33 	of the child foster care license.

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

502.1 	Sec. 8. Minnesota Statutes 2024, section 142B.65, subdivision 8, is amended to read:
502.2 		Subd. 8.Child passenger restraint systems; training requirement.  (a) Before a license 
502.3 	holder transports a child or children under age eight nine in a motor vehicle, the person 
502.4 	placing the child or children in a passenger restraint must satisfactorily complete training 
502.5 	on the proper use and installation of child restraint systems in motor vehicles.
502.6 	(b) Training required under this subdivision must be repeated at least once every five 
502.7 	years. At a minimum, the training must address the proper use of child restraint systems 
502.8 	based on the child's size, weight, and age, and the proper installation of a car seat or booster 
502.9 	seat in the motor vehicle used by the license holder to transport the child or children.
502.10 	(c) Training required under this subdivision must be provided by individuals who are 
502.11 	certified and approved by the Department of Public Safety, Office of Traffic Safety. License 
502.12 	holders may obtain a list of certified and approved trainers through the Department of Public 
502.13 	Safety website or by contacting the agency.
502.14 	(d) Child care providers that only transport school-age children as defined in section 
502.15 	142B.01, subdivision 25, in child care buses as defined in section 169.448, subdivision 1, 
502.16 	paragraph (e), are exempt from this subdivision.
502.17 	(e) Training completed under this subdivision may be used to meet in-service training 
502.18 	requirements under subdivision 9. Training completed within the previous five years is 
502.19 	transferable upon a staff person's change in employment to another child care center.

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

502.21 	Sec. 9. Minnesota Statutes 2024, section 142B.65, subdivision 9, is amended to read:
502.22 		Subd. 9.In-service training. (a) A license holder must ensure that the center director, 
502.23 	staff persons, substitutes, and unsupervised volunteers complete in-service training each 
502.24 	calendar year.
502.25 	(b) The center director and staff persons who work more than 20 hours per week must 
502.26 	complete 24 hours of in-service training each calendar year. Staff persons who work 20 
502.27 	hours or less per week must complete 12 hours of in-service training each calendar year. 
502.28 	Substitutes and unsupervised volunteers must complete at least two hours of training each 
502.29 	year, and the training must include the requirements of paragraphs (d) to (g) and do not 
502.30 	otherwise have a minimum number of hours of training to complete.
502.31 	(c) The number of in-service training hours may be prorated for individuals center 
502.32 	directors and staff persons not employed for an entire year.
503.1 	(d) Each year, in-service training must include:
503.2 	(1) the center's procedures for maintaining health and safety according to section 142B.66 
503.3 	and Minnesota Rules, part 9503.0140, and handling emergencies and accidents according 
503.4 	to Minnesota Rules, part 9503.0110;
503.5 	(2) the reporting responsibilities under chapter 260E and Minnesota Rules, part 
503.6 	9503.0130;
503.7 	(3) at least one-half hour of training on the standards under section 142B.46 and on 
503.8 	reducing the risk of sudden unexpected infant death as required under subdivision 6, if 
503.9 	applicable; and
503.10 	(4) at least one-half hour of training on the risk of abusive head trauma from shaking 
503.11 	infants and young children as required under subdivision 7, if applicable.
503.12 	(e) Each year, or when a change is made, whichever is more frequent, in-service training 
503.13 	must be provided on: (1) the center's risk reduction plan under section 142B.54, subdivision 
503.14 	2; and (2) a child's individual child care program plan as required under Minnesota Rules, 
503.15 	part 9503.0065, subpart 3.
503.16 	(f) At least once every two calendar years, the in-service training must include:
503.17 	(1) child development and learning training under subdivision 3;
503.18 	(2) pediatric first aid that meets the requirements of subdivision 4;
503.19 	(3) pediatric cardiopulmonary resuscitation training that meets the requirements of 
503.20 	subdivision 5;
503.21 	(4) cultural dynamics training to increase awareness of cultural differences; and
503.22 	(5) disabilities training to increase awareness of differing abilities of children.
503.23 	(g) At least once every five years, in-service training must include child passenger 
503.24 	restraint training that meets the requirements of subdivision 8, if applicable.
503.25 	(h) The remaining hours of the in-service training requirement must be met by completing 
503.26 	training in the following content areas of the Minnesota Knowledge and Competency 
503.27 	Framework:
503.28 	(1) Content area I: child development and learning;
503.29 	(2) Content area II: developmentally appropriate learning experiences;
503.30 	(3) Content area III: relationships with families;
504.1 	(4) Content area IV: assessment, evaluation, and individualization;
504.2 	(5) Content area V: historical and contemporary development of early childhood 
504.3 	education;
504.4 	(6) Content area VI: professionalism;
504.5 	(7) Content area VII: health, safety, and nutrition; and
504.6 	(8) Content area VIII: application through clinical experiences.
504.7 	(i) For purposes of this subdivision, the following terms have the meanings given them.
504.8 	(1) "Child development and learning training" means training in understanding how 
504.9 	children develop physically, cognitively, emotionally, and socially and learn as part of the 
504.10 	children's family, culture, and community.
504.11 	(2) "Developmentally appropriate learning experiences" means creating positive learning 
504.12 	experiences, promoting cognitive development, promoting social and emotional development, 
504.13 	promoting physical development, and promoting creative development.
504.14 	(3) "Relationships with families" means training on building a positive, respectful 
504.15 	relationship with the child's family.
504.16 	(4) "Assessment, evaluation, and individualization" means training in observing, 
504.17 	recording, and assessing development; assessing and using information to plan; and assessing 
504.18 	and using information to enhance and maintain program quality.
504.19 	(5) "Historical and contemporary development of early childhood education" means 
504.20 	training in past and current practices in early childhood education and how current events 
504.21 	and issues affect children, families, and programs.
504.22 	(6) "Professionalism" means training in knowledge, skills, and abilities that promote 
504.23 	ongoing professional development.
504.24 	(7) "Health, safety, and nutrition" means training in establishing health practices, ensuring 
504.25 	safety, and providing healthy nutrition.
504.26 	(8) "Application through clinical experiences" means clinical experiences in which a 
504.27 	person applies effective teaching practices using a range of educational programming models.
504.28 	(j) The license holder must ensure that documentation, as required in subdivision 10, 
504.29 	includes the number of total training hours required to be completed, name of the training, 
504.30 	the Minnesota Knowledge and Competency Framework content area, number of hours 
504.31 	completed, and the director's approval of the training.
505.1 	(k) In-service training completed by a staff person that is not specific to that child care 
505.2 	center is transferable upon a staff person's change in employment to another child care 
505.3 	program.

505.4 	Sec. 10. Minnesota Statutes 2024, section 142B.66, subdivision 3, is amended to read:
505.5 		Subd. 3.Emergency preparedness. (a) A licensed child care center must have a written 
505.6 	emergency plan for emergencies that require evacuation, sheltering, or other protection of 
505.7 	a child, such as fire, natural disaster, intruder, or other threatening situation that may pose 
505.8 	a health or safety hazard to a child. The plan must be written on a form developed by the 
505.9 	commissioner and must include:
505.10 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
505.11 	(2) a designated relocation site and evacuation route;
505.12 	(3) procedures for notifying a child's parent or legal guardian of the evacuation, relocation, 
505.13 	shelter-in-place, or lockdown, including procedures for reunification with families;
505.14 	(4) accommodations for a child with a disability or a chronic medical condition;
505.15 	(5) procedures for storing a child's medically necessary medicine that facilitates easy 
505.16 	removal during an evacuation or relocation;
505.17 	(6) procedures for continuing operations in the period during and after a crisis;
505.18 	(7) procedures for communicating with local emergency management officials, law 
505.19 	enforcement officials, or other appropriate state or local authorities; and
505.20 	(8) accommodations for infants and toddlers.
505.21 	(b) The license holder must train staff persons on the emergency plan at orientation, 
505.22 	when changes are made to the plan, and at least once each calendar year. Training must be 
505.23 	documented in each staff person's personnel file.
505.24 	(c) The license holder must conduct drills according to the requirements in Minnesota 
505.25 	Rules, part 9503.0110, subpart 3. The date and time of the drills must be documented.
505.26 	(d) The license holder must review and update the emergency plan annually each calendar 
505.27 	year. Documentation of the annual yearly emergency plan review shall be maintained in 
505.28 	the program's administrative records.
505.29 	(e) The license holder must include the emergency plan in the program's policies and 
505.30 	procedures as specified under section 142B.10, subdivision 21. The license holder must 
506.1 	provide a physical or electronic copy of the emergency plan to the child's parent or legal 
506.2 	guardian upon enrollment.
506.3 	(f) The relocation site and evacuation route must be posted in a visible place as part of 
506.4 	the written procedures for emergencies and accidents in Minnesota Rules, part 9503.0140, 
506.5 	subpart 21.

506.6 	Sec. 11. Minnesota Statutes 2024, section 142B.70, subdivision 7, is amended to read:
506.7 		Subd. 7.Child passenger restraint systems; training requirement. (a) A license 
506.8 	holder must comply with all seat belt and child passenger restraint system requirements 
506.9 	under section 169.685.
506.10 	(b) Family and group family child care programs licensed by the Department of Children, 
506.11 	Youth, and Families that serve a child or children under eight nine years of age must 
506.12 	document training that fulfills the requirements in this subdivision.
506.13 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
506.14 	child or children under age eight nine in a motor vehicle, the person placing the child or 
506.15 	children in a passenger restraint must satisfactorily complete training on the proper use and 
506.16 	installation of child restraint systems in motor vehicles. Training completed under this 
506.17 	subdivision may be used to meet initial training under subdivision 1 or ongoing training 
506.18 	under subdivision 8.
506.19 	(2) Training required under this subdivision must be at least one hour in length, completed 
506.20 	at initial training, and repeated at least once every five years. At a minimum, the training 
506.21 	must address the proper use of child restraint systems based on the child's size, weight, and 
506.22 	age, and the proper installation of a car seat or booster seat in the motor vehicle used by the 
506.23 	license holder to transport the child or children.
506.24 	(3) Training under this subdivision must be provided by individuals who are certified 
506.25 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
506.26 	may obtain a list of certified and approved trainers through the Department of Public Safety 
506.27 	website or by contacting the agency.
506.28 	(c) Child care providers that only transport school-age children as defined in section 
506.29 	142B.01, subdivision 13, paragraph (f), in child care buses as defined in section 169.448, 
506.30 	subdivision 1, paragraph (e), are exempt from this subdivision.

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

507.1 	Sec. 12. Minnesota Statutes 2024, section 142B.70, subdivision 8, is amended to read:
507.2 		Subd. 8.Training requirements for family and group family child care. (a) For 
507.3 	purposes of family and group family child care, the license holder and each second adult 
507.4 	caregiver must complete 16 hours of ongoing training each year. Repeat of topical training 
507.5 	requirements in subdivisions 3 to 9 shall count toward the annual 16-hour training 
507.6 	requirement. Additional ongoing training subjects to meet the annual 16-hour training 
507.7 	requirement must be selected from the following areas:
507.8 	(1) child development and learning training in understanding how a child develops 
507.9 	physically, cognitively, emotionally, and socially, and how a child learns as part of the 
507.10 	child's family, culture, and community;
507.11 	(2) developmentally appropriate learning experiences, including training in creating 
507.12 	positive learning experiences, promoting cognitive development, promoting social and 
507.13 	emotional development, promoting physical development, promoting creative development; 
507.14 	and behavior guidance;
507.15 	(3) relationships with families, including training in building a positive, respectful 
507.16 	relationship with the child's family;
507.17 	(4) assessment, evaluation, and individualization, including training in observing, 
507.18 	recording, and assessing development; assessing and using information to plan; and assessing 
507.19 	and using information to enhance and maintain program quality;
507.20 	(5) historical and contemporary development of early childhood education, including 
507.21 	training in past and current practices in early childhood education and how current events 
507.22 	and issues affect children, families, and programs;
507.23 	(6) professionalism, including training in knowledge, skills, and abilities that promote 
507.24 	ongoing professional development; and
507.25 	(7) health, safety, and nutrition, including training in establishing healthy practices; 
507.26 	ensuring safety; and providing healthy nutrition.
507.27 	(b) A provider who is approved as a trainer through the Develop data system may count 
507.28 	up to two hours of training instruction toward the annual 16-hour training requirement in 
507.29 	paragraph (a). The provider may only count training instruction hours for the first instance 
507.30 	in which they deliver a particular content-specific training during each licensing year. Hours 
507.31 	counted as training instruction must be approved through the Develop data system with 
507.32 	attendance verified on the trainer's individual learning record and must be in Knowledge 
508.1 	and Competency Framework content area VII A (Establishing Healthy Practices) or B 
508.2 	(Ensuring Safety).
508.3 	(c) Substitutes and adult caregivers who provide care for 500 or fewer hours per year 
508.4 	must complete a minimum of one hour of training each calendar year, and the training must 
508.5 	include the requirements in subdivisions 3, 4, 5, 6, and 9.

508.6 	Sec. 13. Minnesota Statutes 2024, section 142C.06, is amended by adding a subdivision 
508.7 	to read:
508.8 		Subd. 4.Requirement to post conditional certification. Upon receipt of any order of 
508.9 	conditional certification issued by the commissioner under this section, and notwithstanding 
508.10 	a pending request for reconsideration of the order of conditional certification by the 
508.11 	certification holder, the certification holder shall post the order of conditional certification 
508.12 	in a place that is conspicuous to the people receiving services and all visitors to the facility 
508.13 	for the duration of the conditional certification. When the order of conditional certification 
508.14 	is accompanied by a maltreatment investigation memorandum prepared under chapter 260E, 
508.15 	the investigation memoranda must be posted with the order of conditional certification.

508.16 	Sec. 14. Minnesota Statutes 2024, section 142C.11, subdivision 8, is amended to read:
508.17 		Subd. 8.Required policies. A certified center must have written policies for health and 
508.18 	safety items in subdivisions 1 to 6, 9, and 10.

508.19 	Sec. 15. Minnesota Statutes 2024, section 142C.12, subdivision 1, is amended to read:
508.20 		Subdivision 1.First aid and cardiopulmonary resuscitation. (a) Before having 
508.21 	unsupervised direct contact with a child, but within 90 days after the first date of direct 
508.22 	contact with a child, the director, all staff persons, substitutes, and unsupervised volunteers 
508.23 	must successfully complete pediatric first aid and pediatric cardiopulmonary resuscitation 
508.24 	(CPR) training, unless the training has been completed within the previous two calendar 
508.25 	years. Staff must complete the pediatric first aid and pediatric CPR training at least every 
508.26 	other calendar year and the center must document the training in the staff person's personnel 
508.27 	record.
508.28 	(b) Training completed under this subdivision may be used to meet the in-service training 
508.29 	requirements under subdivision 6.
508.30 	(c) Training must include CPR and techniques for providing immediate care to people 
508.31 	experiencing life-threatening cardiac emergencies, choking, bleeding, fractures and sprains, 
508.32 	head injuries, poisoning, and burns. Training developed by the American Heart Association, 
509.1 	the American Red Cross, or another organization that uses nationally recognized, 
509.2 	evidence-based guidelines meets these requirements.

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

509.4 	Sec. 16. Minnesota Statutes 2024, section 142C.12, subdivision 6, is amended to read:
509.5 		Subd. 6.In-service training. (a) The certified center must ensure that the director and 
509.6 	all staff persons, including substitutes and unsupervised volunteers, are trained at least once 
509.7 	each calendar year on health and safety requirements in this section and sections 142C.10, 
509.8 	142C.11, and 142C.13.
509.9 	(b) The director and each staff person, not including substitutes, must complete at least 
509.10 	six hours of training each calendar year. Substitutes must complete at least two hours of 
509.11 	training each calendar year. Training required under paragraph (a) may be used toward the 
509.12 	hourly training requirements of this subdivision.

509.13 	Sec. 17. Minnesota Statutes 2024, section 245A.18, subdivision 1, is amended to read:
509.14 		Subdivision 1.Seat belt and child passenger restraint system use. All license holders 
509.15 	that transport children must comply with the requirements of section 142B.51, subdivision 
509.16 	1, and license holders that transport a child or children under eight nine years of age must 
509.17 	document training that fulfills the requirements in section 142B.51, subdivision 2.

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

509.19 	Sec. 18. Laws 2021, First Special Session chapter 7, article 2, section 81, is amended to 
509.20 	read:
509.21 	Sec. 81. FAMILY CHILD CARE REGULATION MODERNIZATION.
 509.22 	(a) The commissioner of human services shall children, youth, and families must contract 
509.23 	with an experienced and independent organization or individual consultant to conduct the 
509.24 	work outlined in this section. If practicable, the commissioner must contract with the National 
509.25 	Association for Regulatory Administration.
509.26 	(b) The consultant must develop a proposal for updated family child care licensing 
509.27 	standards and solicit input from stakeholders as described in paragraph (d). The proposed 
509.28 	new standards must protect the health and safety of children in family child care programs 
509.29 	and be child centered, family friendly, and fair to providers.
510.1 	(c) The consultant must work with stakeholders and the Department of Children, Youth, 
510.2 	and Families, as described in paragraph (d), to develop a proposal for a risk-based model 
510.3 	for monitoring compliance with family child care licensing standards, grounded in national 
510.4 	regulatory best practices. Violations in the new model must be weighted to reflect the 
510.5 	potential risk they pose to children's health and safety, and licensing sanctions must be tied 
510.6 	to the potential risk. The proposed new model must protect the health and safety of children 
510.7 	in family child care programs and be child-centered, family-friendly, and fair to providers.
510.8 	(d) The consultant shall must develop and implement a stakeholder engagement process 
510.9 	that solicits input from parents, licensed family child care providers, county licensors, staff 
510.10 	of the Department of Human Services Children, Youth, and Families, and experts in child 
510.11 	development about licensing standards, tiers for violations of the standards based on the 
510.12 	potential risk of harm that each violation poses, and licensing sanctions for each tier. The 
510.13 	consultant and commissioner must engage with working groups of licensed family child 
510.14 	care providers at least five times throughout the stakeholder engagement process, and include 
510.15 	both daytime and evening engagement opportunities as needed.
510.16 	(e) The consultant shall solicit input from parents, licensed family child care providers, 
510.17 	county licensors, and staff of the Department of Human Services Children, Youth, and 
510.18 	Families about which family child care providers should be eligible for abbreviated 
510.19 	inspections that predict compliance with other licensing standards for licensed family child 
510.20 	care providers using key indicators previously identified by an empirically based statistical 
510.21 	methodology developed by the National Association for Regulatory Administration and the 
510.22 	Research Institute for Key Indicators.
510.23 	(f) No later than February December 1, 2024 2025, the commissioner shall must submit 
510.24 	a report and proposed legislation required to implement the new licensing model and the 
510.25 	new licensing standards to the chairs and ranking minority members of the legislative 
510.26 	committees with jurisdiction over child care regulation. Throughout the drafting of the 
510.27 	report and proposed legislation required under this paragraph, the commissioner must engage 
510.28 	providers whose primary language is not English to have those providers review translated 
510.29 	drafts of the report and written materials provided at engagement sessions to provide feedback 
510.30 	on the draft standards. This engagement must occur within focus groups or meetings that 
510.31 	are held at convenient times for the providers, including both daytime and evening sessions.
510.32 	(g) The proposals developed under paragraphs (b) and (c); any presentations, summary 
510.33 	documents, engagement invitations, surveys, and drafts of the report used in the stakeholder 
510.34 	engagement process under paragraph (d) or when soliciting input under paragraph (e); and 
511.1 	the report required under paragraph (f) must also be made available in Hmong, Somali, and 
511.2 	Spanish.
511.3 	(h) The updated family child care licensing standards proposed under paragraph (b) and 
511.4 	the risk-based model for monitoring compliance with family child care licensing standards 
511.5 	proposed under paragraph (c) must not be implemented any earlier than January 1, 2027.

511.6 	ARTICLE 21
511.7 	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES RECODIFICATION 
511.8 	CONFORMING CHANGES

511.9 	Section 1. Minnesota Statutes 2024, section 3.922, subdivision 1, is amended to read:
511.10 		Subdivision 1.Creation, membership.  The state Indian Affairs Council is created to 
511.11 	consist of the following members:
511.12 	(1) one member of each of the following federally recognized tribes, designated by the 
511.13 	elected tribal president or chairperson of the governing bodies of:
511.14 	the Fond du Lac Band;
511.15 	the Grand Portage Band;
511.16 	the Mille Lacs Band;
511.17 	the White Earth Band;
511.18 	the Bois Forte (Nett Lake) Band;
511.19 	the Leech Lake Band;
511.20 	the Red Lake Nation;
511.21 	the Upper Sioux Community;
511.22 	the Lower Sioux Community;
511.23 	the Shakopee Mdewakanton Sioux Community;
511.24 	the Prairie Island Mdewakanton Dakota Community;
511.25 	(2) a member of the governor's official staff designated by the governor;
511.26 	the commissioner of education;
511.27 	the commissioner of human services;
511.28 	the commissioner of natural resources;
511.29 	the commissioner of human rights;
512.1 	the commissioner of employment and economic development;
512.2 	the commissioner of corrections;
512.3 	the commissioner of the Minnesota Housing Finance Agency;
512.4 	the commissioner of Iron Range resources and rehabilitation;
512.5 	the commissioner of health;
512.6 	the commissioner of transportation;
512.7 	the commissioner of veterans affairs;
512.8 	the commissioner of administration;
512.9 	the commissioner of children, youth, and families;
512.10 	Each of the commissioners listed in this clause may designate a staff member to serve 
512.11 	on the council instead of the commissioner;
512.12 	(3) two members of the house of representatives, appointed by the speaker; and
512.13 	(4) two members of the senate, appointed by its Subcommittee on Committees.
512.14 	Members appointed to represent the house of representatives or the senate shall no longer 
512.15 	serve on the council when they are no longer members of the bodies which they represent 
512.16 	and their offices shall be vacant. A member who is a designee of a tribal president or 
512.17 	chairperson shall cease to be a member at the end of the term of the designating tribal 
512.18 	president or chairperson. Only members of the council designated under clause (1) shall 
512.19 	vote.

512.20 	Sec. 2. Minnesota Statutes 2024, section 13.41, subdivision 1, is amended to read:
512.21 		Subdivision 1.Definition. As used in this section "licensing agency" means any board, 
512.22 	department or agency of this state which is given the statutory authority to issue professional 
512.23 	or other types of licenses, except the various agencies primarily administered by the 
512.24 	commissioner of human services or the commissioner of children, youth, and families. Data 
512.25 	pertaining to persons or agencies licensed or registered under authority of the commissioner 
512.26 	of human services or the commissioner of children, youth, and families shall be administered 
512.27 	pursuant to section 13.46.

512.28 	Sec. 3. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
512.29 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
512.30 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
513.1 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
513.2 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
513.3 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
513.4 	shall not be disclosed except:
513.5 	(1) pursuant to section 13.05;
513.6 	(2) pursuant to statute or valid court order;
513.7 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
513.8 	preparation of defense;
513.9 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
513.10 	state, or federal government, including a law enforcement officer or attorney in the 
513.11 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
513.12 	commissioner of human services or the commissioner of children, youth, and families 
513.13 	determines that disclosure may compromise a Department of Human Services or Department 
513.14 	of Children, Youth, and Families ongoing investigation; or
513.15 	(5) to provide notices required or permitted by statute.
513.16 	The data referred to in this subdivision shall be classified as public data upon submission 
513.17 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
513.18 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
513.19 	(b) Notwithstanding any other provision in law, the commissioner of human services or 
513.20 	the commissioner of children, youth, and families shall provide all active and inactive 
513.21 	investigative data, including the name of the reporter of alleged maltreatment under section 
513.22 	626.557 or chapter 260E, to the ombudsman for mental health and developmental disabilities 
513.23 	upon the request of the ombudsman.
513.24 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
513.25 	by the commissioner of human services or the commissioner of children, youth, and families
513.26 	of possible overpayments of public funds to a service provider or recipient may be disclosed 
513.27 	if the commissioner determines that it will not compromise the investigation.

513.28 	Sec. 4. Minnesota Statutes 2024, section 13.46, subdivision 4, is amended to read:
513.29 		Subd. 4.Licensing data. (a) As used in this subdivision:
513.30 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
513.31 	welfare system pertaining to persons licensed or registered or who apply for licensure or 
514.1 	registration or who formerly were licensed or registered under the authority of the 
514.2 	commissioner of human services or the commissioner of children, youth, and families;
514.3 	(2) "client" means a person who is receiving services from a licensee or from an applicant 
514.4 	for licensure; and
514.5 	(3) "personal and personal financial data" are Social Security numbers, identity of and 
514.6 	letters of reference, insurance information, reports from the Bureau of Criminal 
514.7 	Apprehension, health examination reports, and social/home studies.
514.8 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license 
514.9 	holders, certification holders, and former licensees are public: name, address, telephone 
514.10 	number of licensees, email addresses except for family child foster care, date of receipt of 
514.11 	a completed application, dates of licensure, licensed capacity, type of client preferred, 
514.12 	variances granted, record of training and education in child care and child development, 
514.13 	type of dwelling, name and relationship of other family members, previous license history, 
514.14 	class of license, the existence and status of complaints, and the number of serious injuries 
514.15 	to or deaths of individuals in the licensed program as reported to the commissioner of human 
514.16 	services; the commissioner of children, youth, and families; the local social services agency; 
514.17 	or any other county welfare agency. For purposes of this clause, a serious injury is one that 
514.18 	is treated by a physician.
514.19 	(ii) Except as provided in item (v), when a correction order, an order to forfeit a fine, 
514.20 	an order of license suspension, an order of temporary immediate suspension, an order of 
514.21 	license revocation, an order of license denial, or an order of conditional license has been 
514.22 	issued, or a complaint is resolved, the following data on current and former licensees and 
514.23 	applicants are public: the general nature of the complaint or allegations leading to the 
514.24 	temporary immediate suspension; the substance and investigative findings of the licensing 
514.25 	or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence 
514.26 	of settlement negotiations; the record of informal resolution of a licensing violation; orders 
514.27 	of hearing; findings of fact; conclusions of law; specifications of the final correction order, 
514.28 	fine, suspension, temporary immediate suspension, revocation, denial, or conditional license 
514.29 	contained in the record of licensing action; whether a fine has been paid; and the status of 
514.30 	any appeal of these actions.
514.31 	(iii) When a license denial under section 142A.15 or 245A.05 or a sanction under section 
514.32 	142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling 
514.33 	individual is responsible for maltreatment under section 626.557 or chapter 260E, the identity 
515.1 	of the applicant, license holder, or controlling individual as the individual responsible for 
515.2 	maltreatment is public data at the time of the issuance of the license denial or sanction.
515.3 	(iv) When a license denial under section 142A.15 or 245A.05 or a sanction under section 
515.4 	142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling 
515.5 	individual is disqualified under chapter 245C, the identity of the license holder, applicant, 
515.6 	or controlling individual as the disqualified individual is public data at the time of the 
515.7 	issuance of the licensing sanction or denial. If the applicant, license holder, or controlling 
515.8 	individual requests reconsideration of the disqualification and the disqualification is affirmed, 
515.9 	the reason for the disqualification and the reason to not set aside the disqualification are 
515.10 	private data.
515.11 	(v) A correction order or fine issued to a child care provider for a licensing violation is 
515.12 	private data on individuals under section 13.02, subdivision 12, or nonpublic data under 
515.13 	section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
515.14 	(2) For applicants who withdraw their application prior to licensure or denial of a license, 
515.15 	the following data are public: the name of the applicant, the city and county in which the 
515.16 	applicant was seeking licensure, the dates of the commissioner's receipt of the initial 
515.17 	application and completed application, the type of license sought, and the date of withdrawal 
515.18 	of the application.
515.19 	(3) For applicants who are denied a license, the following data are public: the name and 
515.20 	address of the applicant, the city and county in which the applicant was seeking licensure, 
515.21 	the dates of the commissioner's receipt of the initial application and completed application, 
515.22 	the type of license sought, the date of denial of the application, the nature of the basis for 
515.23 	the denial, the existence of settlement negotiations, the record of informal resolution of a 
515.24 	denial, orders of hearings, findings of fact, conclusions of law, specifications of the final 
515.25 	order of denial, and the status of any appeal of the denial.
515.26 	(4) When maltreatment is substantiated under section 626.557 or chapter 260E and the 
515.27 	victim and the substantiated perpetrator are affiliated with a program licensed under chapter 
515.28 	142B or 245A; the commissioner of human services; commissioner of children, youth, and 
515.29 	families; local social services agency; or county welfare agency may inform the license 
515.30 	holder where the maltreatment occurred of the identity of the substantiated perpetrator and 
515.31 	the victim.
515.32 	(5) Notwithstanding clause (1), for child foster care, only the name of the license holder 
515.33 	and the status of the license are public if the county attorney has requested that data otherwise 
516.1 	classified as public data under clause (1) be considered private data based on the best interests 
516.2 	of a child in placement in a licensed program.
516.3 	(c) The following are private data on individuals under section 13.02, subdivision 12, 
516.4 	or nonpublic data under section 13.02, subdivision 9: personal and personal financial data 
516.5 	on family day care program and family foster care program applicants and licensees and 
516.6 	their family members who provide services under the license.
516.7 	(d) The following are private data on individuals: the identity of persons who have made 
516.8 	reports concerning licensees or applicants that appear in inactive investigative data, and the 
516.9 	records of clients or employees of the licensee or applicant for licensure whose records are 
516.10 	received by the licensing agency for purposes of review or in anticipation of a contested 
516.11 	matter. The names of reporters of complaints or alleged violations of licensing standards 
516.12 	under chapters 142B, 245A, 245B, 245C, and 245D, and applicable rules and alleged 
516.13 	maltreatment under section 626.557 and chapter 260E, are confidential data and may be 
516.14 	disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557, 
516.15 	subdivision 12b.
516.16 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this 
516.17 	subdivision become public data if submitted to a court or administrative law judge as part 
516.18 	of a disciplinary proceeding in which there is a public hearing concerning a license which 
516.19 	has been suspended, immediately suspended, revoked, or denied.
516.20 	(f) Data generated in the course of licensing investigations that relate to an alleged 
516.21 	violation of law are investigative data under subdivision 3.
516.22 	(g) Data that are not public data collected, maintained, used, or disseminated under this 
516.23 	subdivision that relate to or are derived from a report as defined in section 260E.03, or 
516.24 	626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35, 
516.25 	subdivision 6, and 626.557, subdivision 12b.
516.26 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
516.27 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
516.28 	defined in section 626.557 or chapter 260E may be exchanged with the Department of 
516.29 	Health for purposes of completing background studies pursuant to section 144.057 and with 
516.30 	the Department of Corrections for purposes of completing background studies pursuant to 
516.31 	section 241.021.
516.32 	(i) Data on individuals collected according to licensing activities under chapters 142B, 
516.33 	245A, and 245C, and data on individuals collected by the commissioner of human services
516.34 	or the commissioner of children, youth, and families according to investigations under 
517.1 	section 626.557 and chapters 142B, 245A, 245B, 245C, 245D, and 260E may be shared 
517.2 	with the Department of Human Rights, the Department of Health, the Department of 
517.3 	Corrections, the ombudsman for mental health and developmental disabilities, and the 
517.4 	individual's professional regulatory board and between the commissioners of human services 
517.5 	and children, youth, and families when there is reason to believe that laws or standards 
517.6 	under the jurisdiction of those agencies may have been violated or the information may 
517.7 	otherwise be relevant to the board's regulatory jurisdiction. Background study data on an 
517.8 	individual who is the subject of a background study under chapter 245C for a licensed 
517.9 	service for which the commissioner of human services or children, youth, and families is 
517.10 	the license holder may be shared with the commissioner and the commissioner's delegate 
517.11 	by the licensing division. Unless otherwise specified in this chapter, the identity of a reporter 
517.12 	of alleged maltreatment or licensing violations may not be disclosed.
517.13 	(j) In addition to the notice of determinations required under sections 260E.24, 
517.14 	subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the 
517.15 	commissioner of human services; commissioner of children, youth, and families; or the 
517.16 	local social services agency has determined that an individual is a substantiated perpetrator 
517.17 	of maltreatment of a child based on sexual abuse, as defined in section 260E.03, and the 
517.18 	commissioner of human services; commissioner of children, youth, and families; or local 
517.19 	social services agency knows that the individual is a person responsible for a child's care 
517.20 	in another facility, the commissioner of human services; commissioner of children, youth, 
517.21 	and families; or local social services agency shall notify the head of that facility of this 
517.22 	determination. The notification must include an explanation of the individual's available 
517.23 	appeal rights and the status of any appeal. If a notice is given under this paragraph, the 
517.24 	government entity making the notification shall provide a copy of the notice to the individual 
517.25 	who is the subject of the notice.
517.26 	(k) All not public data collected, maintained, used, or disseminated under this subdivision 
517.27 	and subdivision 3 may be exchanged between the Department of Human Services, Licensing 
517.28 	Division, and the Department of Corrections for purposes of regulating services for which 
517.29 	the Department of Human Services and the Department of Corrections have regulatory 
517.30 	authority.

517.31 	Sec. 5. Minnesota Statutes 2024, section 13.46, subdivision 9, is amended to read:
517.32 		Subd. 9.Fraud. In cases of suspected fraud, in which access to mental health data 
517.33 	maintained by public or private community mental health centers or mental health divisions 
517.34 	of counties and other providers under contract to deliver mental health services is necessary 
518.1 	to a proper investigation, the county board or the appropriate prosecutorial authority shall 
518.2 	refer the matter to the commissioner of human services or the commissioner of children, 
518.3 	youth, and families. The commissioner and agents of the commissioner, while maintaining 
518.4 	the privacy rights of individuals and families, shall have access to mental health data to 
518.5 	conduct an investigation. Upon deeming it appropriate as a result of the investigation, the 
518.6 	commissioner shall refer the matter to the appropriate legal authorities and may disseminate 
518.7 	to those authorities whatever mental health data are necessary to properly prosecute the 
518.8 	case.

518.9 	Sec. 6. Minnesota Statutes 2024, section 13.46, subdivision 10, is amended to read:
518.10 		Subd. 10.Responsible authority. (a) Notwithstanding any other provision of this chapter 
518.11 	to the contrary, the responsible authority for each component of the welfare system listed 
518.12 	in subdivision 1, clause (c), shall be as follows:
518.13 	(1) the responsible authority for the Department of Human Services is the commissioner 
518.14 	of human services;
518.15 	(2) the responsible authority of a county welfare agency is the director of the county 
518.16 	welfare agency;
518.17 	(3) the responsible authority for a local social services agency, human services board, 
518.18 	or community mental health center board is the chair of the board;
518.19 	(4) the responsible authority of any person, agency, institution, organization, or other 
518.20 	entity under contract to any of the components of the welfare system listed in subdivision 
518.21 	1, clause (c), is the person specified in the contract;
518.22 	(5) the responsible authority of the public authority for child support enforcement is the 
518.23 	head of the public authority for child support enforcement;
518.24 	(6) the responsible authority for county veteran services is the county veterans service 
518.25 	officer pursuant to section 197.603, subdivision 2; and
518.26 	(7) the responsible authority for Direct Care and Treatment is the chief executive officer 
518.27 	of Direct Care and Treatment.; and
518.28 	(8) the responsible authority for the Department of Children, Youth, and Families is the 
518.29 	commissioner of children, youth, and families.
518.30 	(b) A responsible authority shall allow another responsible authority in the welfare 
518.31 	system access to data classified as not public data when access is necessary for the 
519.1 	administration and management of programs, or as authorized or required by statute or 
519.2 	federal law.

519.3 	Sec. 7. Minnesota Statutes 2024, section 13.598, subdivision 10, is amended to read:
519.4 		Subd. 10.Employment and training programs; data sharing. Data sharing of 
519.5 	employment and training program data between the commissioner of employment and 
519.6 	economic development,; the commissioner of human services,; the commissioner of children, 
519.7 	youth, and families; state agency personnel,; and other users of the inventory, referral and 
519.8 	intake system, is governed by section 116L.86, subdivision 3.

519.9 	Sec. 8. Minnesota Statutes 2024, section 14.03, subdivision 3, is amended to read:
519.10 		Subd. 3.Rulemaking procedures. (a) The definition of a rule in section 14.02, 
519.11 	subdivision 4, does not include:
519.12 	(1) rules concerning only the internal management of the agency or other agencies that 
519.13 	do not directly affect the rights of or procedures available to the public;
519.14 	(2) an application deadline on a form; and the remainder of a form and instructions for 
519.15 	use of the form to the extent that they do not impose substantive requirements other than 
519.16 	requirements contained in statute or rule;
519.17 	(3) the curriculum adopted by an agency to implement a statute or rule permitting or 
519.18 	mandating minimum educational requirements for persons regulated by an agency, provided 
519.19 	the topic areas to be covered by the minimum educational requirements are specified in 
519.20 	statute or rule;
519.21 	(4) procedures for sharing data among government agencies, provided these procedures 
519.22 	are consistent with chapter 13 and other law governing data practices.
519.23 	(b) The definition of a rule in section 14.02, subdivision 4, does not include:
519.24 	(1) rules of the commissioner of corrections relating to the release, placement, term, and 
519.25 	supervision of inmates serving a supervised release or conditional release term, the internal 
519.26 	management of institutions under the commissioner's control, and rules adopted under 
519.27 	section 609.105 governing the inmates of those institutions;
519.28 	(2) rules relating to weight limitations on the use of highways when the substance of the 
519.29 	rules is indicated to the public by means of signs;
519.30 	(3) opinions of the attorney general;
520.1 	(4) the data element dictionary and the annual data acquisition calendar of the Department 
520.2 	of Education to the extent provided by section 125B.07;
520.3 	(5) the occupational safety and health standards provided in section 182.655;
520.4 	(6) revenue notices and tax information bulletins of the commissioner of revenue;
520.5 	(7) uniform conveyancing forms adopted by the commissioner of commerce under 
520.6 	section 507.09;
520.7 	(8) standards adopted by the Electronic Real Estate Recording Commission established 
520.8 	under section 507.0945; or
520.9 	(9) the interpretive guidelines developed by the commissioner of human services to the 
520.10 	extent provided in chapter 245A.; or
520.11 	(10) the interpretive guidelines developed by the commissioner of children, youth, and 
520.12 	families to the extent provided in chapter 142B.

520.13 	Sec. 9. Minnesota Statutes 2024, section 116L.881, is amended to read:
520.14 	116L.881 INDIAN TRIBE PLANS.
520.15 	(a) The commissioner, in consultation with the commissioner commissioners of human 
520.16 	services and children, youth, and families, shall review and comment on Indian tribe plans 
520.17 	submitted to the commissioner for provision of employment and training services. Beginning 
520.18 	April 15, 1991, and by April 15 of each second year thereafter, the Indian tribe shall prepare 
520.19 	and submit to the commissioner a plan that covers the next two state fiscal years. Beginning 
520.20 	April 15, 1992, and by April 15 of each second year thereafter, the Indian tribe shall prepare 
520.21 	and submit to the commissioner an interim year plan update that deals with performance 
520.22 	during the past state fiscal year and that covers changes anticipated for the second year of 
520.23 	the biennium. The commissioner shall notify the Indian tribe of approval or disapproval of 
520.24 	the plans and updates for existing programs within 60 days of submission.
520.25 	(b) A plan for a new tribal program must be submitted at least 45 days before the program 
520.26 	is to commence. The commissioner shall approve or disapprove the plan for new programs 
520.27 	within 30 days of receipt.
520.28 	(c) The tribal plan and update must contain information that has been established by the 
520.29 	commissioner and the commissioner commissioners of human services and children, youth, 
520.30 	and families for the tribal employment and training service program.
520.31 	(d) The commissioner may recommend to the commissioner commissioners of human 
520.32 	services and children, youth, and families withholding the distribution of employment and 
521.1 	training money from a tribe whose plan or update is disapproved by the commissioner or a 
521.2 	tribe that does not submit a plan or update by the date established in this section.

521.3 	Sec. 10. Minnesota Statutes 2024, section 125A.15, is amended to read:
521.4 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
521.5 	The responsibility for special instruction and services for a child with a disability 
521.6 	temporarily placed in another district for care and treatment shall be determined in the 
521.7 	following manner:
521.8 	(a) The district of residence of a child shall be the district in which the child's parent 
521.9 	resides, if living, or the child's guardian. If there is a dispute between school districts 
521.10 	regarding residency, the district of residence is the district designated by the commissioner.
521.11 	(b) If a district other than the resident district places a pupil for care and treatment, the 
521.12 	district placing the pupil must notify and give the resident district an opportunity to participate 
521.13 	in the placement decision. When an immediate emergency placement of a pupil is necessary 
521.14 	and time constraints foreclose a resident district from participating in the emergency 
521.15 	placement decision, the district in which the pupil is temporarily placed must notify the 
521.16 	resident district of the emergency placement within 15 days. The resident district has up to 
521.17 	five business days after receiving notice of the emergency placement to request an 
521.18 	opportunity to participate in the placement decision, which the placing district must then 
521.19 	provide.
521.20 	(c) When a child is temporarily placed for care and treatment in a day program located 
521.21 	in another district and the child continues to live within the district of residence during the 
521.22 	care and treatment, the district of residence is responsible for providing transportation to 
521.23 	and from the care and treatment program and an appropriate educational program for the 
521.24 	child. The resident district may establish reasonable restrictions on transportation, except 
521.25 	if a Minnesota court or agency orders the child placed at a day care and treatment program 
521.26 	and the resident district receives a copy of the order, then the resident district must provide 
521.27 	transportation to and from the program unless the court or agency orders otherwise. 
521.28 	Transportation shall only be provided by the resident district during regular operating hours 
521.29 	of the resident district. The resident district may provide the educational program at a school 
521.30 	within the district of residence, at the child's residence, or in the district in which the day 
521.31 	treatment center is located by paying tuition to that district. If a child's district of residence, 
521.32 	district of open enrollment under section 124D.03, or charter school of enrollment under 
521.33 	section 124E.11 is authorized to provide online learning instruction under state statutes, the 
521.34 	child's district of residence may utilize that online learning program in fulfilling its 
522.1 	educational program responsibility under this section if the child, or the child's parent or 
522.2 	guardian for a pupil under the age of 18, agrees to that form of instruction.
522.3 	(d) When a child is temporarily placed in a residential program for care and treatment, 
522.4 	the nonresident district in which the child is placed is responsible for providing an appropriate 
522.5 	educational program for the child and necessary transportation while the child is attending 
522.6 	the educational program; and must bill the district of the child's residence for the actual cost 
522.7 	of providing the program, as outlined in section 125A.11, except as provided in paragraph 
522.8 	(e). However, the board, lodging, and treatment costs incurred in behalf of a child with a 
522.9 	disability placed outside of the school district of residence by the commissioner of human 
522.10 	services; the commissioner of children, youth, and families; or the commissioner of 
522.11 	corrections or their agents, for reasons other than providing for the child's special educational 
522.12 	needs must not become the responsibility of either the district providing the instruction or 
522.13 	the district of the child's residence. For the purposes of this section, the state correctional 
522.14 	facilities operated on a fee-for-service basis are considered to be residential programs for 
522.15 	care and treatment. If a child's district of residence, district of open enrollment under section 
522.16 	124D.03, or charter school of enrollment under section 124E.11 is authorized to provide 
522.17 	online learning instruction under state statutes, the nonresident district may utilize that 
522.18 	online learning program in fulfilling its educational program responsibility under this section 
522.19 	if the child, or the child's parent or guardian for a pupil under the age of 18, agrees to that 
522.20 	form of instruction.
522.21 	(e) A privately owned and operated residential facility may enter into a contract to obtain 
522.22 	appropriate educational programs for special education children and services with a joint 
522.23 	powers entity. The entity with which the private facility contracts for special education 
522.24 	services shall be the district responsible for providing students placed in that facility an 
522.25 	appropriate educational program in place of the district in which the facility is located. If a 
522.26 	privately owned and operated residential facility does not enter into a contract under this 
522.27 	paragraph, then paragraph (d) applies.
522.28 	(f) The district of residence shall pay tuition and other program costs, not including 
522.29 	transportation costs, to the district providing the instruction and services. The district of 
522.30 	residence may claim general education aid for the child as provided by law. Transportation 
522.31 	costs must be paid by the district responsible for providing the transportation and the state 
522.32 	must pay transportation aid to that district.

523.1 	Sec. 11. Minnesota Statutes 2024, section 125A.744, subdivision 2, is amended to read:
523.2 		Subd. 2.Statewide data management system. The commissioner of education, in 
523.3 	cooperation with the commissioner commissioners of human services and children, youth, 
523.4 	and families, shall develop a statewide data management system using the educational data 
523.5 	reporting system or other existing data management system for school districts and 
523.6 	cooperative units to use to maximize medical assistance reimbursement for health and 
523.7 	health-related services provided under individualized education programs and individual 
523.8 	family service plans. The system must be appropriately integrated with state and local 
523.9 	existing and developing human services and education data systems. The statewide data 
523.10 	management system must enable school district and cooperative unit staff to:
523.11 	(1) establish medical assistance billing systems or improve existing systems;
523.12 	(2) understand the appropriate medical assistance billing codes for services provided 
523.13 	under individualized education programs and individual family service plans;
523.14 	(3) comply with the Individuals with Disabilities Education Act, Public Law 105-17;
523.15 	(4) contract with billing agents; and
523.16 	(5) carry out other activities necessary to maximize medical assistance reimbursement.

523.17 	Sec. 12. Minnesota Statutes 2024, section 127A.11, is amended to read:
523.18 	127A.11 MONITOR MEDICAL ASSISTANCE SERVICES FOR DISABLED 
523.19 	STUDENTS.
523.20 	The commissioner of education, in cooperation with the commissioner commissioners
523.21 	of human services and children, youth, and families, shall monitor the costs of health-related, 
523.22 	special education services provided by public schools.

523.23 	Sec. 13. Minnesota Statutes 2024, section 127A.70, subdivision 2, is amended to read:
523.24 		Subd. 2.Powers and duties; report. (a) The partnership shall develop recommendations 
523.25 	to the governor and the legislature designed to maximize the achievement of all P-20 students 
523.26 	while promoting the efficient use of state resources, thereby helping the state realize the 
523.27 	maximum value for its investment. These recommendations may include, but are not limited 
523.28 	to, strategies, policies, or other actions focused on:
523.29 	(1) improving the quality of and access to education at all points from preschool through 
523.30 	graduate education;
523.31 	(2) improving preparation for, and transitions to, postsecondary education and work;
524.1 	(3) ensuring educator quality by creating rigorous standards for teacher recruitment, 
524.2 	teacher preparation, induction and mentoring of beginning teachers, and continuous 
524.3 	professional development for career teachers; and
524.4 	(4) realigning the governance and administrative structures of early education, 
524.5 	kindergarten through grade 12, and postsecondary systems in Minnesota.
524.6 	(b) Under the direction of the P-20 Education Partnership Statewide Longitudinal 
524.7 	Education Data System Governance Committee, the Office of Higher Education and the 
524.8 	Departments of Education; Children, Youth, and Families; and Employment and Economic 
524.9 	Development shall improve and expand the Statewide Longitudinal Education Data System 
524.10 	(SLEDS) and the Early Childhood Longitudinal Data System (ECLDS) to provide 
524.11 	policymakers, education and workforce leaders, researchers, and members of the public 
524.12 	with data, research, and reports to:
524.13 	(1) expand reporting on students' educational outcomes for diverse student populations 
524.14 	including at-risk students, children with disabilities, English learners, and gifted students, 
524.15 	among others, and include formative and summative evaluations based on multiple measures 
524.16 	of child well-being, early childhood development, and student progress toward career and 
524.17 	college readiness;
524.18 	(2) evaluate the effectiveness of early care, educational, and workforce programs; and
524.19 	(3) evaluate the relationships among early care, education, and workforce outcomes, 
524.20 	consistent with section 124D.49.
524.21 	To the extent possible under federal and state law, research and reports should be 
524.22 	accessible to the public on the Internet, and disaggregated by demographic characteristics, 
524.23 	organization or organization characteristics, and geography.
524.24 	It is the intent of the legislature that the Statewide Longitudinal Education Data System 
524.25 	and the Early Childhood Longitudinal Data System inform public policy and 
524.26 	decision-making. The SLEDS governance committee and ECLDS governance committee, 
524.27 	with assistance from staff of the Office of Higher Education,; the Department of Education,; 
524.28 	the Department of Children, Youth, and Families; and the Department of Employment and 
524.29 	Economic Development, shall respond to legislative committee and agency requests on 
524.30 	topics utilizing data made available through the Statewide Longitudinal Education Data 
524.31 	System and the Early Childhood Longitudinal Data System as resources permit. Any analysis 
524.32 	of or report on the data must contain only summary data.
525.1 	(c) By January 15 of each year, the partnership shall submit a report to the governor and 
525.2 	to the chairs and ranking minority members of the legislative committees and divisions with 
525.3 	jurisdiction over P-20 education policy and finance that summarizes the partnership's progress 
525.4 	in meeting its goals and identifies the need for any draft legislation when necessary to further 
525.5 	the goals of the partnership to maximize student achievement while promoting efficient use 
525.6 	of resources.

525.7 	Sec. 14. Minnesota Statutes 2024, section 142A.607, subdivision 14, is amended to read:
525.8 		Subd. 14.Notice for caregiver. (a) The agency as defined in subdivision 7 or 12 that 
525.9 	is responsible for completing the initial assessment or reassessment must provide the child's 
525.10 	caregiver with written notice of the initial assessment or reassessment.
525.11 	(b) Initial assessment notices must be sent within 15 days of completion of the initial 
525.12 	assessment and must minimally include the following:
525.13 	(1) a summary of the child's completed individual assessment used to determine the 
525.14 	initial rating;
525.15 	(2) statement of rating and benefit level;
525.16 	(3) statement of the circumstances under which the agency must reassess the child;
525.17 	(4) procedure to seek reassessment;
525.18 	(5) notice that the caregiver has the right to a fair hearing review of the assessment and 
525.19 	how to request a fair hearing, consistent with section sections 142A.20 and256.045, 
525.20 	subdivision 3; and
525.21 	(6) the name, telephone number, and email, if available, of a contact person at the agency 
525.22 	completing the assessment.
525.23 	(c) Reassessment notices must be sent within 15 days after the completion of the 
525.24 	reassessment and must minimally include the following:
525.25 	(1) a summary of the child's individual assessment used to determine the new rating;
525.26 	(2) any change in rating and its effective date;
525.27 	(3) procedure to seek reassessment;
525.28 	(4) notice that if a change in rating results in a reduction of benefits, the caregiver has 
525.29 	the right to a fair hearing review of the assessment and how to request a fair hearing 
525.30 	consistent with section sections 142A.20 and256.045, subdivision 3;
526.1 	(5) notice that a caregiver who requests a fair hearing of the reassessed rating within ten 
526.2 	days may continue at the current rate pending the hearing, but the agency may recover any 
526.3 	overpayment; and
526.4 	(6) name, telephone number, and email, if available, of a contact person at the agency 
526.5 	completing the reassessment.
526.6 	(d) Notice is not required for special assessments since the notice is part of the Northstar 
526.7 	kinship assistance or adoption assistance negotiated agreement completed according to 
526.8 	section 142A.608.

526.9 	Sec. 15. Minnesota Statutes 2024, section 142A.609, subdivision 21, is amended to read:
526.10 		Subd. 21.Termination notice for caregiver or youth. The agency that issues the 
526.11 	maintenance payment shall provide the child's caregiver or the youth with written notice of 
526.12 	termination of payment. Termination notices must be sent at least 15 days before the final 
526.13 	payment or, in the case of an unplanned termination, the notice is sent within three days of 
526.14 	the end of the payment. The written notice must minimally include the following:
526.15 	(1) the date payment will end;
526.16 	(2) the reason payments will end and the event that is the basis to terminate payment;
526.17 	(3) a statement that the caregiver or youth has a right to a fair hearing review by the 
526.18 	department consistent with section sections 142A.20 and256.045, subdivision 3;
526.19 	(4) the procedure to request a fair hearing; and
526.20 	(5) the name, telephone number, and email address of a contact person at the agency.

526.21 	Sec. 16. Minnesota Statutes 2024, section 142B.41, subdivision 9, is amended to read:
526.22 		Subd. 9.Swimming pools; family day care and group family day care providers. (a) 
526.23 	This subdivision governs swimming pools located at family day care or group family day 
526.24 	care homes licensed under Minnesota Rules, chapter 9502. This subdivision does not apply 
526.25 	to portable wading pools or whirlpools located at family day care or group family day care 
526.26 	homes licensed under Minnesota Rules, chapter 9502. For a provider to be eligible to allow 
526.27 	a child cared for at the family day care or group family day care home to use the swimming 
526.28 	pool located at the home, the provider must not have had a licensing sanction under section 
526.29 	142B.18 or 245A.07 or a correction order or conditional license under section 142B.16 or 
526.30 	245A.06 relating to the supervision or health and safety of children during the prior 24 
526.31 	months, and must satisfy the following requirements:
527.1 	(1) notify the county agency before initial use of the swimming pool and annually, 
527.2 	thereafter;
527.3 	(2) obtain written consent from a child's parent or legal guardian allowing the child to 
527.4 	use the swimming pool and renew the parent or legal guardian's written consent at least 
527.5 	annually. The written consent must include a statement that the parent or legal guardian has 
527.6 	received and read materials provided by the Department of Health to the Department of 
527.7 	Children, Youth, and Families for distribution to all family day care or group family day 
527.8 	care homes and the general public on the human services Internet website related to the risk 
527.9 	of disease transmission as well as other health risks associated with swimming pools. The 
527.10 	written consent must also include a statement that the Department of Health, Department 
527.11 	of Children, Youth, and Families, and county agency will not monitor or inspect the provider's 
527.12 	swimming pool to ensure compliance with the requirements in this subdivision;
527.13 	(3) enter into a written contract with a child's parent or legal guardian and renew the 
527.14 	written contract annually. The terms of the written contract must specify that the provider 
527.15 	agrees to perform all of the requirements in this subdivision;
527.16 	(4) attend and successfully complete a swimming pool operator training course once 
527.17 	every five years. Acceptable training courses are:
527.18 	(i) the National Swimming Pool Foundation Certified Pool Operator course;
527.19 	(ii) the National Spa and Pool Institute Tech I and Tech II courses (both required); or
527.20 	(iii) the National Recreation and Park Association Aquatic Facility Operator course;
527.21 	(5) require a caregiver trained in first aid and adult and child cardiopulmonary 
527.22 	resuscitation to supervise and be present at the swimming pool with any children in the 
527.23 	pool;
527.24 	(6) toilet all potty-trained children before they enter the swimming pool;
527.25 	(7) require all children who are not potty-trained to wear swim diapers while in the 
527.26 	swimming pool;
527.27 	(8) if fecal material enters the swimming pool water, add three times the normal shock 
527.28 	treatment to the pool water to raise the chlorine level to at least 20 parts per million, and 
527.29 	close the pool to swimming for the 24 hours following the entrance of fecal material into 
527.30 	the water or until the water pH and disinfectant concentration levels have returned to the 
527.31 	standards specified in clause (10), whichever is later;
528.1 	(9) prevent any person from entering the swimming pool who has an open wound or 
528.2 	any person who has or is suspected of having a communicable disease;
528.3 	(10) maintain the swimming pool water at a pH of not less than 7.2 and not more than 
528.4 	8.0, maintain the disinfectant concentration between two and five parts per million for 
528.5 	chlorine or between 2.3 and 4.5 parts per million for bromine, and maintain a daily record 
528.6 	of the swimming pool's operation with pH and disinfectant concentration readings on days 
528.7 	when children cared for at the family day care or group family day care home are present;
528.8 	(11) have a disinfectant feeder or feeders;
528.9 	(12) have a recirculation system that will clarify and disinfect the swimming pool volume 
528.10 	of water in ten hours or less;
528.11 	(13) maintain the swimming pool's water clarity so that an object on the pool floor at 
528.12 	the pool's deepest point is easily visible;
528.13 	(14) comply with the provisions of the Abigail Taylor Pool Safety Act in section 
528.14 	144.1222, subdivisions 1c and 1d;
528.15 	(15) have in place and enforce written safety rules and swimming pool policies;
528.16 	(16) have in place at all times a safety rope that divides the shallow and deep portions 
528.17 	of the swimming pool;
528.18 	(17) satisfy any existing local ordinances regarding swimming pool installation, decks, 
528.19 	and fencing;
528.20 	(18) maintain a water temperature of not more than 104 degrees Fahrenheit and not less 
528.21 	than 70 degrees Fahrenheit; and
528.22 	(19) for lifesaving equipment, have a United States Coast Guard-approved life ring 
528.23 	attached to a rope, an exit ladder, and a shepherd's hook available at all times to the caregiver 
528.24 	supervising the swimming pool.
528.25 	The requirements of clauses (5), (16), and (18) only apply at times when children cared 
528.26 	for at the family day care or group family day care home are present.
528.27 	(b) A violation of paragraph (a), clauses (1) to (3), is grounds for a sanction under section 
528.28 	142B.18 or a correction order or conditional license under section 142B.16.
528.29 	(c) If a provider under this subdivision receives a licensing sanction under section 
528.30 	142B.18 or 245A.07 or a correction order or a conditional license under section 142B.16
528.31 	or 245A.06 relating to the supervision or health and safety of children, the provider is 
529.1 	prohibited from allowing a child cared for at the family day care or group family day care 
529.2 	home to continue to use the swimming pool located at the home.

529.3 	Sec. 17. Minnesota Statutes 2024, section 144.061, is amended to read:
529.4 	144.061 EARLY DENTAL PREVENTION INITIATIVE.
529.5 	(a) The commissioner of health, in collaboration with the commissioner commissioners
529.6 	of human services and children, youth, and families, shall implement a statewide initiative 
529.7 	to increase awareness among communities of color and recent immigrants on the importance 
529.8 	of early preventive dental intervention for infants and toddlers before and after primary 
529.9 	teeth appear.
529.10 	(b) The commissioner shall develop educational materials and information for expectant 
529.11 	and new parents within the targeted communities that include the importance of early dental 
529.12 	care to prevent early cavities, including proper cleaning techniques and feeding habits, 
529.13 	before and after primary teeth appear.
529.14 	(c) The commissioner shall develop a distribution plan to ensure that the materials are 
529.15 	distributed to expectant and new parents within the targeted communities, including, but 
529.16 	not limited to, making the materials available to health care providers, community clinics, 
529.17 	WIC sites, and other relevant sites within the targeted communities.
529.18 	(d) In developing these materials and distribution plan, the commissioner shall work 
529.19 	collaboratively with members of the targeted communities, dental providers, pediatricians, 
529.20 	child care providers, and home visiting nurses.
529.21 	(e) The commissioner shall, with input from stakeholders listed in paragraph (d), develop 
529.22 	and pilot incentives to encourage early dental care within one year of an infant's teeth 
529.23 	erupting.

529.24 	Sec. 18. Minnesota Statutes 2024, section 144.225, subdivision 2a, is amended to read:
529.25 		Subd. 2a.Health data associated with birth registration. (a) Information from which 
529.26 	an identification of risk for disease, disability, or developmental delay in a mother or child 
529.27 	can be made, that is collected in conjunction with birth registration or fetal death reporting, 
529.28 	is private data as defined in section 13.02, subdivision 12.
529.29 	(b) The commissioner may disclose to a tribal health department or community health 
529.30 	board, as defined in section 145A.02, subdivision 5, health data associated with birth 
529.31 	registration which identifies a mother or child at high risk for serious disease, disability, or 
530.1 	developmental delay in order to assure access to appropriate health, social, or educational 
530.2 	services.
530.3 	(c) Notwithstanding the designation of the private data, the commissioner of human 
530.4 	services shall have access to health data associated with birth registration for:
530.5 	(1) purposes of administering medical assistance and the MinnesotaCare program; and
530.6 	(2) for other public health purposes as determined by the commissioner of health.
530.7 	(d) Notwithstanding the designation of the private data, the commissioner of children, 
530.8 	youth, and families shall have access to health data associated with birth registration for 
530.9 	other public health purposes as determined by the commissioner of health.

530.10 	Sec. 19. Minnesota Statutes 2024, section 145.895, is amended to read:
530.11 	145.895 DEPARTMENT OF HUMAN SERVICES.
530.12 	The commissioner of human services shall cooperate with the commissioner
530.13 	commissioners of health and children, youth, and families in identifying eligible individuals. 
530.14 	The commissioner of human services shall provide a procedure for the notification of 
530.15 	pregnant or lactating women, infants and children receiving any form of public assistance 
530.16 	of eligibility for benefits under this program.

530.17 	Sec. 20. Minnesota Statutes 2024, section 145.901, subdivision 2, is amended to read:
530.18 		Subd. 2.Access to data. (a) The commissioner of health has access to medical data as 
530.19 	defined in section 13.384, subdivision 1, paragraph (b), medical examiner data as defined 
530.20 	in section 13.83, subdivision 1, and health records created, maintained, or stored by providers 
530.21 	as defined in section 144.291, subdivision 2, paragraph (c), without the consent of the subject 
530.22 	of the data, and without the consent of the parent, spouse, other guardian, or legal 
530.23 	representative of the subject of the data, when the subject of the data is a woman who died 
530.24 	during a pregnancy or within 12 months of a fetal death, a live birth, or other termination 
530.25 	of a pregnancy.
530.26 	The commissioner has access only to medical data and health records related to deaths 
530.27 	that occur on or after July 1, 2000, including the names of the providers, clinics, or other 
530.28 	health services such as family home visiting programs; the women, infants, and children 
530.29 	(WIC) program; prescription monitoring programs; and behavioral health services, where 
530.30 	care was received before, during, or related to the pregnancy or death. The commissioner 
530.31 	has access to records maintained by a medical examiner, a coroner, or hospitals or to hospital 
530.32 	discharge data, for the purpose of providing the name and location of any pre-pregnancy, 
531.1 	prenatal, or other care received by the subject of the data up to one year after the end of the 
531.2 	pregnancy.
531.3 	(b) The provider or responsible authority that creates, maintains, or stores the data shall 
531.4 	furnish the data upon the request of the commissioner. The provider or responsible authority 
531.5 	may charge a fee for providing the data, not to exceed the actual cost of retrieving and 
531.6 	duplicating the data.
531.7 	(c) The commissioner shall make a good faith reasonable effort to notify the parent, 
531.8 	spouse, other guardian, or legal representative of the subject of the data before collecting 
531.9 	data on the subject. For purposes of this paragraph, "reasonable effort" means one notice 
531.10 	is sent by certified mail to the last known address of the parent, spouse, guardian, or legal 
531.11 	representative informing the recipient of the data collection and offering a public health 
531.12 	nurse support visit if desired.
531.13 	(d) The commissioner does not have access to coroner or medical examiner data that 
531.14 	are part of an active investigation as described in section 13.83.
531.15 	(e) The commissioner may request and receive from a coroner or medical examiner the 
531.16 	name of the health care provider that provided prenatal, postpartum, or other health services 
531.17 	to the subject of the data.
531.18 	(f) The commissioner may access Department of Human Services and Department of 
531.19 	Children, Youth, and Families data to identify sources of care and services to assist with 
531.20 	the evaluation of welfare systems, including housing, to reduce preventable maternal deaths.
531.21 	(g) The commissioner may request and receive law enforcement reports or incident 
531.22 	reports related to the subject of the data.

531.23 	Sec. 21. Minnesota Statutes 2024, section 145.901, subdivision 4, is amended to read:
531.24 		Subd. 4.Classification of data. (a) Data provided to the commissioner from source 
531.25 	records under subdivision 2, including identifying information on individual providers, data 
531.26 	subjects, or their children, and data derived by the commissioner under subdivision 3 for 
531.27 	the purpose of carrying out maternal death studies, are classified as confidential data on 
531.28 	individuals or confidential data on decedents, as defined in sections 13.02, subdivision 3, 
531.29 	and 13.10, subdivision 1, paragraph (a).
531.30 	(b) Information classified under paragraph (a) shall not be subject to discovery or 
531.31 	introduction into evidence in any administrative, civil, or criminal proceeding. Such 
531.32 	information otherwise available from an original source shall not be immune from discovery 
532.1 	or barred from introduction into evidence merely because it was utilized by the commissioner 
532.2 	in carrying out maternal death studies.
532.3 	(c) Summary data on maternal death studies created by the commissioner, which does 
532.4 	not identify individual data subjects or individual providers, shall be public in accordance 
532.5 	with section 13.05, subdivision 7.
532.6 	(d) Data provided by the commissioner of human services or the commissioner of 
532.7 	children, youth, and families to the commissioner of health under this section retain the 
532.8 	same classification the data held when retained by the commissioner of human services or 
532.9 	the commissioner of children, youth, and families, as required under section 13.03, 
532.10 	subdivision 4, paragraph (c).

532.11 	Sec. 22. Minnesota Statutes 2024, section 145.9255, subdivision 1, is amended to read:
532.12 		Subdivision 1.Establishment. To the extent funds are available for the purposes of this 
532.13 	subdivision, the commissioner of health, in consultation with a representative from Minnesota 
532.14 	planning,; the commissioner of human services,; the commissioner of children, youth, and 
532.15 	families; and the commissioner of education, shall develop and implement the Minnesota 
532.16 	education now and babies later (MN ENABL) program, targeted to adolescents ages 12 to 
532.17 	14, with the goal of reducing the incidence of adolescent pregnancy in the state and promoting 
532.18 	abstinence until marriage. The program must provide a multifaceted, primary prevention, 
532.19 	community health promotion approach to educating and supporting adolescents in the 
532.20 	decision to postpone sexual involvement modeled after the ENABL program in California. 
532.21 	The commissioner of health shall consult with the chief of the health education section of 
532.22 	the California Department of Health Services for general guidance in developing and 
532.23 	implementing the program.

532.24 	Sec. 23. Minnesota Statutes 2024, section 145.9265, is amended to read:
532.25 	145.9265 FETAL ALCOHOL SYNDROME EFFECTS; DRUG-EXPOSED 
532.26 	INFANT.
532.27 	The commissioner of health, in coordination with the commissioner of education; the 
532.28 	commissioner of children, youth, and families; and the commissioner of human services, 
532.29 	shall design and implement a coordinated prevention effort to reduce the rates of fetal alcohol 
532.30 	syndrome and fetal alcohol effects, and reduce the number of drug-exposed infants. The 
532.31 	commissioner shall:
533.1 	(1) conduct research to determine the most effective methods of preventing fetal alcohol 
533.2 	syndrome, fetal alcohol effects, and drug-exposed infants and to determine the best methods 
533.3 	for collecting information on the incidence and prevalence of these problems in Minnesota;
533.4 	(2) provide training on effective prevention methods to health care professionals and 
533.5 	human services workers; and
533.6 	(3) operate a statewide media campaign focused on reducing the incidence of fetal 
533.7 	alcohol syndrome and fetal alcohol effects, and reducing the number of drug-exposed infants.

533.8 	Sec. 24. Minnesota Statutes 2024, section 174.285, subdivision 4, is amended to read:
533.9 		Subd. 4.Membership. (a) The council is composed of the following 13 14 members:
533.10 	(1) one representative from the Office of the Governor;
533.11 	(2) one representative from the Council on Disability;
533.12 	(3) one representative from the Minnesota Public Transit Association;
533.13 	(4) the commissioner of transportation or a designee;
533.14 	(5) the commissioner of human services or a designee;
533.15 	(6) the commissioner of health or a designee;
533.16 	(7) the chair of the Metropolitan Council or a designee;
533.17 	(8) the commissioner of education or a designee;
533.18 	(9) the commissioner of veterans affairs or a designee;
533.19 	(10) one representative from the Board on Aging;
533.20 	(11) the commissioner of employment and economic development or a designee;
533.21 	(12) the commissioner of commerce or a designee; and
533.22 	(13) the commissioner of management and budget or a designee.; and
533.23 	(14) the commissioner of children, youth, and families or a designee.
533.24 	(b) All appointments required by paragraph (a) must be completed by August 1, 2010.
533.25 	(c) The commissioner of transportation or a designee shall convene the first meeting of 
533.26 	the council within two weeks after the members have been appointed to the council. The 
533.27 	members shall elect a chair from their membership at the first meeting.
533.28 	(d) The Department of Transportation and the Department of Human Services shall 
533.29 	provide necessary staff support for the council.

534.1 	Sec. 25. Minnesota Statutes 2024, section 214.104, is amended to read:
534.2 	214.104 HEALTH-RELATED LICENSING BOARDS; SUBSTANTIATED 
534.3 	MALTREATMENT.
534.4 	(a) A health-related licensing board shall make determinations as to whether regulated 
534.5 	persons who are under the board's jurisdiction should be the subject of disciplinary or 
534.6 	corrective action because of substantiated maltreatment under section 626.557 or chapter 
534.7 	260E. The board shall make a determination upon receipt, and after the review, of an 
534.8 	investigation memorandum or other notice of substantiated maltreatment under section 
534.9 	626.557, or chapter 260E, or of a notice from the commissioner of human services or the 
534.10 	commissioner of children, youth, and families that a background study of a regulated person 
534.11 	shows substantiated maltreatment.
534.12 	(b) Upon completion of its review of a report of substantiated maltreatment, the board 
534.13 	shall notify the commissioner commissioners of human services and children, youth, and 
534.14 	families of its determination. The board shall notify the commissioner of human services 
534.15 	if, following a review of the report of substantiated maltreatment, the board determines that 
534.16 	it does not have jurisdiction in the matter and the commissioner shall make the appropriate 
534.17 	disqualification decision regarding the regulated person as otherwise provided in chapter 
534.18 	245C. The board shall also notify the commissioner of health or; the commissioner of human 
534.19 	services; or the commissioner of children, youth, and families immediately upon receipt of 
534.20 	knowledge of a facility or program allowing a regulated person to provide direct contact 
534.21 	services at the facility or program while not complying with requirements placed on the 
534.22 	regulated person.
534.23 	(c) In addition to any other remedy provided by law, the board may, through its designated 
534.24 	board member, temporarily suspend the license of a licensee; deny a credential to an 
534.25 	applicant; or require the regulated person to be continuously supervised, if the board finds 
534.26 	there is probable cause to believe the regulated person referred to the board according to 
534.27 	paragraph (a) poses an immediate risk of harm to vulnerable persons. The board shall 
534.28 	consider all relevant information available, which may include but is not limited to:
534.29 	(1) the extent the action is needed to protect persons receiving services or the public;
534.30 	(2) the recency of the maltreatment;
534.31 	(3) the number of incidents of maltreatment;
534.32 	(4) the intrusiveness or violence of the maltreatment; and
534.33 	(5) the vulnerability of the victim of maltreatment.
535.1 	The action shall take effect upon written notice to the regulated person, served by certified 
535.2 	mail, specifying the statute violated. The board shall notify the commissioner of health or;
535.3 	the commissioner of human services; or the commissioner of children, youth, and families
535.4 	of the suspension or denial of a credential. The action shall remain in effect until the board 
535.5 	issues a temporary stay or a final order in the matter after a hearing or upon agreement 
535.6 	between the board and the regulated person. At the time the board issues the notice, the 
535.7 	regulated person shall inform the board of all settings in which the regulated person is 
535.8 	employed or practices. The board shall inform all known employment and practice settings 
535.9 	of the board action and schedule a disciplinary hearing to be held under chapter 14. The 
535.10 	board shall provide the regulated person with at least 30 days' notice of the hearing, unless 
535.11 	the parties agree to a hearing date that provides less than 30 days' notice, and shall schedule 
535.12 	the hearing to begin no later than 90 days after issuance of the notice of hearing.

535.13 	Sec. 26. Minnesota Statutes 2024, section 216C.266, subdivision 2, is amended to read:
535.14 		Subd. 2.Sharing energy assistance program data. The commissioner may disseminate 
535.15 	to the commissioner commissioners of human services and children, youth, and families
535.16 	the name, telephone number, and last four digits of the Social Security number of any 
535.17 	individual who applies on behalf of a household for benefits or services provided by the 
535.18 	energy assistance program if the household is determined to be eligible for the energy 
535.19 	assistance program.

535.20 	Sec. 27. Minnesota Statutes 2024, section 216C.266, subdivision 3, is amended to read:
535.21 		Subd. 3.Use of shared data. Data disseminated to the commissioner commissioners of 
535.22 	human services and children, youth, and families under subdivision 2 may be disclosed to 
535.23 	a person other than the subject of the data only for the purpose of determining a household's 
535.24 	eligibility for the telephone assistance program pursuant to section 13.46, subdivision 2, 
535.25 	clause (23).

535.26 	Sec. 28. Minnesota Statutes 2024, section 241.021, subdivision 2, is amended to read:
535.27 		Subd. 2.Facilities for delinquent children and youth; licenses; 
535.28 	supervision. Notwithstanding any provisions in sections 256.01, subdivision 2, paragraph 
535.29 	(a), clause (2),; 142B.05; 142B.10;245A.03,; and 245A.04, and chapter 245C, to the contrary, 
535.30 	but subject to the municipality notification requirements of subdivision 2a, the commissioner 
535.31 	of corrections shall review all county, municipal, or other publicly established and operated 
535.32 	facilities for the detention, care and training of delinquent children and youth at least once 
535.33 	every biennium, and if such facility conforms to reasonable standards established by the 
536.1 	commissioner or in the commissioner's judgment is making satisfactory progress toward 
536.2 	substantial conformity therewith, and the commissioner is satisfied that the interests and 
536.3 	well-being of children and youth received therein are protected, the commissioner shall 
536.4 	grant a license to the county, municipality or agency thereof operating such facility. The 
536.5 	commissioner may grant licensure up to two years. Each such facility shall cooperate with 
536.6 	the commissioner to make available all facts regarding its operation and services as the 
536.7 	commissioner requires to determine its conformance to standards and its competence to 
536.8 	give the services needed and which it purports to give. Every such facility as herein described 
536.9 	is subject to visitation and supervision by the commissioner and shall receive from the 
536.10 	commissioner consultation as needed to strengthen services to the children and youth received 
536.11 	therein.

536.12 	Sec. 29. Minnesota Statutes 2024, section 242.09, is amended to read:
536.13 	242.09 COOPERATION; OTHER AGENCIES.
536.14 	The commissioner of human services,; the commissioner of education,; the commissioner 
536.15 	of children, youth, and families; and the state commissioner of health shall advise, cooperate 
536.16 	with and assist the commissioner of corrections in carrying out the duties and responsibilities 
536.17 	assigned by this chapter, and for these purposes may attend meetings. Their facilities and 
536.18 	services and those of other state agencies, particularly of the Department of Human Services
536.19 	and Department of Children, Youth, and Families, shall be made available to the 
536.20 	commissioner of corrections upon the terms the governor directs.

536.21 	Sec. 30. Minnesota Statutes 2024, section 242.21, is amended to read:
536.22 	242.21 COOPERATION; STATE INSTITUTIONS, LOCAL POLICE OFFICERS.
536.23 	The commissioner of corrections may enter into agreement with the Direct Care and 
536.24 	Treatment executive board, with; the commissioner of children, youth, and families; the 
536.25 	commissioner of human services; local probation officers or other public officials; and with
536.26 	public or private agencies, schools, or institutions, for custody, separate care, special 
536.27 	treatment, training, or diagnostic services of persons committed to the care or subject to the 
536.28 	control of the commissioner of corrections. The commissioner of corrections may pay any 
536.29 	costs incurred by such agreements to the extent that funds for such purposes are made 
536.30 	available to the commissioner by the legislature.

537.1 	Sec. 31. Minnesota Statutes 2024, section 242.32, subdivision 1, is amended to read:
537.2 		Subdivision 1.Community-based programming. The commissioner of corrections 
537.3 	shall be charged with the duty of developing constructive programs for the prevention and 
537.4 	decrease of delinquency and crime among youth. To that end, the commissioner shall 
537.5 	cooperate with counties and existing agencies to encourage the establishment of new 
537.6 	programming, both local and statewide, to provide a continuum of services for serious and 
537.7 	repeat juvenile offenders who do not require secure placement. The commissioner shall 
537.8 	work jointly with the commissioner of human services; the commissioner of children, youth, 
537.9 	and families; and counties and municipalities to develop and provide community-based 
537.10 	services for residential placement of juvenile offenders and community-based services for 
537.11 	nonresidential programming for juvenile offenders and their families.
537.12 	Notwithstanding any law to the contrary, the commissioner of corrections is authorized 
537.13 	to contract with counties placing juveniles in the serious/chronic program at the Minnesota 
537.14 	Correctional Facility-Red Wing to provide necessary extended community transition 
537.15 	programming. Funds resulting from the contracts shall be deposited in the state treasury 
537.16 	and are appropriated to the commissioner for juvenile correctional purposes.

537.17 	Sec. 32. Minnesota Statutes 2024, section 245.697, subdivision 1, is amended to read:
537.18 		Subdivision 1.Creation. (a) A State Advisory Council on Mental Health is created. The 
537.19 	council must have members appointed by the governor in accordance with federal 
537.20 	requirements. In making the appointments, the governor shall consider appropriate 
537.21 	representation of communities of color. The council must be composed of:
537.22 	(1) the assistant commissioner of the Department of Human Services who oversees 
537.23 	behavioral health policy;
537.24 	(2) a representative of the Department of Human Services responsible for the medical 
537.25 	assistance program;
537.26 	(3) a representative of Direct Care and Treatment;
537.27 	(4) a representative of the Department of Health;
537.28 	(5) a representative of the Department of Children, Youth, and Families;
537.29 	(5) (6) one member of each of the following professions:
537.30 	(i) psychiatry;
537.31 	(ii) psychology;
538.1 	(iii) social work;
538.2 	(iv) nursing;
538.3 	(v) marriage and family therapy; and
538.4 	(vi) professional clinical counseling;
538.5 	(6) (7) one representative from each of the following advocacy groups: Mental Health 
538.6 	Association of Minnesota, NAMI-MN, Minnesota Disability Law Center, American Indian 
538.7 	Mental Health Advisory Council, and a consumer-run mental health advocacy group;
538.8 	(7) (8) providers of mental health services;
538.9 	(8) (9) consumers of mental health services;
538.10 	(9) (10) family members of persons with mental illnesses;
538.11 	(10) (11) legislators;
538.12 	(11) (12) social service agency directors;
538.13 	(12) (13) county commissioners; and
538.14 	(13) (14) other members reflecting a broad range of community interests, including 
538.15 	family physicians, or members as the United States Secretary of Health and Human Services 
538.16 	may prescribe by regulation or as may be selected by the governor.
538.17 	(b) The council shall select a chair. Terms, compensation, and removal of members and 
538.18 	filling of vacancies are governed by section 15.059. Notwithstanding provisions of section 
538.19 	15.059, the council and its subcommittee on children's mental health do not expire. The 
538.20 	commissioner of human services shall provide staff support and supplies to the council.

538.21 	Sec. 33. Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:
538.22 		Subd. 2a.Subcommittee on Children's Mental Health. The State Advisory Council 
538.23 	on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental 
538.24 	Health. The subcommittee must make recommendations to the advisory council on policies, 
538.25 	laws, regulations, and services relating to children's mental health. Members of the 
538.26 	subcommittee must include:
538.27 	(1) the commissioners or designees of the commissioners of the Departments of Human 
538.28 	Services,; Children, Youth, and Families; Health,; Education,; State Planning,; and 
538.29 	Corrections;
538.30 	(2) a designee of the Direct Care and Treatment executive board;
539.1 	(3) the commissioner of commerce or a designee of the commissioner who is 
539.2 	knowledgeable about medical insurance issues;
539.3 	(4) at least one representative of an advocacy group for children with emotional 
539.4 	disturbances;
539.5 	(5) providers of children's mental health services, including at least one provider of 
539.6 	services to preadolescent children, one provider of services to adolescents, and one 
539.7 	hospital-based provider;
539.8 	(6) parents of children who have emotional disturbances;
539.9 	(7) a present or former consumer of adolescent mental health services;
539.10 	(8) educators currently working with emotionally disturbed children;
539.11 	(9) people knowledgeable about the needs of emotionally disturbed children of minority 
539.12 	races and cultures;
539.13 	(10) people experienced in working with emotionally disturbed children who have 
539.14 	committed status offenses;
539.15 	(11) members of the advisory council;
539.16 	(12) one person from the local corrections department and one representative of the 
539.17 	Minnesota District Judges Association Juvenile Committee; and
539.18 	(13) county commissioners and social services agency representatives.
539.19 	The chair of the advisory council shall appoint subcommittee members described in 
539.20 	clauses (4) to (12) through the process established in section 15.0597. The chair shall appoint 
539.21 	members to ensure a geographical balance on the subcommittee. Terms, compensation, 
539.22 	removal, and filling of vacancies are governed by subdivision 1, except that terms of 
539.23 	subcommittee members who are also members of the advisory council are coterminous with 
539.24 	their terms on the advisory council. The subcommittee shall meet at the call of the 
539.25 	subcommittee chair who is elected by the subcommittee from among its members. The 
539.26 	subcommittee expires with the expiration of the advisory council.

539.27 	Sec. 34. Minnesota Statutes 2024, section 245.814, subdivision 1, is amended to read:
539.28 		Subdivision 1.Insurance for foster home providers. (a) The commissioner of human 
539.29 	services or the commissioner of children, youth, and families shall within the appropriation 
539.30 	provided purchase and provide insurance to individuals licensed as foster home providers 
539.31 	to cover their liability for:
540.1 	(1) injuries or property damage caused or sustained by persons in foster care in their 
540.2 	home; and
540.3 	(2) actions arising out of alienation of affections sustained by the birth parents of a foster 
540.4 	child or birth parents or children of a foster adult.
540.5 	(b) Each commissioner shall provide insurance for the providers the commissioner 
540.6 	licenses.
540.7 	(c) For purposes of this subdivision, insurance for homes licensed to provide adult foster 
540.8 	care shall be limited to family adult foster care homes as defined in section 245A.02, 
540.9 	subdivision 6f, and family adult day services licensed under section 245A.143.

540.10 	Sec. 35. Minnesota Statutes 2024, section 245.814, subdivision 2, is amended to read:
540.11 		Subd. 2.Application of coverage. Coverage shall apply to all foster homes licensed by 
540.12 	the Department of Human Services or the Department of Children, Youth, and Families, 
540.13 	licensed by a federally recognized tribal government, or established by the juvenile court 
540.14 	and certified by the commissioner of corrections pursuant to section 260B.198, subdivision 
540.15 	1, paragraph (a), clause (3), item (v), to the extent that the liability is not covered by the 
540.16 	provisions of the standard homeowner's or automobile insurance policy. The insurance shall 
540.17 	not cover property owned by the individual foster home provider, damage caused 
540.18 	intentionally by a person over 12 years of age, or property damage arising out of business 
540.19 	pursuits or the operation of any vehicle, machinery, or equipment.

540.20 	Sec. 36. Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:
540.21 		Subd. 3.Compensation provisions. If the commissioner of human services or the 
540.22 	commissioner of children, youth, and families is unable to obtain insurance through ordinary 
540.23 	methods for coverage of foster home providers, the appropriation shall be returned to the 
540.24 	general fund and the state shall pay claims subject to the following limitations.
540.25 	(a) Compensation shall be provided only for injuries, damage, or actions set forth in 
540.26 	subdivision 1.
540.27 	(b) Compensation shall be subject to the conditions and exclusions set forth in subdivision 
540.28 	2.
540.29 	(c) The state shall provide compensation for bodily injury, property damage, or personal 
540.30 	injury resulting from the foster home providers activities as a foster home provider while 
540.31 	the foster child or adult is in the care, custody, and control of the foster home provider in 
540.32 	an amount not to exceed $250,000 for each occurrence.
541.1 	(d) The state shall provide compensation for damage or destruction of property caused 
541.2 	or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.
541.3 	(e) The compensation in paragraphs (c) and (d) is the total obligation for all damages 
541.4 	because of each occurrence regardless of the number of claims made in connection with 
541.5 	the same occurrence, but compensation applies separately to each foster home. The state 
541.6 	shall have no other responsibility to provide compensation for any injury or loss caused or 
541.7 	sustained by any foster home provider or foster child or foster adult.
541.8 	This coverage is extended as a benefit to foster home providers to encourage care of 
541.9 	persons who need out-of-home care. Nothing in this section shall be construed to mean that 
541.10 	foster home providers are agents or employees of the state nor does the state accept any 
541.11 	responsibility for the selection, monitoring, supervision, or control of foster home providers 
541.12 	which is exclusively the responsibility of the counties which shall regulate foster home 
541.13 	providers in the manner set forth in the rules of the commissioner commissioners of human 
541.14 	services and children, youth, and families.

541.15 	Sec. 37. Minnesota Statutes 2024, section 245.814, subdivision 4, is amended to read:
541.16 		Subd. 4.Liability insurance; risk pool. If the commissioner that licenses a program
541.17 	determines that appropriate commercial liability insurance coverage is not available for a 
541.18 	licensed foster home, group home, developmental achievement center, or day care provider, 
541.19 	and that coverage available through the joint underwriting authority of the commissioner 
541.20 	of commerce or other public entity is not appropriate for the provider or a class of providers, 
541.21 	the commissioner of human services; the commissioner of children, youth, and families;
541.22 	and the commissioner of commerce may jointly establish a risk pool to provide coverage 
541.23 	for licensed providers out of premiums or fees paid by providers. The commissioners may 
541.24 	set limits on coverage, establish premiums or fees, determine the proportionate share of 
541.25 	each provider to be collected in a premium or fee based on the provider's claim experience 
541.26 	and other factors the commissioners consider appropriate, establish eligibility and application 
541.27 	requirements for coverage, and take other action necessary to accomplish the purposes of 
541.28 	this subdivision. A human services risk pool fund is created for the purposes of this 
541.29 	subdivision. Fees and premiums collected from providers for risk pool coverage are 
541.30 	appropriated to the risk pool fund. Interest earned from the investment of money in the fund 
541.31 	must be credited to the fund and money in the fund is appropriated to the commissioner
541.32 	commissioners of human services and children, youth, and families in proportion to the 
541.33 	amounts insured by each commissioner to pay administrative costs and covered claims for 
541.34 	participating providers. In the event that money in the fund is insufficient to pay outstanding 
542.1 	claims and associated administrative costs, the commissioner commissioners of human 
542.2 	services and children, youth, and families may assess providers participating in the risk pool 
542.3 	amounts sufficient to pay the costs. The commissioner commissioners of human services
542.4 	and children, youth, and families may not assess a provider an amount exceeding one year's 
542.5 	premiums collected from that provider.

542.6 	Sec. 38. Minnesota Statutes 2024, section 245C.02, subdivision 7, is amended to read:
542.7 		Subd. 7.Commissioner. "Commissioner" has the meaning given in section 245A.02, 
542.8 	subdivision 5 means the commissioner of human services.

542.9 	Sec. 39. Minnesota Statutes 2024, section 245C.02, subdivision 12, is amended to read:
542.10 		Subd. 12.License. "License" has the meaning given in section 245A.02, subdivision 8
542.11 	means a certificate issued by the commissioner of human services; children, youth, and 
542.12 	families; corrections; or health authorizing the license holder to provide a specified program 
542.13 	for a specified period of time and in accordance with the terms of the license and the rules 
542.14 	of the commissioner issuing the license.

542.15 	Sec. 40. Minnesota Statutes 2024, section 245C.02, subdivision 13, is amended to read:
542.16 		Subd. 13.License holder. "License holder" has the meaning given in section 245A.02, 
542.17 	subdivision 9 means an individual, organization, or government entity that is legally 
542.18 	responsible for the operation of the program or service and has been granted a license by 
542.19 	the commissioner of human services; children, youth, and families; corrections; or health.

542.20 	Sec. 41. Minnesota Statutes 2024, section 245C.031, subdivision 9, is amended to read:
542.21 		Subd. 9.Guardians ad litem; required checks. (a) An alternative background study 
542.22 	for a guardian ad litem under subdivision 8 must include:
542.23 	(1) criminal history data from the Bureau of Criminal Apprehension and other criminal 
542.24 	history data obtained by the commissioner of human services; and
542.25 	(2) data regarding whether the person has been a perpetrator of substantiated maltreatment 
542.26 	of a minor or a vulnerable adult. If the study subject has been determined by the Department 
542.27 	of Human Services; the Department of Children, Youth, and Families; or the Department 
542.28 	of Health to be the perpetrator of substantiated maltreatment of a minor or a vulnerable 
542.29 	adult in a licensed facility, the response must include a copy of the public portion of the 
542.30 	investigation memorandum under section 260E.30 or the public portion of the investigation 
542.31 	memorandum under section 626.557, subdivision 12b. When the background study shows 
543.1 	that the subject has been determined by a county adult protection or child protection agency 
543.2 	to have been responsible for maltreatment, the court shall be informed of the county, the 
543.3 	date of the finding, and the nature of the maltreatment that was substantiated.
543.4 	(b) For checks of records under paragraph (a), clauses (1) and (2), the commissioner 
543.5 	shall provide the records within 15 working days of receiving the request. The information 
543.6 	obtained under sections 245C.05 and 245C.08 from a national criminal history records 
543.7 	check shall be provided within three working days of the commissioner's receipt of the data.
543.8 	(c) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
543.9 	or county lead agency or lead investigative agency has information that a person of whom 
543.10 	a background study was previously completed under this section has been determined to 
543.11 	be a perpetrator of maltreatment of a minor or vulnerable adult, the commissioner or the 
543.12 	county may provide this information to the court that requested the background study.

543.13 	Sec. 42. Minnesota Statutes 2024, section 245C.033, subdivision 2, is amended to read:
543.14 		Subd. 2.State licensing agency data. (a) Requests for state licensing agency data 
543.15 	submitted pursuant to section 524.5-118 must include information from a check of state 
543.16 	licensing agency records.
543.17 	(b) The commissioner shall provide the court with licensing agency data for licenses 
543.18 	directly related to the responsibilities of a guardian or conservator if the guardian or 
543.19 	conservator has a current or prior affiliation with the:
543.20 	(1) Lawyers Responsibility Board;
543.21 	(2) State Board of Accountancy;
543.22 	(3) Board of Social Work;
543.23 	(4) Board of Psychology;
543.24 	(5) Board of Nursing;
543.25 	(6) Board of Medical Practice;
543.26 	(7) Department of Education;
543.27 	(8) Department of Commerce;
543.28 	(9) Board of Chiropractic Examiners;
543.29 	(10) Board of Dentistry;
543.30 	(11) Board of Marriage and Family Therapy;
544.1 	(12) Department of Human Services;
544.2 	(13) Department of Children, Youth, and Families;
544.3 	(13) (14) Peace Officer Standards and Training (POST) Board; or
544.4 	(14) (15) Professional Educator Licensing and Standards Board.
544.5 	(c) The commissioner shall provide to the court the electronically available data 
544.6 	maintained in the agency's database, including whether the guardian or conservator is or 
544.7 	has been licensed by the agency and whether a disciplinary action or a sanction against the 
544.8 	individual's license, including a condition, suspension, revocation, or cancellation, is in the 
544.9 	licensing agency's database.

544.10 	Sec. 43. Minnesota Statutes 2024, section 245C.05, subdivision 7, is amended to read:
544.11 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or corrections 
544.12 	agent shall notify the commissioner of an individual's conviction if the individual:
544.13 	(1) has been affiliated with a program or facility regulated by the Department of Human 
544.14 	Services; Department of Children, Youth, and Families; or Department of Health, a facility 
544.15 	serving children or youth licensed by the Department of Corrections, or any type of home 
544.16 	care agency or provider of personal care assistance services within the preceding year; and
544.17 	(2) has been convicted of a crime constituting a disqualification under section 245C.14.
544.18 	(b) For the purpose of this subdivision, "conviction" has the meaning given it in section 
544.19 	609.02, subdivision 5.
544.20 	(c) The commissioner, in consultation with the commissioner of corrections, shall develop 
544.21 	forms and information necessary to implement this subdivision and shall provide the forms 
544.22 	and information to the commissioner of corrections for distribution to local probation officers 
544.23 	and corrections agents.
544.24 	(d) The commissioner shall inform individuals subject to a background study that criminal 
544.25 	convictions for disqualifying crimes shall be reported to the commissioner by the corrections 
544.26 	system.
544.27 	(e) A probation officer, corrections agent, or corrections agency is not civilly or criminally 
544.28 	liable for disclosing or failing to disclose the information required by this subdivision.
544.29 	(f) Upon receipt of disqualifying information, the commissioner shall provide the notice 
544.30 	required under section 245C.17, as appropriate, to agencies on record as having initiated a 
545.1 	background study or making a request for documentation of the background study status 
545.2 	of the individual.
545.3 	(g) This subdivision does not apply to family child care programs or legal nonlicensed 
545.4 	child care programs for individuals whose background study was completed in NETStudy 
545.5 	2.0.

545.6 	Sec. 44. Minnesota Statutes 2024, section 245C.07, is amended to read:
545.7 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
545.8 	(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other 
545.9 	entity owns multiple programs or services that are licensed by the Department of Human 
545.10 	Services,; Department of Children, Youth, and Families; Department of Health,; or 
545.11 	Department of Corrections, only one background study is required for an individual who 
545.12 	provides direct contact services in one or more of the licensed programs or services if:
545.13 	(1) the license holder designates one individual with one address and telephone number 
545.14 	as the person to receive sensitive background study information for the multiple licensed 
545.15 	programs or services that depend on the same background study; and
545.16 	(2) the individual designated to receive the sensitive background study information is 
545.17 	capable of determining, upon request of the department, whether a background study subject 
545.18 	is providing direct contact services in one or more of the license holder's programs or services 
545.19 	and, if so, at which location or locations.
545.20 	(b) When a license holder maintains background study compliance for multiple licensed 
545.21 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
545.22 	license holder shall immediately notify the commissioner which staff must be transferred 
545.23 	to an active license so that the background studies can be electronically paired with the 
545.24 	license holder's active program.
545.25 	(c) When a background study is being initiated by a licensed program or service or a 
545.26 	foster care provider that is also licensed under chapter 144G, a study subject affiliated with 
545.27 	multiple licensed programs or services may attach to the background study form a cover 
545.28 	letter indicating the additional names of the programs or services, addresses, and background 
545.29 	study identification numbers.
545.30 	When the commissioner receives a notice, the commissioner shall notify each program 
545.31 	or service identified by the background study subject of the study results.
546.1 	The background study notice the commissioner sends to the subsequent agencies shall 
546.2 	satisfy those programs' or services' responsibilities for initiating a background study on that 
546.3 	individual.
546.4 	(d) If a background study was conducted on an individual related to child foster care 
546.5 	and the requirements under paragraph (a) are met, the background study is transferable 
546.6 	across all licensed programs. If a background study was conducted on an individual under 
546.7 	a license other than child foster care and the requirements under paragraph (a) are met, the 
546.8 	background study is transferable to all licensed programs except child foster care.
546.9 	(e) The provisions of this section that allow a single background study in one or more 
546.10 	licensed programs or services do not apply to background studies submitted by adoption 
546.11 	agencies, supplemental nursing services agencies, personnel pool agencies, educational 
546.12 	programs, professional services agencies, temporary personnel agencies, and unlicensed 
546.13 	personal care provider organizations.
546.14 	(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
546.15 	system used to document when a background study subject is affiliated with multiple entities. 
546.16 	For a background study to be transferable:
546.17 	(1) the background study subject must be on and moving to a roster for which the person 
546.18 	designated to receive sensitive background study information is the same; and
546.19 	(2) the same entity must own or legally control both the roster from which the transfer 
546.20 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
546.21 	controls multiple licenses, or unlicensed personal care provider organizations, there must 
546.22 	be a common highest level entity that has a legally identifiable structure that can be verified 
546.23 	through records available from the secretary of state.

546.24 	Sec. 45. Minnesota Statutes 2024, section 256.88, is amended to read:
546.25 	256.88 SOCIAL WELFARE FUND ESTABLISHED.
546.26 	Except as otherwise expressly provided, all moneys and funds held by the commissioner 
546.27 	of human services,; the commissioner of children, youth, and families; the Direct Care and 
546.28 	Treatment executive board,; and the local social services agencies of the several counties 
546.29 	in trust or for the benefit of children with a disability and children who are dependent, 
546.30 	neglected, or delinquent,; children born to mothers who were not married to the children's 
546.31 	fathers at the times of the conception nor at the births of the children,; persons determined 
546.32 	to have developmental disability, mental illness, or substance use disorder,; or other wards 
546.33 	or beneficiaries, under any law, shall be kept in a single fund to be known as the "social 
547.1 	welfare fund" which shall be deposited at interest, held, or disbursed as provided in sections 
547.2 	256.89 to 256.92.

547.3 	Sec. 46. Minnesota Statutes 2024, section 256.89, is amended to read:
547.4 	256.89 FUND DEPOSITED IN STATE TREASURY.
547.5 	The social welfare fund and all accretions thereto shall be deposited in the state treasury, 
547.6 	as a separate and distinct fund, to the credit of the commissioner of human services; the 
547.7 	commissioner of children, youth, and families; and the Direct Care and Treatment executive 
547.8 	board as trustees for their respective beneficiaries in proportion to the beneficiaries' several 
547.9 	interests. The commissioner of management and budget shall be responsible only to the 
547.10 	commissioner of human services; the commissioner of children, youth, and families; and 
547.11 	the Direct Care and Treatment executive board for the sum total of the fund, and shall have 
547.12 	no duties nor direct obligations toward the beneficiaries thereof individually. Subject to the 
547.13 	applicable rules of the commissioner of human services; the commissioner of children, 
547.14 	youth, and families; or the Direct Care and Treatment executive board, money so received 
547.15 	by a local social services agency may be deposited by the executive secretary of the local 
547.16 	social services agency in a local bank carrying federal deposit insurance, designated by the 
547.17 	local social services agency for this purpose. The amount of such deposit in each such bank 
547.18 	at any one time shall not exceed the amount protected by federal deposit insurance.

547.19 	Sec. 47. Minnesota Statutes 2024, section 256.90, is amended to read:
547.20 	256.90 SOCIAL WELFARE FUND; USE; DISPOSITION; DEPOSITORIES.
547.21 	The commissioner of human services, in consultation with the commissioner of children, 
547.22 	youth, and families and the Direct Care and Treatment executive board, at least 30 days 
547.23 	before the first day of January and the first day of July in each year shall file with the 
547.24 	commissioner of management and budget an estimate of the amount of the social welfare 
547.25 	fund to be held in the treasury during the succeeding six-month period, subject to current 
547.26 	disbursement. Such portion of the remainder thereof as may be at any time designated by 
547.27 	the request of the commissioner of human services may be invested by the commissioner 
547.28 	of management and budget in bonds in which the permanent trust funds of the state of 
547.29 	Minnesota may be invested, upon approval by the State Board of Investment. The portion 
547.30 	of such remainder not so invested shall be placed by the commissioner of management and 
547.31 	budget at interest for the period of six months, or when directed by the commissioner of 
547.32 	human services, for the period of 12 months thereafter at the highest rate of interest obtainable 
547.33 	in a bank, or banks, designated by the board of deposit as a suitable depository therefor. All 
548.1 	the provisions of law relative to the designation and qualification of depositories of other 
548.2 	state funds shall be applicable to sections 256.88 to 256.92, except as herein otherwise 
548.3 	provided. Any bond given, or collateral assigned or both, to secure a deposit hereunder may 
548.4 	be continuous in character to provide for the repayment of any moneys belonging to the 
548.5 	fund theretofore or thereafter at any time deposited in such bank until its designation as 
548.6 	such depository is revoked and the security thereof shall be not impaired by any subsequent 
548.7 	agreement or understanding as to the rate of interest to be paid upon such deposit, or as to 
548.8 	time for its repayment. The amount of money belonging to the fund deposited in any bank, 
548.9 	including other state deposits, shall not at any time exceed the amount of the capital stock 
548.10 	thereof. In the event of the closing of the bank any sum deposited therein shall immediately 
548.11 	become due and payable.

548.12 	Sec. 48. Minnesota Statutes 2024, section 256.91, is amended to read:
548.13 	256.91 PURPOSES.
548.14 	From that part of the social welfare fund held in the state treasury subject to disbursement 
548.15 	as provided in section 256.90, the commissioner of human services; the commissioner of 
548.16 	children, youth, and families; or the Direct Care and Treatment executive board at any time 
548.17 	may pay out such amounts as the commissioner commissioners or executive board deems 
548.18 	proper for the support, maintenance, or other legal benefit of any of the children with a 
548.19 	disability and children who are dependent, neglected, or delinquent,; children born to mothers 
548.20 	who were not married to the children's fathers at the times of the conception nor at the births 
548.21 	of the children,; persons with developmental disability, substance use disorder, or mental 
548.22 	illness,; or other wards or persons entitled thereto, not exceeding in the aggregate to or for 
548.23 	any person the principal amount previously received for the benefit of the person, together 
548.24 	with the increase in it from an equitable apportionment of interest realized from the social 
548.25 	welfare fund.
548.26 	When any such person dies or is finally discharged from the guardianship, care, custody, 
548.27 	and control of the commissioner of human services; the commissioner of children, youth, 
548.28 	and families; or the Direct Care and Treatment executive board, the amount then remaining 
548.29 	subject to use for the benefit of the person shall be paid as soon as may be from the social 
548.30 	welfare fund to the persons thereto entitled by law.

549.1 	Sec. 49. Minnesota Statutes 2024, section 256.92, is amended to read:
549.2 	256.92 COMMISSIONER OF HUMAN SERVICES AND DIRECT CARE AND 
549.3 	TREATMENT COMMISSIONERS AND EXECUTIVE BOARD, ACCOUNTS.
549.4 	It shall be the duty of the commissioner of human services,; the commissioner of children, 
549.5 	youth, and families; the Direct Care and Treatment executive board,; and the local social 
549.6 	services agencies of the several counties of this state to cause to be deposited with the 
549.7 	commissioner of management and budget all moneys and funds in their possession or under 
549.8 	their control and designated by section 256.91 as and for the social welfare fund; and all 
549.9 	such moneys and funds shall be so deposited in the state treasury as soon as received. The 
549.10 	commissioner of human services, in consultation with the commissioner of children, youth, 
549.11 	and families and the Direct Care and Treatment executive board, shall keep books of account 
549.12 	or other records showing separately the principal amount received and deposited in the 
549.13 	social welfare fund for the benefit of any person, together with the name of such person, 
549.14 	and the name and address, if known to the commissioner of human services; the 
549.15 	commissioner of children, youth, and families; or the Direct Care and Treatment executive 
549.16 	board, of the person from whom such money was received; and, at least once every two 
549.17 	years, the amount of interest, if any, which the money has earned in the social welfare fund 
549.18 	shall be apportioned thereto and posted in the books of account or records to the credit of 
549.19 	such beneficiary.
549.20 	The provisions of sections 256.88 to 256.92 shall not apply to any fund or money now 
549.21 	or hereafter deposited or otherwise disposed of pursuant to the lawful orders, decrees, 
549.22 	judgments, or other directions of any district court having jurisdiction thereof.

549.23 	Sec. 50. Minnesota Statutes 2024, section 256G.01, subdivision 1, is amended to read:
549.24 		Subdivision 1.Applicability. This chapter governs the Minnesota human services system. 
549.25 	The system includes the Department of Human Services,; the Department of Children, 
549.26 	Youth, and Families; Direct Care and Treatment,; local social services agencies,; county 
549.27 	welfare agencies,; human service boards,; community mental health center boards,; state 
549.28 	hospitals,; state nursing homes,; and persons, agencies, institutions, organizations, and other 
549.29 	entities under contract to any of those agencies to the extent specified in the contract.

549.30 	Sec. 51. Minnesota Statutes 2024, section 256G.01, subdivision 3, is amended to read:
549.31 		Subd. 3.Program coverage. This chapter applies to all social service programs 
549.32 	administered by the commissioner of human services; the commissioner of children, youth, 
549.33 	and families; or the Direct Care and Treatment executive board in which residence is the 
550.1 	determining factor in establishing financial responsibility. These include, but are not limited 
550.2 	to: commitment proceedings, including voluntary admissions; emergency holds; poor relief 
550.3 	funded wholly through local agencies; social services, including title XX, IV-E and section 
550.4 	256K.10; social services programs funded wholly through the resources of county agencies; 
550.5 	social services provided under the Minnesota Indian Family Preservation Act, sections 
550.6 	260.751 to 260.781; costs for delinquency confinement under section 393.07, subdivision 
550.7 	2; service responsibility for these programs; and housing support under chapter 256I.

550.8 	Sec. 52. Minnesota Statutes 2024, section 256G.03, subdivision 2, is amended to read:
550.9 		Subd. 2.No durational test. Except as otherwise provided in sections 142G.12; 142G.78; 
550.10 	256B.056, subdivision 1; and 256D.02, subdivision 12a for purposes of this chapter, no 
550.11 	waiting period is required before securing county or state residence. A person cannot, 
550.12 	however, gain residence while physically present in an excluded time facility unless otherwise 
550.13 	specified in this chapter or in a federal regulation controlling a federally funded human 
550.14 	service; children, youth, and families; or direct care and treatment program. Interstate 
550.15 	migrants who enter a shelter for battered women directly from another state can gain 
550.16 	residency while in the facility provided the person can provide documentation that the person 
550.17 	is a victim of domestic abuse and the county determines that the placement is appropriate.

550.18 	Sec. 53. Minnesota Statutes 2024, section 256G.04, subdivision 2, is amended to read:
550.19 		Subd. 2.Moving out of state. (a) A person retains county and state residence so long 
550.20 	as the person's absence from Minnesota is viewed as a temporary absence within the context 
550.21 	of the affected program.
550.22 	(b) Direct entry into a facility in another state does not end Minnesota residence for 
550.23 	purposes of this chapter. Financial responsibility does not continue, however, unless 
550.24 	placement was initiated by a human service; children, youth, and families; or direct care 
550.25 	and treatment agency or another governmental entity that has statutory authority to bind the 
550.26 	human service; children, youth, and families; or direct care and treatment agency and is 
550.27 	based on a formal, written plan of treatment, or unless federal regulations require payment 
550.28 	for an out-of-state resident.

550.29 	Sec. 54. Minnesota Statutes 2024, section 256G.09, subdivision 2, is amended to read:
550.30 		Subd. 2.Financial disputes. (a) If the county receiving the transmittal does not believe 
550.31 	it is financially responsible, it should provide to the commissioner of human services and 
550.32 	the initially responsible county a statement of all facts and documents necessary for the 
551.1 	commissioner to make the requested determination of financial responsibility. The submission 
551.2 	must clearly state the program area in dispute and must state the specific basis upon which 
551.3 	the submitting county is denying financial responsibility.
551.4 	(b) The initially responsible county then has 15 calendar days to submit its position and 
551.5 	any supporting evidence to the commissioner of human services. The absence of a submission 
551.6 	by the initially responsible county does not limit the right of the commissioner of human 
551.7 	services; the commissioner of children, youth, and families; or Direct Care and Treatment 
551.8 	executive board to issue a binding opinion based on the evidence actually submitted.
551.9 	(c) A case must not be submitted until the local agency taking the application or making 
551.10 	the commitment has made an initial determination about eligibility and financial 
551.11 	responsibility, and services have been initiated. This paragraph does not prohibit the 
551.12 	submission of closed cases that otherwise meet the applicable statute of limitations.

551.13 	Sec. 55. Minnesota Statutes 2024, section 256G.09, subdivision 3, is amended to read:
551.14 		Subd. 3.Commissioner of human services obligations. (a) Except as provided in 
551.15 	paragraph (b) for matters solely under the jurisdiction of the Direct Care and Treatment 
551.16 	executive board or the commissioner of children, youth, and families, the commissioner of 
551.17 	human services shall then promptly decide any question of financial responsibility as outlined 
551.18 	in this chapter and make an order referring the application to the local agency of the proper 
551.19 	county for further action. Further action may include reimbursement by that county of 
551.20 	assistance that another county has provided to the applicant under this subdivision. The 
551.21 	commissioner shall decide disputes within 60 days of the last county evidentiary submission 
551.22 	and shall issue an immediate opinion.
551.23 	(b) For disputes regarding financial responsibility relating to matters solely under the 
551.24 	jurisdiction of the Direct Care and Treatment executive board or the commissioner of 
551.25 	children, youth, and families, the commissioner of human services shall promptly issue an 
551.26 	advisory opinion on any question of financial responsibility as outlined in this chapter and 
551.27 	recommend to the executive board or commissioner of children, youth, and families an 
551.28 	order referring the application to the local agency of the proper county for further action. 
551.29 	Further action may include reimbursement by that county of assistance that another county 
551.30 	has provided to the applicant under this subdivision. The commissioner of human services
551.31 	shall provide an advisory opinion and recommended order to the executive board or 
551.32 	commissioner of children, youth, and families within 30 days of the last county evidentiary 
551.33 	submission. The executive board or commissioner of children, youth, and families shall 
551.34 	decide to accept or reject the commissioner's advisory opinion and recommended order 
552.1 	within 60 days of the last county evidentiary submission and shall issue an immediate 
552.2 	opinion stating the reasons for accepting or rejecting the commissioner's recommendation
552.3 	of the commissioner of human services.
552.4 	(c) The commissioner of human services may make any investigation it considers proper 
552.5 	before making a decision or a recommendation to the executive board or commissioner of 
552.6 	children, youth, and families. The commissioner of human services may prescribe rules it 
552.7 	considers necessary to carry out this subdivision except that the commissioner of human 
552.8 	services must not create rules purporting to bind the executive board's decision of the 
552.9 	executive board or commissioner of children, youth, and families on any advisory opinion 
552.10 	or recommended order under paragraph (b).
552.11 	(d) Except as provided in paragraph (e) for matters solely under the jurisdiction of the 
552.12 	executive board or the commissioner of children, youth, and families, the order of the 
552.13 	commissioner of human services binds the local agency involved and the applicant or 
552.14 	recipient. That agency shall comply with the order unless reversed on appeal as provided 
552.15 	in section 256.045, subdivision 7. The agency shall comply with the order pending the 
552.16 	appeal.
552.17 	(e) For disputes regarding financial responsibility relating to matters solely under the 
552.18 	jurisdiction of the Direct Care and Treatment executive board or the commissioner of 
552.19 	children, youth, and families, the order of the executive board or the commissioner of 
552.20 	children, youth, and families binds the local agency involved and the applicant or recipient. 
552.21 	That agency shall comply with the order of the executive board or the commissioner of 
552.22 	children, youth, and families unless the order is reversed on appeal as provided in section
552.23 	142A.20, subdivision 5, or256.045, subdivision 7. The agency shall comply with the order 
552.24 	of the executive board or the commissioner of children, youth, and families pending the 
552.25 	appeal.

552.26 	Sec. 56. Minnesota Statutes 2024, section 256G.09, subdivision 4, is amended to read:
552.27 		Subd. 4.Appeals. A local agency that is aggrieved by the order of the department
552.28 	commissioner of human services, executive board, or commissioner of children, youth, and 
552.29 	families under subdivision 3, paragraph (e), may appeal the opinion to the district court of 
552.30 	the county responsible for furnishing assistance or services by serving a written copy of a 
552.31 	notice of appeal on the commissioner of human services and any adverse party of record 
552.32 	within 30 days after the date the department issued the opinion, and by filing the original 
552.33 	notice and proof of service with the court administrator of district court. Service may be 
552.34 	made personally or by mail. Service by mail is complete upon mailing.
553.1 	The commissioner of human services; the commissioner of children, youth, and families; 
553.2 	or the executive board may elect to become a party to the proceedings in district court. The 
553.3 	court may consider the matter in or out of chambers and shall take no new or additional 
553.4 	evidence.

553.5 	Sec. 57. Minnesota Statutes 2024, section 256G.09, subdivision 5, is amended to read:
553.6 		Subd. 5.Payment pending appeal. After the department commissioner of human 
553.7 	services, or the executive board or commissioner of children, youth, and families under 
553.8 	subdivision 3, paragraph (e), issues an opinion in any submission under this section, the 
553.9 	service or assistance covered by the submission must be provided or paid pending or during 
553.10 	an appeal to the district court.

553.11 	Sec. 58. Minnesota Statutes 2024, section 256G.10, is amended to read:
553.12 	256G.10 DERIVATIVE SETTLEMENT.
553.13 	(a) The residence of the parent of a minor child, with whom that child last lived in a 
553.14 	nonexcluded time setting, or guardian of a ward shall determine the residence of the child 
553.15 	or ward for all social services governed by this chapter.
553.16 	(b) For purposes of this chapter, a minor child is defined as being under 18 years of age 
553.17 	unless otherwise specified in a program administered by the commissioner of human services; 
553.18 	the commissioner of children, youth, and families; or the Direct Care and Treatment executive 
553.19 	board.
553.20 	(c) Physical or legal custody has no bearing on residence determinations. This section 
553.21 	does not, however, apply to situations involving another state, limit the application of an 
553.22 	interstate compact, or apply to situations involving state wards where the commissioner of 
553.23 	human services or children, youth, and families is defined by law as the guardian.

553.24 	Sec. 59. Minnesota Statutes 2024, section 256G.11, is amended to read:
553.25 	256G.11 NO RETROACTIVE EFFECT.
553.26 	(a) This chapter is not retroactive and does not require redetermination of financial 
553.27 	responsibility for cases existing on January 1, 1988. This chapter applies only to applications 
553.28 	and redeterminations of eligibility taken or routinely made after January 1, 1988.
553.29 	(b) Notwithstanding this section, existing social services cases shall be treated in the 
553.30 	same manner as cases for those programs outlined in section 256G.02, subdivision 4, 
554.1 	paragraph (g), for which an application is taken or a redetermination is made after January 
554.2 	1, 1988.
554.3 	(c) The requirement under section 256G.09, subdivision 3, for the Direct Care and 
554.4 	Treatment executive board or the commissioner of children, youth, and families to accept 
554.5 	or reject the recommendation of the commissioner of humans services regarding the county 
554.6 	of financial responsibility for matters solely under the jurisdiction of the executive board
554.7 	or the commissioner of children, youth, and families is not retroactive and does not require 
554.8 	redetermination of financial responsibility for cases existing prior to the effective date of 
554.9 	the transfer of all authorities and responsibilities from the Department of Human Services 
554.10 	to Direct Care and Treatment.
554.11 	(d) Notwithstanding paragraph (c), existing cases relating to matters under the jurisdiction 
554.12 	of the executive board must be treated in the same manner as cases relating to matters under 
554.13 	the jurisdiction of the executive board opened or redetermined after the effective date of 
554.14 	the transfer of all authorities and responsibilities from the Department of Human Services 
554.15 	to Direct Care and Treatment or the Department of Children, Youth, and Families.

554.16 	Sec. 60. Minnesota Statutes 2024, section 256G.12, subdivision 1, is amended to read:
554.17 		Subdivision 1.Limitation. A submission to the commissioner of human services; the 
554.18 	commissioner of children, youth, and families; or the Direct Care and Treatment executive 
554.19 	board for a determination of financial responsibility must be made within three years from 
554.20 	the date of application for the program in question or from the date of admission or 
554.21 	commitment to state or other institutions.

554.22 	Sec. 61. Minnesota Statutes 2024, section 260.762, subdivision 2a, is amended to read:
554.23 		Subd. 2a.Required findings that active efforts were provided. (a) A court shall not 
554.24 	order a child placement, termination of parental rights, guardianship to the commissioner 
554.25 	of children, youth, and families under section 260C.325, or temporary or permanent change 
554.26 	in custody of an Indian child unless the court finds that the child-placing agency or petitioner 
554.27 	demonstrated that active efforts were made to preserve the Indian child's family. Active 
554.28 	efforts to preserve the Indian child's family include efforts to prevent placement of the Indian 
554.29 	child to correct the conditions that led to the placement by ensuring remedial services and 
554.30 	rehabilitative programs designed to prevent the breakup of the family were provided in a 
554.31 	manner consistent with the prevailing social and cultural conditions of the Indian child's 
554.32 	Tribe and in partnership with the Indian child, the Indian child's parents, the Indian custodian, 
554.33 	extended family members, and Tribe, and that these efforts have proved unsuccessful.
555.1 	(b) The court, in determining whether active efforts were made to preserve the Indian 
555.2 	child's family for purposes of child placement or permanency, shall ensure the provision of 
555.3 	active efforts designed to correct the conditions that led to the placement of the Indian child 
555.4 	and shall make findings regarding whether the following activities were appropriate and 
555.5 	necessary, and whether the child-placing agency or petitioner ensured appropriate and 
555.6 	meaningful services were available based upon the family's specific needs, whether listed 
555.7 	in this paragraph or not:
555.8 	(1) whether active efforts were made at the earliest point possible to inquire into the 
555.9 	child's heritage, to identify any federally recognized Indian Tribe the child may be affiliated 
555.10 	with, to notify all potential Tribes at the earliest point possible, and to request participation 
555.11 	of the Indian child's Tribe;
555.12 	(2) whether a Tribally designated representative with substantial knowledge of the 
555.13 	prevailing social and cultural standards and child-rearing practices within the Tribal 
555.14 	community was provided an opportunity to consult with and be involved in any investigations 
555.15 	or assessments of the family's circumstances, participate in identifying the family's needs, 
555.16 	and participate in development of any plan to keep the Indian child safely in the home, 
555.17 	identify services designed to prevent the breakup of the Indian child's family, and to reunify 
555.18 	the Indian child's family as soon as safety can be assured if out-of-home placement has 
555.19 	occurred;
555.20 	(3) whether the Tribal representative was provided with all information available 
555.21 	regarding the proceeding, and whether it was requested that the Tribal representative assist 
555.22 	in identifying services designed to prevent the breakup of the Indian child's family and to 
555.23 	reunify the Indian child's family as soon as safety can be assured if out-of-home placement 
555.24 	has occurred;
555.25 	(4) whether, before making a decision that may affect an Indian child's safety and 
555.26 	well-being or when contemplating placement of an Indian child, guidance from the Indian 
555.27 	child's Tribe was sought regarding family structure, how the family can seek help, what 
555.28 	family and Tribal resources are available, and what barriers the family faces that could 
555.29 	threaten the family's preservation;
555.30 	(5) whether a Tribal representative was consulted to determine and arrange for visitation 
555.31 	in the most natural setting that ensures the Indian child's safety, when the Indian child's 
555.32 	safety requires supervised visitation;
555.33 	(6) whether early and ongoing efforts occurred to identify, locate, and include extended 
555.34 	family members as supports for the Indian child and the Indian child's family;
556.1 	(7) whether continued active efforts were made to identify and place the Indian child in 
556.2 	a home that is compliant with the placement preferences in sections 260.751 to 260.835, 
556.3 	including whether extended family members were consulted to provide support to the Indian 
556.4 	child and Indian child's parents; to inform the child-placing agency, petitioner, and court 
556.5 	as to cultural connections and family structure; to assist in identifying appropriate cultural 
556.6 	services and supports for the Indian child and Indian child's parents; and to identify and 
556.7 	serve as placement and permanency resources for the Indian child. If there was difficulty 
556.8 	contacting or engaging extended family members, whether assistance was sought from the 
556.9 	Tribe,; the Department of Human Services,; the Department of Children, Youth, and Families;
556.10 	or other agencies with expertise in working with Indian families;
556.11 	(8) whether services and resources were provided to extended family members who are 
556.12 	considered the primary placement option for an Indian child, as agreed upon by the 
556.13 	child-placing agency or petitioner and the Tribe, to overcome licensing and other barriers 
556.14 	to providing care to an Indian child. The need for services or resources shall not be a basis 
556.15 	to exclude an extended family member from consideration as a primary placement. Services 
556.16 	and resources include but are not limited to child care assistance, financial assistance, 
556.17 	housing resources, emergency resources, and foster care licensing assistance and resources;
556.18 	(9) whether concrete services and access to both Tribal and non-Tribal services were 
556.19 	provided to the Indian child's parents and Indian custodian and, where necessary, members 
556.20 	of the Indian child's extended family members who provide support to the Indian child and 
556.21 	the Indian child's parents; and whether these services were provided in an ongoing manner 
556.22 	throughout the child-placing agency or petitioner's involvement with the Indian family to 
556.23 	directly assist the Indian family in accessing and utilizing services to maintain the Indian 
556.24 	family, or to reunify the Indian family as soon as safety can be assured if out-of-home 
556.25 	placement has occurred. Services include but are not limited to financial assistance, food, 
556.26 	housing, health care, transportation, in-home services, community support services, and 
556.27 	specialized services; and
556.28 	(10) whether visitation occurred whenever possible in the home of the Indian child's 
556.29 	parent, Indian custodian, or extended family member or in another noninstitutional setting 
556.30 	in order to keep the Indian child in close contact with the Indian child's parents, siblings, 
556.31 	and other relatives regardless of the Indian child's age and to allow the Indian child and 
556.32 	those with whom the Indian child visits to have natural, unsupervised interaction when 
556.33 	consistent with protecting the child's safety.

557.1 	Sec. 62. Minnesota Statutes 2024, section 260B.171, subdivision 4, is amended to read:
557.2 		Subd. 4.Public inspection of records. (a) Legal records arising from proceedings or 
557.3 	portions of proceedings that are public under section 260B.163, subdivision 1, are open to 
557.4 	public inspection.
557.5 	(b) Except as otherwise provided by this section, none of the records of the juvenile 
557.6 	court and none of the records relating to an appeal from a nonpublic juvenile court 
557.7 	proceeding, except the written appellate opinion, shall be open to public inspection or their 
557.8 	contents disclosed except:
557.9 	(1) by order of a court; or
557.10 	(2) as required by chapter 245C or sections 142B.10,245A.04, 611A.03, 611A.04, 
557.11 	611A.06, and 629.73.
557.12 	(c) The victim of any alleged delinquent act may, upon the victim's request, obtain the 
557.13 	following information, unless it reasonably appears that the request is prompted by a desire 
557.14 	on the part of the requester to engage in unlawful activities:
557.15 	(1) the name and age of the juvenile;
557.16 	(2) the act for which the juvenile was petitioned and date of the offense; and
557.17 	(3) the disposition, including, but not limited to, dismissal of the petition, diversion, 
557.18 	probation and conditions of probation, detention, fines, or restitution.
557.19 	(d) The records of juvenile probation officers and county home schools are records of 
557.20 	the court for the purposes of this subdivision. Court services data relating to delinquent acts 
557.21 	that are contained in records of the juvenile court may be released as allowed under section 
557.22 	13.84, subdivision 6. This subdivision applies to all proceedings under this chapter, including 
557.23 	appeals from orders of the juvenile court, except that this subdivision does not apply to 
557.24 	proceedings under section 260B.335 or 260B.425 when the proceeding involves an adult 
557.25 	defendant. The court shall maintain the confidentiality of adoption files and records in 
557.26 	accordance with the provisions of laws relating to adoptions. In juvenile court proceedings 
557.27 	any report or social history furnished to the court shall be open to inspection by the attorneys 
557.28 	of record and the guardian ad litem a reasonable time before it is used in connection with 
557.29 	any proceeding before the court.
557.30 	(e) When a judge of a juvenile court, or duly authorized agent of the court, determines 
557.31 	under a proceeding under this chapter that a child has violated a state or local law, ordinance, 
557.32 	or regulation pertaining to the operation of a motor vehicle on streets and highways, except 
557.33 	parking violations, the judge or agent shall immediately report the violation to the 
558.1 	commissioner of public safety. The report must be made on a form provided by the 
558.2 	Department of Public Safety and must contain the information required under section 169.95.
558.3 	(f) A county attorney may give a law enforcement agency that referred a delinquency 
558.4 	matter to the county attorney a summary of the results of that referral, including the details 
558.5 	of any juvenile court disposition.

558.6 	Sec. 63. Minnesota Statutes 2024, section 260E.03, subdivision 6, is amended to read:
558.7 		Subd. 6.Facility. "Facility" means:
558.8 	(1) a licensed or unlicensed day care facility, certified license-exempt child care center, 
558.9 	residential facility, agency, hospital, sanitarium, or other facility or institution required to 
558.10 	be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter
558.11 	142B,142C, 144H, or 245D;
558.12 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; 
558.13 	or
558.14 	(3) a nonlicensed personal care provider organization as defined in section 256B.0625, 
558.15 	subdivision 19a.

558.16 	Sec. 64. Minnesota Statutes 2024, section 260E.11, subdivision 1, is amended to read:
558.17 		Subdivision 1.Reports of maltreatment in facility. A person mandated to report child 
558.18 	maltreatment occurring within a licensed facility shall report the information to the agency 
558.19 	responsible for licensing or certifying the facility under sections 144.50 to 144.58, 241.021, 
558.20 	and 245A.01 to 245A.16; or chapter 142B,142C, 144H, or 245D; or to a nonlicensed 
558.21 	personal care provider organization as defined in section 256B.0625, subdivision 19a.

558.22 	Sec. 65. Minnesota Statutes 2024, section 260E.30, subdivision 4, is amended to read:
558.23 		Subd. 4.Mitigating factors in investigating facilities. (a) When determining whether 
558.24 	the facility or individual is the responsible party or whether both the facility and the individual 
558.25 	are responsible for determined maltreatment in a facility, the investigating agency shall 
558.26 	consider at least the following mitigating factors:
558.27 	(1) whether the actions of the facility or the individual caregivers were according to, 
558.28 	and followed the terms of, an erroneous physician order, prescription, individual care plan, 
558.29 	or directive; however, this is not a mitigating factor when the facility or caregiver was 
558.30 	responsible for the issuance of the erroneous order, prescription, individual care plan, or 
559.1 	directive or knew or should have known of the errors and took no reasonable measures to 
559.2 	correct the defect before administering care;
559.3 	(2) comparative responsibility between the facility, other caregivers, and requirements 
559.4 	placed upon an employee, including the facility's compliance with related regulatory standards 
559.5 	and the adequacy of facility policies and procedures, facility training, an individual's 
559.6 	participation in the training, the caregiver's supervision, and facility staffing levels and the 
559.7 	scope of the individual employee's authority and discretion; and
559.8 	(3) whether the facility or individual followed professional standards in exercising 
559.9 	professional judgment.
559.10 	(b) The evaluation of the facility's responsibility under paragraph (a), clause (2), must 
559.11 	not be based on the completeness of the risk assessment or risk reduction plan required 
559.12 	under section 245A.66 142B.54, but must be based on the facility's compliance with the 
559.13 	regulatory standards for policies and procedures, training, and supervision as cited in 
559.14 	Minnesota Statutes and Minnesota Rules.
559.15 	(c) Notwithstanding paragraphs (a) and (b), when maltreatment is determined to have 
559.16 	been committed by an individual who is also the facility license holder, both the individual 
559.17 	and the facility must be determined responsible for the maltreatment, and both the background 
559.18 	study disqualification standards under section 245C.15, subdivision 4, and the licensing or 
559.19 	certification actions under section 142B.16, 142B.18, 142C.06, 142C.07, 245A.06, or 
559.20 	245A.07 apply.

559.21 	Sec. 66. Minnesota Statutes 2024, section 260E.33, subdivision 6, is amended to read:
559.22 		Subd. 6.Contested case hearing. If a maltreatment determination or a disqualification 
559.23 	based on serious or recurring maltreatment is the basis for a denial of a license under section
559.24 	142B.15 or245A.05 or a licensing sanction under section 142B.18 or245A.07, the license 
559.25 	holder has the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
559.26 	1400.8505 to 1400.8612. As provided for under section 142B.20, subdivision 3, or245A.08, 
559.27 	subdivision 2a, the scope of the contested case hearing shall include the maltreatment 
559.28 	determination, disqualification, and licensing sanction or denial of a license. In such cases, 
559.29 	a fair hearing regarding the maltreatment determination and disqualification shall not be 
559.30 	conducted under section 256.045. Except for family child care and child foster care, 
559.31 	reconsideration of a maltreatment determination as provided under this subdivision and 
559.32 	reconsideration of a disqualification as provided under section 245C.22 shall also not be 
559.33 	conducted when:
560.1 	(1) a denial of a license under section 142B.15 or245A.05 or a licensing sanction under 
560.2 	section 142B.18 or245A.07 is based on a determination that the license holder is responsible 
560.3 	for maltreatment or the disqualification of a license holder based on serious or recurring 
560.4 	maltreatment;
560.5 	(2) the denial of a license or licensing sanction is issued at the same time as the 
560.6 	maltreatment determination or disqualification; and
560.7 	(3) the license holder appeals the maltreatment determination or disqualification and 
560.8 	denial of a license or licensing sanction.
560.9 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
560.10 	determination or disqualification but does not appeal the denial of a license or a licensing 
560.11 	sanction, reconsideration of the maltreatment determination shall be conducted under 
560.12 	subdivision 2 and section 626.557, subdivision 9d, and reconsideration of the disqualification 
560.13 	shall be conducted under section 245C.22. In such cases, a fair hearing shall also be 
560.14 	conducted as provided under subdivision 2 and sections 245C.27 and 626.557, subdivision 
560.15 	9d.
560.16 	If the disqualified subject is an individual other than the license holder and upon whom 
560.17 	a background study must be conducted under chapter 245C, the hearings of all parties may 
560.18 	be consolidated into a single contested case hearing upon consent of all parties and the 
560.19 	administrative law judge.

560.20 	Sec. 67. Minnesota Statutes 2024, section 261.232, is amended to read:
560.21 	261.232 DUTIES OF COMMISSIONER COMMISSIONERS OF HUMAN 
560.22 	SERVICES AND CHILDREN, YOUTH, AND FAMILIES.
560.23 	The commissioner commissioners of human services and children, youth, and families
560.24 	shall promulgate rules to establish administrative and fiscal procedures for payment of the 
560.25 	state share of the costs incurred by the counties under sections 261.21 to 261.231. The rules 
560.26 	may include:
560.27 	(a) procedures by which state liability for the costs of hospitalization of indigent persons 
560.28 	may be deducted from county liability to the state under any other public assistance program 
560.29 	authorized by law;
560.30 	(b) procedures for processing claims of counties for reimbursement by the state for 
560.31 	expenditures made by the counties for the hospitalization of indigent persons; and
560.32 	(c) standards for eligibility and utilization of medical care.

561.1 	Sec. 68. Minnesota Statutes 2024, section 270B.14, subdivision 1, is amended to read:
561.2 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
561.3 	the commissioner of human services, the commissioner shall disclose return information 
561.4 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
561.5 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
561.6 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
561.7 	employment, income, and property of a person owing or alleged to be owing an obligation 
561.8 	of child support.
561.9 	(c) The commissioner of human services may request data only for the purposes of 
561.10 	carrying out the child support enforcement program and to assist in the location of parents 
561.11 	who have, or appear to have, deserted their children. Data received may be used only as set 
561.12 	forth in section 518A.83.
561.13 	(d) (a) The commissioner shall provide the records and information necessary to 
561.14 	administer the supplemental housing allowance to the commissioner of human services.
561.15 	(e) (b) At the request of the commissioner of human services, the commissioner of 
561.16 	revenue shall electronically match the Social Security or individual taxpayer identification 
561.17 	numbers and names of participants in the telephone assistance plan operated under sections 
561.18 	237.69 to 237.71, with those of property tax refund filers under chapter 290A or renter's 
561.19 	credit filers under section 290.0693, and determine whether each participant's household 
561.20 	income is within the eligibility standards for the telephone assistance plan.
561.21 	(f) (c) The commissioner may provide records and information collected under sections 
561.22 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
561.23 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
561.24 	102-234. Upon the written agreement by the United States Department of Health and Human 
561.25 	Services to maintain the confidentiality of the data, the commissioner may provide records 
561.26 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
561.27 	Medicaid Services section of the United States Department of Health and Human Services 
561.28 	for purposes of meeting federal reporting requirements.
561.29 	(g) (d) The commissioner may provide records and information to the commissioner of 
561.30 	human services as necessary to administer the early refund of refundable tax credits.
561.31 	(h) (e) The commissioner may disclose information to the commissioner of human 
561.32 	services as necessary for income verification for eligibility and premium payment under 
562.1 	the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
562.2 	assistance program under chapter 256B.
562.3 	(i) (f) The commissioner may disclose information to the commissioner of human services 
562.4 	necessary to verify whether applicants or recipients for the Minnesota family investment 
562.5 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), and 
562.6 	the Minnesota supplemental aid program, and child care assistance have claimed refundable 
562.7 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
562.8 	amounts of the credits.
562.9 	(j) (g) At the request of the commissioner of human services and when authorized in 
562.10 	writing by the taxpayer, the commissioner of revenue may match the business legal name 
562.11 	or individual legal name, and the Minnesota tax identification number, federal Employer 
562.12 	Identification Number, or Social Security number of the applicant under section 142C.03; 
562.13 	245A.04, subdivision 1; or 245I.20; or license or certification holder. The commissioner of 
562.14 	revenue may share the matching with the commissioner of human services. The matching 
562.15 	may only be used by the commissioner of human services to determine eligibility for provider 
562.16 	grant programs and to facilitate the regulatory oversight of license and certification holders 
562.17 	as it relates to ownership and public funds program integrity. This paragraph applies only 
562.18 	if the commissioner of human services and the commissioner of revenue enter into an 
562.19 	interagency agreement for the purposes of this paragraph.

562.20 	Sec. 69. Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision 
562.21 	to read:
562.22 		Subd. 24.Disclosure to commissioner of children, youth, and families.  (a) On the 
562.23 	request of the commissioner of children, youth, and families, the commissioner shall disclose 
562.24 	return information regarding taxes imposed by chapter 290, and claims for refunds under 
562.25 	chapter 290A, to the extent provided in paragraph (b) and for the purposes set forth in 
562.26 	paragraph (c).
562.27 	(b) Data may be disclosed relating to the identity, whereabouts, employment, income, 
562.28 	and property of a person owing or alleged to be owing an obligation of child support.
562.29 	(c) The commissioner of children, youth, and families may request data for the purposes 
562.30 	of carrying out the child support program and to assist in the location of parents who have, 
562.31 	or appear to have, deserted their children. Data received may be used only as set forth in 
562.32 	section 518A.83.
563.1 	(d) The commissioner may disclose information to the commissioner of children, youth, 
563.2 	and families necessary to verify whether applicants or recipients for the Minnesota family 
563.3 	investment program, the Supplemental Nutrition Assistance Program, and child care 
563.4 	assistance have claimed refundable tax credits under chapter 290 and the property tax refund 
563.5 	under chapter 290A, and the amounts of the credits.

563.6 	Sec. 70. Minnesota Statutes 2024, section 299C.76, subdivision 1, is amended to read:
563.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the following definitions 
563.8 	apply.
563.9 	(b) "Federal tax information" means federal tax returns and return information or 
563.10 	information derived or created from federal tax returns, in possession of or control by the 
563.11 	requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of 
563.12 	the Internal Revenue Code.
563.13 	(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that 
563.14 	provides guidance and requirements for the protection and confidentiality of federal tax 
563.15 	information as required in section 6103(p)(4) of the Internal Revenue Code.
563.16 	(d) "National criminal history record information" means the Federal Bureau of 
563.17 	Investigation identification records as defined in Code of Federal Regulations, title 28, 
563.18 	section 20.3(d).
563.19 	(e) "Requesting agency" means the Department of Revenue,; Department of Employment 
563.20 	and Economic Development,; Department of Human Services; Department of Children, 
563.21 	Youth, and Families,; board of directors of MNsure,; Department of Information Technology 
563.22 	Services,; attorney general,; and counties.

563.23 	Sec. 71. Minnesota Statutes 2024, section 299F.011, subdivision 4a, is amended to read:
563.24 		Subd. 4a.Day care home regulation. (a) Notwithstanding any contrary provision of 
563.25 	this section, the fire marshal shall not adopt or enforce a rule:
563.26 	(1) establishing staff ratios, age distribution requirements, and limitations on the number 
563.27 	of children in care;
563.28 	(2) regulating the means of egress from family or group family day care homes in addition 
563.29 	to the egress rules that apply to the home as a single family dwelling; or
563.30 	(3) confining family or group family day care home activities to the floor of exit 
563.31 	discharge.
564.1 	(b) For purposes of this subdivision, "family or group family day care home" means a 
564.2 	dwelling unit in which the day care provider provides the services referred to in section 
564.3 	142B.01, subdivision 18, to one or more persons.
564.4 	(c) Nothing in this subdivision prohibits the Department of Children, Youth, and Families 
564.5 	from adopting or enforcing rules regulating day care, including the subjects in paragraph 
564.6 	(a), clauses (1) and (3). The department may not, however, adopt or enforce a rule stricter 
564.7 	than paragraph (a), clause (2).
564.8 	(d) The Department of Human Services Children, Youth, and Families may by rule adopt 
564.9 	procedures for requesting the state fire marshal or a local fire marshal to conduct an 
564.10 	inspection of day care homes to ensure compliance with state or local fire codes.
564.11 	(e) The commissioners of public safety; children, youth, and families; and human services 
564.12 	may enter into an agreement for the commissioner commissioners of human services and 
564.13 	children, youth, and families to perform follow-up inspections of programs, subject to 
564.14 	licensure under chapter 142B or 245A, to determine whether certain violations cited by the 
564.15 	state fire marshal have been corrected. The agreement shall identify specific items the 
564.16 	commissioner of human services is permitted to inspect. The list of items is not subject to 
564.17 	rulemaking and may be changed by mutual agreement between the state fire marshal and 
564.18 	the commissioner. The agreement shall provide for training of individuals who will conduct 
564.19 	follow-up inspections. The agreement shall contain procedures for the commissioner of 
564.20 	human services to follow when the commissioner requires assistance from the state fire 
564.21 	marshal to carry out the duties of the agreement.
564.22 	(f) No tort liability is transferred to the commissioner of human services or the 
564.23 	commissioner of children, youth, and families as a result of the commissioner of human 
564.24 	services commissioners performing activities within the limits of the agreement.

564.25 	Sec. 72. Minnesota Statutes 2024, section 402A.10, subdivision 1a, is amended to read:
564.26 		Subd. 1a.Balanced set of program measures. A "balanced set of program measures" 
564.27 	is a set of measures that, together, adequately quantify achievement toward a particular 
564.28 	program's outcome. As directed by section 402A.16, the Human Services Performance 
564.29 	Council must recommend to the commissioner when who oversees a particular program
564.30 	when the program has a balanced set of program measures.

565.1 	Sec. 73. Minnesota Statutes 2024, section 402A.10, subdivision 2, is amended to read:
565.2 		Subd. 2.Commissioner Commissioners. "Commissioner" "Commissioners" means the 
565.3 	commissioner commissioners of human services and children, youth, and families.

565.4 	Sec. 74. Minnesota Statutes 2024, section 402A.10, subdivision 4c, is amended to read:
565.5 		Subd. 4c.Performance improvement plan. A "performance improvement plan" means 
565.6 	a plan developed by a county or service delivery authority that describes steps the county 
565.7 	or service delivery authority must take to improve performance on a specific measure or 
565.8 	set of measures. The performance improvement plan must be negotiated with and approved 
565.9 	by the each commissioner who oversees a program affected by the plan. The performance 
565.10 	improvement plan must require a specific numerical improvement in the measure or measures 
565.11 	on which the plan is based and may include specific programmatic best practices or specific 
565.12 	performance management practices that the county must implement.

565.13 	Sec. 75. Minnesota Statutes 2024, section 402A.12, is amended to read:
565.14 	402A.12 ESTABLISHMENT OF A PERFORMANCE MANAGEMENT SYSTEM 
565.15 	FOR HUMAN SERVICES.
565.16 	By January 1, 2014, the commissioner of human services shall implement a performance 
565.17 	management system for essential human services as described in sections 402A.16 and 
565.18 	402A.18 that includes initial performance measures and thresholds consistent with the 
565.19 	recommendations of the Steering Committee on Performance and Outcome Reforms in the 
565.20 	December 2012 report to the legislature.

565.21 	Sec. 76. Minnesota Statutes 2024, section 402A.16, subdivision 1, is amended to read:
565.22 		Subdivision 1.Establishment. By October 1, 2013, the commissioner of human services
565.23 	shall convene a Human Services Performance Council to advise the commissioner of human 
565.24 	services on the implementation and operation of the performance management system for 
565.25 	human services.

565.26 	Sec. 77. Minnesota Statutes 2024, section 402A.16, subdivision 2, is amended to read:
565.27 		Subd. 2.Duties. The Human Services Performance Council shall:
565.28 	(1) hold meetings at least quarterly that are in compliance with Minnesota's Open Meeting 
565.29 	Law under chapter 13D;
566.1 	(2) annually review the annual performance data submitted by counties or service delivery 
566.2 	authorities;
566.3 	(3) review and advise the commissioner commissioners on department procedures related 
566.4 	to the implementation of the performance management system and system process 
566.5 	requirements and on barriers to process improvement in human services delivery;
566.6 	(4) advise the commissioner commissioners on the training and technical assistance 
566.7 	needs of county or service delivery authority and department personnel;
566.8 	(5) review instances in which a county or service delivery authority has not made adequate 
566.9 	progress on a performance improvement plan and make recommendations to the 
566.10 	commissioner commissioners under section 402A.18;
566.11 	(6) consider appeals from counties or service delivery authorities that are in the remedies 
566.12 	process and make recommendations to the commissioner commissioners on resolving the 
566.13 	issue;
566.14 	(7) convene working groups to update and develop outcomes, measures, and performance 
566.15 	thresholds for the performance management system and, on an annual basis, present these 
566.16 	recommendations to the commissioner commissioners, including recommendations on when 
566.17 	a particular essential human services program has a balanced set of program measures in 
566.18 	place;
566.19 	(8) make recommendations on human services administrative rules or statutes that could 
566.20 	be repealed in order to improve service delivery; and
566.21 	(9) provide information to stakeholders on the council's role and regularly collect 
566.22 	stakeholder input on performance management system performance.

566.23 	Sec. 78. Minnesota Statutes 2024, section 402A.16, subdivision 3, is amended to read:
566.24 		Subd. 3.Membership. (a) Human Services Performance Council membership shall be 
566.25 	equally balanced among the following five stakeholder groups: the Association of Minnesota 
566.26 	Counties,; the Minnesota Association of County Social Service Administrators,; the 
566.27 	Department of Human Services, and the Department of Children, Youth, and Families, 
566.28 	jointly; tribes and communities of color,; and service providers and advocates for persons 
566.29 	receiving human services. The Association of Minnesota Counties and the Minnesota 
566.30 	Association of County Social Service Administrators shall appoint their own respective 
566.31 	representatives. The commissioner of human services commissioners shall each appoint
566.32 	two representatives of the Department of Human Services, their respective department. The 
566.33 	commissioners shall each appoint two representatives from (1) tribes and communities of 
567.1 	color, and (2) social services providers and advocates. Minimum Council membership shall 
567.2 	be 15 20 members, with at least three four representatives from each nondepartmental 
567.3 	stakeholder group, and maximum council membership shall be 20 members, with four 
567.4 	representatives from each stakeholder group.
567.5 	(b) Notwithstanding section 15.059, Human Services Performance Council members 
567.6 	shall be appointed for a minimum of two years, but may serve longer terms at the discretion 
567.7 	of their appointing authority.
567.8 	(c) Notwithstanding section 15.059, members of the council shall receive no compensation 
567.9 	for their services.
567.10 	(d) A commissioner's representative from each commissioner and a county representative 
567.11 	from either the Association of Minnesota Counties or the Minnesota Association of County 
567.12 	Social Service Administrators shall serve as Human Services Performance Council cochairs.

567.13 	Sec. 79. Minnesota Statutes 2024, section 402A.16, subdivision 4, is amended to read:
567.14 		Subd. 4.Commissioner Commissioners' duties. For essential human services 
567.15 	administered by each agency, the commissioner commissioners shall:
567.16 	(1) implement and maintain the performance management system for human services;
567.17 	(2) establish and regularly update the system's outcomes, measures, and thresholds, 
567.18 	including the minimum performance threshold for each performance measure;
567.19 	(3) determine when a particular program has a balanced set of measures;
567.20 	(4) receive reports from counties or service delivery authorities at least annually on their 
567.21 	performance against system measures, provide counties with data needed to assess 
567.22 	performance and monitor progress, and provide timely feedback to counties or service 
567.23 	delivery authorities on their performance;
567.24 	(5) implement and monitor the remedies process in section 402A.18;
567.25 	(6) report to the Human Services Performance Council on county or service delivery 
567.26 	authority performance on a semiannual basis;
567.27 	(7) provide general training and technical assistance to counties or service delivery 
567.28 	authorities on topics related to performance measurement and performance improvement;
567.29 	(8) provide targeted training and technical assistance to counties or service delivery 
567.30 	authorities that supports their performance improvement plans; and
567.31 	(9) provide staff support for the Human Services Performance Council.

568.1 	Sec. 80. Minnesota Statutes 2024, section 402A.18, subdivision 2, is amended to read:
568.2 		Subd. 2.Underperforming county; more than one-half of services. If the commissioner 
568.3 	determines commissioners determine that a county or service delivery authority is deficient 
568.4 	in achieving minimum performance thresholds for more than one-half of the defined essential 
568.5 	human services programs, the commissioner commissioners may impose the following 
568.6 	remedies:
568.7 	(1) voluntary incorporation of the administration and operation of essential human 
568.8 	services programs with an existing service delivery authority or another county. A service 
568.9 	delivery authority or county incorporating an underperforming county shall not be financially 
568.10 	liable for the costs associated with remedying performance outcome deficiencies;
568.11 	(2) mandatory incorporation of the administration and operation of essential human 
568.12 	services programs with an existing service delivery authority or another county. A service 
568.13 	delivery authority or county incorporating an underperforming county shall not be financially 
568.14 	liable for the costs associated with remedying performance outcome deficiencies; or
568.15 	(3) transfer of authority for administration and operation of essential human services 
568.16 	programs to the commissioner that oversees each program.

568.17 	Sec. 81. Minnesota Statutes 2024, section 402A.18, subdivision 3, is amended to read:
568.18 		Subd. 3.Conditions prior to imposing remedies. (a) The commissioner shall notify a 
568.19 	county or service delivery authority that it must submit a performance improvement plan 
568.20 	if:
568.21 	(1) the county or service delivery authority does not meet the minimum performance 
568.22 	threshold for a measure; or
568.23 	(2) the county or service delivery authority has a performance disparity for a racial or 
568.24 	ethnic subgroup, even if the county or service delivery authority met the threshold for the 
568.25 	overall population. The council shall make recommendations on performance disparities, 
568.26 	and the commissioner shall make the final determination.
568.27 	(b) When the department commissioner determines that a county or service delivery 
568.28 	authority does not meet the minimum performance threshold for a given measure, the 
568.29 	commissioner must advise the county or service delivery authority that fiscal penalties may 
568.30 	result if the performance does not improve. The department commissioner must offer 
568.31 	technical assistance to the county or service delivery authority. Within 30 days of the initial 
568.32 	advisement from the department commissioner, the county or service delivery authority 
568.33 	may claim and the department commissioner may approve an extenuating circumstance 
569.1 	that relieves the county or service delivery authority of any further remedy. If a county or 
569.2 	service delivery authority has a small number of participants in an essential human services 
569.3 	program such that reliable measurement is not possible, the commissioner may approve 
569.4 	extenuating circumstances.
569.5 	(c) If there are no extenuating circumstances, the county or service delivery authority 
569.6 	must submit a performance improvement plan to the commissioner within 60 days of the 
569.7 	initial advisement from the department commissioner. The term of the performance 
569.8 	improvement plan must be two years, starting with the date the plan is approved by the 
569.9 	commissioner. This plan must include a target level for improvement for each measure that 
569.10 	did not meet the minimum performance threshold. The commissioner must approve the 
569.11 	performance improvement plan within 60 days of submittal.
569.12 	(d) The department commissioner must monitor the performance improvement plan for 
569.13 	two years. After two years, if the county or service delivery authority meets the minimum 
569.14 	performance threshold, there is no further remedy. If the county or service delivery authority 
569.15 	fails to meet the minimum performance threshold, but meets the improvement target in the 
569.16 	performance improvement plan, the county or service delivery authority shall modify the 
569.17 	performance improvement plan for further improvement and the department commissioner
569.18 	shall continue to monitor the plan.
569.19 	(e) If, after two years of monitoring, the county or service delivery authority fails to 
569.20 	meet both the minimum performance threshold and the improvement target identified in 
569.21 	the performance improvement plan, the next step of the remedies process shall be invoked 
569.22 	by the commissioner. This phase of the remedies process may include:
569.23 	(1) fiscal penalties for the county or service delivery authority that do not exceed one 
569.24 	percent of the county's human services expenditures and that are negotiated in the 
569.25 	performance improvement plan, based on what is needed to improve outcomes. Counties 
569.26 	or service delivery authorities must reinvest the amount of the fiscal penalty into the essential 
569.27 	human services program that was underperforming. A county or service delivery authority 
569.28 	shall not be required to pay more than three fiscal penalties in a year; and
569.29 	(2) the department's commissioner's provision of technical assistance to the county or 
569.30 	service delivery authority that is targeted to address the specific performance issues.
569.31 	The commissioner shall continue monitoring the performance improvement plan for a third 
569.32 	year.
569.33 	(f) If, after the third year of monitoring, the county or service delivery authority meets 
569.34 	the minimum performance threshold, there is no further remedy. If the county or service 
570.1 	delivery authority fails to meet the minimum performance threshold, but meets the 
570.2 	improvement target for the performance improvement plan, the county or service delivery 
570.3 	authority shall modify the performance improvement plan for further improvement and the 
570.4 	department commissioner shall continue to monitor the plan.
570.5 	(g) If, after the third year of monitoring, the county or service delivery authority fails to 
570.6 	meet the minimum performance threshold and the improvement target identified in the 
570.7 	performance improvement plan, the Human Services Performance Council shall review the 
570.8 	situation and recommend a course of action to the commissioner.
570.9 	(h) If the commissioner has determined that a program has a balanced set of program 
570.10 	measures and a county or service delivery authority is subject to fiscal penalties for more 
570.11 	than one-half of the measures for that program, the commissioner may apply further remedies 
570.12 	as described in subdivisions 1 and 2.

570.13 	Sec. 82. Minnesota Statutes 2024, section 402A.18, is amended by adding a subdivision 
570.14 	to read:
570.15 		Subd. 4.Commissioner jurisdiction. For purposes of this section, "commissioner" 
570.16 	means the commissioner of human services or the commissioner of children, youth, and 
570.17 	families, whichever oversees the program or service at issue. If programs or services overseen 
570.18 	by both commissioners are at issue, commissioner means both commissioners jointly. A 
570.19 	commissioner must not take action under this section for a program or service that the 
570.20 	commissioner does not oversee.

570.21 	Sec. 83. Minnesota Statutes 2024, section 402A.35, subdivision 1, is amended to read:
570.22 		Subdivision 1.Requirements for establishing a service delivery authority. (a) A 
570.23 	county, tribe, or consortium of counties is eligible to establish a service delivery authority 
570.24 	if:
570.25 	(1) the county, tribe, or consortium of counties is:
570.26 	(i) a single county with a population of 55,000 or more;
570.27 	(ii) a consortium of counties with a total combined population of 55,000 or more;
570.28 	(iii) a consortium of four or more counties in reasonable geographic proximity without 
570.29 	regard to population; or
570.30 	(iv) one or more tribes with a total combined population of 25,000 or more.
571.1 	The council may recommend that the commissioner of human services commissioners
571.2 	exempt a single county, tribe, or consortium of counties from the minimum population 
571.3 	standard if the county, tribe, or consortium of counties can demonstrate that it can otherwise 
571.4 	meet the requirements of this chapter.
571.5 	(b) A service delivery authority shall:
571.6 	(1) comply with current state and federal law, including any existing federal or state 
571.7 	performance measures when they are enacted into law, except where waivers are approved 
571.8 	by the commissioner commissioners;
571.9 	(2) define the scope of essential services over which the service delivery authority has 
571.10 	jurisdiction;
571.11 	(3) designate a single administrative structure to oversee the delivery of those services 
571.12 	included in a proposal for a redesigned service or services and identify a single administrative 
571.13 	agent for purposes of contact and communication with the department;
571.14 	(4) identify the waivers from statutory or rule program requirements that are needed to 
571.15 	ensure greater local control and flexibility to determine the most cost-effective means of 
571.16 	achieving specified measurable goals that the participating service delivery authority is 
571.17 	expected to achieve;
571.18 	(5) set forth a reasonable level of targeted reductions in overhead and administrative 
571.19 	costs for each service delivery authority participating in the service delivery redesign;
571.20 	(6) set forth the terms under which a county, tribe, or consortium of counties may 
571.21 	withdraw from participation. In the case of withdrawal of any or all parties or the dissolution 
571.22 	of the service delivery authority, the employees shall continue to be represented by the same 
571.23 	exclusive representative or representatives and continue to be covered by the same collective 
571.24 	bargaining union agreement until a new agreement is negotiated or the collective bargaining 
571.25 	agreement term ends; and
571.26 	(7) set forth a structure for managing the terms and conditions of employment of the 
571.27 	employees as provided in section 402A.40.
571.28 	(c) Once a county, tribe, or consortium of counties establishes a service delivery authority, 
571.29 	no county, tribe, or consortium of counties that is a member of the service delivery authority 
571.30 	may participate as a member of any other service delivery authority. The service delivery 
571.31 	authority may allow an additional county, a tribe, or a consortium of counties to join the 
571.32 	service delivery authority subject to the approval of the council and the commissioner
571.33 	commissioners.
572.1 	(d) Nothing in this chapter precludes local governments from using sections 465.81 and 
572.2 	465.82 to establish procedures for local governments to merge, with the consent of the 
572.3 	voters. Nothing in this chapter limits the authority of a county board or tribal council to 
572.4 	enter into contractual agreements for services not covered by the provisions of a 
572.5 	memorandum of understanding establishing a service delivery authority with other agencies 
572.6 	or with other units of government.

572.7 	Sec. 84. Minnesota Statutes 2024, section 402A.35, subdivision 4, is amended to read:
572.8 		Subd. 4.Process for establishing a service delivery authority. (a) The county, tribe, 
572.9 	or consortium of counties meeting the requirements of this section and proposing to establish 
572.10 	a service delivery authority shall present to the council:
572.11 	(1) in conjunction with the commissioner commissioners, a proposed memorandum of 
572.12 	understanding meeting the requirements of subdivision 1, paragraph (b), and outlining:
572.13 	(i) the details of the proposal;
572.14 	(ii) the state, tribal, and local resources, which may include, but are not limited to, 
572.15 	funding, administrative and technology support, and other requirements necessary for the 
572.16 	service delivery authority; and
572.17 	(iii) the relief available to the service delivery authority if the resource commitments 
572.18 	identified in item (ii) are not met; and
572.19 	(2) a board resolution from the board of commissioners of each participating county 
572.20 	stating the county's intent to participate, or in the case of a tribe, a resolution from tribal 
572.21 	government, stating the tribe's intent to participate.
572.22 	(b) After the council has considered and recommended approval of a proposed 
572.23 	memorandum of understanding, the commissioner commissioners may finalize and execute 
572.24 	the memorandum of understanding.

572.25 	Sec. 85. Minnesota Statutes 2024, section 402A.35, subdivision 5, is amended to read:
572.26 		Subd. 5.Commissioner authority to seek waivers. The commissioner commissioners
572.27 	may use the authority under section 142A.03, subdivision 2, paragraph (k), or256.01, 
572.28 	subdivision 2, paragraph (k), to grant waivers identified as part of a proposed service delivery 
572.29 	authority under subdivision 1, paragraph (b), clause (4), except that waivers granted under 
572.30 	this section must be approved by the council under section 402A.20 rather than the 
572.31 	Legislative Advisory Committee.

573.1 	Sec. 86. Minnesota Statutes 2024, section 462A.2095, subdivision 6, is amended to read:
573.2 		Subd. 6.Rent assistance not income. (a) Notwithstanding any law to the contrary, 
573.3 	payments under this section must not be considered income, assets, or personal property 
573.4 	for purposes of determining eligibility or recertifying eligibility for state public assistance, 
573.5 	including but not limited to:
573.6 	(1) child care assistance programs under chapter 142E;
573.7 	(2) food support under chapter 142F;
573.8 	(2) (3) general assistance, and Minnesota supplemental aid, and food support under 
573.9 	chapter 256D;
573.10 	(3) (4) housing support under chapter 256I;
573.11 	(4) (5) Minnesota family investment program and diversionary work program under 
573.12 	chapter 142G; and
573.13 	(5) (6) economic assistance programs under chapter 256P.
573.14 	(b) The commissioner of human services must not consider rent assistance grant money 
573.15 	under this section as income or assets under section 256B.056, subdivision 1a, paragraph 
573.16 	(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section 
573.17 	256B.057, subdivision 3, 3a, or 3b.

573.18 	Sec. 87. Minnesota Statutes 2024, section 466.131, is amended to read:
573.19 	466.131 INDEMNIFICATION BY STATE.
573.20 	Until July 1, 1987, a municipality is an employee of the state for purposes of the 
573.21 	indemnification provisions of section 3.736, subdivision 9, when the municipality is required 
573.22 	by the Public Welfare Licensing Act and rules promulgated under it to inspect or investigate 
573.23 	a provider. After July 1, 1987, a municipality is an employee of the state for purposes of 
573.24 	the indemnification provisions of section 3.736, subdivision 9, when the municipality is 
573.25 	required by sections 245A.01 to 245A.16, the Human Services Licensing Act, or chapter 
573.26 	142B and rules adopted under it to inspect or investigate a provider, and the municipality 
573.27 	has been duly certified under standards for certification developed by the commissioner
573.28 	commissioners of human services and children, youth, and families.

573.29 	Sec. 88. Minnesota Statutes 2024, section 518.165, subdivision 5, is amended to read:
573.30 		Subd. 5.Procedure, criminal history, and maltreatment records background 
573.31 	study. (a) When the court requests a background study under subdivision 4, paragraph (a), 
574.1 	the request shall be submitted to the Department of Human Services through the department's 
574.2 	electronic online background study system.
574.3 	(b) When the court requests a search of the National Criminal Records Repository, the 
574.4 	court must provide a set of classifiable fingerprints of the subject of the study on a fingerprint 
574.5 	card provided by the commissioner of human services.
574.6 	(c) The commissioner of human services shall provide the court with criminal history 
574.7 	data as defined in section 13.87 from the Bureau of Criminal Apprehension in the Department 
574.8 	of Public Safety, other criminal history data held by the commissioner of human services, 
574.9 	and data regarding substantiated maltreatment of a minor under chapter 260E, and 
574.10 	substantiated maltreatment of a vulnerable adult under section 626.557, within 15 working 
574.11 	days of receipt of a request. If the subject of the study has been determined by the Department 
574.12 	of Human Services; the Department of Children, Youth, and Families; or the Department 
574.13 	of Health to be the perpetrator of substantiated maltreatment of a minor or vulnerable adult 
574.14 	in a licensed facility, the response must include a copy of the public portion of the 
574.15 	investigation memorandum under section 260E.30 or the public portion of the investigation 
574.16 	memorandum under section 626.557, subdivision 12b. When the background study shows 
574.17 	that the subject has been determined by a county adult protection or child protection agency 
574.18 	to have been responsible for maltreatment, the court shall be informed of the county, the 
574.19 	date of the finding, and the nature of the maltreatment that was substantiated. The 
574.20 	commissioner shall provide the court with information from the National Criminal Records 
574.21 	Repository within three working days of the commissioner's receipt of the data. When the 
574.22 	commissioner finds no criminal history or substantiated maltreatment on a background 
574.23 	study subject, the commissioner shall make these results available to the court electronically 
574.24 	through the secure online background study system.
574.25 	(d) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
574.26 	or county lead agency or lead investigative agency has information that a person on whom 
574.27 	a background study was previously done under this section has been determined to be a 
574.28 	perpetrator of maltreatment of a minor or vulnerable adult, the commissioner or the county 
574.29 	may provide this information to the court that requested the background study.

574.30 	Sec. 89. Minnesota Statutes 2024, section 524.5-106, is amended to read:
574.31 	524.5-106 SUBJECT-MATTER JURISDICTION.
574.32 	This article applies to, and the court has jurisdiction over, guardianship and related 
574.33 	proceedings for individuals domiciled or present in this state, protective proceedings for 
574.34 	individuals domiciled in or having property located in this state, and property coming into 
575.1 	the control of a guardian or conservator who is subject to the laws of this state. This article 
575.2 	does not apply to any matters or proceedings arising under or governed by chapters 252A, 
575.3 	259, and 260C. Notwithstanding anything else to the contrary, chapters 252A, 259, and 
575.4 	260C exclusively govern the rights, duties, and powers of social service agencies,; the 
575.5 	commissioner of human services,; the commissioner of children, youth, and families; licensed 
575.6 	child placing agencies,; and parties with respect to all matters and proceedings arising under 
575.7 	those chapters.

575.8 	Sec. 90. Minnesota Statutes 2024, section 524.5-118, subdivision 2, is amended to read:
575.9 		Subd. 2.Procedure; maltreatment and state licensing agency checks and criminal 
575.10 	history check. (a) The guardian or conservator shall request the Bureau of Criminal 
575.11 	Apprehension to complete a criminal history check. The request must be accompanied by 
575.12 	the applicable fee and acknowledgment that the guardian or conservator received a privacy 
575.13 	notice. The Bureau of Criminal Apprehension shall conduct a national criminal history 
575.14 	record check. The guardian or conservator shall submit a set of classifiable fingerprints. 
575.15 	The fingerprints must be recorded on a fingerprint card provided by the Bureau of Criminal 
575.16 	Apprehension.
575.17 	(b) The Bureau of Criminal Apprehension shall provide the court with criminal history 
575.18 	data as defined in section 13.87 and criminal history information from other states or 
575.19 	jurisdictions as indicated from a national criminal history record check within 20 working 
575.20 	days of receipt of a request.
575.21 	(c) In accordance with section 245C.033, the commissioner of human services shall 
575.22 	provide the court with data regarding substantiated maltreatment of vulnerable adults under 
575.23 	section 626.557 and substantiated maltreatment of minors under chapter 260E within 25 
575.24 	working days of receipt of a request. If the guardian or conservator has been the perpetrator 
575.25 	of substantiated maltreatment of a vulnerable adult or minor, the response must include a 
575.26 	copy of any available public portion of the investigation memorandum under section 626.557, 
575.27 	subdivision 12b, or any available public portion of the investigation memorandum under 
575.28 	section 260E.30.
575.29 	(d) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
575.30 	of human services; the commissioner of children, youth, and families; or a county lead 
575.31 	agency or lead investigative agency has information that a person under this section has 
575.32 	been determined to be a perpetrator of maltreatment of a vulnerable adult or minor, the 
575.33 	commissioner or the county may provide this information to the court that is determining 
575.34 	eligibility for the guardian or conservator.

576.1 	Sec. 91. Minnesota Statutes 2024, section 595.02, subdivision 2, is amended to read:
576.2 		Subd. 2.Exceptions. (a) The exception provided by paragraphs (d) and (g) of subdivision 
576.3 	1 shall not apply to any testimony, records, or other evidence relating to the abuse or neglect 
576.4 	of a minor in any proceeding under chapter 260 or any proceeding under section 142B.20 
576.5 	or245A.08, to revoke a day care or foster care license, arising out of the neglect or physical 
576.6 	or sexual abuse of a minor, as defined in section 260E.03.
576.7 	(b) The exception provided by paragraphs (d) and (g) of subdivision 1 shall not apply 
576.8 	to criminal proceedings arising out of the neglect or physical or sexual abuse of a minor, 
576.9 	as defined in section 260E.03, if the court finds that:
576.10 	(1) there is a reasonable likelihood that the records in question will disclose material 
576.11 	information or evidence of substantial value in connection with the investigation or 
576.12 	prosecution; and
576.13 	(2) there is no other practicable way of obtaining the information or evidence. This 
576.14 	clause shall not be construed to prohibit disclosure of the patient record when it supports 
576.15 	the otherwise uncorroborated statements of any material fact by a minor alleged to have 
576.16 	been abused or neglected by the patient; and
576.17 	(3) the actual or potential injury to the patient-health professional relationship in the 
576.18 	treatment program affected, and the actual or potential harm to the ability of the program 
576.19 	to attract and retain patients, is outweighed by the public interest in authorizing the disclosure 
576.20 	sought.
576.21 	No records may be disclosed under this paragraph other than the records of the specific 
576.22 	patient suspected of the neglect or abuse of a minor. Disclosure and dissemination of any 
576.23 	information from a patient record shall be limited under the terms of the order to assure that 
576.24 	no information will be disclosed unnecessarily and that dissemination will be no wider than 
576.25 	necessary for purposes of the investigation or prosecution.

576.26 	Sec. 92. Minnesota Statutes 2024, section 626.5533, is amended to read:
576.27 	626.5533 REPORTING POTENTIAL WELFARE FRAUD.
576.28 		Subdivision 1.Reports required. A peace officer must report to the head of the officer's 
576.29 	department every arrest where the person arrested possesses more than one welfare electronic 
576.30 	benefit transfer card. Each report must include all of the following:
576.31 	(1) the name of the suspect;
576.32 	(2) the suspect's driver's license or state identification card number, where available;
577.1 	(3) the suspect's home address;
577.2 	(4) the number on each card;
577.3 	(5) the name on each electronic benefit card in the possession of the suspect, in cases 
577.4 	where the card has a name printed on it;
577.5 	(6) the date of the alleged offense;
577.6 	(7) the location of the alleged offense;
577.7 	(8) the alleged offense; and
577.8 	(9) any other information the commissioner of human services or the commissioner of 
577.9 	children, youth, and families deems necessary.
577.10 		Subd. 2.Use of information collected. The head of a local law enforcement agency or 
577.11 	state law enforcement department that employs peace officers licensed under section 626.843
577.12 	must forward the report required under subdivision 1 to the commissioner commissioners
577.13 	of human services and children, youth, and families within 30 days of receiving the report. 
577.14 	The commissioner commissioners of human services and children, youth, and families shall 
577.15 	use the report to determine whether the suspect is authorized to possess any of the electronic 
577.16 	benefit cards found in the suspect's possession.
577.17 		Subd. 3.Reporting forms. The commissioner commissioners of human services and 
577.18 	children, youth, and families, in consultation with the superintendent of the Bureau of 
577.19 	Criminal Apprehension, shall adopt reporting forms to be used by law enforcement agencies 
577.20 	in making the reports required under this section.

577.21 	Sec. 93. REVISOR INSTRUCTION.
 577.22 	The revisor of statutes must renumber Minnesota Statutes, section 299A.955, as 
577.23 	Minnesota Statutes, section 142A.765, and make any necessary changes to statutory 
577.24 	cross-references to reflect this change.

577.25 	Sec. 94. REVISOR INSTRUCTION.
 577.26 	The revisor of statutes must move the subdivisions in Minnesota Statutes, section 
577.27 	142E.50, into Minnesota Statutes, section 142E.01, renumber in alphabetical order, and 
577.28 	make any necessary changes to statutory cross-references to reflect these changes.

578.1 	Sec. 95. REPEALER.
 578.2 	Minnesota Statutes 2024, sections 142A.15; 142E.50, subdivisions 2 and 12; 245A.02, 
578.3 	subdivision 6d; 256G.02, subdivisions 3 and 5; and 261.003, are repealed.

578.4 	ARTICLE 22
578.5 	MISCELLANEOUS

578.6 	Section 1. Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
578.7 		Subdivision 1.Administration of plan. (a) The association is Minnesota's reinsurance 
578.8 	entity to administer the state-based reinsurance program referred to as the Minnesota premium 
578.9 	security plan.
578.10 	(b) The association may apply for any available federal funding for the plan. All funds 
578.11 	received by or appropriated to the association shall be deposited in the premium security 
578.12 	plan account in section 62E.25, subdivision 1. The association shall notify the chairs and 
578.13 	ranking minority members of the legislative committees with jurisdiction over health and 
578.14 	human services and insurance within ten days of receiving any federal funds.
578.15 	(c) The association must collect or access data from an eligible health carrier that are 
578.16 	necessary to determine reinsurance payments, according to the data requirements under 
578.17 	subdivision 5, paragraph (c).
578.18 	(d) The board must not use any funds allocated to the plan for staff retreats, promotional 
578.19 	giveaways, excessive executive compensation, or promotion of federal or state legislative 
578.20 	or regulatory changes.
578.21 	(e) For each applicable benefit year, the association must notify eligible health carriers 
578.22 	of reinsurance payments to be made for the applicable benefit year no later than June 30 of 
578.23 	the year following the applicable benefit year.
578.24 	(f) On a quarterly basis during the applicable benefit year, the association must provide 
578.25 	each eligible health carrier with the calculation of total reinsurance payment requests.
578.26 	(g) By August 15 of the year following the applicable benefit year, through August 15, 
578.27 	2026, the association must disburse all applicable reinsurance payments to an eligible health 
578.28 	carrier.
578.29 	(h) The association must disburse applicable reinsurance payments for claims costs 
578.30 	incurred by eligible health carriers through December 31, 2025. Reinsurance payments are 
578.31 	not available to eligible health carriers for claims costs incurred after December 31, 2025.

579.1 	Sec. 2. [62V.15] DEFINITIONS; PREMIUM SUBSIDY PROGRAM.
579.2 		Subdivision 1.Scope. For purposes of sections 62V.15 to 62V.18, the following terms 
579.3 	have the meanings given.
579.4 		Subd. 2.Assessment. "Assessment" means the amount a health plan company must pay 
579.5 	for operational costs, administrative costs, and premium subsidy payments for the premium 
579.6 	subsidy program established under section 62V.16.
579.7 		Subd. 3.Commissioner. "Commissioner" means the commissioner of management and 
579.8 	budget.
579.9 		Subd. 4.Eligible individual. (a) "Eligible individual" means a Minnesota resident who:
579.10 	(1) is not eligible for an advance premium tax credit under Code of Federal Regulations, 
579.11 	title 26, part 1.36B-2, in a month in which the eligible individual's coverage is effective;
579.12 	(2) is not enrolled in public program coverage under chapters 256B and 256L; and
579.13 	(3) purchased an individual health plan, as defined in section 62A.011.
579.14 	(b) "Eligible individual" includes a person required to repay an advanced premium tax 
579.15 	credit because the person's income was subsequently determined to exceed the maximum 
579.16 	permissible amount to qualify as an applicable taxpayer under Code of Federal Regulations, 
579.17 	title 26, part 1.36B-2.
579.18 		Subd. 5.Gross premium. "Gross premium" means the amount billed for a health plan 
579.19 	purchased by an eligible individual prior to a premium subsidy in a calendar year.
579.20 		Subd. 6.Health plan company. "Health plan company" has the meaning given in section 
579.21 	62Q.01.
579.22 		Subd. 7.Net premium. "Net premium" means the gross premium less the premium 
579.23 	subsidy.
579.24 		Subd. 8.Premium subsidy. "Premium subsidy" means a payment (1) made on behalf 
579.25 	of an eligible individual to promote general welfare, and (2) that is not compensation for a 
579.26 	service rendered.

579.27 	Sec. 3. [62V.16] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE 
579.28 	INDIVIDUALS.
579.29 		Subdivision 1.Program established. Beginning January 1, 2026, the board of directors 
579.30 	of MNsure, in consultation with the commissioners of commerce and human services, must 
580.1 	establish and administer the premium subsidy program authorized by this section to help 
580.2 	eligible individuals pay for coverage in the individual market.
580.3 		Subd. 2.Premium subsidy provided. (a) A health carrier must provide a premium 
580.4 	subsidy to each eligible individual who purchases an individual health plan from the health 
580.5 	carrier. The premium subsidy must be provided for each month the net premium is paid. 
580.6 	An eligible individual must pay the net premium amount to the health carrier.
580.7 	(b) Each premium subsidy must be equal to 20 percent of the monthly gross premium 
580.8 	otherwise paid by or on behalf of the eligible individual for coverage purchased in the 
580.9 	individual market that covers the eligible individual and the eligible individual's spouse and 
580.10 	dependents.
580.11 	(c) The premium subsidy must be excluded from a calculation used to determine eligibility 
580.12 	for a Department of Human Services or Department of Children, Youth, and Families 
580.13 	program.
580.14 		Subd. 3.Payments to health carriers. (a) The commissioner must make payments by 
580.15 	September 30 to health carriers on behalf of eligible individuals for the months during the 
580.16 	prior calendar year for which the individual has paid the net premium amount to the health 
580.17 	carrier. The amount of the commissioner's payments to health carriers must be in the amounts 
580.18 	provided to the commissioner by the board under paragraph (c). The commissioner must 
580.19 	not withhold payment because a health carrier cannot prove an enrollee is an eligible 
580.20 	individual.
580.21 	(b) In order to be eligible for payment, a health carrier seeking reimbursement from the 
580.22 	board must submit an invoice and supporting information to the board, using a form 
580.23 	developed by the board. The form must require the health carrier to identify the number of 
580.24 	eligible individuals for which the health carrier is seeking reimbursement, the average gross 
580.25 	premium for eligible individuals, and the aggregate amount of reimbursement claimed by 
580.26 	the health carrier for premium subsidies under this section. The board must finalize the form 
580.27 	by November 1, 2025.
580.28 	(c) The board must provide the commissioner, based on the information received by the 
580.29 	board from the health carriers pursuant to paragraph (b), the payment amount owed to each 
580.30 	health carrier.
580.31 	(d) The board must consider a health carrier as a vendor under section 16A.124, 
580.32 	subdivision 3, and each monthly invoice must represent the services that have been completed 
580.33 	or delivered.
581.1 	(e) The commissioner, in consultation with the board, may withhold payments and charge 
581.2 	back payments to recover from health carriers premium subsidies provided but that do not 
581.3 	comply with the applicable legal requirements of this section.
581.4 		Subd. 4.Assessment. (a) An annual assessment is imposed on health plan companies 
581.5 	for each calendar year beginning in calendar year 2026. The commissioner of commerce 
581.6 	must establish the annual assessment for each health plan company in an amount such that 
581.7 	the aggregate assessment amount collected from health plan companies under this subdivision 
581.8 	equals the amount necessary for the premium subsidy program established under subdivision 
581.9 	1.
581.10 	(b) By March 1 each year, the commissioner of commerce must consult with the board 
581.11 	of directors of MNsure and provide each health plan company with an estimate of the 
581.12 	company assessment for the current calendar year.
581.13 	(c) By May 31 each year, the commissioner of commerce, in consultation with the board 
581.14 	of directors of MNsure, must notify each health plan company of the company's assessment 
581.15 	for the current calendar year.
581.16 	(d) By June 30 each year, the commissioner of commerce must collect assessments from 
581.17 	health plan companies to pay for the premium subsidy program established under this 
581.18 	section.
581.19 		Subd. 5.Data practices. (a) The definitions in section 13.02 apply to this subdivision.
581.20 	(b) Government data on an enrollee or health carrier under this section are private data 
581.21 	on individuals or nonpublic data, except that the total reimbursement requested by a health 
581.22 	carrier and the total state payment to the health carrier are public data.

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

581.27 	Sec. 5. [62V.18] PREMIUM SUBSIDY PROGRAM ACCOUNT.
581.28 		Subdivision 1.Account established. The premium subsidy program account is created 
581.29 	in the special revenue fund in the state treasury.
582.1 		Subd. 2.Collected assessments. The commissioner of commerce must deposit the 
582.2 	assessments collected under section 62V.16, subdivision 4, in the premium subsidy program 
582.3 	account created under subdivision 1.
582.4 		Subd. 3.Appropriations. Money in the premium subsidy program account is annually 
582.5 	appropriated:
582.6 	(1) to the commissioner of management and budget for the payments to health carriers 
582.7 	on behalf of eligible individuals under section 62V.16, subdivision 3; and
582.8 	(2) to the board of directors of MNsure for operational and administrative costs for the 
582.9 	premium subsidy program established under section 62V.16.

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

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

582.18 	Sec. 7. Minnesota Statutes 2024, section 151.741, subdivision 5, is amended to read:
582.19 		Subd. 5.Insulin repayment account; annual transfer from health care access fund. (a) 
582.20 	The insulin repayment account is established in the special revenue fund in the state treasury. 
582.21 	Money in the account is appropriated each fiscal year to the commissioner of administration 
582.22 	to reimburse manufacturers for insulin dispensed under the insulin safety net program in 
582.23 	section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, 
582.24 	paragraph (h), and to cover costs incurred by the commissioner in providing these 
582.25 	reimbursement payments.
582.26 	(b) By June 30, 2025, and each June 30 thereafter, the commissioner of administration 
582.27 	shall certify to the commissioner of management and budget the total amount expended in 
582.28 	the prior fiscal year for:
582.29 	(1) reimbursement to manufacturers for insulin dispensed under the insulin safety net 
582.30 	program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph 
582.31 	(h), and 6, paragraph (h); and
583.1 	(2) costs incurred by the commissioner of administration in providing the reimbursement 
583.2 	payments described in clause (1).
583.3 	(c) The commissioner of management and budget shall transfer from the health care 
583.4 	access fund to the special revenue fund insulin repayment account, beginning July 1, 2025, 
583.5 	and each July 1 thereafter, an amount equal to the amount to which the commissioner of 
583.6 	administration certified pursuant to paragraph (b).

583.7 	Sec. 8. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to 
583.8 	read:
583.9 		Subd. 44.Notification of federal approval; report. (a) For any provision over which 
583.10 	the commissioner has jurisdiction and that has an effective date contingent upon federal 
583.11 	approval, whether the contingency is expressed in an effective date, in the text of a statutory 
583.12 	provision, or in the text of an uncodified section of session law, the commissioner must 
583.13 	notify the revisor of statutes of which enacted provisions contain such contingent federal 
583.14 	approval and when federal approval is obtained for any such provision according to 
583.15 	paragraphs (b) and (c).
583.16 	(b) By July 1 of each year, the commissioner must provide the revisor of statutes; the 
583.17 	director of the House Research Department; and the director of Senate Counsel, Research 
583.18 	and Fiscal Analysis with a report containing a complete list of all provisions enacted since 
583.19 	the preceding July 1 with an effective date contingent on federal approval.
583.20 	(c) By September 1 of each year, the commissioner must provide the revisor of statutes; 
583.21 	the director of the House Research Department; and the director of Senate Counsel, Research 
583.22 	and Fiscal Analysis with a report containing a complete list of all statutory provisions 
583.23 	previously enacted with an effective date contingent on federal approval. The commissioner 
583.24 	must identify in the report which, if any, provisions received federal approval since the 
583.25 	preceding September 1 and the date that federal approval for each provision was received. 
583.26 	If no provisions have received federal approval since the preceding September 1, the report 
583.27 	must state that fact. The revisor of statutes may authorize the commissioner to remove 
583.28 	federally approved provisions from subsequent reports submitted.
583.29 	(d) The reports in paragraphs (b) and (c) must be provided in a form prescribed by the 
583.30 	revisor of statutes.
583.31 	(e) An employee in the Department of Human Services who is responsible for identifying 
583.32 	and tracking federal approval of provisions must attest to the accuracy of the reports in a 
583.33 	manner prescribed by the revisor of statutes.

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

584.2 	Sec. 9. Minnesota Statutes 2024, section 256B.051, subdivision 3, is amended to read:
584.3 		Subd. 3.Eligibility. An individual with a disability is eligible for housing stabilization 
584.4 	services if the individual:
584.5 	(1) is 18 years of age or older;
584.6 	(2) is enrolled in medical assistance;
584.7 	(3) has income at or below 150 percent of the federal poverty level;
584.8 	(4) has an assessment of functional need that determines a need for services due to 
584.9 	limitations caused by the individual's disability;
584.10 	(4) (5) resides in or plans to transition to a community-based setting as defined in Code 
584.11 	of Federal Regulations, title 42, section 441.301 (c); and
584.12 	(5) (6) has housing instability evidenced by:
584.13 	(i) being homeless or at-risk of homelessness;
584.14 	(ii) being in the process of transitioning from, or having transitioned in the past six 
584.15 	months from, an institution or licensed or registered setting;
584.16 	(iii) being eligible for waiver services under chapter 256S or section 256B.092 or 
584.17 	256B.49; or
584.18 	(iv) having been identified by a long-term care consultation under section 256B.0911 
584.19 	as at risk of institutionalization.

584.20 	Sec. 10. [306.991] GREEN BURIALS IN PUBLIC CEMETERIES.
584.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
584.22 	the meanings given.
584.23 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
584.24 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
584.25 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
584.26 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
584.27 	14.
584.28 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
585.1 		Subd. 2.Green burial requirements. A municipality, town, or other cemetery governed 
585.2 	by this chapter that allows for green burials must comply with the requirements of this 
585.3 	section.
585.4 		Subd. 3.Green burial plot locations. (a) Green burial plots must have a designated 
585.5 	location within the cemetery. Green burial plot locations must:
585.6 	(1) be set back 50 feet from property lines;
585.7 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
585.8 	level;
585.9 	(3) not be in standing water;
585.10 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
585.11 	supply well, or a shaft drilled into the ground meant to extract water; and
585.12 	(5) not be within flood-prone areas.
585.13 	(b) Green burial plot locations must be a certain distance from water sources. Green 
585.14 	burial plot locations must be:
585.15 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
585.16 	water;
585.17 	(2) 100 feet from other springs or watercourses; and
585.18 	(3) 33 feet from drainage systems.
585.19 		Subd. 4.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
585.20 	one-half feet from the base of the grave to the soil horizon.
585.21 	(b) Green burials must have three and one-half feet of cover.
585.22 		Subd. 5.Burial density. Green burial plots must be a maximum of 300 burials per acre 
585.23 	over a 100 year period.

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

585.25 	Sec. 11. [306.992] SCATTERING OF HYDROLYZED OR CREMATED REMAINS.
585.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
585.27 	the meanings given.
585.28 	(b) "Cremated remains" has the meaning given in section 149A.02, subdivision 7.
585.29 	(c) "Hydrolyzed remains" has the meaning given in section 149A.02, subdivision 24a.
586.1 		Subd. 2.Designated location. A municipality, town, or other cemetery governed by 
586.2 	this chapter that allows for scattering of hydrolyzed remains or cremated remains must 
586.3 	designate a location within the cemetery for the scattering of hydrolyzed remains or cremated 
586.4 	remains.

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

586.6 	Sec. 12. [307.14] GREEN BURIALS IN PRIVATE CEMETERIES.
586.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
586.8 	the meanings given.
586.9 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
586.10 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
586.11 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
586.12 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
586.13 	14.
586.14 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
586.15 		Subd. 2.Green burial requirements. A person who owns a cemetery governed by this 
586.16 	chapter that allows for green burials must comply with the requirements of this section.
586.17 		Subd. 3.Green burial plot locations. (a) Green burial plots must have a designated 
586.18 	location within the cemetery. Green burial plot locations must:
586.19 	(1) be set back 50 feet from property lines;
586.20 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
586.21 	level;
586.22 	(3) not be in standing water;
586.23 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
586.24 	supply well, or a shaft drilled into the ground meant to extract water; and
586.25 	(5) not be within flood-prone areas.
586.26 	(b) Green burial plot locations must be a certain distance from water sources. Green 
586.27 	burial plot locations must be:
586.28 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
586.29 	water;
586.30 	(2) 100 feet from other springs or watercourses; and
587.1 	(3) 33 feet from drainage systems.
587.2 		Subd. 4.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
587.3 	one-half feet from the base of the grave to the soil horizon.
587.4 	(b) Green burials must have three and one-half feet of cover.
587.5 		Subd. 5.Burial density. Green burial plots must be a maximum of 300 burials per acre 
587.6 	over a 100 year period.

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

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

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

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

587.18
587.19	Sec. 6. COMMISSIONER OF MANAGEMENT 
AND BUDGET

587.20	Appropriations by Fund
	
587.21		2024
	2025
	
587.22	General
	-0-
	(232,000)
	
587.23	Health Care Access
	-0-
	100,000
	
587.24 	(a) Insulin safety net program. $100,000 in 
587.25 	fiscal year 2025 is from the health care access 
587.26 	fund for the insulin safety net program in 
587.27 	Minnesota Statutes, section 151.74.
587.28 	(b) Transfer. The commissioner must transfer 
587.29 	from the health care access fund to the insulin 
587.30 	safety net program repayment account in the 
587.31 	special revenue fund the amount certified by 
588.1 	the commissioner of administration under 
588.2 	Minnesota Statutes, section 151.741, 
588.3 	subdivision 5, paragraph (b), estimated to be 
588.4 	$100,000 in fiscal year 2025, for 
588.5 	reimbursement to manufacturers for insulin 
588.6 	dispensed under the insulin safety net program 
588.7 	in Minnesota Statutes, section 151.74. The 
588.8 	base for this transfer is estimated to be 
588.9 	$100,000 in fiscal year 2026 and $100,000 in 
588.10 	fiscal year 2027.
588.11 	(c) Base Level Adjustment. The health care 
588.12 	access fund base is increased by $100,000 in 
588.13 	fiscal year 2026 and increased by $100,000 in 
588.14 	fiscal year 2027.

588.15 	Sec. 15. TRANSFERS TO THE DEPARTMENT OF CHILDREN, YOUTH, AND 
588.16 	FAMILIES IN UNCODIFIED LAW.
 588.17 	Any power, duty, or responsibility given to the commissioner of human services or the 
588.18 	Department of Human Services in an uncodified section of Laws of Minnesota that is a part 
588.19 	of, necessary for, or in service of a power, duty, or responsibility transferred in Laws 2023, 
588.20 	chapter 70, article 12, section 30, or Laws 2024, chapter 80, transfers to the commissioner 
588.21 	of children, youth, and families or the Department of Children, Youth, and Families upon 
588.22 	the notice of transfer of the underlying power, duty, or responsibility required in Laws 2023, 
588.23 	chapter 70, article 12, section 30, subdivision 1. This section applies to uncodified sections 
588.24 	of Laws of Minnesota enacted before and after Laws 2023, chapter 70, including but not 
588.25 	limited to Laws 2024, chapter 117, sections 16 to 22.

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

589.1 	Sec. 17. DIRECTION TO THE COMMISSIONER OF CHILDREN, YOUTH, AND 
589.2 	FAMILIES; CHILD CARE AND DEVELOPMENT BLOCK GRANT 
589.3 	ALLOCATIONS.
 589.4 	(a) The commissioner of children, youth, and families shall allocate $1,000,000 in fiscal 
589.5 	year 2026 and $1,000,000 in fiscal year 2027 from the child care and development block 
589.6 	grant for child care improvement grants under Minnesota Statutes, section 142D.20, 
589.7 	subdivision 3, paragraph (a), clause (7). This is a onetime allocation.
589.8 	(b) The commissioner of children, youth, and families shall allocate $55,000 in fiscal 
589.9 	year 2026, $639,000 in fiscal year 2027, $1,639,000 in fiscal year 2028, and $1,638,000 in 
589.10 	fiscal year 2029 from the child care and development block grant for the development of a 
589.11 	statewide electronic attendance and record keeping system for the child care assistance 
589.12 	program.
589.13 	(c) The commissioner of children, youth, and families shall allocate $1,419,000 in fiscal 
589.14 	year 2026, $4,221,000 in fiscal year 2027, $4,791,000 in fiscal year 2028, and $4,885,000 
589.15 	in fiscal year 2029 from the child care and development block grant for MFIP child care 
589.16 	assistance to comply with federal requirements.
589.17 	(d) The commissioner of children, youth, and families shall allocate $2,662,000 in fiscal 
589.18 	year 2026, $5,479,000 in fiscal year 2027, $5,482,000 in fiscal year 2028, and $5,196,000 
589.19 	in fiscal year 2029 from the child care and development block grant for basic sliding fee 
589.20 	child care assistance to comply with federal requirements.

589.21 	Sec. 18. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
589.22 	FAMILIES; ALLOCATION OF TANF-ELIGIBLE GENERAL FUND 
589.23 	EXPENDITURES.
 589.24 	The commissioner of children, youth, and families must identify $4,000,000 in fiscal 
589.25 	year 2026, $4,000,000 in fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 
589.26 	in fiscal year 2029 of general fund expenditures attributable to eligible activities under 
589.27 	Minnesota Statutes, chapter 142G, and reduce general fund expenditures by the same 
589.28 	amounts. The commissioner must allocate $4,000,000 in fiscal year 2026, $4,000,000 in 
589.29 	fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 in fiscal year 2029 to 
589.30 	eligible activities under Minnesota Statutes, chapter 142G, to the TANF fund.

590.1 	Sec. 19. REVISOR INSTRUCTION.
 590.2 	By February 1, 2026, the revisor of statutes must identify any changes to Minnesota 
590.3 	Statutes and Minnesota Rules necessary to reflect the expiration of the Minnesota premium 
590.4 	security plan and the premium security account. The revisor of statutes may submit to the 
590.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
590.6 	commerce finance and policy draft legislation with the statutory changes necessary to 
590.7 	implement the identified changes.

590.8 	Sec. 20. REPEALER.
 590.9 	Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; and 62E.25, are 
590.10 	repealed.

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

590.12 	ARTICLE 23
590.13 	FORECAST ADJUSTMENTS

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

590.21				APPROPRIATIONS
	
590.22				Available for the Year
	
590.23				Ending June 30
	
590.24					2025

590.25
590.26	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

590.27	Subdivision 1.Total Appropriation
 	$
	(224,693,000)

590.28	Appropriations by Fund
	
590.29		2025
		
590.30	General
	(202,264,000)
		
590.31	Health Care Access
	(17,144,000)
		
590.32	Federal TANF
	(5,285,000)

591.1	Subd. 2.Forecasted Programs
 					
591.2
591.3
591.4
591.5	(a) Minnesota Family 
Investment Program 
(MFIP)/Diversionary Work 
Program (DWP)

591.6	Appropriations by Fund
	
591.7		2025
		
591.8	General
	(5,238,000)
		
591.9	Federal TANF
	(5,285,000)

591.10	(b) MFIP Child Care Assistance
		(57,918,000)

591.11	(c) General Assistance
		1,932,000

591.12	(d) Minnesota Supplemental Aid
		3,278,000

591.13	(e) Housing Support
		9,569,000

591.14	(f) Northstar Care for Children
		(9,006,000)

591.15	(g) MinnesotaCare
		(16,701,000)
			
591.16 	This appropriation is from the health care 
591.17 	access fund.

591.18	(h) Medical Assistance

591.19	Appropriations by Fund
	
591.20		2025
		
591.21	General
	(155,544,000)
		
591.22	Health Care Access
	(443,000)

591.23	(i) Behavioral Health Fund
		10,633,000

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

591.26 	ARTICLE 24
591.27 	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS

591.28	Section 1. HUMAN SERVICES APPROPRIATIONS.
 	
591.29 	The sums shown in the columns marked "Appropriations" are appropriated to the 
591.30 	commissioner of human services for the purposes specified in this article. The appropriations 
591.31 	are from the general fund, or another named fund, and are available for the fiscal years 
591.32 	indicated for each purpose. The figures "2026" and "2027" used in this article mean that 
592.1 	the appropriations listed under them are available for the fiscal year ending June 30, 2026, 
592.2 	or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is 
592.3 	fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

592.4				APPROPRIATIONS
	
592.5				Available for the Year
	
592.6				Ending June 30
	
592.7					2026
		2027

592.8
592.9	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES
 	$
	3,271,313,000
	$
	3,434,480,000

592.10	Subdivision 1.Total Appropriation

592.11	Appropriations by Fund
	
592.12		2026
	2027
	
592.13	General
	1,987,159,000
	2,177,961,000
	
592.14
592.15	State Government 
Special Revenue
	4,273,000
	4,273,000
	
592.16	Health Care Access
	1,279,188,000
	1,251,553,000
	
592.17	Lottery Prize
	163,000
	163,000
	
592.18
592.19	Family and Medical 
Benefit Insurance
	530,000
	530,000
	
592.20 	The amounts that may be spent for each 
592.21 	purpose are specified in this article.

592.22	Subd. 2.Information Technology Appropriations
 					
592.23 	(a) IT appropriations generally. This 
592.24 	appropriation includes money for information 
592.25 	technology projects, services, and support. 
592.26 	Funding for information technology project 
592.27 	costs must be incorporated into the 
592.28 	service-level agreement and paid to Minnesota 
592.29 	IT Services by the Department of Human 
592.30 	Services under the rates and mechanism 
592.31 	specified in that agreement.
592.32 	(b) Receipts for systems project.
592.33 	Appropriations and federal receipts for 
593.1 	information technology systems projects for 
593.2 	MMIS and METS must be deposited in the 
593.3 	state systems account authorized in Minnesota 
593.4 	Statutes, section 256.014. Money appropriated 
593.5 	for information technology projects approved 
593.6 	by the commissioner of Minnesota IT 
593.7 	Services, funded by the legislature, and 
593.8 	approved by the commissioner of management 
593.9 	and budget may be transferred from one 
593.10 	project to another and from development to 
593.11 	operations as the commissioner of human 
593.12 	services deems necessary. Any unexpended 
593.13 	balance in the appropriation for these projects 
593.14 	does not cancel and is available for ongoing 
593.15 	development and operations.

593.16	Sec. 3. CENTRAL OFFICE; OPERATIONS

593.17	Subdivision 1.Total Appropriation
 	$
	166,091,000
	$
	171,233,000

593.18	Appropriations by Fund
	
593.19	General
	143,905,000
	147,520,000
	
593.20
593.21	State Government 
Special Revenue
	248,000
	248,000
	
593.22	Health Care Access
	21,408,000
	22,935,000
	
593.23
593.24	Family and Medical 
Benefits Insurance
	530,000
	530,000

593.25	Subd. 2.Administrative Recovery; Set-Aside
 					
593.26 	The commissioner may invoice local entities 
593.27 	through the SWIFT accounting system as an 
593.28 	alternative means to recover the actual cost of 
593.29 	administering the following provisions:
593.30 	(1) the statewide data management system 
593.31 	authorized in Minnesota Statutes, section 
593.32 	125A.744, subdivision 3;
593.33 	(2) repayment of the special revenue 
593.34 	maximization account as provided under 
594.1 	Minnesota Statutes, section 245.495, 
594.2 	paragraph (b);
594.3 	(3) repayment of the special revenue 
594.4 	maximization account as provided under 
594.5 	Minnesota Statutes, section 256B.0625, 
594.6 	subdivision 20, paragraph (k);
594.7 	(4) targeted case management under 
594.8 	Minnesota Statutes, section 256B.0924, 
594.9 	subdivision 6, paragraph (g);
594.10 	(5) residential services for children with severe 
594.11 	emotional disturbance under Minnesota 
594.12 	Statutes, section 256B.0945, subdivision 4, 
594.13 	paragraph (d); and
594.14 	(6) repayment of the special revenue 
594.15 	maximization account as provided under 
594.16 	Minnesota Statutes, section 256F.10, 
594.17 	subdivision 6, paragraph (b).

594.18	Subd. 3.Family and Medical Benefit Insurance
 					
594.19 	$530,000 each year is from the family and 
594.20 	medical benefit insurance fund for systems 
594.21 	costs to administer Minnesota Statutes, chapter 
594.22 	268B.

594.23	Subd. 4.Base Level Adjustment
 					
594.24 	The general fund base for this section is 
594.25 	$148,206,000 in fiscal year 2028 and 
594.26 	$149,166,000 in fiscal year 2029.

594.27	Sec. 4. CENTRAL OFFICE; HEALTH CARE

594.28	Subdivision 1.Total Appropriation
 	$
	69,393,000
	$
	65,729,000

594.29	Appropriations by Fund
	
594.30	General
	41,225,000
	37,561,000
	
594.31	Health Care Access
	28,168,000
	28,168,000

595.1	Subd. 2.Base Level Adjustment
 					
595.2 	The general fund base for this section is 
595.3 	$37,588,000 in fiscal year 2028 and 
595.4 	$37,588,000 in fiscal year 2029.

595.5
595.6	Sec. 5. CENTRAL OFFICE; AGING AND 
DISABILITY SERVICES
 	$
	49,290,000
	$
	49,194,000

595.7	Appropriations by Fund
	
595.8	General
	49,165,000
	49,069,000
	
595.9595.10
	State Government 
Special Revenue
	125,000
	125,000

595.11
595.12	Sec. 6. CENTRAL OFFICE; BEHAVIORAL 
HEALTH
 	$
	22,775,000
	$
	22,159,000

595.13	Appropriations by Fund
	
595.14	General
	22,612,000
	21,996,000
	
595.15	Lottery Prize
	163,000
	163,000
	
595.16 	Psychiatric Residential Treatment Facility 
595.17 	Report. $500,000 in fiscal year 2026 is from 
595.18 	the general fund for the development of the 
595.19 	psychiatric residential treatment facility report 
595.20 	and proposed legislation. This is a onetime 
595.21 	appropriation and is available until June 30, 
595.22 	2027.

595.23
595.24	Sec. 7. CENTRAL OFFICE; HOMELESSNESS, 
HOUSING, AND SUPPORT SERVICES
 	$
	7,065,000
	$
	6,421,000

595.25
595.26	Sec. 8. CENTRAL OFFICE; OFFICE OF 
INSPECTOR GENERAL

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

595.28	Appropriations by Fund
	
595.29	General
	31,421,000
	32,615,000
	
595.30
595.31	State Government 
Special Revenue
	3,900,000
	3,900,000
	
595.32	Health Care Access
	941,000
	941,000

596.1	Subd. 2.Base Level Adjustment
 					
596.2 	The general fund base for this section is 
596.3 	$32,671,000 in fiscal year 2028 and 
596.4 	$32,617,000 in fiscal year 2029.

596.5
596.6	Sec. 9. FORECASTED PROGRAMS; 
GENERAL ASSISTANCE
 	$
	84,138,000
	$
	86,462,000
	
596.7 	Emergency General Assistance
596.8 	(a) The amount appropriated for emergency 
596.9 	general assistance is up to $6,729,812 in fiscal 
596.10 	year 2026 and up to $6,729,812 in fiscal year 
596.11 	2027.
596.12 	(b) Money to counties for emergency general 
596.13 	assistance shall be allocated by the 
596.14 	commissioner using the allocation method 
596.15 	under Minnesota Statutes, section 256D.06, 
596.16 	subdivision 2, paragraph (c).

596.17
596.18
596.19	Sec. 10. FORECASTED PROGRAMS; 
MINNESOTA SUPPLEMENTAL 
ASSISTANCE
 	$
	67,113,000
	$
	69,089,000

596.20
596.21	Sec. 11. FORECASTED PROGRAMS; 
HOUSING SUPPORT
 	$
	269,258,000
	$
	279,703,000

596.22
596.23	Sec. 12. FORECASTED PROGRAMS; 
MINNESOTACARE
 	$
	106,426,000
	$
	169,731,000
	
596.24 	This appropriation is from the health care 
596.25 	access fund.

596.26
596.27	Sec. 13. FORECASTED PROGRAMS; 
MEDICAL ASSISTANCE
 	$
	2,137,399,000
	$
	2,219,809,000

596.28	Appropriations by Fund
	
596.29	General
	1,018,619,000
	1,193,496,000
	
596.30	Health Care Access
	1,118,780,000
	1,026,313,000
	
596.31 	The health care access fund base for this 
596.32 	section is $990,107,000 in fiscal year 2028 
596.33 	and $999,798,000 in fiscal year 2029.

596.34
596.35	Sec. 14. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICES GRANTS
 	$
	5,655,000
	$
	5,655,000

597.1
597.2	Sec. 15. GRANT PROGRAMS; REFUGEE 
SERVICES GRANTS
 	$
	100,000
	$
	100,000

597.3
597.4	Sec. 16. GRANT PROGRAMS; HEALTH 
CARE GRANTS
 	$
	8,176,000
	$
	8,176,000

597.5	Subdivision 1.Total Appropriations

597.6	Appropriations by Fund
	
597.7	General
	4,711,000
	4,711,000
	
597.8	Health Care Access
	3,465,000
	3,465,000

597.9	Subd. 2.Legal Referral and Assistance Grants
 					
597.10 	$100,000 in fiscal year 2026 and $100,000 in 
597.11 	fiscal year 2027 are from the general fund for 
597.12 	legal referral and assistance grants under 
597.13 	Minnesota Statutes, section 142A.40.

597.14
597.15	Subd. 3.Grants for Integrated Care for 
High-Risk Pregnant Women
 					
597.16 	$2,089,000 in fiscal year 2026 and $2,089,000 
597.17 	in fiscal year 2027 are from the general fund 
597.18 	for grants to improve birth outcomes and 
597.19 	strengthen early parental resilience for 
597.20 	pregnant women who are medical assistance 
597.21 	enrollees, are at significantly elevated risk for 
597.22 	adverse outcomes of pregnancy, and are in 
597.23 	targeted populations under Minnesota Statutes, 
597.24 	section 256B.79.

597.25
597.26	Subd. 4.MinnesotaCare Application Assistance 
Bonuses
 					
597.27 	$3,115,000 in fiscal year 2026 and $3,115,000 
597.28 	in fiscal year 2027 are from the health care 
597.29 	access fund for application assistance bonuses 
597.30 	to organizations and licensed insurance 
597.31 	producers for applicants successfully enrolled 
597.32 	in MinnesotaCare under Minnesota Statutes, 
597.33 	section 256.962, subdivision 5.

598.1
598.2	Subd. 5.Medical Assistance Application 
Assistance Bonuses
 					
598.3 	$320,000 in fiscal year 2026 and $320,000 in 
598.4 	fiscal year 2027 are from the general fund for 
598.5 	application assistance bonuses to organizations 
598.6 	and licensed insurance producers for 
598.7 	applicants successfully enrolled in medical 
598.8 	assistance under Minnesota Statutes, section 
598.9 	256.962, subdivision 5.

598.10
598.11	Subd. 6.Medical Assistance Application 
Assistance Bonuses
 					
598.12 	$310,000 in fiscal year 2026 and $310,000 in 
598.13 	fiscal year 2027 are from the health care 
598.14 	access fund for application assistance bonuses 
598.15 	to organizations and licensed insurance 
598.16 	producers for applicants successfully enrolled 
598.17 	in medical assistance under Minnesota 
598.18 	Statutes, section 256.962, subdivision 5.

598.19	Subd. 7.Medical Assistance Outreach Grants
 					
598.20 	$90,000 in fiscal year 2026 and $90,000 in 
598.21 	fiscal year 2027 are from the general fund for 
598.22 	grants to public and private organizations, 
598.23 	regional collaboratives, and regional health 
598.24 	care outreach centers for outreach activities 
598.25 	for medical assistance under Minnesota 
598.26 	Statutes, section 256.962, subdivision 2.

598.27	Subd. 8.MinnesotaCare Outreach Grants
 					
598.28 	$40,000 in fiscal year 2026 and $40,000 in 
598.29 	fiscal year 2027 are from the health care 
598.30 	access fund for grants to public and private 
598.31 	organizations, regional collaboratives, and 
598.32 	regional health care outreach centers for 
598.33 	outreach activities for MinnesotaCare under 
598.34 	Minnesota Statutes, section 256.962, 
598.35 	subdivision 2.

599.1
599.2	Subd. 9.Grants for Periodic Data Matching for 
Medical Assistance and MinnesotaCare
 					
599.3 	$2,112,000 in fiscal year 2026 and $2,112,000 
599.4 	in fiscal year 2027 are from the general fund 
599.5 	for grants to counties for costs related to 
599.6 	periodic data matching for medical assistance 
599.7 	and MinnesotaCare recipients under 
599.8 	Minnesota Statutes, section 256B.0561.

599.9599.10
	Sec. 17. GRANT PROGRAMS; DISABILITIES 
GRANTS
 	$
	1,780,000
	$
	1,780,000
	
599.11 	Grants to Community-Based HIV/AIDS 
599.12 	Support Services Providers. $4,000,000 in 
599.13 	fiscal year 2026 and $4,000,000 in fiscal year 
599.14 	2027 are for grants to community-based 
599.15 	HIV/AIDS support services providers.

599.16
599.17	Sec. 18. GRANT PROGRAMS; HOUSING AND 
SUPPORT SERVICES GRANTS
 	$
	89,570,000
	$
	92,911,000

599.18
599.19	Subdivision 1.Family Supportive Housing Grant 
Program
 					
599.20 	$700,000 in fiscal year 2026 is for the family 
599.21 	supportive housing grant program. This is a 
599.22 	onetime appropriation and is available until 
599.23 	June 30, 2027.

599.24
599.25	Subd. 2.Grant for Catholic Charities Homeless 
Elders Program
 					
599.26 	$959,000 in fiscal year 2026 is for a grant to 
599.27 	Catholic Charities of St. Paul and Minneapolis 
599.28 	for the homeless elders program that helps 
599.29 	homeless, isolated, and low-income older 
599.30 	adults to move into stable housing. This is a 
599.31 	onetime appropriation and is available until 
599.32 	June 30, 2027.

599.33	Subd. 3.Emergency Services Grants
 					
599.34 	$25,000,000 in fiscal year 2026 and 
599.35 	$30,000,000 in fiscal year 2027 are from the 
600.1 	general fund for emergency services grants 
600.2 	under Minnesota Statutes, section 256K.49.

600.3	Subd. 4.Homeless Youth Act Grants
 					
600.4 	$15,136,000 in fiscal year 2026 and 
600.5 	$15,136,000 in fiscal year 2027 are from the 
600.6 	general fund for Homeless Youth Act grants 
600.7 	under Minnesota Statutes, section 256K.45.

600.8
600.9	Subd. 5.Safe Harbor Shelter and Housing 
Grants
 					
600.10 	$1,250,000 in fiscal year 2026 and $1,250,000 
600.11 	in fiscal year 2027 are from the general fund 
600.12 	for safe harbor shelter and housing grants 
600.13 	under Minnesota Statutes, section 256K.47.

600.14	Subd. 6.Transitional Housing Program Grants
 					
600.15 	$3,000,000 in fiscal year 2026 and $3,000,000 
600.16 	in fiscal year 2027 are from the general fund 
600.17 	for transitional housing program grants under 
600.18 	Minnesota Statutes, section 256K.48.

600.19
600.20	Subd. 7.Long-Term Homeless Supportive 
Services Grants
 					
600.21 	$6,910,000 in fiscal year 2026 and $6,910,000 
600.22 	in fiscal year 2027 are from the general fund 
600.23 	for long-term homeless supportive services 
600.24 	grants under Minnesota Statutes, section 
600.25 	256K.26.

600.26
600.27	Sec. 19. GRANT PROGRAMS; ADULT 
MENTAL HEALTH GRANTS
 	$
	110,977,000
	$
	110,977,000

600.28
600.29	Subdivision 1.Early Episode of Bipolar Disorder 
Grants
 					
600.30 	$125,000 in fiscal year 2026 and $125,000 in 
600.31 	fiscal year 2027 are for early episode of 
600.32 	bipolar disorder grants under Minnesota 
600.33 	Statutes, section 245.4905.

601.1
601.2	Subd. 2.Cultural and Ethnic Minority 
Infrastructure Grants
 					
601.3 	$2,891,000 in fiscal year 2026 and $2,891,000 
601.4 	in fiscal year 2027 are from the general fund 
601.5 	for cultural and ethnic minority infrastructure 
601.6 	grants under Minnesota Statutes, section 
601.7 	245.4903.

601.8
601.9	Subd. 3.Grants for Adult Mental Health 
Culturally Specific Services
 					
601.10 	$300,000 in fiscal year 2026 and $300,000 in 
601.11 	fiscal year 2027 are from the general fund for 
601.12 	grants to support increased availability of 
601.13 	culturally responsive mental health services 
601.14 	for racial and ethnic minorities by providing 
601.15 	internship placements and clinical supervision 
601.16 	to emerging mental health professionals under 
601.17 	Minnesota Statutes, section 245.4661, 
601.18 	subdivision 9.

601.19
601.20	Subd. 4.Mental Health Provider Supervision 
Grant Program
 					
601.21 	$1,500,000 in fiscal year 2026 and $1,500,000 
601.22 	in fiscal year 2027 are from the general fund 
601.23 	for the mental health provider supervision 
601.24 	grant program under Minnesota Statutes, 
601.25 	section 245.4663.

601.26	Subd. 5.Mobile Crisis Grants to Tribal Nations
 					
601.27 	$1,000,000 in fiscal year 2026 and $1,000,000 
601.28 	in fiscal year 2027 are from the general fund 
601.29 	for mobile crisis grants under Minnesota 
601.30 	Statutes, section 245.4661, subdivision 9, 
601.31 	paragraph (b), clause (15), to Tribal Nations.

601.32
601.33	Subd. 6.Adult Mental Illness Crisis Housing 
Assistance Program Grants
 					
601.34 	$610,000 in fiscal year 2026 and $610,000 in 
601.35 	fiscal year 2027 are from the general fund for 
602.1 	adult mental illness crisis housing assistance 
602.2 	program grants under Minnesota Statutes, 
602.3 	section 245.99.

602.4
602.5	Subd. 7.Grants for Persons With Serious and 
Persistent Mental Illness
 					
602.6 	$21,000,000 in fiscal year 2026 and 
602.7 	$21,000,000 in fiscal year 2027 are from the 
602.8 	general fund for grants to counties to establish, 
602.9 	operate, or contract with private providers to 
602.10 	provide services to help persons with serious 
602.11 	and persistent mental illness under Minnesota 
602.12 	Statutes, section 256K.10.

602.13	Subd. 8.South Central Crisis Center Grant
 					
602.14 	$600,000 in fiscal year 2026 and $600,000 in 
602.15 	fiscal year 2027 are from the general fund for 
602.16 	a grant to a community collaborative providing 
602.17 	crisis center services in the Mankato area that 
602.18 	are comparable to the crisis services provided 
602.19 	prior to the closure of the Mankato Crisis 
602.20 	Center under Laws 2010, First Special Session 
602.21 	chapter 1, article 25, section 3, subdivision 10, 
602.22 	paragraph (a), clause (1).

602.23
602.24	Subd. 9.Projects for Assistance in Transition 
From Homelessness Program Grants
 					
602.25 	$4,792,000 in fiscal year 2026 and $4,792,000 
602.26 	in fiscal year 2027 are from the general fund 
602.27 	for projects for assistance in transition from 
602.28 	homelessness program grants under Minnesota 
602.29 	Statutes, section 245.991.

602.30
602.31	Subd. 10.Transition to Community Initiative 
Grants
 					
602.32 	$1,811,000 in fiscal year 2026 and $1,811,000 
602.33 	in fiscal year 2027 are from the general fund 
602.34 	for transition to community initiative grants 
602.35 	under Minnesota Statutes, section 256.478.

603.1
603.2	Sec. 20. GRANT PROGRAMS; CHILD 
MENTAL HEALTH GRANTS
 	$
	37,625,000
	$
	35,675,000

603.3
603.4	Subdivision 1.Grant to Mental Health 
Collaboration Hub Innovation Pilot Program
 					
603.5 	$750,000 in fiscal year 2026 is for a grant to 
603.6 	the Mental Health Collaboration Hub for the 
603.7 	Mental Health Collaboration Hub innovation 
603.8 	pilot program. This is a onetime appropriation 
603.9 	and is available until June 30, 2027.

603.10
603.11	Subd. 2.Psychiatric Residential Treatment 
Start-Up and Capacity-Building Grants
 					
603.12 	$200,000 in fiscal year 2026 is for a grant to 
603.13 	Clay County under Minnesota Statutes, section 
603.14 	256B.0941, subdivision 5, for a new 18-bed 
603.15 	psychiatric residential treatment facility in 
603.16 	Clay County. This is a onetime appropriation 
603.17 	and is available until June 30, 2029.

603.18
603.19	Subd. 3.Grant to Clay County for Psychiatric 
Residential Treatment Facility
 					
603.20 	$1,000,000 in fiscal year 2026 is for a grant 
603.21 	to Clay County for the purchase of equipment 
603.22 	and final redesign and remodeling for the 
603.23 	conversion of the West Central Regional 
603.24 	Juvenile Center nonsecure unit into an 18-bed 
603.25 	psychiatric residential treatment facility for 
603.26 	persons younger than 21 years of age, under 
603.27 	Minnesota Statutes, section 256B.0941. This 
603.28 	is a onetime appropriation.

603.29	Subd. 4.Adverse Childhood Experience Grants
 					
603.30 	$363,000 in fiscal year 2026 and $363,000 in 
603.31 	fiscal year 2027 are from the general fund for 
603.32 	grants to provide training for parents, 
603.33 	collaborative partners, and mental health 
603.34 	providers on the impact of adverse childhood 
603.35 	experiences and trauma under Minnesota 
604.1 	Statutes, section 245.4889, subdivision 1, 
604.2 	paragraph (b), clause (13).

604.3
604.4	Subd. 5.Children's Mental Health Screening 
Grants
 					
604.5 	$4,412,000 in fiscal year 2026 and $4,412,000 
604.6 	in fiscal year 2027 are from the general fund 
604.7 	for grants to county child welfare agencies 
604.8 	and juvenile justice agencies for children's 
604.9 	mental health screening and follow-up 
604.10 	diagnostic assessment and treatment under 
604.11 	Minnesota Statutes, section 245.4889, 
604.12 	subdivision 1, paragraph (b), clause (7).

604.13	Subd. 6.Early Intervention Capacity Grants
 					
604.14 	$1,024,000 in fiscal year 2026 and $1,024,000 
604.15 	in fiscal year 2027 are from the general fund 
604.16 	for grants to provider agencies for building 
604.17 	evidence-based mental health intervention 
604.18 	capacity for children from birth to age five 
604.19 	under Minnesota Statutes, section 245.4889, 
604.20 	subdivision 1, paragraph (b), clause (10).

604.21
604.22	Subd. 7.Cultural and Ethnic Minority Mental 
Health Grants
 					
604.23 	$300,000 in fiscal year 2026 and $300,000 in 
604.24 	fiscal year 2027 are from the general fund for 
604.25 	grants to provider agencies for mental health 
604.26 	services for people from cultural and ethnic 
604.27 	minorities, including supervision of clinical 
604.28 	trainees who are Black, indigenous, or people 
604.29 	of color under Minnesota Statutes, section 
604.30 	245.4889, subdivision 1, paragraph (b), clause 
604.31 	(6).

604.32	Subd. 8.Evidence-Based Practices Grants
 					
604.33 	$750,000 in fiscal year 2026 and $750,000 in 
604.34 	fiscal year 2027 are from the general fund for 
605.1 	services to promote and develop the capacity 
605.2 	of providers to use evidence-based practices 
605.3 	in providing children's mental health services 
605.4 	under Minnesota Statutes, section 245.4889, 
605.5 	subdivision 1, paragraph (b), clause (8).

605.6
605.7	Subd. 9.Person-Centered Discharge Planning 
Grants
 					
605.8 	$250,000 in fiscal year 2026 and $250,000 in 
605.9 	fiscal year 2027 are from the general fund for 
605.10 	grants to develop and support a 
605.11 	person-centered discharge planning process 
605.12 	for adults and children being discharged from 
605.13 	psychiatric residential treatment facilities, 
605.14 	child and adolescent behavioral health 
605.15 	hospitals, and hospital settings under Laws 
605.16 	2022, chapter 99, article 3, section 14, 
605.17 	paragraph (b).

605.18
605.19	Subd. 10.Early Childhood Mental Health 
Consultation Grants
 					
605.20 	$1,000,000 in fiscal year 2026 and $1,000,000 
605.21 	in fiscal year 2027 are from the general fund 
605.22 	for early childhood mental health consultation 
605.23 	under Minnesota Statutes, section 245.4889, 
605.24 	subdivision 1, paragraph (b), clause (15).

605.25
605.26	Subd. 11.Mental Health First Aid Training 
Grants
 					
605.27 	$23,000 in fiscal year 2026 and $23,000 in 
605.28 	fiscal year 2027 are from the general fund for 
605.29 	grants for mental health first aid training under 
605.30 	Minnesota Statutes, section 245.4889, 
605.31 	subdivision 1, paragraph (b), clause (12).

605.32	Subd. 12.First Episode of Psychosis Grants
 					
605.33 	$1,651,000 in fiscal year 2026 and $1,651,000 
605.34 	in fiscal year 2027 are from the general fund 
605.35 	for grants to provide evidence-based 
606.1 	interventions for youth at risk of developing 
606.2 	or experiencing a first episode of psychosis 
606.3 	under Minnesota Statutes, section 245.4889, 
606.4 	subdivision 1, paragraph (b), clause (16).

606.5
606.6	Subd. 13.Suicide Prevention and Counseling 
Text Message Grants
 					
606.7 	$1,125,000 in fiscal year 2026 and $1,125,000 
606.8 	in fiscal year 2027 are from the general fund 
606.9 	for suicide prevention and counseling services 
606.10 	that use text messaging statewide under 
606.11 	Minnesota Statutes, section 245.4889, 
606.12 	subdivision 1, paragraph (b), clause (11).

606.13
606.14	Subd. 14.School-Linked Behavioral Health 
Grants
 					
606.15 	$2,750,000 in fiscal year 2026 and $2,750,000 
606.16 	in fiscal year 2027 are from the general fund 
606.17 	for school-linked behavioral health grants 
606.18 	under Minnesota Statutes, section 245.4901.

606.19
606.20	Subd. 15.Shelter-Linked Behavioral Health 
Grants
 					
606.21 	$2,000,000 in fiscal year 2026 and $2,000,000 
606.22 	in fiscal year 2027 are from the general fund 
606.23 	for shelter-linked behavioral health grants 
606.24 	under Minnesota Statutes, section 256K.46.

606.25
606.26	Sec. 21. GRANT PROGRAMS; OPERATIONS 
GRANTS
 	$
	2,220,000
	$
	2,220,000
	
606.27 	Fraud Prevention Investigation Grants.
606.28 	$3,018,000 in fiscal year 2026 and $3,018,000 
606.29 	in fiscal year 2027 are from the general fund 
606.30 	for fraud prevention investigation grants under 
606.31 	Minnesota Statutes, section 256.983.

606.32 	Sec. 22. TRANSFERS.
 606.33 		Subdivision 1.Grants. The commissioner of human services, with the advance approval 
606.34 	of the commissioner of management and budget, may transfer unencumbered appropriation 
607.1 	balances for the biennium ending June 30, 2027, within fiscal years among general assistance, 
607.2 	medical assistance, MinnesotaCare, the Minnesota supplemental aid program, the housing 
607.3 	support program, and the entitlement portion of the behavioral health fund between fiscal 
607.4 	years of the biennium. The commissioner shall report to the chairs and ranking minority 
607.5 	members of the legislative committees with jurisdiction over health and human services 
607.6 	quarterly about transfers made under this subdivision.
607.7 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
607.8 	may be transferred within the Department of Human Services as the commissioner deems 
607.9 	necessary, with the advance approval of the commissioner of management and budget. The 
607.10 	commissioner shall report to the chairs and ranking minority members of the legislative 
607.11 	committees with jurisdiction over health and human services finance quarterly about transfers 
607.12 	made under this section.
607.13 		Subd. 3.Temporary authority for interagency transfers with Department of 
607.14 	Children, Youth, and Families. Beginning July 1, 2025, and until September 30, 2025, 
607.15 	administrative money may be transferred between the Department of Human Services and 
607.16 	Department of Children, Youth, and Families as the commissioners deem necessary, with 
607.17 	the advance approval of the commissioner of management and budget. The commissioners 
607.18 	shall report to the chairs and ranking minority members of the legislative committees with 
607.19 	jurisdiction over children and families quarterly about transfers made under this section.

607.20 	Sec. 23. CANCELLATIONS.
 607.21 		Subdivision 1.School-linked behavioral health grants. $3,000,000 of the fiscal year 
607.22 	2025 general fund appropriation in Laws 2024, chapter 127, article 67, section 2, subdivision 
607.23 	9, paragraph (a), is canceled to the general fund.
607.24 		Subd. 2.New American legal, social services, and long-term care workforce grant 
607.25 	program. $7,000,000 of the fiscal year 2024 general fund appropriation in Laws 2023, 
607.26 	chapter 70, article 20, section 2, subdivision 25, is canceled to the general fund.
607.27 		Subd. 3.Mobile crisis grants. $1,672,000 of the fiscal year 2025 general fund 
607.28 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 29, paragraph (e), 
607.29 	is canceled to the general fund.
607.30 		Subd. 4.Child mental health grants. $250,000 of the fiscal year 2025 general fund 
607.31 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 30, is canceled to 
607.32 	the general fund.
608.1 		Subd. 5.Emergency medical assistance legal referral costs. $100,000 of the 2025 
608.2 	general fund appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 26, 
608.3 	is canceled to the general fund.
608.4 		Subd. 6.Grants to navigators. $800,000 of the fiscal year 2024 health care access fund 
608.5 	appropriation in Laws 2023, chapter 22, section 4, subdivision 2, is canceled to the health 
608.6 	care access fund.
608.7 		Subd. 7.Mille Lacs Band of Ojibwe American Indian child welfare 
608.8 	initiative. $5,294,000 of the fiscal year 2025 general fund appropriation in Laws 2023, 
608.9 	chapter 70, article 20, section 2, subdivision 22, paragraph (b), is canceled to the general 
608.10 	fund.
608.11 		Subd. 8.Transition grant program. $293,000 of the fiscal year 2024 general fund 
608.12 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 20, paragraph (b), 
608.13 	is canceled to the general fund.
608.14 		Subd. 9.Grant to administer pool of qualified individuals for assessments. $250,000 
608.15 	of the fiscal year 2025 general fund appropriation in Laws 2023, chapter 70, article 20, 
608.16 	section 2, subdivision 22, paragraph (k), is canceled to the general fund.
608.17 		Subd. 10.IT systems improvements for children and families. $10,000,000 of the 
608.18 	fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, article 20, section 2, 
608.19 	subdivision 4, paragraph (g), is canceled to the general fund.

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

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

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

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

608.29
608.30	Subd. 30.Grant Programs; Child Mental Health 
Grants
 		44,487,000
		37,934,000
37,734,000
	
609.1 	(a) Psychiatric residential treatment facility 
609.2 	start-up grants. $1,000,000 in fiscal year 
609.3 	2024 and $1,000,000 $800,000 in fiscal year 
609.4 	2025 are for psychiatric residential treatment 
609.5 	facility start-up grants under Minnesota 
609.6 	Statutes, section 256B.0941, subdivision 5. 
609.7 	This is a onetime appropriation and is 
609.8 	available until June 30, 2027.
609.9 	(b) African American Child Wellness 
609.10 	Institute. $2,000,000 in fiscal year 2024 is 
609.11 	for a grant to the African American Child 
609.12 	Wellness Institute to provide culturally 
609.13 	specific mental health and substance use 
609.14 	disorder services under Minnesota Statutes, 
609.15 	section 245.0961. This is a onetime 
609.16 	appropriation and is available until June 30, 
609.17 	2027.
609.18 	(c) Base level adjustment. The general fund 
609.19 	base is $34,648,000 in fiscal year 2026 and 
609.20 	$34,648,000 in fiscal year 2027.

609.21 	ARTICLE 25
609.22 	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS

609.23	Section 1. CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS.
 	
609.24 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
609.25 	and for the purposes specified in this article. The appropriations are from the general fund, 
609.26 	or another named fund, and are available for the fiscal years indicated for each purpose. 
609.27 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
609.28 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
609.29 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
609.30 	is fiscal years 2026 and 2027.

609.31				APPROPRIATIONS
	
609.32				Available for the Year
	
610.1				Ending June 30
	
610.2					2026
		2027

610.3
610.4	Sec. 2. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES
 	$
	1,351,499,000
	$
	1,417,679,000

610.5	Appropriations by Fund
	
610.6		2026
	2027
	
610.7	General
	1,047,846,000
	1,093,564,000
	
610.8
610.9	State Government 
Special Revenue
	732,000
	732,000
	
610.10	Federal TANF
	302,921,000
	323,383,000
	
610.11 	The amounts that may be spent for each 
610.12 	purpose are specified in the following sections.

610.13	Sec. 3. TANF MAINTENANCE OF EFFORT

610.14	Subdivision 1.Nonfederal Expenditures
 					
610.15 	The commissioner shall ensure that sufficient 
610.16 	qualified nonfederal expenditures are made 
610.17 	each year to meet the state's maintenance of 
610.18 	effort requirements of the TANF block grant 
610.19 	specified under Code of Federal Regulations, 
610.20 	title 45, section 263.1. In order to meet these 
610.21 	basic TANF maintenance of effort 
610.22 	requirements, the commissioner may report 
610.23 	as TANF maintenance of effort expenditures 
610.24 	only nonfederal money expended for allowable 
610.25 	activities listed in the following clauses:
610.26 	(1) MFIP cash, diversionary work program, 
610.27 	and food assistance benefits under Minnesota 
610.28 	Statutes, chapter 142G;
610.29 	(2) the child care assistance programs under 
610.30 	Minnesota Statutes, sections 142E.04 and 
610.31 	142E.08, and county child care administrative 
610.32 	costs under Minnesota Statutes, section 
610.33 	142E.02, subdivision 9;
611.1 	(3) state and county MFIP administrative costs 
611.2 	under Minnesota Statutes, chapters 142G and 
611.3 	256K;
611.4 	(4) state, county, and Tribal MFIP 
611.5 	employment services under Minnesota 
611.6 	Statutes, chapters 142G and 256K;
611.7 	(5) expenditures made on behalf of legal 
611.8 	noncitizen MFIP recipients who qualify for 
611.9 	the MinnesotaCare program under Minnesota 
611.10 	Statutes, chapter 256L;
611.11 	(6) qualifying working family credit 
611.12 	expenditures under Minnesota Statutes, section 
611.13 	290.0671, and child tax credit expenditures 
611.14 	under Minnesota Statutes, section 290.0661;
611.15 	(7) qualifying Minnesota education credit 
611.16 	expenditures under Minnesota Statutes, section 
611.17 	290.0674; and
611.18 	(8) qualifying Head Start expenditures under 
611.19 	Minnesota Statutes, section 142D.12.

611.20	Subd. 2.Nonfederal Expenditures; Reporting
 					
611.21 	For the activities listed in subdivision 1, 
611.22 	clauses (2) to (8), the commissioner may 
611.23 	report only expenditures that are excluded 
611.24 	from the definition of assistance under Code 
611.25 	of Federal Regulations, title 45, section 
611.26 	260.31.

611.27	Subd. 3.Supplemental Expenditures
 					
611.28 	The commissioner may supplement the 
611.29 	maintenance of effort claim with working 
611.30 	family credit expenditures or other qualified 
611.31 	expenditures to the extent such expenditures 
611.32 	are otherwise available after considering the 
611.33 	expenditures allowed in this section.

612.1	Subd. 4.Reduction of Appropriations; Exception
 					
612.2 	The requirement in Minnesota Statutes, section 
612.3 	142A.06, subdivision 3, that federal grants or 
612.4 	aids secured or obtained under that subdivision 
612.5 	be used to reduce any direct appropriations 
612.6 	provided by law does not apply if the grants 
612.7 	or aids are federal TANF funds.

612.8	Subd. 5.IT Appropriations Generally
 					
612.9 	This appropriation includes funds for 
612.10 	information technology projects, services, and 
612.11 	support. Funding for information technology 
612.12 	project costs must be incorporated into the 
612.13 	service level agreement and paid to Minnesota 
612.14 	IT Services by the Department of Children, 
612.15 	Youth, and Families under the rates and 
612.16 	mechanism specified in that agreement.

612.17	Subd. 6.Receipts for Systems Project
 					
612.18 	Appropriations and federal receipts for 
612.19 	information technology systems projects for 
612.20 	MAXIS, PRISM, ISDS, and SSIS must be 
612.21 	deposited in the state systems account 
612.22 	authorized in Minnesota Statutes, section 
612.23 	142A.04. Money appropriated for information 
612.24 	technology projects approved by the 
612.25 	commissioner of Minnesota IT Services, 
612.26 	funded by the legislature, and approved by the 
612.27 	commissioner of management and budget may 
612.28 	be transferred from one project to another and 
612.29 	from development to operations as the 
612.30 	commissioner of children, youth, and families 
612.31 	considers necessary. Any unexpended balance 
612.32 	in the appropriation for these projects does not 
612.33 	cancel and is available for ongoing 
612.34 	development and operations.

613.1
613.2	Subd. 7.Federal SNAP Education and Training 
Grants
 					
613.3 	Federal funds available during fiscal years 
613.4 	2026 and 2027 for Supplemental Nutrition 
613.5 	Assistance Program Education and Training 
613.6 	and SNAP Quality Control Performance 
613.7 	Bonus grants are appropriated to the 
613.8 	commissioner of human services for the 
613.9 	purposes allowable under the terms of the 
613.10 	federal award. This subdivision is effective 
613.11 	the day following final enactment.

613.12
613.13
613.14	Sec. 4. OPERATIONS AND 
ADMINISTRATION; AGENCY-WIDE 
SUPPORTS

613.15	Subdivision 1.Total Appropriation
 	$
	108,490,000
	$
	101,268,000

613.16	Appropriations by Fund
	
613.17		2026
	2027
	
613.18	General
	107,658,000
	102,100,000
	
613.19
613.20	State Government 
Special Revenue
	732,000
	732,000
	
613.21	Federal TANF
	100,000
	100,000

613.22	Subd. 2.Information Technology
 					
613.23 	$10,000,000 in fiscal year 2026 is from the 
613.24 	general fund for information technology 
613.25 	improvements to SSIS. This is a onetime 
613.26 	appropriation.

613.27	Subd. 3.Child Welfare Fiscal Analysis
 					
613.28 	$250,000 in fiscal year 2026 is from the 
613.29 	general fund to contract with a third-party 
613.30 	consultant to conduct an independent fiscal 
613.31 	analysis of the child welfare system in 
613.32 	Minnesota. This is a onetime appropriation 
613.33 	and is available until June 30, 2029.

614.1	Subd. 4.Base Level Adjustment
 					
614.2 	The general fund base for this section is 
614.3 	$101,100,000 in fiscal year 2028 and 
614.4 	$101,100,000 in fiscal year 2029.

614.5
614.6
614.7	Sec. 5. OPERATIONS AND 
ADMINISTRATION; CHILD SAFETY AND 
PERMANENCY
 	$
	17,232,000
	$
	16,945,000

614.8
614.9	Sec. 6. OPERATIONS AND 
ADMINISTRATION; EARLY CHILDHOOD
 	$
	17,166,000
	$
	12,698,000

614.10
614.11	Subdivision 1.Child Care Attendance and 
Record-Keeping System
 					
614.12 	$5,500,000 in fiscal year 2026 and $1,000,000 
614.13 	in fiscal year 2027 are to develop a statewide 
614.14 	electronic attendance and record-keeping 
614.15 	system for the child care assistance program. 
614.16 	The base for this appropriation is $0 in fiscal 
614.17 	year 2028 and $0 in fiscal year 2029.

614.18	Subd. 2.Base Level Adjustment
 					
614.19 	The general fund base for this section is 
614.20 	$11,698,000 in fiscal year 2028 and 
614.21 	$11,698,000 in fiscal year 2029.

614.22
614.23
614.24	Sec. 7. OPERATIONS AND 
ADMINISTRATION; ECONOMIC 
OPPORTUNITY AND YOUTH SERVICES
 	$
	4,110,000
	$
	3,562,000
	
614.25 	Scan of and Report on Out-of-School and 
614.26 	Youth Programming. $402,000 in fiscal year 
614.27 	2026 is to conduct the scan of and prepare the 
614.28 	out-of-school and youth programming report. 
614.29 	This is a onetime appropriation.

614.30
614.31	Sec. 8. OPERATIONS AND 
ADMINISTRATION; FAMILY WELL-BEING
 	$
	14,147,000
	$
	14,147,000

614.32	Appropriations by Fund
	
614.33		2026
	2027
	
614.34	General
	10,471,000
	10,471,000
	
614.35	Federal TANF
	3,676,000
	3,676,000

615.1
615.2	Sec. 9. FORECASTED PROGRAMS; 
MFIP/DWP
 	$
	230,473,000
	$
	268,167,000

615.3	Appropriations by Fund
	
615.4		2026
	2027
	
615.5	General
	99,272,000
	116,504,000
	
615.6	Federal TANF
	131,201,000
	151,663,000

615.7
615.8	Sec. 10. FORECASTED PROGRAMS; MFIP 
CHILD CARE ASSISTANCE
 	$
	100,244,000
	$
	137,333,000

615.9615.10
	Sec. 11. FORECASTED PROGRAMS; 
NORTHSTAR CARE FOR CHILDREN
 	$
	110,214,000
	$
	116,160,000

615.11
615.12	Sec. 12. GRANT PROGRAMS; SUPPORT 
SERVICES GRANTS
 	$
	111,359,000
	$
	111,359,000

615.13	Subdivision 1.Total Appropriations

615.14	Appropriations by Fund
	
615.15		2026
	2027
	
615.16	General
	14,908,000
	14,908,000
	
615.17	Federal TANF
	96,451,000
	96,451,000

615.18	Subd. 2.MFIP Consolidated Fund Grants
 					
615.19 	$8,715,000 in fiscal year 2026 and $8,715,000 
615.20 	in fiscal year 2027 are from the general fund 
615.21 	for MFIP consolidated fund grants under 
615.22 	Minnesota Statutes, section 142G.76.

615.23	Subd. 3.Fraud Prevention Investigation Grants
 					
615.24 	$1,768,000 in fiscal year 2026 and $1,768,000 
615.25 	in fiscal year 2027 are from the general fund 
615.26 	for fraud prevention investigation grants to 
615.27 	counties under Minnesota Statutes, section 
615.28 	256.983.

615.29
615.30	Subd. 4.Injury Protection for Work Experience 
Participants Grants
 					
615.31 	$10,000 in fiscal year 2026 and $10,000 in 
615.32 	fiscal year 2027 are from the general fund for 
615.33 	grants for injury protection for work 
615.34 	experience participants under Minnesota 
615.35 	Statutes, section 142G.62.

616.1
616.2
616.3	Sec. 13. GRANT PROGRAMS; BASIC 
SLIDING FEE CHILD ASSISTANCE CARE 
GRANTS
 	$
	137,768,000
	$
	135,212,000

616.4
616.5	Sec. 14. GRANT PROGRAMS; CHILD CARE 
DEVELOPMENT GRANTS
 	$
	139,120,000
	$
	138,819,000

616.6
616.7	Subdivision 1.St. Cloud Area School District 
Preschool Programs Grant
 					
616.8 	$301,000 in fiscal year 2026 is for a grant to 
616.9 	Independent School District No. 742 for the 
616.10 	Preschool 4 Success program operated with 
616.11 	the Rotary Club of St. Cloud. This is a onetime 
616.12 	appropriation and is available until June 30, 
616.13 	2027.

616.14
616.15	Subd. 2.Family, Friend, and Neighbor Grant 
Program
 					
616.16 	$2,225,000 in fiscal year 2026 and $2,225,000 
616.17 	in fiscal year 2027 are from the general fund 
616.18 	for the family, friend, and neighbor grant 
616.19 	program under Minnesota Statutes, section 
616.20 	142D.24.

616.21
616.22	Subd. 3.Grants for Child Care Resource and 
Referral Programs
 					
616.23 	$1,007,000 in fiscal year 2026 and $1,007,000 
616.24 	in fiscal year 2027 are from the general fund 
616.25 	for grants to organizations operating child care 
616.26 	resource and referral programs under 
616.27 	Minnesota Statutes, section 142E.31.

616.28
616.29	Subd. 4.Child Care Workforce Development 
Grants Administration
 					
616.30 	$1,300,000 in fiscal year 2026 and $1,300,000 
616.31 	in fiscal year 2027 are from the general fund 
616.32 	for a grant to the statewide child care resource 
616.33 	and referral network to administer child care 
616.34 	workforce development grants under 
616.35 	Minnesota Statutes, section 142E.31, 
616.36 	subdivision 5, clause (10).

617.1
617.2	Subd. 5.Great Start Compensation Support 
Payments
 					
617.3 	$129,887,000 in fiscal year 2026 and 
617.4 	$129,887,000 in fiscal year 2027 are from the 
617.5 	general fund for the great start compensation 
617.6 	support payments under Minnesota Statutes, 
617.7 	section 142D.21.

617.8
617.9	Subd. 6.Teacher Education and Compensation 
Helps Grants
 					
617.10 	$695,000 in fiscal year 2026 and $695,000 in 
617.11 	fiscal year 2027 are from the general fund for 
617.12 	teacher education and compensation helps 
617.13 	(TEACH) grants under Minnesota Statutes, 
617.14 	section 142D.31.

617.15
617.16	Subd. 7.Early Childhood Registered 
Apprenticeship Grant Program
 					
617.17 	$1,000,000 in fiscal year 2026 and $1,000,000 
617.18 	in fiscal year 2027 are from the general fund 
617.19 	for early childhood registered apprenticeship 
617.20 	grants under Minnesota Statutes, section 
617.21 	142D.32.

617.22
617.23
617.24	Subd. 8.Retaining Early Educators Through 
Attaching Incentives Now (REETAIN) Grant 
Program
 					
617.25 	$750,000 in fiscal year 2026 and $750,000 in 
617.26 	fiscal year 2027 are from the general fund for 
617.27 	REETAIN grants under Minnesota Statutes, 
617.28 	section 142D.30.

617.29
617.30	Sec. 15. GRANT PROGRAMS; CHILD 
SUPPORT ENFORCEMENT GRANTS
 	$
	50,000
	$
	50,000

617.31
617.32	Sec. 16. GRANT PROGRAMS; CHILDREN'S 
SERVICES GRANTS
 	$
	41,704,000
	$
	41,705,000

617.33
617.34	Subdivision 1.Restorative Practices Initiatives 
Grants
 					
617.35 	The base funding for restorative practices 
617.36 	initiatives grants under Minnesota Statutes, 
618.1 	section 142A.76, subdivision 5, is reduced by 
618.2 	$1,500,000 in fiscal year 2026 and $1,500,000 
618.3 	in fiscal year 2027.

618.4
618.5	Subd. 2.Fostering Connections to Success and 
Increasing Adoptions Act
 					
618.6 	The commissioner shall allocate funds from 
618.7 	the state's savings from the Fostering 
618.8 	Connections to Success and Increasing 
618.9 	Adoptions Act's expanded eligibility for Title 
618.10 	IV-E adoption assistance as required in 
618.11 	Minnesota Statutes, section 142A.61, and as 
618.12 	allowable under federal law. Additional 
618.13 	savings to the state as a result of the Fostering 
618.14 	Connections to Success and Increasing 
618.15 	Adoptions Act's expanded eligibility for Title 
618.16 	IV-E adoption assistance is for postadoption, 
618.17 	foster care, adoption, and kinship services, 
618.18 	including a parent-to-parent support network 
618.19 	and as allowable under federal law.

618.20	Subd. 3.Indian Child Welfare Grants
 					
618.21 	$6,122,000 in fiscal year 2026 and $6,122,000 
618.22 	in fiscal year 2027 are from the general fund 
618.23 	for Indian child welfare grants under 
618.24 	Minnesota Statutes, section 260.785.

618.25
618.26	Subd. 4.Family First Prevention Services Act 
Support and Development Grants
 					
618.27 	$4,100,000 in fiscal year 2026 and $4,100,000 
618.28 	in fiscal year 2027 are from the general fund 
618.29 	for family first prevention services act support 
618.30 	and development grants under Minnesota 
618.31 	Statutes, section 142A.45.

618.32
618.33	Subd. 5.Family First Prevention Services Act 
Kinship Navigator Program Grants
 					
618.34 	$506,000 in fiscal year 2026 and $507,000 in 
618.35 	fiscal year 2027 are from the general fund for 
619.1 	family first prevention services act kinship 
619.2 	navigator program grants under Minnesota 
619.3 	Statutes, section 142A.451.

619.4
619.5
619.6	Subd. 6.Family First Prevention Services Act 
Prevention and Early Intervention Allocation 
Grants
 					
619.7 	$6,000,000 in fiscal year 2026 and $6,000,000 
619.8 	in fiscal year 2027 are from the general fund 
619.9 	for family first prevention services act 
619.10 	prevention and early intervention allocation 
619.11 	grants under Minnesota Statutes, section 
619.12 	142A.452.

619.13
619.14	Subd. 7.Grants for Court-Appointed Counsel 
in Child Protection Proceedings
 					
619.15 	$520,000 in fiscal year 2026 and $520,000 in 
619.16 	fiscal year 2027 are from the general fund for 
619.17 	county costs, including administrative costs 
619.18 	to obtain Title IV-E federal reimbursement, 
619.19 	related to court-appointed counsel in child 
619.20 	protection proceedings pursuant to Minnesota 
619.21 	Statutes, section 260C.163, subdivision 3, 
619.22 	under Laws 2021, First Special Session 
619.23 	chapter 7, article 16, section 2, subdivision 22, 
619.24 	paragraph (b).

619.25	Subd. 8.Quality Parenting Initiative Grants
 					
619.26 	$100,000 in fiscal year 2026 and $100,000 in 
619.27 	fiscal year 2027 are from the general fund for 
619.28 	a grant to Quality Parenting Initiative 
619.29 	Minnesota for quality parenting initiative 
619.30 	grants under Minnesota Statutes, section 
619.31 	245.0962.

619.32
619.33	Subd. 9.Child Protection Grants to Address 
Child Welfare Disparities
 					
619.34 	$1,650,000 in fiscal year 2026 and $1,650,000 
619.35 	in fiscal year 2027 are from the general fund 
620.1 	for child protection grants to address child 
620.2 	welfare disparities under Minnesota Statutes, 
620.3 	section 142A.417.

620.4
620.5	Subd. 10.Grants for American Indian Child 
Welfare Projects
 					
620.6 	$32,901,000 in fiscal year 2026 and 
620.7 	$32,901,000 in fiscal year 2027 are from the 
620.8 	general fund for grants for American Indian 
620.9 	child welfare projects under Minnesota 
620.10 	Statutes, section 142A.03, subdivision 9.

620.11
620.12	Subd. 11.Grant for the White Earth Band of 
Ojibwe Human Services Project
 					
620.13 	$1,400,000 in fiscal year 2026 and $1,400,000 
620.14 	in fiscal year 2027 are from the general fund 
620.15 	for a grant to the White Earth Band of Ojibwe 
620.16 	for the direct implementation and 
620.17 	administrative costs of the White Earth Band 
620.18 	of Ojibwe human services project under Laws 
620.19 	2011, First Special Session chapter 9, article 
620.20 	9, section 18.

620.21
620.22	Subd. 12.Grant for Red Lake Nation Human 
Services Initiative Project
 					
620.23 	$500,000 in fiscal year 2026 and $500,000 in 
620.24 	fiscal year 2027 are from the general fund for 
620.25 	a grant to the Red Lake Nation for the direct 
620.26 	implementation and administrative costs of 
620.27 	the Red Lake human services initiative project 
620.28 	authorized under Minnesota Statutes, sections 
620.29 	256.01, subdivision 2, paragraph (a), clause 
620.30 	(7), and 142A.03, subdivision 2, paragraph 
620.31 	(e), clause (7).

621.1
621.2
621.3	Subd. 13.African American and 
Disproportionately Represented Family 
Preservation Grants
 					
621.4 	$1,000,000 in fiscal year 2026 and $1,000,000 
621.5 	in fiscal year 2027 are from the general fund 
621.6 	for African American and disproportionately 
621.7 	represented family preservation grants under 
621.8 	Minnesota Statutes, section 260.693.

621.9621.10
	Subd. 14.African American Family Preservation 
and Child Welfare Disproportionality Act
 					
621.11 	$3,251,000 in fiscal 2026 and $3,110,000 in 
621.12 	fiscal year 2027 are from the general fund for 
621.13 	the commissioner of children, youth, and 
621.14 	families to implement the African American 
621.15 	Family Preservation and Child Welfare 
621.16 	Disproportionality Act under Minnesota 
621.17 	Statutes, sections 260.61 to 260.693.

621.18
621.19	Sec. 17. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICE GRANTS
 	$
	87,984,000
	$
	87,984,000

621.20	Subdivision 1.Child Welfare Allocation Grants
 					
621.21 	$23,870,000 in fiscal year 2026 and 
621.22 	$23,870,000 in fiscal year 2027 are from the 
621.23 	general fund for child welfare allocation grants 
621.24 	under Minnesota Statutes, section 256M.41.

621.25
621.26	Subd. 2.Opiate Epidemic Response Fund Child 
Protection Grants
 					
621.27 	$3,243,000 in fiscal year 2026 and $3,243,000 
621.28 	in fiscal year 2027 are from the general fund 
621.29 	for opiate epidemic response fund child 
621.30 	protection grants under Minnesota Statutes, 
621.31 	section 256.043, subdivision 3, paragraph (m).

621.32
621.33	Subd. 3.Child Welfare Staff Allocation for 
Tribes
 					
621.34 	$799,000 in fiscal year 2026 and $799,000 in 
621.35 	fiscal year 2027 are from the general fund for 
622.1 	grants to Tribes for child welfare staffing 
622.2 	under Minnesota Statutes, section 260.786.

622.3
622.4	Sec. 18. GRANT PROGRAMS; CHILD AND 
ECONOMIC SUPPORT GRANTS
 	$
	18,216,000
	$
	18,216,000

622.5	Subdivision 1.Regional Food Bank Grants
 					
622.6 	$3,000,000 in fiscal year 2026 and $3,000,000 
622.7 	in fiscal year 2027 are for regional food bank 
622.8 	grants under Minnesota Statutes, section 
622.9 	142F.16. This is a onetime appropriation and 
622.10 	is available until June 30, 2027.

622.11	Subd. 2.Minnesota Food Shelf Program
 					
622.12 	$2,000,000 in fiscal year 2026 and $2,000,000 
622.13 	in fiscal year 2027 are for food shelf programs 
622.14 	grants under Minnesota Statutes, section 
622.15 	142F.14. This is a onetime appropriation and 
622.16 	is available until June 30, 2027.

622.17	Subd. 3.Prepared Meals Food Relief Grants
 					
622.18 	$1,000,000 in fiscal year 2026 and $1,000,000 
622.19 	in fiscal year 2027 are for prepared meals food 
622.20 	relief grants under Minnesota Statutes, section 
622.21 	142F.141. This is a onetime appropriation and 
622.22 	is available until June 30, 2027.

622.23
622.24	Subd. 4.Financial Assistance for Community 
Action Agencies
 					
622.25 	$4,928,000 in fiscal year 2026 and $4,928,000 
622.26 	in fiscal year 2027 are from the general fund 
622.27 	for community action grants under Minnesota 
622.28 	Statutes, section 142F.30.

622.29	Subd. 5.Family Assets for Independence Grants
 					
622.30 	$325,000 in fiscal year 2026 and $325,000 in 
622.31 	fiscal year 2027 are from the general fund for 
622.32 	family assets for independence grants under 
622.33 	Minnesota Statutes, section 142F.20.

623.1	Subd. 6.Diaper Distribution Grants
 					
623.2 	$553,000 in fiscal year 2026 and $553,000 in 
623.3 	fiscal year 2027 are from the general fund for 
623.4 	diaper distribution grants under Minnesota 
623.5 	Statutes, section 142A.42.

623.6
623.7	Subd. 7.Supplemental Nutrition Assistance 
Outreach Program Grants
 					
623.8 	$500,000 in fiscal year 2026 and $500,000 in 
623.9 	fiscal year 2027 are from the general fund for 
623.10 	supplemental nutrition assistance outreach 
623.11 	program grants under Minnesota Statutes, 
623.12 	section 142F.12.

623.13
623.14	Subd. 8.Minnesota Food Assistance Program 
Grants
 					
623.15 	$1,675,000 in fiscal year 2026 and $1,675,000 
623.16 	in fiscal year 2027 are from the general fund 
623.17 	for Minnesota food assistance program grants 
623.18 	under Minnesota Statutes, section 142F.13.

623.19
623.20	Subd. 9.American Indian Food Sovereignty 
Funding Program Grants
 					
623.21 	$2,000,000 in fiscal year 2026 and $2,000,000 
623.22 	in fiscal year 2027 are from the general fund 
623.23 	for American Indian food sovereignty funding 
623.24 	program grants under Minnesota Statutes, 
623.25 	section 142F.15.

623.26	Subd. 10.Food Shelf Grants
 					
623.27 	$4,318,000 in fiscal year 2026 and $4,318,000 
623.28 	in fiscal year 2027 are from the general fund 
623.29 	for food shelf grants under Minnesota Statutes, 
623.30 	section 142F.14.

623.31	Subd. 11.Base Level Adjustment
 					
623.32 	The general fund base for this section is 
623.33 	$12,216,000 in fiscal year 2028 and 
623.34 	$12,216,000 in fiscal year 2029.

624.1
624.2	Sec. 19. GRANT PROGRAMS; EARLY 
LEARNING GRANTS
 	$
	132,838,000
	$
	132,838,000

624.3
624.4	Subdivision 1.Early Childhood Literacy 
Programs
 					
624.5 	The base funding for early childhood literacy 
624.6 	programs under Minnesota Statutes, section 
624.7 	142D.12, subdivision 3, is reduced by 
624.8 	$7,950,000 in fiscal year 2026 and $7,950,000 
624.9 	in fiscal year 2027.

624.10	Subd. 2.Grants for Early Learning Scholarships
 					
624.11 	$97,290,000 in fiscal year 2026 and 
624.12 	$97,290,000 in fiscal year 2027 are from the 
624.13 	general fund for early learning scholarships 
624.14 	grants under Minnesota Statutes, section 
624.15 	142D.25.

624.16
624.17	Subd. 3.Early Childhood Family Education 
Grants
 					
624.18 	$39,779,000 in fiscal year 2026 and 
624.19 	$41,444,000 in fiscal year 2027 are from the 
624.20 	general fund for early childhood family 
624.21 	education grants under Minnesota Statutes, 
624.22 	section 142D.11.

624.23
624.24	Subd. 4.Early Childhood Literacy Program 
Grants
 					
624.25 	$7,950,000 in fiscal year 2026 and $7,950,000 
624.26 	in fiscal year 2027 are from the general fund 
624.27 	for early childhood literacy program grants 
624.28 	under Minnesota Statutes, section 142D.12.

624.29
624.30	Subd. 5.Grants for Grow Your Own Early 
Childhood and Family Educator Programs
 					
624.31 	$325,000 in fiscal year 2025 and $325,000 in 
624.32 	fiscal year 2027 are from the general fund for 
624.33 	grants for grow your own early childhood and 
624.34 	family educator programs under Minnesota 
624.35 	Statutes, section 142D.33.

625.1	Subd. 6.Head Start Program Grants
 					
625.2 	$34,398,000 in fiscal year 2026 and 
625.3 	$34,398,000 in fiscal year 2027 are from the 
625.4 	general fund for head start program grants 
625.5 	under Minnesota Statutes, section 142D.12.

625.6	Subd. 7.School Readiness Plus Program Grants
 					
625.7 	$900,000 in fiscal year 2026 and $900,000 in 
625.8 	fiscal year 2027 are from the general fund for 
625.9 	school readiness plus program grants under 
625.10 	Minnesota Statutes, section 142D.07.

625.11	Subd. 8.Reach Out and Read Minnesota Grant
 					
625.12 	$250,000 in fiscal year 2026 and $250,000 in 
625.13 	fiscal year 2027 are for a grant to Reach Out 
625.14 	and Read Minnesota to establish a statewide 
625.15 	plan that encourages early childhood 
625.16 	development through a network of health care 
625.17 	clinics under Laws 2023, chapter 54, section 
625.18 	20, subdivision 20.

625.19	Subd. 9.Grants for School Readiness Programs
 					
625.20 	$33,683,000 in fiscal year 2026 and 
625.21 	$33,683,000 in fiscal year 2027 are from the 
625.22 	general fund for grants for school readiness 
625.23 	programs under Minnesota Statutes, section 
625.24 	142D.05.

625.25
625.26	Sec. 20. GRANT PROGRAMS; YOUTH 
SERVICES GRANTS
 	$
	8,891,000
	$
	8,891,000

625.27
625.28	Subdivision 1.Grants-in-Aid to Youth 
Intervention Programs
 					
625.29 	$6,391,000 in fiscal year 2026 and $6,391,000 
625.30 	in fiscal year 2027 are from the general fund 
625.31 	for grants to youth intervention programs 
625.32 	under Minnesota Statutes, section 142A.43.

626.1	Subd. 2.Office of Restorative Practices
 					
626.2 	$2,500,000 in fiscal year 2026 and $2,500,000 
626.3 	in fiscal year 2027 are from the general fund 
626.4 	for the Office of Restorative Practices under 
626.5 	Minnesota Statutes, section 142A.76.

626.6	Sec. 21. TECHNICAL ACTIVITIES
 	$
	71,493,000
	$
	71,493,000
	
626.7 	This appropriation is from the federal TANF 
626.8 	fund.

626.9 	Sec. 22. TRANSFERS.
 626.10 		Subdivision 1.Programs and grants. The commissioner of children, youth, and families, 
626.11 	with the advance approval of the commissioner of management and budget, may transfer 
626.12 	unencumbered appropriation balances for the biennium ending June 30, 2027, within fiscal 
626.13 	years among MFIP; MFIP child care assistance under Minnesota Statutes, section 142E.08; 
626.14 	the entitlement portion of Northstar Care for Children under Minnesota Statutes, sections 
626.15 	142A.60 to 142A.612; and early childhood family education under Minnesota Statutes, 
626.16 	section 142D.11, between fiscal years of the biennium. The commissioner shall inform the 
626.17 	chairs and ranking minority members of the legislative committees with jurisdiction over 
626.18 	children and families finance and policy quarterly about transfers made under this 
626.19 	subdivision.
626.20 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
626.21 	may be transferred within the Department of Children, Youth, and Families as the 
626.22 	commissioner deems necessary, with the advance approval of the commissioner of 
626.23 	management and budget. The commissioner shall report to the chairs and ranking minority 
626.24 	members of the legislative committees with jurisdiction over children and families finance 
626.25 	quarterly about transfers made under this subdivision.
626.26 		Subd. 3.Temporary authority for interagency transfers with Department of Human 
626.27 	Services. Beginning July 1, 2025, and until September 30, 2025, administrative money may 
626.28 	be transferred between the Department of Children, Youth, and Families and Department 
626.29 	of Human Services or the Department of Education as the commissioners deem necessary, 
626.30 	with the advance approval of the commissioner of management and budget. The 
626.31 	commissioners shall report to the chairs and ranking minority members of the legislative 
626.32 	committees with jurisdiction over children and families finance and policy quarterly about 
626.33 	transfers made under this subdivision.

627.1 	Sec. 23. CANCELLATION; ESTABLISHING THE DEPARTMENT OF CHILDREN, 
627.2 	YOUTH, AND FAMILIES.
 627.3 	$8,500,000 of the fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, 
627.4 	article 20, section 12, paragraph (b), is canceled to the general fund.

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

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

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

627.13 	ARTICLE 26
627.14 	DEPARTMENT OF HEALTH APPROPRIATIONS

627.15	Section 1. HEALTH APPROPRIATIONS.
 	
627.16 	The sums shown in the columns marked "Appropriations" are appropriated to the 
627.17 	commissioner of health for the purposes specified in this article. The appropriations are 
627.18 	from the general fund, or another named fund, and are available for the fiscal years indicated 
627.19 	for each purpose. The figures "2026" and "2027" used in this article mean that the 
627.20 	appropriations listed under them are available for the fiscal year ending June 30, 2026, or 
627.21 	June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal 
627.22 	year 2027. "The biennium" is fiscal years 2026 and 2027.

627.23				APPROPRIATIONS
	
627.24				Available for the Year
	
627.25				Ending June 30
	
627.26					2026
		2027

627.27	Sec. 2. COMMISSIONER OF HEALTH
 	$
	434,678,000
	$
	431,109,000

627.28	Appropriations by Fund
	
627.29		2026
	2027
	
627.30	General
	271,963,000
	269,808,000
	
628.1
628.2	State Government 
Special Revenue
	96,237,000
	95,769,000
	
628.3	Health Care Access
	54,765,000
	53,819,000
	
628.4	Federal TANF
	11,713,000
	11,713,000
	
628.5 	The amounts that may be spent for each 
628.6 	purpose are specified in this article.

628.7	Sec. 3. HEALTH IMPROVEMENT

628.8	Subdivision 1.Total Appropriation
 	$
	291,695,000
	$
	286,591,000

628.9	Appropriations by Fund
	
628.10	General
	217,370,000
	214,658,000
	
628.11
628.12	State Government 
Special Revenue
	9,258,000
	9,258,000
	
628.13	Health Care Access
	53,354,000
	50,962,000
	
628.14	Federal TANF
	11,713,000
	11,713,000

628.15
628.16	Subd. 2.Substance Use Treatment, Recovery, 
and Prevention Grants
 					
628.17 	$3,000,000 in fiscal year 2026 and $3,000,000 
628.18 	in fiscal year 2027 are from the general fund 
628.19 	for substance use treatment, recovery, and 
628.20 	prevention grants under Minnesota Statutes, 
628.21 	section 342.72.

628.22
628.23	Subd. 3.Local and Tribal Public Health 
Cannabis Grants
 					
628.24 	$7,756,000 in fiscal year 2026 and $7,756,000 
628.25 	in fiscal year 2027 are from the general fund 
628.26 	for grants under Minnesota Statutes, section 
628.27 	144.197, subdivision 4.

628.28
628.29
628.30	Subd. 4.Cannabis and Substance Misuse 
Prevention and Education Programs; Youth 
Prevention and Education Program
 					
628.31 	$5,000,000 in fiscal year 2026 and $5,000,000 
628.32 	in fiscal year 2027 are from the general fund 
628.33 	for the youth prevention and education 
628.34 	program under the cannabis and substance 
628.35 	misuse prevention and education programs 
629.1 	under Minnesota Statutes, section 144.197, 
629.2 	subdivision 1.

629.3
629.4
629.5
629.6
629.7	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
 					
629.8 	$2,000,000 in fiscal year 2026 and $2,000,000 
629.9 	in fiscal year 2027 are from the general fund 
629.10 	for the prevention and education program for 
629.11 	pregnant and breastfeeding individuals and 
629.12 	individuals who may become pregnant under 
629.13 	the cannabis and substance misuse prevention 
629.14 	and education programs under Minnesota 
629.15 	Statutes, section 144.197, subdivision 2.

629.16
629.17
629.18	Subd. 6.Cannabis and Substance Misuse 
Prevention and Education Programs; Local and 
Tribal Health Departments
 					
629.19 	$10,000,000 in fiscal year 2026 and 
629.20 	$10,000,000 in fiscal year 2027 are from the 
629.21 	general fund for the local and Tribal health 
629.22 	departments under the cannabis and substance 
629.23 	misuse prevention and education programs 
629.24 	under Minnesota Statutes, section 144.197, 
629.25 	subdivision 4.

629.26
629.27	Subd. 7.Cannabis Data Collection and Biennial 
Reports
 					
629.28 	$493,000 in fiscal year 2026 and $493,000 in 
629.29 	fiscal year 2027 are from the general fund for 
629.30 	cannabis data collection and biennial reports 
629.31 	under Minnesota Statutes, section 144.196.

629.32	Subd. 8.Administration of Expungement Orders
 					
629.33 	$71,000 in fiscal year 2026 and $71,000 in 
629.34 	fiscal year 2027 are from the general fund for 
629.35 	the administration of expungement orders 
630.1 	under Laws 2023, chapter 63, article 9, section 
630.2 	10, subdivision 6.

630.3
630.4	Subd. 9.Minnesota Poison Information Centers; 
Establishment
 					
630.5 	$810,000 in fiscal year 2026 and $810,000 in 
630.6 	fiscal year 2027 are from the general fund for 
630.7 	Minnesota poison information centers under 
630.8 	Minnesota Statutes, section 145.93.

630.9	Subd. 10.Testing
 					
630.10 	$690,000 in fiscal year 2026 and $690,000 in 
630.11 	fiscal year 2027 are from the general fund for 
630.12 	testing under Laws 2023, chapter 63, article 
630.13 	9, section 10, subdivision 9.

630.14
630.15	Subd. 11.Sexual and Reproductive Health 
Services Grants
 					
630.16 	$11,550,000 in fiscal year 2026 and 
630.17 	$11,550,000 in fiscal year 2027 are from the 
630.18 	general fund for sexual and reproductive 
630.19 	health services grants under Minnesota 
630.20 	Statutes, section 145.925.

630.21
630.22	Subd. 12.Fetal Alcohol Syndrome Effects; 
Drug-Exposed Infant
 					
630.23 	$3,222,000 in fiscal year 2026 and $3,222,000 
630.24 	in fiscal year 2027 are from the general fund 
630.25 	for fetal alcohol syndrome effects for drug 
630.26 	exposed infant grants under Minnesota 
630.27 	Statutes, section 145.9265.

630.28	Subd. 13.Fetal Alcohol Spectrum Disorders
 					
630.29 	$....... in fiscal year 2026 and $....... in fiscal 
630.30 	year 2027 are from the general fund for fetal 
630.31 	alcohol spectrum disorders grants under 
630.32 	Minnesota Statutes, section 145.267.

631.1	Subd. 14.Hearing Aid Loan Bank Grants
 					
631.2 	$69,000 in fiscal year 2026 and $69,000 in 
631.3 	fiscal year 2027 are from the general fund for 
631.4 	hearing aid loan bank grants.

631.5	Subd. 15.Special Health Needs Grants
 					
631.6 	$160,000 in fiscal year 2026 and $160,000 in 
631.7 	fiscal year 2027 are from the general fund for 
631.8 	special health needs grants.

631.9631.10
	Subd. 16.Minnesota Birth Defects Information 
System
 					
631.11 	$432,000 in fiscal year 2026 and $432,000 in 
631.12 	fiscal year 2027 are from the general fund for 
631.13 	the Minnesota birth defects information system 
631.14 	under Minnesota Statutes, section 145.2215.

631.15
631.16
631.17	Subd. 17.Early Hearing Detection and 
Intervention Program; Support Services for 
Families
 					
631.18 	$590,000 in fiscal year 2026 and $590,000 in 
631.19 	fiscal year 2027 are from the general fund for 
631.20 	the early hearing detection and intervention 
631.21 	programs; support services for families, direct 
631.22 	hearing loss specific parent-to-parent 
631.23 	assistance under Minnesota Statutes, section 
631.24 	144.966, subdivision 3a, paragraph (a), clause 
631.25 	(1).

631.26
631.27
631.28	Subd. 18.Early Hearing Detection and 
Intervention Program; Support Services for 
Families
 					
631.29 	$156,000 in fiscal year 2026 and $156,000 in 
631.30 	fiscal year 2027 are from the general fund for 
631.31 	the early hearing detection and intervention 
631.32 	programs; support services for families, 
631.33 	individualized deaf or hard-of-hearing mentors 
631.34 	who provide education under Minnesota 
632.1 	Statutes, section 144.966, subdivision 3a, 
632.2 	paragraph (a), clause (2).

632.3	Subd. 19.Nurse-Family Partnership Programs
 					
632.4 	$2,000,000 in fiscal year 2026 and $2,000,000 
632.5 	in fiscal year 2027 are from the general fund 
632.6 	for the nurse-family partnership programs 
632.7 	under Minnesota Statutes, section 145A.145.

632.8
632.9	Subd. 20.Home Visiting for Pregnant Women 
and Families with Young Children
 					
632.10 	$15,345,000 in fiscal year 2026 and 
632.11 	$15,345,000 in fiscal year 2027 are from the 
632.12 	general fund for home visiting for pregnant 
632.13 	women and families with young children 
632.14 	under Minnesota Statutes, section 145.87.

632.15	Subd. 21.Improving Infant Health Grants
 					
632.16 	$1,000,000 in fiscal year 2026 and $1,000,000 
632.17 	in fiscal year 2027 are from the general fund 
632.18 	for improving infant health grants under 
632.19 	Minnesota Statutes, section 145.9574, 
632.20 	subdivision 2.

632.21
632.22	Subd. 22.Developmental and Social-Emotional 
Screening with Follow-Up
 					
632.23 	$500,000 in fiscal year 2026 and $500,000 in 
632.24 	fiscal year 2027 are from the general fund for 
632.25 	developmental and social-emotional screening 
632.26 	with follow-up under Minnesota Statutes, 
632.27 	section 145.9575.

632.28
632.29	Subd. 23.Promising Practice Home Visiting 
Program
 					
632.30 	$1,800,000 in fiscal year 2026 and $1,800,000 
632.31 	in fiscal year 2027 are from the general fund 
632.32 	for the promising practice home visiting 
632.33 	program under Minnesota Statutes, section 
632.34 	145.87, subdivision 1, paragraph (e).

633.1	Subd. 24.School-Based Health Centers
 					
633.2 	$2,300,000 in fiscal year 2026 and $2,300,000 
633.3 	in fiscal year 2027 are from the general fund 
633.4 	for school-based health centers under 
633.5 	Minnesota Statutes, section 145.903.

633.6
633.7	Subd. 25.Comprehensive Drug Overdose and 
Morbidity Prevention Act
 					
633.8 	$370,000 in fiscal year 2026 and $370,000 in 
633.9 	fiscal year 2027 are from the general fund for 
633.10 	the comprehensive drug overdose and 
633.11 	morbidity prevention act under Minnesota 
633.12 	Statutes, section 144.0528.

633.13	Subd. 26.Local Public Health Grant
 					
633.14 	$28,665,000 in fiscal year 2026 and 
633.15 	$28,665,000 in fiscal year 2027 are from the 
633.16 	general fund for local public health grants 
633.17 	under Minnesota Statutes, section 145A.131.

633.18	Subd. 27.Tobacco Use Prevention
 					
633.19 	$4,921,000 in fiscal year 2026 and $4,921,000 
633.20 	in fiscal year 2027 are from the general fund 
633.21 	for tobacco use prevention under Minnesota 
633.22 	Statutes, section 144.396.

633.23	Subd. 28.Public Health Infrastructure Funds
 					
633.24 	$6,000,000 in fiscal year 2026 and $6,000,000 
633.25 	in fiscal year 2027 are from the general fund 
633.26 	for public health infrastructure funds under 
633.27 	Laws 2023, chapter 70, article 20, section 20, 
633.28 	subdivision 2, paragraph (d).

633.29
633.30	Subd. 29.Funding Formula for Community 
Health Boards
 					
633.31 	$9,844,000 in fiscal year 2026 and $9,844,000 
633.32 	in fiscal year 2027 are from the general fund 
633.33 	for funding formula for community health 
634.1 	boards grants for funding formula for 
634.2 	foundational public health responsibilities 
634.3 	under Minnesota Statutes, section 145A.131, 
634.4 	subdivision 1, paragraph (f).

634.5	Subd. 30.Public Health AmeriCorps
 					
634.6 	$321,000 in fiscal year 2026 and $321,000 in 
634.7 	fiscal year 2027 are from the general fund for 
634.8 	Public Health AmeriCorps under Minnesota 
634.9 	Statutes, section 144.0759.

634.10
634.11
634.12	Subd. 31.Cannabis and Substance Misuse 
Prevention and Education Programs; Local and 
Tribal Health Departments
 					
634.13 	$3,756,000 in fiscal year 2026 and $3,756,000 
634.14 	in fiscal year 2027 are from the general fund 
634.15 	for the cannabis and substance misuse 
634.16 	prevention and education program for local 
634.17 	and Tribal health departments under 
634.18 	Minnesota Statutes, section 144.197, 
634.19 	subdivision 4.

634.20
634.21
634.22	Subd. 32.Cannabis and Substance Misuse 
Prevention and Education Programs; Local and 
Tribal Health Departments
 					
634.23 	$1,500,000 in fiscal year 2026 and $1,500,000 
634.24 	in fiscal year 2027 are from the general fund 
634.25 	for the cannabis and substance misuse 
634.26 	prevention and education program for local 
634.27 	and Tribal health departments under 
634.28 	Minnesota Statutes, section 144.197, 
634.29 	subdivision 4.

634.30
634.31
634.32	Subd. 33.Local and Tribal Public Health 
Emergency Preparedness and Response Grant 
Program
 					
634.33 	$8,400,000 in fiscal year 2026 and $8,400,000 
634.34 	in fiscal year 2027 are from the general fund 
634.35 	for the local and Tribal public health 
634.36 	emergency preparedness and response grant 
635.1 	program under Minnesota Statutes, section 
635.2 	145A.135.

635.3	Subd. 34.Special Grants
 					
635.4 	$500,000 in fiscal year 2026 and $500,000 in 
635.5 	fiscal year 2027 are from the general fund for 
635.6 	special grants under Minnesota Statutes, 
635.7 	section 145A.14.

635.8	Subd. 35.Special Grants; Tribal Governments
 					
635.9 	$1,166,000 in fiscal year 2026 and $1,166,000 
635.10 	in fiscal year 2027 are from the general fund 
635.11 	for special grants to Tribal governments under 
635.12 	Minnesota Statutes, section 145A.14, 
635.13 	subdivision 2a.

635.14	Subd. 36.Eliminating Health Disparities
 					
635.15 	$3,142,000 in fiscal year 2026 and $3,142,000 
635.16 	in fiscal year 2027 are from the general fund 
635.17 	for eliminating health disparities under 
635.18 	Minnesota Statutes, section 145.928.

635.19
635.20	Subd. 37.Community Solutions for Healthy 
Child Development Grant Program
 					
635.21 	$2,415,000 in fiscal year 2026 and $2,415,000 
635.22 	in fiscal year 2027 are from the general fund 
635.23 	for the community solutions for healthy child 
635.24 	development grant program under Minnesota 
635.25 	Statutes, section 145.9285.

635.26
635.27	Subd. 38.African American Health Special 
Emphasis Grant Program
 					
635.28 	$1,000,000 in fiscal year 2026 and $1,000,000 
635.29 	in fiscal year 2027 are from the general fund 
635.30 	for the African American health special 
635.31 	emphasis grant program under Minnesota 
635.32 	Statutes, section 144.0756.

636.1	Subd. 39.Office of American Indian Health
 					
636.2 	$1,000,000 in fiscal year 2026 and $1,000,000 
636.3 	in fiscal year 2027 are from the general fund 
636.4 	for the Office of American Indian Health 
636.5 	under Minnesota Statutes, section 144.0757.

636.6
636.7	Subd. 40.Indian Health Grants; Grants to 
Tribes
 					
636.8 	$535,000 in fiscal year 2026 and $535,000 in 
636.9 	fiscal year 2027 are from the general fund for 
636.10 	Indian health grants to Tribes under Minnesota 
636.11 	Statutes, section 145A.14, subdivision 2b.

636.12
636.13	Subd. 41.Rural Hospital Capital Improvement 
Grant Program
 					
636.14 	$1,755,000 in fiscal year 2026 and $1,755,000 
636.15 	in fiscal year 2027 are from the general fund 
636.16 	for the rural hospital capital improvement 
636.17 	grant program under Minnesota Statutes, 
636.18 	section 144.148.

636.19	Subd. 42.Special Grants; Indian Health Grants
 					
636.20 	$174,000 in fiscal year 2026 and $174,000 in 
636.21 	fiscal year 2027 are from the general fund for 
636.22 	special grants for Indian health grants under 
636.23 	Minnesota Statutes, section 145A.14, 
636.24 	subdivision 2.

636.25	Subd. 43.Community Clinic Grants
 					
636.26 	$311,000 in fiscal year 2026 and $311,000 in 
636.27 	fiscal year 2027 are from the general fund for 
636.28 	community clinic grants under Minnesota 
636.29 	Statutes, section 145.9268.

636.30
636.31	Subd. 44.Comprehensive Advanced Life 
Support
 					
636.32 	$508,000 in fiscal year 2026 and $508,000 in 
636.33 	fiscal year 2027 are from the general fund for 
637.1 	comprehensive advanced life support under 
637.2 	Minnesota Statutes, section 144.6062.

637.3
637.4	Subd. 45.Health Care Grants for the Uninsured; 
Dental Providers
 					
637.5 	$50,000 in fiscal year 2026 and $50,000 in 
637.6 	fiscal year 2027 are from the general fund for 
637.7 	health care grants for the uninsured to dental 
637.8 	providers under Minnesota Statutes, section 
637.9 	145.929, subdivision 1.

637.10
637.11	Subd. 46.Health Care Grants for the Uninsured; 
Community Mental Health Programs
 					
637.12 	$175,000 in fiscal year 2026 and $175,000 in 
637.13 	fiscal year 2027 are from the general fund for 
637.14 	the health care grants for the uninsured to 
637.15 	community mental health programs, under 
637.16 	Minnesota Statutes, section 145.929, 
637.17 	subdivision 2.

637.18
637.19
637.20	Subd. 47.Health Care Grants for the Uninsured; 
Emergency Medical Assistance Outlier Grant 
Program
 					
637.21 	$590,000 in fiscal year 2026 and $590,000 in 
637.22 	fiscal year 2027 are from the general fund for 
637.23 	the health care grants for the uninsured to the 
637.24 	emergency medical assistance outlier grant 
637.25 	program under Minnesota Statutes, section 
637.26 	145.929, subdivision 3.

637.27	Subd. 48.Federally Qualified Health Centers
 					
637.28 	$2,425,000 in fiscal year 2026 and $2,425,000 
637.29 	in fiscal year 2027 are from the general fund 
637.30 	for federally qualified health centers under 
637.31 	Minnesota Statutes, section 145.9269.

637.32
637.33	Subd. 49.Medical Education; Distribution of 
Funds
 					
637.34 	$1,000,000 in fiscal year 2026 and $1,000,000 
637.35 	in fiscal year 2027 are from the general fund 
638.1 	for funding medical education and research 
638.2 	costs under Minnesota Statutes, section 
638.3 	62J.692, subdivision 4.

638.4
638.5	Subd. 50.Health Professional Education Loan 
Forgiveness Program
 					
638.6 	$1,600,000 in fiscal year 2026 and $1,600,000 
638.7 	in fiscal year 2027 are from the general fund 
638.8 	for the health professional education loan 
638.9 	forgiveness program under Minnesota Statutes, 
638.10 	section 144.1501.

638.11
638.12
638.13	Subd. 51.Health Professionals Clinical Training 
Expansion and Rural and Underserved Clinical 
Rotations Grant Program; Programs
 					
638.14 	$500,000 in fiscal year 2026 and $500,000 in 
638.15 	fiscal year 2027 are from the general fund for 
638.16 	the health professionals clinical training 
638.17 	expansion and rural and underserved clinical 
638.18 	rotations grant program under Minnesota 
638.19 	Statutes, section 144.1505, subdivision 2.

638.20
638.21
638.22	Subd. 52.Health Professionals Clinical Training 
Expansion and Rural and Underserved Clinical 
Rotations Grant Program; Program Oversight
 					
638.23 	$....... in fiscal year 2026 and $....... in fiscal 
638.24 	year 2027 are from the general fund for 
638.25 	program oversight grants for the health 
638.26 	professionals clinical training expansion and 
638.27 	rural and underserved clinical rotations grant 
638.28 	program under Minnesota Statutes, section 
638.29 	144.1505, subdivision 5.

638.30
638.31	Subd. 53.Primary Care Residency Expansion 
Grant Program; Program Oversight
 					
638.32 	$1,500,000 in fiscal year 2026 and $1,500,000 
638.33 	in fiscal year 2027 are from the general fund 
638.34 	for program oversight grants for the primary 
638.35 	care residency expansion grant program under 
639.1 	Minnesota Statutes, section 144.1506, 
639.2 	subdivision 5.

639.3
639.4
639.5	Subd. 54.Home and Community-Based Services 
Employee Scholarship and Loan Forgiveness 
Program
 					
639.6 	$1,450,000 in fiscal year 2026 and $1,450,000 
639.7 	in fiscal year 2027 are from the general fund 
639.8 	for the home and community-based services 
639.9 	employee scholarship and loan forgiveness 
639.10 	program under Minnesota Statutes, section 
639.11 	144.1503.

639.12
639.13	Subd. 55.Federally Qualified Health Centers 
Registered Apprenticeship Grant Program
 					
639.14 	$690,000 in fiscal year 2026 and $690,000 in 
639.15 	fiscal year 2027 are from the general fund for 
639.16 	the federally qualified health centers registered 
639.17 	apprenticeship grant program under Minnesota 
639.18 	Statutes, section 145.9272.

639.19
639.20	Subd. 56.Primary Care Residency Expansion 
Grant Program
 					
639.21 	$400,000 in fiscal year 2026 and $400,000 in 
639.22 	fiscal year 2027 are from the general fund for 
639.23 	the primary care residency expansion grant 
639.24 	program under Minnesota Statutes, section 
639.25 	144.1506.

639.26
639.27	Subd. 57.Pediatric Primary Care Mental Health 
Training Grant Program
 					
639.28 	$900,000 in fiscal year 2026 and $900,000 in 
639.29 	fiscal year 2027 are from the general fund for 
639.30 	the pediatric primary care mental health 
639.31 	training grant program under Minnesota 
639.32 	Statutes, section 144.1509.

640.1
640.2	Subd. 58.Mental Health Cultural Community 
Continuing Education Grant Program
 					
640.3 	$450,000 in fiscal year 2026 and $450,000 in 
640.4 	fiscal year 2027 are from the general fund for 
640.5 	the mental health cultural community 
640.6 	continuing education grant program under 
640.7 	Minnesota Statutes, section 144.1511.

640.8
640.9	Subd. 59.Clinical Dental Education Innovation 
Grants
 					
640.10 	$1,122,000 in fiscal year 2026 and $1,122,000 
640.11 	in fiscal year 2027 are from the general fund 
640.12 	for clinical dental education innovation grants 
640.13 	under Minnesota Statutes, section 144.1913.

640.14
640.15	Subd. 60.Comprehensive Drug Overdose and 
Morbidity Prevention Act
 					
640.16 	$7,520,000 in fiscal year 2026 and $7,520,000 
640.17 	in fiscal year 2027 are from the general fund 
640.18 	for the Comprehensive Drug Overdose and 
640.19 	Morbidity Prevention Act under Minnesota 
640.20 	Statutes, section 144.0528.

640.21
640.22	Subd. 61.Minnesota Poison Information 
Centers; Establishment
 					
640.23 	$2,379,000 in fiscal year 2026 and $2,379,000 
640.24 	in fiscal year 2027 are from the general fund 
640.25 	for Minnesota poison information centers 
640.26 	under Minnesota Statutes, section 145.93.

640.27	Subd. 62.Suicide Prevention
 					
640.28 	$1,977,000 in fiscal year 2026 and $1,977,000 
640.29 	in fiscal year 2027 are from the general fund 
640.30 	for suicide prevention under Minnesota 
640.31 	Statutes, section 145.56.

641.1	Subd. 63.Sage Cancer Screening Grants
 					
641.2 	$518,000 in fiscal year 2026 and $518,000 in 
641.3 	fiscal year 2027 are from the general fund for 
641.4 	Sage Cancer Screening grants.

641.5	Subd. 64.Regional Navigator Grants
 					
641.6 	$4,120,000 in fiscal year 2027 are from the 
641.7 	general fund for regional navigator grants 
641.8 	under Minnesota Statutes, section 145.4717.

641.9641.10
	Subd. 65.Substance Use Treatment, Recovery, 
and Prevention Grants
 					
641.11 	$4,950,000 in fiscal year 2026 and $4,950,000 
641.12 	in fiscal year 2027 are from the general fund 
641.13 	for substance use treatment, recovery, and 
641.14 	prevention grants under Minnesota Statutes, 
641.15 	section 342.72.

641.16
641.17	Subd. 66.Community Health Workers; Grants 
Authorized
 					
641.18 	$750,000 in fiscal year 2026 and $750,000 in 
641.19 	fiscal year 2027 are from the general fund for 
641.20 	community health workers grants under 
641.21 	Minnesota Statutes, section 144.1462.

641.22
641.23	Subd. 67.Long COVID and Related Conditions; 
Assessment and Monitoring
 					
641.24 	$900,000 in fiscal year 2026 and $900,000 in 
641.25 	fiscal year 2027 are from the general fund for 
641.26 	long COVID and related conditions 
641.27 	assessment and monitoring under Minnesota 
641.28 	Statutes, section 145.361.

641.29
641.30	Subd. 68.Alzheimer's Public Information 
Program
 					
641.31 	$80,000 in fiscal year 2026 and $80,000 in 
641.32 	fiscal year 2027 are from the general fund for 
641.33 	the Alzheimer's public information program 
642.1 	under Laws 2023, chapter 70, article 20, 
642.2 	section 3, subdivision 2, paragraph (v).

642.3
642.4	Subd. 69.Labor Trafficking Services Grant 
Program
 					
642.5 	$500,000 in fiscal year 2026 and $500,000 in 
642.6 	fiscal year 2027 are from the general fund for 
642.7 	the labor trafficking services grant program 
642.8 	under Minnesota Statutes, section 144.3885.

642.9	Subd. 70.Safe Harbor Regional Navigator
 					
642.10 	$300,000 in fiscal year 2026 and $300,000 in 
642.11 	fiscal year 2027 are from the general fund for 
642.12 	safe harbor regional navigator grants under 
642.13 	Laws 2023, chapter 70, article 20, section 3, 
642.14 	subdivision 2, paragraph (nn).

642.15
642.16
642.17	Subd. 71.Cannabis and Substance Misuse 
Prevention and Education Programs; Youth 
Prevention and Education Program
 					
642.18 	$1,500,000 in fiscal year 2026 and $1,500,000 
642.19 	in fiscal year 2027 are from the general fund 
642.20 	for the cannabis and substance misuse youth 
642.21 	prevention and education program under 
642.22 	Minnesota Statutes, section 144.197, 
642.23 	subdivision 1.

642.24
642.25	Subd. 72.Minnesota Poison Information 
Centers; Establishment
 					
642.26 	$795,000 in fiscal year 2026 and $795,000 in 
642.27 	fiscal year 2027 are from the general fund for 
642.28 	the Minnesota poison information centers 
642.29 	under Minnesota Statutes, section 145.93.

642.30
642.31	Subd. 73.Statewide Health Improvement 
Program; Grants to Local Communities
 					
642.32 	$14,364,000 in fiscal year 2026 and 
642.33 	$14,364,000 in fiscal year 2027 are from the 
642.34 	health care access fund for the statewide health 
642.35 	improvement program grants to local 
643.1 	communities under Minnesota Statutes, section 
643.2 	145.986, subdivision 1a.

643.3
643.4	Subd. 74.Primary Care Residency Training 
Grant Program
 					
643.5 	$4,060,000 in fiscal year 2026 and $4,060,000 
643.6 	in fiscal year 2027 are from the health care 
643.7 	access fund for the primary care residency 
643.8 	training grant program under Minnesota 
643.9 	Statutes, section 144.1507.

643.10
643.11
643.12	Subd. 75.Health Professionals Clinical Training 
Expansion and Rural and Underserved Clinical 
Rotations Grant Programs
 					
643.13 	$....... in fiscal year 2026 and $....... in fiscal 
643.14 	year 2027 are from the health care access fund 
643.15 	for the health professionals clinical training 
643.16 	expansion and rural and underserved clinical 
643.17 	rotations grant programs under Minnesota 
643.18 	Statutes, section 144.1505.

643.19
643.20	Subd. 76.International Medical Graduates 
Assistance Program
 					
643.21 	$420,000 in fiscal year 2026 and $420,000 in 
643.22 	fiscal year 2027 are from the health care 
643.23 	access fund for the international medical 
643.24 	graduates assistance program under Minnesota 
643.25 	Statutes, section 144.1911.

643.26
643.27	Subd. 77.Clinical Health Care Training; 
Site-Based Clinical Training Grants
 					
643.28 	$4,657,000 in fiscal year 2026 and $3,451,000 
643.29 	in fiscal year 2027 are from the health care 
643.30 	access fund for the clinical health care 
643.31 	site-based clinical training grants under 
643.32 	Minnesota Statutes, section 144.1508; Laws 
643.33 	2023, chapter 70, article 20, section 3, 
643.34 	subdivision 2, paragraph (n), clause (3).

644.1
644.2	Subd. 78.Health Professionals Education Loan 
Forgiveness Program
 					
644.3 	$6,740,000 in fiscal year 2026 and $6,740,000 
644.4 	in fiscal year 2027 are from the health care 
644.5 	access fund for the health professionals 
644.6 	education loan forgiveness program under 
644.7 	Minnesota Statutes, section 144.1501.

644.8	Subd. 79.Medical Education
 					
644.9 	$1,000,000 in fiscal year 2026 and $1,000,000 
644.10 	in fiscal year 2027 are from the health care 
644.11 	access fund for medical education under 
644.12 	Minnesota Statutes, section 62J.692.

644.13	Subd. 80.Community Clinics Grants
 					
644.14 	$250,000 in fiscal year 2026 and $250,000 in 
644.15 	fiscal year 2027 are from the health care 
644.16 	access fund for community clinic grants under 
644.17 	Minnesota Statutes, section 145.9268.

644.18
644.19	Subd. 81.Rural Hospital Planning and 
Transition Grant Program
 					
644.20 	$300,000 in fiscal year 2026 and $300,000 in 
644.21 	fiscal year 2027 are from the health care 
644.22 	access fund for the rural hospital planning and 
644.23 	transition grant program under Minnesota 
644.24 	Statutes, section 144.147.

644.25
644.26	Subd. 82.Greater Minnesota Family Medicine 
Residency Grant Program
 					
644.27 	$1,000,000 in fiscal year 2026 and $1,000,000 
644.28 	in fiscal year 2027 are from the health care 
644.29 	access fund for the greater Minnesota family 
644.30 	medicine residency grant program under 
644.31 	Minnesota Statutes, section 144.1912.

644.32	Subd. 83.Summer Health Care Interns
 					
644.33 	$300,000 in fiscal year 2026 and $300,000 in 
644.34 	fiscal year 2027 are from the health care 
645.1 	access fund for summer health care interns 
645.2 	under Minnesota Statutes, section 144.1464.

645.3
645.4	Subd. 84.National Health Service Match; 
Federal NHSC Match Grants
 					
645.5 	$100,000 in fiscal year 2026 and $100,000 in 
645.6 	fiscal year 2027 are from the health care 
645.7 	access fund for National Health Service 
645.8 	Match; Federal NHSC Match Grants.

645.9	Subd. 85.Federally Qualified Health Centers
 					
645.10 	$219,000 in fiscal year 2026 and $219,000 in 
645.11 	fiscal year 2027 are from the health care 
645.12 	access fund for federally qualified health 
645.13 	centers under Minnesota Statutes, section 
645.14 	145.9269.

645.15
645.16	Subd. 86.International Medical Graduates 
Assistance Program
 					
645.17 	$867,000 in fiscal year 2026 and $867,000 in 
645.18 	fiscal year 2027 are from the health care 
645.19 	access fund for the international medical 
645.20 	graduates assistance program under Minnesota 
645.21 	Statutes, section 144.1911.

645.22
645.23	Subd. 87.Health Care Grants for the Uninsured; 
Dental Providers
 					
645.24 	$63,000 in fiscal year 2026 and $63,000 in 
645.25 	fiscal year 2027 are from the health care 
645.26 	access fund for health care grants for the 
645.27 	uninsured to dental providers under Minnesota 
645.28 	Statutes, section 145.929, subdivision 1.

645.29
645.30	Subd. 88.Health Care Grants for the Uninsured; 
Community Mental Health Programs
 					
645.31 	$219,000 in fiscal year 2026 and $219,000 in 
645.32 	fiscal year 2027 are from the health care 
645.33 	access fund for the health care grants for the 
645.34 	uninsured for community mental health 
646.1 	programs under Minnesota Statutes, section 
646.2 	145.929, subdivision 2.

646.3
646.4
646.5	Subd. 89.Health Care Grants for the Uninsured; 
Emergency Medical Assistance Outlier Grant 
Program
 					
646.6 	$725,000 in fiscal year 2026 and $725,000 in 
646.7 	fiscal year 2027 are from the health care 
646.8 	access fund for the health care grants for the 
646.9 	uninsured for the emergency medical 
646.10 	assistance outlier grant program under 
646.11 	Minnesota Statutes, section 145.929, 
646.12 	subdivision 3.

646.13
646.14	Subd. 90.Grant for "Treat Yourself First" 
Campaign
 					
646.15 	$237,000 is from the general fund for a grant 
646.16 	to the Minnesota Medical Association for the 
646.17 	"Treat Yourself First" campaign. The 
646.18 	campaign must be an awareness and education 
646.19 	campaign focused on burnout and well-being 
646.20 	of health care workers designed to:
646.21 	(1) reduce the stigma of receiving mental 
646.22 	health services;
646.23 	(2) encourage health care workers who are 
646.24 	experiencing workplace-related fatigue to 
646.25 	receive the care they need; and
646.26 	(3) normalize the process for seeking help.
646.27 	The campaign must be targeted to health care 
646.28 	professionals, including but not limited to 
646.29 	physicians, nurses, dentists, pharmacists, and 
646.30 	other members of the health care team. The 
646.31 	campaign must include resources for health 
646.32 	care professionals seeking help to address 
646.33 	burnout and well-being. This is a onetime 
646.34 	appropriation and is available until June 30, 
646.35 	2029.

647.1
647.2	Subd. 91.Grant for African American-Focused 
Homeplace Program
 					
647.3 	$475,000 in fiscal year 2026 is from the 
647.4 	general fund for a grant to the Birth Justice 
647.5 	Collaborative to strengthen and implement the 
647.6 	current model of the African 
647.7 	American-focused Homeplace in Hennepin 
647.8 	County. This is a onetime appropriation and 
647.9 	is available until June 30, 2029.

647.10	Subd. 92.TANF Appropriations
 					
647.11 	TANF funds must be used as follows:
647.12 	(1) $3,579,000 in fiscal year 2026 and 
647.13 	$3,579,000 in fiscal year 2027 are from the 
647.14 	TANF fund for home visiting and nutritional 
647.15 	services listed under Minnesota Statutes, 
647.16 	section 145.882, subdivision 7, clauses (6) and 
647.17 	(7). Funds must be distributed to community 
647.18 	health boards according to Minnesota Statutes, 
647.19 	section 145A.131, subdivision 1;
647.20 	(2) $2,000,000 in fiscal year 2026 and 
647.21 	$2,000,000 in fiscal year 2027 are from the 
647.22 	TANF fund for decreasing racial and ethnic 
647.23 	disparities in infant mortality rates under 
647.24 	Minnesota Statutes, section 145.928, 
647.25 	subdivision 7;
647.26 	(3) $4,978,000 in fiscal year 2026 and 
647.27 	$4,978,000 in fiscal year 2027 are from the 
647.28 	TANF fund for the family home visiting grant 
647.29 	program under Minnesota Statutes, section 
647.30 	145A.17. Of these amounts, $4,000,000 in 
647.31 	fiscal year 2026 and $4,000,000 in fiscal year 
647.32 	2027 must be distributed to community health 
647.33 	boards under Minnesota Statutes, section 
647.34 	145A.131, subdivision 1; and $978,000 in 
647.35 	fiscal year 2026 and $978,000 in fiscal year 
648.1 	2027 must be distributed to Tribal 
648.2 	governments under Minnesota Statutes, section 
648.3 	145A.14, subdivision 2a;
648.4 	(4) $1,156,000 in fiscal year 2026 and 
648.5 	$1,156,000 in fiscal year 2027 are from the 
648.6 	TANF fund for sexual and reproductive health 
648.7 	services grants under Minnesota Statutes, 
648.8 	section 145.925; and
648.9 	(5) the commissioner may use up to 6.23 
648.10 	percent of the funds appropriated from the 
648.11 	TANF fund each fiscal year to conduct the 
648.12 	ongoing evaluations required under Minnesota 
648.13 	Statutes, section 145A.17, subdivision 7, and 
648.14 	training and technical assistance required 
648.15 	under Minnesota Statutes, section 145A.17, 
648.16 	subdivisions 4 and 5.

648.17	Subd. 93.TANF Carryforward
 					
648.18 	Any unexpended balance of the TANF 
648.19 	appropriation in the first year does not cancel 
648.20 	but is available in the second year.

648.21	Subd. 94.Base Level Adjustment
 					
648.22 	The general fund base for this section is 
648.23 	$213,725,000 in fiscal year 2028 and 
648.24 	$213,725,000 in fiscal year 2029.

648.25	Sec. 4. HEALTH PROTECTION

648.26	Subdivision 1.Total Appropriation
 	$
	121,207,000
	$
	120,269,000

648.27	Appropriations by Fund
	
648.28	General
	34,228,000
	33,758,000
	
648.29
648.30	State Government 
Special Revenue
	86,979,000
	86,511,000

649.1
649.2	Subd. 2.Speech Language Pathology Assistants 
Fee Adjustment
 					
649.3 	$95,000 in fiscal year 2026 is from the general 
649.4 	fund for onetime costs incurred in fiscal year 
649.5 	2025 to implement Minnesota Statutes, 
649.6 	sections 148.511 to 148.5198.

649.7	Subd. 3.Lead Abatement Program
 					
649.8 	$479,000 in fiscal year 2026 and $479,000 in 
649.9 	fiscal year 2027 are from the general fund for 
649.10 	the lead abatement program under Minnesota 
649.11 	Statutes, section 144.9512.

649.12	Subd. 4.Healthy Housing Grants
 					
649.13 	$240,000 in fiscal year 2026 and $240,000 in 
649.14 	fiscal year 2027 are from the general fund for 
649.15 	healthy housing grants under Minnesota 
649.16 	Statutes, section 144.9513.

649.17
649.18	Subd. 5.Lead Remediation in School and Child 
Care Settings Grant Program
 					
649.19 	$239,000 in fiscal year 2026 and $239,000 in 
649.20 	fiscal year 2027 are from the general fund for 
649.21 	lead remediation in school and child care 
649.22 	settings grant program under Minnesota 
649.23 	Statutes, section 145.9275.

649.24	Subd. 6.Refugee Health and TB Grants
 					
649.25 	$245,000 in fiscal year 2026 and $245,000 in 
649.26 	fiscal year 2027 are from the general fund for 
649.27 	refugee health and TB grants.

649.28	Subd. 7.HIV Prevention Grants
 					
649.29 	$1,281,000 in fiscal year 2026 and $1,281,000 
649.30 	in fiscal year 2027 are from the general fund 
649.31 	for HIV prevention grants under Minnesota 
649.32 	Statutes, section 145.924.

650.1	Subd. 8.Tuberculosis Grants
 					
650.2 	$115,000 in fiscal year 2026 and $115,000 in 
650.3 	fiscal year 2027 are from the general fund for 
650.4 	tuberculosis grants.

650.5
650.6	Subd. 9.Comprehensive Drug Overdose and 
Morbidity Prevention Act
 					
650.7 	$960,000 in fiscal year 2026 and $960,000 in 
650.8 	fiscal year 2027 are from the general fund for 
650.9 	the comprehensive drug overdose and 
650.10 	morbidity prevention act under Minnesota 
650.11 	Statutes, section 144.0528.

650.12
650.13	Subd. 10.Infectious Disease Prevention, Early 
Detection, and Outbreak Response
 					
650.14 	$1,300,000 in fiscal year 2026 and $1,300,000 
650.15 	in fiscal year 2027 are from the general fund 
650.16 	for infectious disease prevention, early 
650.17 	detection, and outbreak response activities 
650.18 	under Minnesota Statutes, section 144.05, 
650.19 	subdivision 1.

650.20	Subd. 11.Asbestos Abatement
 					
650.21 	$176,000 in fiscal year 2026 and $176,000 in 
650.22 	fiscal year 2027 are from the state government 
650.23 	special revenue fund for asbestos abatement 
650.24 	under Minnesota Statutes, section 326.75.

650.25	Subd. 12.Food, Pools, and Lodging Services
 					
650.26 	$5,483,000 in fiscal year 2026 and $5,483,000 
650.27 	in fiscal year 2027 are from the state 
650.28 	government special revenue fund for food, 
650.29 	pools, and lodging services program activities 
650.30 	under Minnesota Statutes, chapters 144, 157, 
650.31 	and 327.

651.1	Subd. 13.Public Water Supply
 					
651.2 	$7,827,000 in fiscal year 2026 and $7,827,000 
651.3 	in fiscal year 2027 are from the state 
651.4 	government special revenue fund to administer 
651.5 	the drinking water protection program, 
651.6 	including implementing the Safe Drinking 
651.7 	Water Act and providing services to regulated 
651.8 	parties, partners, and the public under 
651.9 	Minnesota Statutes, sections 144.381 to 
651.10 	144.383.

651.11	Subd. 14.Radioactive Materials
 					
651.12 	$200,000 in fiscal year 2026 and $200,000 in 
651.13 	fiscal year 2027 are from the state government 
651.14 	special revenue fund for radioactive materials 
651.15 	program activities under Minnesota Statutes, 
651.16 	section 144.1205.

651.17	Subd. 15.Ionizing Radiation
 					
651.18 	$993,000 in fiscal year 2026 and $828,000 in 
651.19 	fiscal year 2027 are from the state government 
651.20 	special revenue fund to administer new 
651.21 	regulatory activities for x-ray service 
651.22 	providers, ongoing inspections of licensed 
651.23 	facilities, and data analysis for program 
651.24 	planning and implementation under Minnesota 
651.25 	Statutes, section 144.121.

651.26	Subd. 16.Engineering Plan Reviews
 					
651.27 	$224,000 in fiscal year 2026 and $224,000 in 
651.28 	fiscal year 2027 are from the state government 
651.29 	special revenue fund to conduct engineering 
651.30 	plan reviews under Minnesota Statutes, section 
651.31 	144.554.

652.1
652.2	Subd. 17.Spoken Language Health Care 
Interpreter Workgroup
 					
652.3 	$186,000 in fiscal year 2026 and $49,000 in 
652.4 	fiscal year 2027 are from the state government 
652.5 	special revenue fund for a request for 
652.6 	proposals for the spoken language health care 
652.7 	interpreter work group. This is a onetime 
652.8 	appropriation and is available until June 30, 
652.9 	2029.

652.10	Subd. 18.Base Level Adjustments
 					
652.11 	The state government special revenue fund 
652.12 	base is $86,794,000 in fiscal year 2028 and 
652.13 	$86,806,000 in fiscal year 2029.

652.14	Sec. 5. HEALTH OPERATIONS
 	$
	21,776,000
	$
	24,249,000

652.15	Appropriations by Fund
	
652.16	General
	20,365,000
	21,392,000
	
652.17	Health Care Access
	1,411,000
	2,857,000

652.18 	Sec. 6. TRANSFERS.
 652.19 	Positions, salary money, and nonsalary administrative money may be transferred within 
652.20 	the Department of Health as the commissioner deems necessary with the advance approval 
652.21 	of the commissioner of management and budget. The commissioner shall report to the chairs 
652.22 	and ranking minority members of the legislative committees with jurisdiction over health 
652.23 	finance quarterly about transfers made under this section.

652.24 	Sec. 7. INDIRECT COSTS NOT TO FUND PROGRAMS.
 652.25 	The commissioner of health shall not use indirect cost allocations to pay for the 
652.26 	operational costs of any program for which the commissioner is responsible.

652.27 	Sec. 8. GRANT ADMINISTRATION COSTS.
 652.28 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
652.29 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

653.1 	Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
 653.2 	All uncodified language contained in this article expires on June 30, 2027, unless a 
653.3 	different expiration date is explicit or an appropriation is made available after June 30, 2027.

653.4 	ARTICLE 27
653.5 	OTHER AGENCY APPROPRIATIONS

653.6	Section 1. OTHER AGENCY APPROPRIATIONS.
 	
653.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
653.8 	and for the purposes specified in this article. The appropriations are from the general fund, 
653.9 	or another named fund, and are available for the fiscal years indicated for each purpose. 
653.10 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
653.11 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
653.12 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
653.13 	is fiscal years 2026 and 2027.

653.14				APPROPRIATIONS
	
653.15				Available for the Year
	
653.16				Ending June 30
	
653.17					2026
		2027

653.18	Sec. 2. HEALTH-RELATED BOARDS

653.19	Subdivision 1.Total Appropriation
 	$
	34,231,000
	$
	34,112,000

653.20	Appropriations by Fund
	
653.21		2026
	2027
	
653.22	General
	468,000
	468,000
	
653.23
653.24	State Government 
Special Revenue
	33,763,000
	33,644,000
	
653.25 	These amounts are appropriated from the state 
653.26 	government special revenue fund, unless 
653.27 	specified otherwise, for the purposes specified 
653.28 	in the following subdivisions.

653.29
653.30	Subd. 2.Board of Behavioral Health and 
Therapy
 		1,289,000
		1,289,000

653.31	Subd. 3.Board of Chiropractic Examiners
 		666,000
		666,000

654.1	Subd. 4.Board of Dentistry
 		4,308,000
		4,310,000
	
654.2 	(a) Administrative services unit; operating 
654.3 	costs. Of this appropriation, $1,936,000 in 
654.4 	fiscal year 2026 and $1,936,000 in fiscal year 
654.5 	2027 are for operating costs of the 
654.6 	administrative services unit. The 
654.7 	administrative services unit may receive and 
654.8 	expend reimbursements for services it 
654.9 	performs for other agencies.
654.10 	(b) Administrative services unit; volunteer 
654.11 	health care provider program. Of this 
654.12 	appropriation, $150,000 in fiscal year 2026 
654.13 	and $150,000 in fiscal year 2027 are to pay 
654.14 	for medical professional liability coverage 
654.15 	required under Minnesota Statutes, section 
654.16 	214.40.
654.17 	(c) Administrative services unit; retirement 
654.18 	costs. Of this appropriation, $237,000 in fiscal 
654.19 	year 2026 and $237,000 in fiscal year 2027 
654.20 	are for the administrative services unit to pay 
654.21 	for the retirement costs of health-related board 
654.22 	employees. This funding may be transferred 
654.23 	to the health board incurring retirement costs. 
654.24 	Any board that has an unexpended balance for 
654.25 	an amount transferred under this paragraph 
654.26 	shall transfer the unexpended amount to the 
654.27 	administrative services unit. If the amount 
654.28 	appropriated in the first year of the biennium 
654.29 	is not sufficient, the amount from the second 
654.30 	year of the biennium is available.
654.31 	(d) Administrative services unit; contested 
654.32 	cases and other legal proceedings. Of this 
654.33 	appropriation, $200,000 in fiscal year 2026 
654.34 	and $200,000 in fiscal year 2027 are for costs 
654.35 	of contested case hearings and other 
655.1 	unanticipated costs of legal proceedings 
655.2 	involving health-related boards under this 
655.3 	section. Upon certification by a health-related 
655.4 	board to the administrative services unit that 
655.5 	unanticipated costs for legal proceedings will 
655.6 	be incurred and that available appropriations 
655.7 	are insufficient to pay for the unanticipated 
655.8 	costs for that board, the administrative services 
655.9 	unit is authorized to transfer money from this 
655.10 	appropriation to the board for payment of costs 
655.11 	for contested case hearings and other 
655.12 	unanticipated costs of legal proceedings with 
655.13 	the approval of the commissioner of 
655.14 	management and budget. The commissioner 
655.15 	of management and budget must require any 
655.16 	board that has an unexpended balance or an 
655.17 	amount transferred under this paragraph to 
655.18 	transfer the unexpended amount to the 
655.19 	administrative services unit to be deposited in 
655.20 	the state government special revenue fund.

655.21
655.22	Subd. 5.Board of Dietetics and Nutrition 
Practice
 		277,000
		277,000

655.23
655.24	Subd. 6.Board of Executives for Long-term 
Services and Supports
 		736,000
		736,000

655.25	Subd. 7.Board of Marriage and Family Therapy
 		457,000
		457,000

655.26	Subd. 8.Board of Medical Practice
 		6,196,000
		6,141,000
	
655.27 	Base Level Adjustment. The state 
655.28 	government special revenue fund base for this 
655.29 	subdivision is $6,121,000 in fiscal year 2028 
655.30 	and $6,121,000 in fiscal year 2029.

655.31	Subd. 9.Board of Nursing
 		6,275,000
		6,275,000

655.32
655.33	Subd. 10.Board of Occupational Therapy 
Practice
 		560,000
		560,000

655.34	Subd. 11.Board of Optometry
 		280,000
		280,000

655.35	Subd. 12.Board of Pharmacy
 		6,748,000
		6,748,000

656.1	Appropriations by Fund
	
656.2	General
	468,000
	468,000
	
656.3
656.4	State Government 
Special Revenue
	6,280,000
	6,280,000

656.5	Subd. 13.Board of Physical Therapy
 		789,000
		789,000

656.6	Subd. 14.Board of Podiatric Medicine
 		257,000
		257,000

656.7	Subd. 15.Board of Psychology
 		2,781,000
		2,781,000
	
656.8 	Health Professional Service Program.
656.9 	$1,324,000 in fiscal year 2026 and $1,324,000 
656.10 	in fiscal year 2027 are for the health 
656.11 	professionals services program.

656.12	Subd. 16.Board of Social Work
 		2,068,000
		2,002,000

656.13	Subd. 17.Board of Veterinary Medicine
 		544,000
		544,000

656.14
656.15	Sec. 3. OFFICE OF EMERGENCY MEDICAL 
SERVICES
 	$
	7,613,000
	$
	6,048,000

656.16
656.17	Subdivision 1.Ambulance Service Training and 
Staffing Grant Program
 					
656.18 	$500,000 in fiscal year 2026 and $500,000 in 
656.19 	fiscal year 2027 are for the ambulance service 
656.20 	training and staffing grant program under 
656.21 	Minnesota Statutes, section 144E.38.

656.22	Subd. 2.EMR/EMT Education Reimbursement
 					
656.23 	$100,000 in fiscal year 2026 and $100,000 in 
656.24 	fiscal year 2027 are for EMR/EMT education 
656.25 	reimbursements under Minnesota Statutes, 
656.26 	section 144E.35.

656.27	Sec. 4. OMBUDSPERSON FOR FAMILIES
 	$
	792,000
	$
	808,000

656.28
656.29	Sec. 5. OMBUDSPERSON FOR AMERICAN 
INDIAN FAMILIES
 	$
	344,000
	$
	347,000

656.30
656.31	Sec. 6. RARE DISEASE ADVISORY 
COUNCIL
 	$
	674,000
	$
	679,000

656.32
656.33	Sec. 7. OFFICE OF THE FOSTER YOUTH 
OMBUDSPERSON
 	$
	1,012,000
	$
	1,025,000

656.34	Sec. 8. BOARD OF DIRECTORS OF MNSURE
 	$
	70,000
	$
	70,000

657.1	Sec. 9. COMMISSIONER OF EDUCATION
 	$
	7,950,000
	$
	7,950,000
	
657.2 	Early Childhood Literacy Programs.
657.3 	$7,950,000 in fiscal year 2026 and $7,950,000 
657.4 	in fiscal year 2027 are for early childhood 
657.5 	literacy grants under Minnesota Statutes, 
657.6 	section 142D.12, subdivision 3.

657.7 	Sec. 10. GRANT ADMINISTRATION COSTS.
 657.8 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
657.9 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

657.10 	Sec. 11. EXPIRATION OF UNCODIFIED LANGUAGE.
 657.11 	All uncodified language contained in this article expires June 30, 2027, unless a different 
657.12 	expiration date is explicit or an appropriation is made available after June 30, 2027.

657.13 	Sec. 12. Laws 2024, chapter 127, article 67, section 4, is amended to read:

657.14	Sec. 4. BOARD OF PHARMACY

657.15	Appropriations by Fund
	
657.16	General
	1,500,000
	-0-
	
657.17
657.18	State Government 
Special Revenue
	-0-
	27,000
	
657.19 	(a) Legal Costs. $1,500,000 in fiscal year 
657.20 	2024 is from the general fund for legal costs. 
657.21 	This is a onetime appropriation and is 
657.22 	available until June 30, 2027.
657.23 	(b) Base Level Adjustment. The state 
657.24 	government special revenue fund base is 
657.25 	increased by $27,000 in fiscal year 2026 and 
657.26 	increased by $27,000 in fiscal year 2027.

657.27 	EFFECTIVE DATE. This section is effective June 30, 2025.

	ARTICLE 1	DEPARTMENT OF HEALTH FINANCE........	Page.Ln 3.41	
	ARTICLE 2	DEPARTMENT OF HEALTH POLICY........	Page.Ln 53.14	
	ARTICLE 3	HEALTH LICENSING BOARDS........	Page.Ln 87.1	
	ARTICLE 4	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY........	Page.Ln 159.11	
	ARTICLE 5	PHARMACY BENEFITS........	Page.Ln 176.24	
	ARTICLE 6	HUMAN SERVICES HEALTH CARE FINANCE........	Page.Ln 195.1	
	ARTICLE 7	HUMAN SERVICES HEALTH CARE POLICY........	Page.Ln 246.1	
	ARTICLE 8	BEHAVIORAL HEALTH........	Page.Ln 249.9	
	ARTICLE 9	BEHAVIORAL HEALTH POLICY........	Page.Ln 256.14	
	ARTICLE 10	CHILDREN'S MENTAL HEALTH TERMINOLOGY........	Page.Ln 292.11	
	ARTICLE 11	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION........	Page.Ln 380.1	
	ARTICLE 12	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES........	Page.Ln 387.15	
	ARTICLE 13	BACKGROUND STUDIES........	Page.Ln 395.18	
	ARTICLE 14	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY........	Page.Ln 397.17	
	ARTICLE 15	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL POLICY........	Page.Ln 416.18	
	ARTICLE 16	ECONOMIC SUPPORTS........	Page.Ln 434.4	
	ARTICLE 17	CHILD PROTECTION AND WELFARE........	Page.Ln 438.14	
	ARTICLE 18	CHILD PROTECTION AND WELFARE POLICY........	Page.Ln 449.4	
	ARTICLE 19	EARLY CARE AND LEARNING........	Page.Ln 485.23	
	ARTICLE 20	CHILDREN AND FAMILIES LICENSING POLICY........	Page.Ln 494.1	
	ARTICLE 21	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES RECODIFICATION CONFORMING CHANGES........	Page.Ln 511.6	
	ARTICLE 22	MISCELLANEOUS........	Page.Ln 578.4	
	ARTICLE 23	FORECAST ADJUSTMENTS........	Page.Ln 590.12	
	ARTICLE 24	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS........	Page.Ln 591.26	
	ARTICLE 25	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS........	Page.Ln 609.21	
	ARTICLE 26	DEPARTMENT OF HEALTH APPROPRIATIONS........	Page.Ln 627.13	
	ARTICLE 27	OTHER AGENCY APPROPRIATIONS........	Page.Ln 653.4	

APPENDIX 

Repealed Minnesota Statutes: S2669-1 

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. 

142A.15 PUBLIC ASSISTANCE LIEN ON RECIPIENT'S CAUSE OF ACTION.Subdivision 1.State agency has lien. 
When the state agency provides, pays for, or becomes liable for medical care or furnishes subsistence or other payments to a person, the agency shall have a lien for the cost of the care and payments on any and all causes of action or recovery rights under any policy, plan, or contract providing benefits for health care or injury that accrue to the person to whom the care or payments were furnished, or to the person's legal representatives, as a result of the occurrence that necessitated the medical care, subsistence, or other payments. For purposes of this section, "state agency" includes prepaid health plans under contract with the commissioner according to sections 256B.69, 256L.01, subdivision 7, 256L.03, subdivision 6, and 256L.12, and Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph (c); children's mental health collaboratives under section 245.493; demonstration projects for persons with disabilities under section 256B.77; nursing homes reimbursed under chapter 256R; and county-based purchasing entities under section 256B.692. 

Subd. 2.Perfection; enforcement. 
(a) The state agency may perfect and enforce its lien under sections 514.69, 514.70, and 514.71, and must file the verified lien statement with the appropriate court administrator in the county of financial responsibility. The verified lien statement must contain the following: the name and address of the person to whom medical care, subsistence, or other payment was furnished; the date of injury; the name and address of vendors furnishing medical care; the dates of the service or payment; the amount claimed to be due for the care or payment; and to the best of the state agency's knowledge, the names and addresses of all persons, firms, or corporations claimed to be liable for damages arising from the injuries. 

(b) This section does not affect the priority of any attorney's lien. The state agency is not subject to any limitations period referred to in section 514.69 or 514.71 and has one year from the date notice is first received by it under subdivision 4, paragraph (c), even if the notice is untimely, or one year from the date medical bills are first paid by the state agency, whichever is later, to file its verified lien statement. The state agency may commence an action to enforce the lien within one year of (1) the date the notice required by subdivision 4, paragraph (c), is received, or (2) the date the person's cause of action is concluded by judgment, award, settlement, or otherwise, whichever is later. 

(c) If the notice required in subdivision 4 is not provided by any of the parties to the claim at any stage of the claim, the state agency will have one year from the date the state agency learns of the lack of notice to commence an action. If amounts on the claim or cause of action are paid and the amount required to be paid to the state agency under subdivision 5 is not paid to the state agency, the state agency may commence an action to recover on the lien against any or all of the parties or entities that have either paid or received the payments. 

Subd. 3.Prosecutor. 
(a) The attorney general shall represent the commissioner to enforce the lien created under this section or, if no action has been brought, may initiate and prosecute an independent action on behalf of the commissioner against a person, firm, or corporation that may be liable to the person to whom the care or payment was furnished. 

(b) Any prepaid health plan providing services under sections 256B.69 and 256L.12 and Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph (c); children's mental health collaboratives under section 245.493; demonstration projects for persons with disabilities under section 256B.77; nursing homes reimbursed under chapter 256R; or the county-based purchasing entity providing services under section 256B.692 may retain legal representation to enforce their lien created under this section or, if no action has been brought, may initiate and prosecute an independent action on their behalf against a person, firm, or corporation that may be liable to the person to whom the care or payment was furnished. 

Subd. 4.Notice. 
(a) The state agency must be given notice of monetary claims against a person, firm, or corporation that may be liable in damages to the injured person when the state agency has paid for or become liable for the cost of medical care or payments related to the injury. Notice must be given as provided in this subdivision. 

(b) Applicants for public assistance shall notify the state or county agency of any possible claims they may have against a person, firm, or corporation when they submit the application for assistance. Recipients of public assistance shall notify the state or county agency of any possible claims when those claims arise. 

(c) A person providing medical care services to a recipient of public assistance shall notify the state agency when the person has reason to believe that a third party may be liable for payment of the cost of medical care. 

(d) A party to a claim upon which the state agency may be entitled to a lien under this section shall notify the state agency of its potential lien claim at each of the following stages of a claim: 

(1) when a claim is filed; 

(2) when an action is commenced; and 

(3) when a claim is concluded by payment, award, judgment, settlement, or otherwise. 

(e) Every party involved in any stage of a claim under this subdivision is required to provide notice to the state agency at that stage of the claim. However, when one of the parties to the claim provides notice at that stage, every other party to the claim is deemed to have provided the required notice at that stage of the claim. If the required notice under this paragraph is not provided to the state agency, every party will be deemed to have failed to provide the required notice. A party to a claim includes the injured person or the person's legal representative, the plaintiff, the defendants, or persons alleged to be responsible for compensating the injured person or plaintiff, and any other party to the cause of action or claim, regardless of whether the party knows the state agency has a potential or actual lien claim. 

(f) Notice given to the county agency is not sufficient to meet the requirements of paragraphs (c) and (d). 

Subd. 5.Costs deducted. 
Upon any judgment, award, or settlement of a cause of action, or any part of it, upon which the state agency has filed its lien, including compensation for liquidated, unliquidated, or other damages, reasonable costs of collection, including attorney fees, must be deducted first. The full amount of public assistance paid to or on behalf of the person as a result of the injury must be deducted next, and paid to the state agency. The rest must be paid to the public assistance recipient or other plaintiff. The plaintiff, however, must receive at least one-third of the net recovery after attorney fees and other collection costs. 

Subd. 6.When effective. 
The lien created under this section is effective with respect to any public assistance paid on or after August 1, 1987. 

Subd. 7.Cooperation with information requests required. 
(a) Upon the request of the commissioner: 

(1) any state agency or third-party payer shall cooperate by furnishing information to help establish a third-party liability, as required by the federal Deficit Reduction Act of 2005, Public Law 109-171; 

(2) any employer or third-party payer shall cooperate by furnishing a data file containing information about group health insurance plan or medical benefit plan coverage of its employees or insureds within 60 days of the request. The information in the data file must include at least the following: full name, date of birth, Social Security number if collected and stored in a system routinely used for producing data files by the employer or third-party payer, employer name, policy identification number, group identification number, and plan or coverage type. 

(b) For purposes of section 176.191, subdivision 4, the commissioner of labor and industry may allow the commissioner of children, youth, and families and county agencies direct access and data matching on information relating to workers' compensation claims in order to determine whether the claimant has reported the fact of a pending claim and the amount paid to or on behalf of the claimant to the commissioner of human services. 

(c) For the purpose of compliance with section 169.09, subdivision 13, and federal requirements under Code of Federal Regulations, title 42, section 433.138(d)(4), the commissioner of public safety shall provide accident data as requested by the commissioner of children, youth, and families. The disclosure shall not violate section 169.09, subdivision 13, paragraph (d). 

(d) The commissioner of children, youth, and families and county agencies shall limit its use of information gained from agencies, third-party payers, and employers to purposes directly connected with the administration of its public assistance and child support programs. The provision of information by agencies, third-party payers, and employers to the department under this subdivision is not a violation of any right of confidentiality or data privacy. 

142E.50 DEFINITIONS.Subd. 2.Applicant. 
"Applicant" has the meaning given in section 142E.01, subdivision 2. 

Subd. 12.Provider. 
"Provider" means either a provider as defined in section 142E.01, subdivision 22, or a legal unlicensed provider as defined in section 142E.01, subdivision 19. 

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.02 DEFINITIONS.Subd. 6d.Foster family setting. 
"Foster family setting" has the meaning given in Minnesota Rules, part 2960.3010, subpart 23, and includes settings licensed by the commissioner of human services or the commissioner of corrections. 

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. 

256G.02 DEFINITIONS.Subd. 3.Commissioner. 
"Commissioner" means the commissioner of human services. 

Subd. 5.Department. 
"Department" means the Department of Human Services. 

261.003 ELIGIBILITY STANDARDS, RULES.
The commissioner of human services shall promulgate rules in accordance with chapter 14, prescribing minimum standards of eligibility and payment for poor relief, which shall recognize cost of living differences in the various counties of the state. 

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.