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; 62U.04, by adding a 
1.19 	subdivision; 103I.005, subdivision 17b; 103I.101, subdivisions 2, 5, 6, by adding 
1.20 	a subdivision; 103I.208, subdivisions 1, 1a, 2; 103I.235, subdivision 1; 103I.525, 
1.21 	subdivisions 2, 6, 8; 103I.531, subdivisions 2, 6, 8; 103I.535, subdivisions 2, 6, 
1.22 	8; 103I.541, subdivisions 2b, 2c, 4; 103I.545, subdivisions 1, 2; 103I.601, 
1.23 	subdivisions 2, 4; 116L.881; 121A.61, subdivision 3; 125A.15; 125A.744, 
1.24 	subdivision 2; 127A.11; 127A.70, subdivision 2; 128C.02, subdivision 5; 136A.25; 
1.25 	136A.26; 136A.27; 136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 
1.26 	22, by adding a subdivision; 136A.32, subdivisions 1, 4, by adding a subdivision; 
1.27 	136A.33; 136A.34, subdivisions 3, 4; 136A.36; 136A.38; 136A.41; 136A.42; 
1.28 	136F.67, subdivision 1; 138.912, subdivisions 1, 2, 3, 4, 6; 142A.03, subdivision 
1.29 	2, by adding a subdivision; 142A.607, subdivision 14; 142A.609, subdivision 21; 
1.30 	142A.76, subdivisions 2, 3; 142B.01, subdivision 15; 142B.05, subdivision 3; 
1.31 	142B.10, subdivision 14; 142B.16, subdivision 2; 142B.171, subdivision 2; 
1.32 	142B.30, subdivision 1, by adding a subdivision; 142B.41, subdivision 9, by adding 
1.33 	a subdivision; 142B.47; 142B.51, subdivision 2; 142B.65, subdivisions 8, 9; 
1.34 	142B.66, subdivision 3; 142B.70, subdivisions 7, 8; 142B.80; 142C.06, by adding 
1.35 	a subdivision; 142C.11, subdivision 8; 142C.12, subdivisions 1, 6; 142D.31, 
1.36 	subdivision 2; 142E.03, subdivision 3; 142E.11, subdivisions 1, 2; 142E.13, 
1.37 	subdivision 2; 142E.15, subdivision 1; 142E.16, subdivisions 3, 7; 142E.51, 
1.38 	subdivisions 5, 6; 142G.02, subdivision 56; 142G.27, subdivision 4; 142G.42, 
2.1 	subdivision 3; 144.061; 144.0758, subdivision 3; 144.1205, subdivisions 2, 4, 8, 
2.2 	9, 10; 144.121, subdivisions 1a, 2, 5, by adding subdivisions; 144.1215, by adding 
2.3 	a subdivision; 144.1222, subdivision 1a; 144.125, subdivisions 1, 2; 144.225, 
2.4 	subdivision 2a; 144.3831, subdivision 1; 144.50, by adding a subdivision; 144.55, 
2.5 	subdivision 1a; 144.554; 144.555, subdivisions 1a, 1b; 144.562, subdivisions 2, 
2.6 	3; 144.563; 144.608, subdivision 2; 144.651, subdivision 2; 144.966, subdivision 
2.7 	2; 144.99, subdivision 1; 144A.43, subdivision 15; 144E.123, subdivision 3; 
2.8 	144E.35; 144G.08, subdivision 45; 144G.45, subdivision 6; 145.8811; 145.895; 
2.9 	145.901, subdivisions 1, 2, 4; 145.9255, subdivision 1; 145.9265; 145.987, 
2.10 	subdivisions 1, 2; 147.01, subdivision 7; 147.037, by adding a subdivision; 
2.11 	147A.02; 147D.03, subdivision 1; 148.108, subdivision 1, by adding subdivisions; 
2.12 	148.191, subdivision 2; 148.241; 148.512, subdivision 17a; 148.5192, subdivision 
2.13 	3; 148.5194, subdivision 3b; 148.56, subdivision 1; 148.6401; 148.6402, 
2.14 	subdivisions 1, 7, 8, 13, 14, 16, 16a, 19, 20, 23, 25, by adding subdivisions; 
2.15 	148.6403; 148.6404; 148.6405; 148.6408, subdivision 2, by adding a subdivision; 
2.16 	148.6410, subdivision 2, by adding a subdivision; 148.6412, subdivisions 2, 3; 
2.17 	148.6415; 148.6418; 148.6420, subdivision 1; 148.6423, subdivisions 1, 2, by 
2.18 	adding a subdivision; 148.6425, subdivision 2, by adding subdivisions; 148.6428; 
2.19 	148.6432, subdivisions 1, 2, 3, 4, by adding a subdivision; 148.6435; 148.6438; 
2.20 	148.6443, subdivisions 3, 4, 5, 6, 7, 8; 148.6445, by adding subdivisions; 148.6448, 
2.21 	subdivisions 1, 2, 4, 6; 148.6449, subdivisions 1, 2, 7; 148B.53, subdivision 3; 
2.22 	148E.180, subdivisions 1, 5, 7, by adding subdivisions; 148F.11, subdivision 1; 
2.23 	149A.02, by adding a subdivision; 150A.105, by adding a subdivision; 151.01, 
2.24 	subdivisions 15, 23; 151.065, subdivisions 1, 3, 6; 151.101; 151.555, subdivisions 
2.25 	6, 10; 151.741, subdivision 5; 152.12, subdivision 1; 153B.85, subdivisions 1, 3; 
2.26 	156.015, by adding subdivisions; 157.16, subdivisions 2, 2a, 3, 3a, by adding a 
2.27 	subdivision; 174.285, subdivision 4; 214.104; 216C.266, subdivisions 2, 3; 241.021, 
2.28 	subdivision 2; 242.09; 242.21; 242.32, subdivision 1; 245.095, subdivision 5, by 
2.29 	adding a subdivision; 245.0962, subdivision 1; 245.462, subdivisions 4, 20; 
2.30 	245.4661, subdivisions 2, 6, 7, 9; 245.4662, subdivision 1; 245.467, subdivision 
2.31 	4; 245.4682, subdivision 3; 245.469; 245.4711, subdivisions 1, 4; 245.4712, 
2.32 	subdivisions 1, 3; 245.4835, subdivision 2; 245.4863; 245.487, subdivision 2; 
2.33 	245.4871, subdivisions 3, 4, 5, 6, 13, 15, 17, 19, 21, 22, 28, 29, 31, 32, 34, by 
2.34 	adding a subdivision; 245.4873, subdivision 2; 245.4874, subdivision 1; 245.4875, 
2.35 	subdivision 5; 245.4876, subdivisions 4, 5; 245.4877; 245.488, subdivisions 1, 3; 
2.36 	245.4881, subdivisions 1, 3, 4; 245.4882, subdivisions 1, 5; 245.4884; 245.4885, 
2.37 	subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 3; 245.4905; 
2.38 	245.4906, subdivision 2; 245.4907, subdivisions 2, 3; 245.491, subdivision 2; 
2.39 	245.492, subdivision 3; 245.50, subdivision 3, by adding a subdivision; 245.697, 
2.40 	subdivisions 1, 2a; 245.814, subdivisions 1, 2, 3, 4; 245.826; 245.91, subdivisions 
2.41 	2, 4; 245.92; 245.94, subdivision 1; 245.975, subdivision 1; 245A.03, subdivision 
2.42 	2; 245A.04, subdivisions 1, 7; 245A.05; 245A.07, subdivision 2; 245A.16, 
2.43 	subdivision 1; 245A.18, subdivision 1; 245A.242, subdivision 2; 245A.26, 
2.44 	subdivisions 1, 2; 245C.02, subdivisions 7, 12, 13, by adding a subdivision; 
2.45 	245C.031, subdivision 9; 245C.033, subdivision 2; 245C.05, subdivision 7, by 
2.46 	adding a subdivision; 245C.07; 245C.08, subdivision 3; 245C.13, subdivision 2; 
2.47 	245C.14, by adding a subdivision; 245C.15, subdivision 4a, by adding a 
2.48 	subdivision; 245C.22, subdivision 5; 245D.02, subdivision 4a; 245I.05, subdivisions 
2.49 	3, 5; 245I.06, subdivision 3; 245I.11, subdivision 5; 245I.12, subdivision 5; 245I.23, 
2.50 	subdivision 7; 246C.12, subdivision 4; 252.27, subdivision 1; 254B.04, subdivision 
2.51 	1a; 254B.05, subdivision 1a; 254B.06, by adding a subdivision; 256.01, by adding 
2.52 	a subdivision; 256.478, subdivision 2; 256.88; 256.89; 256.90; 256.91; 256.92; 
2.53 	256.9657, by adding a subdivision; 256.969, subdivision 2b; 256.98, subdivision 
2.54 	1; 256.983, subdivision 4; 256B.02, subdivision 11; 256B.0371, subdivision 3; 
2.55 	256B.04, subdivision 21; 256B.051, subdivision 3; 256B.055, subdivision 12; 
2.56 	256B.0615, subdivisions 1, 3; 256B.0616, subdivisions 1, 4, 5; 256B.0622, 
2.57 	subdivisions 1, 3a, 7a, 8, 11, 12; 256B.0625, subdivisions 2, 3b, 13, 13c, 13d, 13e, 
2.58 	17a, 20, 25c, 30, 54, by adding subdivisions; 256B.064, subdivision 1a; 256B.0659, 
3.1 	subdivision 21; 256B.0757, subdivisions 2, 5, by adding a subdivision; 256B.0943, 
3.2 	subdivisions 1, 3, 9, 12, 13; 256B.0945, subdivision 1; 256B.0946, subdivision 6; 
3.3 	256B.0947, subdivision 3a; 256B.12; 256B.1973, by adding a subdivision; 256B.69, 
3.4 	subdivisions 6d, 23, by adding a subdivision; 256B.692, subdivision 2; 256B.76, 
3.5 	subdivisions 1, 6, by adding a subdivision; 256B.761; 256B.766; 256B.77, 
3.6 	subdivision 7a; 256B.82; 256B.85, subdivision 12; 256D.44, subdivision 5; 
3.7 	256G.01, subdivisions 1, 3; 256G.03, subdivision 2; 256G.04, subdivision 2; 
3.8 	256G.09, subdivisions 2, 3, 4, 5; 256G.10; 256G.11; 256G.12, subdivision 1; 
3.9 	256L.03, subdivision 5; 256R.01, by adding a subdivision; 260.65; 260.66, 
3.10 	subdivision 1; 260.691, subdivision 1; 260.692; 260.762, subdivision 2a; 260.810, 
3.11 	subdivisions 1, 2; 260.821, subdivision 2; 260B.157, subdivision 3; 260B.171, 
3.12 	subdivision 4; 260C.001, subdivision 2; 260C.007, subdivisions 16, 19, 26d, 27b; 
3.13 	260C.150, subdivision 3; 260C.157, subdivision 3; 260C.201, subdivisions 1, 2; 
3.14 	260C.202, subdivision 2, by adding a subdivision; 260C.204; 260C.221, subdivision 
3.15 	2; 260C.223, subdivisions 1, 2; 260C.301, subdivision 4; 260C.452, subdivision 
3.16 	4; 260D.01; 260D.02, subdivisions 5, 9; 260D.03, subdivision 1; 260D.04; 260D.06, 
3.17 	subdivision 2; 260D.07; 260E.03, subdivisions 6, 15; 260E.09; 260E.11, 
3.18 	subdivisions 1, 3; 260E.20, subdivision 1; 260E.24, subdivisions 1, 2; 260E.30, 
3.19 	subdivision 4; 260E.33, subdivision 6; 261.232; 270B.14, subdivision 1, by adding 
3.20 	a subdivision; 295.50, subdivisions 3, 9b; 295.52, subdivisions 1, 1a, 2, 3, 4; 
3.21 	299C.76, subdivision 1; 299F.011, subdivision 4a; 326.72, subdivision 1; 326.75, 
3.22 	subdivisions 3, 3a; 327.15, subdivisions 2, 3, 4, by adding a subdivision; 354B.20, 
3.23 	subdivision 7; 402A.10, subdivisions 1a, 2, 4c; 402A.12; 402A.16, subdivisions 
3.24 	1, 2, 3, 4; 402A.18, subdivisions 2, 3, by adding a subdivision; 402A.35, 
3.25 	subdivisions 1, 4, 5; 462A.2095, subdivision 6; 466.131; 518.165, subdivision 5; 
3.26 	524.5-106; 524.5-118, subdivision 2; 595.02, subdivision 2; 626.5533; Laws 2021, 
3.27 	First Special Session chapter 7, article 2, section 81; Laws 2023, chapter 70, article 
3.28 	7, section 34; article 20, section 2, subdivision 30; Laws 2024, chapter 127, article 
3.29 	67, sections 4; 6; proposing coding for new law in Minnesota Statutes, chapters 
3.30 	62J; 62Q; 62V; 142B; 142F; 144; 144E; 145; 148; 153; 245; 256B; 260E; 295; 
3.31 	306; 307; 609; proposing coding for new law as Minnesota Statutes, chapter 148G; 
3.32 	repealing Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; 
3.33 	62E.25; 62J.824; 62K.10, subdivision 3; 103I.550; 136A.29, subdivision 4; 138.912, 
3.34 	subdivision 7; 142A.15; 142E.50, subdivisions 2, 12; 148.108, subdivisions 2, 3, 
3.35 	4; 148.6402, subdivision 22a; 148.6420, subdivisions 2, 3, 4; 148.6423, subdivisions 
3.36 	4, 5, 7, 8, 9; 148.6425, subdivision 3; 148.6430; 148.6445, subdivisions 5, 6, 8; 
3.37 	156.015, subdivision 1; 245A.02, subdivision 6d; 245A.11, subdivision 8; 
3.38 	256B.0622, subdivision 4; 256B.0625, subdivision 38; 256G.02, subdivisions 3, 
3.39 	5; 261.003; Minnesota Rules, parts 2500.1150; 2500.2030; 4695.2900; 6800.5100, 
3.40 	subpart 5; 6800.5400, subparts 5, 6; 6900.0250, subparts 1, 2; 9100.0400, subparts 
3.41 	1, 3; 9100.0500; 9100.0600.
3.42 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.43 	ARTICLE 1
3.44 	DEPARTMENT OF HEALTH FINANCE

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

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

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

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

4.17 	Sec. 3. [62J.8241] FACILITY FEES PROHIBITED.
4.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
4.19 	the meanings given.
4.20 	(b) "Control" has the meaning given in section 145D.01.
4.21 	(c) "Facility fee" means any separate charge or billing by a provider-based clinic in 
4.22 	addition to a professional fee for physicians' services that is intended to cover building, 
4.23 	electronic medical records systems, billing, and other administrative and operational 
4.24 	expenses.
4.25 	(d) "Health care clearinghouse" has the meaning given in Code of Federal Regulations, 
4.26 	title 45, section 160.103.
4.27 	(e) "Health care provider" has the meaning given in section 145B.02. Health care provider 
4.28 	does not include any hospital that:
5.1 	(1) is certified by the Centers for Medicare and Medicaid Services as a Medicare critical 
5.2 	access hospital; and
5.3 	(2) is not affiliated, by governance or control, with a health system or other hospital.
5.4 	(f) "NPI" means the standard, unique health identifier for health care providers that is 
5.5 	issued by the national provider system in accordance with Code of Federal Regulations, 
5.6 	title 45, section 162.
5.7 	(g) "Provider-based clinic" means the site of an off-campus clinic or provider office, 
5.8 	located at least 250 yards from the main hospital buildings or as determined by the Centers 
5.9 	for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144 
5.10 	or a health system that operates one or more hospitals licensed under chapter 144 and is 
5.11 	primarily engaged in providing diagnostic and therapeutic care, including medical history, 
5.12 	physical examinations, assessment of health status, and treatment monitoring. This definition 
5.13 	does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, 
5.14 	pharmacy, or educational services and does not include facilities designated as rural health 
5.15 	clinics.
5.16 		Subd. 2.Provider-based clinic prohibition. Health care providers are prohibited from 
5.17 	charging, billing, or collecting a facility fee for nonemergency services provided at a 
5.18 	provider-based clinic, including services provided by telehealth as defined in section 62A.673, 
5.19 	subdivision 2, paragraph (h).
5.20 		Subd. 3.Service-specific prohibition. (a) Regardless of where the services are provided, 
5.21 	except for at emergency departments located on a hospital campus, health care providers 
5.22 	are prohibited from charging, billing, or collecting a facility fee for outpatient evaluation 
5.23 	and management services.
5.24 	(b) Notwithstanding paragraph (a), a health care provider may charge, bill, or collect a 
5.25 	facility fee for observation stays on a hospital campus and for outpatient services that use 
5.26 	a current procedural terminology (CPT) evaluation and management code or CPT assessment 
5.27 	and management code when billed for wound care, orthopedics, anticoagulation, oncology, 
5.28 	obstetrics, and solid organ transplant.
5.29 		Subd. 4.Unique NPI. (a) Provider-based clinics must apply for, obtain, and use on all 
5.30 	claims for reimbursement or payment for health services provided at the provider-based 
5.31 	clinic, a unique NPI that is distinct from the hospital's NPI.
5.32 	(b) The provider-based clinic's unique NPI must be included on any claim for 
5.33 	reimbursement or payment for health services provided at the provider-based clinic, 
6.1 	regardless of whether the claim is filed or submitted by or through a central office of the 
6.2 	hospital or a health care clearinghouse.
6.3 		Subd. 5.Notification. (a) If a hospital or health system charges a facility fee utilizing 
6.4 	a CPT evaluation and management code or assessment and management code for outpatient 
6.5 	services provided at a provider-based clinic where a professional fee is also expected to be 
6.6 	charged, the hospital or health system must provide the patient with a written notice that 
6.7 	includes the following information:
6.8 	(1) that the provider-based clinic is part of a hospital or health system and that the hospital 
6.9 	or health system charges a facility fee that is in addition to and separate from the professional 
6.10 	fee charged by the provider;
6.11 	(2) the amount of the patient's potential financial liability, including any facility fee 
6.12 	likely to be charged, and, where professional medical services are provided by an affiliated 
6.13 	provider, any professional fee likely to be charged, or, if the exact type and extent of the 
6.14 	professional medical services needed are not known or the terms of a patient's health 
6.15 	insurance coverage are not known with reasonable certainty, an estimate of the patient's 
6.16 	financial liability based on typical or average charges for visits to the provider-based clinic, 
6.17 	including the facility fee;
6.18 	(3) a statement that the patient's actual financial liability will depend on the professional 
6.19 	medical services actually provided to the patient;
6.20 	(4) an explanation that the patient may incur financial liability that is greater than the 
6.21 	patient would incur if the professional medical services were not provided by a 
6.22 	provider-based clinic;
6.23 	(5) a telephone number the patient may call for additional information regarding the 
6.24 	patient's potential financial liability, including an estimate of the facility fee likely to be 
6.25 	charged based on the scheduled professional medical services; and
6.26 	(6) that a patient covered by a health insurance policy should contact the health insurer 
6.27 	for additional information regarding the hospital's or health system's charges and fees, 
6.28 	including the patient's potential financial liability, if any, for the charges and fees.
6.29 	(b) If a hospital or health system charges a facility fee without utilizing a CPT evaluation 
6.30 	and management code for outpatient services provided at a provider-based clinic, the hospital 
6.31 	or health system must provide the patient with a written notice that includes the following 
6.32 	information:
7.1 	(1) that the provider-based clinic is part of a hospital or health system and that the hospital 
7.2 	or health system charges a facility fee that may be in addition to and separate from the 
7.3 	professional fee charged by a provider;
7.4 	(2) a statement that the patient's actual financial liability will depend on the professional 
7.5 	medical services actually provided to the patient;
7.6 	(3) an explanation that the patient may incur financial liability that is greater than the 
7.7 	patient would incur if the provider-based clinic was not hospital-based;
7.8 	(4) a telephone number the patient may call for additional information regarding the 
7.9 	patient's potential financial liability, including an estimate of the facility fee likely to be 
7.10 	charged based on the scheduled professional medical services; and
7.11 	(5) that a patient covered by a health insurance policy should contact the health insurer 
7.12 	for additional information regarding the hospital's or health system's charges and fees, 
7.13 	including the patient's potential financial liability, if any, for the charges and fees.
7.14 	(c) Each initial billing statement that includes a facility fee must:
7.15 	(1) clearly identify the fee as a facility fee that is billed in addition to, or separately from, 
7.16 	any professional fee billed by the provider;
7.17 	(2) provide the corresponding Medicare facility fee reimbursement rate for the same 
7.18 	service as a comparison or, if there is no corresponding Medicare facility fee for the service:
7.19 	(i) the approximate amount Medicare would have paid the hospital for the facility fee 
7.20 	on the billing statement; or
7.21 	(ii) the percentage of the hospital's charges that Medicare would have paid the hospital 
7.22 	for the facility fee;
7.23 	(3) include a statement that the facility fee is intended to cover the hospital's or health 
7.24 	system's operational expenses;
7.25 	(4) inform the patient that the patient's financial liability may have been less if the services 
7.26 	had been provided at a facility not owned or operated by the hospital or health system; and
7.27 	(5) include written notice of the patient's right to request a reduction in the facility fee 
7.28 	or any other portion of the bill and a telephone number that the patient may use to request 
7.29 	such a reduction without regard to whether the patient qualifies for, or is likely to be granted, 
7.30 	any reduction.
7.31 	No later than October 15, 2025, and annually thereafter, each hospital, health system, and 
7.32 	provider-based clinic must submit to the commissioner of health a sample of a billing 
8.1 	statement issued by the hospital, health system, or provider-based clinic that complies with 
8.2 	the provisions of this paragraph and which represents the format of billing statements 
8.3 	received by patients. The billing statement must not contain patient identifying information.
8.4 	(d) The written notices described in paragraphs (a) to (c) and (g) to (i) must be in plain 
8.5 	language and in a form that may be reasonably understood by a patient who does not possess 
8.6 	special knowledge regarding hospital or health system facility fee charges. On and after 
8.7 	October 1, 2025, the notices must include tag lines in at least the top 15 languages spoken 
8.8 	in Minnesota indicating that the notice is available in each of those top 15 languages. The 
8.9 	15 languages must be either the languages in the list published by the Department of Health 
8.10 	and Human Services in connection with section 1557 of the Patient Protection and Affordable 
8.11 	Care Act, P.L. 111-148, or, as determined by the hospital or health system, the top 15 
8.12 	languages in the geographic area of the provider-based clinic.
8.13 	(e) For nonemergency care, if a patient's appointment is scheduled to occur ten or more 
8.14 	days after the appointment is made, such written notice must be sent to the patient by first 
8.15 	class mail, encrypted electronic mail, or a secure patient Internet portal not more than three 
8.16 	days after the appointment is made. If an appointment is scheduled to occur less than ten 
8.17 	days after the appointment is made or if the patient arrives without an appointment, such 
8.18 	notice must be hand-delivered to the patient when the patient arrives at the provider-based 
8.19 	clinic. For emergency care, such written notice must be provided to the patient as soon as 
8.20 	practicable after the patient is stabilized in accordance with the federal Emergency Medical 
8.21 	Treatment and Active Labor Act, United States Code, title 42, section 1395dd, as amended 
8.22 	from time to time, or is determined not to have an emergency medical condition and before 
8.23 	the patient leaves the provider-based clinic. If the patient is unconscious, under great duress, 
8.24 	or for any other reason unable to read the notice and understand and act on the patient's 
8.25 	rights, the notice must be provided to the patient's representative as soon as practicable.
8.26 	(f) Paragraphs (a) to (e) do not apply if a patient is insured by Medicare or the medical 
8.27 	assistance program under chapter 256B or is receiving services under a workers' 
8.28 	compensation plan established to provide medical services.
8.29 	(g) A provider-based clinic must prominently display written notice in locations that are 
8.30 	readily accessible to and visible by patients, including patient waiting or appointment 
8.31 	check-in areas, stating the following:
8.32 	(1) that the provider-based clinic is part of a hospital or health system;
8.33 	(2) the name of the hospital or health system; and
9.1 	(3) that if the provider-based clinic charges a facility fee, the patient may incur a financial 
9.2 	liability greater than the patient would incur if the provider-based clinic was not 
9.3 	hospital-based.
9.4 	On and after October 1, 2025, such notices must include tag lines in at least the top 15 
9.5 	languages spoken in Minnesota indicating that the notice is available in each of those top 
9.6 	15 languages. The 15 languages must be either the languages in the list published by the 
9.7 	Department of Health and Human Services in connection with section 1557 of the Patient 
9.8 	Protection and Affordable Care Act, P.L. 111-148, or, as determined by the hospital or 
9.9 	health system, the top 15 languages in the geographic area of the provider-based clinic. No 
9.10 	later than October 1, 2025, and annually thereafter, each provider-based clinic must submit 
9.11 	a copy of the written notice required by this paragraph to the commissioner of health.
9.12 	(h) A provider-based clinic must identify itself to the public and payers as being 
9.13 	hospital-based, including, at a minimum, by stating the name of the hospital or health system 
9.14 	in its signage, marketing materials, websites, and stationery.
9.15 	(i) A provider-based clinic must, when scheduling services for which a facility fee may 
9.16 	be charged, inform the patient:
9.17 	(1) that the provider-based clinic is part of a hospital or health system;
9.18 	(2) of the name of the hospital or health system;
9.19 	(3) that the hospital or health system may charge a facility fee in addition to and separate 
9.20 	from the professional fee charged by the provider; and
9.21 	(4) of the telephone number the patient may call for additional information regarding 
9.22 	such patient's potential financial liability.
9.23 	(j) If any transaction described in section 145D.01, subdivision 2, results in the 
9.24 	establishment of a provider-based clinic where facility fees may be billed, the hospital or 
9.25 	health system that is the purchaser in the transaction must, no later than 30 days after the 
9.26 	transaction, provide written notice by first class mail of the transaction to each patient served 
9.27 	within the three years preceding the date of the transaction by the health care facility that 
9.28 	has been purchased as part of the transaction. The notice must include the following 
9.29 	information:
9.30 	(1) a statement that the health care facility is now a provider-based clinic and is part of 
9.31 	a hospital or health system, the health care facility's full legal and business name, and the 
9.32 	date of the facility's acquisition by a hospital or health system;
10.1 	(2) the name, business address, and telephone number of the hospital or health system 
10.2 	that is the purchaser of the health care facility;
10.3 	(3) a statement that the provider-based clinic bills, or is likely to bill, patients a facility 
10.4 	fee that may be in addition to, and separate from, any professional fee billed by a health 
10.5 	care provider at the provider-based clinic;
10.6 	(4) a statement that the patient's actual financial liability will depend on the professional 
10.7 	medical services actually provided to the patient and an explanation that the patient may 
10.8 	incur financial liability that is greater than the patient would incur if the provider-based 
10.9 	clinic were not a provider-based clinic;
10.10 	(5) the estimated amount or range of amounts the provider-based clinic may bill for a 
10.11 	facility fee or an example of the average facility fee billed at the provider-based clinic for 
10.12 	the most common services provided at the provider-based clinic; and
10.13 	(6) a statement that, before seeking services at the provider-based clinic, a patient covered 
10.14 	by a health insurance policy should contact the patient's health insurer for additional 
10.15 	information regarding the provider-based clinic fees, including the patient's potential financial 
10.16 	liability, if any, for the fees.
10.17 	A copy of the written notice provided to patients in accordance with this subdivision must 
10.18 	be filed with the commissioner of health. The Department of Health must post a link to the 
10.19 	notice on its website. A hospital, health system, or provider-based clinic must not collect a 
10.20 	facility fee for services provided at a provider-based clinic that is subject to the provisions 
10.21 	of this subdivision from the date of the transaction until at least 30 days after the written 
10.22 	notice required pursuant to this subdivision is mailed to the patient or a copy of the notice 
10.23 	is filed with the commissioner of health, whichever is later. By July 1, 2026, and annually 
10.24 	thereafter, each provider-based clinic that was the subject of a transaction, as described in 
10.25 	section 145D.01, subdivision 2, during the preceding calendar year must report to the 
10.26 	commissioner of health the number of patients served by the provider-based clinic in the 
10.27 	preceding three years.
10.28 		Subd. 6.Reporting. (a) By January 15, 2027, and each year thereafter, hospitals licensed 
10.29 	under chapter 144 and health systems operating one or more hospitals licensed under chapter 
10.30 	144 must submit a report to the commissioner of health identifying facility fees charged, 
10.31 	billed, and collected during the preceding calendar year. The commissioner must publish 
10.32 	the information reported on a publicly accessible website. The report shall be in the format 
10.33 	prescribed by the commissioner of health.
11.1 	(b) The report under this subdivision must include the following information for each 
11.2 	facility owned or operated by the hospital or health system providing services for which a 
11.3 	facility fee is charged, billed, or collected:
11.4 	(1) the name and full address of each facility;
11.5 	(2) the number of patient visits at each facility; and
11.6 	(3) the number, total amount, and range of allowable facility fees paid at each facility 
11.7 	by Medicare, medical assistance, MinnesotaCare, and private insurance.
11.8 	(c) The report under this subdivision must include the following information for the 
11.9 	entire hospital or health system:
11.10 	(1) the total amount charged and billed for facility fees;
11.11 	(2) the total amount collected from facility fees;
11.12 	(3) the top ten procedures or services provided by the hospital or health system that 
11.13 	generated the greatest amount of facility fee gross revenue, the volume of each of these ten 
11.14 	procedures or services and the gross and net revenue totals for each procedure or service, 
11.15 	and the total net amount of revenue received by the hospital or health system derived from 
11.16 	facility fees;
11.17 	(4) the top ten procedures or services, based on patient volume, provided by the hospital 
11.18 	or health system for which facility fees are charged, billed, or collected, based on patient 
11.19 	volume, including the gross and net revenue totals received for each such procedure or 
11.20 	service; and
11.21 	(5) any other information related to facility fees that the commissioner of health may 
11.22 	require.
11.23 		Subd. 7.Interaction with medical assistance. The medical assistance program in chapter 
11.24 	256B is not required to comply with any provision of this section if compliance with the 
11.25 	provision would:
11.26 	(1) prevent the state from receiving federal financial participation for medical assistance 
11.27 	coverage; or
11.28 	(2) result in a lower level of coverage or reduced access to coverage for medical assistance 
11.29 	enrollees.
11.30 		Subd. 8.Enforcement. (a) A violation of this section is an unlawful business practice 
11.31 	for purposes of section 8.31. The attorney general may enforce this section pursuant to 
11.32 	section 8.31.
12.1 	(b) In addition to penalties provided in paragraph (a), the commissioner of health may, 
12.2 	pursuant to the procedures in sections 144.99 and 144.991, impose an administrative penalty 
12.3 	on a health care provider for failure to comply with subdivision 6. The penalty must not 
12.4 	exceed $1,000 per occurrence.
12.5 	(c) The commissioner of health or the commissioner's designee may audit any health 
12.6 	care provider for compliance with the requirements of this section. A health care provider 
12.7 	must make available, upon written request of the commissioner or the commissioner's 
12.8 	designee, copies of any books, documents, records, or data that are necessary for the purposes 
12.9 	of completing the audit for four years after the furnishing of any services for which a facility 
12.10 	fee was charged, billed, or collected.

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

12.12 	Sec. 4. Minnesota Statutes 2024, section 62U.04, is amended by adding a subdivision to 
12.13 	read:
12.14 		Subd. 14.Unique NPI. Data submitted under this section relating to a provider-based 
12.15 	clinic, as defined in section 62J.8241, and that includes an NPI, as defined in section 
12.16 	62J.8241, must include the provider-based clinic's unique NPI that is distinct from the 
12.17 	hospital's NPI.

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

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

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

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

13.18 	Sec. 8. Minnesota Statutes 2024, section 103I.208, subdivision 2, is amended to read:
13.19 		Subd. 2.Permit fee. (a) The permit fee to be paid by a property owner is:
13.20 	(1) for a water supply well that is not in use under a maintenance permit, $175 $225
13.21 	annually;
13.22 	(2) for an environmental well that is unsealed under a maintenance permit, $175 annually 
13.23 	except no fee is required for an environmental well owned by a federal agency, state agency, 
13.24 	or local unit of government that is unsealed under a maintenance permit. "Local unit of 
13.25 	government" means a statutory or home rule charter city, town, county, or soil and water 
13.26 	conservation district, a watershed district, an organization formed for the joint exercise of 
13.27 	powers under section 471.59, a community health board, or other special purpose district 
13.28 	or authority with local jurisdiction in water and related land resources management;
13.29 	(3) for environmental wells on an environmental well site that are unsealed under a 
13.30 	maintenance permit,:
14.1 	$175 (i) $225 annually for one to ten environmental wells per site regardless of the 
14.2 	number of environmental wells located on site;
14.3 	(ii) $325 annually for 11 to 20 environmental wells per site; and
14.4 	(iii) $425 annually for 21 or more environmental wells per site;
14.5 	(4) for a groundwater thermal exchange device, in addition to the notification fee for 
14.6 	water supply wells, $275 $350 for systems using 20 gallons per minute or less and $590 
14.7 	for systems using over 20 gallons per minute, which includes the state core function fee;
14.8 	(5) for a bored geothermal heat exchanger with less than ten tons of heating/cooling 
14.9 	capacity, $275 $350;
14.10 	(6) for a bored geothermal heat exchanger with ten to 50 tons of heating/cooling capacity, 
14.11 	$515 $590;
14.12 	(7) for a bored geothermal heat exchanger with greater than 50 tons of heating/cooling 
14.13 	capacity, $740 $815;
14.14 	(8) for a dewatering well that is unsealed under a maintenance permit, $175 $330 annually 
14.15 	for each dewatering well, except a dewatering project comprising more than five or more
14.16 	dewatering wells shall be issued a single permit for $875 $1,620 annually for dewatering 
14.17 	wells recorded on the permit;
14.18 	(9) for an elevator boring, $275 $325 for each boring; and
14.19 	(10) for a submerged closed loop heat exchanger system, in addition to the notification 
14.20 	fee for water supply wells, $3,250, which includes the state core function fee.
14.21 	(b) For purposes of this subdivision, an environmental well site includes all of the 
14.22 	environmental wells on a single property. A single property is considered one tax parcel or 
14.23 	multiple contiguous parcels with the same owner.

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

17.6 	Sec. 10. Minnesota Statutes 2024, section 103I.525, subdivision 2, is amended to read:
17.7 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
17.8 	of a well contractor is $75 $100. The commissioner may not act on an application until the 
17.9 	application fee is paid.
17.10 	(b) The renewal fee for certification as a representative of a well contractor is $75 $100. 
17.11 	The commissioner may not renew a certification until the renewal fee is paid.
17.12 	(c) A certified representative must file an application and a renewal application fee to 
17.13 	renew the certification by the date stated in the certification. The renewal application must 
17.14 	include information that the certified representative has met continuing education 
17.15 	requirements established by the commissioner by rule.

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

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

18.1 	Sec. 13. Minnesota Statutes 2024, section 103I.531, subdivision 2, is amended to read:
18.2 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
18.3 	of a limited well/boring contractor is $75 $100. The commissioner may not act on an 
18.4 	application until the application fee is paid.
18.5 	(b) The renewal fee for certification as a representative of a limited well/boring contractor 
18.6 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
18.7 	(c) The fee for three or more limited well/boring contractor certifications is $225 $275.
18.8 	(d) A certified representative must file an application and a renewal application fee to 
18.9 	renew the certification by the date stated in the certification. The renewal application must 
18.10 	include information that the certified representative has met continuing education 
18.11 	requirements established by the commissioner by rule.

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

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

18.26 	Sec. 16. Minnesota Statutes 2024, section 103I.535, subdivision 2, is amended to read:
18.27 		Subd. 2.Certification fee. (a) The application fee for certification as a representative 
18.28 	of an elevator boring contractor is $75 $100. The commissioner may not act on an application 
18.29 	until the application fee is paid.
19.1 	(b) The renewal fee for certification as a representative of an elevator boring contractor 
19.2 	is $75 $100. The commissioner may not renew a certification until the renewal fee is paid.
19.3 	(c) A certified representative must file an application and a renewal application fee to 
19.4 	renew the certification by the date stated in the certification. The renewal application must 
19.5 	include information that the certified representative has met continuing education 
19.6 	requirements established by the commissioner by rule.

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

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

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

19.24 	Sec. 20. Minnesota Statutes 2024, section 103I.541, subdivision 2c, is amended to read:
19.25 		Subd. 2c.Certification fee. (a) The application fee for certification as a representative 
19.26 	of an environmental well contractor is $75 $100. The commissioner may not act on an 
19.27 	application until the application fee is paid.
19.28 	(b) The renewal fee for certification as a representative of an environmental well 
19.29 	contractor is $75 $100. The commissioner may not renew a certification until the renewal 
19.30 	fee is paid.
20.1 	(c) A certified representative must file an application and a renewal application fee to 
20.2 	renew the certification by the date stated in the certification. The renewal application must 
20.3 	include information that the certified representative has met continuing education 
20.4 	requirements established by the commissioner by rule.

20.5 	Sec. 21. Minnesota Statutes 2024, section 103I.541, subdivision 4, is amended to read:
20.6 		Subd. 4.License renewal. (a) A person must file an application and a renewal application 
20.7 	fee to renew the license by the date stated in the license.
20.8 	(b) The renewal application fee for an environmental well contractor's license is $75
20.9 	$100.
20.10 	(c) The renewal application must include information that the certified representative 
20.11 	of the applicant has met continuing education requirements established by the commissioner 
20.12 	by rule.
20.13 	(d) At the time of the renewal, the commissioner must have on file all well and boring 
20.14 	construction reports, well and boring sealing reports, well permits, and notifications for 
20.15 	work conducted by the licensed person since the last license renewal.

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

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

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

21.28 	Sec. 25. Minnesota Statutes 2024, section 103I.601, subdivision 4, is amended to read:
21.29 		Subd. 4.Notification and map of borings. (a) By ten days before beginning exploratory 
21.30 	boring, an explorer must submit to the commissioner of health a notification of the proposed 
21.31 	boring map and a fee of $275 $325 for each boring constructed.
22.1 	(b) By ten days before beginning exploratory boring, an explorer must submit to the 
22.2 	commissioners of health and natural resources a county road map on a single sheet of paper 
22.3 	that is 8-1/2 by 11 inches in size and having a scale of one-half inch equal to one mile, as 
22.4 	prepared by the Department of Transportation, or a 7.5 minute series topographic map 
22.5 	(1:24,000 scale), as prepared by the United States Geological Survey, showing the location 
22.6 	of each proposed exploratory boring to the nearest estimated 40 acre parcel. Exploratory 
22.7 	boring that is proposed on the map may not be commenced later than 180 days after 
22.8 	submission of the map, unless a new map is submitted.

22.9 	Sec. 26. [144.063] DEMENTIA SERVICES PROGRAM ESTABLISHED.
22.10 	The commissioner of health shall establish the dementia services program to:
22.11 	(1) facilitate the coordination and support of:
22.12 	(i) state-funded policies and programs that relate to Alzheimer's disease and related 
22.13 	forms of dementia;
22.14 	(ii) outreach programs and services between state agencies, local public health 
22.15 	departments, Tribal Nations, educational institutions, and community groups for the purpose 
22.16 	of fostering public awareness and education regarding Alzheimer's disease and related forms 
22.17 	of dementia; and
22.18 	(iii) services and activities between groups that are interested in dementia research, 
22.19 	programs, and services, including area agencies on aging, service providers, advocacy 
22.20 	groups, legal services, emergency personnel, law enforcement, local public health 
22.21 	departments, Tribal Nations, and state colleges and universities;
22.22 	(2) facilitate the coordination, review, publication, and implementation of and updates 
22.23 	to the Minnesota Dementia Strategic Plan;
22.24 	(3) use and share data related to the impact of Alzheimer's disease and related forms of 
22.25 	dementia in Minnesota to guide statewide action; and
22.26 	(4) incorporate early detection and risk reduction strategies into existing department-led 
22.27 	public health programs.

22.28 	Sec. 27. Minnesota Statutes 2024, section 144.1205, subdivision 2, is amended to read:
22.29 		Subd. 2.Initial and annual fee. (a) A licensee must pay an initial fee that is equivalent 
22.30 	to the annual fee upon issuance of the initial license.
23.1 	(b) A licensee must pay an annual fee at least 60 days before the anniversary date of the 
23.2 	issuance of the license. The annual fee is as follows:

23.3	TYPE
		LICENSE FEE
	
23.523.4
	Academic broad scope - type A, B, or C
		$25,896
$34,500
		
23.723.6
	Academic broad scope - type A, B, or C (4-8 locations)
		$31,075
$41,400
		
23.923.8
	Academic broad scope - type A, B, or C (9 or more locations)
		$36,254
$48,300
		
23.1123.10
	Medical broad scope - type A
		$25,896
$34,500
		
23.1323.12
	Medical broad scope - type A (4-8 locations)
		$31,075
$41,400
		
23.1523.14
	Medical broad scope - type A (9 or more locations)
		$36,254
$48,300
		
23.16
23.17
23.18	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$4,784
$6,600
		
23.19
23.20
23.21	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies (4-8 locations)
		$5,740
$7,900
		
23.22
23.23
23.24	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
		
23.2623.25
	Teletherapy
		$11,648
$15,500
		
23.2823.27
	Gamma knife
		$11,648
$15,500
		
23.3023.29
	Veterinary medicine
		$2,600
$3,500
		
23.3223.31
	In vitro testing lab
		$2,600
$3,500
		
23.3423.33
	Nuclear pharmacy
		$11,440
$15,300
		
23.3623.35
	Nuclear pharmacy (5 or more locations)
		$13,728
$18,300
		
23.3823.37
	Radiopharmaceutical distribution (10 CFR 32.72)
		$4,992
$6,700
		
23.39
23.40	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$11,440
$15,300
		
23.41
23.42	Radiopharmaceutical processing and distribution (10 CFR 
32.72) (5 or more locations)
		$13,728
$18,300
		
23.4423.43
	Medical sealed sources - distribution (10 CFR 32.74)
		$4,992
$6,700
		
24.1
24.2	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$11,440
$15,300
		
24.3
24.4	Medical sealed sources - processing and distribution (10 CFR 
32.74) (5 or more locations)
		$13,728
$18,300
		
24.624.5
	Well logging - sealed sources
		$4,888
$6,600
		
24.7
24.8	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$2,600
$3,800
		
24.924.10
	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (4-8 locations)
		$3,120
$4,500
		
24.11
24.12	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other) (9 or more locations)
		$3,640
$5,200
		
24.1424.13
	X-ray fluorescent analyzer
		$1,976
$2,700
		
24.1624.15
	Manufacturing and distribution - type A broad scope
		$25,896
$34,500
		
24.17
24.18	Manufacturing and distribution - type A broad scope (4-8 
locations)
		$31,075
$41,400
		
24.19
24.20	Manufacturing and distribution - type A broad scope (9 or more 
locations)
		$36,254
$48,300
		
24.2224.21
	Manufacturing and distribution - type B or C broad scope
		$22,880
$30,500
		
24.23
24.24	Manufacturing and distribution - type B or C broad scope (4-8 
locations)
		$27,456
$36,600
		
24.25
24.26	Manufacturing and distribution - type B or C broad scope (9 
or more locations)
		$32,032
$42,700
		
24.2824.27
	Manufacturing and distribution - other
		$6,864
$9,200
		
24.3024.29
	Manufacturing and distribution - other (4-8 locations)
		$8,236
$11,000
		
24.3224.31
	Manufacturing and distribution - other (9 or more locations)
		$9,609
$12,800
		
24.3424.33
	Nuclear laundry
		$24,232
$32,300
		
24.3624.35
	Decontamination services
		$6,448
$8,600
		
24.3824.37
	Leak test services only
		$2,600
$3,500
		
24.4024.39
	Instrument calibration service only
		$2,600
$3,500
		
24.4224.41
	Service, maintenance, installation, source changes, etc.
		$6,448
$8,600
		
24.4424.43
	Waste disposal service, prepackaged only
		$7,800
$10,400
		
24.4624.45
	Waste disposal
		$10,816
$14,400
		
25.225.1
	Distribution - general licensed devices (sealed sources)
		$2,288
$3,100
		
25.425.3
	Distribution - general licensed material (unsealed sources)
		$1,456
$2,000
		
25.625.5
	Industrial radiography - fixed or temporary location
		$12,792
$17,200
		
25.7
25.8	Industrial radiography - fixed or temporary location (5 or more 
locations)
		$16,629
$22,300
		
25.1025.9	Irradiators, self-shielding
		$3,744
$5,000
		
25.1225.11
	Irradiators, other, less than 10,000 curies
		$6,968
$9,300
		
25.1425.13
	Research and development - type A, B, or C broad scope
		$12,376
$16,500
		
25.15
25.16	Research and development - type A, B, or C broad scope (4-8 
locations)
		$14,851
$19,800
		
25.17
25.18	Research and development - type A, B, or C broad scope (9 or 
more locations)
		$17,326
$23,100
		
25.2025.19
	Research and development - other
		$5,824
$7,800
		
25.2225.21
	Storage - no operations
		$2,600
$3,500
		
25.2425.23
	Source material - shielding
		$759
$1,100
		
25.2625.25
	Special nuclear material plutonium - neutron source in device
		$4,784
$6,400
		
25.27
25.28	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$4,784
$6,400
		
25.29
25.30	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$6,864
$9,200
		
25.3225.31
	Accelerator-produced radioactive material
		$4,992
$6,700
		
25.3425.33
	Nonprofit educational institutions
		$500
$700

25.35 	Sec. 28. Minnesota Statutes 2024, section 144.1205, subdivision 4, is amended to read:
25.36 		Subd. 4.Initial and renewal application fee. A licensee must pay an initial and a 
25.37 	renewal application fee according to this subdivision.

25.38	TYPE
	APPLICATION FEE
	
25.4025.39
	Academic broad scope - type A, B, or C
		$6,808
$9,100
		
25.4225.41
	Medical broad scope - type A
		$4,508
$6,000
		
26.1
26.2
26.3	Medical - diagnostic, diagnostic and therapeutic, mobile nuclear 
medicine, eye applicators, high dose rate afterloaders, and 
medical therapy emerging technologies
		$1,748
$2,350
		
26.526.4
	Teletherapy
		$6,348
$8,450
		
26.726.6
	Gamma knife
		$6,348
$8,450
		
26.926.8
	Veterinary medicine
		$1,104
$1,500
		
26.1126.10
	In vitro testing lab
		$1,104
$1,500
		
26.1326.12
	Nuclear pharmacy
		$5,612
$7,500
		
26.1526.14
	Radiopharmaceutical distribution (10 CFR 32.72)
		$2,484
$3,350
		
26.16
26.17	Radiopharmaceutical processing and distribution (10 CFR 
32.72)
		$5,612
$7,500
		
26.1926.18
	Medical sealed sources - distribution (10 CFR 32.74)
		$2,484
$3,350
		
26.20
26.21	Medical sealed sources - processing and distribution (10 CFR 
32.74)
		$5,612
$7,500
		
26.2326.22
	Well logging - sealed sources
		$1,840
$2,450
		
26.24
26.25	Measuring systems - (fixed gauge, portable gauge, gas 
chromatograph, other)
		$1,104
$1,500
		
26.2726.26
	X-ray fluorescent analyzer
		$671
$900
		
26.2926.28
	Manufacturing and distribution - type A, B, and C broad scope
		$6,854
$9,150
		
26.3126.30
	Manufacturing and distribution - other
		$2,668
$3,550
		
26.3326.32
	Nuclear laundry
		$11,592
$15,450
		
26.3526.34
	Decontamination services
		$3,036
$4,050
		
26.3726.36
	Leak test services only
		$1,104
$1,500
		
26.3926.38
	Instrument calibration service only
		$1,104
$1,500
		
26.4126.40
	Service, maintenance, installation, source changes, etc.
		$3,036
$4,050
		
26.4326.42
	Waste disposal service, prepackaged only
		$2,576
$3,450
		
26.4526.44
	Waste disposal
		$1,748
$2,350
		
27.227.1
	Distribution - general licensed devices (sealed sources)
		$1,012
$1,350
		
27.427.3
	Distribution - general licensed material (unsealed sources)
		$598
$800
		
27.627.5
	Industrial radiography - fixed or temporary location
		$3,036
$4,050
		
27.827.7
	Irradiators, self-shielding
		$1,656
$2,250
		
27.1027.9	Irradiators, other, less than 10,000 curies
		$3,404
$4,550
		
27.1227.11
	Research and development - type A, B, or C broad scope
		$5,704
$7,600
		
27.1427.13
	Research and development - other
		$2,760
$3,700
		
27.1627.15
	Storage - no operations
		$1,104
$1,500
		
27.1827.17
	Source material - shielding
		$156
$250
		
27.2027.19
	Special nuclear material plutonium - neutron source in device
		$1,380
$1,850
		
27.21
27.22	Pacemaker by-product and/or special nuclear material - medical 
(institution)
		$1,380
$1,850
		
27.23
27.24	Pacemaker by-product and/or special nuclear material - 
manufacturing and distribution
		$2,668
$3,550
		
27.2627.25
	Accelerator-produced radioactive material
		$4,715
$6,300
		
27.2827.27
	Nonprofit educational institutions
		$345
$500

27.29 	Sec. 29. Minnesota Statutes 2024, section 144.1205, subdivision 8, is amended to read:
27.30 		Subd. 8.Reciprocity fee. A licensee submitting an application for reciprocal recognition 
27.31 	of a materials license issued by another agreement state or the United States Nuclear 
27.32 	Regulatory Commission for a period of 180 days or less during a calendar year must pay 
27.33 	$2,400 $3,200. For a period of 181 days or more, the licensee must obtain a license under 
27.34 	subdivision 4.

27.35 	Sec. 30. Minnesota Statutes 2024, section 144.1205, subdivision 9, is amended to read:
27.36 		Subd. 9.Fees for license amendments. A licensee must pay a fee of $600 $800 to 
27.37 	amend a license as follows:
27.38 	(1) to amend a license requiring review including, but not limited to, addition of isotopes, 
27.39 	procedure changes, new authorized users, or a new radiation safety officer; or
28.1 	(2) to amend a license requiring review and a site visit including, but not limited to, 
28.2 	facility move or addition of processes.

28.3 	Sec. 31. Minnesota Statutes 2024, section 144.1205, subdivision 10, is amended to read:
28.4 		Subd. 10.Fees for general license registrations. A person required to register generally 
28.5 	licensed devices according to Minnesota Rules, part 4731.3215, must pay an annual 
28.6 	registration fee of $450 $600.

28.7 	Sec. 32. Minnesota Statutes 2024, section 144.121, subdivision 1a, is amended to read:
28.8 		Subd. 1a.Fees for ionizing radiation-producing equipment. (a) A facility with ionizing 
28.9 	radiation-producing equipment and other sources of ionizing radiation must pay an initial 
28.10 	or annual renewal registration fee consisting of a base facility fee of $100 $155 and an 
28.11 	additional fee for each x-ray tube, as follows:

28.1228.13	(1)
	medical or veterinary equipment
	$
	100
130
		
28.1428.15	(2)
	dental x-ray equipment
	$
	40
60
		
28.1628.17	(3)
	x-ray equipment not used on 
humans or animals
	$
	100
130
		
28.1828.19
28.20	(4)
	devices with sources of ionizing 
radiation not used on humans or 
animals
	$
	100
130
		
28.2128.22	(5)
	security screening system
	$
	100
160
		
28.2328.24	(6)
	radiation therapy and accelerator 
x-ray equipment
	$
	1,000
		
28.2528.26	(7)
	industrial accelerator x-ray 
equipment
	$
	300
		
28.27 	(b) A facility with radiation therapy and accelerator equipment must pay an initial or 
28.28 	annual registration fee of $500. A facility with an industrial accelerator must pay an initial 
28.29 	or annual registration fee of $150.
28.30 	(c) (b) Electron microscopy equipment is exempt from the registration fee requirements 
28.31 	of this section.
28.32 	(d) (c) For purposes of this section, a security screening system means ionizing 
28.33 	radiation-producing equipment designed and used for security screening of humans who 
28.34 	are in the custody of a correctional or detention facility, and used by the facility to image 
28.35 	and identify contraband items concealed within or on all sides of a human body. For purposes 
28.36 	of this section, a correctional or detention facility is a facility licensed under section 241.021 
29.1 	and operated by a state agency or political subdivision charged with detection, enforcement, 
29.2 	or incarceration in respect to state criminal and traffic laws. The commissioner shall adopt 
29.3 	rules to establish requirements for the use of security screening systems. Notwithstanding 
29.4 	section 14.125, the authority to adopt these rules does not expire.

29.5 	Sec. 33. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
29.6 	to read:
29.7 		Subd. 1e.Fee for service provider of ionizing radiation-producing equipment. A 
29.8 	service provider of ionizing radiation-producing equipment and other sources of ionizing 
29.9 	radiation must pay an initial or annual renewal fee of $115.

29.10 	Sec. 34. Minnesota Statutes 2024, section 144.121, subdivision 2, is amended to read:
29.11 		Subd. 2.Inspections. Periodic radiation safety inspections of the x-ray equipment and 
29.12 	other sources of ionizing radiation shall be made by the commissioner of health. The 
29.13 	frequency of safety inspections shall be prescribed by the commissioner on the basis of
29.14 	based on the frequency of radiation exposure risk to occupational and public health from
29.15 	use of the x-ray equipment and other source of ionizing radiation, provided that each source 
29.16 	shall be inspected at least once every four years.

29.17 	Sec. 35. Minnesota Statutes 2024, section 144.121, subdivision 5, is amended to read:
29.18 		Subd. 5.Examination for individual operating x-ray systems. (a) An individual in a 
29.19 	facility with x-ray systems for use on living humans that is registered under subdivision 1 
29.20 	may not operate, nor may the facility allow the individual to operate, x-ray systems unless 
29.21 	the individual has passed a national or state examination.
29.22 	(b) Individuals who may operate x-ray systems include:
29.23 	(1) an individual who has passed the American Registry of Radiologic Technologists 
29.24 	(ARRT) registry for radiography examination;
29.25 	(2) an individual who has passed the American Chiropractic Registry of Radiologic 
29.26 	Technologists (ACRRT) registry examination and is limited to radiography of spines and 
29.27 	extremities;
29.28 	(3) a registered limited scope x-ray operator and a registered bone densitometry equipment 
29.29 	operator who passed the examination requirements in paragraphs (d) and (e) and practices 
29.30 	according to subdivision 5a;
30.1 	(4) an x-ray operator who has the original certificate or the original letter of passing the 
30.2 	examination that was required before January 1, 2008, under Minnesota Statutes 2008, 
30.3 	section 144.121, subdivision 5a, paragraph (b), clause (1);
30.4 	(5) an individual who has passed the American Registry of Radiologic Technologists 
30.5 	(ARRT) registry for radiation therapy examination according to subdivision 5e;
30.6 	(6) a cardiovascular technologist according to subdivision 5c;
30.7 	(7) a nuclear medicine technologist according to subdivision 5d;
30.8 	(8) an individual who has passed the examination for a dental hygienist under section 
30.9 	150A.06 and only operates dental x-ray systems;
30.10 	(9) an individual who has passed the examination for a dental therapist under section 
30.11 	150A.06 and only operates dental x-ray systems;
30.12 	(10) an individual who has passed the examination for a dental assistant under section 
30.13 	150A.06 and only operates dental x-ray systems;
30.14 	(11) an individual who has passed the examination under Minnesota Rules, part 
30.15 	3100.8500, subpart 3 3100.1320, and only operates dental x-ray systems; and
30.16 	(12) a qualified practitioner who is licensed by a health-related licensing board with 
30.17 	active practice authority and is working within the practitioner's scope of practice.
30.18 	(c) Except for individuals under clauses (3) and (4), an individual who is participating 
30.19 	in a training or educational program in any of the occupations listed in paragraph (b) is 
30.20 	exempt from the examination requirement within the scope and for the duration of the 
30.21 	training or educational program.
30.22 	(d) The Minnesota examination for limited scope x-ray operators must include:
30.23 	(1) radiation protection, radiation physics and radiobiology, equipment operation and 
30.24 	quality assurance, image acquisition and technical evaluation, and patient interactions and 
30.25 	management; and
30.26 	(2) at least one of the following regions of the human anatomy: chest, extremities, skull 
30.27 	and sinus, spine, or podiatry. The examinations must include the anatomy of, and radiographic 
30.28 	positions and projections for, the specific regions.
30.29 	(e) The examination for bone densitometry equipment operators must include:
30.30 	(1) osteoporosis, bone physiology, bone health and patient education, patient preparation, 
30.31 	fundamental principals, biological effects of radiation, units of measurements, radiation 
31.1 	protection in bone densitometry, fundamentals of x-ray production, quality control, measuring 
31.2 	bone mineral testing, determining quality in bone mineral testing, file and database 
31.3 	management; and
31.4 	(2) dual x-ray absorptiometry scanning of the lumbar spine, proximal femur, and forearm. 
31.5 	The examination must include the anatomy, scan acquisition, and scan analysis for these 
31.6 	three procedures.
31.7 	(f) A limited scope x-ray operator, and a bone densitometry equipment operator, who 
31.8 	are required to take an examination under this subdivision must submit to the commissioner 
31.9 	a registration application for the examination and a $25 processing fee. The processing fee 
31.10 	shall be deposited in the state treasury and credited to the state government special revenue 
31.11 	fund.

31.12 	Sec. 36. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
31.13 	to read:
31.14 		Subd. 10.Service provider practice; service technician. (a) A service technician is a 
31.15 	service provider who performs one or more of the following, including but not limited to: 
31.16 	assembly, installation, calibration, equipment performance evaluation, preventive 
31.17 	maintenance, repair, replacement, or disabling of ionizing radiation-producing equipment 
31.18 	and other sources of ionizing radiation. A service technician may not perform an equipment 
31.19 	performance evaluation on computed tomography, medical cone beam computed tomography, 
31.20 	and fluoroscopy equipment.
31.21 	(b) In order to provide service technician services, a service provider must register with 
31.22 	the commissioner as a service technician, meet the applicable requirements in Minnesota 
31.23 	Rules, chapter 4732, and pay the fee in subdivision 1e.

31.24 	Sec. 37. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
31.25 	to read:
31.26 		Subd. 11.Service provider practice; vendor. (a) A vendor is a service provider who 
31.27 	performs one or more of the following services, including but not limited to: sales, leasing, 
31.28 	lending, transferring, disposal, or demonstration of ionizing radiation-producing equipment 
31.29 	and other sources of ionizing radiation.
31.30 	(b) In order to provide vendor services, a service provider must register with the 
31.31 	commissioner as a vendor, meet the applicable requirements in Minnesota Rules, chapter 
31.32 	4732, and pay the fee in subdivision 1e.

32.1 	Sec. 38. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.2 	to read:
32.3 		Subd. 12.Service provider practice; qualified medical physicist. (a) A qualified 
32.4 	medical physicist is a service provider who provides medical physics services and must be 
32.5 	certified in diagnostic medical physics, diagnostic radiological physics, radiological physics, 
32.6 	diagnostic imaging physics, or diagnostic radiology physics by the American Board of 
32.7 	Radiology, the American Board of Medical Physics, or the Canadian College of Physicists 
32.8 	in Medicine.
32.9 	(b) In order to provide medical physics services a service provider must register with 
32.10 	the commissioner as a qualified medical physicist, meet the applicable requirements in 
32.11 	Minnesota Rules, chapter 4732, and pay the fee in subdivision 1e.

32.12 	Sec. 39. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.13 	to read:
32.14 		Subd. 13.Service provider practice; qualified expert. (a) A qualified expert is a service 
32.15 	provider who provides expert physics services, and must be certified in the appropriate 
32.16 	fields or specialties in which physics services are provided by the American Board of Health 
32.17 	Physics, the American Board of Medical Physics, the American Board of Radiology, the 
32.18 	American Board of Science in Nuclear Medicine, or the Canadian College of Physicists in 
32.19 	Medicine.
32.20 	(b) In order to provide health physics services, a service provider must register with the 
32.21 	commissioner as a qualified expert, meet the applicable requirements in Minnesota Rules, 
32.22 	chapter 4732, and pay the fee in subdivision 1e.

32.23 	Sec. 40. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
32.24 	to read:
32.25 		Subd. 14.Service provider practice; physicist assistant. (a) A physicist assistant is a 
32.26 	service provider who provides expert physics or medical physics services under the 
32.27 	supervision of a qualified expert or a qualified medical physicist and must be deemed 
32.28 	competent by a qualified expert or a qualified medical physicist in the appropriate fields or 
32.29 	specialties in which services are provided.
32.30 	(b) In order to provide health physics or medical physics services under the supervision 
32.31 	of a qualified expert or a qualified medical physicist, a physicist assistant must register with 
33.1 	the commissioner as a physicist assistant, meet the applicable requirements in Minnesota 
33.2 	Rules, chapter 4732, and pay the fee under subdivision 1e.
33.3 	(c) Supervision as used in this subdivision refers to either personal or general supervision 
33.4 	of a physicist assistant by a qualified expert or a qualified medical physicist according to 
33.5 	Minnesota Rules, chapter 4732.

33.6 	Sec. 41. Minnesota Statutes 2024, section 144.121, is amended by adding a subdivision 
33.7 	to read:
33.8 		Subd. 15.Service provider compliance. A service provider registered with the 
33.9 	commissioner under Minnesota Rules, chapter 4732, must, upon renewal of registration, 
33.10 	comply with the applicable requirements under this section and submit the fee under 
33.11 	subdivision 1e.

33.12 	Sec. 42. Minnesota Statutes 2024, section 144.1215, is amended by adding a subdivision 
33.13 	to read:
33.14 		Subd. 5.Rulemaking authority. The commissioner shall adopt rules to implement this 
33.15 	section. Notwithstanding section 14.125, the authority to adopt these rules does not expire.

33.16 	Sec. 43. Minnesota Statutes 2024, section 144.1222, subdivision 1a, is amended to read:
33.17 		Subd. 1a.Fees. All plans and specifications for public pool and spa construction, 
33.18 	installation, or alteration or requests for a variance that are submitted to the commissioner 
33.19 	according to Minnesota Rules, part 4717.3975, shall be accompanied by the appropriate 
33.20 	fees. All public pool construction plans submitted for review after January 1, 2009, must 
33.21 	be certified by a professional engineer registered in the state of Minnesota. If the 
33.22 	commissioner determines, upon review of the plans, that inadequate fees were paid, the 
33.23 	necessary additional fees shall be paid before plan approval. For purposes of determining 
33.24 	fees, a project is defined as a proposal to construct or install a public pool, spa, special 
33.25 	purpose pool, or wading pool and all associated water treatment equipment and drains, 
33.26 	gutters, decks, water recreation features, spray pads, and those design and safety features 
33.27 	that are within five feet of any pool or spa. Plans submitted less than 30 days prior to 
33.28 	construction are subject to 50 percent of the original plan review fee. The commissioner 
33.29 	shall charge the following fees for plan review and inspection of public pools and spas and 
33.30 	for requests for variance from the public pool and spa rules:
33.31 	(1) each pool, $1,500 $1,600;
33.32 	(2) each spa pool, $800 $900;
34.1 	(3) each slide, $600 $650;
34.2 	(4) projects valued at $250,000 or more, the greater of the sum of the fees in clauses (1), 
34.3 	(2), and (3) or 0.5 percent of the documented estimated project cost to a maximum fee of 
34.4 	$15,000;
34.5 	(5) alterations to an existing pool without changing the size or configuration of the pool, 
34.6 	$600 $700;
34.7 	(6) removal or replacement of pool disinfection equipment only, $100 $200; and
34.8 	(7) request for variance from the public pool and spa rules, $500 $550.

34.9 	Sec. 44. [144.1223] REGISTERED SANITARIANS AND REGISTERED 
34.10 	ENVIRONMENTAL HEALTH SPECIALIST APPLICATION FEES.
34.11 	(a) Fees to be submitted with initial or renewal applications are as follows:
34.12 	(1) initial application fee, $55;
34.13 	(2) biennial renewal application fee, $55; and
34.14 	(3) penalty for late submission of renewal application, $20, if not renewed by designated 
34.15 	renewal date.
34.16 	(b) Additionally, a $5 technology fee must be paid with the initial registration or 
34.17 	registration renewal.

34.18 	Sec. 45. Minnesota Statutes 2024, section 144.125, subdivision 1, is amended to read:
34.19 		Subdivision 1.Duty to perform testing. (a) It is the duty of (1) the administrative officer 
34.20 	or other person in charge of each institution caring for infants 28 days or less of age, (2) the 
34.21 	person required in pursuance of the provisions of section 144.215, to register the birth of a 
34.22 	child, or (3) the nurse midwife or midwife in attendance at the birth, to arrange to have 
34.23 	administered to every infant or child in its care tests for heritable and congenital disorders 
34.24 	according to subdivision 2 and rules prescribed by the state commissioner of health.
34.25 	(b) Testing, recording of test results, reporting of test results, and follow-up of infants 
34.26 	with heritable congenital disorders, including hearing loss detected through the early hearing 
34.27 	detection and intervention program in section 144.966, shall be performed at the times and 
34.28 	in the manner prescribed by the commissioner of health.
34.29 	(c) The fee to support the newborn screening program, including tests administered 
34.30 	under this section and section 144.966, shall be $177 $184 per specimen. This fee amount 
35.1 	shall be deposited in the state treasury and credited to the state government special revenue 
35.2 	fund.
35.3 	(d) The fee to offset the cost of the support services provided under section 144.966, 
35.4 	subdivision 3a, shall be $15 per specimen. This fee shall be deposited in the state treasury 
35.5 	and credited to the general fund.

35.6 	Sec. 46. Minnesota Statutes 2024, section 144.125, subdivision 2, is amended to read:
35.7 		Subd. 2.Determination of tests to be administered. (a) The commissioner shall 
35.8 	periodically revise the list of tests to be administered for determining the presence of a 
35.9 	heritable or congenital disorder. Revisions to the list shall reflect advances in medical 
35.10 	science, new and improved testing methods, or other factors that will improve the public 
35.11 	health. In determining whether a test must be administered, the commissioner shall take 
35.12 	into consideration the adequacy of analytical methods to detect the heritable or congenital 
35.13 	disorder, the ability to treat or prevent medical conditions caused by the heritable or 
35.14 	congenital disorder, and the severity of the medical conditions caused by the heritable or 
35.15 	congenital disorder. The list of tests to be performed may be revised if the changes are 
35.16 	recommended by the advisory committee established under section 144.1255, approved by 
35.17 	the commissioner, and published in the State Register. The revision is exempt from the 
35.18 	rulemaking requirements in chapter 14, and sections 14.385 and 14.386 do not apply.
35.19 	(b) The commissioner shall revise the list of tests to be administered for determining 
35.20 	the presence of a heritable or congenital disorder to include metachromatic leukodystrophy 
35.21 	(MLD).

35.22 	Sec. 47. Minnesota Statutes 2024, section 144.3831, subdivision 1, is amended to read:
35.23 		Subdivision 1.Fee setting. The commissioner of health may assess an annual fee of 
35.24 	$9.72 $15.22 for every service connection to a public water supply that is owned or operated 
35.25 	by a home rule charter city, a statutory city, a city of the first class, or a town. The 
35.26 	commissioner of health may also assess an annual fee for every service connection served 
35.27 	by a water user district defined in section 110A.02.

35.28 	Sec. 48. Minnesota Statutes 2024, section 144.55, subdivision 1a, is amended to read:
35.29 		Subd. 1a.License fee. The annual license fee for outpatient surgical centers is $1,512
35.30 	$1,966.

36.1 	Sec. 49. Minnesota Statutes 2024, section 144.554, is amended to read:
36.2 	144.554 HEALTH FACILITIES CONSTRUCTION PLAN SUBMITTAL AND 
36.3 	FEES.
36.4 	For hospitals, nursing homes, assisted living facilities, boarding care homes, residential 
36.5 	hospices, supervised living facilities, freestanding outpatient surgical centers, and end-stage 
36.6 	renal disease facilities, the commissioner shall collect a fee for the review and approval of 
36.7 	architectural, mechanical, and electrical plans and specifications submitted before 
36.8 	construction begins for each project relative to construction of new buildings, additions to 
36.9 	existing buildings, or remodeling or alterations of existing buildings. All fees collected in 
36.10 	this section shall be deposited in the state treasury and credited to the state government 
36.11 	special revenue fund. Fees must be paid at the time of submission of final plans for review 
36.12 	and are not refundable. The fee is calculated as follows:

36.13	Construction project total estimated cost
	Fee
	
36.14	$0 - $10,000
	$30 $45
	
36.15	$10,001 - $50,000
	$150 $225
	
36.16	$50,001 - $100,000
	$300 $450
	
36.17	$100,001 - $150,000
	$450 $675
	
36.18	$150,001 - $200,000
	$600 $900
	
36.19	$200,001 - $250,000
	$750 $1,125
	
36.20	$250,001 - $300,000
	$900 $1,350
	
36.21	$300,001 - $350,000
	$1,050 $1,575
	
36.22	$350,001 - $400,000
	$1,200 $1,800
	
36.23	$400,001 - $450,000
	$1,350 $2,025
	
36.24	$450,001 - $500,000
	$1,500 $2,250
	
36.25	$500,001 - $550,000
	$1,650 $2,475
	
36.26	$550,001 - $600,000
	$1,800 $2,700
	
36.27	$600,001 - $650,000
	$1,950 $2,925
	
36.28	$650,001 - $700,000
	$2,100 $3,150
	
36.29	$700,001 - $750,000
	$2,250 $3,375
	
36.30	$750,001 - $800,000
	$2,400 $3,600
	
36.31	$800,001 - $850,000
	$2,550 $3,825
	
36.32	$850,001 - $900,000
	$2,700 $4,050
	
36.33	$900,001 - $950,000
	$2,850 $4,275
	
36.34	$950,001 - $1,000,000
	$3,000 $4,500
	
36.35	$1,000,001 - $1,050,000
	$3,150 $4,725
	
36.36	$1,050,001 - $1,100,000
	$3,300 $4,950
	
37.1	$1,100,001 - $1,150,000
	$3,450 $5,175
	
37.2	$1,150,001 - $1,200,000
	$3,600 $5,400
	
37.3	$1,200,001 - $1,250,000
	$3,750 $5,625
	
37.4	$1,250,001 - $1,300,000
	$3,900 $5,850
	
37.5	$1,300,001 - $1,350,000
	$4,050 $6,075
	
37.6	$1,350,001 - $1,400,000
	$4,200 $6,300
	
37.7	$1,400,001 - $1,450,000
	$4,350 $6,525
	
37.8	$1,450,001 - $1,500,000
	$4,500 $6,750
	
37.9	$1,500,001 and over - $2,000,000
	$4,800 $7,200
	
37.10	$2,000,001 - $3,000,000
	$7,650
	
37.11	$3,000,001 - $4,000,000
	$8,100
	
37.12	$4,000,001 - $7,000,000
	$8,550
	
37.13	$7,000,001 - $15,000,000
	$9,000
	
37.14	$15,000,001 - $50,000,000
	$9,450
	
37.15	$50,000,001 and over
	$9,900

37.16 	Sec. 50. Minnesota Statutes 2024, section 144.562, subdivision 2, is amended to read:
37.17 		Subd. 2.Eligibility for license condition. (a) A hospital is not eligible to receive a 
37.18 	license condition for swing beds unless (1) it either has a licensed bed capacity of less than 
37.19 	50 beds defined in the federal Medicare regulations, Code of Federal Regulations, title 42, 
37.20 	section 482.66, or it has a licensed bed capacity of 50 beds or more and has swing beds that 
37.21 	were approved for Medicare reimbursement before May 1, 1985, or it has a licensed bed 
37.22 	capacity of less than 65 beds and the available nursing homes within 50 miles have had, in 
37.23 	the aggregate, an average occupancy rate of 96 percent or higher in the most recent two 
37.24 	years as documented on the statistical reports to the Department of Health; and (2) it is 
37.25 	located in a rural area as defined in the federal Medicare regulations, Code of Federal 
37.26 	Regulations, title 42, section 482.66.
37.27 	(b) Except for those critical access hospitals established under section 144.1483, clause 
37.28 	(9), and section 1820 of the federal Social Security Act, United States Code, title 42, section 
37.29 	1395i-4, that have an attached nursing home or that owned a nursing home located in the 
37.30 	same municipality as of May 1, 2005, eligible hospitals are allowed a total number of days 
37.31 	of swing bed use per year as provided in paragraph (c). Critical access hospitals that have 
37.32 	an attached nursing home or that owned a nursing home located in the same municipality 
37.33 	as of May 1, 2005, are allowed swing bed use as provided in federal law. A critical access 
37.34 	hospital described in section 144.5621 is allowed an unlimited number of days of swing 
37.35 	bed use per year.
38.1 	(c) An eligible hospital is allowed a total of 3,000 days of swing bed use in calendar 
38.2 	year 2020. Beginning in calendar year 2021, and for each subsequent calendar year until 
38.3 	calendar year 2027, the total number of days of swing bed use per year is increased by 200 
38.4 	swing bed use days. Beginning in calendar year 2028, an eligible hospital is allowed a total 
38.5 	of 4,500 days of swing bed use per year.
38.6 	(d) Days of swing bed use for medical care that an eligible hospital has determined are 
38.7 	charity care shall not count toward the applicable limit in paragraph (b) or (c). For purposes 
38.8 	of this paragraph, "charity care" means care that an eligible hospital provided for free or at 
38.9 	a discount to persons who cannot afford to pay and for which the eligible hospital did not 
38.10 	expect payment.
38.11 	(e) Days of swing bed use for care of a person who has been denied admission to every 
38.12 	Medicare-certified skilled nursing facility within 25 miles of the eligible hospital shall not 
38.13 	count toward the applicable limit in paragraphs (b) and (c). Eligible hospitals must maintain 
38.14 	documentation that they have contacted each skilled nursing facility within 25 miles to 
38.15 	determine if any skilled nursing facility beds are available and if the skilled nursing facilities 
38.16 	are willing to admit the patient. Skilled nursing facilities that are contacted must admit the 
38.17 	patient or deny admission within 24 hours of being contacted by the eligible hospital. Failure 
38.18 	to respond within 24 hours is deemed a denial of admission.
38.19 	(f) Except for critical access hospitals that have an attached nursing home or that owned 
38.20 	a nursing home located in the same municipality as of May 1, 2005, the commissioner of 
38.21 	health may approve swing bed use beyond 2,000 days as long as there are no Medicare 
38.22 	certified skilled nursing facility beds available within 25 miles of that hospital that are 
38.23 	willing to admit the patient and the patient agrees to the referral being sent to the skilled 
38.24 	nursing facility. Critical access hospitals exceeding 2,000 swing bed days must maintain 
38.25 	documentation that they have contacted skilled nursing facilities within 25 miles to determine 
38.26 	if any skilled nursing facility beds are available that are willing to admit the patient and the 
38.27 	patient agrees to the referral being sent to the skilled nursing facility. This paragraph expires 
38.28 	January 1, 2020.
38.29 	(g) After reaching 2,000 days of swing bed use in a year, an eligible hospital to which 
38.30 	this limit applies may admit six additional patients to swing beds each year without seeking 
38.31 	approval from the commissioner or being in violation of this subdivision. These six swing 
38.32 	bed admissions are exempt from the limit of 2,000 annual swing bed days for hospitals 
38.33 	subject to this limit. This paragraph expires January 1, 2020.
39.1 	(h) A health care system that is in full compliance with this subdivision may allocate its 
39.2 	total limit of swing bed days among the hospitals within the system, provided that no hospital 
39.3 	in the system without an attached nursing home may exceed 2,000 swing bed days per year. 
39.4 	This paragraph expires January 1, 2020.

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

39.8 	Sec. 51. Minnesota Statutes 2024, section 144.562, subdivision 3, is amended to read:
39.9 		Subd. 3.Approval of license condition. (a) The commissioner of health shall approve 
39.10 	a license condition for swing beds if the hospital meets all of the criteria of this subdivision.
39.11 	(b) The hospital must meet the eligibility criteria in subdivision 2.
39.12 	(c) The hospital must be in compliance with the Medicare conditions of participation 
39.13 	for swing beds under Code of Federal Regulations, title 42, section 482.66.
39.14 	(d) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
39.15 	the length of stay of a patient receiving services in a swing bed to not more than 40 days, 
39.16 	or the duration of Medicare eligibility, unless the commissioner of health approves a greater 
39.17 	length of stay in an emergency situation. To determine whether an emergency situation 
39.18 	exists, the commissioner shall require the hospital to provide documentation that continued 
39.19 	services in the swing bed are required by the patient; that no skilled nursing facility beds 
39.20 	are available within 25 miles from the patient's home, or in some more remote facility of 
39.21 	the resident's choice, that can provide the appropriate level of services required by the 
39.22 	patient; and that other alternative services are not available to meet the needs of the patient. 
39.23 	If the commissioner approves a greater length of stay, the hospital shall develop a plan 
39.24 	providing for the discharge of the patient upon the availability of a nursing home bed or 
39.25 	other services that meet the needs of the patient. Permission to extend a patient's length of 
39.26 	stay must be requested by the hospital at least ten days prior to the end of the maximum 
39.27 	length of stay.
39.28 	(e) Except as provided in section 144.5621, the hospital must agree, in writing, to limit 
39.29 	admission to a swing bed only to (1) patients who have been hospitalized and not yet 
39.30 	discharged from the facility, or (2) patients who are transferred directly from an acute care 
39.31 	hospital.
39.32 	(f) The hospital must agree, in writing, to report to the commissioner of health by 
39.33 	December 1, 1985, and annually thereafter, in a manner required by the commissioner (1) 
40.1 	the number of patients readmitted to a swing bed within 60 days of a patient's discharge 
40.2 	from the facility, (2) the hospital's charges for care in a swing bed during the reporting 
40.3 	period with a description of the care provided for the rate charged, and (3) the number of 
40.4 	beds used by the hospital for transitional care and similar subacute inpatient care.
40.5 	(g) The hospital must agree, in writing, to report statistical data on the utilization of the 
40.6 	swing beds on forms supplied by the commissioner. The data must include the number of 
40.7 	swing beds, the number of admissions to and discharges from swing beds, Medicare 
40.8 	reimbursed patient days, total patient days, and other information required by the 
40.9 	commissioner to assess the utilization of swing beds.

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

40.13 	Sec. 52. [144.5621] SWING BED APPROVAL; EXCEPTIONS.
40.14 	The conditions and limitations in section 144.562, paragraphs (d) and (e), do not apply 
40.15 	to any hospital located in Cook County that:
40.16 	(1) is designated as a critical access hospital under section 144.1483, clause (9), and 
40.17 	United States Code, title 42, section 1395i-4; and
40.18 	(2) has an attached nursing home.
40.19 	Any swing bed located in a hospital described in this section may be used to provide nursing 
40.20 	care without requiring a prior hospital stay. The nursing care provided to a patient in a swing 
40.21 	bed is a covered medical assistance service under section 256B.0625, subdivision 2b.

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

40.25 	Sec. 53. Minnesota Statutes 2024, section 144.563, is amended to read:
40.26 	144.563 NURSING SERVICES PROVIDED IN A HOSPITAL; PROHIBITED 
40.27 	PRACTICES.
40.28 	A hospital that has been granted a license condition under section 144.562or 144.5621 
40.29 	must not provide to patients not reimbursed by Medicare or medical assistance the types of 
40.30 	services that would be usually and customarily provided and reimbursed under medical 
40.31 	assistance or Medicare as services of a skilled nursing facility or intermediate care facility 
41.1 	for more than 42 days and only for patients who have been hospitalized and no longer require 
41.2 	an acute level of care. Permission to extend a patient's length of stay may be granted by the 
41.3 	commissioner if requested by the physician at least ten days prior to the end of the maximum 
41.4 	length of stay.

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

41.8 	Sec. 54. Minnesota Statutes 2024, section 144E.35, is amended to read:
41.9 	144E.35 REIMBURSEMENT TO AMBULANCE SERVICES FOR VOLUNTEER
41.10 	EDUCATION COSTS.
41.11 		Subdivision 1.Repayment for volunteer Reimbursement for education costs; 
41.12 	ambulance service eligibility. A licensed ambulance service shall be reimbursed by the 
41.13 	director for the necessary expense of the initial education of a volunteer ambulance attendant 
41.14 	upon successful completion by the attendant of an EMT education course, or a continuing 
41.15 	education course for EMT care, or both, which has been approved by the director, pursuant 
41.16 	to section 144E.285 (a) Except as provided in subdivision 3, the director must reimburse 
41.17 	all eligible Minnesota licensed ambulance services that apply for reimbursement under this 
41.18 	section for the necessary expenses of initial EMR and EMT education and EMR and EMT 
41.19 	continuing education for ambulance attendants who satisfy the criteria in subdivision 2. 
41.20 	Reimbursement may include tuition, transportation, food, lodging, hourly payment for the 
41.21 	time spent in the education course, and other necessary expenditures, except that in no 
41.22 	instance shall a volunteer licensed ambulance attendant service be reimbursed more than 
41.23 	$900:
41.24 	(1) $1,200 for an ambulance attendant's successful completion of an initial EMT education 
41.25 	course, and $375;
41.26 	(2) $400 for an ambulance attendant's successful completion of a an EMT continuing 
41.27 	education course;
41.28 	(3) $600 for an ambulance attendant's successful completion of an initial EMR education 
41.29 	course; and
41.30 	(4) $200 for an ambulance attendant's successful completion of an EMR continuing 
41.31 	education course.
41.32 	(b) To be eligible for reimbursement, a licensed ambulance service must have responded 
41.33 	to 5,000 or fewer calls in the most recent calendar year.
42.1 		Subd. 2.Reimbursement provisions Ambulance attendant criteria. Reimbursement 
42.2 	must be paid under provisions of this section when documentation is provided to the director 
42.3 	that the individualambulance attendant:
42.4 	(1) successfully completed an initial EMR or EMT education course approved by the 
42.5 	director under section 144E.285, a continuing education course for EMR or EMT care 
42.6 	approved by the director under section 144E.285, or both; and
42.7 	(2) has served for one year from the date of the final certification exam as an active 
42.8 	member of a Minnesota licensed ambulance service.
42.9 		Subd. 3.Discontinuance of reimbursement. If the state is unable to meet its financial 
42.10 	obligations under subdivision 1 as the obligations become due, the director must discontinue 
42.11 	reimbursing ambulance services for education costs until the state is again able to meet the 
42.12 	financial obligations under subdivision 1 as the obligations become due. An ambulance 
42.13 	service whose application is not approved due to lack of funding may resubmit the application 
42.14 	in the next fiscal year.

42.15 	Sec. 55. [144E.38] AMBULANCE SERVICE TRAINING AND STAFFING GRANT 
42.16 	PROGRAM.
42.17 		Subdivision 1.Definition. For purposes of this section, "employee" has the meaning 
42.18 	given in section 181.960, subdivision 2.
42.19 		Subd. 2.Grant program. The director must establish and administer a program to award 
42.20 	grants to eligible ambulance services for certain costs to train ambulance service employees 
42.21 	as emergency medical technicians and staff the ambulance service.
42.22 		Subd. 3.Eligible ambulance services. To be eligible for a grant under this section, an 
42.23 	ambulance service must:
42.24 	(1) be licensed under this chapter; and
42.25 	(2) in the calendar year prior to the year in which the ambulance service first applies for 
42.26 	a grant under this section, have had at least 50 percent of its staffing provided by emergency 
42.27 	medical technicians.
42.28 		Subd. 4.Application. An eligible ambulance service seeking a grant under this section 
42.29 	must apply to the director in a form and manner and according to a timeline specified by 
42.30 	the director. In its application, the eligible ambulance service must specify the number of 
42.31 	individuals it plans to hire using the grant money, the number of employee training hours 
42.32 	it plans to fund using the grant money, and other information required by the director.
43.1 		Subd. 5.Allowable uses of grant money; maximum grant amount. (a) An ambulance 
43.2 	service must use grant money awarded under this section only for one or more of the 
43.3 	following:
43.4 	(1) tuition for employees attending an emergency medical technician (EMT) education 
43.5 	program approved by the director;
43.6 	(2) employee examination fees for EMT certification;
43.7 	(3) fees for background studies for new EMT employees; and
43.8 	(4) incurred wage and benefit costs of employees while attending an EMT education 
43.9 	program or program-related activities. Wage and benefit costs under this clause must be 
43.10 	commensurate with the wages and benefits the ambulance service provides to an entry-level 
43.11 	EMT and must not exceed $26 per hour.
43.12 	(b) The grant amount awarded to an ambulance service must not exceed the amount 
43.13 	needed for the costs in paragraph (a).
43.14 		Subd. 6.Grant program oversight. An ambulance service receiving a grant under this 
43.15 	section must provide the director with information necessary for the director to administer 
43.16 	and evaluate the grant program.
43.17 		Subd. 7.Reporting to municipalities. (a) In order to be eligible to receive a grant under 
43.18 	this section, an ambulance service must collect and report to each respective municipality 
43.19 	in the licensee's primary service area prehospital care data for all emergency responses 
43.20 	provided by the licensee within the boundaries of each respective municipality. For purposes 
43.21 	of this subdivision, "municipality" means a city or town.
43.22 	(b) A licensee must collect and report the following prehospital care data items as 
43.23 	provided in paragraph (a):
43.24 	(1) total number of emergency ambulance calls;
43.25 	(2) dispatch reason;
43.26 	(3) type of emergency service requested for each emergency ambulance call;
43.27 	(4) response mode to scene;
43.28 	(5) fee schedule for service;
43.29 	(6) percent transport disposition;
43.30 	(7) transport destination;
43.31 	(8) unit hour utilization by service area; and
44.1 	(9) mutual aid given and received by municipality.
44.2 	(c) A licensee must provide the report of prehospital care data of all data items listed in 
44.3 	paragraph (b) to the governing body of the municipality by February 15 of each year.

44.4 	Sec. 56. Minnesota Statutes 2024, section 144G.45, subdivision 6, is amended to read:
44.5 		Subd. 6.New construction; plans. (a) For all new licensure and construction beginning 
44.6 	on or after August 1, 2021, the following must be provided to the commissioner:
44.7 	(1) architectural and engineering plans and specifications for new construction must be 
44.8 	prepared and signed by architects and engineers who are registered in Minnesota. Final 
44.9 	working drawings and specifications for proposed construction must be submitted to the 
44.10 	commissioner for review and approval;
44.11 	(2) final architectural plans and specifications must include elevations and sections 
44.12 	through the building showing types of construction, and must indicate dimensions and 
44.13 	assignments of rooms and areas, room finishes, door types and hardware, elevations and 
44.14 	details of nurses' work areas, utility rooms, toilet and bathing areas, and large-scale layouts 
44.15 	of dietary and laundry areas. Plans must show the location of fixed equipment and sections 
44.16 	and details of elevators, chutes, and other conveying systems. Fire walls and smoke partitions 
44.17 	must be indicated. The roof plan must show all mechanical installations. The site plan must 
44.18 	indicate the proposed and existing buildings, topography, roadways, walks and utility service 
44.19 	lines; and
44.20 	(3) final mechanical and electrical plans and specifications must address the complete 
44.21 	layout and type of all installations, systems, and equipment to be provided. Heating plans 
44.22 	must include heating elements, piping, thermostatic controls, pumps, tanks, heat exchangers, 
44.23 	boilers, breeching, and accessories. Ventilation plans must include room air quantities, 
44.24 	ducts, fire and smoke dampers, exhaust fans, humidifiers, and air handling units. Plumbing 
44.25 	plans must include the fixtures and equipment fixture schedule; water supply and circulating 
44.26 	piping, pumps, tanks, riser diagrams, and building drains; the size, location, and elevation 
44.27 	of water and sewer services; and the building fire protection systems. Electrical plans must 
44.28 	include fixtures and equipment, receptacles, switches, power outlets, circuits, power and 
44.29 	light panels, transformers, and service feeders. Plans must show location of nurse call signals, 
44.30 	cable lines, fire alarm stations, and fire detectors and emergency lighting.
44.31 	(b) Unless construction is begun within one year after approval of the final working 
44.32 	drawing and specifications, the drawings must be resubmitted for review and approval.
45.1 	(c) The commissioner must be notified within 30 days before completion of construction 
45.2 	so that the commissioner can make arrangements for a final inspection by the commissioner.
45.3 	(d) At least one set of complete life safety plans, including changes resulting from 
45.4 	remodeling or alterations, must be kept on file in the facility.
45.5 	(e) For new construction beginning on or after July 1, 2025, the licensee must comply 
45.6 	with section 144.554 to submit applicable construction plans and fees to the commissioner.

45.7 	Sec. 57. [145.9231] EPILEPSY AND RELATED SEIZURE DISORDERS; DATA 
45.8 	COLLECTION AND STATE COORDINATION PLAN.
45.9 		Subdivision 1.Data collection. The commissioner of health must collect, analyze, and 
45.10 	report data on epilepsy and related seizure disorders in Minnesota. The data must include 
45.11 	number of diagnoses, clinical outcomes, mortality rates, and related population health data 
45.12 	for each calendar year. Deidentified data must be made publicly available.
45.13 		Subd. 2.State coordination plan. The commissioner of health must use the data on 
45.14 	epilepsy and seizure disorders to inform statewide efforts and build coordinated systems 
45.15 	and partnerships to support community-led and culturally responsive strategies to ensure 
45.16 	that Minnesotans at risk for or living with epilepsy and seizure disorders and their caregivers 
45.17 	have equitable access to opportunities and resources to support their well-being and quality 
45.18 	of life. The commissioner of health must evaluate the data to determine the effectiveness 
45.19 	of the strategies.

45.20 	Sec. 58. Minnesota Statutes 2024, section 151.555, subdivision 6, is amended to read:
45.21 		Subd. 6.Standards and procedures for accepting donations of drugs and supplies
45.22 	and purchasing drugs from licensed wholesalers. (a) Notwithstanding any other law or 
45.23 	rule, a donor may donate drugs or medical supplies to the central repository or a local 
45.24 	repository if the drug or supply meets the requirements of this section as determined by a 
45.25 	pharmacist or practitioner who is employed by or under contract with the central repository 
45.26 	or a local repository.
45.27 	(b) A drug is eligible for donation under the medication repository program if the 
45.28 	following requirements are met:
45.29 	(1) the drug's expiration date is at least six months after the date the drug was donated. 
45.30 	If a donated drug bears an expiration date that is less than six months from the donation 
45.31 	date, the drug may be accepted and distributed if the drug is in high demand and can be 
45.32 	dispensed for use by a patient before the drug's expiration date;
46.1 	(2) the drug is in its original, sealed, unopened, tamper-evident packaging that includes 
46.2 	the expiration date. Single-unit-dose drugs may be accepted if the single-unit-dose packaging 
46.3 	is unopened;
46.4 	(3) the drug or the packaging does not have any physical signs of tampering, misbranding, 
46.5 	deterioration, compromised integrity, or adulteration;
46.6 	(4) the drug does not require storage temperatures other than normal room temperature 
46.7 	as specified by the manufacturer or United States Pharmacopoeia, unless the drug is being 
46.8 	donated directly by its manufacturer, a wholesale drug distributor, or a pharmacy located 
46.9 	in Minnesota; and
46.10 	(5) the drug is not a controlled substance.
46.11 	(c) A medical supply is eligible for donation under the medication repository program 
46.12 	if the following requirements are met:
46.13 	(1) the supply has no physical signs of tampering, misbranding, or alteration and there 
46.14 	is no reason to believe it has been adulterated, tampered with, or misbranded;
46.15 	(2) the supply is in its original, unopened, sealed packaging; and
46.16 	(3) if the supply bears an expiration date, the date is at least six months later than the 
46.17 	date the supply was donated. If the donated supply bears an expiration date that is less than 
46.18 	six months from the date the supply was donated, the supply may be accepted and distributed 
46.19 	if the supply is in high demand and can be dispensed for use by a patient before the supply's 
46.20 	expiration date.
46.21 	(d) The board shall develop the medication repository donor form and make it available 
46.22 	on the board's website. Prior to the first donation from a new donor, a central repository or 
46.23 	local repository shall verify and record the following information on the donor form:
46.24 	(1) the donor's name, address, phone number, and license number, if applicable;
46.25 	(2) that the donor will only make donations in accordance with the program;
46.26 	(3) to the best of the donor's knowledge, only drugs or supplies that have been properly 
46.27 	stored under appropriate temperature and humidity conditions will be donated; and
46.28 	(4) to the best of the donor's knowledge, only drugs or supplies that have never been 
46.29 	opened, used, tampered with, adulterated, or misbranded will be donated.
46.30 	(e) Notwithstanding any other law or rule, a central repository or a local repository may 
46.31 	receive donated drugs from donors. Donated drugs and supplies may be shipped or delivered 
46.32 	to the premises of the central repository or a local repository, and shall be inspected by a 
47.1 	pharmacist or an authorized practitioner who is employed by or under contract with the 
47.2 	repository and who has been designated by the repository prior to dispensing. A drop box 
47.3 	must not be used to deliver or accept donations.
47.4 	(f) The central repository and local repository shall maintain a written or electronic 
47.5 	inventory of all drugs and supplies donated to the repository upon acceptance of each drug 
47.6 	or supply. For each drug, the inventory must include the drug's name, strength, quantity, 
47.7 	manufacturer, expiration date, and the date the drug was donated. For each medical supply, 
47.8 	the inventory must include a description of the supply, its manufacturer, the date the supply 
47.9 	was donated, and, if applicable, the supply's brand name and expiration date. The board 
47.10 	may waive the requirement under this paragraph if an entity is under common ownership 
47.11 	or control with a central repository or local repository and either the entity or the repository 
47.12 	maintains an inventory containing all the information required under this paragraph.
47.13 	(g) The central repository may purchase a drug from a wholesaler licensed by the Board 
47.14 	of Pharmacy to fill prescriptions for eligible patients when the repository does not have a 
47.15 	sufficient supply of donated drugs to fill the prescription. The central repository may use 
47.16 	any purchased drugs remaining after filling the prescriptions for which the drugs were 
47.17 	initially purchased to fill other prescriptions. Whenever possible, the repository must use 
47.18 	donated drugs to fill prescriptions.

47.19 	Sec. 59. Minnesota Statutes 2024, section 151.555, subdivision 10, is amended to read:
47.20 		Subd. 10.Distribution of donated drugs and supplies. (a) The central repository and 
47.21 	local repositories may distribute drugs and supplies donated under the medication repository 
47.22 	program to other participating repositories for use pursuant to this program.
47.23 	(b) A local repository that elects not to dispense donated drugs or supplies that are 
47.24 	suitable for donation and dispensing must transfer all those donated drugs and supplies to 
47.25 	the central repository. A copy of the donor form that was completed by the original donor 
47.26 	under subdivision 6 must be provided to the central repository at the time of transfer. A 
47.27 	local repository must dispose of drugs and supplies in its possession that are not suitable 
47.28 	for donation or dispensing pursuant to subdivision 7.

47.29 	Sec. 60. Minnesota Statutes 2024, section 157.16, subdivision 2, is amended to read:
47.30 		Subd. 2.License renewal. Initial and renewal licenses for all food and beverage service 
47.31 	establishments, youth camps, hotels, motels, lodging establishments, public pools, and 
47.32 	resorts shall be issued on an annual basis. Any person who operates a place of business after 
47.33 	the expiration date of a license or without having submitted an application and paid the fee 
48.1 	shall be deemed to have violated the provisions of this chapter and shall be subject to 
48.2 	enforcement action, as provided in the Health Enforcement Consolidation Act, sections 
48.3 	144.989 to 144.993. In addition, a penalty of $60 $100 shall be added to the total of the 
48.4 	license fee for any food and beverage service establishment operating without a license as 
48.5 	a mobile food unit, a seasonal temporary or seasonal permanent food stand, or a special 
48.6 	event food stand, and a penalty of $120 $200 shall be added to the total of the license fee 
48.7 	for all restaurants, food carts, hotels, motels, lodging establishments, youth camps, public 
48.8 	pools, and resorts operating without a license for a period of up to 30 days. A late fee of 
48.9 	$360 $450 shall be added to the license fee for establishments operating more than 30 days 
48.10 	without a license.

48.11 	Sec. 61. Minnesota Statutes 2024, section 157.16, subdivision 2a, is amended to read:
48.12 		Subd. 2a.Food manager certification. An applicant for certification or certification 
48.13 	renewal as a food manager must submit to the commissioner a $35 $45 nonrefundable 
48.14 	certification fee payable to the Department of Health. The commissioner shall issue a 
48.15 	duplicate certificate to replace a lost, destroyed, or mutilated certificate if the applicant 
48.16 	submits a completed application on a form provided by the commissioner for a duplicate 
48.17 	certificate and pays $20 $25 to the department for the cost of duplication. In addition, a $5 
48.18 	technology fee must be paid with the initial certification, certification renewal, or duplicate 
48.19 	certificate application.

48.20 	Sec. 62. Minnesota Statutes 2024, section 157.16, subdivision 3, is amended to read:
48.21 		Subd. 3.Establishment fees; definitions. (a) The following fees are required for food 
48.22 	and beverage service establishments, youth camps, hotels, motels, lodging establishments, 
48.23 	public pools, and resorts licensed under this chapter. Food and beverage service 
48.24 	establishments must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), 
48.25 	or (4). The license fee for new operators previously licensed under this chapter for the same 
48.26 	calendar year is one-half of the appropriate annual license fee, plus any penalty that may 
48.27 	be required. The license fee for operators opening on or after October 1 is one-half of the 
48.28 	appropriate annual license fee, plus any penalty that may be required.
48.29 	(b) All food and beverage service establishments, except special event food stands, and 
48.30 	all hotels, motels, lodging establishments, public pools, and resorts shall pay an annual base 
48.31 	fee of $165 $300.
48.32 	(c) A special event food stand shall pay a flat fee of $55 $75 annually. "Special event 
48.33 	food stand" means a fee category where food is prepared or served in conjunction with 
49.1 	celebrations, county fairs, or special events from a special event food stand as defined in 
49.2 	section 157.15.
49.3 	(d) In addition to the base fee in paragraph (b), each food and beverage service 
49.4 	establishment, other than a special event food stand and a school concession stand, and each 
49.5 	hotel, motel, lodging establishment, public pool, and resort shall pay an additional annual 
49.6 	fee for each fee category, additional food service, or required additional inspection specified 
49.7 	in this paragraph:
49.8 	(1) Category 1 establishment, $110 $185. "Category 1 establishment" means a fee 
49.9 	category that provides one or more of the following items or is one of the listed 
49.10 	establishments or facilities:
49.11 	(i) serves prepackaged food that is served in the package;
49.12 	(ii) serves a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
49.13 	(iii) serves soft drinks, coffee, or nonalcoholic beverages;
49.14 	(iv) provides cleaning for eating, drinking, or cooking utensils, when the only food 
49.15 	served is prepared off site;
49.16 	(v) a food establishment where the method of food preparation meets the definition of 
49.17 	a low-risk establishment in section 157.20; or
49.18 	(vi) operates as a child care facility licensed under section 142B.05 and Minnesota Rules, 
49.19 	chapter 9503.
49.20 	(2) Category 2 establishment, $245 $430. "Category 2 establishment" means an 
49.21 	establishment that is not a Category 1 establishment and is either:
49.22 	(i) a food establishment where the method of food preparation meets the definition of a 
49.23 	medium-risk establishment in section 157.20; or
49.24 	(ii) an elementary or secondary school as defined in section 120A.05.
49.25 	(3) Category 3 establishment, $385 $670. "Category 3 establishment" means an 
49.26 	establishment that is not a Category 1 or Category 2 establishment and is either:
49.27 	(i) a food establishment where the method of food preparation meets the definition of a 
49.28 	high-risk establishment in section 157.20; or
49.29 	(ii) an establishment where 500 or more meals are prepared per day and served at one 
49.30 	or more separate locations.
50.1 	(4) Other food and beverage service, including food carts, mobile food units, seasonal 
50.2 	temporary food stands, and seasonal permanent food stands, $85 $150.
50.3 	(5) Lodging per sleeping accommodation unit, $11 $15, including hotels, motels, lodging 
50.4 	establishments, and resorts, up to a maximum of $1,100 $1,500. "Lodging per sleeping 
50.5 	accommodation unit" means a fee category including the number of guest rooms, cottages, 
50.6 	or other rental units of a hotel, motel, lodging establishment, or resort; or the number of 
50.7 	beds in a dormitory.
50.8 	(6) First public pool, $355 $455; each additional public pool, $200 $300. "Public pool" 
50.9 	means a fee category that has the meaning given in section 144.1222, subdivision 4.
50.10 	(7) First spa, $200 $300; each additional spa, $110 $200. "Spa pool" means a fee category 
50.11 	that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
50.12 	(8) Private sewer or water, $60 $85. "Individual private water" means a fee category 
50.13 	with a water supply other than a community public water supply as defined in Minnesota 
50.14 	Rules, chapter 4720. "Individual private sewer" means a fee category with an individual 
50.15 	sewage treatment system which uses subsurface treatment and disposal.
50.16 	(9) Additional food service, $175 $250. "Additional food service" means a location at 
50.17 	a food service establishment, other than the primary food preparation and service area, used 
50.18 	to prepare or serve beverages or food to the public. Additional food service does not apply 
50.19 	to school concession stands.
50.20 	(10) Additional inspection fee, $250 $350. "Additional inspection fee" means a fee to 
50.21 	conduct the second inspection each year for elementary and secondary education facility 
50.22 	school lunch programs when required by the Richard B. Russell National School Lunch 
50.23 	Act.
50.24 	(11) HACCP verification, $175 $225. "HACCP verification" means an annual fee 
50.25 	category for a business that performs one or more specialized process that requires an 
50.26 	HACCP plan as required in chapter 31 and Minnesota Rules, chapter 4626.
50.27 	(e) A fee for review of construction plans must accompany the initial license application 
50.28 	for restaurants, hotels, motels, lodging establishments, resorts, seasonal food stands, and 
50.29 	mobile food units. Plans submitted less than 30 days prior to construction are subject to 50 
50.30 	percent of the original plan review fee. A fee for review of an HACCP plan for specialized 
50.31 	processing must be submitted and approved prior to preparing and serving the specialized 
50.32 	processed food for human consumption. The fees for construction plan reviews and HACCP 
50.33 	plan reviews are as follows:

51.1	Service Area
	Type
	Fee
	
51.351.2
	Food
	category 1 establishment
	$400
$550
	
51.551.4
		category 2 establishment
	$450
$750
	
51.751.6
		category 3 food establishment
	$500
$800
	
51.951.8
		additional food service
	$250
$400
	
51.1151.10
		HACCP Plan Review
	$500
$600
	
51.1351.12
	Transient food service
	food cart
	$250
$500
	
51.1551.14
		seasonal permanent food stand
	$250
$500
	
51.1751.16
		seasonal temporary food stand
	$250
$500
	
51.1951.18
		mobile food unit
	$350
$700
	
51.2151.20
	Lodging
	less than 25 rooms
	$375
$450
	
51.2351.22
		25 to less than 100 rooms
	$400
$500
	
51.2551.24
		100 rooms or more
	$500
$600
	
51.2751.26
		less than five cabins
	$350
$400
	
51.2951.28
		five to less than ten cabins
	$400
$450
	
51.3151.30
		ten cabins or more
	$450
$500
	
51.32 	(f) When existing food and beverage service establishments, hotels, motels, lodging 
51.33 	establishments, resorts, seasonal food stands, and mobile food units are extensively 
51.34 	remodeled, a fee must be submitted with the remodeling plans. The fee for this construction 
51.35 	plan review is as follows:

51.36	Service Area
	Type
	Fee
	
51.3851.37
	Food
	category 1 establishment
	$300
$450
	
51.4051.39
		category 2 establishment
	$350
$500
	
51.4251.41
		category 3 establishment
	$400
$550
	
51.4451.43
		additional food service
	$250
$400
	
52.252.1
	Transient food service
	food cart
	$250
$400
	
52.452.3
		seasonal permanent food stand
	$250
$400
	
52.652.5
		seasonal temporary food stand
	$250
$400
	
52.852.7
		mobile food unit
	$250
$400
	
52.1052.9	Lodging
	less than 25 rooms
	$250
$300
	
52.1252.11
		25 to less than 100 rooms
	$300
$350
	
52.1452.13
		100 rooms or more
	$450
$500
	
52.1652.15
		less than five cabins
	$250
$300
	
52.1852.17
		five to less than ten cabins
	$350
$400
	
52.2052.19
		ten cabins or more
	$400
$450
	
52.21 	(g) Special event food stands are not required to submit construction or remodeling plans 
52.22 	for review.
52.23 	(h) Youth camps shall pay an annual single fee for food and lodging as follows:
52.24 	(1) camps with up to 99 campers, $325 $375;
52.25 	(2) camps with 100 to 199 campers, $550 $600; and
52.26 	(3) camps with 200 or more campers, $750 $800.
52.27 	(i) A youth camp which pays fees under paragraph (d) is not required to pay fees under 
52.28 	paragraph (h).

52.29 	Sec. 63. Minnesota Statutes 2024, section 157.16, subdivision 3a, is amended to read:
52.30 		Subd. 3a.Statewide hospitality fee. Every person, firm, or corporation that operates a 
52.31 	licensed boarding establishment, food and beverage service establishment, seasonal temporary 
52.32 	or permanent food stand, special event food stand, mobile food unit, food cart, resort, hotel, 
52.33 	motel, or lodging establishment in Minnesota must submit to the commissioner a $40 $50
52.34 	annual statewide hospitality fee for each licensed activity. The fee for establishments licensed 
52.35 	by the Department of Health is required at the same time the licensure fee is due. For 
52.36 	establishments licensed by local governments, the fee is due by July 1 of each year.

53.1 	Sec. 64. Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to 
53.2 	read:
53.3 		Subd. 3b.Technology fee. Every food and beverage service establishment, youth camp, 
53.4 	hotel, motel, lodging establishment, public pool, and resort licensed under this chapter must 
53.5 	pay a $5 technology fee for each licensed activity for the initial license and with each 
53.6 	renewal.

53.7 	Sec. 65. Minnesota Statutes 2024, section 256B.0625, subdivision 2, is amended to read:
53.8 		Subd. 2.Skilled and intermediate nursing care. (a) Medical assistance covers skilled 
53.9 	nursing home services and services of intermediate care facilities, including training and 
53.10 	habilitation services, as defined in section 252.41, subdivision 3, for persons with 
53.11 	developmental disabilities who are residing in intermediate care facilities for persons with 
53.12 	developmental disabilities. Medical assistance must not be used to pay the costs of nursing 
53.13 	care provided to a patient in a swing bed as defined in section 144.562, unless (1) the facility 
53.14 	in which the swing bed is located is eligible as a sole community provider, as defined in 
53.15 	Code of Federal Regulations, title 42, section 412.92, or the facility is a public hospital 
53.16 	owned by a governmental entity with 15 or fewer licensed acute care beds; (2) the Centers 
53.17 	for Medicare and Medicaid Services approves the necessary state plan amendments; (3) the 
53.18 	patient was screened as provided by law; (4) the patient no longer requires acute care 
53.19 	services; and (5) no nursing home beds are available within 25 miles of the facility. The 
53.20 	commissioner shall exempt a facility from compliance with the sole community provider 
53.21 	requirement in clause (1) if, as of January 1, 2004, the facility had an agreement with the 
53.22 	commissioner to provide medical assistance swing bed services.
53.23 	(b) Medical assistance also covers up to ten days of nursing care provided to a patient 
53.24 	in a swing bed if: (1) the patient's physician, advanced practice registered nurse, or physician 
53.25 	assistant certifies that the patient has a terminal illness or condition that is likely to result 
53.26 	in death within 30 days and that moving the patient would not be in the best interests of the 
53.27 	patient and patient's family; (2) no open nursing home beds are available within 25 miles 
53.28 	of the facility; and (3) no open beds are available in any Medicare hospice program within 
53.29 	50 miles of the facility. The daily medical assistance payment for nursing care for the patient 
53.30 	in the swing bed is the statewide average medical assistance skilled nursing care per diem 
53.31 	as computed annually by the commissioner on July 1 of each year.

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

54.1 	Sec. 66. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 2b.Nursing care provided to a patient in a swing bed. (a) Medical assistance 
54.4 	must not be used to pay the costs of nursing care provided to a patient in a swing bed as 
54.5 	defined in section 144.562, unless:
54.6 	(1) the facility where the swing bed is located is eligible as a sole community provider, 
54.7 	as defined in Code of Federal Regulations, title 42, section 412.92, or the facility is a public 
54.8 	hospital owned by a governmental entity with 15 or fewer licensed acute care beds;
54.9 	(2) the Centers for Medicare and Medicaid Services approves the necessary state plan 
54.10 	amendments;
54.11 	(3) the patient was screened as provided by law;
54.12 	(4) the patient no longer requires acute care services; and
54.13 	(5) no nursing home beds are available within 25 miles of the facility.
54.14 	(b) The commissioner shall exempt a facility from compliance with the sole community 
54.15 	provider requirement in paragraph (a), clause (1), if, as of January 1, 2004, the facility had 
54.16 	an agreement with the commissioner to provide medical assistance swing bed services.
54.17 	(c) Medical assistance also covers up to ten days of nursing care provided to a patient 
54.18 	in a swing bed if:
54.19 	(1) the patient's physician, advanced practice registered nurse, or physician assistant 
54.20 	certifies that the patient has a terminal illness or condition that is likely to result in death 
54.21 	within 30 days and that moving the patient would not be in the best interests of the patient 
54.22 	and patient's family;
54.23 	(2) no open nursing home beds are available within 25 miles of the facility; and
54.24 	(3) no open beds are available in any Medicare hospice program within 50 miles of the 
54.25 	facility.
54.26 	(d) The commissioner shall exempt any facility described under section 144.5621 from 
54.27 	compliance with the requirements of paragraph (a), clauses (3) and (5), and paragraph (c), 
54.28 	and medical assistance covers an unlimited number of days of nursing care provided to a 
54.29 	patient in a swing bed at a facility described under section 144.5621.
54.30 	(e) The daily medical assistance payment for nursing care for the patient in the swing 
54.31 	bed is the statewide average medical assistance skilled nursing care per diem as computed 
54.32 	annually by the commissioner on July 1 of each year.

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

55.4 	Sec. 67. Minnesota Statutes 2024, section 256B.692, subdivision 2, is amended to read:
55.5 		Subd. 2.Duties of commissioner of health. (a) Notwithstanding chapters 62D and 62N, 
55.6 	a county that elects to purchase medical assistance in return for a fixed sum without regard 
55.7 	to the frequency or extent of services furnished to any particular enrollee is not required to 
55.8 	obtain a certificate of authority under chapter 62D or 62N. The county board of 
55.9 	commissioners is the governing body of a county-based purchasing program. In a multicounty 
55.10 	arrangement, the governing body is a joint powers board established under section 471.59.
55.11 	(b) A county that elects to purchase medical assistance services under this section must 
55.12 	satisfy the commissioner of health that the requirements for assurance of consumer protection, 
55.13 	provider protection, and fiscal solvency of chapter 62D, applicable to health maintenance 
55.14 	organizations will be met according to the following schedule:
55.15 	(1) for a county-based purchasing plan approved on or before June 30, 2008, the plan 
55.16 	must have in reserve:
55.17 	(i) at least 50 percent of the minimum amount required under chapter 62D as of January 
55.18 	1, 2010;
55.19 	(ii) at least 75 percent of the minimum amount required under chapter 62D as of January 
55.20 	1, 2011;
55.21 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D as of 
55.22 	January 1, 2012; and
55.23 	(iv) at least 100 percent of the minimum amount required under chapter 62D as of January 
55.24 	1, 2013; and
55.25 	(2) for a county-based purchasing plan first approved after June 30, 2008, the plan must 
55.26 	have in reserve:
55.27 	(i) at least 50 percent of the minimum amount required under chapter 62D at the time 
55.28 	the plan begins enrolling enrollees;
55.29 	(ii) at least 75 percent of the minimum amount required under chapter 62D after the first 
55.30 	full calendar year;
55.31 	(iii) at least 87.5 percent of the minimum amount required under chapter 62D after the 
55.32 	second full calendar year; and
56.1 	(iv) at least 100 percent of the minimum amount required under chapter 62D after the 
56.2 	third full calendar year.
56.3 	(c) Until a plan is required to have reserves equaling at least 100 percent of the minimum 
56.4 	amount required under chapter 62D, the plan may demonstrate its ability to cover any losses 
56.5 	by satisfying the requirements of chapter 62N. A county-based purchasing plan must also 
56.6 	assure the commissioner of health that the requirements of sections 62J.041; 62J.48; 62J.71 
56.7 	to 62J.73; all applicable provisions of chapter 62Q, including sections 62Q.075; 62Q.1055; 
56.8 	62Q.106; 62Q.12; 62Q.135; 62Q.14; 62Q.19; 62Q.23, paragraph (c); 62Q.43; 62Q.47; 
56.9 	62Q.50; 62Q.52 to 62Q.56; 62Q.58; 62Q.68 to 62Q.72; and 72A.201 will be met.
56.10 	(d) All enforcement and rulemaking powers available under chapters 62D, 62J, 62N, 
56.11 	and 62Q are hereby granted to the commissioner of health with respect to counties that 
56.12 	purchase medical assistance services under this section.
56.13 	(e) The commissioner, in consultation with county government, shall develop 
56.14 	administrative and financial reporting requirements for county-based purchasing programs 
56.15 	relating to sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 62N.31, 
56.16 	and other sections as necessary, that are specific to county administrative, accounting, and 
56.17 	reporting systems and consistent with other statutory requirements of counties.
56.18 	(f) The commissioner shall collect from a county-based purchasing plan under this 
56.19 	section the following fees:
56.20 	(1) fees attributable to the costs of audits and other examinations of plan financial 
56.21 	operations. These fees are subject to the provisions of Minnesota Rules, part 4685.2800, 
56.22 	subpart 1, item F; and
56.23 	(2) an annual fee of $21,500 $30,000, to be paid by June 15 of each calendar year.
56.24 	All fees collected under this paragraph shall be deposited in the state government special 
56.25 	revenue fund.

56.26 	Sec. 68. Minnesota Statutes 2024, section 256R.01, is amended by adding a subdivision 
56.27 	to read:
56.28 		Subd. 1a.Payment rates for nursing care provided to a patient in a swing 
56.29 	bed. Payment rates paid to any hospital for nursing care provided to a patient in a swing 
56.30 	bed must be those rates established pursuant to section 256B.0625, subdivision 2b.

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

57.4 	Sec. 69. Minnesota Statutes 2024, section 326.72, subdivision 1, is amended to read:
57.5 		Subdivision 1.When license required. A person within the state intending to directly 
57.6 	perform or cause to be performed through subcontracting or similar delegation any 
57.7 	asbestos-related work either for financial gain or with respect to the person's own property 
57.8 	shall first apply for and obtain a license from the commissioner. The license shall be in 
57.9 	writing, be dated when issued, contain an expiration date, be signed by the commissioner, 
57.10 	and give the name and address of the person to whom it is issued.
57.11 	The domiciled owner of a single family residence is not required to hold a license or 
57.12 	pay a project permit fee to conduct asbestos-related work in the domiciled residence.
57.13 	Any person performing any asbestos-related work within the state must be licensed by 
57.14 	the commissioner, whether directly performing asbestos work or causing it to be performed 
57.15 	through subcontracting or similar delegation. A domiciled owner of a single-family residence 
57.16 	is not required to hold a license or pay a project permit fee to conduct asbestos-related work 
57.17 	in the domiciled residence.

57.18 	Sec. 70. Minnesota Statutes 2024, section 326.75, subdivision 3, is amended to read:
57.19 		Subd. 3.Permit fee. Five calendar days before beginning asbestos-related work, a person 
57.20 	shall pay a project permit fee to the commissioner equal to two three percent of the total 
57.21 	costs of the asbestos-related work. For asbestos-related work performed in single or 
57.22 	multifamily residences, of greater than ten but less than 260 linear feet of asbestos-containing 
57.23 	material on pipes, or greater than six but less than 160 square feet of asbestos-containing 
57.24 	material on other facility components, a person shall pay a project permit fee of $35 to the 
57.25 	commissioner.

57.26 	Sec. 71. Minnesota Statutes 2024, section 326.75, subdivision 3a, is amended to read:
57.27 		Subd. 3a.Asbestos-related training course permit fee. The commissioner shall establish 
57.28 	by rule a permit fee to be paid by A training course provider shall pay the commissioner a 
57.29 	fee of $500 on application for a training course permit or and $250 for the renewal of a 
57.30 	permit of each asbestos-related training course required for certification or registration.

58.1 	Sec. 72. Minnesota Statutes 2024, section 327.15, subdivision 2, is amended to read:
58.2 		Subd. 2.License renewal. Initial and renewal licenses for all manufactured home parks 
58.3 	and recreational camping areas shall be issued annually and shall have an expiration date 
58.4 	included on the license. Any person who operates a manufactured home park or recreational 
58.5 	camping area after the expiration date of a license or without having submitted an application 
58.6 	and paid the fee shall be deemed to have violated the provisions of this chapter and shall 
58.7 	be subject to enforcement action, as provided in the Health Enforcement Consolidation Act, 
58.8 	sections 144.989 to 144.993. In addition, a penalty of $120 $200 shall be added to the total 
58.9 	of the license fee for any manufactured home park or recreational camping area operating 
58.10 	without a license for a period of up to 30 days. A late fee of $360 $450 shall be added to 
58.11 	the license fee for any manufactured home park or recreational camping area operating 
58.12 	more than 30 days without a license.

58.13 	Sec. 73. Minnesota Statutes 2024, section 327.15, subdivision 3, is amended to read:
58.14 		Subd. 3.Fees, manufactured home parks and recreational camping areas. (a) The 
58.15 	following fees are required for manufactured home parks and recreational camping areas 
58.16 	licensed under this chapter. Fees collected under this section shall be deposited in the state 
58.17 	government special revenue fund. Recreational camping areas and manufactured home 
58.18 	parks shall pay the highest applicable base fee under paragraph (b). The license fee for new 
58.19 	operators of a manufactured home park or recreational camping area previously licensed 
58.20 	under this chapter for the same calendar year is one-half of the appropriate annual license 
58.21 	fee, plus any penalty that may be required. The license fee for operators opening on or after 
58.22 	October 1 is one-half of the appropriate annual license fee, plus any penalty that may be 
58.23 	required.
58.24 	(b) All manufactured home parks and recreational camping areas shall pay the following 
58.25 	annual base fee:
58.26 	(1) a manufactured home park, $165 $280; and
58.27 	(2) a recreational camping area with:
58.28 	(i) 24 or less sites, $55 $100;
58.29 	(ii) 25 to 99 sites, $230 $410; and
58.30 	(iii) 100 or more sites, $330 $610.
58.31 	In addition to the base fee, manufactured home parks and recreational camping areas shall 
58.32 	pay $5 $8 for each licensed site. This paragraph does not apply to special event recreational 
59.1 	camping areas. Operators of a manufactured home park or a recreational camping area also 
59.2 	licensed under section 157.16 for the same location shall pay only one base fee, whichever 
59.3 	is the highest of the base fees found in this section or section 157.16.
59.4 	(c) In addition to the fee in paragraph (b), each manufactured home park or recreational 
59.5 	camping area shall pay an additional annual fee for each fee category specified in this 
59.6 	paragraph:
59.7 	(1) Manufactured home parks and recreational camping areas with public swimming 
59.8 	pools and spas shall pay the appropriate fees specified in section 157.16.
59.9 	(2) Individual private sewer or water, $60 $85. "Individual private water" means a fee 
59.10 	category with a water supply other than a community public water supply as defined in 
59.11 	Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a 
59.12 	subsurface sewage treatment system which uses subsurface treatment and disposal.
59.13 	(d) The following fees must accompany a plan review application for initial construction 
59.14 	of a manufactured home park or recreational camping area:
59.15 	(1) for initial construction of less than 25 sites, $375 $400;
59.16 	(2) for initial construction of 25 to 99 sites, $400 $425; and
59.17 	(3) for initial construction of 100 or more sites, $500 $525.
59.18 	(e) The following fees must accompany a plan review application when an existing 
59.19 	manufactured home park or recreational camping area is expanded:
59.20 	(1) for expansion of less than 25 sites, $250 $300;
59.21 	(2) for expansion of 25 to 99 sites, $300 $350; and
59.22 	(3) for expansion of 100 or more sites, $450 $500.

59.23 	Sec. 74. Minnesota Statutes 2024, section 327.15, subdivision 4, is amended to read:
59.24 		Subd. 4.Fees, special event recreational camping areas. (a) The following fees are 
59.25 	required for special event recreational camping areas licensed under this chapter.
59.26 	(b) All special event recreational camping areas shall pay an annual fee of $150 $250
59.27 	plus $1 $4 for each licensed site.
59.28 	(c) A special event recreational camping area shall pay a late fee of $360 $450 for failing 
59.29 	to obtain a license prior to operating.
60.1 	(d) The following fees must accompany a plan review application for initial construction 
60.2 	of a special event recreational camping area:
60.3 	(1) for initial construction of less than 25 special event recreational camping sites, $375
60.4 	$475;
60.5 	(2) for initial construction of 25 to 99 sites, $400 $500; and
60.6 	(3) for initial construction of 100 or more sites, $500 $600.
60.7 	(e) The following fees must accompany a plan review application for expansion of a 
60.8 	special event recreational camping area:
60.9 	(1) for expansion of less than 25 sites, $250 $300;
60.10 	(2) for expansion of 25 to 99 sites, $300 $350; and
60.11 	(3) for expansion of 100 or more sites, $450 $500.

60.12 	Sec. 75. Minnesota Statutes 2024, section 327.15, is amended by adding a subdivision to 
60.13 	read:
60.14 		Subd. 5.Technology fee. All manufactured home parks, recreational camping areas, 
60.15 	and special event camping areas must pay a $5 technology fee at initial licensing and upon 
60.16 	each renewal.

60.17 	Sec. 76. SPOKEN LANGUAGE HEALTH CARE INTERPRETER WORK GROUP.
 60.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
60.19 	the meanings given.
60.20 	(b) "Commissioner" means the commissioner of health.
60.21 	(c) "Common languages" means the 15 most frequent languages without regard to dialect 
60.22 	in Minnesota.
60.23 	(d) "Registered interpreter" means a spoken language interpreter who is listed on the 
60.24 	Department of Health's spoken language health care interpreter roster.
60.25 	(e) "Work group" means the spoken language health care interpreter work group 
60.26 	established in subdivision 2.
60.27 		Subd. 2.Composition. The commissioner shall, after receiving work group candidate 
60.28 	applications, appoint 15 members to the work group consisting of the following members:
61.1 	(1) three members who are interpreters listed on the Department of Health's spoken 
61.2 	language health care interpreter roster and who are Minnesota residents. Of these members: 
61.3 	(i) each must be an interpreter for a different language; (ii) at least one must have a national 
61.4 	certification credential; and (iii) at least one must have been listed on the roster as an 
61.5 	interpreter in a language other than the common languages and must have completed a 
61.6 	nationally recognized training program for health care interpreters that is, at a minimum, 
61.7 	40 hours in length;
61.8 	(2) three members representing limited English proficiency (LEP) individuals. Of these 
61.9 	members, two must represent LEP individuals who are not proficient in a common language 
61.10 	and one must represent LEP individuals who are proficient in a language that is not one of 
61.11 	the common languages;
61.12 	(3) one member representing a health plan company;
61.13 	(4) one member representing a Minnesota health system who is not an interpreter;
61.14 	(5) two members representing interpreter agencies, including one member representing 
61.15 	agencies whose main office is located outside the seven-county metropolitan area and one 
61.16 	member representing agencies whose main office is located within the seven-county 
61.17 	metropolitan area;
61.18 	(6) one member representing the Department of Health;
61.19 	(7) one member representing the Department of Human Services;
61.20 	(8) one member representing an interpreter training program or postsecondary educational 
61.21 	institution program providing interpreter courses or skills assessment;
61.22 	(9) one member who is affiliated with a Minnesota-based or Minnesota chapter of a 
61.23 	national or international organization representing interpreters; and
61.24 	(10) one member who is a licensed direct care health provider.
61.25 		Subd. 3.Duties. The work group must compile a list of recommendations to support 
61.26 	and improve access to the critical health care interpreting services provided across the state, 
61.27 	including but not limited to:
61.28 	(1) changing requirements for registered and certified interpreters to reflect changing 
61.29 	needs of the Minnesota health care community and emerging national standards of training, 
61.30 	competency, and testing;
61.31 	(2) addressing barriers for interpreters to gain access to the roster, including barriers to 
61.32 	interpreters of uncommon languages and interpreters in rural areas;
62.1 	(3) reimbursing spoken language health care interpreting;
62.2 	(4) identifying gaps in interpreter services in rural areas and recommending ways to 
62.3 	address interpreter training and funding needs;
62.4 	(5) providing training, certification, and continuing education programs;
62.5 	(6) convening a meeting of public and private sector representatives of the spoken 
62.6 	language health care interpreters community to identify ongoing sources of financial 
62.7 	assistance to aid individual interpreters in meeting interpreter training and testing registry 
62.8 	requirements;
62.9 	(7) conducting surveys of people receiving and providing interpreter services to 
62.10 	understand changing needs and consumer quality care; and
62.11 	(8) suggesting changes in requirements and qualifications on telehealth or remote 
62.12 	interpreting.
62.13 		Subd. 4.Compensation; expense reimbursement. Compensation shall be offered to 
62.14 	work group members not being compensated for their participation in work group activities 
62.15 	as part of their existing job duties. Work group members shall be compensated and 
62.16 	reimbursed for expenses for work group activities under section 15.059, subdivision 3.
62.17 		Subd. 5.Administrative support; meeting space; meeting facilitation. The 
62.18 	commissioner must provide meeting space and administrative support for the work group. 
62.19 	The commissioner may contract with a neutral independent consultant to provide this 
62.20 	administrative support and to facilitate and lead the meetings of the work group.
62.21 		Subd. 6.Deadline for appointments. The commissioner must appoint members to the 
62.22 	work group by August 15, 2025.
62.23 		Subd. 7.Expiration. This section expires on November 2, 2026, or upon submission 
62.24 	of the report required under subdivision 9, whichever is earlier.
62.25 		Subd. 8.Initial spoken language health care interpreter work group meetings. The 
62.26 	commissioner shall convene the first meeting of the work group by October 1, 2025. Prior 
62.27 	to the first meeting, work group members must receive results from previously conducted 
62.28 	surveys and gather evidence-based research on interpreter services in Minnesota. During 
62.29 	the first meetings, work group members may consult with subject matter experts, including 
62.30 	but not limited to signed language interpreting experts, academic experts with knowledge 
62.31 	of interpreting research, and academic health experts to address specific gaps in spoken 
62.32 	language health care interpreting. The work group shall provide a minimum of two 
62.33 	opportunities for public comment. These opportunities shall be announced with at least four 
63.1 	weeks' notice, with publicity in the five most common languages in Minnesota. Interpreters 
63.2 	for those same languages shall be provided during the public comment opportunities.
63.3 		Subd. 9.Report. The commissioner must provide the chairs and ranking minority 
63.4 	members of the legislative committees with jurisdiction over health care interpreter services 
63.5 	with recommendations, including draft legislation and any statutory changes needed to 
63.6 	implement the recommendations, to improve and support access to health care interpreting 
63.7 	services statewide by November 1, 2026.

63.8 	Sec. 77. AFRICAN AMERICAN-FOCUSED HOMEPLACE GRANT PROGRAM.
 63.9 	(a) The commissioner of health must establish a grant program to strengthen and 
63.10 	implement the current model of the African American-focused Homeplace in Hennepin 
63.11 	County. The purpose of the model is to improve access to culturally centered healing and 
63.12 	care during pregnancy and the postpartum period, with the goal of improving maternal and 
63.13 	child health outcomes.
63.14 	(b) By December 15, 2026, the grantee must submit a report to the commissioner of 
63.15 	health on the implementation and progress of Homeplace in Hennepin County. The report 
63.16 	must outline outcomes achieved and recommendations for future funding and program 
63.17 	expansion.

63.18 	Sec. 78. RULEMAKING.
 63.19 	The Department of Health must adopt rules using the expedited process under Minnesota 
63.20 	Statutes, section 14.389, to amend certain parts in Minnesota Rules, chapter 4695, to conform 
63.21 	with the changes made in this act.

63.22 	Sec. 79. REPEALER.
 63.23 	(a) Minnesota Statutes 2024, sections 62J.824; and 103I.550, are repealed.
63.24 	(b) Minnesota Rules, part 4695.2900, is repealed.

63.25 	ARTICLE 2
63.26 	DEPARTMENT OF HEALTH POLICY

63.27 	Section 1. Minnesota Statutes 2024, section 62J.461, subdivision 3, is amended to read:
63.28 		Subd. 3.Reporting by covered entities to the commissioner. (a) Each 340B covered 
63.29 	entity shall report to the commissioner by April 1 of each year the following information 
64.1 	for transactions conducted by the 340B covered entity or on its behalf, and related to its 
64.2 	participation in the federal 340B program for the previous calendar year:
64.3 	(1) the aggregated acquisition cost for prescription drugs obtained under the 340B 
64.4 	program;
64.5 	(2) the aggregated payment amount received for drugs obtained under the 340B program 
64.6 	and dispensed or administered to patients;:
64.7 	(i) that are net of the contracted price for insurance claims payments; and
64.8 	(ii) that reflect the portion of payment received from grants, cash, or other payment types 
64.9 	that relate to the dispensing or administering of drugs obtained under the 340B program;
64.10 	(3) the number of pricing units dispensed or administered for prescription drugs described 
64.11 	in clause (2); and
64.12 	(4) the aggregated payments made:
64.13 	(i) to contract pharmacies to dispense drugs obtained under the 340B program;
64.14 	(ii) to any other entity that is not the covered entity and is not a contract pharmacy for 
64.15 	managing any aspect of the covered entity's 340B program; and
64.16 	(iii) for all other internal, direct expenses related to administering the 340B program
64.17 	with a detailed description of the direct costs included.
64.18 	The information under clauses (2) and (3) must be reported by payer type, including but 
64.19 	not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in 
64.20 	the form and manner prescribed by the commissioner.
64.21 	(b) For covered entities that are hospitals, the information required under paragraph (a), 
64.22 	clauses (1) to (3), must also be reported at the national drug code level for the 50 most 
64.23 	frequently dispensed or administered drugs by the facility under the 340B program.
64.24 	(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as 
64.25 	nonpublic data, as defined in section 13.02, subdivision 9.

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

65.3 	Sec. 3. Minnesota Statutes 2024, section 62J.461, subdivision 5, is amended to read:
65.4 		Subd. 5.Reports to the legislature. By November 15, 2024, and by November 15 of 
65.5 	each year thereafter, the commissioner shall submit to the chairs and ranking minority 
65.6 	members of the legislative committees with jurisdiction over health care finance and policy, 
65.7 	a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). The 
65.8 	following information must be included in the report For all 340B entities whose net 340B 
65.9 	revenue constitutes a significant share, as determined by the commissioner, of all net 340B 
65.10 	revenue across all 340B covered entities in Minnesota, the following information must also 
65.11 	be included in the report:
65.12 	(1) the information submitted under subdivision 2; and
65.13 	(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as 
65.14 	calculated using the data submitted under subdivision 3, paragraph (a), with net revenue 
65.15 	being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a), 
65.16 	clauses (1) and (4).
65.17 	For all other entities, the data in the report must be aggregated to the entity type or groupings 
65.18 	of entity types in a manner that prevents the identification of an individual entity and any 
65.19 	entity's specific data value reported for an individual data element.

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

65.25 	Sec. 5. Minnesota Statutes 2024, section 62J.581, is amended to read:
65.26 	62J.581 STANDARDS FOR MINNESOTA UNIFORM HEALTH CARE 
65.27 	REIMBURSEMENT DOCUMENTS.
65.28 		Subdivision 1.Minnesota uniform remittance advice.  All group purchasers shall 
65.29 	provide a uniform claim payment/advice transaction to health care providers when a claim 
65.30 	is adjudicated. The uniform claim payment/advice transaction shall comply with section 
66.1 	62J.536, subdivision 1, paragraph (b), and rules adopted under section 62J.536, subdivision 
66.2 	2.
66.3 		Subd. 2.Minnesota uniform explanation of benefits document. (a) All group 
66.4 	purchasers shall provide a uniform explanation of benefits document to health care patients 
66.5 	when an explanation of benefits document is provided as otherwise required or permitted 
66.6 	by law. The uniform explanation of benefits document shall comply with the standards 
66.7 	prescribed in this section.
66.8 	(b) Notwithstanding paragraph (a), this section does not apply to group purchasers not 
66.9 	included as covered entities under United States Code, title 42, sections 1320d to 1320d-8, 
66.10 	as amended from time to time, and the regulations promulgated under those sections.
66.11 		Subd. 3.Scope. For purposes of sections 62J.50 to 62J.61, the uniform claim 
66.12 	payment/advice transaction and uniform explanation of benefits document format specified 
66.13 	in subdivision 4 shall apply to all health care services delivered by a health care provider 
66.14 	or health care provider organization in Minnesota, regardless of the location of the payer. 
66.15 	Health care services not paid on an individual claims basis, such as capitated payments, are 
66.16 	not included in this section. A health plan company is excluded from the requirements in 
66.17 	subdivisions 1 and subdivision 2 if they comply with section 62A.01, subdivisions 2 and 
66.18 	3.
66.19 		Subd. 4.Specifications. (a) The uniform explanation of benefits document shall be 
66.20 	provided by use of a paper document conforming to the specifications in this section or its 
66.21 	electronic equivalent under paragraph (b).
66.22 	(b) Group purchasers may make the uniform explanation of benefits available in a version 
66.23 	that can be accessed by health care patients electronically if:
66.24 	(1) the group purchaser making the uniform explanation of benefits available 
66.25 	electronically provides health care patients the ability to choose whether to receive paper, 
66.26 	electronic, or both paper and electronic versions of their uniform explanation of benefits;
66.27 	(2) the group purchaser provides clear, readily accessible information and instructions 
66.28 	for the patient to communicate their choice; and
66.29 	(3) health care patients not responding to the opportunity to make a choice will receive 
66.30 	at a minimum a paper uniform explanation of benefits.
66.31 	(c) The commissioner, after consulting with the Administrative Uniformity Committee, 
66.32 	shall specify the data elements and definitions for the paper uniform explanation of benefits 
66.33 	document. The commissioner and the Administrative Uniformity Committee must consult 
67.1 	with the Minnesota Dental Association and Delta Dental Plan of Minnesota before requiring 
67.2 	under this section the use of a paper document for the uniform explanation of benefits 
67.3 	document or the uniform claim payment/advice transaction for dental care services. Any 
67.4 	electronic version of the uniform explanation of benefits must use the same data elements 
67.5 	and definitions as the paper uniform explanation of benefits.
67.6 		Subd. 5.Effective date. The requirements in subdivisions 1 and 2 are effective June 30, 
67.7 	2007. The requirements in subdivisions 1 and 2 apply regardless of when the health care 
67.8 	service was provided to the patient.

67.9 	Sec. 6. Minnesota Statutes 2024, section 62J.84, subdivision 2, is amended to read:
67.10 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
67.11 	have the meanings given.
67.12 	(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics 
67.13 	license application approved under United States Code, title 42, section 262(K)(3).
67.14 	(c) "Brand name drug" means a drug that is produced or distributed pursuant to:
67.15 	(1) a new drug application approved under United States Code, title 21, section 355(c), 
67.16 	except for a generic drug as defined under Code of Federal Regulations, title 42, section 
67.17 	447.502; or
67.18 	(2) a biologics license application approved under United States Code, title 42, section 
67.19 	262(a)(c).
67.20 	(d) "Commissioner" means the commissioner of health.
67.21 	(e) "Generic drug" means a drug that is marketed or distributed pursuant to:
67.22 	(1) an abbreviated new drug application approved under United States Code, title 21, 
67.23 	section 355(j);
67.24 	(2) an authorized generic as defined under Code of Federal Regulations, title 42, section 
67.25 	447.502; or
67.26 	(3) a drug that entered the market the year before 1962 and was not originally marketed 
67.27 	under a new drug application.
67.28 	(f) "Manufacturer" means a drug manufacturer licensed under section 151.252.
67.29 	(g) "New prescription drug" or "new drug" means a prescription drug approved for 
67.30 	marketing by the United States Food and Drug Administration (FDA) for which no previous 
67.31 	wholesale acquisition cost has been established for comparison.
68.1 	(h) "Patient assistance program" means a program that a manufacturer offers to the public 
68.2 	in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs 
68.3 	by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other 
68.4 	means.
68.5 	(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision 
68.6 	8.
68.7 	(j) "Price" means the wholesale acquisition cost as defined in United States Code, title 
68.8 	42, section 1395w-3a(c)(6)(B).
68.9 	(k) "30-day supply" means the total daily dosage units of a prescription drug 
68.10 	recommended by the prescribing label approved by the FDA for 30 days. If the 
68.11 	FDA-approved prescribing label includes more than one recommended daily dosage, the 
68.12 	30-day supply is based on the maximum recommended daily dosage on the FDA-approved 
68.13 	prescribing label.
68.14 	(l) "Course of treatment" means the total dosage of a single prescription for a prescription 
68.15 	drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing 
68.16 	label includes more than one recommended dosage for a single course of treatment, the 
68.17 	course of treatment is the maximum recommended dosage on the FDA-approved prescribing 
68.18 	label.
68.19 	(m) "Drug product family" means a group of one or more prescription drugs that share 
68.20 	a unique generic drug description or nontrade name and dosage form.
68.21 	(n) "Individual salable unit" means the smallest container of product introduced into 
68.22 	commerce by the manufacturer or repackager that is intended by the manufacturer or 
68.23 	repackager for individual sale to a dispenser.
68.24 	(o) (n) "National drug code" means the three-segment code maintained by the federal 
68.25 	Food and Drug Administration that includes a labeler code, a product code, and a package 
68.26 	code for a drug product and that has been converted to an 11-digit format consisting of five 
68.27 	digits in the first segment, four digits in the second segment, and two digits in the third 
68.28 	segment. A three-segment code shall be considered converted to an 11-digit format when, 
68.29 	as necessary, at least one "0" has been added to the front of each segment containing less 
68.30 	than the specified number of digits such that each segment contains the specified number 
68.31 	of digits.
69.1 	(p) (o) "Pharmacy" or "pharmacy provider" means a community/outpatient pharmacy 
69.2 	as defined in Minnesota Rules, part 6800.0100, subpart 2, that is also licensed as a pharmacy 
69.3 	by the Board of Pharmacy under section 151.19.
69.4 	(q) (p) "Pharmacy benefit manager" or "PBM" means an entity licensed to act as a 
69.5 	pharmacy benefit manager under section 62W.03.
69.6 	(r) (q) "Pricing unit" means the smallest dispensable amount of a prescription drug 
69.7 	product that could be dispensed or administered.
69.8 	(s) (r) "Rebate" means a discount, chargeback, or other price concession that affects the 
69.9 	price of a prescription drug product, regardless of whether conferred through regular 
69.10 	aggregate payments, on a claim-by-claim basis at the point of sale, as part of retrospective 
69.11 	financial reconciliations, including reconciliations that also reflect other contractual 
69.12 	arrangements, or by any other method. "Rebate" does not mean a bona fide service fee as 
69.13 	defined in Code of Federal Regulations, title 42, section 447.502.
69.14 	(t) (s) "Reporting entity" means any manufacturer, pharmacy, pharmacy benefit manager, 
69.15 	wholesale drug distributor, or any other entity required to submit data under this section.
69.16 	(u) (t) "Wholesale drug distributor" or "wholesaler" means an entity that:
69.17 	(1) is licensed to act as a wholesale drug distributor under section 151.47; and.
69.18 	(2) distributes prescription drugs, for which it is not the manufacturer, to persons or 
69.19 	entities, or both, other than a consumer or patient in the state.

69.20 	Sec. 7. Minnesota Statutes 2024, section 62J.84, subdivision 3, is amended to read:
69.21 		Subd. 3.Prescription drug price increases reporting. (a) Beginning January 1, 2022, 
69.22 	a drug manufacturer must submit to the commissioner the information described in paragraph 
69.23 	(b) for each prescription drug for which the price was $100 or greater for a 30-day supply 
69.24 	or for a course of treatment lasting less than 30 days and:
69.25 	(1) for brand name drugs where there is an increase of ten percent or greater in the price 
69.26 	over the previous 12-month period or an increase of 16 percent or greater in the price over 
69.27 	the previous 24-month period; and
69.28 	(2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in 
69.29 	the price over the previous 12-month period.
69.30 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
69.31 	the commissioner no later than 60 days after the price increase goes into effect, in the form 
69.32 	and manner prescribed by the commissioner, the following information, if applicable:
70.1 	(1) the description and price of the drug and the net increase, expressed as a percentage, 
70.2 	with the following listed separately:
70.3 	(i) the national drug code;
70.4 	(ii) the product name;
70.5 	(iii) the dosage form;
70.6 	(iv) the strength; and
70.7 	(v) the package size;
70.8 	(2) the factors that contributed to the price increase;
70.9 	(3) the name of any generic version of the prescription drug available on the market;
70.10 	(4) the year the prescription drug was introduced for sale in the United States;
70.11 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
70.12 	the United States and the price of the drug on the last day of each of the five calendar years 
70.13 	preceding the price increase;
70.14 	(5) (6) the direct costs incurred during the previous 12-month period by the manufacturer 
70.15 	that are associated with the prescription drug, listed separately:
70.16 	(i) to manufacture the prescription drug;
70.17 	(ii) to market the prescription drug, including advertising costs; and
70.18 	(iii) to distribute the prescription drug;
70.19 	(7) the number of units of the prescription drug sold during the previous 12-month period;
70.20 	(6) (8) the total sales revenue for the prescription drug during the previous 12-month 
70.21 	period;
70.22 	(9) the total rebate payable amount accrued for the prescription drug during the previous 
70.23 	12-month period;
70.24 	(7) (10) the manufacturer's net profit attributable to the prescription drug during the 
70.25 	previous 12-month period;
70.26 	(8) (11) the total amount of financial assistance the manufacturer has provided through 
70.27 	patient prescription assistance programs during the previous 12-month period, if applicable;
70.28 	(9) (12) any agreement between a manufacturer and another entity contingent upon any 
70.29 	delay in offering to market a generic version of the prescription drug;
71.1 	(10) (13) the patent expiration date of the prescription drug if it is under patent;
71.2 	(11) (14) the name and location of the company that manufactured the drug;
71.3 	(12) (15) if a brand name prescription drug, the highest price paid for the prescription 
71.4 	drug during the previous calendar year in the ten countries, excluding the United States, 
71.5 	that charged the highest single price for the prescription drug; and
71.6 	(13) (16) if the prescription drug was acquired by the manufacturer during the previous 
71.7 	12-month period, all of the following information:
71.8 	(i) price at acquisition;
71.9 	(ii) price in the calendar year prior to acquisition;
71.10 	(iii) name of the company from which the drug was acquired;
71.11 	(iv) date of acquisition; and
71.12 	(v) acquisition price.
71.13 	(c) The manufacturer may submit any documentation necessary to support the information 
71.14 	reported under this subdivision.

71.15 	Sec. 8. Minnesota Statutes 2024, section 62J.84, subdivision 6, is amended to read:
71.16 		Subd. 6.Public posting of prescription drug price information. (a) The commissioner 
71.17 	shall post on the department's website, or may contract with a private entity or consortium 
71.18 	that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the 
71.19 	following information:
71.20 	(1) a list of the prescription drugs reported under subdivisions 3, 4, and 11 to 14 and the 
71.21 	manufacturers of those prescription drugs; and
71.22 	(2) a list of reporting entities that reported prescription drug price information under 
71.23 	subdivisions 3, 4, and 11 to 14; and
71.24 	(2) (3) information reported to the commissioner under subdivisions 3, 4, and 11 to 14, 
71.25 	aggregated on a per-drug basis in a manner that does not allow the identification of a reporting 
71.26 	entity that is not the manufacturer of the drug.
71.27 	(b) The information must be published in an easy-to-read format and in a manner that 
71.28 	identifies the information that is disclosed on a per-drug basis and must not be aggregated 
71.29 	in a manner that prevents the identification of the prescription drug.
72.1 	(c) The commissioner shall not post to the department's website or a private entity 
72.2 	contracting with the commissioner shall not post any information described in this section 
72.3 	if the information is not public data under section 13.02, subdivision 8a; or is trade secret 
72.4 	information under section 13.37, subdivision 1, paragraph (b); or is trade secret information 
72.5 	pursuant to the Defend Trade Secrets Act of 2016, United States Code, title 18, section 
72.6 	1836, as amended. If a reporting entity believes information should be withheld from public 
72.7 	disclosure pursuant to this paragraph, the reporting entity must clearly and specifically 
72.8 	identify that information and describe the legal basis in writing when the reporting entity 
72.9 	submits the information under this section. If the commissioner disagrees with the reporting 
72.10 	entity's request to withhold information from public disclosure, the commissioner shall 
72.11 	provide the reporting entity written notice that the information will be publicly posted 30 
72.12 	days after the date of the notice.
72.13 	(d) If the commissioner withholds any information from public disclosure pursuant to 
72.14 	this subdivision, the commissioner shall post to the department's website a report describing 
72.15 	the nature of the information and the commissioner's basis for withholding the information 
72.16 	from disclosure.
72.17 	(e) To the extent the information required to be posted under this subdivision is collected 
72.18 	and made available to the public by another state, by the University of Minnesota, or through 
72.19 	an online drug pricing reference and analytical tool, the commissioner may reference the 
72.20 	availability of this drug price data from another source including, within existing 
72.21 	appropriations, creating the ability of the public to access the data from the source for 
72.22 	purposes of meeting the reporting requirements of this subdivision.

72.23 	Sec. 9. Minnesota Statutes 2024, section 62J.84, subdivision 10, is amended to read:
72.24 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
72.25 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
72.26 	department's website a list of prescription drugs that the commissioner determines to represent 
72.27 	a substantial public interest and for which the commissioner intends to request data under 
72.28 	subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion 
72.29 	of prescription drugs on any information the commissioner determines is relevant to providing 
72.30 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
72.31 	the state, and the commissioner shall consider drug product families that include prescription 
72.32 	drugs:
72.33 	(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;
73.1 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
73.2 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
73.3 	are available; or
73.4 	(3) that are identified by members of the public during a public comment process.
73.5 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
73.6 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
73.7 	department of:
73.8 	(1) the requirement to report under subdivisions 11 to 14.; and
73.9 	(2) the reporting period for which data must be provided.
73.10 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
73.11 	substantial public interest in any one notice.
73.12 	(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14, 
73.13 	including section 14.386, in implementing this subdivision.

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

73.15 	Sec. 10. Minnesota Statutes 2024, section 62J.84, subdivision 11, is amended to read:
73.16 		Subd. 11.Manufacturer prescription drug substantial public interest reporting. (a) 
73.17 	Beginning January 1, 2024, a manufacturer must submit to the commissioner the information 
73.18 	described in paragraph (b) for any prescription drug:
73.19 	(1) included in a notification to report issued to the manufacturer by the department 
73.20 	under subdivision 10;
73.21 	(2) which the manufacturer manufactures or repackages;
73.22 	(3) for which the manufacturer sets the wholesale acquisition cost; and
73.23 	(4) for which the manufacturer has not submitted data under subdivision 3 during the 
73.24 	120-day period prior to the date of the notification to report.
73.25 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
73.26 	the commissioner no later than 60 days after the date of the notification to report, in the 
73.27 	form and manner prescribed by the commissioner, the following information, if applicable:
73.28 	(1) a description of the drug with the following listed separately:
73.29 	(i) the national drug code;
73.30 	(ii) the product name;
74.1 	(iii) the dosage form;
74.2 	(iv) the strength; and
74.3 	(v) the package size;
74.4 	(2) the price of the drug product on the later of:
74.5 	(i) the day one year prior to the date of the notification to report;
74.6 	(ii) the introduced to market date; or
74.7 	(iii) the acquisition date;
74.8 	(3) the price of the drug product on the date of the notification to report;
74.9 	(4) the year the prescription drug was introduced for sale in the United States;
74.10 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
74.11 	the United States and the price of the drug on the last day of each of the five calendar years 
74.12 	preceding the date of the notification to report;
74.13 	(5) (6) the direct costs incurred during the 12-month period prior to the date of reporting 
74.14 	period specified in the notification to report by the manufacturers that are associated with 
74.15 	the prescription drug, listed separately:
74.16 	(i) to manufacture the prescription drug;
74.17 	(ii) to market the prescription drug, including advertising costs; and
74.18 	(iii) to distribute the prescription drug;
74.19 	(6) (7) the number of units of the prescription drug sold during the 12-month period 
74.20 	prior to the date of reporting period specified in the notification to report;
74.21 	(7) (8) the total sales revenue for the prescription drug during the 12-month period prior 
74.22 	to the date of reporting period specified in the notification to report;
74.23 	(8) (9) the total rebate payable amount accrued for the prescription drug during the 
74.24 	12-month period prior to the date of reporting period specified in the notification to report;
74.25 	(9) (10) the manufacturer's net profit attributable to the prescription drug during the 
74.26 	12-month period prior to the date of reporting period specified in the notification to report;
74.27 	(10) (11) the total amount of financial assistance the manufacturer has provided through 
74.28 	patient prescription assistance programs during the 12-month period prior to the date of
74.29 	reporting period specified in the notification to report, if applicable;
75.1 	(11) (12) any agreement between a manufacturer and another entity contingent upon 
75.2 	any delay in offering to market a generic version of the prescription drug;
75.3 	(12) (13) the patent expiration date of the prescription drug if the prescription drug is 
75.4 	under patent;
75.5 	(13) (14) the name and location of the company that manufactured the drug;
75.6 	(14) (15) if the prescription drug is a brand name prescription drug, the ten countries 
75.7 	other than the United States that paid the highest prices for the prescription drug during the 
75.8 	previous calendar year and their prices; and
75.9 	(15) (16) if the prescription drug was acquired by the manufacturer within a 12-month 
75.10 	period prior to the date of the reporting period specified in the notification to report, all of 
75.11 	the following information:
75.12 	(i) the price at acquisition;
75.13 	(ii) the price in the calendar year prior to acquisition;
75.14 	(iii) the name of the company from which the drug was acquired;
75.15 	(iv) the date of acquisition; and
75.16 	(v) the acquisition price.
75.17 	(c) The manufacturer may submit any documentation necessary to support the information 
75.18 	reported under this subdivision.

75.19 	Sec. 11. Minnesota Statutes 2024, section 62J.84, subdivision 12, is amended to read:
75.20 		Subd. 12.Pharmacy prescription drug substantial public interest reporting. (a) 
75.21 	Beginning January 1, 2024, a pharmacy must submit to the commissioner the information 
75.22 	described in paragraph (b) for any prescription drug:
75.23 	(1) included in a notification to report issued to the pharmacy by the department under 
75.24 	subdivision 10.; and
75.25 	(2) that the pharmacy dispensed in Minnesota or mailed to a Minnesota address.
75.26 	(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the 
75.27 	commissioner no later than 60 days after the date of the notification to report, in the form 
75.28 	and manner prescribed by the commissioner, the following information, if applicable:
75.29 	(1) a description of the drug with the following listed separately:
75.30 	(i) the national drug code;
76.1 	(ii) the product name;
76.2 	(iii) the dosage form;
76.3 	(iv) the strength; and
76.4 	(v) the package size;
76.5 	(2) the number of units of the drug acquired during the 12-month period prior to the date 
76.6 	of reporting period specified in the notification to report;
76.7 	(3) the total spent before rebates by the pharmacy to acquire the drug during the 12-month 
76.8 	period prior to the date of reporting period specified in the notification to report;
76.9 	(4) the total rebate receivable amount accrued by the pharmacy for the drug during the 
76.10 	12-month period prior to the date of reporting period specified in the notification to report;
76.11 	(5) the number of pricing units of the drug dispensed by the pharmacy during the 
76.12 	12-month period prior to the date of reporting period specified in the notification to report;
76.13 	(6) the total payment receivable by the pharmacy for dispensing the drug including 
76.14 	ingredient cost, dispensing fee, and administrative fees during the 12-month period prior 
76.15 	to the date of reporting period specified in the notification to report;
76.16 	(7) the total rebate payable amount accrued by the pharmacy for the drug during the 
76.17 	12-month period prior to the date of reporting period specified in the notification to report; 
76.18 	and
76.19 	(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed 
76.20 	where no claim was submitted to a health care service plan or health insurer during the 
76.21 	12-month period prior to the date of reporting period specified in the notification to report.
76.22 	(c) The pharmacy may submit any documentation necessary to support the information 
76.23 	reported under this subdivision.
76.24 	(d) The commissioner may grant extensions, exemptions, or both to compliance with 
76.25 	the requirements of paragraphs (a) and (b) by small or independent pharmacies, if compliance 
76.26 	with paragraphs (a) and (b) would represent a hardship or undue burden to the pharmacy. 
76.27 	The commissioner may establish procedures for small or independent pharmacies to request 
76.28 	extensions or exemptions under this paragraph.

77.1 	Sec. 12. Minnesota Statutes 2024, section 62J.84, subdivision 13, is amended to read:
77.2 		Subd. 13.PBM prescription drug substantial public interest reporting. (a) Beginning 
77.3 	January 1, 2024, a PBM must submit to the commissioner the information described in 
77.4 	paragraph (b) for any prescription drug:
77.5 	(1) included in a notification to report issued to the PBM by the department under 
77.6 	subdivision 10.; and
77.7 	(2) for which the PBM fulfilled pharmacy benefit management duties for Minnesota 
77.8 	residents.
77.9 	(b) For each of the drugs described in paragraph (a), the PBM shall submit to the 
77.10 	commissioner no later than 60 days after the date of the notification to report, in the form 
77.11 	and manner prescribed by the commissioner, the following information, if applicable:
77.12 	(1) a description of the drug with the following listed separately:
77.13 	(i) the national drug code;
77.14 	(ii) the product name;
77.15 	(iii) the dosage form;
77.16 	(iv) the strength; and
77.17 	(v) the package size;
77.18 	(2) the number of pricing units of the drug product filled for which the PBM administered 
77.19 	claims during the 12-month period prior to the date of reporting period specified in the 
77.20 	notification to report;
77.21 	(3) the total reimbursement amount accrued and payable to pharmacies for pricing units 
77.22 	of the drug product filled for which the PBM administered claims during the 12-month 
77.23 	period prior to the date of reporting period specified in the notification to report;
77.24 	(4) the total reimbursement or administrative fee amount, or both, accrued and receivable 
77.25 	from payers for pricing units of the drug product filled for which the PBM administered 
77.26 	claims during the 12-month period prior to the date of reporting period specified in the 
77.27 	notification to report;
77.28 	(5) the total administrative fee amount accrued and receivable from payers for pricing 
77.29 	units of the drug product filled during the reporting period specified in the notification to 
77.30 	report;
78.1 	(5) (6) the total rebate receivable amount accrued by the PBM for the drug product 
78.2 	during the 12-month period prior to the date of reporting period specified in the notification 
78.3 	to report; and
78.4 	(6) (7) the total rebate payable amount accrued by the PBM for the drug product during 
78.5 	the 12-month period prior to the date of reporting period specified in the notification to 
78.6 	report.
78.7 	(c) The PBM may submit any documentation necessary to support the information 
78.8 	reported under this subdivision.

78.9 	Sec. 13. Minnesota Statutes 2024, section 62J.84, subdivision 14, is amended to read:
78.10 		Subd. 14.Wholesale drug distributor prescription drug substantial public interest 
78.11 	reporting. (a) Beginning January 1, 2024, a wholesale drug distributor that distributes 
78.12 	prescription drugs, for which it is not the manufacturer, to persons or entities, or both, other 
78.13 	than a consumer or patient in the state, must submit to the commissioner the information 
78.14 	described in paragraph (b) for any prescription drug:
78.15 	(1) included in a notification to report issued to the wholesale drug distributor by the 
78.16 	department under subdivision 10.; and
78.17 	(2) that the wholesale drug distributor distributed within or into Minnesota.
78.18 	(b) For each of the drugs described in paragraph (a), the wholesale drug distributor shall 
78.19 	submit to the commissioner no later than 60 days after the date of the notification to report, 
78.20 	in the form and manner prescribed by the commissioner, the following information, if 
78.21 	applicable:
78.22 	(1) a description of the drug with the following listed separately:
78.23 	(i) the national drug code;
78.24 	(ii) the product name;
78.25 	(iii) the dosage form;
78.26 	(iv) the strength; and
78.27 	(v) the package size;
78.28 	(2) the number of units of the drug product acquired by the wholesale drug distributor 
78.29 	during the 12-month period prior to the date of reporting period specified in the notification 
78.30 	to report;
79.1 	(3) the total spent before rebates by the wholesale drug distributor to acquire the drug 
79.2 	product during the 12-month period prior to the date of reporting period specified in the 
79.3 	notification to report;
79.4 	(4) the total rebate receivable amount accrued by the wholesale drug distributor for the 
79.5 	drug product during the 12-month period prior to the date of reporting period specified in
79.6 	the notification to report;
79.7 	(5) the number of units of the drug product sold by the wholesale drug distributor during 
79.8 	the 12-month period prior to the date of reporting period specified in the notification to 
79.9 	report;
79.10 	(6) gross revenue from sales in the United States generated by the wholesale drug 
79.11 	distributor for this the drug product during the 12-month period prior to the date of reporting 
79.12 	period specified in the notification to report; and
79.13 	(7) total rebate payable amount accrued by the wholesale drug distributor for the drug 
79.14 	product during the 12-month period prior to the date of reporting period specified in the 
79.15 	notification to report.
79.16 	(c) The wholesale drug distributor may submit any documentation necessary to support 
79.17 	the information reported under this subdivision.

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

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

79.29 	Sec. 16. Minnesota Statutes 2024, section 62K.10, subdivision 5, is amended to read:
79.30 		Subd. 5.Waiver. (a) A health carrier may apply to the commissioner of health for a 
79.31 	waiver of the requirements in subdivision 2 or 3 if it is unable to meet the statutory 
80.1 	requirements. A waiver application must be submitted on a form provided by the 
80.2 	commissioner, must be accompanied by an application fee of $500 for each application to 
80.3 	waive the requirements in subdivision 2 or 3 for one or more provider types per county, and 
80.4 	must:
80.5 	(1) demonstrate with specific data that the requirement of subdivision 2 or 3 is not 
80.6 	feasible in a particular service area or part of a service area; and
80.7 	(2) include specific information as to the steps that were and will be taken to address 
80.8 	the network inadequacy, and, for steps that will be taken prospectively to address network 
80.9 	inadequacy, the time frame within which those steps will be taken.
80.10 	(b) The commissioner shall establish guidelines for evaluating waiver applications, 
80.11 	standards governing approval or denial of a waiver application, and standards for steps that 
80.12 	health carriers must take to address the network inadequacy and allow the health carrier to 
80.13 	meet network adequacy requirements within a reasonable time period. The commissioner 
80.14 	shall review each waiver application using these guidelines and standards and shall approve 
80.15 	a waiver application only if:
80.16 	(1) the standards for approval established by the commissioner are satisfied; and
80.17 	(2) the steps that were and will be taken to address the network inadequacy and the time 
80.18 	frame for taking these steps satisfy the standards established by the commissioner.
80.19 	(c) If, in its waiver application, a health carrier demonstrates to the commissioner that 
80.20 	there are no providers of a specific type or specialty in a county, the commissioner may 
80.21 	approve a waiver in which the health carrier is allowed to address network inadequacy in 
80.22 	that county by providing for patient access to providers of that type or specialty via telehealth, 
80.23 	as defined in section 62A.673, subdivision 2.
80.24 	(d) The waiver shall automatically expire after one year. Upon or prior to expiration of 
80.25 	a waiver, a health carrier unable to meet the requirements in subdivision 2 or 3 must submit 
80.26 	a new waiver application under paragraph (a) and must also submit evidence of steps the 
80.27 	carrier took to address the network inadequacy. When the commissioner reviews a waiver 
80.28 	application for a network adequacy requirement which has been waived for the carrier for 
80.29 	the most recent one-year period, the commissioner shall also examine the steps the carrier 
80.30 	took during that one-year period to address network inadequacy, and shall only approve a 
80.31 	subsequent waiver application that satisfies the requirements in paragraph (b), demonstrates 
80.32 	that the carrier took the steps it proposed to address network inadequacy, and explains why 
80.33 	the carrier continues to be unable to satisfy the requirements in subdivision 2 or 3.
81.1 	(e) Application fees collected under this subdivision shall be deposited in the state 
81.2 	government special revenue fund in the state treasury.

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

81.10 	Sec. 18. Minnesota Statutes 2024, section 103I.005, subdivision 17b, is amended to read:
81.11 		Subd. 17b.Temporary boring. "Temporary boring" means an excavation that is 15 
81.12 	feet or more in depth, is sealed within 72 hours of the time of construction, and is drilled, 
81.13 	cored, washed, driven, dug, jetted, or otherwise constructed to:
81.14 	(1) conduct physical, chemical, or biological testing of groundwater, including 
81.15 	groundwater quality monitoring;
81.16 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
81.17 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
81.18 	resistance;
81.19 	(3) measure groundwater levels, including use of a piezometer; and or
81.20 	(4) determine groundwater flow direction or velocity.

81.21 	Sec. 19. Minnesota Statutes 2024, section 103I.101, subdivision 2, is amended to read:
81.22 		Subd. 2.Duties. The commissioner shall:
81.23 	(1) regulate the drilling, construction, modification, repair, and sealing of wells and 
81.24 	borings;
81.25 	(2) examine and license:
81.26 	(i) well contractors;
81.27 	(ii) persons constructing, repairing, and sealing bored geothermal heat exchangers;
81.28 	(iii) persons modifying or repairing well casings above the pitless unit or adaptor, well 
81.29 	screens, well diameters, and installing well pumps or pumping equipment;
82.1 	(iv) persons constructing, repairing, and sealing dewatering wells;
82.2 	(v) persons sealing wells or borings; and
82.3 	(vi) persons excavating or drilling holes for the installation of elevator borings; and
82.4 	(vii) persons installing, removing, or maintaining groundwater thermal exchange devices 
82.5 	and submerged closed loop heat exchangers;
82.6 	(3) examine and license environmental well contractors;
82.7 	(4) license explorers engaged in exploratory boring and examine individuals who 
82.8 	supervise or oversee exploratory boring;
82.9 	(5) after consultation with the commissioner of natural resources and the Pollution 
82.10 	Control Agency, establish standards for the design, location, construction, repair, and sealing 
82.11 	of wells and borings within the state; and
82.12 	(6) issue permits for wells, groundwater thermal devices, bored geothermal heat 
82.13 	exchangers, installation of submerged closed loop heat exchanger systems, and elevator 
82.14 	borings.

82.15 	Sec. 20. Minnesota Statutes 2024, section 103I.101, subdivision 5, is amended to read:
82.16 		Subd. 5.Commissioner to adopt rules. The commissioner shall adopt rules including:
82.17 	(1) issuance of licenses for:
82.18 	(i) qualified well contractors;
82.19 	(ii) persons constructing, repairing, and sealing dewatering wells;
82.20 	(iii) persons sealing wells or borings;
82.21 	(iv) persons installing, modifying, or repairing well casings, well screens, well diameters, 
82.22 	and well pumps or pumping equipment;
82.23 	(v) persons constructing, repairing, and sealing bored geothermal heat exchangers;
82.24 	(vi) persons constructing, repairing, and sealing elevator borings; and
82.25 	(vii) persons constructing, repairing, and sealing environmental wells; and
82.26 	(viii) persons installing, removing, or maintaining groundwater thermal exchange devices 
82.27 	and submerged closed loop heat exchangers;
82.28 	(2) establishment of conditions for examination and review of applications for license 
82.29 	and certification;
83.1 	(3) establishment of conditions for revocation and suspension of license and certification;
83.2 	(4) establishment of minimum standards for design, location, construction, repair, and 
83.3 	sealing of wells and borings to implement the purpose and intent of this chapter;
83.4 	(5) establishment of a system for reporting on wells and borings drilled and sealed;
83.5 	(6) establishment of standards for the construction, maintenance, sealing, and water 
83.6 	quality monitoring of wells in areas of known or suspected contamination;
83.7 	(7) establishment of wellhead protection measures for wells serving public water supplies;
83.8 	(8) establishment of procedures to coordinate collection of well and boring data with 
83.9 	other state and local governmental agencies;
83.10 	(9) establishment of criteria and procedures for submission of well and boring logs, 
83.11 	formation samples or well or boring cuttings, water samples, or other special information 
83.12 	required for and water resource mapping; and
83.13 	(10) establishment of minimum standards for design, location, construction, maintenance, 
83.14 	repair, sealing, safety, and resource conservation related to borings, including exploratory 
83.15 	borings as defined in section 103I.005, subdivision 9.

83.16 	Sec. 21. Minnesota Statutes 2024, section 103I.101, is amended by adding a subdivision 
83.17 	to read:
83.18 		Subd. 7.Inspection. At a minimum, the commissioner of health shall inspect at least 
83.19 	25 percent of well construction notifications each year under this section.

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

83.26 	Sec. 23. Minnesota Statutes 2024, section 138.912, subdivision 2, is amended to read:
83.27 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
83.28 	(b) "Healthy eating, here at home" means a program administered by the Minnesota 
83.29 	Humanities Center Department of Health to provide incentives for low-income Minnesotans 
84.1 	to use SNAP or SUN bucks (Summer EBT) benefits for healthy purchases at Minnesota-based 
84.2 	farmers' markets.
84.3 	(c) "Healthy purchases" means SNAP-eligible foods.
84.4 	(d) "Minnesota-based farmers' market" means a physical market as defined in section 
84.5 	28A.151, subdivision 1, paragraph (b), and also includes mobile markets and direct-farmer 
84.6 	sales, including through a community-supported agriculture model.
84.7 	(e) "Voucher" means a physical or electronic credit.
84.8 	(f) "Eligible household" means an individual or family that is determined to be a recipient 
84.9 	of SNAP or SUN bucks (Summer EBT).

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

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

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

85.1 	Sec. 27. Minnesota Statutes 2024, section 144.0758, subdivision 3, is amended to read:
85.2 		Subd. 3.Eligible grantees. (a) Organizations eligible to receive grant funding under 
85.3 	this section are Minnesota's Tribal Nations in accordance with paragraph (b) and urban 
85.4 	American Indian community-based organizations in accordance with paragraph (c).
85.5 	(b) Minnesota's Tribal Nations may choose to receive funding under this section according 
85.6 	to a noncompetitive funding formula specified by the commissioner.
85.7 	(c) Urban American Indian community-based organizations are eligible to apply for 
85.8 	funding under this section by submitting a proposal for consideration by the commissioner.

85.9 	Sec. 28. Minnesota Statutes 2024, section 144.50, is amended by adding a subdivision to 
85.10 	read:
85.11 		Subd. 8.Controlling person. (a) "Controlling person" includes the following individuals, 
85.12 	if applicable, as deemed appropriate by the hospital:
85.13 	(1) any officer of the organization;
85.14 	(2) any hospital administrator; and
85.15 	(3) any managerial official.
85.16 	(b) Controlling person does not include:
85.17 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
85.18 	loan and thrift company, investment banking firm, or insurance company unless the entity 
85.19 	directly or through a subsidiary operates a hospital;
85.20 	(2) government and government-sponsored entities such as the United States Department 
85.21 	of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the 
85.22 	Minnesota Housing Finance Agency which provide loans, financing, and insurance products 
85.23 	for housing sites;
85.24 	(3) an individual who is a state or federal official, a state or federal employee, or a 
85.25 	member or employee of the governing body of a political subdivision of the state or federal 
85.26 	government that operates one or more hospitals, unless the individual is also an officer, 
85.27 	owner, or managerial official of the hospital, receives any remuneration from a hospital, or 
85.28 	who is a controlling person not otherwise excluded in this subdivision;
85.29 	(4) a natural person who is a member of a tax-exempt organization under section 290.05, 
85.30 	subdivision 2, unless the individual is also a controlling person not otherwise excluded in 
85.31 	this subdivision; and
86.1 	(5) a natural person who owns less than five percent of the outstanding common shares 
86.2 	of a corporation:
86.3 	(i) whose securities are exempt by virtue of section 80A.45, clause (6); or
86.4 	(ii) whose transactions are exempt by virtue of section 80A.46, clause (7).

86.5 	Sec. 29. Minnesota Statutes 2024, section 144.555, subdivision 1a, is amended to read:
86.6 		Subd. 1a.Notice of closing, curtailing operations, relocating services, or ceasing to 
86.7 	offer certain services; hospitals. (a) The controlling persons of a hospital licensed under 
86.8 	sections 144.50 to 144.56 or a hospital campus must notify the commissioner of health, the 
86.9 	public, and others at least 182 days before the hospital or hospital campus voluntarily plans 
86.10 	to implement one of the scheduled actions listed in paragraph (b), unless the controlling 
86.11 	persons can demonstrate to the commissioner that meeting the advanced notice requirement 
86.12 	is not feasible and the commissioner approves a shorter advanced notice.
86.13 	(b) The following scheduled actions require advanced notice under paragraph (a):
86.14 	(1) ceasing operations;
86.15 	(2) curtailing operations to the extent that patients inpatients or emergency department 
86.16 	services must be relocated;
86.17 	(3) relocating the provision of inpatient health services or emergency department services
86.18 	to another hospital or another hospital campus; or
86.19 	(4) ceasing to offer inpatient maternity care and inpatient newborn care services, inpatient
86.20 	intensive care unit services, inpatient mental health services, or inpatient substance use 
86.21 	disorder treatment services.
86.22 	(c) A notice required under this subdivision must comply with the requirements in 
86.23 	subdivision 1d.
86.24 	(d) The commissioner shall cooperate with the controlling persons and advise them 
86.25 	about relocating the patients.
86.26 	(e) For purposes of this subdivision, "inpatient" means services that are provided to a 
86.27 	person who has been admitted to a hospital for bed occupancy.

86.28 	Sec. 30. Minnesota Statutes 2024, section 144.555, subdivision 1b, is amended to read:
86.29 		Subd. 1b.Public hearing. Within 30 days after receiving notice under subdivision 1a, 
86.30 	the commissioner shall conduct a public hearing on the scheduled cessation of operations, 
87.1 	curtailment of operations, relocation of health services, or cessation in offering health 
87.2 	services. The commissioner must provide adequate public notice of the hearing in a time 
87.3 	and manner determined by the commissioner. The commissioner must ensure that video 
87.4 	conferencing technology will be used to allow members of the public to view and participate 
87.5 	in the hearing. The controlling persons of the hospital or hospital campus must participate 
87.6 	in the public hearing. The public hearing must be held at a location that is within ten miles 
87.7 	of the hospital or hospital campus and can accommodate anticipated public attendance or 
87.8 	with the commissioner's approval as close as is practicable, and that is provided or arranged 
87.9 	by the hospital or hospital campus. Video conferencing technology must be used to allow 
87.10 	members of the public to view and participate in the hearing. The public hearing must 
87.11 	include:
87.12 	(1) an explanation by the controlling persons of the reasons for ceasing or curtailing 
87.13 	operations, relocating health services, or ceasing to offer any of the listed health services;
87.14 	(2) a description of the actions that controlling persons will take to ensure that residents 
87.15 	in the hospital's or campus's service area have continued access to the health services being 
87.16 	eliminated, curtailed, or relocated;
87.17 	(3) an opportunity for public testimony for at least one hour on the scheduled cessation 
87.18 	or curtailment of operations, relocation of health services, or cessation in offering any of 
87.19 	the listed health services, and on the hospital's or campus's plan to ensure continued access 
87.20 	to those health services being eliminated, curtailed, or relocated; and
87.21 	(4) an opportunity for the controlling persons to respond to questions from interested 
87.22 	persons.

87.23 	Sec. 31. Minnesota Statutes 2024, section 144.608, subdivision 2, is amended to read:
87.24 		Subd. 2.Council administration. (a) The council must meet at least twice a year but 
87.25 	may meet more frequently at the call of the chair, a majority of the council members, or the 
87.26 	commissioner.
87.27 	(b) The terms, compensation, and removal of members of the council are governed by 
87.28 	section 15.059. The council expires June 30, 2025 2035.
87.29 	(c) The council may appoint subcommittees and work groups. Subcommittees shall 
87.30 	consist of council members. Work groups may include noncouncil members. Noncouncil 
87.31 	members shall be compensated for work group activities under section 15.059, subdivision 
87.32 	3, but shall receive expenses only.

88.1 	Sec. 32. Minnesota Statutes 2024, section 144.966, subdivision 2, is amended to read:
88.2 		Subd. 2.Newborn Hearing Screening Advisory Committee. (a) The commissioner 
88.3 	of health shall establish a Newborn Hearing Screening Advisory Committee to advise and 
88.4 	assist the Department of Health; Department of Children, Youth, and Families; and the 
88.5 	Department of Education in:
88.6 	(1) developing protocols and timelines for screening, rescreening, and diagnostic 
88.7 	audiological assessment and early medical, audiological, and educational intervention 
88.8 	services for children who are deaf or hard-of-hearing;
88.9 	(2) designing protocols for tracking children from birth through age three that may have 
88.10 	passed newborn screening but are at risk for delayed or late onset of permanent hearing 
88.11 	loss;
88.12 	(3) designing a technical assistance program to support facilities implementing the 
88.13 	screening program and facilities conducting rescreening and diagnostic audiological 
88.14 	assessment;
88.15 	(4) designing implementation and evaluation of a system of follow-up and tracking; and
88.16 	(5) evaluating program outcomes to increase effectiveness and efficiency and ensure 
88.17 	culturally appropriate services for children with a confirmed hearing loss and their families.
88.18 	(b) The commissioner of health shall appoint at least one member from each of the 
88.19 	following groups with no less than two of the members being deaf or hard-of-hearing:
88.20 	(1) a representative from a consumer organization representing culturally deaf persons;
88.21 	(2) a parent with a child with hearing loss representing a parent organization;
88.22 	(3) a consumer from an organization representing oral communication options;
88.23 	(4) a consumer from an organization representing cued speech communication options;
88.24 	(5) an audiologist who has experience in evaluation and intervention of infants and 
88.25 	young children;
88.26 	(6) a speech-language pathologist who has experience in evaluation and intervention of 
88.27 	infants and young children;
88.28 	(7) two primary care providers who have experience in the care of infants and young 
88.29 	children, one of which shall be a pediatrician;
88.30 	(8) a representative from the early hearing detection intervention teams;
89.1 	(9) a representative from the Department of Education resource center for the deaf and 
89.2 	hard-of-hearing or the representative's designee;
89.3 	(10) a representative of the Commission of the Deaf, DeafBlind and Hard of Hearing;
89.4 	(11) a representative from the Department of Human Services Deaf and Hard-of-Hearing 
89.5 	Services Division;
89.6 	(12) one or more of the Part C coordinators from the Department of Education; the 
89.7 	Department of Health; the Department of Children, Youth, and Families; or the Department 
89.8 	of Human Services or the department's designees;
89.9 	(13) the Department of Health early hearing detection and intervention coordinators;
89.10 	(14) two birth hospital representatives from one rural and one urban hospital;
89.11 	(15) a pediatric geneticist;
89.12 	(16) an otolaryngologist;
89.13 	(17) a representative from the Newborn Screening Advisory Committee under this 
89.14 	subdivision;
89.15 	(18) a representative of the Department of Education regional low-incidence facilitators;
89.16 	(19) a representative from the deaf mentor program; and
89.17 	(20) a representative of the Minnesota State Academy for the Deaf from the Minnesota 
89.18 	State Academies staff.
89.19 	The commissioner must complete the initial appointments required under this subdivision 
89.20 	by September 1, 2007, and the initial appointments under clauses (19) and (20) by September 
89.21 	1, 2019.
89.22 	(c) The Department of Health member shall chair the first meeting of the committee. At 
89.23 	the first meeting, the committee shall elect a chair from its membership. The committee 
89.24 	shall meet at the call of the chair, at least four times a year. The committee shall adopt 
89.25 	written bylaws to govern its activities. The Department of Health shall provide technical 
89.26 	and administrative support services as required by the committee. These services shall 
89.27 	include technical support from individuals qualified to administer infant hearing screening, 
89.28 	rescreening, and diagnostic audiological assessments.
89.29 	Members of the committee shall receive no compensation for their service, but shall be 
89.30 	reimbursed as provided in section 15.059 for expenses incurred as a result of their duties 
89.31 	as members of the committee.
90.1 	(d) By February 15, 2015, and by February 15 of the odd-numbered years after that date, 
90.2 	the commissioner shall report to the chairs and ranking minority members of the legislative 
90.3 	committees with jurisdiction over health and data privacy on the activities of the committee 
90.4 	that have occurred during the past two years.
90.5 	(e) This subdivision expires June 30, 2025.

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

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

90.24 	Sec. 34. [144E.54] AMBULANCE OPERATING DEFICIT GRANT PROGRAM.
90.25 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
90.26 	subdivision have the meanings given.
90.27 	(b) "Capital expenses" means expenses incurred by a licensee for the purchase, 
90.28 	improvement, or maintenance of assets with an expected useful life of greater than five 
90.29 	years that improve the efficiency of provided ambulance services or the capabilities of the 
90.30 	licensee.
91.1 	(c) "Eligible applicant" or "eligible licensee" means any licensee who possessed a license 
91.2 	not excluded under subdivision 4 or 5 in the last completed state fiscal year for which data 
91.3 	was provided to the director, as provided in section 62J.49; who continues to operate that 
91.4 	same nonexcluded license at the time of application; and who provides verifiable evidence 
91.5 	of an operating deficit in the state fiscal year prior to submitting an application.
91.6 	(d) "Government licensee" means any government entity, as defined in section 118A.01, 
91.7 	subdivision 2, including a Tribe, that is a licensee.
91.8 	(e) "Insurance revenue" means revenue from Medicare, medical assistance, private health 
91.9 	insurance, third-party liability insurance, and payments from individuals.
91.10 	(f) "Operating deficit" means the sum of insurance revenue and other revenue is less 
91.11 	than the sum of operational expenses and capital expenses.
91.12 	(g) "Operational expenses" means costs related to the day-to-day operations of an 
91.13 	ambulance service, including but not limited to costs related to personnel, supplies and 
91.14 	equipment, fuel, vehicle maintenance, travel, education, and fundraising.
91.15 	(h) "Other revenue" means any revenue that is not insurance revenue, including but not 
91.16 	limited to grants, tax revenue, donations, fundraisers, or standby fees. Grants awarded under 
91.17 	this section must not be considered revenue.
91.18 		Subd. 2.Program establishment. An ambulance operating deficit grant program is 
91.19 	established to award grants to applicants to address revenue shortfalls creating operating 
91.20 	deficits among eligible applicants.
91.21 		Subd. 3.Account established. An ambulance operating deficit account is created in the 
91.22 	special revenue fund in the state treasury. Earnings, including interest, dividends, and any 
91.23 	other earnings arising from assets of the account, must be credited to the account. The 
91.24 	director shall manage the account.
91.25 		Subd. 4.Licensees providing specialized life support services excluded. Licensees 
91.26 	providing specialized life support services as described in section 144E.101, subdivision 9, 
91.27 	are not eligible for grants under this section.
91.28 		Subd. 5.Other licensees excluded. Licensees with an individual primary service area 
91.29 	that is more than 50 percent within the metropolitan counties listed in section 473.121, 
91.30 	subdivision 4, or the cities of Duluth, Mankato, St. Cloud, or Rochester are not eligible for 
91.31 	grants under this section.
91.32 		Subd. 6.Application process. (a) An eligible licensee may apply to the director, in the 
91.33 	form and manner determined by the director, for a grant under this section.
92.1 	(b) A grant application made by a government licensee must be accompanied by a 
92.2 	resolution of support from the governing body.
92.3 		Subd. 7.Director calculations. The director shall award grants only to applicants who 
92.4 	provide verifiable evidence of an operating deficit in the last completed state fiscal year for 
92.5 	which data were provided to the director. The director may audit the financial data provided 
92.6 	to the director by applicants, as provided in section 62J.49. A grant awarded to an applicant 
92.7 	must not be more than five percent more than any previous grant to the applicant without 
92.8 	special permission from the director.
92.9 		Subd. 8.Grant awards; limitations. (a) Grants awarded under this section to eligible 
92.10 	applicants may be proportionally distributed based on money available. Total amounts 
92.11 	awarded must not exceed the amount in the ambulance operating deficit account.
92.12 	(b) The director shall award grants annually.
92.13 	(c) The director must not award individual grants that exceed the amount of the grantee's 
92.14 	most recent verified operating deficit as reported to the director.
92.15 		Subd. 9.Eligible expenditures. A grantee must spend grant money received under this 
92.16 	section on operational expenses and capital expenses incurred to provide ambulance services.
92.17 		Subd. 10.Report. By February 15, 2026, and annually thereafter, the director must 
92.18 	submit a report to the chairs and ranking minority members of the legislative committees 
92.19 	with jurisdiction over health finance and policy. The report must describe the number and 
92.20 	amount of grants awarded under this section and the uses made of grant money by grantees.

92.21 	Sec. 35. [145.076] INFORMED CONSENT REQUIRED FOR SENSITIVE 
92.22 	EXAMINATIONS.
92.23 		Subdivision 1.Definition. For purposes of this section, "sensitive examination" means 
92.24 	a pelvic, breast, urogenital, or rectal examination.
92.25 		Subd. 2.Informed consent required; exceptions. A health professional, or a student 
92.26 	or resident participating in a course of instruction, clinical training, or a residency program 
92.27 	for a health profession, shall not perform a sensitive examination on an anesthetized or 
92.28 	unconscious patient unless:
92.29 	(1) the patient or the patient's legally authorized representative provided prior, written, 
92.30 	informed consent to the sensitive examination and the sensitive examination is necessary 
92.31 	for preventive, diagnostic, or treatment purposes;
93.1 	(2) the patient or the patient's legally authorized representative provided prior, written, 
93.2 	informed consent to a surgical procedure or diagnostic examination and the sensitive 
93.3 	examination is within the scope of care ordered for that surgical procedure or diagnostic 
93.4 	examination;
93.5 	(3) the patient is unconscious and incapable of providing informed consent and the 
93.6 	sensitive examination is necessary for diagnostic or treatment purposes; or
93.7 	(4) a court ordered a sensitive examination to be performed for purposes of collection 
93.8 	of evidence.
93.9 		Subd. 3.Penalty; ground for disciplinary action. A person who violates this section 
93.10 	is subject to disciplinary action by the health-related licensing board regulating the person.

93.11 	Sec. 36. Minnesota Statutes 2024, section 145.8811, is amended to read:
93.12 	145.8811 MATERNAL AND CHILD HEALTH ADVISORY TASK FORCE
93.13 	COMMITTEE.
93.14 		Subdivision 1.Composition of task force committee. The commissioner shall establish 
93.15 	and appoint a Maternal and Child Health Advisory Task Force Committee consisting of 15 
93.16 	members who will provide equal representation from:
93.17 	(1) professionals with expertise in maternal and child health services;
93.18 	(2) representatives of community health boards as defined in section 145A.02, subdivision 
93.19 	5; and
93.20 	(3) consumer representatives interested in the health of mothers and children.
93.21 	No members shall be employees of the Minnesota Department of Health. Section 15.059
93.22 	governs the Maternal and Child Health Advisory Task Force Committee. Notwithstanding 
93.23 	section 15.059, the Maternal and Child Health Advisory Task Force Committee does not 
93.24 	expire.
93.25 		Subd. 2.Duties. The advisory task force committee shall meet on a regular basis to 
93.26 	perform the following duties:
93.27 	(1) review and report on the health care needs of mothers and children throughout the 
93.28 	state of Minnesota;
93.29 	(2) review and report on the type, frequency, and impact of maternal and child health 
93.30 	care services provided to mothers and children under existing maternal and child health 
93.31 	care programs, including programs administered by the commissioner of health;
94.1 	(3) establish, review, and report to the commissioner a list of program guidelines and 
94.2 	criteria which the advisory task force committee considers essential to providing an effective 
94.3 	maternal and child health care program to low-income populations and high-risk persons 
94.4 	and fulfilling the purposes defined in section 145.88;
94.5 	(4) make recommendations to the commissioner for the use of other federal and state 
94.6 	funds available to meet maternal and child health needs;
94.7 	(5) make recommendations to the commissioner of health on priorities for funding the 
94.8 	following maternal and child health services:
94.9 	(i) prenatal, delivery, and postpartum care;
94.10 	(ii) comprehensive health care for children, especially from birth through five years of 
94.11 	age;
94.12 	(iii) adolescent health services;
94.13 	(iv) family planning services;
94.14 	(v) preventive dental care;
94.15 	(vi) special services for chronically ill and disabled children; and
94.16 	(vii) any other services that promote the health of mothers and children; and
94.17 	(6) establish in consultation with the commissioner statewide outcomes that will improve 
94.18 	the health status of mothers and children.

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

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

94.25 	Sec. 38. Minnesota Statutes 2024, section 145.987, subdivision 1, is amended to read:
94.26 		Subdivision 1.Establishment; composition of advisory council. The health equity 
94.27 	advisory and leadership (HEAL) council consists of 18 members appointed by the 
94.28 	commissioner of health, including but not limited to members who will provide representation 
94.29 	from the following groups:
94.30 	(1) African American and African heritage communities;
95.1 	(2) Asian American and Pacific Islander communities;
95.2 	(3) Latina/o/x communities;
95.3 	(4) American Indian communities and Tribal governments and nations;
95.4 	(5) disability communities;
95.5 	(6) lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities; and
95.6 	(7) representatives who reside outside the seven-county metropolitan area.

95.7 	Sec. 39. Minnesota Statutes 2024, section 145.987, subdivision 2, is amended to read:
95.8 		Subd. 2.Organization and meetings. (a) Terms, compensation, and removal of members 
95.9 	of the advisory council shall be as provided in section 15.059, subdivisions 2 to 4, except 
95.10 	that terms for advisory council members shall be for two years. Members may be reappointed 
95.11 	to serve up to two additional terms. Notwithstanding section 15.059, subdivision 6, the 
95.12 	advisory council shall not expire. The commissioner shall recommend appointments to 
95.13 	replace members vacating their positions in a timely manner, no more than three months 
95.14 	after the advisory council reviews panel recommendations.
95.15 	(b) The commissioner must convene meetings at least quarterly and must provide meeting 
95.16 	space and administrative support to the advisory council. Subcommittees may be convened 
95.17 	as necessary. Advisory council meetings are subject to the Open Meeting Law under chapter 
95.18 	13D.

95.19 	Sec. 40. [148.781] CENTRAL SERVICE TECHNICIAN.
95.20 		Subdivision 1.Application. This section applies to persons who perform the functions 
95.21 	of a central service technician in a health care facility.
95.22 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
95.23 	given:
95.24 	(1) "central service technician" means a person who decontaminates, inspects, assembles, 
95.25 	packages, and sterilizes reusable medical instruments or devices used by a health care 
95.26 	facility;
95.27 	(2) "health care facility" means a hospital or ambulatory surgical center; and
95.28 	(3) "health care practitioner" means an individual regulated by a health-related licensing 
95.29 	board as defined in section 214.01, subdivision 2, or by the commissioner of health under 
95.30 	sections 148.511 to 148.5198, to the extent the individual provides services in a health care 
96.1 	facility and the tasks of a central service technician are within the individual's scope of 
96.2 	practice. Health care practitioner includes an intern, resident, or fellow who performs or 
96.3 	assists with surgery.
96.4 		Subd. 3.Requirements for central service technician. (a) A health care facility shall 
96.5 	employ or otherwise retain the services of a central service technician only if the central 
96.6 	service technician:
96.7 	(1) has successfully passed a nationally accredited examination for central service 
96.8 	technicians and holds and maintains one of the following credentials administered by a 
96.9 	nationally accredited central service technician credentialing organization: a certified 
96.10 	registered central service technician credential, a certified endoscope reprocessor credential, 
96.11 	a certified sterile processing and distribution technician credential, or a certified flexible 
96.12 	endoscope reprocessor credential; or
96.13 	(2) provides evidence that the person was employed by or was retained as a central 
96.14 	service technician by a health care facility on or before December 31, 2027.
96.15 	(b) A central service technician who does not meet the requirements of paragraph (a), 
96.16 	clause (1), shall have 24 months from the date of hire to obtain a certified registered central 
96.17 	service technician credential, a certified endoscope reprocessor credential, a certified sterile 
96.18 	processing and distribution technician credential, or a certified flexible endoscope reprocessor 
96.19 	credential.
96.20 	(c) A person who qualifies to operate as a central service technician in a health care 
96.21 	facility under paragraph (a) must annually complete ten hours of continuing education 
96.22 	credits to remain qualified to operate as a central service technician. The continuing education 
96.23 	required under this paragraph must be related to the functions of a central service technician.
96.24 	(d) Nothing in this subdivision shall prohibit the following persons from performing the 
96.25 	tasks or functions of a central service technician:
96.26 	(1) a health care practitioner;
96.27 	(2) a person who holds or maintains a registration, certification, or license by a nationally 
96.28 	accredited credentialing organization to perform health care services; or
96.29 	(3) a student or intern performing the functions of a central service technician under the 
96.30 	direct supervision of a health care practitioner as part of the student's or intern's training or 
96.31 	internship.
97.1 	(e) A health care facility shall, upon the written request of a central service technician, 
97.2 	verify in writing the central service technician's dates of employment or the contract period 
97.3 	during which the central service technician provided services to the health care facility.

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

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

97.9 	Sec. 42. REVISOR INSTRUCTION.
 97.10 	The revisor of statutes shall renumber Minnesota Statutes, section 138.912, as section 
97.11 	144.0554. The revisor shall make any cross-reference changes necessary resulting from the 
97.12 	renumbering of the healthy eating, here at home program.

97.13 	Sec. 43. REPEALER.
 97.14 	Minnesota Statutes 2024, sections 62K.10, subdivision 3; and 138.912, subdivision 7,
97.15 	are repealed.

97.16 	ARTICLE 3
97.17 	HEALTH LICENSING BOARDS

97.18 	Section 1. Minnesota Statutes 2024, section 144.99, subdivision 1, is amended to read:
97.19 		Subdivision 1.Remedies available. The provisions of chapters 103I and 157 and sections 
97.20 	115.71 to 115.77; 144.12, subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), (14), 
97.21 	and (15); 144.1201 to 144.1204; 144.121; 144.1215; 144.1222; 144.35; 144.381 to 144.385; 
97.22 	144.411 to 144.417; 144.495; 144.71 to 144.74; 144.9501 to 144.9512; 144.97 to 144.98; 
97.23 	144.992;147.037, subdivision 1b, paragraph (d); 326.70 to 326.785; 327.10 to 327.131; 
97.24 	and 327.14 to 327.28 and all rules, orders, stipulation agreements, settlements, compliance 
97.25 	agreements, licenses, registrations, certificates, and permits adopted or issued by the 
97.26 	department or under any other law now in force or later enacted for the preservation of 
97.27 	public health may, in addition to provisions in other statutes, be enforced under this section.

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

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

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

98.9 	Sec. 4. Minnesota Statutes 2024, section 147.01, subdivision 7, is amended to read:
98.10 		Subd. 7.Physician application and license fees. (a) The board may charge the following 
98.11 	nonrefundable application and license fees processed pursuant to sections 147.02, 147.03, 
98.12 	147.037, 147.0375, and 147.38:
98.13 	(1) physician application fee, $200;
98.14 	(2) physician annual registration renewal fee, $192;
98.15 	(3) physician endorsement to other states, $40;
98.16 	(4) physician emeritus license, $50;
98.17 	(5) physician late fee, $60;
98.18 	(6) nonrenewable 24-month limited license, $392;
98.19 	(7) initial physician license for limited license holder, $192;
98.20 	(6) (8) duplicate license fee, $20;
98.21 	(7) (9) certification letter fee, $25;
98.22 	(8) (10) education or training program approval fee, $100;
98.23 	(9) (11) report creation and generation fee, $60 per hour;
98.24 	(10) (12) examination administration fee (half day), $50;
98.25 	(11) (13) examination administration fee (full day), $80;
98.26 	(12) (14) fees developed by the Interstate Commission for determining physician 
98.27 	qualification to register and participate in the interstate medical licensure compact, as 
98.28 	established in rules authorized in and pursuant to section 147.38, not to exceed $1,000; and
99.1 	(13) (15) verification fee, $25.
99.2 	(b) The board may prorate the initial annual license fee. All licensees are required to 
99.3 	pay the full fee upon license renewal. The revenue generated from the fee must be deposited 
99.4 	in an account in the state government special revenue fund.

99.5 	Sec. 5. Minnesota Statutes 2024, section 147.037, is amended by adding a subdivision to 
99.6 	read:
99.7 		Subd. 1b.Limited license. (a) A limited license under this section is valid for one 
99.8 	24-month period and is not renewable or eligible for reapplication. The board may issue a 
99.9 	limited license, valid for 24 months, to any person who satisfies the requirements of 
99.10 	subdivision 1, paragraphs (a) to (c) and (e) to (g), and who:
99.11 	(1) pursuant to a license or other authorization to practice, has practiced medicine, as 
99.12 	defined in section 147.081, subdivision 3, clauses (2) to (4), for at least 60 months in the 
99.13 	previous 12 years outside of the United States;
99.14 	(2) submits sufficient evidence of an offer to practice within the context of a collaborative 
99.15 	agreement within a hospital or clinical setting where the limited license holder and physicians 
99.16 	work together to provide patient care;
99.17 	(3) provides services in a designated rural area or underserved urban community as 
99.18 	defined in section 144.1501; and
99.19 	(4) submits two letters of recommendation in support of a limited license, which must 
99.20 	include one letter from a physician with whom the applicant previously worked and one 
99.21 	letter from an administrator of the hospital or clinical setting in which the applicant previously 
99.22 	worked. The letters of recommendation must attest to the applicant's good medical standing. 
99.23 	The board may accept alternative forms of proof that demonstrate good medical standing 
99.24 	where there are extenuating circumstances that prevent an applicant from providing letters.
99.25 	(b) For purposes of this subdivision, a person has satisfied the requirements of subdivision 
99.26 	1, paragraph (e), if the person has passed steps or levels one and two of the USMLE or the 
99.27 	COMLEX-USA with passing scores as recommended by the USMLE program or National 
99.28 	Board of Osteopathic Medical Examiners within three attempts.
99.29 	(c) A person issued a limited license under this subdivision must not be required to 
99.30 	present evidence satisfactory to the board of the completion of one year of graduate clinical 
99.31 	medical training in a program accredited by a national accrediting organization approved 
99.32 	by the board.
100.1 	(d) An employer of a limited license holder must pay the limited license holder at least 
100.2 	an amount equivalent to a medical resident in a comparable field. The employer must carry 
100.3 	medical malpractice insurance covering a limited license holder for the duration of the 
100.4 	employment. The commissioner of health may issue a correction order under section 144.99, 
100.5 	subdivision 3, requiring an employer to comply with this paragraph. An employer must not 
100.6 	retaliate against or discipline an employee for raising a complaint or pursuing enforcement 
100.7 	relating to this paragraph.
100.8 	(e) The board may issue a full and unrestricted license to practice medicine to a person 
100.9 	who holds a limited license issued pursuant to paragraph (a) and who has:
100.10 	(1) held the limited license for two years and is in good standing to practice medicine 
100.11 	in Minnesota;
100.12 	(2) practiced for a minimum of 1,692 hours per year for each of the previous two years;
100.13 	(3) submitted a letter of recommendation in support of a full and unrestricted license 
100.14 	containing all attestations required under paragraph (i) from any physician who participated 
100.15 	in the collaborative agreement;
100.16 	(4) passed steps or levels one, two, and three of the USMLE or COMLEX-USA with 
100.17 	passing scores as recommended by the USMLE program or National Board of Osteopathic 
100.18 	Medical Examiners within three attempts; and
100.19 	(5) completed 20 hours of continuing medical education.
100.20 	(f) A limited license holder must submit to the board, every six months or upon request, 
100.21 	a statement certifying whether the person is still employed as a physician in Minnesota and 
100.22 	whether the person has been subjected to professional discipline as a result of the person's 
100.23 	practice. The board may suspend or revoke a limited license if a majority of the board 
100.24 	determines that the licensee is no longer employed as a physician in Minnesota by an 
100.25 	employer. The licensee must be granted an opportunity to be heard prior to the board's 
100.26 	determination. Upon request by the limited license holder, the limited license holder may 
100.27 	have 90 days to regain employment. A licensee may change employers during the duration 
100.28 	of the limited license if the licensee has another offer of employment. In the event that a 
100.29 	change of employment occurs, the licensee must still work the number of hours required 
100.30 	under paragraph (e), clause (2), to be eligible for a full and unrestricted license to practice 
100.31 	medicine.
100.32 	(g) In addition to any other remedy provided by law, the board may, without a hearing, 
100.33 	temporarily suspend the license of a limited license holder if the board finds that the limited 
101.1 	license holder has violated a statute or rule that the board is empowered to enforce and 
101.2 	continued practice by the limited license holder would create a serious risk of harm to the 
101.3 	public. The suspension shall take effect upon written notice to the limited license holder 
101.4 	specifying the statute or rule violated. The suspension shall remain in effect until the board 
101.5 	issues a final order in the matter after a hearing. At the time it issues the suspension notice, 
101.6 	the board shall schedule a disciplinary hearing to be held pursuant to the Administrative 
101.7 	Procedure Act. The limited license holder shall be provided with at least 20 days' notice of 
101.8 	any hearing held pursuant to this subdivision. The hearing shall be scheduled to begin no 
101.9 	later than 30 days after the issuance of the suspension order.
101.10 	(h) For purposes of this subdivision, "collaborative agreement" means a mutually agreed 
101.11 	upon plan for the overall working relationship and collaborative arrangement between a 
101.12 	holder of a limited license and one or more physicians licensed under this chapter that 
101.13 	designates the scope of services that can be provided to manage the care of patients. The 
101.14 	limited license holder and one of the collaborating physicians must have experience in 
101.15 	providing care to patients with the same or similar medical conditions. Under the 
101.16 	collaborative agreement, the limited license holder must shadow the collaborating physician 
101.17 	for four weeks, after which time the limited license holder must staff all patient encounters 
101.18 	with the collaborating physician for an additional four weeks. After that time, the 
101.19 	collaborating physician has discretion to allow the limited license holder to see patients 
101.20 	independently and will require the limited license holder to present patients at their discretion. 
101.21 	However, the limited license holder must be supervised by the collaborating physician for 
101.22 	a minimum of two hours per week. A limited license holder may practice medicine without 
101.23 	a collaborating physician physically present, but the limited license holder and collaborating 
101.24 	physicians must be able to easily contact each other by radio, telephone, or other 
101.25 	telecommunication device while the limited license holder practices medicine. The limited 
101.26 	license holder must have one-on-one practice reviews with each collaborating physician, 
101.27 	provided in person or through eye-to-eye electronic media while maintaining visual contact, 
101.28 	for at least two hours per week.
101.29 	(i) At least one collaborating physician must submit a letter to the board, after the limited 
101.30 	license holder has practiced under the license for 12 months, attesting that:
101.31 	(1) the limited license holder has a basic understanding of federal and state laws regarding 
101.32 	the provision of health care, including but not limited to:
101.33 	(i) medical licensing obligations and standards; and
101.34 	(ii) the Health Insurance Portability and Accountability Act, Public Law 104-191;
102.1 	(2) the limited license holder has a basic understanding of documentation standards;
102.2 	(3) the limited license holder has a thorough understanding of which medications are 
102.3 	available and unavailable in the United States;
102.4 	(4) the limited license holder has a thorough understanding of American medical standards 
102.5 	of care;
102.6 	(5) the limited license holder has demonstrated mastery of each of the following:
102.7 	(i) gathering a history and performing a physical exam;
102.8 	(ii) developing and prioritizing a differential diagnosis following a clinical encounter 
102.9 	and selecting a working diagnosis;
102.10 	(iii) recommending and interpreting common diagnostic and screening tests;
102.11 	(iv) entering and discussing orders and prescriptions;
102.12 	(v) providing an oral presentation of a clinical encounter;
102.13 	(vi) giving a patient handover to transition care responsibly;
102.14 	(vii) recognizing a patient requiring urgent care and initiating an evaluation; and
102.15 	(viii) obtaining informed consent for tests, procedures, and treatments; and
102.16 	(6) the limited license holder is providing appropriate medical care.
102.17 	(j) The board must not grant a license under this section unless the applicant possesses 
102.18 	federal immigration status that allows the applicant to practice as a physician in the United 
102.19 	States.

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

102.21 	Sec. 6. Minnesota Statutes 2024, section 147A.02, is amended to read:
102.22 	147A.02 QUALIFICATIONS FOR LICENSURE.
102.23 	(a) The board may grant a license as a physician assistant to an applicant who:
102.24 	(1) submits an application on forms approved by the board;
102.25 	(2) pays the appropriate fee as determined by the board;
102.26 	(3) has current certification from the National Commission on Certification of Physician 
102.27 	Assistants, or its successor agency as approved by the board;
102.28 	(4) certifies that the applicant is mentally and physically able to engage safely in practice 
102.29 	as a physician assistant;
103.1 	(5) has no licensure, certification, or registration as a physician assistant under current 
103.2 	discipline, revocation, suspension, or probation for cause resulting from the applicant's 
103.3 	practice as a physician assistant, unless the board considers the condition and agrees to 
103.4 	licensure;
103.5 	(6) submits any other information the board deems necessary to evaluate the applicant's 
103.6 	qualifications; and
103.7 	(7) has been approved by the board.
103.8 	(b) All persons registered as physician assistants as of June 30, 1995, are eligible for 
103.9 	continuing license renewal. All persons applying for licensure after that date shall be licensed 
103.10 	according to this chapter.
103.11 	(c) A physician assistant who qualifies for licensure must practice for at least 2,080 
103.12 	hours, within the context of a collaborative agreement, within a hospital or integrated clinical 
103.13 	setting where physician assistants and physicians work together to provide patient care. The 
103.14 	physician assistant shall submit written evidence to the board with the application, or upon 
103.15 	completion of the required collaborative practice experience. For purposes of this paragraph, 
103.16 	a collaborative agreement is a mutually agreed upon plan for the overall working relationship 
103.17 	and collaborative arrangement between a physician assistant, and one or more physicians 
103.18 	licensed under chapter 147 or licensed in another state or United States territory, that 
103.19 	designates the scope of services that can be provided collaboration necessary to manage the 
103.20 	care of patients. The physician assistant and one of the collaborative physicians must have 
103.21 	experience in providing care to patients with the same or similar medical conditions. The 
103.22 	collaborating physician is not required to be physically present so long as the collaborating 
103.23 	physician and physician assistant are or can be easily in contact with each other by radio, 
103.24 	telephone, or other telecommunication device.

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

104.1 	Sec. 8. Minnesota Statutes 2024, section 148.108, subdivision 1, is amended to read:
104.2 		Subdivision 1.Fees. In addition to the fees established in Minnesota Rules, chapter 
104.3 	2500, The board is authorized to charge the fees in this section.

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

104.5 	Sec. 9. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision to 
104.6 	read:
104.7 		Subd. 5.Chiropractic license fees. Fees for chiropractic licensure must not exceed the 
104.8 	following amounts but may be adjusted lower by board action:
104.9 	(1) initial application for licensure fee, $600;
104.10 	(2) annual renewal of an active license fee, $250;
104.11 	(3) annual renewal of an inactive license fee, 75 percent of the current active license 
104.12 	renewal fee under clause (2);
104.13 	(4) late renewal penalty fee, $150 per month late; and
104.14 	(5) application for reinstatement of a voluntarily retired or inactive license fee, $100.

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

104.16 	Sec. 10. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
104.17 	to read:
104.18 		Subd. 6.Acupuncture registration fees. Fees for acupuncture registration must not 
104.19 	exceed the following amounts but may be adjusted lower by board action:
104.20 	(1) initial application acupuncture registration fee, $400;
104.21 	(2) annual renewal of active acupuncture registration fee, $200;
104.22 	(3) annual renewal of inactive acupuncture registration fee, 75 percent of the current 
104.23 	active acupuncture registration renewal fee under clause (2); and
104.24 	(4) reinstatement of nonrenewed acupuncture registration fee, $400.

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

105.1 	Sec. 11. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
105.2 	to read:
105.3 		Subd. 7.Independent examiner registration fees. Fees for independent examiner 
105.4 	registration must not exceed the following amounts but may be adjusted lower by board 
105.5 	action:
105.6 	(1) initial application independent examiner registration fee, $400;
105.7 	(2) annual renewal of independent examiner registration fee, $200; and
105.8 	(3) reinstatement of nonrenewed independent examiner registration fee, $400.

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

105.10 	Sec. 12. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
105.11 	to read:
105.12 		Subd. 8.Animal chiropractic registration fees. Fees for animal chiropractic registration 
105.13 	must not exceed the following amounts but may be adjusted lower by board action:
105.14 	(1) initial application animal chiropractic registration fee, $400;
105.15 	(2) annual renewal of active animal chiropractic registration fee, $200;
105.16 	(3) annual renewal of inactive animal chiropractic registration fee, 75 percent of the 
105.17 	current active animal chiropractic renewal fee under clause (2); and
105.18 	(4) reinstatement of nonrenewed animal chiropractic registration fee, $400.

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

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

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

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

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

106.7 	Sec. 15. Minnesota Statutes 2024, section 148.108, is amended by adding a subdivision 
106.8 	to read:
106.9 		Subd. 11.Miscellaneous fees. Fees under this subdivision must not exceed the following 
106.10 	amounts but may be adjusted lower by board action:
106.11 	(1) annual continuing education sponsorship fee, $1,000;
106.12 	(2) individual continuing education seminar sponsorship fee, $400;
106.13 	(3) mailing list request fee, $500;
106.14 	(4) license verification fee, $50;
106.15 	(5) duplicate certificate fee, $50; and
106.16 	(6) document copies fee, $0.25 per side of document page.

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

106.18 	Sec. 16. Minnesota Statutes 2024, section 148.191, subdivision 2, is amended to read:
106.19 		Subd. 2.Powers. (a) The board is authorized to adopt and, from time to time, revise 
106.20 	rules not inconsistent with the law, as may be necessary to enable it to carry into effect the 
106.21 	provisions of sections 148.171 to 148.285 and chapter 148G. The board shall prescribe by 
106.22 	rule curricula and standards for schools and courses preparing persons for licensure under 
106.23 	sections 148.171 to 148.285 and 148G.12. It shall conduct or provide for surveys of such 
106.24 	schools and courses at such times as it may deem necessary. It shall approve such schools 
106.25 	and courses as meet the requirements of sections 148.171 to 148.285 or section 148G.12,
106.26 	and board rules. It shall examine, license, and renew the license of duly qualified applicants. 
106.27 	It shall hold examinations at least once in each year at such time and place as it may 
106.28 	determine. It shall by rule adopt, evaluate, and periodically revise, as necessary, requirements 
106.29 	for licensure and for registration and renewal of registration as defined in section 148.231
106.30 	and chapter 148G. It shall maintain a record of all persons licensed by the board to practice 
106.31 	advanced practice, professional, or practical nursing, or certified as a midwife. It shall cause 
107.1 	the prosecution of all persons violating sections 148.171 to 148.285 or chapter 148G, and 
107.2 	have power to incur such necessary expense therefor. It shall register public health nurses 
107.3 	who meet educational and other requirements established by the board by rule, including 
107.4 	payment of a fee. It shall have power to issue subpoenas, and to compel the attendance of 
107.5 	witnesses and the production of all necessary documents and other evidentiary material. 
107.6 	Any board member may administer oaths to witnesses, or take their affirmation. It shall 
107.7 	keep a record of all its proceedings.
107.8 	(b) The board shall have access to hospital, nursing home, and other medical records of 
107.9 	a patient cared for by a nurse or certified midwife under review. If the board does not have 
107.10 	a written consent from a patient permitting access to the patient's records, the nurse, certified 
107.11 	midwife, or facility shall delete any data in the record that identifies the patient before 
107.12 	providing it to the board. The board shall have access to such other records as reasonably 
107.13 	requested by the board to assist the board in its investigation. Nothing herein may be 
107.14 	construed to allow access to any records protected by section 145.64. The board shall 
107.15 	maintain any records obtained pursuant to this paragraph as investigative data under chapter 
107.16 	13.
107.17 	(c) The board may accept and expend grants or gifts of money or in-kind services from 
107.18 	a person, a public or private entity, or any other source for purposes consistent with the 
107.19 	board's role and within the scope of its statutory authority.
107.20 	(d) The board may accept registration fees for meetings and conferences conducted for 
107.21 	the purposes of board activities that are within the scope of its authority.

107.22 	Sec. 17. Minnesota Statutes 2024, section 148.241, is amended to read:
107.23 	148.241 EXPENSES.
107.24 		Subdivision 1.Appropriation. The expenses of administering sections 148.171 to 
107.25 	148.285and chapter 148G shall be paid from the appropriation made to the Minnesota 
107.26 	Board of Nursing.
107.27 		Subd. 2.Expenditure. All amounts appropriated to the board shall be held subject to 
107.28 	the order of the board to be used only for the purpose of meeting necessary expenses incurred 
107.29 	in the performance of the purposes of sections 148.171 to 148.285 and chapter 148G, and 
107.30 	the duties imposed thereby as well as the promotion of nursing or certified midwifery 
107.31 	education and standards of nursing or certified midwifery care in this state.

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

108.6 	Sec. 19. Minnesota Statutes 2024, section 148.5192, subdivision 3, is amended to read:
108.7 		Subd. 3.Supervision requirements. (a) A supervising speech-language pathologist 
108.8 	shall authorize and accept full responsibility for the performance, practice, and activity of 
108.9 	a speech-language pathology assistant. The amount and type of supervision required must 
108.10 	be based on the skills and experience of the speech-language pathology assistant. A minimum 
108.11 	of one hour every 30 days of consultative supervision time must be documented for each 
108.12 	speech-language pathology assistant.
108.13 	(b) A supervising speech-language pathologist must:
108.14 	(1) be licensed under sections 122A.183, 122A.184, or 148.511 to 148.5198;
108.15 	(2) hold a certificate of clinical competence from the American Speech-Language-Hearing 
108.16 	Association or its equivalent as approved by the commissioner; and
108.17 	(3) have completed at least ten hours of continuing education in supervision.
108.18 	(c) Once every 60 days, the supervising speech-language pathologist must treat or cotreat 
108.19 	with the speech-language pathology assistant each client on the speech-language pathology 
108.20 	assistant's caseload.
108.21 	(d) For purposes of this section, "direct supervision" means observation and guidance 
108.22 	by the supervising speech-language pathologist during the performance of a delegated duty 
108.23 	that occurs either on-site and in-view or through the use of real-time, two-way interactive 
108.24 	audio and visual communication. The supervision requirements described in this section 
108.25 	are minimum requirements. Additional supervision requirements may be imposed at the 
108.26 	discretion of the supervising speech-language pathologist.
108.27 	(e) A supervising speech-language pathologist must be available to communicate with 
108.28 	a speech-language pathology assistant at any time the assistant is in direct contact with a 
108.29 	client.
108.30 	(f) A supervising speech-language pathologist must document activities performed by 
108.31 	the assistant that are directly supervised by the supervising speech-language pathologist. 
108.32 	At a minimum, the documentation must include:
109.1 	(1) information regarding the quality of the speech-language pathology assistant's 
109.2 	performance of the delegated duties; and
109.3 	(2) verification that any delegated clinical activity was limited to duties authorized to 
109.4 	be performed by the speech-language pathology assistant under this section.
109.5 	(g) A supervising speech-language pathologist must review and cosign all informal 
109.6 	treatment notes signed or initialed by the speech-language pathology assistant.
109.7 	(h) A full-time, speech-language pathologist may supervise no more than two full-time, 
109.8 	speech-language pathology assistants or the equivalent of two full-time assistants.

109.9 	Sec. 20. Minnesota Statutes 2024, section 148.5194, subdivision 3b, is amended to read:
109.10 		Subd. 3b.Speech-language pathology assistant licensure fees. The fee for initial 
109.11 	licensure as a speech-language pathology assistant is $493 must not exceed $220. The fee 
109.12 	for licensure renewal for a speech-language pathology assistant is $493 must not exceed 
109.13 	$220.

109.14 	Sec. 21. Minnesota Statutes 2024, section 148.56, subdivision 1, is amended to read:
109.15 		Subdivision 1.Optometry defined. (a) Any person shall be deemed to be practicing 
109.16 	optometry within the meaning of sections 148.52 to 148.62 who shall in any way:
109.17 	(1) advertise as an optometrist;
109.18 	(2) employ any means, including the use of autorefractors or other automated testing 
109.19 	devices, for the measurement of the powers of vision or the adaptation of lenses or prisms 
109.20 	for the aid thereof;
109.21 	(3) possess testing appliances for the purpose of the measurement of the powers of vision;
109.22 	(4) diagnose any disease, optical deficiency or deformity, or visual or muscular anomaly 
109.23 	of the visual system consisting of the human eye and its accessory or subordinate anatomical 
109.24 	parts;
109.25 	(5) prescribe lenses, including plano or cosmetic contact lenses, or prisms for the 
109.26 	correction or the relief of same;
109.27 	(6) employ or prescribe ocular exercises, orthoptics, or habilitative and rehabilitative 
109.28 	therapeutic vision care; or
109.29 	(7) prescribe or administer legend drugs to aid in the diagnosis, cure, mitigation, 
109.30 	prevention, treatment, or management of disease, deficiency, deformity, or abnormality of 
110.1 	the human eye and adnexa included in the curricula of accredited schools or colleges of 
110.2 	optometry, and as limited by Minnesota statute and adopted rules by the Board of Optometry, 
110.3 	or who holds oneself out as being able to do so.
110.4 	(b) In the course of treatment, nothing in this section shall allow:
110.5 	(1) legend drugs to be administered intravenously, intramuscularly, or by injection, 
110.6 	except for treatment of anaphylaxis or by sub-Tenon, retrobulbar, or intravitreal injection;
110.7 	(2) invasive surgery including, but not limited to, surgery using lasers;
110.8 	(3) Schedule II and III oral legend drugs and oral steroids to be administered or 
110.9 	prescribed; or
110.10 	(4) oral antivirals to be prescribed or administered for more than ten days; or steroids 
110.11 	to be administered or prescribed for more than 14 days without consultation with a physician.
110.12 	(5) oral carbonic anhydrase inhibitors to be prescribed or administered for more than 
110.13 	seven days.

110.14 	Sec. 22. Minnesota Statutes 2024, section 148.6401, is amended to read:
110.15 	148.6401 SCOPE.
110.16 	Sections 148.6401 to 148.6449 148.645 apply to persons who are applicants for licensure, 
110.17 	who are licensed, who use protected titles, or who represent that they are licensed as 
110.18 	occupational therapists or occupational therapy assistants practitioners.

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

110.22 	Sec. 24. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
110.23 	to read:
110.24 		Subd. 2a.Accreditation Council for Occupational Therapy Education or 
110.25 	ACOTE. "Accreditation Council for Occupational Therapy Education" or "ACOTE" means 
110.26 	the entity that accredits occupational therapy education programs in the United States and 
110.27 	its territories and establishes, approves, and administers educational standards ensuring 
110.28 	consistency across all occupational therapy education.

111.1 	Sec. 25. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
111.2 	to read:
111.3 		Subd. 5a.Continuing competence. "Continuing competence" means the process in 
111.4 	which an occupational therapy practitioner develops and maintains the knowledge, critical 
111.5 	reasoning, interpersonal skills, performance skills, and ethical practice necessary to perform 
111.6 	their occupational therapy responsibilities.

111.7 	Sec. 26. Minnesota Statutes 2024, section 148.6402, subdivision 7, is amended to read:
111.8 		Subd. 7.Credentialing Certification examination for occupational 
111.9 	therapist. "Credentialing Certification examination for occupational therapist" means the 
111.10 	examination sponsored by the National Board for Certification in Occupational Therapy 
111.11 	for credentialing certification as an a registered occupational therapist, registered.

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

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

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

112.1 	Sec. 30. Minnesota Statutes 2024, section 148.6402, is amended by adding a subdivision 
112.2 	to read:
112.3 		Subd. 13a.National Board for Certification in Occupational Therapy or 
112.4 	NBCOT. "National Board for Certification in Occupational Therapy" or "NBCOT" means 
112.5 	the entity that administers the certification examination and provides initial and renewal 
112.6 	board certification for occupational therapy practitioners providing services in the United 
112.7 	States, or any successor entity performing the certification examination and initial and 
112.8 	renewal board certification.

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

112.15 	Sec. 32. Minnesota Statutes 2024, section 148.6402, subdivision 16, is amended to read:
112.16 		Subd. 16.Occupational therapy assistant. "Occupational therapy assistant" means an 
112.17 	individual who meets the qualifications for an occupational therapy assistant in sections 
112.18 	148.6401 to 148.6449 and is licensed by the board licensed to assist in the practice of 
112.19 	occupational therapy under sections 148.6401 to 148.645 who works under the appropriate 
112.20 	supervision of and in partnership with an occupational therapist, unless exempted under 
112.21 	section 148.6432.

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

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

113.1 	Sec. 35. Minnesota Statutes 2024, section 148.6402, subdivision 20, is amended to read:
113.2 		Subd. 20.Licensee. "Licensee" means a person who meets the requirements of sections 
113.3 	148.6401 to 148.6449 148.645.

113.4 	Sec. 36. Minnesota Statutes 2024, section 148.6402, subdivision 23, is amended to read:
113.5 		Subd. 23.Service competency. (a) "Service competency" of an occupational therapy 
113.6 	assistant in performing evaluation tasks means the ability of an occupational therapy assistant 
113.7 	to obtain the same information as the supervising occupational therapist when evaluating 
113.8 	a client's function.
113.9 	(b) "Service competency" of an occupational therapy assistant in performing treatment 
113.10 	procedures means the ability of an occupational therapy assistant to perform treatment 
113.11 	procedures in a manner such that the outcome, documentation, and follow-up are equivalent 
113.12 	to that which would have been achieved had the supervising occupational therapist performed 
113.13 	the treatment procedure.
113.14 	(c) "Service competency" of an occupational therapist means the ability of an occupational 
113.15 	therapist to consistently perform an assessment task or intervention procedure with the level 
113.16 	of skill recognized as satisfactory within the appropriate acceptable prevailing practice
113.17 	national practice standards of occupational therapy.

113.18 	Sec. 37. Minnesota Statutes 2024, section 148.6402, subdivision 25, is amended to read:
113.19 		Subd. 25.Temporary licensure. "Temporary licensure" means a method of licensure 
113.20 	described in section 148.6418, by which an individual who (1) has completed an approved 
113.21 	or accredited education program but has not met the examination requirement; or (2) 
113.22 	possesses a credential from another jurisdiction or the National Board for Certification in 
113.23 	Occupational Therapy but who has not submitted the documentation required by section 
113.24 	148.6420, subdivisions 3 and 4, may qualify for Minnesota licensure for a limited time 
113.25 	period.

113.26 	Sec. 38. Minnesota Statutes 2024, section 148.6403, is amended to read:
113.27 	148.6403 LICENSURE; PROTECTED TITLES AND RESTRICTIONS ON USE; 
113.28 	EXEMPT PERSONS; SANCTIONS.
113.29 		Subdivision 1.Unlicensed practice prohibited. A person must not engage in the practice 
113.30 	of occupational therapy unless the person is licensed as an occupational therapy practitioner 
113.31 	in accordance with sections 148.6401 to 148.6449 148.645.
114.1 		Subd. 2.Protected titles and restrictions on use. Use of the phrase "occupational 
114.2 	therapy," or "occupational therapist," or "occupational therapy assistant," or the initials 
114.3 	"OT" or "OTA" alone or in combination with any other words or initials to form an 
114.4 	occupational title, or to indicate or imply that the person is licensed by the state as an 
114.5 	occupational therapist or occupational therapy assistant, is prohibited unless that person is 
114.6 	licensed under sections 148.6401 to 148.6449 148.645.
114.7 		Subd. 3.Use of "Minnesota licensed." Use of the term "Minnesota licensed" in 
114.8 	conjunction with titles protected under this section by any person is prohibited unless that 
114.9 	person is licensed under sections 148.6401 to 148.6449 148.645.
114.10 		Subd. 4.Persons licensed or certified in other states. A person who is licensed in 
114.11 	Minnesota and licensed or certified in another state jurisdiction may use the designation 
114.12 	"licensed" or "certified" with a protected title only if the state jurisdiction of licensure or 
114.13 	certification is clearly indicated.
114.14 		Subd. 5.Exempt persons. This section does not apply to:
114.15 	(1) a person employed as an occupational therapy practitioner by the government of the 
114.16 	United States or any agency of it. However, use of the protected titles under those 
114.17 	circumstances is allowed only in connection with performance of official duties for the 
114.18 	federal government;
114.19 	(2) a student participating in supervised fieldwork or supervised coursework that is 
114.20 	necessary to meet the requirements of section 148.6408, subdivision 1, or 148.6410, 
114.21 	subdivision 1, if the person is designated by a title which clearly indicates the person's status 
114.22 	as a student trainee. Any use of the protected titles under these circumstances is allowed 
114.23 	only while the person is performing the duties of the supervised fieldwork or supervised 
114.24 	coursework; or
114.25 	(3) a person visiting and then leaving the state and performing occupational therapy 
114.26 	services while in the state, if the services are performed no more than 30 days in a calendar 
114.27 	year as part of a professional activity that is limited in scope and duration and is in association 
114.28 	with an occupational therapist licensed under sections 148.6401 to 148.6449, and
114.29 	(i) the (3) a person who is credentialed under the law of another state which that has 
114.30 	credentialing requirements at least as stringent as the requirements of sections 148.6401 to 
114.31 	148.6449 148.645; or
115.1 	(ii) the (4) a person who meets the requirements for certification as an occupational 
115.2 	therapist registered (OTR) or a certified occupational therapy assistant (COTA), established 
115.3 	by the National Board for Certification in Occupational Therapy.; or
115.4 	(5) an occupational therapy practitioner who possesses an active compact privilege under 
115.5 	section 148.645.
115.6 		Subd. 6.Sanctions. A person who practices occupational therapy or holds out as an 
115.7 	occupational therapy practitioner by or through the use of any title described in subdivision 
115.8 	2 without prior licensure according to sections 148.6401 to 148.6449 148.645 is subject to 
115.9 	sanctions or action against continuing the activity according to section 148.6448, chapter 
115.10 	214, or other statutory authority.
115.11 		Subd. 7.Exemption. Nothing in sections 148.6401 to 148.6449 148.645 shall prohibit 
115.12 	the practice of any profession or occupation licensed or registered by the state by any person 
115.13 	duly licensed or registered to practice the profession or occupation or to perform any act 
115.14 	that falls within the scope of practice of the profession or occupation.

115.15 	Sec. 39. Minnesota Statutes 2024, section 148.6404, is amended to read:
115.16 	148.6404 SCOPE OF PRACTICE.
115.17 	(a) The practice of occupational therapy means the therapeutic use of everyday activities
115.18 	life occupations with individuals or, groups, or populations for the purpose of enhancing 
115.19 	or enabling participation in those occupations. It is the promotion of The practice of 
115.20 	occupational therapy promotes health and well-being through the use of occupational therapy 
115.21 	services that includes screening, evaluation, intervention, and consultation to develop, 
115.22 	recover, and maintain a client's:
115.23 	(1) sensory integrative, neuromuscular, motor, emotional, motivational, cognitive, or 
115.24 	psychosocial components of performance;
115.25 	(2) daily living skills;
115.26 	(3) feeding and swallowing skills;
115.27 	(4) play and leisure skills;
115.28 	(5) educational participation skills;
115.29 	(6) functional performance and work participation skills;
115.30 	(7) community mobility; and
115.31 	(8) health and wellness.
116.1 	(b) Occupational therapy services include but are not limited to:
116.2 	(1) designing, fabricating, or applying rehabilitative technology, such as selected orthotic 
116.3 	and prosthetic devices, and providing training in the functional use of these devices;
116.4 	(2) designing, fabricating, or adapting assistive technology and providing training in the 
116.5 	functional use of assistive devices;
116.6 	(3) adapting environments using assistive technology such as environmental controls, 
116.7 	wheelchair modifications, and positioning; and
116.8 	(4) employing applying physical agent, manual, and mechanical modalities in preparation 
116.9 	for or as an adjunct to purposeful activity to meet established functional occupational therapy 
116.10 	goals; and
116.11 	(5) educating and training individuals, including families, caregivers, groups, and 
116.12 	populations.
116.13 	(c) Occupational therapy services must be based on nationally established standards of 
116.14 	practice.

116.15 	Sec. 40. Minnesota Statutes 2024, section 148.6405, is amended to read:
116.16 	148.6405 LICENSURE APPLICATION REQUIREMENTS: PROCEDURES AND 
116.17 	QUALIFICATIONS.
116.18 	(a) An applicant for licensure must comply with the application requirements in section 
116.19 	148.6420. To qualify for licensure, an applicant must satisfy one of the requirements in 
116.20 	paragraphs (b) to (f) sections 148.6408 to 148.6415, or section 148.645 and not be subject 
116.21 	to denial of licensure under section 148.6448.
116.22 	(b) A person who applies for licensure as an occupational therapist and who has not 
116.23 	been credentialed by the National Board for Certification in Occupational Therapy or another 
116.24 	jurisdiction must meet the requirements in section 148.6408.
116.25 	(c) A person who applies for licensure as an occupational therapy assistant and who has 
116.26 	not been credentialed by the National Board for Certification in Occupational Therapy or 
116.27 	another jurisdiction must meet the requirements in section 148.6410.
116.28 	(d) A person who is certified by the National Board for Certification in Occupational 
116.29 	Therapy may apply for licensure by equivalency and must meet the requirements in section 
116.30 	148.6412.
117.1 	(e) A person who is credentialed in another jurisdiction and who was previously certified 
117.2 	by the National Board for Certification in Occupational Therapy may apply for licensure 
117.3 	by reciprocity and must meet the requirements in section 148.6415.
117.4 	(f) (b) A person who applies for temporary licensure must meet the requirements in 
117.5 	section 148.6418.
117.6 	(c) A person who applies for licensure under section 148.6408 or 148.6410 more than 
117.7 	two years after the person's initial NBCOT certification was issued and who has not practiced 
117.8 	in any jurisdiction must submit:
117.9 	(1) a completed and signed application for licensure on forms provided by the board 
117.10 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
117.11 	and (2); and
117.12 	(2) proof of a minimum of 24 continuing education contact hours by an occupational 
117.13 	therapist applicant, or a minimum of 18 hours by an occupational therapy assistant applicant, 
117.14 	completed within the two years proceeding the application and meeting the requirements 
117.15 	of section 148.6443.
117.16 	(g) (d) A person who applies for licensure under paragraph (b), (c), or (f) more than two 
117.17 	and less than four years after meeting the examination requirements in section 148.6408, 
117.18 	subdivision 2, or 148.6410, subdivision 2, section 148.6408 or 148.6410 after the person's 
117.19 	initial NBCOT certification has expired must submit the following:
117.20 	(1) a completed and signed application for licensure on forms provided by the board
117.21 	that meet the requirements of section 148.6420, subdivision 1, paragraph (a), clauses (1) 
117.22 	and (2); and
117.23 	(2) the license application fee required under section 148.6445; evidence of:
117.24 	(i) completion of an occupational therapy refresher program that contains both theoretical 
117.25 	and clinical components completed within the last year; or
117.26 	(ii) current NBCOT certification.
117.27 	(3) if applying for occupational therapist licensure, proof of having met a minimum of 
117.28 	24 contact hours of continuing education in the two years preceding licensure application, 
117.29 	or if applying for occupational therapy assistant licensure, proof of having met a minimum 
117.30 	of 18 contact hours of continuing education in the two years preceding licensure application;
118.1 	(4) verified documentation of successful completion of 160 hours of supervised practice 
118.2 	approved by the board under a limited license specified in section 148.6425, subdivision 3, 
118.3 	paragraph (c); and
118.4 	(5) additional information as requested by the board to clarify information in the 
118.5 	application, including information to determine whether the individual has engaged in 
118.6 	conduct warranting disciplinary action under section 148.6448. The information must be 
118.7 	submitted within 30 calendar days from the date of the board's request.
118.8 	(h) A person who applies for licensure under paragraph (b), (c), or (f) four years or more 
118.9 	after meeting the examination requirements in section 148.6408, subdivision 2, or 148.6410, 
118.10 	subdivision 2, must:
118.11 	(1) meet all the requirements in paragraph (g) except clauses (3) and (4);
118.12 	(2) submit documentation of having retaken and achieved a qualifying score on the 
118.13 	credentialing examination for occupational therapists or occupational therapy assistants, or 
118.14 	of having completed an occupational therapy refresher program that contains both a 
118.15 	theoretical and clinical component approved by the board; and
118.16 	(3) submit verified documentation of successful completion of 480 hours of supervised 
118.17 	practice approved by the board under a limited license specified in section 148.6425, 
118.18 	subdivision 3, paragraph (c). The 480 hours of supervised practice must be completed in 
118.19 	six months and may be completed at the applicant's place of work. Only refresher courses 
118.20 	completed within one year prior to the date of application qualify for approval.

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

118.28 	Sec. 42. Minnesota Statutes 2024, section 148.6408, subdivision 2, is amended to read:
118.29 		Subd. 2.Qualifying examination score required. (a) An applicant must achieve a 
118.30 	qualifying score on the credentialing certification examination for occupational therapist.
119.1 	(b) The board shall determine the qualifying score for the credentialing certification
119.2 	examination for occupational therapist. In determining the qualifying score, the board shall 
119.3 	consider the cut scoreas recommended by the National Board for Certification in 
119.4 	Occupational Therapy, or other national credentialing certification organization approved 
119.5 	by the board, using the modified Angoff method for determining cut score or another method 
119.6 	for determining cut score that is recognized as appropriate and acceptable by industry 
119.7 	standards.
119.8 	(c) The applicant is responsible for Applicants for licensure must:
119.9 	(1) making make arrangements to take the credentialing certification examination for 
119.10 	an occupational therapist;
119.11 	(2) bearing bear all expenses associated with taking the examination; and
119.12 	(3) having the examination scores sent directly to the board from the testing service that 
119.13 	administers the examination submit an application and other materials as required by the 
119.14 	board under section 148.6420.

119.15 	Sec. 43. Minnesota Statutes 2024, section 148.6410, is amended by adding a subdivision 
119.16 	to read:
119.17 		Subd. 1a.Qualifications. To be licensed as an occupational therapist assistant, an 
119.18 	applicant must:
119.19 	(1) satisfy the education and examination requirements of subdivisions 1b and 2; or
119.20 	(2) satisfy the requirements for licensure by equivalency under section 148.6412 or 
119.21 	licensure by reciprocity under section 148.6415 as applicable based on the current status of 
119.22 	the applicant's NBCOT certification.

119.23 	Sec. 44. Minnesota Statutes 2024, section 148.6410, subdivision 2, is amended to read:
119.24 		Subd. 2.Qualifying examination score required. (a) An applicant for licensure must 
119.25 	achieve a qualifying score on the credentialing certification examination for occupational 
119.26 	therapy assistants.
119.27 	(b) The board shall determine the qualifying score for the credentialing certification
119.28 	examination for occupational therapy assistants. In determining the qualifying score, the 
119.29 	board shall consider the cut score as recommended by the National Board for Certification 
119.30 	in Occupational Therapy, or other national credentialing certification organization approved 
119.31 	by the board, using the modified Angoff method for determining cut score or another method 
120.1 	for determining cut score that is recognized as appropriate and acceptable by industry 
120.2 	standards.
120.3 	(c) The applicant is responsible for Applicants for licensure must:
120.4 	(1) making make all arrangements to take the credentialing certification examination 
120.5 	for occupational therapy assistants;
120.6 	(2) bearing bear all expense associated with taking the examination; and
120.7 	(3) having the examination scores sent directly to the board from the testing service that 
120.8 	administers the examination submit an application and other materials as required by the 
120.9 	board under section 148.6420.

120.10 	Sec. 45. Minnesota Statutes 2024, section 148.6412, subdivision 2, is amended to read:
120.11 		Subd. 2.Persons currently certified by National Board for Certification in 
120.12 	Occupational Therapy NBCOT. The board may license any person certified by the National 
120.13 	Board for Certification in Occupational Therapy who holds current NBCOT certification
120.14 	as an occupational therapist if the board determines the requirements for certification are 
120.15 	equivalent to or exceed the requirements for licensure as an occupational therapist under 
120.16 	section 148.6408 therapy practitioner. The board may license any person certified by the 
120.17 	National Board for Certification in Occupational Therapy as an occupational therapy assistant 
120.18 	if the board determines the requirements for certification are equivalent to or exceed the 
120.19 	requirements for licensure as an occupational therapy assistant under section 148.6410.
120.20 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
120.21 	for discipline in sections 148.6401 to 148.6449 148.645.

120.22 	Sec. 46. Minnesota Statutes 2024, section 148.6412, subdivision 3, is amended to read:
120.23 		Subd. 3.Application procedures. Applicants for licensure by equivalency must provide:
120.24 	(1) the application materials as required by section 148.6420, subdivisions subdivision
120.25 	1, 3, and 4; and.
120.26 	(2) the fees required by section 148.6445.

120.27 	Sec. 47. Minnesota Statutes 2024, section 148.6415, is amended to read:
120.28 	148.6415 LICENSURE BY RECIPROCITY.
120.29 	A person who is not certified by the National Board for Certification in Occupational 
120.30 	Therapy The board may license any person who does not hold current NBCOT certification
121.1 	but who holds a compact privilege or a current credential as an occupational therapist therapy 
121.2 	practitioner in the District of Columbia or a state or territory of the United States whose 
121.3 	standards for credentialing are determined by the board to be equivalent to or exceed the 
121.4 	requirements for licensure under section 148.6408may be eligible for licensure by reciprocity 
121.5 	as an occupational therapist. A person who is not certified by the National Board for 
121.6 	Certification in Occupational Therapy but who holds a current credential as an occupational 
121.7 	therapy assistant in the District of Columbia or a state or territory of the United States whose 
121.8 	standards for credentialing are determined by the board to be equivalent to or exceed the 
121.9 	requirements for licensure under section 148.6410 may be eligible for licensure by reciprocity 
121.10 	as an occupational therapy assistant. or 148.6410 as an occupational therapy practitioner.
121.11 	Nothing in this section limits the board's authority to deny licensure based upon the grounds 
121.12 	for discipline in sections 148.6401 to 148.6449 148.645. An applicant must provide:
121.13 	(1) the application materials as required by section 148.6420, subdivisions subdivision
121.14 	1, 3, and 4; and
121.15 	(2) the fees required by section 148.6445;
121.16 	(3) a copy of a current and unrestricted credential for the practice of occupational therapy 
121.17 	as either an occupational therapist or occupational therapy assistant;
121.18 	(4) a letter from the jurisdiction that issued the credential describing the applicant's 
121.19 	qualifications that entitled the applicant to receive the credential; and
121.20 	(5) (2) other information necessary to determine whether the credentialing standards of 
121.21 	the jurisdiction that issued the credential are equivalent to or exceed the requirements for 
121.22 	licensure under sections 148.6401 to 148.6449 148.645.

121.23 	Sec. 48. Minnesota Statutes 2024, section 148.6418, is amended to read:
121.24 	148.6418 TEMPORARY LICENSURE.
121.25 		Subdivision 1.Application. The board shall issue temporary licensure as an occupational 
121.26 	therapist or occupational therapy assistant practitioner to applicants who are not the subject 
121.27 	of a disciplinary action or past disciplinary action, nor disqualified on the basis of items 
121.28 	listed in section 148.6448, subdivision 1.
121.29 		Subd. 2.Procedures. To be eligible for temporary licensure, an applicant must submit 
121.30 	a completed application for temporary licensure on forms provided by the board, the fees 
121.31 	required by section 148.6445, and one of the following:
122.1 	(1) evidence of successful completion of the requirements in section 148.6408, 
122.2 	subdivision 1, or 148.6410, subdivision 1;
122.3 	(2) a copy of a current and unrestricted credential for the practice of occupational therapy 
122.4 	as either an occupational therapist or occupational therapy assistant practitioner in another 
122.5 	jurisdiction; or
122.6 	(3) a copy of a current and unrestricted certificate certification from the National Board 
122.7 	for Certification in Occupational Therapy stating that the applicant is certified as an 
122.8 	occupational therapist or occupational therapy assistant practitioner.
122.9 		Subd. 3.Additional documentation. Persons who are credentialed certified by the 
122.10 	National Board for Certification in Occupational Therapy or credentialed by another 
122.11 	jurisdiction must provide an affidavit a statement with the application for temporary licensure 
122.12 	stating that they are not the subject of a pending investigation or disciplinary action and 
122.13 	have not been the subject of a disciplinary action in the past.
122.14 		Subd. 4.Supervision required. An applicant who has graduated from an accredited 
122.15 	occupational therapy program, as required by section 148.6408, subdivision 1, or 148.6410, 
122.16 	subdivision 1, and who has not passed the examination required by section 148.6408, 
122.17 	subdivision 2, or 148.6410, subdivision 2, must practice under the supervision of a licensed 
122.18 	occupational therapist. The supervising therapist must, at a minimum, supervise the person 
122.19 	working under temporary licensure in the performance of the initial evaluation, determination 
122.20 	of the appropriate intervention plan, and periodic review and modification of the intervention 
122.21 	plan. The supervising therapist must observe the person working under temporary licensure 
122.22 	in order to ensure service competency in carrying out evaluation, intervention planning, 
122.23 	and intervention implementation. The frequency of face-to-face collaboration between the 
122.24 	person working under temporary licensure and the supervising therapist must be based on 
122.25 	the condition of each patient or client, the complexity of intervention and evaluation 
122.26 	procedures, and the proficiencies of the person practicing under temporary licensure. 
122.27 	Following demonstrated service competency of the applicant, supervision must occur no 
122.28 	less than every ten intervention days or every 30 calendar days, whichever occurs first. The 
122.29 	occupational therapist or occupational therapy assistant practitioner working under temporary 
122.30 	licensure must provide verification of supervision on the application form provided by the 
122.31 	board. Supervising occupational therapists must have a minimum of six months of fully 
122.32 	licensed practice to supervise a temporary licensee. The occupational therapy practitioner 
122.33 	working under temporary licensure must notify the board before changing supervision.
123.1 		Subd. 5.Qualifying examination requirement; expiration and renewability. (a) A 
123.2 	person issued a temporary license pursuant to subdivision 2, clause (1), must demonstrate 
123.3 	to the board within the temporary licensure period successful completion of the qualifying 
123.4 	examination requirement under section 148.6408, subdivision 2, or section 148.6410, 
123.5 	subdivision 2. A temporary license holder who fails the qualifying examination for a second 
123.6 	time shall have their temporary license revoked effective upon notification to the temporary 
123.7 	license holder of the examination score. It is the temporary license holder's obligation to 
123.8 	submit to the board their qualifying examination scores and to refrain from practice if their 
123.9 	temporary license is revoked. Failure to do so subjects the temporary license holder to 
123.10 	disciplinary action pursuant to section 148.6448, subdivision 1, clause (5) (6). The board 
123.11 	must not issue a temporary license to a person with two or more certification examination 
123.12 	failures.
123.13 	(b) A temporary license expires six months from the date of issuance or on the date the 
123.14 	board grants or denies licensure, whichever occurs first.
123.15 	(c) A temporary license is not renewable.

123.16 	Sec. 49. Minnesota Statutes 2024, section 148.6420, subdivision 1, is amended to read:
123.17 		Subdivision 1.Applications for initial licensure. (a) An applicant for initial licensure 
123.18 	must:
123.19 	(1) submit a completed application for licensure on forms provided by the board and 
123.20 	must supply the all information and documentation requested on the application, including:
123.21 	(i) the applicant's name, business address and business telephone number, business 
123.22 	setting, primary email address, and daytime home or mobile telephone number;
123.23 	(ii) the name and location of the occupational therapy program the applicant completed;
123.24 	(iii) (ii) a description of the applicant's education and training, including the name and 
123.25 	location of the occupational therapy program the applicant completed and a list of degrees 
123.26 	received from all other educational institutions attended;
123.27 	(iv) (iii) the applicant's work history for the six years preceding the application;
123.28 	(v) (iv) a list of all credentials currently and previously held in Minnesota and other 
123.29 	jurisdictions;
123.30 	(vi) (v) a description of any jurisdiction's refusal to credential the applicant;
123.31 	(vii) (vi) a description of all professional disciplinary actions initiated against the applicant 
123.32 	in any jurisdiction;
124.1 	(viii) (vii) information on any physical or mental condition or substance use disorder 
124.2 	that impairs the person's ability to engage in the practice of occupational therapy with 
124.3 	reasonable judgment or safety;
124.4 	(ix) (viii) a description of any misdemeanor or felony conviction that relates to honesty 
124.5 	or to the practice of occupational therapy charges or convictions; and
124.6 	(x) (ix) a description of any state or federal court order, including a conciliation court 
124.7 	judgment or a disciplinary order, related to the individual's occupational therapy practice;
124.8 	(2) submit with the application all fees required by section 148.6445;
124.9 	(3) sign a statement that the information in the application is true and correct to the best 
124.10 	of the applicant's knowledge and belief;
124.11 	(4) sign a waiver authorizing the board to obtain access to the applicant's records in this 
124.12 	or any other state in which the applicant holds or previously held a credential for the practice 
124.13 	of an occupation, has completed an accredited occupational therapy education program, or 
124.14 	engaged in the practice of occupational therapy;
124.15 	(x) any legal information required under chapter 214;
124.16 	(xi) either documentation to demonstrate the completion of the required education and 
124.17 	examination requirements under section 148.6408, subdivisions 1b and 2, or 148.6410, 
124.18 	subdivisions 1b and 2; for applicants for licensure by equivalency under section 148.6412, 
124.19 	documentation of current NBCOT certification; for applicants for licensure by reciprocity 
124.20 	under section 148.6415, documentation submitted directly by the appropriate commission 
124.21 	or government body verifying the license or credential; or verification from the Compact 
124.22 	Commission of the applicant's practice status in Compact Commission states;
124.23 	(xii) all application fees required by section 148.6445;
124.24 	(xiii) evidence of completing a criminal background check according to section 214.075; 
124.25 	and
124.26 	(xiv) a signed statement affirming that the information in the application is true and 
124.27 	correct to the best of the applicant's knowledge and belief;
124.28 	(5)(2) submit additional information as requested by the board; and
124.29 	(6) (3) submit the any additional information required for licensure by equivalency, 
124.30 	licensure by reciprocity, licensure by compact privilege, and temporary licensure as specified 
124.31 	in sections 148.6408 to 148.6418. and 148.645. An applicant applying under section 148.6418 
124.32 	is exempt from providing documentation related to a criminal background check under 
125.1 	clause (1), item (xiii). An applicant applying under section 148.6418, subdivision 4, is 
125.2 	exempt from providing documentation related to previously held licenses or credentials 
125.3 	under clause (1), item (iv).
125.4 	(b) The board must not verify the status of an applicant under paragraph (a), clause (1), 
125.5 	item (xi), by using another jurisdiction's publicly available website unless the other 
125.6 	jurisdiction fails to provide the requested documentation after the applicant provides 
125.7 	documentation of making the request.

125.8 	Sec. 50. Minnesota Statutes 2024, section 148.6423, subdivision 1, is amended to read:
125.9 		Subdivision 1.Renewal requirements. To be eligible for licensure renewal, a licensee 
125.10 	must:
125.11 	(1) submit a completed and signed application for licensure renewal; on forms provided 
125.12 	by the board, including:
125.13 	(i) updated personal information, including the renewal applicant's name, business 
125.14 	address and business telephone number, primary email address, and home or mobile telephone 
125.15 	number;
125.16 	(ii) information regarding any change to the renewal applicant's responses to section 
125.17 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
125.18 	(iii) a signed statement affirming that the information in the renewal application is true 
125.19 	and correct to the best of the applicant's knowledge and belief; and
125.20 	(iv) any legal information required under chapter 214;
125.21 	(2) submit the renewal fee required under section 148.6445;
125.22 	(3) if audited, submit proof of having met the continuing education requirement of section 
125.23 	148.6443; and
125.24 	(4) submit additional information as requested by the board to clarify information 
125.25 	presented in the renewal application. The information must be submitted within 30 calendar 
125.26 	days of the board's request.

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

126.1 	Sec. 52. Minnesota Statutes 2024, section 148.6423, subdivision 2, is amended to read:
126.2 		Subd. 2.Renewal deadline. (a) Except as provided in paragraph (c), licenses must be 
126.3 	renewed every two years on or before the first day of the month after the licensee's birth 
126.4 	month. Licensees must comply with the following procedures in paragraphs (b) to (e).
126.5 	(b) Each license must state an expiration date. An application for licensure renewal must 
126.6 	be received by the board at least 30 calendar days on or before the expiration date.
126.7 	(c) If the board changes the renewal schedule and the expiration date is less than two 
126.8 	years, the fee and the continuing education contact hours to be reported at the next renewal 
126.9 	must be prorated.
126.10 	(d) An application for licensure renewal not received within the time required under 
126.11 	paragraph (b), but received on or before the expiration date, must be accompanied by a late 
126.12 	fee in addition to the renewal fee specified by section 148.6445.
126.13 	(e) Licensure renewals received after the expiration date must comply with the 
126.14 	requirements of section 148.6425.

126.15 	Sec. 53. Minnesota Statutes 2024, section 148.6425, subdivision 2, is amended to read:
126.16 		Subd. 2.Licensure renewal within one year after licensure expiration date. A licensee 
126.17 	whose application for licensure renewal is received after the licensure expiration date but 
126.18 	within one year of the expiration date must submit the following:
126.19 	(1) a completed and signed renewal application for licensure following lapse in licensed 
126.20 	status; on forms provided by the board, including:
126.21 	(i) updated personal information, including the renewal applicant's name, business 
126.22 	address and business telephone number, primary email address, and home or mobile telephone 
126.23 	number;
126.24 	(ii) information regarding any change to the renewal applicant's responses to section 
126.25 	148.6420, subdivision 1, paragraph (a), clause (1), items (v) to (ix);
126.26 	(iii) a signed statement affirming that the information in the renewal application is true 
126.27 	and correct to the best of the applicant's knowledge and belief;
126.28 	(iv) information regarding any change to the renewal applicant's responses to section 
126.29 	148.6420, subdivision 1, paragraph (a), clause (1), item (xi);
126.30 	(v) NBCOT verification of certification documentation; and
126.31 	(vi) any legal information required under chapter 214;
127.1 	(2) the renewal fee and the late fee required under section 148.6445;
127.2 	(3) proof of having met the continuing education requirements in section 148.6443, 
127.3 	subdivision 1; and
127.4 	(4) an employment verification form; and
127.5 	(4) (5) additional information as requested by the board to clarify information in the 
127.6 	application, including information to determine whether the licensee has engaged in conduct 
127.7 	warranting disciplinary action as set forth in section 148.6448. The information must be 
127.8 	submitted within 30 calendar days from the date of the board's request.

127.9 	Sec. 54. Minnesota Statutes 2024, section 148.6425, is amended by adding a subdivision 
127.10 	to read:
127.11 		Subd. 4.Licensure renewal within two years after license expiration date. A licensee 
127.12 	whose application for license renewal is received more than one year but less than two years 
127.13 	after the expiration date must submit the following:
127.14 	(1) a completed and signed renewal application for licensure following lapse in licensed 
127.15 	status on forms provided by the board, including all information listed in subdivision 2, 
127.16 	clause (1);
127.17 	(2) the renewal fee and the late fee required under section 148.6445;
127.18 	(3) proof of having met the continuing education requirements in section 148.6443;
127.19 	(4) an employment verification form;
127.20 	(5) evidence of completion of a criminal background check as required under section 
127.21 	214.075 and the associated fee; and
127.22 	(6) additional information as requested by the board to clarify information in the 
127.23 	application, including information to determine whether the licensee has engaged in conduct 
127.24 	warranting disciplinary action as set forth in section 148.6448. The information must be 
127.25 	submitted within 30 calendar days from the date of the board's request.

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

128.3 	Sec. 56. Minnesota Statutes 2024, section 148.6428, is amended to read:
128.4 	148.6428 CHANGE OF CONTACT INFORMATION OR EMPLOYMENT.
128.5 	A licensee who changes a name, primary email address, address, employment, business 
128.6 	address, or business telephone number must inform the board of the change of name, primary 
128.7 	email address, address, employment, business address, or business telephone number within 
128.8 	30 calendar days from the effective date of the change. A change in name must be 
128.9 	accompanied by a copy of a marriage certificate, government-issued identification card, 
128.10 	Social Security card, or court order. All notices or other correspondence served on a licensee 
128.11 	by the board at the licensee's contact information on file with the board must be considered 
128.12 	as having been received by the licensee.

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

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

128.22 	Sec. 59. Minnesota Statutes 2024, section 148.6432, is amended by adding a subdivision 
128.23 	to read:
128.24 		Subd. 1a.Delegation of duties. (a) The occupational therapist may delegate to an 
128.25 	occupational therapy assistant those portions of the client's evaluation, reevaluation, and 
128.26 	intervention that, according to prevailing national practice standards, can be performed by 
128.27 	an occupational therapy assistant.
128.28 	(b) The occupational therapist is responsible for all duties delegated to the occupational 
128.29 	therapy assistant.
129.1 	(c) The occupational therapist may not delegate portions of an evaluation or reevaluation 
129.2 	of a person whose condition is changing rapidly.

129.3 	Sec. 60. Minnesota Statutes 2024, section 148.6432, subdivision 2, is amended to read:
129.4 		Subd. 2.Evaluations. The occupational therapist shall determine the frequency of 
129.5 	evaluations and reevaluations for each client. The occupational therapy assistant shall inform 
129.6 	the occupational therapist of the need for more frequent reevaluation if indicated by the 
129.7 	client's condition or response to treatment. Before delegating a portion of a client's evaluation 
129.8 	pursuant to section 148.6430 subdivision 1a, the occupational therapist shall ensure the 
129.9 	service competency of the occupational therapy assistant in performing the evaluation 
129.10 	procedure and shall provide supervision consistent with the condition of the patient or client 
129.11 	and the complexity of the evaluation procedure.

129.12 	Sec. 61. Minnesota Statutes 2024, section 148.6432, subdivision 3, is amended to read:
129.13 		Subd. 3.Intervention. (a) The occupational therapist must determine the frequency and 
129.14 	manner of supervision of an occupational therapy assistant performing intervention 
129.15 	procedures delegated pursuant to section 148.6430 subdivision 1a based on the condition 
129.16 	of the patient or client, the complexity of the intervention procedure, and the service 
129.17 	competency of the occupational therapy assistant.
129.18 	(b) Face-to-face collaboration between the occupational therapist and the occupational 
129.19 	therapy assistant must occur for all clients every ten intervention days or every 30 days, 
129.20 	whichever comes first, during which time the occupational therapist is responsible for:
129.21 	(1) planning and documenting an initial intervention plan and discharge from 
129.22 	interventions;
129.23 	(2) reviewing intervention goals, therapy programs, and client progress;
129.24 	(3) supervising changes in the intervention plan;
129.25 	(4) conducting or observing intervention procedures for selected clients and documenting 
129.26 	appropriateness of intervention procedures. Clients must be selected based on the 
129.27 	occupational therapy services provided to the client and the role of the occupational therapist 
129.28 	and the occupational therapy assistant in those services; and
129.29 	(5) ensuring the service competency of the occupational therapy assistant in performing 
129.30 	delegated intervention procedures.
130.1 	(c) Face-to-face collaboration must occur more frequently if necessary to meet the 
130.2 	requirements of paragraph (a) or (b).
130.3 	(d) The occupational therapist must document compliance with this subdivision in the 
130.4 	client's file or chart.

130.5 	Sec. 62. Minnesota Statutes 2024, section 148.6432, subdivision 4, is amended to read:
130.6 		Subd. 4.Exception. (a) The supervision requirements of this section do not apply to an 
130.7 	occupational therapy assistant who:
130.8 	(1) works in an activities program; and
130.9 	(2) does not perform occupational therapy services.
130.10 	(b) The occupational therapy assistant must meet all other applicable requirements of 
130.11 	sections 148.6401 to 148.6449 148.645.

130.12 	Sec. 63. Minnesota Statutes 2024, section 148.6435, is amended to read:
130.13 	148.6435 COORDINATION OF SERVICES.
130.14 	An occupational therapist must:
130.15 	(1) collect information necessary to ensure that the provision of occupational therapy 
130.16 	services are consistent with the client's physical and mental health status. The information 
130.17 	required to make this determination may include, but is not limited to, contacting the client's 
130.18 	licensed health care professional for health history, current health status, current medications, 
130.19 	and precautions;
130.20 	(2) modify or terminate occupational therapy intervention of a client that is not beneficial 
130.21 	to the client, not tolerated by the client, or refused by the client, and if intervention was 
130.22 	terminated for a medical reason, notify the client's licensed health care professional by 
130.23 	correspondence postmarked or delivered to the licensed health care professional within one 
130.24 	week of the termination of intervention;
130.25 	(3) (2) refer a client to an appropriate health care, social service, or education practitioner 
130.26 	if the client's condition requires services not within the occupational therapist's service 
130.27 	competency or not within the practice of occupational therapy generally, or if the client's 
130.28 	acuity warrants alternative care; and
130.29 	(4) (3) participate and cooperate in the coordination of occupational therapy services 
130.30 	with other related services, as a member of the professional community serving the client.

131.1 	Sec. 64. Minnesota Statutes 2024, section 148.6438, is amended to read:
131.2 	148.6438 RECIPIENT NOTIFICATION.
131.3 		Subdivision 1.Required notification. (a) In the absence of a physician, advanced 
131.4 	practice registered nurse, or physician assistantlicensed health care provider referral or 
131.5 	prior authorization, and before providing occupational therapy services for remuneration 
131.6 	or expectation of payment from the client, an occupational therapist must provide the 
131.7 	following written notification in all capital letters of 12-point or larger boldface type, to the 
131.8 	client, parent, or guardian in a format meeting national accessibility standards and the needs 
131.9 	of the client, parent, or guardian:
131.10 	"Your health care provider, insurer, or plan may require a physician, advanced practice 
131.11 	registered nurse, or physician assistant licensed health care provider referral or prior 
131.12 	authorization and you may be obligated for partial or full payment for occupational therapy 
131.13 	services rendered."
131.14 	(b) Information other than this notification may be included as long as the notification 
131.15 	remains conspicuous on the face of the document. A nonwritten disclosure format may be 
131.16 	used to satisfy the recipient notification requirement when necessary to accommodate the 
131.17 	physical condition of a client or client's guardian.
131.18 		Subd. 2.Evidence of recipient notification. The occupational therapist is responsible 
131.19 	for providing evidence of compliance with the recipient notification requirement of this 
131.20 	section with documentation of the client, parent, or guardian agreement.

131.21 	Sec. 65. Minnesota Statutes 2024, section 148.6443, subdivision 3, is amended to read:
131.22 		Subd. 3.Activities qualifying for continuing education contact hours. (a) The activities 
131.23 	in this subdivision qualify for continuing education contact hours if they meet all other 
131.24 	requirements of this section.
131.25 	(b) A minimum of one-half of the required contact hours must be directly related to 
131.26 	occupational therapy practice. The remaining contact hours may be related to occupational 
131.27 	therapy practice, the delivery of occupational therapy services, or to the practitioner's current 
131.28 	professional role.
131.29 	(c) A licensee may obtain an unlimited number of contact hours in any two-year 
131.30 	continuing education period through participation in the following:
131.31 	(1) attendance at educational programs of annual conferences, lectures, panel discussions, 
131.32 	workshops, in-service training, seminars, and symposiums;
132.1 	(2) successful completion of college or university courses. The licensee must obtain a 
132.2 	grade of at least a "C" or a pass in a pass/fail course in order to receive credit. One college 
132.3 	credit equals six continuing education contact hours; or
132.4 	(3) successful completion of home study courses that require the participant to 
132.5 	demonstrate the participant's knowledge following completion of the course provide 
132.6 	documentation that the course was completed and that meet the requirements in subdivision 
132.7 	2.
132.8 	(d) A licensee may obtain a maximum of one-half of the required contact hours in any 
132.9 	two-year continuing education period for:
132.10 	(1) teaching continuing education or occupational therapy related courses that meet the 
132.11 	requirements of this section. A licensee is entitled to earn a maximum of two contact hours 
132.12 	as preparation time for each contact hour of presentation time. Contact hours may be claimed 
132.13 	only once for teaching the same course in any two-year continuing education period. A 
132.14 	course schedule or brochure must be maintained for audit;
132.15 	(2) supervising occupational therapist or occupational therapy assistant students. A 
132.16 	licensee may earn one contact hour for every eight hours of student supervision. Licensees 
132.17 	must ensure they receive documentation regarding each student supervised and the dates 
132.18 	and hours each student was supervised. Contact hours obtained by student supervision must 
132.19 	be obtained by supervising students from an occupational therapy education program 
132.20 	accredited by the Accreditation Council for Occupational Therapy Education; and
132.21 	(3) teaching or participating in courses related to leisure activities, recreational activities, 
132.22 	or hobbies if the practitioner uses these interventions within the practitioner's current practice 
132.23 	or employment; and
132.24 	(4)(3) engaging in research activities or outcome studies that are related to the practice 
132.25 	of occupational therapy and associated with grants, postgraduate studies, or publications in 
132.26 	professional journals or books.
132.27 	(e) A licensee may obtain a maximum of two contact hours in any two-year continuing 
132.28 	education period for continuing education activities in the following areas:
132.29 	(1) personal skill topics: career burnout, communication skills, human relations, and 
132.30 	similar topics;
132.31 	(2) training that is obtained in conjunction with a licensee's employment, occurs during 
132.32 	a licensee's normal workday, and does not include subject matter specific to the fundamentals 
132.33 	of occupational therapy basic life support and CPR training; and
133.1 	(3) participation for a minimum of one year on a professional committee or board.

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

133.9 	Sec. 67. Minnesota Statutes 2024, section 148.6443, subdivision 5, is amended to read:
133.10 		Subd. 5.Reporting continuing education contact hours. Each licensee must use the 
133.11 	continuing education reporting form to verify meeting the continuing education requirements 
133.12 	of this section. The licensee must maintain documentation, including but not limited to a 
133.13 	signed certificate, transcript, or similar evidence of participation in an activity. The 
133.14 	documentation must include a:
133.15 	(1) the title of the continuing education activity;
133.16 	(2) a brief description of the continuing education activity prepared by the presenter or 
133.17 	sponsor;
133.18 	(3) the name of the sponsor, presenter, or author;
133.19 	(4) the location and attendance dates;
133.20 	(5) the number of contact hours; and
133.21 	(6) the licensee's name.

133.22 	Sec. 68. Minnesota Statutes 2024, section 148.6443, subdivision 6, is amended to read:
133.23 		Subd. 6.Auditing continuing education reports. (a) The board may audit a percentage 
133.24 	of the continuing education reports based on random selection. A licensee shall maintain 
133.25 	all documentation required by this section for two years after the last day of the biennial 
133.26 	licensure period in which the contact hours were earned.
133.27 	(b) All renewal applications that are received after the expiration date may be subject 
133.28 	to a continuing education report audit.
133.29 	(c) Any licensee against whom a complaint is filed may be subject to a continuing 
133.30 	education report audit.
134.1 	(d) The licensee shall make the following information available to the board for auditing 
134.2 	purposes:
134.3 	(1) a copy of the completed continuing education reporting form for the continuing 
134.4 	education reporting period that is the subject of the audit including all supporting 
134.5 	documentation required by subdivision 5;
134.6 	(2) documentation of university, college, or vocational school courses by a transcript 
134.7 	and a course syllabus, listing in a course bulletin, or equivalent documentation that includes 
134.8 	the course title, instructor's name, course dates, number of contact hours, and course content, 
134.9 	objectives, or goals; and
134.10 	(3) verification of attendance by that meets the requirements of subdivision 5 by 
134.11 	submitting:
134.12 	(i) a signature ofcertificate of attendance, or if a certificate is not available, other 
134.13 	documentation from the presenter or a designee at the continuing education activity on the 
134.14 	continuing education report form or a certificate of attendance with the course name, course 
134.15 	date, and licensee's name submitted directly to the board confirming the requirements; or
134.16 	(ii) a summary or outline of the educational content of an audio or video educational 
134.17 	activity to verify the licensee's participation in the activity if a designee is not available to 
134.18 	sign the continuing education report form; or
134.19 	(iii) (ii) verification of self-study programs by a certificate of completion or other 
134.20 	documentation indicating that the individual has demonstrated knowledge and has 
134.21 	successfully completed the program.

134.22 	Sec. 69. Minnesota Statutes 2024, section 148.6443, subdivision 7, is amended to read:
134.23 		Subd. 7.Waiver Deferral of continuing education requirements. The board may 
134.24 	waive or defer all or part of the continuing education requirements of this section if the 
134.25 	licensee submits a written request and provides satisfactory evidence to the board of illness, 
134.26 	injury, financial hardship, family hardship, or other similar extenuating circumstances that 
134.27 	preclude completion of the requirements during the licensure period. The request for a 
134.28 	waiver deferral must be in writing, state the circumstances that constitute hardship, state 
134.29 	the period of time the licensee wishes to have the continuing education requirement waived
134.30 	deferred, and state the alternative measures that will be taken if a waiver deferral is granted. 
134.31 	The board must set forth, in writing, the reasons for granting or denying the waiver deferral. 
134.32 	Waivers Deferrals granted by the board must specify, in writing, the time limitation and 
134.33 	required alternative measures to be taken by the licensee. A request for waiver deferral must 
135.1 	be denied if the board finds that the circumstances stated by the licensee do not support a 
135.2 	claim of hardship, the requested time period for waiver deferral is unreasonable, the 
135.3 	alternative measures proposed by the licensee are not equivalent to the continuing education 
135.4 	activity being waived deferred, or the request for waiver deferral is not submitted to the 
135.5 	board within 60 calendar days of the expiration date.

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

135.15 	Sec. 71. Minnesota Statutes 2024, section 148.6445, is amended by adding a subdivision 
135.16 	to read:
135.17 		Subd. 5a.Compact privilege fee.  The fee for interstate licensure compact privilege to 
135.18 	practice is $150.

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

135.23 	Sec. 73. Minnesota Statutes 2024, section 148.6448, subdivision 1, is amended to read:
135.24 		Subdivision 1.Grounds for denial of licensure or discipline. The board may deny an 
135.25 	application for licensure, may approve licensure with conditions, or may discipline a licensee 
135.26 	using any disciplinary actions listed in subdivision 3 on proof that the individual has:
135.27 	(1) intentionally submitted false or misleading information to the board;
135.28 	(2) obtained a license by means of fraud, misrepresentation, or concealment of material 
135.29 	facts;
136.1 	(3) failed, within 30 days, to provide information in response to a written request by the 
136.2 	board;
136.3 	(3) (4) performed services of an occupational therapist or occupational therapy assistant
136.4 	practitioner in an incompetent manner or in a manner that falls below the community standard 
136.5 	of care or national practice standards of care;
136.6 	(4) (5) failed to satisfactorily perform occupational therapy services during a period of 
136.7 	temporary licensure;
136.8 	(5) (6) violated sections 148.6401 to 148.6449 148.645;
136.9 	(6) (7) failed to perform services with reasonable judgment, skill, or safety due to the 
136.10 	use of alcohol or drugs, or other physical or mental impairment;
136.11 	(7) (8) been convicted of violating any state or federal law, rule, or regulation which 
136.12 	directly that reasonably relates to the practice of occupational therapy;
136.13 	(9) failed to report other licensees that have violated sections 148.6401 to 148.645;
136.14 	(8) (10) aided or abetted another person in violating any provision of sections 148.6401
136.15 	to 148.6449 148.645;
136.16 	(9) (11) been disciplined for conduct in the practice of an occupation by the state of 
136.17 	Minnesota, another jurisdiction, or a national professional association, if any of the grounds 
136.18 	for discipline are the same or substantially equivalent to those in sections 148.6401 to 
136.19 	148.6449 148.645;
136.20 	(10) (12) not cooperated with the board in an investigation conducted according to 
136.21 	subdivision 2;
136.22 	(11) (13) advertised in a manner that is false or misleading;
136.23 	(12) (14) engaged in dishonest, unethical, or unprofessional conduct in connection with 
136.24 	the practice of occupational therapy that is likely to deceive, defraud, or harm the public;
136.25 	(15) improperly managed client records, including but not limited to failure to maintain 
136.26 	client records in a manner that meets community standards of care or nationally accepted 
136.27 	practice standards;
136.28 	(13)(16) demonstrated a willful or careless disregard for the health, welfare, or safety 
136.29 	of a client;
136.30 	(17) inappropriately supervised or delegated or assigned tasks to an occupational therapy 
136.31 	assistant, occupational therapy student, rehabilitation aide, or other licensed professional;
137.1 	(14) (18) performed medical diagnosis or provided intervention, other than occupational 
137.2 	therapy, without being licensed to do so under the laws of this state;
137.3 	(15) (19) paid or promised to pay a commission or part of a fee to any person who 
137.4 	contacts the occupational therapist therapy practitioner for consultation or sends patients to 
137.5 	the occupational therapist therapy practitioner for intervention;
137.6 	(16) (20) engaged in an incentive payment arrangement, other than that prohibited by 
137.7 	clause (15) (19), that promotes occupational therapy overutilization, whereby the referring 
137.8 	person or person who controls the availability of occupational therapy services to a client 
137.9 	profits unreasonably as a result of client intervention;
137.10 	(17) (21) engaged in abusive or fraudulent billing practices, including violations of 
137.11 	federal Medicare and Medicaid laws, Food and Drug Administration regulations, or state 
137.12 	medical assistance laws;
137.13 	(18) (22) obtained money, property, or services from a consumer through the use of 
137.14 	undue influence, high pressure sales tactics, harassment, duress, deception, or fraud;
137.15 	(19) (23) performed services for a client who had no possibility of benefiting from the 
137.16 	services;
137.17 	(20) (24) failed to refer a client for medical evaluation when appropriate or when a client 
137.18 	indicated symptoms associated with diseases that could be medically or surgically treated;
137.19 	(21) (25) engaged in conduct with a client that is sexual or may reasonably be interpreted 
137.20 	by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning to 
137.21 	a patient;
137.22 	(22) (26) violated a federal or state court order, including a conciliation court judgment, 
137.23 	or a disciplinary order issued by the board, related to the person's occupational therapy 
137.24 	practice; or
137.25 	(23)(27) any other just cause related to the practice of occupational therapy.

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

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

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

138.13 	Sec. 77. Minnesota Statutes 2024, section 148.6449, subdivision 1, is amended to read:
138.14 		Subdivision 1.Creation. The Board of Occupational Therapy Practice consists of 11 
138.15 	members appointed by the governor. The members are:
138.16 	(1) five occupational therapists licensed under sections 148.6401 to 148.6449 148.645;
138.17 	(2) three occupational therapy assistants licensed under sections 148.6401 to 148.6449
138.18 	148.645; and
138.19 	(3) three public members, including two members who have received occupational 
138.20 	therapy services or have a family member who has received occupational therapy services, 
138.21 	and one member who is a health care professional or health care provider licensed in 
138.22 	Minnesota.

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

139.1 	Sec. 79. Minnesota Statutes 2024, section 148.6449, subdivision 7, is amended to read:
139.2 		Subd. 7.Duties of the Board of Occupational Therapy Practice. (a) The board shall:
139.3 	(1) adopt and enforce rules and laws necessary for licensing occupational therapy 
139.4 	practitioners;
139.5 	(2) adopt and enforce rules for regulating the professional conduct of the practice of 
139.6 	occupational therapy;
139.7 	(3) issue licenses to qualified individuals in accordance with sections 148.6401 to 
139.8 	148.6449 148.645;
139.9 	(4) assess and collect fees for the issuance and renewal of licenses;
139.10 	(5) educate the public about the requirements for licensing occupational therapy 
139.11 	practitioners, educate occupational therapy practitioners about the rules of conduct, and 
139.12 	enable the public to file complaints against applicants and licensees who may have violated 
139.13 	sections 148.6401 to 148.6449 148.645; and
139.14 	(6) investigate individuals engaging in practices that violate sections 148.6401 to 
139.15 	148.6449 148.645 and take necessary disciplinary, corrective, or other action according to 
139.16 	section 148.6448.
139.17 	(b) The board may adopt rules necessary to define standards or carry out the provisions 
139.18 	of sections 148.6401 to 148.6449 148.645. Rules shall be adopted according to chapter 14.

139.19 	Sec. 80. Minnesota Statutes 2024, section 148B.53, subdivision 3, is amended to read:
139.20 		Subd. 3.Fee Fees. Nonrefundable fees are as follows:
139.21 	(1) initial license application fee for licensed professional counseling (LPC) - $150;
139.22 	(2) initial license fee for LPC - $250;
139.23 	(3) annual active license renewal fee for LPC - $250 or equivalent;
139.24 	(4) annual inactive license renewal fee for LPC - $125;
139.25 	(5) initial license application fee for licensed professional clinical counseling (LPCC) - 
139.26 	$150;
139.27 	(6) initial license fee for LPCC - $250;
139.28 	(7) annual active license renewal fee for LPCC - $250 or equivalent;
139.29 	(8) annual inactive license renewal fee for LPCC - $125;
140.1 	(9) license renewal late fee - $100 per month or portion thereof;
140.2 	(10) copy of board order or stipulation - $10;
140.3 	(11) certificate of good standing or license verification - $25;
140.4 	(12) duplicate certificate fee - $25;
140.5 	(13) professional firm renewal fee - $25;
140.6 	(14) sponsor application for approval of a continuing education course - $60;
140.7 	(15) initial registration fee - $50;
140.8 	(16) annual registration renewal fee - $25;
140.9 	(17) approved supervisor application processing fee - $30; and
140.10 	(18) temporary license for members of the military - $250; and
140.11 	(19) interstate compact privilege to practice fee - not to exceed $100.

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

140.13 	Sec. 81. Minnesota Statutes 2024, section 148E.180, subdivision 1, is amended to read:
140.14 		Subdivision 1.Application fees. (a) Nonrefundable application fees for licensure may 
140.15 	not exceed the following amounts but may be adjusted lower by board action:
140.16 	(1) for a licensed social worker, $75;
140.17 	(2) for a licensed graduate social worker, $75;
140.18 	(3) for a licensed independent social worker, $75;
140.19 	(4) for a licensed independent clinical social worker, $75;
140.20 	(5) for a temporary license, $50; and
140.21 	(6) for a license by endorsement, $115; and
140.22 	(7) for a compact multistate license, $75.
140.23 	(b) The fee for criminal background checks is the fee charged by the Bureau of Criminal 
140.24 	Apprehension. The criminal background check fee must be included with the application 
140.25 	fee as required according to section 148E.055.

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

141.1 	Sec. 82. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
141.2 	to read:
141.3 		Subd. 2a.Compact multistate license fees. Nonrefundable compact multistate license 
141.4 	fees must not exceed the following amounts but may be adjusted lower by board action:
141.5 	(1) for a licensed social worker, $115;
141.6 	(2) for a licensed graduate social worker, $210;
141.7 	(3) for a licensed independent social worker, $305; and
141.8 	(4) for a licensed independent clinical social worker, $335.

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

141.10 	Sec. 83. Minnesota Statutes 2024, section 148E.180, is amended by adding a subdivision 
141.11 	to read:
141.12 		Subd. 3a.Compact multistate renewal fees. Nonrefundable renewal fees for compact 
141.13 	multistate licensure must not exceed the following amounts but may be adjusted lower by 
141.14 	board action:
141.15 	(1) for a licensed social worker, $115;
141.16 	(2) for a licensed graduate social worker, $210;
141.17 	(3) for a licensed independent social worker, $305; and
141.18 	(4) for a licensed independent clinical social worker, $335.

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

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

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

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

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

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

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

142.15 	Sec. 88. [148G.03] DEFINITIONS.
142.16 		Subdivision 1.Scope. For purposes of this chapter, the definitions in this section have 
142.17 	the meanings given.
142.18 		Subd. 2.Board. "Board" means the Minnesota Board of Nursing.
142.19 		Subd. 3.Certification. "Certification" means the formal recognition by the American 
142.20 	Midwifery Certification Board of the knowledge, skills, and experience demonstrated by 
142.21 	the achievement of standards identified by the American College of Nurse Midwives or any 
142.22 	successor organization.
142.23 		Subd. 4.Certified midwife. "Certified midwife" means an individual who holds a current 
142.24 	and valid national certification as a certified midwife from the American Midwifery 
142.25 	Certification Board or any successor organization and who is licensed by the board under 
142.26 	this chapter.
142.27 		Subd. 5.Certified midwifery practice. "Certified midwifery practice" means:
142.28 	(1) managing, diagnosing, and treating women's primary health care beginning in 
142.29 	adolescence, including pregnancy, childbirth, the postpartum period, care of the newborn, 
143.1 	family planning, partner care management relating to sexual health, and gynecological care 
143.2 	of women;
143.3 	(2) ordering, performing, supervising, and interpreting diagnostic studies within the 
143.4 	scope of certified midwifery practice, excluding:
143.5 	(i) interpreting and performing specialized ultrasound examinations; and
143.6 	(ii) interpreting computed tomography scans, magnetic resonance imaging scans, positron 
143.7 	emission tomography scans, nuclear scans, and mammography;
143.8 	(3) prescribing pharmacologic and nonpharmacologic therapies appropriate to midwifery 
143.9 	practice;
143.10 	(4) consulting with, collaborating with, or referring to other health care providers as 
143.11 	warranted by the needs of the patient; and
143.12 	(5) performing the role of educator in the theory and practice of midwifery.
143.13 		Subd. 6.Collaborating. "Collaborating" means the process in which two or more health 
143.14 	care professionals work together to meet the health care needs of a patient, as warranted by 
143.15 	the needs of the patient.
143.16 		Subd. 7.Consulting. "Consulting" means the process in which a certified midwife who 
143.17 	maintains primary management responsibility for a patient's care seeks advice or opinion 
143.18 	of a physician, an advanced practice registered nurse, or another member of the health care 
143.19 	team.
143.20 		Subd. 8.Encumbered. "Encumbered" means:
143.21 	(1) a license or other credential that is revoked, is suspended, or contains limitations on 
143.22 	the full and unrestricted practice of certified midwifery when the revocation, suspension, 
143.23 	or limitation is imposed by a state licensing board or other state regulatory entity; or
143.24 	(2) a license or other credential that is voluntarily surrendered.
143.25 		Subd. 9.Licensure period. "Licensure period" means the interval of time during which 
143.26 	the certified midwife is authorized to engage in certified midwifery. The initial licensure 
143.27 	period is from six to 29 full calendar months starting on the day of licensure and ending on 
143.28 	the last day of the certified midwife's month of birth in an even-numbered year if the year 
143.29 	of birth is an even-numbered year, or in an odd-numbered year if the year of birth is an 
143.30 	odd-numbered year. Subsequent licensure renewal periods are 24 months. For licensure 
143.31 	renewal, the period starts on the first day of the month following expiration of the previous 
144.1 	licensure period. The period ends the last day of the certified midwife's month of birth in 
144.2 	an even- or odd-numbered year according to the certified midwife's year of birth.
144.3 		Subd. 10.Licensed practitioner. "Licensed practitioner" means a physician licensed 
144.4 	under chapter 147, an advanced practice registered nurse licensed under sections 148.171 
144.5 	to 148.235, or a certified midwife licensed under this chapter.
144.6 		Subd. 11.Midwifery education program. "Midwifery education program" means a 
144.7 	program of theory and practice offered by a university or college that leads to the preparation 
144.8 	and eligibility for certification in midwifery and is accredited by the Accreditation 
144.9 	Commission for Midwifery Education or any successor organization recognized by the 
144.10 	United States Department of Education or the Council for Higher Education Accreditation.
144.11 		Subd. 12.Patient. "Patient" means a recipient of care provided by a certified midwife 
144.12 	within the scope of certified midwifery practice, including an individual, family, group, or 
144.13 	community.
144.14 		Subd. 13.Prescribing. "Prescribing" means the act of generating a prescription for the 
144.15 	preparation of, use of, or manner of using a drug or therapeutic device under section 148G.09. 
144.16 	Prescribing does not include recommending the use of a drug or therapeutic device that is 
144.17 	not required by the federal Food and Drug Administration to meet the labeling requirements 
144.18 	for prescription drugs and devices.
144.19 		Subd. 14.Prescription. "Prescription" means a written direction or an oral direction 
144.20 	reduced to writing provided to or for a patient for the preparation or use of a drug or 
144.21 	therapeutic device. The requirements of section 151.01, subdivisions 16, 16a, and 16b, apply 
144.22 	to prescriptions for drugs.
144.23 		Subd. 15.Referral. "Referral" means the process in which a certified midwife directs 
144.24 	a patient to a physician or another health care professional for management of a particular 
144.25 	problem or aspect of the patient's care.
144.26 		Subd. 16.Supervision. "Supervision" means monitoring and establishing the initial 
144.27 	direction of, setting expectations for, directing activities in, evaluating, and changing a 
144.28 	course of action in certified midwifery care.

144.29 	Sec. 89. [148G.04] CERTIFIED MIDWIFE LICENSING.
144.30 		Subdivision 1.Licensure. (a) No person shall practice as a certified midwife or serve 
144.31 	as the faculty of record for clinical instruction in a midwifery distance learning program 
144.32 	unless the person is licensed by the board under this chapter.
145.1 	(b) An applicant for a license to practice as a certified midwife must apply to the board 
145.2 	in a format prescribed by the board and pay a fee in an amount determined under section 
145.3 	148G.11.
145.4 	(c) To be eligible for licensure, an applicant must:
145.5 	(1) not hold an encumbered license or other credential as a certified midwife or equivalent 
145.6 	professional designation in any state or territory;
145.7 	(2) hold a current and valid certification as a certified midwife from the American 
145.8 	Midwifery Certification Board or any successor organization acceptable to the board and 
145.9 	provide primary source verification of certification to the board in a format prescribed by 
145.10 	the board;
145.11 	(3) have completed a graduate-level midwifery education program that includes clinical 
145.12 	experience, is accredited by the Accreditation Commission for Midwifery Education or any 
145.13 	successor organization recognized by the United States Department of Education or the 
145.14 	Council for Higher Education Accreditation, and leads to a graduate degree. The applicant 
145.15 	must submit primary source verification of program completion to the board in a format 
145.16 	prescribed by the board. The primary source verification must verify the applicant completed 
145.17 	three separate graduate-level courses in physiology and pathophysiology; advanced health 
145.18 	assessment; and advanced pharmacology, including pharmacodynamics, pharmacokinetics, 
145.19 	and pharmacotherapeutics of all broad categories of agents;
145.20 	(4) report any criminal conviction, nolo contendere plea, Alford plea, or other plea 
145.21 	arrangement in lieu of conviction; and
145.22 	(5) not have committed any acts or omissions that are grounds for disciplinary action in 
145.23 	another jurisdiction or, if these acts were committed and would be grounds for disciplinary 
145.24 	action as set forth in section 148G.13, the board has found after an investigation that sufficient 
145.25 	remediation was made.
145.26 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
145.27 	applicant has practiced in the certified midwife role, the applicant must complete a 
145.28 	reorientation plan as a certified midwife. The plan must include supervision during the 
145.29 	clinical component by a licensed practitioner with experience in providing care to patients 
145.30 	with the same or similar health care needs. The applicant must submit the plan and the name 
145.31 	of the practitioner to the board. The plan must include a minimum of 500 hours of supervised 
145.32 	certified midwifery practice. The certified midwife must submit verification of completion 
145.33 	of the clinical reorientation to the board when the reorientation is complete.

146.1 	Sec. 90. [148G.05] LICENSURE RENEWAL; RELICENSURE.
146.2 		Subdivision 1.Renewal; current applicants. (a) A certified midwife must apply for 
146.3 	renewal of the certified midwife's license before the certified midwife's licensure period 
146.4 	ends. To be considered timely, the board must receive the certified midwife's application 
146.5 	on or before the last day of the certified midwife's licensure period. A certified midwife's 
146.6 	license lapses if the certified midwife's application is untimely.
146.7 	(b) An applicant for license renewal must provide the board evidence of current 
146.8 	certification or recertification as a certified midwife by the American Midwifery Certification 
146.9 	Board or any successor organization.
146.10 	(c) An applicant for license renewal must submit to the board the fee under section 
146.11 	148G.11, subdivision 2.
146.12 		Subd. 2.Clinical practice component. If more than five years have elapsed since the 
146.13 	applicant has practiced as a certified midwife, the applicant must complete a reorientation 
146.14 	plan as a certified midwife. The plan must include supervision during the clinical component 
146.15 	by a licensed practitioner with experience in providing care to patients with the same or 
146.16 	similar health care needs. The licensee must submit the plan and the name of the practitioner 
146.17 	to the board. The plan must include a minimum of 500 hours of supervised certified 
146.18 	midwifery practice. The certified midwife must submit verification of completion of the 
146.19 	clinical reorientation to the board when the reorientation is complete.
146.20 		Subd. 3.Relicensure; lapsed applicants. A person whose license has lapsed who desires 
146.21 	to resume practice as a certified midwife must apply for relicensure, submit to the board 
146.22 	satisfactory evidence of compliance with the procedures and requirements established by 
146.23 	the board, and pay the board the relicensure fee under section 148G.11, subdivision 4, for 
146.24 	the current licensure period. A penalty fee under section 148G.11, subdivision 4, is required 
146.25 	from a person who practiced certified midwifery without current licensure. The board must 
146.26 	relicense a person who meets the requirements of this subdivision.

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

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

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

147.13 	Sec. 94. [148G.09] PRESCRIBING DRUGS AND THERAPEUTIC DEVICES.
147.14 		Subdivision 1.Diagnosing, prescribing, and ordering. Certified midwives, within the 
147.15 	scope of certified midwifery practice, are authorized to:
147.16 	(1) diagnose, prescribe, and institute therapy or referrals of patients to health care agencies 
147.17 	and providers;
147.18 	(2) prescribe, procure, sign for, record, administer, and dispense over-the-counter, legend, 
147.19 	and controlled substances, including sample drugs; and
147.20 	(3) plan and initiate a therapeutic regimen that includes ordering and prescribing durable 
147.21 	medical devices and equipment, nutrition, diagnostic services, and supportive services, 
147.22 	including but not limited to home health care, physical therapy, and occupational therapy.
147.23 		Subd. 2.Drug Enforcement Administration requirements. (a) Certified midwives 
147.24 	must:
147.25 	(1) comply with federal Drug Enforcement Administration (DEA) requirements related 
147.26 	to controlled substances; and
147.27 	(2) file the certified midwife's DEA registrations and numbers, if any, with the board.
147.28 	(b) The board must maintain current records of all certified midwives with a DEA 
147.29 	registration and number.

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

148.4 	Sec. 96. [148G.11] FEE AMOUNTS.
148.5 		Subdivision 1.Licensure. The fee for licensure is $105.
148.6 		Subd. 2.Renewal. The fee for licensure renewal is $85.
148.7 		Subd. 3.Practicing without current certification. The penalty fee for a person who 
148.8 	practices certified midwifery without a current certification or recertification, or who practices 
148.9 	certified midwifery without current certification or recertification on file with the board, is 
148.10 	$200 for the first month or part of a month and an additional $100 for each subsequent 
148.11 	month or parts of months of practice. The penalty fee must be calculated from the first day 
148.12 	the certified midwife practiced without a current certification to the last day of practice 
148.13 	without a current certification, or from the first day the certified midwife practiced without 
148.14 	a current certification or recertification on file with the board until the day the current 
148.15 	certification or recertification is filed with the board.
148.16 		Subd. 4.Relicensure. The fee for relicensure is $105. The fee for practicing without 
148.17 	current licensure is two times the amount of the current renewal fee for any part of the first 
148.18 	calendar month, plus the current renewal fee for any part of each subsequent month up to 
148.19 	24 months.
148.20 		Subd. 5.Dishonored check fee. The service fee for a dishonored check is as provided 
148.21 	in section 604.113.

148.22 	Sec. 97. [148G.12] APPROVED MIDWIFERY EDUCATION PROGRAM.
148.23 		Subdivision 1.Initial approval. A university or college desiring to conduct a certified 
148.24 	midwifery education program must submit evidence to the board that the university or 
148.25 	college is prepared to:
148.26 	(1) provide a program of theory and practice in certified midwifery leading to eligibility 
148.27 	for certification in midwifery;
148.28 	(2) achieve preaccreditation and eventual full accreditation by the American Commission 
148.29 	for Midwifery Education or any successor organization recognized by the United States 
148.30 	Department of Education or the Council for Higher Education Accreditation. Instruction 
148.31 	and required experience may be obtained in one or more institutions or agencies outside 
149.1 	the applying university or college if the program retains accountability for all clinical and 
149.2 	nonclinical teaching; and
149.3 	(3) meet other standards established by law and by the board.
149.4 		Subd. 2.Continuing approval. The board must, through the board's representative, 
149.5 	annually survey all midwifery education programs in Minnesota for current accreditation 
149.6 	status by the American Commission for Midwifery Education or any successor organization 
149.7 	recognized by the United States Department of Education or the Council for Higher Education 
149.8 	Accreditation. If the results of the survey show that a certified midwifery education program 
149.9 	meets all standards for continuing accreditation, the board must continue approval of the 
149.10 	certified midwifery education program.
149.11 		Subd. 3.Loss of approval. If the board determines that an accredited certified midwifery 
149.12 	education program is not maintaining the standards required by the American Commission 
149.13 	on Midwifery Education or any successor organization, the board must obtain the defect in 
149.14 	writing from the accrediting body. If a program fails to correct the defect to the satisfaction 
149.15 	of the accrediting body and the accrediting body revokes the program's accreditation, the 
149.16 	board must remove the program from the list of approved certified midwifery education 
149.17 	programs.
149.18 		Subd. 4.Reinstatement of approval. The board must reinstate approval of a certified 
149.19 	midwifery education program upon submission of satisfactory evidence that the certified 
149.20 	midwifery education program of theory and practice meets the standards required by the 
149.21 	accrediting body.

149.22 	Sec. 98. [148G.13] GROUNDS FOR DISCIPLINARY ACTION.
149.23 		Subdivision 1.Grounds listed. The board may deny, revoke, suspend, limit, or condition 
149.24 	the license of any person to practice certified midwifery under this chapter or otherwise 
149.25 	discipline a licensee or applicant as described in section 148G.14. The following are grounds 
149.26 	for disciplinary action:
149.27 	(1) failure to demonstrate the qualifications or satisfy the requirements for a license 
149.28 	contained in this chapter or rules of the board. In the case of an applicant for licensure, the 
149.29 	burden of proof is upon the applicant to demonstrate the qualifications or satisfaction of the 
149.30 	requirements;
149.31 	(2) employing fraud or deceit in procuring or attempting to procure a license to practice 
149.32 	certified midwifery;
150.1 	(3) conviction of a felony or gross misdemeanor reasonably related to the practice of 
150.2 	certified midwifery. Conviction, as used in this subdivision, includes a conviction of an 
150.3 	offense that if committed in this state would be considered a felony or gross misdemeanor 
150.4 	without regard to its designation elsewhere, or a criminal proceeding where a finding or 
150.5 	verdict of guilt is made or returned, but the adjudication of guilt is either withheld or not 
150.6 	entered;
150.7 	(4) revocation, suspension, limitation, conditioning, or other disciplinary action against 
150.8 	the person's certified midwife credential in another state, territory, or country; failure to 
150.9 	report to the board that charges regarding the person's certified midwifery license, 
150.10 	certification, or other credential are pending in another state, territory, or country; or failure 
150.11 	to report to the board having been refused a license or other credential by another state, 
150.12 	territory, or country;
150.13 	(5) failure or inability to practice as a certified midwife with reasonable skill and safety, 
150.14 	or departure from or failure to conform to standards of acceptable and prevailing certified 
150.15 	midwifery practice, including failure of a certified midwife to adequately supervise or 
150.16 	monitor the performance of acts by any person working at the certified midwife's direction;
150.17 	(6) engaging in unprofessional conduct, including but not limited to a departure from 
150.18 	or failure to conform to statutes relating to certified midwifery practice or to the minimal 
150.19 	standards of acceptable and prevailing certified midwifery practice, or engaging in any 
150.20 	certified midwifery practice that may create unnecessary danger to a patient's life, health, 
150.21 	or safety. Actual injury to a patient need not be established under this clause;
150.22 	(7) supervision or accepting the supervision of a midwifery function or a prescribed 
150.23 	health care function when the acceptance could reasonably be expected to result in unsafe 
150.24 	or ineffective patient care;
150.25 	(8) actual or potential inability to practice certified midwifery with reasonable skill and 
150.26 	safety to patients by reason of illness; by the reason of use of alcohol, drugs, chemicals, or 
150.27 	any other material; or as a result of any mental or physical condition;
150.28 	(9) adjudication as mentally incompetent, mentally ill, a chemically dependent person, 
150.29 	or a person dangerous to the public by a court of competent jurisdiction, within or outside 
150.30 	of Minnesota;
150.31 	(10) engaging in any unethical conduct, including but not limited to conduct likely to 
150.32 	deceive, defraud, or harm the public, or demonstrating a willful or careless disregard for 
150.33 	the health, welfare, or safety of a patient. Actual injury need not be established under this 
150.34 	clause;
151.1 	(11) engaging in conduct with a patient that is sexual or may reasonably be interpreted 
151.2 	by the patient as sexual, in any verbal behavior that is seductive or sexually demeaning to 
151.3 	a patient, or in sexual exploitation of a patient or former patient;
151.4 	(12) obtaining money, property, or services from a patient, other than reasonable fees 
151.5 	for services provided to the patient, through the use of undue influence, harassment, duress, 
151.6 	deception, or fraud;
151.7 	(13) revealing a privileged communication from or relating to a patient except when 
151.8 	otherwise required or permitted by law;
151.9 	(14) engaging in abusive or fraudulent billing practices, including violations of federal 
151.10 	Medicare and Medicaid laws or state medical assistance laws;
151.11 	(15) improper management of patient records, including failure to maintain adequate 
151.12 	patient records, to comply with a patient's request made pursuant to sections 144.291 to 
151.13 	144.298, or to furnish a patient record or report required by law;
151.14 	(16) knowingly aiding, assisting, advising, or allowing an unlicensed person to engage 
151.15 	in the unlawful practice of certified midwifery;
151.16 	(17) violating a rule adopted by the board, an order of the board, a state or federal law 
151.17 	relating to the practice of certified midwifery, or a state or federal narcotics or controlled 
151.18 	substance law;
151.19 	(18) knowingly providing false or misleading information to a patient that is directly 
151.20 	related to the care of that patient unless done for an accepted therapeutic purpose such as 
151.21 	the administration of a placebo;
151.22 	(19) aiding suicide or aiding attempted suicide in violation of section 609.215 as 
151.23 	established by any of the following:
151.24 	(i) a copy of the record of criminal conviction or plea of guilty for a felony in violation 
151.25 	of section 609.215, subdivision 1 or 2;
151.26 	(ii) a copy of the record of a judgment of contempt of court for violating an injunction 
151.27 	issued under section 609.215, subdivision 4;
151.28 	(iii) a copy of the record of a judgment assessing damages under section 609.215, 
151.29 	subdivision 5; or
151.30 	(iv) a finding by the board that the person violated section 609.215, subdivision 1 or 2. 
151.31 	The board must investigate any complaint of a violation of section 609.215, subdivision 1 
151.32 	or 2;
152.1 	(20) practicing outside the scope of certified midwifery practice as defined under section 
152.2 	148G.03, subdivision 5;
152.3 	(21) making a false statement or knowingly providing false information to the board, 
152.4 	failing to make reports as required by section 148G.15, or failing to cooperate with an 
152.5 	investigation of the board as required by section 148G.17;
152.6 	(22) engaging in false, fraudulent, deceptive, or misleading advertising;
152.7 	(23) failure to inform the board of the person's certification or recertification status as 
152.8 	a certified midwife;
152.9 	(24) engaging in certified midwifery practice without a license and current certification 
152.10 	or recertification by the American Midwifery Certification Board or any successor 
152.11 	organization; or
152.12 	(25) failure to maintain appropriate professional boundaries with a patient. A certified 
152.13 	midwife must not engage in practices that create an unacceptable risk of patient harm or of 
152.14 	the impairment of a certified midwife's objectivity or professional judgment. A certified 
152.15 	midwife must not act or fail to act in a way that, as judged by a reasonable and prudent 
152.16 	certified midwife, inappropriately encourages the patient to relate to the certified midwife 
152.17 	outside of the boundaries of the professional relationship or in a way that interferes with 
152.18 	the patient's ability to benefit from certified midwife services. A certified midwife must not 
152.19 	use the professional relationship with a patient, student, supervisee, or intern to further the 
152.20 	certified midwife's personal, emotional, financial, sexual, religious, political, or business 
152.21 	benefit or interests.
152.22 		Subd. 2.Conviction of a felony-level criminal sexual offense. (a) Except as provided 
152.23 	in paragraph (e), the board must not grant or renew a license to practice certified midwifery 
152.24 	to any person who has been convicted on or after August 1, 2014, of any of the provisions 
152.25 	of section 609.342, subdivision 1 or 1a; 609.343, subdivision 1 or 1a; 609.344, subdivision 
152.26 	1 or 1a, paragraphs (c) to (g); or 609.345, subdivision 1 or 1a, paragraphs (c) to (g); or a 
152.27 	similar statute in another jurisdiction.
152.28 	(b) A license to practice certified midwifery is automatically revoked if the licensee is 
152.29 	convicted of an offense listed in paragraph (a).
152.30 	(c) A license to practice certified midwifery that has been denied or revoked under this 
152.31 	subdivision is not subject to chapter 364.
152.32 	(d) For purposes of this subdivision, "conviction" means a plea of guilty, a verdict of 
152.33 	guilty by a jury, or a finding of guilty by the court, unless the court stays imposition or 
153.1 	execution of the sentence and final disposition of the case is accomplished at a nonfelony 
153.2 	level.
153.3 	(e) The board may establish criteria whereby an individual convicted of an offense listed 
153.4 	in paragraph (a) may become licensed if the criteria:
153.5 	(1) utilize a rebuttable presumption that the applicant is not suitable for licensing;
153.6 	(2) provide a standard for overcoming the presumption; and
153.7 	(3) require that a minimum of ten years has elapsed since the applicant's sentence was 
153.8 	discharged.
153.9 	(f) The board must not consider an application under paragraph (e) if the board determines 
153.10 	that the victim involved in the offense was a patient or a client of the applicant at the time 
153.11 	of the offense.
153.12 		Subd. 3.Evidence. In disciplinary actions alleging a violation of subdivision 1, clause 
153.13 	(3) or (4), or 2, a copy of the judgment or proceeding under the seal of the court administrator 
153.14 	or of the administrative agency that entered the same is admissible into evidence without 
153.15 	further authentication and constitutes prima facie evidence of the violation concerned.
153.16 		Subd. 4.Examination; access to medical data. (a) If the board has probable cause to 
153.17 	believe that grounds for disciplinary action exist under subdivision 1, clause (8) or (9), it 
153.18 	may direct the applicant or certified midwife to submit to a mental or physical examination 
153.19 	or chemical dependency evaluation. For the purpose of this subdivision, when a certified 
153.20 	midwife licensed under this chapter is directed in writing by the board to submit to a mental 
153.21 	or physical examination or chemical dependency evaluation, that person is considered to 
153.22 	have consented and to have waived all objections to admissibility on the grounds of privilege. 
153.23 	Failure of the applicant or certified midwife to submit to an examination when directed 
153.24 	constitutes an admission of the allegations against the applicant or certified midwife, unless 
153.25 	the failure was due to circumstances beyond the person's control, and the board may enter 
153.26 	a default and final order without taking testimony or allowing evidence to be presented. A 
153.27 	certified midwife affected under this paragraph must, at reasonable intervals, be given an 
153.28 	opportunity to demonstrate that the competent practice of certified midwifery can be resumed 
153.29 	with reasonable skill and safety to patients. Neither the record of proceedings nor the orders 
153.30 	entered by the board in a proceeding under this paragraph may be used against a certified 
153.31 	midwife in any other proceeding.
153.32 	(b) Notwithstanding sections 13.384, 144.651, and 595.02, or any other law limiting 
153.33 	access to medical or other health data, the board may obtain medical data and health records 
154.1 	relating to a certified midwife or applicant for a license without that person's consent if the 
154.2 	board has probable cause to believe that grounds for disciplinary action exist under 
154.3 	subdivision 1, clause (8) or (9). The medical data may be requested from a provider, as 
154.4 	defined in section 144.291, subdivision 2; an insurance company; or a government agency, 
154.5 	including the Department of Human Services or Direct Care and Treatment. A provider, 
154.6 	insurance company, or government agency must comply with any written request of the 
154.7 	board under this subdivision and is not liable in any action for damages for releasing the 
154.8 	data requested by the board if the data are released pursuant to a written request under this 
154.9 	subdivision, unless the information is false and the provider giving the information knew 
154.10 	or had reason to believe the information was false. Information obtained under this 
154.11 	subdivision is classified as private data on individuals as defined in section 13.02.

154.12 	Sec. 99. [148G.14] FORMS OF DISCIPLINARY ACTION; AUTOMATIC 
154.13 	SUSPENSION; TEMPORARY SUSPENSION; REISSUANCE.
154.14 		Subdivision 1.Forms of disciplinary action. If the board finds that grounds for 
154.15 	disciplinary action exist under section 148G.13, it may take one or more of the following 
154.16 	actions:
154.17 	(1) deny the license application or application for license renewal;
154.18 	(2) revoke the license;
154.19 	(3) suspend the license;
154.20 	(4) impose limitations on the certified midwife's practice of certified midwifery, including 
154.21 	but not limited to limitation of scope of practice or the requirement of practice under 
154.22 	supervision;
154.23 	(5) impose conditions on the retention of the license, including but not limited to the 
154.24 	imposition of retraining or rehabilitation requirements or the conditioning of continued 
154.25 	practice on demonstration of knowledge or skills by appropriate examination, monitoring, 
154.26 	or other review;
154.27 	(6) impose a civil penalty not exceeding $10,000 for each separate violation. The amount 
154.28 	of the civil penalty must be fixed so as to deprive the certified midwife of any economic 
154.29 	advantage gained by reason of the violation charged; to reimburse the board for the cost of 
154.30 	counsel, investigation, and proceeding; and to discourage repeated violations;
154.31 	(7) order the certified midwife to provide unremunerated service;
154.32 	(8) censure or reprimand the certified midwife; or
155.1 	(9) any other action justified by the facts in the case.
155.2 		Subd. 2.Automatic suspension of license. (a) Unless the board orders otherwise, a 
155.3 	license to practice certified midwifery is automatically suspended if:
155.4 	(1) a guardian of a certified midwife is appointed by order of a court under sections 
155.5 	524.5-101 to 524.5-502;
155.6 	(2) the certified midwife is committed by order of a court under chapter 253B; or
155.7 	(3) the certified midwife is determined to be mentally incompetent, mentally ill, 
155.8 	chemically dependent, or a person dangerous to the public by a court of competent 
155.9 	jurisdiction within or outside of Minnesota.
155.10 	(b) The license remains suspended until the certified midwife is restored to capacity by 
155.11 	a court and, upon petition by the certified midwife, the suspension is terminated by the 
155.12 	board after a hearing or upon agreement between the board and the certified midwife.
155.13 		Subd. 3.Temporary suspension of license. In addition to any other remedy provided 
155.14 	by law, the board may, through its designated board member under section 214.10, 
155.15 	subdivision 2, temporarily suspend the license of a certified midwife without a hearing if 
155.16 	the board finds that there is probable cause to believe the certified midwife has violated a 
155.17 	statute or rule the board is empowered to enforce and continued practice by the certified 
155.18 	midwife would create a serious risk of harm to others. The suspension takes effect upon 
155.19 	written notice to the certified midwife, served by first-class mail, specifying the statute or 
155.20 	rule violated. The suspension must remain in effect until the board issues a temporary stay 
155.21 	of suspension or a final order in the matter after a hearing or upon agreement between the 
155.22 	board and the certified midwife. At the time it issues the suspension notice, the board must 
155.23 	schedule a disciplinary hearing to be held under the Administrative Procedure Act. The 
155.24 	board must provide the certified midwife at least 20 days' notice of any hearing held under 
155.25 	this subdivision. The board must schedule the hearing to begin no later than 30 days after 
155.26 	the issuance of the suspension order.
155.27 		Subd. 4.Reissuance. The board may reinstate and reissue a license to practice certified 
155.28 	midwifery, but as a condition may impose any disciplinary or corrective measure that it 
155.29 	might originally have imposed. Any person whose license has been revoked, suspended, or 
155.30 	limited may have the license reinstated and a new license issued when, at the discretion of 
155.31 	the board, the action is warranted, provided that the board must require the person to pay 
155.32 	the costs of the proceedings resulting in the revocation, suspension, or limitation of the 
155.33 	license; the relicensure fee; and the fee for the current licensure period. The cost of 
155.34 	proceedings includes but is not limited to the cost paid by the board to the Office of 
156.1 	Administrative Hearings and the Office of the Attorney General for legal and investigative 
156.2 	services; the costs of a court reporter and witnesses, reproduction of records, board staff 
156.3 	time, travel, and expenses; and the costs of board members' per diem reimbursements, travel 
156.4 	costs, and expenses.

156.5 	Sec. 100. [148G.15] REPORTING OBLIGATIONS.
156.6 		Subdivision 1.Permission to report. A person who has knowledge of any conduct 
156.7 	constituting grounds for discipline under section 148G.13 may report the alleged violation 
156.8 	to the board.
156.9 		Subd. 2.Institutions. The chief nursing executive or chief administrative officer of any 
156.10 	hospital, clinic, prepaid medical plan, or other health care institution or organization located 
156.11 	in Minnesota must report to the board any action taken by the institution or organization or 
156.12 	any of its administrators or committees to revoke, suspend, limit, or condition a certified 
156.13 	midwife's privilege to practice in the institution or as part of the organization, any denial of 
156.14 	privileges, any dismissal from employment, or any other disciplinary action. The institution 
156.15 	or organization must also report the resignation of any certified midwife before the conclusion 
156.16 	of any disciplinary proceeding or before commencement of formal charges, but after the 
156.17 	certified midwife had knowledge that formal charges were contemplated or in preparation. 
156.18 	The reporting described by this subdivision is required only if the action pertains to grounds 
156.19 	for disciplinary action under section 148G.13.
156.20 		Subd. 3.Licensed professionals. A person licensed by a health-related licensing board 
156.21 	as defined in section 214.01, subdivision 2, must report to the board personal knowledge 
156.22 	of any conduct the person reasonably believes constitutes grounds for disciplinary action 
156.23 	under section 148G.13 by any certified midwife, including conduct indicating that the 
156.24 	certified midwife may be incompetent, may have engaged in unprofessional or unethical 
156.25 	conduct, or may be mentally or physically unable to engage safely in the practice of certified 
156.26 	midwifery.
156.27 		Subd. 4.Insurers. (a) By the first day of February, May, August, and November each 
156.28 	year, each insurer authorized to sell insurance described in section 60A.06, subdivision 1, 
156.29 	clause (13), and providing professional liability insurance to certified midwives must submit 
156.30 	to the board a report concerning any certified midwife against whom a malpractice award 
156.31 	has been made or who has been a party to a settlement. The report must contain at least the 
156.32 	following information:
156.33 	(1) the total number of settlements or awards;
157.1 	(2) the date a settlement or award was made;
157.2 	(3) the allegations contained in the claim or complaint leading to the settlement or award;
157.3 	(4) the dollar amount of each malpractice settlement or award and whether that amount 
157.4 	was paid as a result of a settlement or of an award; and
157.5 	(5) the name and address of the practice of the certified midwife against whom an award 
157.6 	was made or with whom a settlement was made.
157.7 	(b) An insurer must also report to the board any information it possesses that tends to 
157.8 	substantiate a charge that a certified midwife may have engaged in conduct in violation of 
157.9 	this chapter.
157.10 		Subd. 5.Courts. The court administrator of district court or another court of competent 
157.11 	jurisdiction must report to the board any judgment or other determination of the court that 
157.12 	adjudges or includes a finding that a certified midwife is a person who is mentally ill, 
157.13 	mentally incompetent, chemically dependent, dangerous to the public, guilty of a felony or 
157.14 	gross misdemeanor, guilty of a violation of federal or state narcotics laws or controlled 
157.15 	substances act, guilty of operating a motor vehicle while under the influence of alcohol or 
157.16 	a controlled substance, or guilty of an abuse or fraud under Medicare or Medicaid; or if the 
157.17 	court appoints a guardian of the certified midwife under sections 524.5-101 to 524.5-502 
157.18 	or commits a certified midwife under chapter 253B.
157.19 		Subd. 6.Deadlines; forms. Reports required by subdivisions 2, 3, and 5 must be 
157.20 	submitted no later than 30 days after the occurrence of the reportable event or transaction. 
157.21 	The board may provide forms for the submission of reports required under this section, may 
157.22 	require that the reports be submitted on the forms provided, and may adopt rules necessary 
157.23 	to ensure prompt and accurate reporting. The board must review all reports, including those 
157.24 	submitted after the deadline.
157.25 		Subd. 7.Failure to report. Any person, institution, insurer, or organization that fails to 
157.26 	report as required under subdivisions 2 to 6 is subject to civil penalties for failing to report 
157.27 	as required by law.

157.28 	Sec. 101. [148G.16] IMMUNITY.
157.29 		Subdivision 1.Reporting. Any person, health care facility, business, or organization is 
157.30 	immune from civil liability and criminal prosecution for submitting in good faith a report 
157.31 	to the board under section 148G.15 or for otherwise reporting in good faith to the board 
157.32 	violations or alleged violations of this chapter. All such reports are investigative data as 
157.33 	defined in chapter 13.
158.1 		Subd. 2.Investigation. (a) Members of the board, persons employed by the board or 
158.2 	engaged in the investigation of violations and in the preparation and management of charges 
158.3 	of violations of this chapter on behalf of the board, or persons participating in the 
158.4 	investigation or testifying regarding charges of violations are immune from civil liability 
158.5 	and criminal prosecution for any actions, transactions, or publications in the execution of, 
158.6 	or relating to, their duties under this chapter.
158.7 	(b) Members of the board and persons employed by the board or engaged in maintaining 
158.8 	records and making reports regarding adverse health care events are immune from civil 
158.9 	liability and criminal prosecution for any actions, transactions, or publications in the 
158.10 	execution of, or relating to, their duties under this chapter.

158.11 	Sec. 102. [148G.17] CERTIFIED MIDWIFE COOPERATION.
158.12 	A certified midwife who is the subject of an investigation by or on behalf of the board 
158.13 	must cooperate fully with the investigation. Cooperation includes responding fully and 
158.14 	promptly to any question raised by or on behalf of the board relating to the subject of the 
158.15 	investigation and providing copies of patient or other records in the certified midwife's 
158.16 	possession, as reasonably requested by the board, to assist the board in its investigation and 
158.17 	to appear at conferences and hearings scheduled by the board. The board must pay for copies 
158.18 	requested. If the board does not have written consent from a patient permitting access to 
158.19 	the patient's records, the certified midwife must delete any data in the record that identify 
158.20 	the patient before providing it to the board. The board must maintain any records obtained 
158.21 	pursuant to this section as investigative data under chapter 13. The certified midwife must 
158.22 	not be excused from giving testimony or producing any documents, books, records, or 
158.23 	correspondence on the grounds of self-incrimination, but the testimony or evidence must 
158.24 	not be used against the certified midwife in any criminal case.

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

158.29 	Sec. 104. [148G.19] EXEMPTIONS.
158.30 	The provisions of this chapter do not prohibit:
158.31 	(1) the furnishing of certified midwifery assistance in an emergency;
159.1 	(2) the practice of certified midwifery by any legally qualified certified midwife of 
159.2 	another state who is employed by the United States government or any bureau, division, or 
159.3 	agency thereof while in the discharge of official duties;
159.4 	(3) the practice of any profession or occupation licensed by Minnesota, other than 
159.5 	certified midwifery, by any person licensed to practice the profession or occupation, or the 
159.6 	performance by a person of any acts properly coming within the scope of the profession, 
159.7 	occupation, or license;
159.8 	(4) the practice of traditional midwifery as specified under section 147D.03;
159.9 	(5) certified midwifery practice by a student practicing under the supervision of an 
159.10 	instructor while the student is enrolled in an approved certified midwifery education program; 
159.11 	or
159.12 	(6) certified midwifery practice by a certified midwife licensed in another state, territory, 
159.13 	or jurisdiction who is in Minnesota temporarily:
159.14 	(i) providing continuing or in-service education;
159.15 	(ii) serving as a guest lecturer;
159.16 	(iii) presenting at a conference; or
159.17 	(iv) teaching didactic content via distance education to a student located in Minnesota 
159.18 	who is enrolled in a formal, structured course of study, such as a course leading to a higher 
159.19 	degree in midwifery.

159.20 	Sec. 105. [148G.20] VIOLATIONS; PENALTY.
159.21 		Subdivision 1.Violations described. It is unlawful for any person, corporation, firm, 
159.22 	or association to:
159.23 	(1) sell or fraudulently obtain or furnish any certified midwifery diploma, license, or 
159.24 	record, or aid or abet therein;
159.25 	(2) practice certified midwifery under cover of any diploma, permit, license, certified 
159.26 	midwife credential, or record illegally or fraudulently obtained or signed or issued unlawfully 
159.27 	or under fraudulent representation;
159.28 	(3) practice certified midwifery unless the person is licensed to do so under this chapter;
159.29 	(4) use the professional title certified midwife or licensed certified midwife unless 
159.30 	licensed to practice certified midwifery under this chapter;
160.1 	(5) use any abbreviation or other designation tending to imply licensure as a certified 
160.2 	midwife unless licensed to practice certified midwifery under this chapter;
160.3 	(6) practice certified midwifery in a manner prohibited by the board in any limitation 
160.4 	of a license issued under this chapter;
160.5 	(7) practice certified midwifery during the time a license issued under this chapter is 
160.6 	suspended or revoked;
160.7 	(8) knowingly employ persons in the practice of certified midwifery who have not been 
160.8 	issued a current license to practice as a certified midwife in this state; or
160.9 	(9) conduct a certified midwifery program for the education of persons to become certified 
160.10 	midwives unless the program has been approved by the board.
160.11 		Subd. 2.Penalty. Any person, corporation, firm, or association violating any provision 
160.12 	of subdivision 1 is guilty of a gross misdemeanor and must be punished according to law.
160.13 		Subd. 3.Penalty; certified midwives. In addition to subdivision 2, a person who practices 
160.14 	certified midwifery without a current license and certification or recertification, or without 
160.15 	current certification or recertification on file with the board, is subject to the applicable 
160.16 	penalties in section 148G.11.

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

160.25 	Sec. 107. Minnesota Statutes 2024, section 150A.105, is amended by adding a subdivision 
160.26 	to read:
160.27 		Subd. 3a.Collaborative management agreement under armed forces. (a) While 
160.28 	practicing under the auspices of the Minnesota National Guard or any branch of the armed 
160.29 	forces, including the Navy, Marines, Army, Coast Guard, or Space Force, the collaborating 
160.30 	dentist may be determined by the command structure of the armed service for which the 
160.31 	dental therapist is a member assigned or contracted.
161.1 	(b) A collaborating dentist for a dental therapist when in civilian practice will not be 
161.2 	responsible for supervising the dental services performed by the dental therapist while the 
161.3 	dental therapist is practicing under the auspices of the armed forces.

161.4 	Sec. 108. Minnesota Statutes 2024, section 151.01, subdivision 15, is amended to read:
161.5 		Subd. 15.Pharmacist intern or intern.  "Pharmacist intern" or "intern" means:
161.6 	(1) a natural person who has completed college or school of pharmacy orientation or is 
161.7 	otherwise enrolled in a doctor of pharmacy program accredited by the Accreditation Council 
161.8 	for Pharmacy Education (ACPE) and is satisfactorily progressing toward the degree in 
161.9 	pharmacy required for licensure, or;
161.10 	(2) a graduate of the University of Minnesota College of Pharmacy, or other pharmacy 
161.11 	college approved by the board, a doctor of pharmacy program accredited by ACPE who is 
161.12 	registered by the Board of Pharmacy for the purpose of obtaining practical experience as a 
161.13 	requirement for licensure as a pharmacist, or;
161.14 	(3) a qualified applicant awaiting examination for licensure.;
161.15 	(4) a participant in a residency or fellowship program who is not licensed to practice 
161.16 	pharmacy in Minnesota but is:
161.17 	(i) licensed to practice pharmacy in another state; or
161.18 	(ii) a graduate of a doctor of pharmacy program accredited by ACPE and not registered 
161.19 	by the board under clause (2); or
161.20 	(5) a foreign pharmacy graduate who:
161.21 	(i) has passed the Foreign Pharmacy Graduate Equivalency Examination;
161.22 	(ii) is certified by the Foreign Pharmacy Graduate Equivalency Commission; and
161.23 	(iii) is seeking internship experience in accordance with Minnesota Rules, part 6800.1250.

161.24 	Sec. 109. Minnesota Statutes 2024, section 151.01, subdivision 23, is amended to read:
161.25 		Subd. 23.Practitioner. "Practitioner" means a licensed doctor of medicine, licensed 
161.26 	doctor of osteopathic medicine duly licensed to practice medicine, licensed doctor of 
161.27 	dentistry, licensed doctor of optometry, licensed podiatrist, licensed veterinarian, licensed 
161.28 	advanced practice registered nurse, licensed certified midwife, or licensed physician assistant. 
161.29 	For purposes of sections 151.15, subdivision 4; 151.211, subdivision 3; 151.252, subdivision 
161.30 	3; 151.37, subdivision 2, paragraph (b); and 151.461, "practitioner" also means a dental 
162.1 	therapist authorized to dispense and administer under chapter 150A. For purposes of sections 
162.2 	151.252, subdivision 3, and 151.461, "practitioner" also means a pharmacist authorized to 
162.3 	prescribe self-administered hormonal contraceptives, nicotine replacement medications, or 
162.4 	opiate antagonists under section 151.37, subdivision 14, 15, or 16, or authorized to prescribe 
162.5 	drugs to prevent the acquisition of human immunodeficiency virus (HIV) under section 
162.6 	151.37, subdivision 17.

162.7 	Sec. 110. Minnesota Statutes 2024, section 151.065, subdivision 1, is amended to read:
162.8 		Subdivision 1.Application fees. Application fees for licensure and registration are as 
162.9 	follows:
162.10 	(1) pharmacist licensed by examination, $225;
162.11 	(2) pharmacist licensed by reciprocity, $300;
162.12 	(3) pharmacy intern, $75 $25;
162.13 	(4) pharmacy technician, $60;
162.14 	(5) pharmacy, $450;
162.15 	(6) drug wholesaler, legend drugs only, $5,500;
162.16 	(7) drug wholesaler, legend and nonlegend drugs, $5,500;
162.17 	(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
162.18 	(9) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
162.19 	additional facility;
162.20 	(10) third-party logistics provider, $300;
162.21 	(11) drug manufacturer, nonopiate legend drugs only, $5,500;
162.22 	(12) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
162.23 	(13) drug manufacturer, nonlegend or veterinary legend drugs, $5,500;
162.24 	(14) drug manufacturer, medical gases, $5,500 for the first facility and $500 for each 
162.25 	additional facility;
162.26 	(15) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
162.27 	(16) drug manufacturer of opiate-containing controlled substances listed in section 
162.28 	152.02, subdivisions 3 to 5, $55,500;
162.29 	(17) medical gas dispenser, $400;
163.1 	(18) controlled substance researcher, $150; and
163.2 	(19) pharmacy professional corporation, $150.

163.3 	Sec. 111. Minnesota Statutes 2024, section 151.065, subdivision 3, is amended to read:
163.4 		Subd. 3.Annual renewal fees. Annual licensure and registration renewal fees are as 
163.5 	follows:
163.6 	(1) pharmacist, $225;
163.7 	(2) pharmacy technician, $60;
163.8 	(3) beginning January 1, 2026, pharmacy intern, $25;
163.9 	(3) (4) pharmacy, $450;
163.10 	(4) (5) drug wholesaler, legend drugs only, $5,500;
163.11 	(5) (6) drug wholesaler, legend and nonlegend drugs, $5,500;
163.12 	(6) (7) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $5,500;
163.13 	(7) (8) drug wholesaler, medical gases, $5,500 for the first facility and $500 for each 
163.14 	additional facility;
163.15 	(8) (9) third-party logistics provider, $300;
163.16 	(9) (10) drug manufacturer, nonopiate legend drugs only, $5,500;
163.17 	(10) (11) drug manufacturer, nonopiate legend and nonlegend drugs, $5,500;
163.18 	(11) (12) drug manufacturer, nonlegend, veterinary legend drugs, or both, $5,500;
163.19 	(12) (13) drug manufacturer, medical gases, $5,500 for the first facility and $500 for 
163.20 	each additional facility;
163.21 	(13) (14) drug manufacturer, also licensed as a pharmacy in Minnesota, $5,500;
163.22 	(14) (15) drug manufacturer of opiate-containing controlled substances listed in section 
163.23 	152.02, subdivisions 3 to 5, $55,500;
163.24 	(15) (16) medical gas dispenser, $400;
163.25 	(16) (17) controlled substance researcher, $150; and
163.26 	(17) (18) pharmacy professional corporation, $150.

164.1 	Sec. 112. Minnesota Statutes 2024, section 151.065, subdivision 6, is amended to read:
164.2 		Subd. 6.Reinstatement fees. (a) A pharmacist who has allowed the pharmacist's license 
164.3 	to lapse may reinstate the license with board approval and upon payment of any fees and 
164.4 	late fees in arrears, up to a maximum of $1,000.
164.5 	(b) A pharmacy technician who has allowed the technician's registration to lapse may 
164.6 	reinstate the registration with board approval and upon payment of any fees and late fees 
164.7 	in arrears, up to a maximum of $250.
164.8 	(c) A pharmacy intern who has allowed the intern's registration to lapse may reinstate 
164.9 	the registration with board approval and upon payment of any fees and late fees in arrears, 
164.10 	up to a maximum of $100.
164.11 	(c) (d) An owner of a pharmacy, a drug wholesaler, a drug manufacturer, third-party 
164.12 	logistics provider, or a medical gas dispenser who has allowed the license of the establishment 
164.13 	to lapse may reinstate the license with board approval and upon payment of any fees and 
164.14 	late fees in arrears.
164.15 	(d) (e) A controlled substance researcher who has allowed the researcher's registration 
164.16 	to lapse may reinstate the registration with board approval and upon payment of any fees 
164.17 	and late fees in arrears.
164.18 	(e) (f) A pharmacist owner of a professional corporation who has allowed the corporation's 
164.19 	registration to lapse may reinstate the registration with board approval and upon payment 
164.20 	of any fees and late fees in arrears.

164.21 	Sec. 113. Minnesota Statutes 2024, section 151.101, is amended to read:
164.22 	151.101 INTERNSHIP.
164.23 		Subdivision 1.Registration requirements. (a) Upon payment of the fee specified in 
164.24 	section 151.065, the board may register as an intern any natural persons who have satisfied 
164.25 	the board that they are of good moral character, not physically or mentally unfit, and who 
164.26 	have successfully completed the educational requirements for intern registration prescribed 
164.27 	by the board. The board shall prescribe standards and requirements for interns, 
164.28 	pharmacist-preceptors, and internship training but may not require more than one year of 
164.29 	such training.
164.30 	(b) The board in its discretion may accept internship experience obtained in another 
164.31 	state provided the internship requirements in such other state are in the opinion of the board 
164.32 	equivalent to those herein provided.
165.1 		Subd. 2.Renewal requirements. (a) Beginning January 1, 2026, an intern registration 
165.2 	expires on September 30 each year or when the intern receives a pharmacist license, 
165.3 	whichever is earlier.
165.4 	(b) To renew an intern registration, the intern must file an application for renewal and 
165.5 	submit the fee established under section 151.065 on or before September 1 each year.
165.6 	(c) If the board does not receive the intern's registration renewal application on or before 
165.7 	September 1 each year, the intern is subject to a late filing fee equal to 50 percent of the 
165.8 	renewal fee under section 151.065 in addition to the renewal fee.
165.9 	(d) An individual who received an intern registration under the criteria in section 151.01, 
165.10 	subdivision 15, clause (1), and paid $75 for the individual's application fee between May 
165.11 	1, 2024, and June 30, 2025, is not subject to the $25 renewal fee for the first two renewal 
165.12 	cycles following the $75 fee payment.
165.13 	(e) If an individual is no longer enrolled in a doctor of pharmacy program accredited by 
165.14 	the Accreditation Council for Pharmacy Education, the board must terminate that individual's 
165.15 	intern registration effective the last date the individual was enrolled in a qualifying program.
165.16 	(f) The board must not renew an intern registration unless the individual:
165.17 	(1) has maintained current notices of employment for internship training with the board;
165.18 	(2) submitted a progress report affidavit of the intern credit hours completed by June 15 
165.19 	each year;
165.20 	(3) meets all other eligibility criteria for a pharmacist intern; and
165.21 	(4) demonstrates to the board's satisfaction the individual is in good faith and with 
165.22 	reasonable diligence pursuing a degree in pharmacy or is completing a pharmacy residency 
165.23 	or fellowship.
165.24 	(g) An intern whose registration has lapsed may renew the intern registration within one 
165.25 	year of expiration, subject to the fees in paragraph (c). An intern whose registration has 
165.26 	lapsed for more than one year must meet the registration requirements for an initial intern 
165.27 	applicant in effect at the time the individual applies for reinstatement and pay any fees and 
165.28 	late fees in arrears in accordance with section 151.065.
165.29 	(h) If the board receives a late renewal, reinstatement, or initial intern application from 
165.30 	an eligible individual within 90 days before September 30, the board may extend the 
165.31 	registration expiration date for that applicant to September 30 of the subsequent calendar 
165.32 	year and prorate the application fee accordingly.
166.1 		Subd. 3.Internship credit hour requirements. (a) To apply for licensure as a pharmacist 
166.2 	under section 151.10, an individual must complete at least 1,600 intern credit hours under 
166.3 	the direction and supervision of a preceptor.
166.4 	(b) Of the 1,600 credit hours required under this subdivision, an intern may earn:
166.5 	(1) a maximum of 80 credit hours in the individual's first professional academic year 
166.6 	for a structured experience directed by the college of pharmacy that the individual attends 
166.7 	and is overseen by college faculty, registered preceptors, or supervising licensed pharmacists;
166.8 	(2) a maximum of 400 credit hours of concurrent time internship; and
166.9 	(3) a maximum of 54 credit hours per week that may be earned from more than one site.

166.10 	Sec. 114. Minnesota Statutes 2024, section 152.12, subdivision 1, is amended to read:
166.11 		Subdivision 1.Prescribing, dispensing, administering controlled substances in 
166.12 	Schedules II through V. A licensed doctor of medicine, a doctor of osteopathic medicine, 
166.13 	duly licensed to practice medicine, a doctor of dental surgery, a doctor of dental medicine, 
166.14 	a licensed doctor of podiatry, a licensed advanced practice registered nurse, a licensed 
166.15 	certified midwife, a licensed physician assistant, or a licensed doctor of optometry limited 
166.16 	to Schedules IV and V, and in the course of professional practice only, may prescribe, 
166.17 	administer, and dispense a controlled substance included in Schedules II through V of section 
166.18 	152.02, may cause the same to be administered by a nurse, an intern or an assistant under 
166.19 	the direction and supervision of the doctor, and may cause a person who is an appropriately 
166.20 	certified and licensed health care professional to prescribe and administer the same within 
166.21 	the expressed legal scope of the person's practice as defined in Minnesota Statutes.

166.22 	Sec. 115. [153.30] FEES.
166.23 		Subdivision 1.Nonrefundable fees. The fees in this section are nonrefundable.
166.24 		Subd. 2.Fee amounts. The amount of fees must be set by the board so that the total 
166.25 	fees collected by the board equals as closely as possible the anticipated expenditures during 
166.26 	the fiscal biennium, as provided in section 16A.1285. Fees must not exceed the following 
166.27 	amounts but may be adjusted lower by board action:
166.28 	(1) application for licensure fee, $1,000;
166.29 	(2) renewal licensure fee, $1,000;
166.30 	(3) late renewal fee, $250;
166.31 	(4) temporary permit fee, $250;
167.1 	(5) duplicate license fee or duplicate renewal certificate fee, $25;
167.2 	(6) reinstatement fee, $1,250;
167.3 	(7) examination administration fee for persons who have not applied for a license or 
167.4 	permit, $50;
167.5 	(8) verification of licensure fee, $50;
167.6 	(9) label fee, $50;
167.7 	(10) list of licensees fee, $50; and
167.8 	(11) copies fee, $0.50 per page.
167.9 		Subd. 3.Current fee information. Information about fees in effect at any time must 
167.10 	be available from the board office.
167.11 		Subd. 4.Deposit of fees. The license fees collected under this section must be deposited 
167.12 	in the state government special revenue fund.

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

167.14 	Sec. 116. Minnesota Statutes 2024, section 153B.85, subdivision 1, is amended to read:
167.15 		Subdivision 1.Fees. (a) The application fee for initial licensure shall not exceed $600.
167.16 	(b) The biennial renewal fee for a license to practice as an orthotist, prosthetist, prosthetist 
167.17 	orthotist, or pedorthist shall not exceed $600.
167.18 	(c) The biennial renewal fee for a license to practice as an assistant or a fitter shall not 
167.19 	exceed $300.
167.20 	(d) The fee for license restoration shall not exceed $600.
167.21 	(e) The fee for license verification shall not exceed $30 $50.
167.22 	(f) The fee to obtain a list of licensees shall not exceed $25 $50.

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

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

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

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

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

168.5 	Sec. 119. Minnesota Statutes 2024, section 156.015, is amended by adding a subdivision 
168.6 	to read:
168.7 		Subd. 3.Fee amounts. Fees must not exceed the following amounts but may be adjusted 
168.8 	lower by board action:
168.9 	(1) initial application fee, $75;
168.10 	(2) state examination fee, $75;
168.11 	(3) duplicate license fee, $25;
168.12 	(4) continuing education sponsor application fee, $75;
168.13 	(5) mailing list fee, $250;
168.14 	(6) initial veterinary license fee, $300;
168.15 	(7) initial veterinary technician fee, $100;
168.16 	(8) active veterinary renewal fee, $300;
168.17 	(9) active veterinary technician renewal fee, $100;
168.18 	(10) inactive veterinary renewal fee, $150;
168.19 	(11) inactive veterinary technician renewal fee, $50;
168.20 	(12) institutional license fee, $300;
168.21 	(13) active late veterinary renewal fee, $150;
168.22 	(14) active late veterinary technician renewal fee, $50;
168.23 	(15) inactive late veterinary renewal fee, $100;
168.24 	(16) inactive late veterinary technician renewal fee, $25; and
168.25 	(17) institutional late renewal fee, $150.

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

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

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

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

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

169.20 	Sec. 123. REVISOR INSTRUCTION.
 169.21 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 148.6408, 
169.22 	subdivision 1, as Minnesota Statutes, section 148.6408, subdivision 1b.
169.23 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 148.6410, 
169.24 	subdivision 1, as Minnesota Statutes, section 148.6410, subdivision 1b.

169.25 	Sec. 124. REPEALER.
 169.26 	(a) Minnesota Statutes 2024, sections 148.108, subdivisions 2, 3, and 4; 148.6402, 
169.27 	subdivision 22a; 148.6420, subdivisions 2, 3, and 4; 148.6423, subdivisions 4, 5, 7, 8, and 
169.28 	9; 148.6425, subdivision 3; 148.6430; 148.6445, subdivisions 5, 6, and 8; and 156.015, 
169.29 	subdivision 1, are repealed.
170.1 	(b) Minnesota Rules, parts 2500.1150; 2500.2030; 6800.5100, subpart 5; 6800.5400, 
170.2 	subparts 5 and 6; 9100.0400, subparts 1 and 3; 9100.0500; and 9100.0600, are repealed.
170.3 	(c) Minnesota Rules, part 6900.0250, subparts 1 and 2, are repealed.

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

170.6 	ARTICLE 4
170.7 	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

170.8 	Section 1. Minnesota Statutes 2024, section 3.732, subdivision 1, is amended to read:
170.9 		Subdivision 1.Definitions. As used in this section and section 3.736 the terms defined 
170.10 	in this section have the meanings given them.
170.11 	(1) "State" includes each of the departments, boards, agencies, commissions, courts, and 
170.12 	officers in the executive, legislative, and judicial branches of the state of Minnesota and 
170.13 	includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher 
170.14 	Education, the Higher Health and Education Facilities Authority, the Health Technology 
170.15 	Advisory Committee, the Armory Building Commission, the Zoological Board, the 
170.16 	Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society, 
170.17 	the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges 
170.18 	and Universities, state hospitals, and state penal institutions. It does not include a city, town, 
170.19 	county, school district, or other local governmental body corporate and politic.
170.20 	(2) "Employee of the state" means all present or former officers, members, directors, or 
170.21 	employees of the state, members of the Minnesota National Guard, members of a bomb 
170.22 	disposal unit approved by the commissioner of public safety and employed by a municipality 
170.23 	defined in section 466.01 when engaged in the disposal or neutralization of bombs or other 
170.24 	similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the 
170.25 	municipality but within the state, or persons acting on behalf of the state in an official 
170.26 	capacity, temporarily or permanently, with or without compensation. It does not include 
170.27 	either an independent contractor except, for purposes of this section and section 3.736 only, 
170.28 	a guardian ad litem acting under court appointment, or members of the Minnesota National 
170.29 	Guard while engaged in training or duty under United States Code, title 10, or title 32, 
170.30 	section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding 
170.31 	sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee 
170.32 	of the state" includes a district public defender or assistant district public defender in the 
170.33 	Second or Fourth Judicial District, a member of the Health Technology Advisory Committee, 
171.1 	and any officer, agent, or employee of the state of Wisconsin performing work for the state 
171.2 	of Minnesota pursuant to a joint state initiative.
171.3 	(3) "Scope of office or employment" means that the employee was acting on behalf of 
171.4 	the state in the performance of duties or tasks lawfully assigned by competent authority.
171.5 	(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

171.6 	Sec. 2. Minnesota Statutes 2024, section 10A.01, subdivision 35, is amended to read:
171.7 		Subd. 35.Public official. "Public official" means any:
171.8 	(1) member of the legislature;
171.9 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
171.10 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
171.11 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
171.12 	Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis 
171.13 	Department;
171.14 	(3) constitutional officer in the executive branch and the officer's chief administrative 
171.15 	deputy;
171.16 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
171.17 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
171.18 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
171.19 	officer;
171.20 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
171.21 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
171.22 	14, or the power to adjudicate contested cases or appeals under chapter 14;
171.23 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
171.24 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
171.25 	(8) executive director of the State Board of Investment;
171.26 	(9) deputy of any official listed in clauses (7) and (8);
171.27 	(10) judge of the Workers' Compensation Court of Appeals;
171.28 	(11) administrative law judge or compensation judge in the State Office of Administrative 
171.29 	Hearings or unemployment law judge in the Department of Employment and Economic 
171.30 	Development;
172.1 	(12) member, regional administrator, division director, general counsel, or operations 
172.2 	manager of the Metropolitan Council;
172.3 	(13) member or chief administrator of a metropolitan agency;
172.4 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
172.5 	of Public Safety;
172.6 	(15) member or executive director of the Higher Health and Education Facilities 
172.7 	Authority;
172.8 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
172.9 	(17) member of the board of directors or executive director of the Minnesota State High 
172.10 	School League;
172.11 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
172.12 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
172.13 	(20) manager of a watershed district, or member of a watershed management organization 
172.14 	as defined under section 103B.205, subdivision 13;
172.15 	(21) supervisor of a soil and water conservation district;
172.16 	(22) director of Explore Minnesota Tourism;
172.17 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
172.18 	97A.056;
172.19 	(24) citizen member of the Clean Water Council established in section 114D.30;
172.20 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
172.21 	in section 473J.07;
172.22 	(26) district court judge, appeals court judge, or supreme court justice;
172.23 	(27) county commissioner;
172.24 	(28) member of the Greater Minnesota Regional Parks and Trails Commission;
172.25 	(29) member of the Destination Medical Center Corporation established in section 
172.26 	469.41; or
172.27 	(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges 
172.28 	and Universities.

173.1 	Sec. 3. Minnesota Statutes 2024, section 136A.25, is amended to read:
173.2 	136A.25 CREATION.
173.3 	A state agency known as the Minnesota HigherHealth and Education Facilities Authority 
173.4 	is hereby created.

173.5 	Sec. 4. Minnesota Statutes 2024, section 136A.26, is amended to read:
173.6 	136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.
173.7 		Subdivision 1.Membership. The Minnesota Higher Health and Education Facilities 
173.8 	Authority shall consist of eight nine members appointed by the governor with the advice 
173.9 	and consent of the senate, and a representative of the office Office of Higher Education.
173.10 	All members to be appointed by the governor shall be residents of the state. At least two 
173.11 	members must reside outside the metropolitan area as defined in section 473.121, subdivision 
173.12 	2. At least one of the members shall be a person having a favorable reputation for skill, 
173.13 	knowledge, and experience in the field of state and municipal finance; and at least one shall 
173.14 	be a person having a favorable reputation for skill, knowledge, and experience in the building 
173.15 	construction field; and at least one of the members shall be a trustee, director, officer, or 
173.16 	employee of an institution of higher education; and at least one of the members shall be a 
173.17 	trustee, director, officer, or employee of a health care organization.
173.18 		Subd. 1a.Private College Council member. The president of the Minnesota Private 
173.19 	College Council, or the president's designee, shall serve without compensation as an advisory, 
173.20 	nonvoting member of the authority.
173.21 		Subd. 1b.Nonprofit health care association member. The chief executive officer of 
173.22 	a Minnesota nonprofit membership association whose members are primarily nonprofit 
173.23 	health care organizations, or the chief executive officer's designee, shall serve without 
173.24 	compensation as an advisory, nonvoting member of the authority. The identity of the 
173.25 	Minnesota nonprofit membership association shall be determined and may be changed from 
173.26 	time to time by the members of the authority in accordance with and as shall be provided 
173.27 	in the bylaws of the authority.
173.28 		Subd. 2.Term; compensation; removal. The membership terms, compensation, removal 
173.29 	of members, and filling of vacancies for authority members other than the representative 
173.30 	of the office, and the president of the Private College Council, or the chief executive officer 
173.31 	of the Minnesota nonprofit membership association described in subdivision 1b shall be as 
173.32 	provided in section 15.0575.

174.1 	Sec. 5. Minnesota Statutes 2024, section 136A.27, is amended to read:
174.2 	136A.27 POLICY.
174.3 	It is hereby declared that for the benefit of the people of the state, the increase of their 
174.4 	commerce, welfare and prosperity and the improvement of their health and living conditions 
174.5 	it is essential that health care organizations in Minnesota be provided with appropriate 
174.6 	additional means to establish, acquire, construct, improve, and expand health care facilities 
174.7 	in furtherance of their purposes; that this and future generations of youth be given the fullest 
174.8 	opportunity to learn and to develop their intellectual and mental capacities; that it is essential
174.9 	that institutions of higher education within the state be provided with appropriate additional 
174.10 	means to assist such youth in achieving the required levels of learning and development of 
174.11 	their intellectual and mental capacities; and that health care organizations and institutions 
174.12 	of higher education be enabled to refinance outstanding indebtedness incurred to provide 
174.13 	existing facilities used for such those purposes in order to preserve and enhance the utilization 
174.14 	of facilities for purposes of health care and higher education, to extend or adjust maturities 
174.15 	in relation to the resources available for their payment, and to save interest costs and thereby 
174.16 	reduce health care costs or higher education tuition, fees, and charges; and. It is hereby 
174.17 	further declared that it is the purpose of sections 136A.25 to 136A.42 to provide a measure 
174.18 	of assistance and an alternative method to enable health care organizations and institutions 
174.19 	of higher education in the state to provide the facilities and structures which are sorely 
174.20 	needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit 
174.21 	and good, to the extent and manner provided herein.

174.22 	Sec. 6. Minnesota Statutes 2024, section 136A.28, is amended to read:
174.23 	136A.28 DEFINITIONS.
174.24 		Subdivision 1.Scope. In sections 136A.25 to 136A.42, the following words and terms 
174.25 	shall, unless the context otherwise requires, have the meanings ascribed to them.
174.26 		Subd. 1a.Affiliate. "Affiliate" means an entity that directly or indirectly controls, is 
174.27 	controlled by, or is under common control with another entity. For purposes of this 
174.28 	subdivision, "control" means either the power to elect a majority of the members of the 
174.29 	governing body of an entity or the power, whether by contract or otherwise, to direct the 
174.30 	management and policies of the entity. Affiliate also means an entity whose business or 
174.31 	substantially all of whose property is operated under a lease, management agreement, or 
174.32 	operating agreement by another entity, or an entity who operates the business or substantially 
174.33 	all of the property of another entity under a lease, management agreement, or operating 
174.34 	agreement.
175.1 		Subd. 2.Authority. "Authority" means the HigherHealth and Education Facilities 
175.2 	Authority created by sections 136A.25 to 136A.42.
175.3 		Subd. 3.Project. "Project" means a structure or structures available for use as a dormitory 
175.4 	or other student housing facility, a dining hall, student union, administration building, 
175.5 	academic building, library, laboratory, research facility, classroom, athletic facility, health 
175.6 	care facility, child care facility, and maintenance, storage, or utility facility and other 
175.7 	structures or facilities related thereto or required or useful for the instruction of students or 
175.8 	the conducting of research or the operation of an institution of higher education, whether 
175.9 	proposed, under construction, or completed, including parking and other facilities or 
175.10 	structures essential or convenient for the orderly conduct of such institution for higher 
175.11 	education, and shall also include landscaping, site preparation, furniture, equipment and 
175.12 	machinery, and other similar items necessary or convenient for the operation of a particular 
175.13 	facility or structure in the manner for which its use is intended but shall not include such 
175.14 	items as books, fuel, supplies, or other items the costs of which are customarily deemed to 
175.15 	result in a current operating charge, and shalla health care facility or an education facility 
175.16 	whether proposed, under construction, or completed, and includes land or interests in land, 
175.17 	appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures, 
175.18 	furniture, machinery, equipment, and parking. Project also includes other structures, facilities, 
175.19 	improvements, machinery, equipment, and means of transport of a capital nature that are 
175.20 	necessary or convenient for the operation of the facility. Project does not include: (1) any 
175.21 	facility used or to be used for sectarian instruction or as a place of religious worship nor; 
175.22 	(2) any facility which is used or to be used primarily in connection with any part of the 
175.23 	program of a school or department of divinity for any religious denomination; or (3) any 
175.24 	books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are 
175.25 	customarily deemed to result in a current operating charge.
175.26 		Subd. 4.Cost. "Cost," as applied to a project or any portion thereof financed under the 
175.27 	provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction, 
175.28 	acquisition, alteration, enlargement, reconstruction and remodeling of a project including 
175.29 	all lands, structures, real or personal property, rights, rights-of-way, franchises, easements 
175.30 	and interests acquired or used for or in connection with a project, the cost of demolishing 
175.31 	or removing any buildings or structures on land so acquired, including the cost of acquiring 
175.32 	any lands to which such the buildings or structures may be moved, the cost of all machinery 
175.33 	and equipment, financing charges, interest prior to, during and for a period after completion 
175.34 	of such construction and acquisition, provisions for reserves for principal and interest and 
175.35 	for extensions, enlargements, additions and improvements, the cost of architectural, 
176.1 	engineering, financial and legal services, plans, specifications, studies, surveys, estimates 
176.2 	of cost and of revenues, administrative expenses, expenses necessary or incident to 
176.3 	determining the feasibility or practicability of constructing the project and such other 
176.4 	expenses as may be necessary or incident to the construction and acquisition of the project, 
176.5 	the financing of such construction and acquisition and the placing of the project in operation.
176.6 		Subd. 5.Bonds. "Bonds," or "revenue bonds" means revenue bonds of the authority 
176.7 	issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding 
176.8 	bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit 
176.9 	of a participating institution for higher education or any other lawfully pledged security of 
176.10 	a participating institution for higher education.
176.11 		Subd. 6.Institution of higher education. "Institution of higher education" means a 
176.12 	nonprofit educational institution within the state authorized to provide a program of education 
176.13 	beyond the high school level.
176.14 		Subd. 6a.Health care organization. (a) "Health care organization" means a nonprofit 
176.15 	organization located within the state and authorized by law to operate a nonprofit health 
176.16 	care facility in the state. Health care organization also means a nonprofit affiliate of a health 
176.17 	care organization as defined under this paragraph, provided the affiliate is located within 
176.18 	the state or within a state that is geographically contiguous to Minnesota.
176.19 	(b) Health care organization also means a nonprofit organization located in another state 
176.20 	that is geographically contiguous to Minnesota and authorized by law to operate a nonprofit 
176.21 	health care facility in that state, provided that the nonprofit organization located in the 
176.22 	contiguous state is an affiliate of a health care organization located in Minnesota.
176.23 		Subd. 6b.Education facility. "Education facility" means a structure or structures 
176.24 	available for use as a dormitory or other student housing facility, dining hall, student union, 
176.25 	administration building, academic building, library, laboratory, research facility, classroom, 
176.26 	athletic facility, student health care facility, or child care facility, and includes other facilities 
176.27 	or structures related to the essential or convenient orderly conduct of an institution of higher 
176.28 	education.
176.29 		Subd. 6c.Health care facility. (a) "Health care facility" means a structure or structures 
176.30 	available for use in Minnesota as a hospital, clinic, psychiatric residential treatment facility, 
176.31 	birth center, outpatient surgical center, comprehensive outpatient rehabilitation facility, 
176.32 	outpatient physical therapy or speech pathology facility, end-stage renal dialysis facility, 
176.33 	medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility, medical 
176.34 	office building, residence for nurses or interns, nursing home, boarding care home, assisted 
177.1 	living facility, residential hospice, intermediate care facility for persons with developmental 
177.2 	disabilities, supervised living facility, housing with services establishment, board and lodging 
177.3 	establishment with special services, adult day care center, day services facility, prescribed 
177.4 	pediatric extended care facility, community residential setting, adult foster home, or other 
177.5 	facility related to medical or health care research, or the delivery or administration of health 
177.6 	care services and includes other structures or facilities related to the essential or convenient 
177.7 	orderly conduct of a health care organization.
177.8 	(b) Health care facility also means a facility in a state that is geographically contiguous 
177.9 	to Minnesota operated by a health care organization that corresponds by purpose, function, 
177.10 	or use with a facility listed in paragraph (a).
177.11 		Subd. 7.Participating institution of higher education. "Participating institution of 
177.12 	higher education" means a health care organization or an institution of higher education 
177.13 	that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and 
177.14 	construction or acquisition of a project or undertakes the refunding or refinancing of 
177.15 	obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42. 
177.16 	Community colleges and technical colleges may be considered participating institutions of 
177.17 	higher education for the purpose of financing and constructing child care facilities and 
177.18 	parking facilities.

177.19 	Sec. 7. Minnesota Statutes 2024, section 136A.29, subdivision 1, is amended to read:
177.20 		Subdivision 1.Purpose. The purpose of the authority shall be to assist health care 
177.21 	organizations and institutions of higher education in the construction, financing, and 
177.22 	refinancing of projects. The exercise by the authority of the powers conferred by sections 
177.23 	136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public 
177.24 	function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the 
177.25 	powers and duties set forth in subdivisions 2 to 23.

177.26 	Sec. 8. Minnesota Statutes 2024, section 136A.29, subdivision 3, is amended to read:
177.27 		Subd. 3.Employees; office space. The authority is authorized and empowered to appoint 
177.28 	and employ employees as it may deem necessary to carry out its duties, determine the title 
177.29 	of the employees so employed, and fix the salary of said the employees. Employees of the 
177.30 	authority shall participate in retirement and other benefits in the same manner that employees 
177.31 	in the unclassified service of the office managerial plan under section 43A.18, subdivision 
177.32 	3, participate. The authority may maintain an office space as it may designate.

178.1 	Sec. 9. Minnesota Statutes 2024, section 136A.29, subdivision 6, is amended to read:
178.2 		Subd. 6.Projects; generally. (a) The authority is authorized and empowered to determine 
178.3 	the location and character of any project to be financed under the provisions of sections 
178.4 	136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge, 
178.5 	alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into 
178.6 	contracts for any or all of such these purposes, to enter into contracts for the management 
178.7 	and operation of a project, and to designate a participating institution of higher education
178.8 	as its agent to determine the location and character of a project undertaken by such a
178.9 	participating institution of higher education under the provisions of sections 136A.25 to 
178.10 	136A.42 and as the agent of the authority, to construct, reconstruct, remodel, maintain, 
178.11 	manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the 
178.12 	same, and as the agent of the authority, to enter into contracts for any or all of such these
178.13 	purposes, including contracts for the management and operation of such the project.
178.14 	(b) Notwithstanding paragraph (a), a project involving a health care facility in Minnesota 
178.15 	financed under sections 136A.25 to 136A.42 must comply with all applicable requirements 
178.16 	in state law related to authorizing construction of or modifications to a health care facility, 
178.17 	including the requirements in sections 144.5509, 144.551, 144A.071, and 252.291.
178.18 	(c) Contracts of the authority or of a participating institution of higher education to 
178.19 	acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair 
178.20 	projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other 
178.21 	public contract or competitive bid law.

178.22 	Sec. 10. Minnesota Statutes 2024, section 136A.29, subdivision 9, is amended to read:
178.23 		Subd. 9.Revenue bonds; limit. (a) The authority is authorized and empowered to issue 
178.24 	revenue bonds whose aggregate principal amount at any time shall not exceed $2,000,000,000
178.25 	$5,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds 
178.26 	of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for 
178.27 	acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, 
178.28 	furnishing, or equipping one or more projects or parts thereof.
178.29 	(b) Of the $5,000,000,000 limit in paragraph (a), the aggregate principal amount used 
178.30 	to fund education facilities may not exceed $2,250,000,000 at any time and the aggregate 
178.31 	principal amount used to fund health care facilities may not exceed $2,750,000,000 at any 
178.32 	time.

179.1 	Sec. 11. Minnesota Statutes 2024, section 136A.29, subdivision 10, is amended to read:
179.2 		Subd. 10.Revenue bonds; issuance, purpose, conditions. The authority is authorized 
179.3 	and empowered to issue revenue bonds to acquire projects from or to make loans to 
179.4 	participating institutions of higher education and thereby refinance outstanding indebtedness 
179.5 	incurred by participating institutions of higher education to provide funds for the acquisition, 
179.6 	construction or improvement of a facility before or after the enactment of sections 136A.25
179.7 	to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the 
179.8 	authority finds that such the refinancing will enhance or preserve such the participating 
179.9 	institutions and such the facilities or utilization thereof that is for health care or educational 
179.10 	purposes or extend or adjust maturities to correspond to the resources available for their 
179.11 	payment, or reduce charges or fees imposed on patients or occupants, or the tuition, charges,
179.12 	or fees imposed on students for the use or occupancy of the facilities of such the participating 
179.13 	institutions of higher education or costs met by federal or state public funds, or enhance or 
179.14 	preserve health care or educational programs and research or the acquisition or improvement 
179.15 	of other facilities eligible to be a project or part thereof by the participating institution of 
179.16 	higher education. The amount of revenue bonds to be issued to refinance outstanding 
179.17 	indebtedness of a participating institution of higher education shall not exceed the lesser of 
179.18 	(a) the fair value of the project to be acquired by the authority from the institution or 
179.19 	mortgaged to the authority by the institution or (b) the amount of the outstanding indebtedness 
179.20 	including any premium thereon and any interest accrued or to accrue to the date of redemption 
179.21 	and any legal, fiscal and related costs in connection with such the refinancing and reasonable 
179.22 	reserves, as determined by the authority. The provisions of this subdivision do not prohibit 
179.23 	the authority from issuing revenue bonds within and charged against the limitations provided 
179.24 	in subdivision 9 to provide funds for improvements, alteration, renovation, or extension of 
179.25 	the project refinanced.

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

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

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

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

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

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

181.3 	Sec. 18. Minnesota Statutes 2024, section 136A.32, subdivision 1, is amended to read:
181.4 		Subdivision 1.Bonds; generally. (a) The authority may from time to time issue revenue 
181.5 	bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes, 
181.6 	bond anticipation notes or other obligations of the authority issued pursuant to sections 
181.7 	136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes 
181.8 	notwithstanding their payment from a limited source and without regard to any other law 
181.9 	or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable 
181.10 	bond anticipation notes and may renew the same from time to time, but the maximum 
181.11 	maturity of any such note, including renewals thereof, shall not exceed five years from the 
181.12 	date of issue of the original note. Such Notes shall be paid from any revenues of the authority 
181.13 	available therefor and not otherwise pledged, or from the proceeds of sale of the revenue 
181.14 	bonds of the authority in anticipation of which they were issued. The notes shall be issued 
181.15 	in the same manner as the revenue bonds. Such The notes and the resolution or resolutions 
181.16 	authorizing the same may contain any provisions, conditions or limitations which a bond 
181.17 	resolution or the authority may contain.
181.18 	(b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on 
181.19 	behalf of a health care organization to finance health care facilities, the authority must obtain 
181.20 	consent by resolution from each city or town where the project is located, except that consent 
181.21 	need not be obtained in the case of a city or town with a population of less than 100,000. 
181.22 	The consent by resolution requirement does not apply to financing under paragraph (a) on 
181.23 	behalf of a participating institution that is primarily an institution of higher education.

181.24 	Sec. 19. Minnesota Statutes 2024, section 136A.32, subdivision 4, is amended to read:
181.25 		Subd. 4.Provisions of resolution authorizing bonds. Any resolution or resolutions 
181.26 	authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which 
181.27 	shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:
181.28 	(1) pledging all or any part of the revenues of a project or projects, any revenue producing 
181.29 	contract or contracts made by the authority with any individual partnership, corporation or 
181.30 	association or other body one or more partnerships, corporations or associations, or other 
181.31 	bodies, public or private, to secure the payment of the revenue bonds or of any particular 
181.32 	issue of revenue bonds, subject to such agreements with bondholders as may then exist;
182.1 	(2) the rentals, fees and other charges to be charged, and the amounts to be raised in 
182.2 	each year thereby, and the use and disposition of the revenues;
182.3 	(3) the setting aside of reserves or sinking funds, and the regulation and disposition 
182.4 	thereof of them;
182.5 	(4) limitations on the right of the authority or its agent to restrict and regulate the use of 
182.6 	the project;
182.7 	(5) limitations on the purpose to which the proceeds of sale of any issue of revenue 
182.8 	bonds then or thereafter to be issued may be applied and pledging such the proceeds to 
182.9 	secure the payment of the revenue bonds or any issue of the revenue bonds;
182.10 	(6) limitations on the issuance of additional bonds, the terms upon which additional 
182.11 	bonds may be issued and secured and the refunding of outstanding bonds;
182.12 	(7) the procedure, if any, by which the terms of any contract with bondholders may be 
182.13 	amended or abrogated, the amount of bonds the holders of which must consent thereto to, 
182.14 	and the manner in which such consent may be given;
182.15 	(8) limitations on the amount of moneys derived from the project to be expended for 
182.16 	operating, administrative or other expenses of the authority;
182.17 	(9) defining the acts or omissions to act which shall constitute a default in the duties of 
182.18 	the authority to holders of its obligations and providing the rights and remedies of such the
182.19 	holders in the event of a default; or
182.20 	(10) the mortgaging of a project and the site thereof for the purpose of securing the 
182.21 	bondholders.

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

183.1 	Sec. 21. Minnesota Statutes 2024, section 136A.33, is amended to read:
183.2 	136A.33 TRUST AGREEMENT.
183.3 	In the discretion of the authority any revenue bonds issued under the provisions of 
183.4 	sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the 
183.5 	authority and a corporate trustee or trustees, which may be any trust company or bank having 
183.6 	the powers of a trust company within the state. Such The trust agreement or the resolution 
183.7 	providing for the issuance of such revenue bonds may pledge or assign the revenues to be 
183.8 	received or proceeds of any contract or contracts pledged and may convey or mortgage the 
183.9 	project or any portion thereof of the project. Such The trust agreement or resolution providing 
183.10 	for the issuance of such revenue bonds may contain such provisions for protecting and 
183.11 	enforcing the rights and remedies of the bondholders as may be reasonable and proper and 
183.12 	not in violation of laws, including particularly such particular provisions as have hereinabove
183.13 	that have been specifically authorized to be included in any resolution or resolutions of the 
183.14 	authority authorizing revenue bonds thereof. Any bank or trust company incorporated under 
183.15 	the laws of the state which that may act as depository of the proceeds of bonds or of revenues 
183.16 	or other moneys may furnish such indemnifying bonds or pledges suchpledge securities as 
183.17 	may be required by the authority. Any such trust agreement may set forth the rights and 
183.18 	remedies of the bondholders and of the trustee or trustees and may restrict the individual 
183.19 	right of action by bondholders. In addition to the foregoing, any such trust agreement or 
183.20 	resolution may contain such other provisions as the authority may deem reasonable and 
183.21 	proper for the security of the bondholders. All expenses incurred in carrying out the 
183.22 	provisions of such the trust agreement or resolution may be treated as a part of the cost of 
183.23 	the operation of a project.

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

184.3 	Sec. 23. Minnesota Statutes 2024, section 136A.34, subdivision 4, is amended to read:
184.4 		Subd. 4.Additional purpose; improvements. The portion of the proceeds of any such
184.5 	revenue bonds issued for the additional purpose of paying all or any part of the cost of 
184.6 	constructing and acquiring additions, improvements, extensions or enlargements of a project 
184.7 	may be invested or deposited in time deposits as provided in section 136A.32, subdivision 
184.8 	7.

184.9 	Sec. 24. Minnesota Statutes 2024, section 136A.36, is amended to read:
184.10 	136A.36 REVENUES.
184.11 	The authority may fix, revise, charge and collect rates, rents, fees and charges for the 
184.12 	use of and for the services furnished or to be furnished by each project and to may contract 
184.13 	with any person, partnership, association or corporation, or other body, public or private, 
184.14 	in respect thereof. Such The rates, rents, fees, and charges may vary between projects 
184.15 	involving an education facility and projects involving a health care facility and shall be 
184.16 	fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from such
184.17 	the project so as to provide funds sufficient with other revenues, if any:
184.18 	(1) to pay the cost of maintaining, repairing and operating the project and each and every 
184.19 	portion thereof of the project, to the extent that the payment of such the cost has not otherwise 
184.20 	been adequately provided for;
184.21 	(2) to pay the principal of and the interest on outstanding revenue bonds of the authority 
184.22 	issued in respect of such the project as the same shall become due and payable; and
184.23 	(3) to create and maintain reserves required or provided for in any resolution authorizing, 
184.24 	or trust agreement securing, such revenue bonds of the authority. Such The rates, rents, fees 
184.25 	and charges shall not be subject to supervision or regulation by any department, commission, 
184.26 	board, body, bureau or agency of this state other than the authority. A sufficient amount of 
184.27 	the revenues derived in respect of a project, except such part of such the revenues as may 
184.28 	be necessary to pay the cost of maintenance, repair and operation and to provide reserves 
184.29 	and for renewals, replacements, extensions, enlargements and improvements as may be 
184.30 	provided for in the resolution authorizing the issuance of any revenue bonds of the authority 
184.31 	or in the trust agreement securing the same, shall be set aside at such regular intervals as 
184.32 	may be provided in such the resolution or trust agreement in a sinking or other similar fund 
185.1 	which that is hereby pledged to, and charged with, the payment of the principal of and the 
185.2 	interest on such revenue bonds as the same shall become due, and the redemption price or 
185.3 	the purchase price of bonds retired by call or purchase as therein provided. Such The pledge 
185.4 	shall be valid and binding from the time when the pledge is made; the rates, rents, fees and 
185.5 	charges and other revenues or other moneys so pledged and thereafter received by the 
185.6 	authority shall immediately be subject to the lien of such the pledge without physical delivery 
185.7 	thereof or further act, and the lien of any such pledge shall be valid and binding as against 
185.8 	all parties having claims of any kind against the authority, irrespective of whether such the
185.9 	parties have notice thereof of the pledge. Neither the resolution nor any trust agreement by 
185.10 	which a pledge is created need be filed or recorded except in the records of the authority. 
185.11 	The use and disposition of moneys to the credit of such a sinking or other similar fund shall 
185.12 	be subject to the provisions of the resolution authorizing the issuance of such bonds or of 
185.13 	such a trust agreement. Except as may otherwise be provided in such the resolution or such
185.14 	trust agreement, such the sinking or other similar fund shall be a fund for all such revenue 
185.15 	bonds issued to finance a project or projects at one or more participating institutions of 
185.16 	higher education without distinction or priority of one over another; provided the authority 
185.17 	in any such resolution or trust agreement may provide that such the sinking or other similar 
185.18 	fund shall be the fund for a particular project at an a participating institution of higher 
185.19 	education and for the revenue bonds issued to finance a particular project and may, 
185.20 	additionally, permit and provide for the issuance of revenue bonds having a subordinate 
185.21 	lien in respect of the security herein authorized to other revenue bonds of the authority and, 
185.22 	in such case, the authority may create separate or other similar funds in respect of such the
185.23 	subordinate lien bonds.

185.24 	Sec. 25. Minnesota Statutes 2024, section 136A.38, is amended to read:
185.25 	136A.38 BONDS ELIGIBLE FOR INVESTMENT.
185.26 	Bonds issued by the authority under the provisions of sections 136A.25 to 136A.42, are 
185.27 	hereby made securities in which all public officers and public bodies of the state and its 
185.28 	political subdivisions, all insurance companies, trust companies, banking associations, 
185.29 	investment companies, executors, administrators, trustees and other fiduciaries may properly 
185.30 	and legally invest funds, including capital in their control or belonging to them; it being the 
185.31 	purpose of this section to authorize the investment in such bonds of all sinking, insurance, 
185.32 	retirement, compensation, pension and trust funds, whether owned or controlled by private 
185.33 	or public persons or officers; provided, however, that nothing contained in this section may 
185.34 	be construed as relieving any person, firm, or corporation from any duty of exercising due 
185.35 	care in selecting securities for purchase or investment; and provide further, that in no event 
186.1 	shall assets of pension funds of public employees of the state of Minnesota or any of its 
186.2 	agencies, boards or subdivisions, whether publicly or privately administered, be invested 
186.3 	in bonds issued under the provisions of sections 136A.25 to 136A.42. Such The bonds are 
186.4 	hereby constituted "authorized securities" within the meaning and for the purposes of 
186.5 	Minnesota Statutes 1969, section 50.14. Such The bonds are hereby made securities which
186.6 	that may properly and legally be deposited with and received by any state or municipal 
186.7 	officer or any agency or political subdivision of the state for any purpose for which the 
186.8 	deposit of bonds or obligations of the state now or may hereafter be authorized by law.

186.9 	Sec. 26. Minnesota Statutes 2024, section 136A.41, is amended to read:
186.10 	136A.41 CONFLICT OF INTEREST.
186.11 	Notwithstanding any other law to the contrary it shall not be or constitute a conflict of 
186.12 	interest for a trustee, director, officer or employee of any participating institution of higher 
186.13 	education, financial institution, investment banking firm, brokerage firm, commercial bank 
186.14 	or trust company, architecture firm, insurance company, construction company, or any other 
186.15 	firm, person or corporation to serve as a member of the authority, provided such the trustee, 
186.16 	director, officer or employee shall abstain from deliberation, action and vote by the authority 
186.17 	in each instance where the business affiliation of any such trustee, director, officer or 
186.18 	employee is involved.

186.19 	Sec. 27. Minnesota Statutes 2024, section 136A.42, is amended to read:
186.20 	136A.42 ANNUAL REPORT.
186.21 	The authority shall keep an accurate account of all of its activities and all of its receipts 
186.22 	and expenditures and shall annually report to the office. Each year, the authority shall submit 
186.23 	to the Minnesota Historical Society and the Legislative Reference Library a report of the 
186.24 	authority's activities in the previous year, including all financial activities.

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

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

187.7 	Sec. 30. REVISOR INSTRUCTION.
 187.8 	The revisor of statutes shall renumber the law establishing and governing the Minnesota 
187.9 	Higher Education Facilities Authority, renamed the Minnesota Health and Education 
187.10 	Facilities Authority in this act, as Minnesota Statutes, chapter 15D, coded in Minnesota 
187.11 	Statutes, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor of 
187.12 	statutes shall also duplicate any required definitions from Minnesota Statutes, chapter 136A, 
187.13 	revise any statutory cross-references consistent with the recoding, and report the history in 
187.14 	Minnesota Statutes, chapter 15D. The revisor of statutes shall change "Minnesota Higher 
187.15 	Education Facilities Authority" to "Minnesota Health and Higher Education Facilities 
187.16 	Authority" where it appears in Minnesota Statutes.

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

187.19 	ARTICLE 5
187.20 	PHARMACY BENEFITS

187.21 	Section 1. [62Q.83] FORMULARY CHANGES.
187.22 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
187.23 	the meanings given.
187.24 	(b) "Drug" has the meaning given in section 151.01, subdivision 5.
187.25 	(c) "Enrollee" has the meaning given in section 62Q.01, subdivision 2b.
187.26 	(d) "Formulary" means a current list of covered prescription drug products that is subject 
187.27 	to periodic review and update.
187.28 	(e) "Health plan" has the meaning given in section 62Q.01, subdivision 3.
188.1 	(f) "Pharmacy benefit manager" has the meaning given in section 62W.02, subdivision 
188.2 	15.
188.3 	(g) "Prescription" has the meaning given in section 151.01, subdivision 16a.
188.4 		Subd. 2.Formulary changes. (a) Except as provided in paragraphs (b) and (c), a health 
188.5 	plan must not, with respect to an enrollee who was previously prescribed the drug during 
188.6 	the plan year, remove a drug from the health plan's formulary or place a drug in a benefit 
188.7 	category that increases the enrollee's cost for the duration of the enrollee's plan year.
188.8 	(b) Paragraph (a) does not apply if a health plan changes the health plan's formulary:
188.9 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
188.10 	Administration (FDA);
188.11 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
188.12 	(3) when an independent source of research, clinical guidelines, or evidence-based 
188.13 	standards has issued drug-specific warnings or recommended changes with respect to a 
188.14 	drug's use for reasons related to previously unknown and imminent patient harm.
188.15 	(c) Paragraph (a) does not apply if a health plan removes a brand name drug from the 
188.16 	health plan's formulary or places a brand name drug in a benefit category that increases the 
188.17 	enrollee's cost if the health plan:
188.18 	(1) adds to the health plan's formulary a generic or multisource brand name drug rated 
188.19 	as therapeutically equivalent according to the FDA Orange Book, or a biologic drug rated 
188.20 	as interchangeable according to the FDA Purple Book, at the same or lower cost to the 
188.21 	enrollee; and
188.22 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

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

188.25 	Sec. 2. Minnesota Statutes 2024, section 256B.0625, subdivision 13, is amended to read:
188.26 		Subd. 13.Drugs. (a) Medical assistance covers drugs, except for fertility drugs when 
188.27 	specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed 
188.28 	by a licensed pharmacist, by a physician enrolled in the medical assistance program as a 
188.29 	dispensing physician, or by a physician, a physician assistant, or an advanced practice 
188.30 	registered nurse employed by or under contract with a community health board as defined 
188.31 	in section 145A.02, subdivision 5, for the purposes of communicable disease control.
189.1 	(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply unless 
189.2 	authorized by the commissioner or as provided in paragraph (h) or the drug appears on the 
189.3 	90-day supply list published by the commissioner. The 90-day supply list shall be published 
189.4 	by the commissioner on the department's website. The commissioner may add to, delete 
189.5 	from, and otherwise modify the 90-day supply list after providing public notice and the 
189.6 	opportunity for a 15-day public comment period. The 90-day supply list may include 
189.7 	cost-effective generic drugs and shall not include controlled substances.
189.8 	(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical 
189.9 	ingredient" is defined as a substance that is represented for use in a drug and when used in 
189.10 	the manufacturing, processing, or packaging of a drug becomes an active ingredient of the 
189.11 	drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle 
189.12 	for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and 
189.13 	excipients which are included in the medical assistance formulary. Medical assistance covers 
189.14 	selected active pharmaceutical ingredients and excipients used in compounded prescriptions 
189.15 	when the compounded combination is specifically approved by the commissioner or when 
189.16 	a commercially available product:
189.17 	(1) is not a therapeutic option for the patient;
189.18 	(2) does not exist in the same combination of active ingredients in the same strengths 
189.19 	as the compounded prescription; and
189.20 	(3) cannot be used in place of the active pharmaceutical ingredient in the compounded 
189.21 	prescription.
189.22 	(d) Medical assistance covers the following over-the-counter drugs when prescribed by 
189.23 	a licensed practitioner or by a licensed pharmacist who meets standards established by the 
189.24 	commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family 
189.25 	planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults 
189.26 	with documented vitamin deficiencies, vitamins for children under the age of seven and 
189.27 	pregnant or nursing women, and any other over-the-counter drug identified by the 
189.28 	commissioner, in consultation with the Formulary Committee, as necessary, appropriate, 
189.29 	and cost-effective for the treatment of certain specified chronic diseases, conditions, or 
189.30 	disorders, and this determination shall not be subject to the requirements of chapter 14. A 
189.31 	pharmacist may prescribe over-the-counter medications as provided under this paragraph 
189.32 	for purposes of receiving reimbursement under Medicaid. When prescribing over-the-counter 
189.33 	drugs under this paragraph, licensed pharmacists must consult with the recipient to determine 
190.1 	necessity, provide drug counseling, review drug therapy for potential adverse interactions, 
190.2 	and make referrals as needed to other health care professionals.
190.3 	(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable 
190.4 	under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and 
190.5 	Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible 
190.6 	for drug coverage as defined in the Medicare Prescription Drug, Improvement, and 
190.7 	Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these 
190.8 	individuals, medical assistance may cover drugs from the drug classes listed in United States 
190.9 	Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to 
190.10 	13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall 
190.11 	not be covered.
190.12 	(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing 
190.13 	Program and dispensed by 340B covered entities and ambulatory pharmacies under common 
190.14 	ownership of the 340B covered entity. Medical assistance does not cover drugs acquired 
190.15 	through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.
190.16 	(g) Notwithstanding paragraph (a), medical assistance covers self-administered hormonal 
190.17 	contraceptives prescribed and dispensed by a licensed pharmacist in accordance with section 
190.18 	151.37, subdivision 14; nicotine replacement medications prescribed and dispensed by a 
190.19 	licensed pharmacist in accordance with section 151.37, subdivision 15; and opiate antagonists 
190.20 	used for the treatment of an acute opiate overdose prescribed and dispensed by a licensed 
190.21 	pharmacist in accordance with section 151.37, subdivision 16.
190.22 	(h) Medical assistance coverage for a prescription contraceptive must provide a 12-month 
190.23 	supply for any prescription contraceptive if a 12-month supply is prescribed by the 
190.24 	prescribing health care provider. The prescribing health care provider must determine the 
190.25 	appropriate duration for which to prescribe the prescription contraceptives, up to 12 months. 
190.26 	For purposes of this paragraph, "prescription contraceptive" means any drug or device that 
190.27 	requires a prescription and is approved by the Food and Drug Administration to prevent 
190.28 	pregnancy. Prescription contraceptive does not include an emergency contraceptive drug 
190.29 	approved to prevent pregnancy when administered after sexual contact. For purposes of this 
190.30 	paragraph, "health plan" has the meaning provided in section 62Q.01, subdivision 3.
190.31 	(i) Notwithstanding a removal of a drug from the drug formulary under subdivision 13d, 
190.32 	except as provided in paragraphs (j) and (k), medical assistance covers a drug, with respect 
190.33 	to an enrollee who was previously prescribed the drug during the calendar year when the 
191.1 	drug was on the formulary, at the same level until January 1 of the calendar year following 
191.2 	the year in which the commissioner removed the drug from the formulary.
191.3 	(j) Paragraph (i) does not apply if the commissioner changes the drug formulary:
191.4 	(1) for a drug that has been deemed unsafe by the United States Food and Drug 
191.5 	Administration (FDA);
191.6 	(2) for a drug that has been withdrawn by the FDA or the drug manufacturer; or
191.7 	(3) when an independent source of research, clinical guidelines, or evidence-based 
191.8 	standards has issued drug-specific warnings or recommended changes with respect to a 
191.9 	drug's use for reasons related to previously unknown and imminent patient harm.
191.10 	(k) Paragraph (i) does not apply if the commissioner removes a brand name drug from 
191.11 	the formulary if the commissioner:
191.12 	(1) adds to the formulary a generic or multisource brand name drug rated as 
191.13 	therapeutically equivalent according to the FDA Orange Book, or a biologic drug rated as 
191.14 	interchangeable according to the FDA Purple Book, at the same or lower cost to the enrollee; 
191.15 	and
191.16 	(2) provides at least a 60-day notice to prescribers, pharmacists, and affected enrollees.

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

191.20 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, subdivision 13c, is amended to read:
191.21 		Subd. 13c.Formulary Committee. The commissioner, after receiving recommendations 
191.22 	from professional medical associations and professional pharmacy associations, and consumer 
191.23 	groups shall designate a Formulary Committee to carry out duties as described in subdivisions 
191.24 	13 to 13g. The Formulary Committee shall be comprised of at least five licensed physicians 
191.25 	actively engaged in the practice of medicine in Minnesota, one of whom is an actively 
191.26 	practicing psychiatrist, one of whom specializes in the diagnosis and treatment of rare 
191.27 	diseases, one of whom specializes in pediatrics, and one of whom actively treats persons 
191.28 	with disabilities; at least three licensed pharmacists actively engaged in the practice of 
191.29 	pharmacy in Minnesota, one of whom practices outside the metropolitan counties listed in 
191.30 	section 473.121, subdivision 4, one of whom practices in the metropolitan counties listed 
191.31 	in section 473.121, subdivision 4, and one of whom is a practicing hospital pharmacist; at 
191.32 	least two consumer representatives, all of whom must have a personal or professional 
192.1 	connection to medical assistance; and one representative designated by the Minnesota Rare 
192.2 	Disease Advisory Council established under section 256.4835; the remainder to be made 
192.3 	up of health care professionals who are licensed in their field and have recognized knowledge 
192.4 	in the clinically appropriate prescribing, dispensing, and monitoring of covered outpatient 
192.5 	drugs. Members of the Formulary Committee shall not be employed by the Department of 
192.6 	Human Services or have a personal interest in a pharmaceutical company, pharmacy benefits 
192.7 	manager, health plan company, or their affiliate organizations, but the committee shall be 
192.8 	staffed by an employee of the department who shall serve as an ex officio, nonvoting member 
192.9 	of the committee. For the purposes of this subdivision, "personal interest" means that a 
192.10 	person owns at least five percent of the voting interest or equity interest in the entity, the 
192.11 	equity interest owned by a person represents at least five percent of that person's net worth, 
192.12 	or more than five percent of a person's gross income for the preceding year was derived 
192.13 	from the entity. A committee member must notify the committee of any potential conflict 
192.14 	of interest and recuse themselves from any communications, discussion, or vote on any 
192.15 	matter where a conflict of interest exists. A conflict of interest alone, without a personal 
192.16 	interest, does not preclude an applicant from serving as a member of the Formulary 
192.17 	Committee. Members may be removed from the committee for cause after a recommendation 
192.18 	for removal by a majority of the committee membership. For the purposes of this subdivision, 
192.19 	"cause" does not include offering a differing or dissenting clinical opinion on a drug or drug 
192.20 	class. The department's medical director shall also serve as an ex officio, nonvoting member 
192.21 	for the committee. Committee members shall serve three-year terms and may be reappointed 
192.22 	twice by the commissioner. The committee members shall vote on a chair and vice chair 
192.23 	from among their membership. The chair shall preside over all committee meetings, and 
192.24 	the vice chair shall preside over the meetings if the chair is not present. The Formulary 
192.25 	Committee shall meet at least three times per year. The commissioner may require more 
192.26 	frequent Formulary Committee meetings as needed. An honorarium of $100 per meeting 
192.27 	and reimbursement for mileage shall be paid to each committee member in attendance. The 
192.28 	Formulary Committee expires June 30, 2027 2029. The Formulary Committee is subject to 
192.29 	the Open Meeting Law under chapter 13D. For purposes of establishing a quorum to transact 
192.30 	business, vacant committee member positions do not count in the calculation as long as at 
192.31 	least 60 percent of the committee member positions are filled.

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

192.33 	Sec. 4. Minnesota Statutes 2024, section 256B.0625, subdivision 13d, is amended to read:
192.34 		Subd. 13d.Drug formulary. (a) The commissioner shall establish a drug formulary. Its 
192.35 	establishment and publication shall not be subject to the requirements of the Administrative 
193.1 	Procedure Act, but the Formulary Committee shall review and comment on the formulary 
193.2 	contents.
193.3 	(b) The formulary shall not include:
193.4 	(1) drugs, active pharmaceutical ingredients, or products for which there is no federal 
193.5 	funding;
193.6 	(2) over-the-counter drugs, except as provided in subdivision 13;
193.7 	(3) drugs or active pharmaceutical ingredients when used for the treatment of impotence 
193.8 	or erectile dysfunction;
193.9 	(4) drugs or active pharmaceutical ingredients for which medical value has not been 
193.10 	established;
193.11 	(5) drugs from manufacturers who have not signed a rebate agreement with the 
193.12 	Department of Health and Human Services pursuant to section 1927 of title XIX of the 
193.13 	Social Security Act; and
193.14 	(6) medical cannabis flower as defined in section 342.01, subdivision 54, or medical 
193.15 	cannabinoid products as defined in section 342.01, subdivision 52.
193.16 	(c) If a single-source drug used by at least two percent of the fee-for-service medical 
193.17 	assistance recipients is removed from the formulary due to the failure of the manufacturer 
193.18 	to sign a rebate agreement with the Department of Health and Human Services, the 
193.19 	commissioner shall notify prescribing practitioners within 30 days of receiving notification 
193.20 	from the Centers for Medicare and Medicaid Services (CMS) that a rebate agreement was 
193.21 	not signed.
193.22 	(d) Within ten calendar days of any commissioner determination to change the drug 
193.23 	formulary, the commissioner must provide written notice to all enrollees affected by the 
193.24 	change. The notice must include a description of the change, the reason for the change, and 
193.25 	the date the change will become effective.
193.26 	(e) By January 15, 2026, and annually thereafter, the commissioner of human services 
193.27 	must provide a report with data and information related to the effects on enrollees of drug 
193.28 	formulary changes made in the prior calendar year to the chairs and ranking minority 
193.29 	members of the legislative committees with jurisdiction over health and human services 
193.30 	policy and finance. The report must include but is not limited to data and information on:
193.31 	(1) the number of times the formulary was changed;
194.1 	(2) the reasons for the formulary changes and how frequently the formulary was changed 
194.2 	for each reason;
194.3 	(3) the drugs that were removed from the formulary;
194.4 	(4) for each drug that was removed from the formulary, the number of enrollees who 
194.5 	were prescribed that drug when it was removed;
194.6 	(5) for each drug that was removed from the formulary, whether a therapeutically 
194.7 	equivalent drug was added;
194.8 	(6) the drugs that were added to the formulary;
194.9 	(7) the fiscal impacts to the Department of Human Services resulting from the changes 
194.10 	to the formulary; and
194.11 	(8) enrollee populations or medical conditions disproportionately affected by the 
194.12 	formulary changes.

194.13 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 13e, is amended to read:
194.14 		Subd. 13e.Payment rates. (a) The basis for determining the amount of payment shall 
194.15 	be the lower of the ingredient costs of the drugs plus the professional dispensing fee; or the 
194.16 	usual and customary price charged to the public. The usual and customary price means the 
194.17 	lowest price charged by the provider to a patient who pays for the prescription by cash, 
194.18 	check, or charge account and includes prices the pharmacy charges to a patient enrolled in 
194.19 	a prescription savings club or prescription discount club administered by the pharmacy or 
194.20 	pharmacy chain, unless the prescription savings club or prescription discount club is one 
194.21 	in which an individual pays a recurring monthly access fee for unlimited access to a defined 
194.22 	list of drugs for which the pharmacy does not bill the member or a payer on a 
194.23 	per-standard-transaction basis. The amount of payment basis must be reduced to reflect all 
194.24 	discount amounts applied to the charge by any third-party provider/insurer agreement or 
194.25 	contract for submitted charges to medical assistance programs. The net submitted charge 
194.26 	may not be greater than the patient liability for the service. The professional dispensing fee 
194.27 	shall be $11.55 for prescriptions filled with legend drugs meeting the definition of "covered 
194.28 	outpatient drugs" according to United States Code, title 42, section 1396r-8(k)(2). The 
194.29 	dispensing fee for intravenous solutions that must be compounded by the pharmacist shall 
194.30 	be $11.55 per claim. The professional dispensing fee for prescriptions filled with 
194.31 	over-the-counter drugs meeting the definition of covered outpatient drugs shall be $11.55 
194.32 	for dispensed quantities equal to or greater than the number of units contained in the 
194.33 	manufacturer's original package. The professional dispensing fee shall be prorated based 
195.1 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
195.2 	than the number of units contained in the manufacturer's original package. The pharmacy 
195.3 	dispensing fee for prescribed over-the-counter drugs not meeting the definition of covered 
195.4 	outpatient drugs shall be $3.65 for quantities equal to or greater than the number of units 
195.5 	contained in the manufacturer's original package and shall be prorated based on the 
195.6 	percentage of the package dispensed when the pharmacy dispenses a quantity less than the 
195.7 	number of units contained in the manufacturer's original package. The ingredient cost for 
195.8 	a drug is the lower of the National Average Drug Acquisition Cost (NADAC) shall be used 
195.9 	to determine the ingredient cost of a drug, the Minnesota actual acquisition cost (MNAAC) 
195.10 	as defined in paragraph (i), or the maximum allowable cost. For drugs for which a NADAC, 
195.11 	a MNAAC, or a maximum allowable cost is not reported, the commissioner shall estimate 
195.12 	the ingredient cost at the wholesale acquisition cost minus two percent. The ingredient cost 
195.13 	of a drug for a provider participating in the federal 340B Drug Pricing Program shall be 
195.14 	either the 340B Drug Pricing Program ceiling price established by the Health Resources 
195.15 	and Services Administration or, the NADAC, the MNAAC, or the maximum allowable 
195.16 	cost, whichever is lower. Wholesale acquisition cost is defined as the manufacturer's list 
195.17 	price for a drug or biological to wholesalers or direct purchasers in the United States, not 
195.18 	including prompt pay or other discounts, rebates, or reductions in price, for the most recent 
195.19 	month for which information is available, as reported in wholesale price guides or other 
195.20 	publications of drug or biological pricing data. The maximum allowable cost of a multisource
195.21 	drug may be set by the commissioner and it shall be comparable to the actual acquisition 
195.22 	cost of the drug product and no higher than the NADAC of the generic product. Establishment 
195.23 	of the amount of payment for drugs shall not be subject to the requirements of the 
195.24 	Administrative Procedure Act.
195.25 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
195.26 	an automated drug distribution system meeting the requirements of section 151.58, or a 
195.27 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
195.28 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
195.29 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
195.30 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
195.31 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
195.32 	pharmacy must use a billing period not less than one calendar month or 30 days.
195.33 	(c) A pharmacy provider using packaging that meets the standards set forth in Minnesota 
195.34 	Rules, part 6800.2700, is required to credit the department for the actual acquisition cost 
195.35 	of all unused drugs that are eligible for reuse, unless the pharmacy is using retrospective 
196.1 	billing. The commissioner may permit the drug clozapine to be dispensed in a quantity that 
196.2 	is less than a 30-day supply.
196.3 	(d) If a pharmacy dispenses a multisource drug, the ingredient cost shall be the lesser 
196.4 	of the NADAC of the generic product, the MNAAC of the generic product, or the maximum 
196.5 	allowable cost of the generic product established by the commissioner unless prior 
196.6 	authorization for the brand name product has been granted according to the criteria 
196.7 	established by the Drug Formulary Committee as required by subdivision 13f, paragraph 
196.8 	(a), and the prescriber has indicated "dispense as written" on the prescription in a manner 
196.9 	consistent with section 151.21, subdivision 2. If prior authorization is granted, the ingredient 
196.10 	cost shall be the lesser of the NADAC of the brand name product, the MNAAC of the brand 
196.11 	name product, or the maximum allowable cost of the brand name product. A generic product 
196.12 	includes a generic drug, an authorized generic drug, and a biosimilar biological product as 
196.13 	defined in Code of Federal Regulations, title 42, section 423.4. A brand name product 
196.14 	includes a brand name drug, a brand name biological product, and an unbranded biological 
196.15 	product as defined in Code of Federal Regulations, title 42, section 423.4.
196.16 	(e) The basis for determining the amount of payment for drugs administered in an 
196.17 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
196.18 	provider, 106 percent of the average sales price as determined by the United States 
196.19 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
196.20 	federal Social Security Act, the specialty pharmacy rate MNAAC, or the maximum allowable 
196.21 	cost set by the commissioner. If the average sales price is, the MNAAC, and the maximum 
196.22 	allowable cost are unavailable, the amount of payment must be lower of the usual and 
196.23 	customary cost submitted by the provider, or the wholesale acquisition cost, the specialty 
196.24 	pharmacy rate, or the maximum allowable cost set by the commissioner. The commissioner 
196.25 	shall discount the payment rate for drugs obtained through the federal 340B Drug Pricing 
196.26 	Program by 28.6 percent. The payment for drugs administered in an outpatient setting shall 
196.27 	be made to the administering facility or practitioner. A retail or specialty pharmacy dispensing 
196.28 	a drug for administration in an outpatient setting is not eligible for direct reimbursement.
196.29 	(f) The commissioner may establish maximum allowable cost rates for specialty pharmacy 
196.30 	products that are lower than the ingredient cost formulas specified in paragraph (a). The 
196.31 	commissioner may require individuals enrolled in the health care programs administered 
196.32 	by the department to obtain specialty pharmacy products from providers with whom the 
196.33 	commissioner has negotiated lower reimbursement rates. Specialty pharmacy products are 
196.34 	defined as those used by a small number of recipients or recipients with complex and chronic 
196.35 	diseases that require expensive and challenging drug regimens. Examples of these conditions 
197.1 	include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, 
197.2 	growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of 
197.3 	cancer. Specialty pharmaceutical products include injectable and infusion therapies, 
197.4 	biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies that 
197.5 	require complex care. The commissioner shall consult with the Formulary Committee to 
197.6 	develop a list of specialty pharmacy products subject to maximum allowable cost 
197.7 	reimbursement. In consulting with the Formulary Committee in developing this list, the 
197.8 	commissioner shall take into consideration the population served by specialty pharmacy 
197.9 	products, the current delivery system and standard of care in the state, and access to care 
197.10 	issues. The commissioner shall have the discretion to adjust the maximum allowable cost 
197.11 	to prevent access to care issues.
197.12 	(g) (f) Home infusion therapy services provided by home infusion therapy pharmacies 
197.13 	must be paid at rates according to subdivision 8d.
197.14 	(h) (g) The commissioner shall contract with a vendor to conduct a cost of dispensing 
197.15 	survey for all pharmacies that are physically located in the state of Minnesota that dispense 
197.16 	outpatient drugs under medical assistance. The commissioner shall ensure that the vendor 
197.17 	has prior experience in conducting cost of dispensing surveys. Each pharmacy enrolled with 
197.18 	the department to dispense outpatient prescription drugs to fee-for-service members must 
197.19 	respond to the cost of dispensing survey. The commissioner may sanction a pharmacy under 
197.20 	section 256B.064 for failure to respond. The commissioner shall require the vendor to 
197.21 	measure a single statewide cost of dispensing for specialty prescription drugs and a single 
197.22 	statewide cost of dispensing for nonspecialty prescription drugs for all responding pharmacies 
197.23 	to measure the mean, mean weighted by total prescription volume, mean weighted by 
197.24 	medical assistance prescription volume, median, median weighted by total prescription 
197.25 	volume, and median weighted by total medical assistance prescription volume. The 
197.26 	commissioner shall post a copy of the final cost of dispensing survey report on the 
197.27 	department's website. The initial survey must be completed no later than January 1, 2021, 
197.28 	and repeated every three two years. The commissioner shall provide a summary of the 
197.29 	results of each cost of dispensing survey and provide recommendations for any changes to 
197.30 	the dispensing fee to the chairs and ranking minority members of the legislative committees 
197.31 	with jurisdiction over medical assistance pharmacy reimbursement. Notwithstanding section 
197.32 	256.01, subdivision 42, this paragraph does not expire.
197.33 	(i) (h) The commissioner shall increase the ingredient cost reimbursement calculated in 
197.34 	paragraphs (a) and (f) (e) by 1.8 percent the amount of the wholesale drug distributor tax
198.1 	for prescription and nonprescription drugs subject to the wholesale drug distributor tax 
198.2 	under section 295.52.
198.3 	(i) The commissioner shall contract with a vendor to create MNAAC through a periodic 
198.4 	survey of enrolled pharmacy providers. Each pharmacy enrolled with the department to 
198.5 	dispense outpatient prescription drugs must respond to the periodic surveys. The 
198.6 	commissioner may sanction a pharmacy under section 256B.064 for failure to respond. The 
198.7 	current MNAAC rates must be publicly available on the department's or vendor's website. 
198.8 	The commissioner must require that the MNAAC is measured and calculated at least 
198.9 	quarterly, but the MNAAC can be measured and calculated more frequently. The 
198.10 	commissioner must ensure that the vendor has an appeal process available to providers for 
198.11 	the time between the measurement and calculation of the periodically updated MNAAC 
198.12 	rates if price fluctuations result in a MNAAC that is lower than the price at which enrolled 
198.13 	providers can purchase a drug. Establishment of the MNAAC and survey reporting 
198.14 	requirements shall not be subject to the requirements of the Administrative Procedure Act. 
198.15 	Data provided by pharmacies for the measurement and calculation of the MNAAC are 
198.16 	nonpublic data as defined in section 13.02, subdivision 9.

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

198.20 	Sec. 6. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
198.21 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
198.22 	any individual or entity that receives payments from medical assistance or provides goods 
198.23 	or services for which payment is made from medical assistance for any of the following: 
198.24 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
198.25 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
198.26 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
198.27 	a pattern of making false statements of material facts for the purpose of obtaining greater 
198.28 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
198.29 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
198.30 	regular business hours to examine all records necessary to disclose the extent of services 
198.31 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
198.32 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
198.33 	errors in the maintenance of health service or financial records for which a fine was imposed 
198.34 	or after issuance of a warning by the commissioner; and (8) any reason for which an 
199.1 	individual or entity could be excluded from participation in the Medicare program under 
199.2 	section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the purposes of this 
199.3 	section, goods or services for which payment is made from medical assistance includes but 
199.4 	is not limited to care and services identified in section 256B.0625 or provided pursuant to 
199.5 	any federally approved waiver.
199.6 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
199.7 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
199.8 	(h) (g).
199.9 	(c) The commissioner may impose sanctions against a pharmacy provider for failure to 
199.10 	respond to a Minnesota drug acquisition cost survey under section 256B.0625, subdivision 
199.11 	13e, paragraph (i).

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

199.15 	Sec. 7. Minnesota Statutes 2024, section 256B.69, subdivision 6d, is amended to read:
199.16 		Subd. 6d.Prescription drugs. (a) The commissioner may exclude or modify coverage 
199.17 	for prescription drugs from the prepaid managed care contracts entered into under this 
199.18 	section in order to increase savings to the state by collecting additional prescription drug 
199.19 	rebates.
199.20 	(b) The contracts must maintain incentives for the managed care plan to manage drug 
199.21 	costs and utilization and may require that the managed care plans maintain an open drug 
199.22 	formulary. In order to manage drug costs and utilization, the contracts may authorize the 
199.23 	managed care plans to use preferred drug lists and prior authorization. The contracts must 
199.24 	require that the managed care plans enter into contracts with the state's selected pharmacy 
199.25 	benefit manager vendor to administer the pharmacy benefit.
199.26 	(c) This subdivision is contingent on federal approval of the managed care contract 
199.27 	changes and the collection of additional prescription drug rebates.

199.28 	Sec. 8. Minnesota Statutes 2024, section 256B.69, is amended by adding a subdivision to 
199.29 	read:
199.30 		Subd. 6i.Directed pharmacy dispensing payment. (a) The commissioner shall provide 
199.31 	a directed pharmacy dispensing payment of $4.50 per filled prescription to eligible outpatient 
199.32 	retail pharmacies in Minnesota to improve and maintain access to pharmaceutical services 
200.1 	in rural and underserved areas of Minnesota. Managed care and county-based purchasing 
200.2 	plans delivering services under section 256B.69 or 256B.692, and any pharmacy benefit 
200.3 	managers under contract with these entities, must pay the directed pharmacy dispensing 
200.4 	payment to eligible outpatient retail pharmacies for drugs dispensed to medical assistance 
200.5 	enrollees. The directed pharmacy dispensing payment is in addition to, and must not supplant 
200.6 	or reduce, any other dispensing fee paid by these entities to the pharmacy. Entities paying 
200.7 	the directed pharmacy dispensing payment must not reduce other payments to the pharmacy 
200.8 	as a result of payment of the directed pharmacy dispensing payment.
200.9 	(b) For purposes of this subdivision, "eligible outpatient retail pharmacy" means an 
200.10 	outpatient retail pharmacy licensed under chapter 151 that is not owned, either directly or 
200.11 	indirectly or through an affiliate or subsidiary, by a pharmacy benefit manager licensed 
200.12 	under chapter 62W or a health carrier, as defined in section 62A.011, subdivision 2, and 
200.13 	that:
200.14 	(1) is located in a medically underserved area or primarily serves a medically underserved 
200.15 	population, as defined by the United States Department of Health and Human Services 
200.16 	Health Resources and Services Administration under United States Code, title 42, section 
200.17 	254; or
200.18 	(2) shares common ownership with 12 or fewer Minnesota pharmacies.
200.19 	(c) In order to receive the directed pharmacy dispensing payment, a pharmacy must 
200.20 	submit to the commissioner a form, developed by the commissioner, attesting that the 
200.21 	pharmacy meets the requirements of paragraph (b).
200.22 	(d) Managed care and county-based purchasing plans, and any pharmacy benefit managers 
200.23 	under contract with these entities, shall pay the directed pharmacy dispensing payment to 
200.24 	eligible outpatient retail pharmacies. The commissioner shall monitor the effect of this 
200.25 	requirement on access to pharmaceutical services in rural and underserved areas of 
200.26 	Minnesota. If, for any contract year, federal approval is not received for this subdivision, 
200.27 	the commissioner must adjust the capitation rates paid to managed care plans and 
200.28 	county-based purchasing plans for that contract year to reflect removal of this subdivision. 
200.29 	Contracts between managed care plans and county-based purchasing plans, and any pharmacy 
200.30 	benefit managers under contract with these entities, and providers to whom this subdivision 
200.31 	applies, must allow recovery of payments from those providers if capitation rates are adjusted 
200.32 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
200.33 	to any increase in rates that results from this subdivision. This subdivision expires if federal 
200.34 	approval is not received for this subdivision at any time.
201.1 	(e) This subdivision expires on December 31, 2026.

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

201.5 	Sec. 9. [256B.696] PRESCRIPTION DRUGS; STATE PHARMACY BENEFIT 
201.6 	MANAGER.
201.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
201.8 	the meanings given.
201.9 	(b) "Managed care plans" means health plans and county-based purchasing organizations 
201.10 	providing coverage to medical assistance and MinnesotaCare enrollees under the managed 
201.11 	care delivery system.
201.12 	(c) "Managed care enrollees" means medical assistance and MinnesotaCare enrollees 
201.13 	receiving coverage from managed care plans.
201.14 	(d) "State pharmacy benefit manager" means the pharmacy benefit manager selected 
201.15 	pursuant to the procurement process in subdivision 2.
201.16 		Subd. 2.Procurement process. (a) The commissioner must, through a competitive 
201.17 	procurement process in compliance with paragraph (b), select a single pharmacy benefit 
201.18 	manager to comply with the requirements set forth in subdivision 3. The single pharmacy 
201.19 	benefit manager selected under this subdivision must be a prepaid ambulatory health plan, 
201.20 	as defined in Code of Federal Regulations, title 42, section 438.2.
201.21 	(b) When selecting the single pharmacy benefit manager, the commissioner must:
201.22 	(1) accept applications for entities seeking to become the single pharmacy benefit 
201.23 	manager;
201.24 	(2) establish eligibility criteria an entity must meet in order to become the single pharmacy 
201.25 	benefit manager; and
201.26 	(3) enter into a master contract with a single pharmacy benefit manager.
201.27 	(c) The contract required under paragraph (b), clause (3), must include provisions that 
201.28 	prohibit the single pharmacy benefit manager from:
201.29 	(1) requiring, enticing, or coercing an enrollee to obtain pharmacy services, including 
201.30 	a prescription drug, from a pharmacy owned or otherwise affiliated with the single pharmacy 
201.31 	benefit manager;
202.1 	(2) communicating to an enrollee, in any manner, that the enrollee is required to obtain 
202.2 	pharmacy services or have a prescription dispensed at, or pharmacy services provided by, 
202.3 	a particular pharmacy owned or affiliated with the single pharmacy benefit manager if there 
202.4 	are other nonaffiliated pharmacies that have the ability to dispense the medication or provide 
202.5 	the services and are also in network;
202.6 	(3) requiring an enrollee to obtain pharmacy services, including a prescription drug, 
202.7 	exclusively through a mail order pharmacy;
202.8 	(4) directly or indirectly retroactively denying or reducing a claim or aggregate of claims 
202.9 	for pharmacy services, including prescription drugs, after adjudication of the claim or 
202.10 	aggregate of claims;
202.11 	(5) paying or reimbursing a pharmacy or pharmacist for the ingredient drug product 
202.12 	component of pharmacist services, including a prescription drug, less than the lesser of 
202.13 	national average drug acquisition cost; the Minnesota actual acquisition cost (MNAAC) as 
202.14 	defined in section 256B.0625, subdivision 13e, paragraph (i); or the maximum allowable 
202.15 	cost as defined in section 62W.08 of that pharmacy service or prescription drug, or, if the 
202.16 	national average drug acquisition cost is unavailable, the wholesale acquisition cost minus 
202.17 	two percent at the time the drug is administered or dispensed, plus a professional dispensing 
202.18 	fee equal to the amount of the dispensing fee if it were determined pursuant to section 
202.19 	256B.0625, subdivision 13e; and
202.20 	(6) denying a pharmacy or pharmacist the right to participate as a contract provider under 
202.21 	the health plan if the pharmacy or pharmacist agrees to provide pharmacy services, including 
202.22 	but not limited to prescription drugs that meet the terms and requirements set forth by the 
202.23 	health plan and agrees to the terms of reimbursement set forth by the health plan company.
202.24 	(d) Applicants for the single pharmacy benefit manager must disclose to the commissioner 
202.25 	the following during the procurement process:
202.26 	(1) any activity, policy, practice, contract, or arrangement of the single pharmacy benefit 
202.27 	manager that may directly or indirectly present any conflict of interest with the pharmacy 
202.28 	benefit manager's relationship with or obligation to the Department of Human Services, a 
202.29 	health plan company, or a county-based purchasing organization;
202.30 	(2) all common ownership, members of a board of directors, managers, or other control 
202.31 	of the pharmacy benefit manager or any of the pharmacy benefit manager's affiliated 
202.32 	companies with:
203.1 	(i) a health plan company administering medical assistance or MinnesotaCare benefits 
203.2 	in Minnesota or an affiliate of the health plan company;
203.3 	(ii) a county-based purchasing organization;
203.4 	(iii) an entity that contracts on behalf of a pharmacy or any pharmacy services 
203.5 	administration organization and its affiliates;
203.6 	(iv) a drug wholesaler or distributor and its affiliates;
203.7 	(v) a third-party payer and its affiliates; or
203.8 	(vi) a pharmacy and its affiliates;
203.9 	(3) any direct or indirect fees, charges, or any kind of assessments imposed by the 
203.10 	pharmacy benefit manager on pharmacies licensed in Minnesota with which the pharmacy 
203.11 	benefit manager shares common ownership, management, or control, or that are owned, 
203.12 	managed, or controlled by any of the pharmacy benefit manager's affiliated companies;
203.13 	(4) any direct or indirect fees, charges, or any kind of assessments imposed by the 
203.14 	pharmacy benefit manager on pharmacies licensed in Minnesota; and
203.15 	(5) any financial terms and arrangements between the pharmacy benefit manager and a 
203.16 	prescription drug manufacturer or labeler, including formulary management, drug substitution 
203.17 	programs, educational support claims processing, or data sales fees.
203.18 		Subd. 3.Drug coverage. (a) The commissioner may require the state pharmacy benefit 
203.19 	manager to modify utilization review limitations, requirements, and strategies imposed by 
203.20 	managed care plans on prescription drug coverage.
203.21 	(b) The state pharmacy benefit manager is responsible for processing all point of sale 
203.22 	outpatient pharmacy claims under the managed care delivery system. Managed care plans 
203.23 	must use the state pharmacy benefit manager pursuant to the terms of the master contract 
203.24 	required under subdivision 2, paragraph (b), clause (3). The pharmacy benefit manager 
203.25 	selected is the exclusive pharmacy benefit manager used by health plan companies and 
203.26 	county-based purchasing organizations when providing coverage to enrollees. The 
203.27 	commissioner may require the managed care plans and state pharmacy benefit manager to 
203.28 	directly exchange data and files for members enrolled with managed care plans.
203.29 	(c) All payment arrangements between the Department of Human Services, managed 
203.30 	care plans, and the state pharmacy benefit manager must comply with state and federal 
203.31 	statutes, regulations adopted by the Centers for Medicare and Medicaid Services, and any 
204.1 	other agreement between the department and the Centers for Medicare and Medicaid Services. 
204.2 	The commissioner may change a payment arrangement to comply with this paragraph.
204.3 	(d) The commissioner must administer and oversee this section to:
204.4 	(1) ensure proper administration of prescription drug benefits for managed care enrollees; 
204.5 	and
204.6 	(2) increase the transparency of prescription drug prices and other information for the 
204.7 	benefit of pharmacies.
204.8 		Subd. 4.Prescription drug disclosures. (a) The state pharmacy benefit manager must, 
204.9 	on request from the commissioner, disclose to the commissioner all sources of payment the 
204.10 	pharmacy benefit manager receives for prescribed drugs, including drug rebates, discounts, 
204.11 	credits, clawbacks, fees, grants, chargebacks, reimbursements, or other financial benefits 
204.12 	or payments related to services provided for a managed care plan.
204.13 	(b) Each managed care plan must disclose to the commissioner, in the format specified 
204.14 	by the commissioner, the entity's administrative costs associated with providing pharmacy 
204.15 	services under the managed care delivery system.
204.16 	(c) The state pharmacy benefit manager must provide a written quarterly report to the 
204.17 	commissioner containing the following information from the immediately preceding quarter:
204.18 	(1) the prices the state pharmacy benefit manager negotiated for prescribed drugs under 
204.19 	the managed care delivery system. The prices must include any rebates the state pharmacy 
204.20 	benefit manager received from the drug manufacturer;
204.21 	(2) unredacted copies of contracts between the state pharmacy benefit manager and 
204.22 	enrolled pharmacies;
204.23 	(3) any rebate amounts the state pharmacy benefit manager passed on to individual 
204.24 	pharmacies;
204.25 	(4) any changes to the information previously disclosed in accordance with subdivision 
204.26 	2, paragraph (d); and
204.27 	(5) any other information required by the commissioner.
204.28 	(d) The commissioner may request and collect additional information and clinical data 
204.29 	from the state pharmacy benefit manager.
204.30 	(e) At the time of contract execution, renewal, or modification, the commissioner must 
204.31 	modify the reporting requirements under its managed care contracts as necessary to meet 
204.32 	the requirements of this subdivision.
205.1 		Subd. 5.Program authority. (a) To accomplish the requirements of subdivision 3, 
205.2 	paragraph (d), the commissioner, in consultation with the Formulary Committee established 
205.3 	under section 256B.0625, subdivision 13c, has the authority to:
205.4 	(1) adopt or develop a preferred drug list for managed care plans;
205.5 	(2) at the commissioner's discretion, engage in price negotiations with prescription drug 
205.6 	manufacturers, wholesalers, or group purchasing organizations in place of the state pharmacy 
205.7 	benefit manager to obtain price discounts and rebates for prescription drugs for managed 
205.8 	care enrollees; and
205.9 	(3) develop and manage a drug formulary for managed care plans.
205.10 	(b) The commissioner may contract with one or more entities to perform any of the 
205.11 	functions described in paragraph (a).
205.12 		Subd. 6.Pharmacies. The commissioner may review contracts between the state 
205.13 	pharmacy benefit manager and pharmacies for compliance with this section and the master 
205.14 	contract required under subdivision 2, paragraph (b), clause (3). The commissioner may 
205.15 	amend any term or condition of a contract that does not comply with this section or the 
205.16 	master contract.
205.17 		Subd. 7.Federal approval. The commissioner must seek any necessary federal approvals 
205.18 	to implement this section.

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

205.23 	ARTICLE 6
205.24 	HUMAN SERVICES HEALTH CARE FINANCE

205.25 	Section 1. Minnesota Statutes 2024, section 62A.673, subdivision 2, is amended to read:
205.26 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
205.27 	have the meanings given.
205.28 	(b) "Distant site" means a site at which a health care provider is located while providing 
205.29 	health care services or consultations by means of telehealth.
205.30 	(c) "Health care provider" means a health care professional who is licensed or registered 
205.31 	by the state to perform health care services within the provider's scope of practice and in 
206.1 	accordance with state law. A health care provider includes a mental health professional 
206.2 	under section 245I.04, subdivision 2; a mental health practitioner under section 245I.04, 
206.3 	subdivision 4; a clinical trainee under section 245I.04, subdivision 6; a treatment coordinator 
206.4 	under section 245G.11, subdivision 7; an alcohol and drug counselor under section 245G.11, 
206.5 	subdivision 5; and a recovery peer under section 245G.11, subdivision 8.
206.6 	(d) "Health carrier" has the meaning given in section 62A.011, subdivision 2.
206.7 	(e) "Health plan" has the meaning given in section 62A.011, subdivision 3. Health plan 
206.8 	includes dental plans as defined in section 62Q.76, subdivision 3, but does not include dental 
206.9 	plans that provide indemnity-based benefits, regardless of expenses incurred, and are designed 
206.10 	to pay benefits directly to the policy holder.
206.11 	(f) "Originating site" means a site at which a patient is located at the time health care 
206.12 	services are provided to the patient by means of telehealth. For purposes of store-and-forward 
206.13 	technology, the originating site also means the location at which a health care provider 
206.14 	transfers or transmits information to the distant site.
206.15 	(g) "Store-and-forward technology" means the asynchronous electronic transfer or 
206.16 	transmission of a patient's medical information or data from an originating site to a distant 
206.17 	site for the purposes of diagnostic and therapeutic assistance in the care of a patient.
206.18 	(h) "Telehealth" means the delivery of health care services or consultations through the 
206.19 	use of real time two-way interactive audio and visual communications to provide or support 
206.20 	health care delivery and facilitate the assessment, diagnosis, consultation, treatment, 
206.21 	education, and care management of a patient's health care. Telehealth includes the application 
206.22 	of secure video conferencing, store-and-forward technology, and synchronous interactions 
206.23 	between a patient located at an originating site and a health care provider located at a distant 
206.24 	site. Until July 1, 2025 2028, telehealth also includes audio-only communication between 
206.25 	a health care provider and a patient in accordance with subdivision 6, paragraph (b) if the 
206.26 	communication is a scheduled appointment and the standard of care for that particular 
206.27 	service can be met through the use of audio-only communication or if, for substance use 
206.28 	disorder treatment services and mental health care services delivered through telehealth by 
206.29 	means of audio-only communication, the communication was initiated by the enrollee while 
206.30 	in an emergency or crisis situation and a scheduled appointment was not possible due to 
206.31 	the need of an immediate response. Telehealth does not include communication between 
206.32 	health care providers that consists solely of a telephone conversation, email, or facsimile 
206.33 	transmission. Telehealth does not include communication between a health care provider 
207.1 	and a patient that consists solely of an email or facsimile transmission. Telehealth does not 
207.2 	include telemonitoring services as defined in paragraph (i).
207.3 	(i) "Telemonitoring services" means the remote monitoring of clinical data related to 
207.4 	the enrollee's vital signs or biometric data by a monitoring device or equipment that transmits 
207.5 	the data electronically to a health care provider for analysis. Telemonitoring is intended to 
207.6 	collect an enrollee's health-related data for the purpose of assisting a health care provider 
207.7 	in assessing and monitoring the enrollee's medical condition or status.

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

207.9 	Sec. 2. Minnesota Statutes 2024, section 62M.17, subdivision 2, is amended to read:
207.10 		Subd. 2.Effect of change in prior authorization clinical criteria. (a) If, during a plan 
207.11 	year, or a calendar year for fee-for-service providers under chapters 256B and 256L, a 
207.12 	utilization review organization changes coverage terms for a health care service or the 
207.13 	clinical criteria used to conduct prior authorizations for a health care service, the change in 
207.14 	coverage terms or change in clinical criteria shall not apply until the next plan year, or the 
207.15 	next calendar year for fee-for-service providers under chapters 256B and 256L, for any 
207.16 	enrollee who received prior authorization for a health care service using the coverage terms 
207.17 	or clinical criteria in effect before the effective date of the change.
207.18 	(b) Paragraph (a) does not apply if a utilization review organization changes coverage 
207.19 	terms for a drug or device that has been deemed unsafe by the United States Food and Drug 
207.20 	Administration (FDA); that has been withdrawn by either the FDA or the product 
207.21 	manufacturer; or when an independent source of research, clinical guidelines, or 
207.22 	evidence-based standards has issued drug- or device-specific warnings or recommended 
207.23 	changes in drug or device usage.
207.24 	(c) Paragraph (a) does not apply if a utilization review organization changes coverage 
207.25 	terms for a service or the clinical criteria used to conduct prior authorizations for a service 
207.26 	when an independent source of research, clinical guidelines, or evidence-based standards 
207.27 	has recommended changes in usage of the service for reasons related to patient harm. This 
207.28 	paragraph expires December 31, 2025, for health benefit plans offered, sold, issued, or 
207.29 	renewed on or after that date.
207.30 	(d) Effective January 1, 2026, and applicable to health benefit plans offered, sold, issued, 
207.31 	or renewed on or after that date, paragraph (a) does not apply if a utilization review 
207.32 	organization changes coverage terms for a service or the clinical criteria used to conduct 
207.33 	prior authorizations for a service when an independent source of research, clinical guidelines, 
208.1 	or evidence-based standards has recommended changes in usage of the service for reasons 
208.2 	related to previously unknown and imminent patient harm.
208.3 	(e) Paragraph (a) does not apply if a utilization review organization removes a brand 
208.4 	name drug from its formulary or places a brand name drug in a benefit category that increases 
208.5 	the enrollee's cost, provided the utilization review organization (1) adds to its formulary a 
208.6 	generic or multisource brand name drug rated as therapeutically equivalent according to 
208.7 	the FDA Orange Book, or a biologic drug rated as interchangeable according to the FDA 
208.8 	Purple Book, at a lower cost to the enrollee, and (2) provides at least a 60-day notice to 
208.9 	prescribers, pharmacists, and affected enrollees.

208.10 	Sec. 3. Minnesota Statutes 2024, section 256.9657, is amended by adding a subdivision 
208.11 	to read:
208.12 		Subd. 2b.Hospital assessment. (a) For purposes of this subdivision, the following terms 
208.13 	have the meanings given:
208.14 	(1) "eligible hospital" means a hospital licensed under section 144.50 and located in 
208.15 	Minnesota;
208.16 	(2) "net outpatient revenue" means the value reflecting total outpatient revenue less 
208.17 	Medicare revenue as calculated from Worksheet G of the hospital's most recent Medicare 
208.18 	cost report filed and showing in the Healthcare Cost Report Information System (HCRIS) 
208.19 	as of August 1 of each year; and
208.20 	(3) "total patient days" means the value reflecting total hospital inpatient days as reported 
208.21 	on Worksheet S-3 of the hospital's most recent Medicare cost report filed and showing in 
208.22 	HCRIS as of August 1 of each year.
208.23 	(b) Subject to paragraphs (m) to (o), each eligible hospital must pay to the hospital 
208.24 	directed payment program account assessments in an aggregate annual amount equal to the 
208.25 	sum of the following:
208.26 	(1) $120.22 multiplied by total patient days; and
208.27 	(2) 5.96 percent of the hospital's net outpatient revenue.
208.28 	(c) The assessment amount for calendar years 2026 and 2027 must be based on the total 
208.29 	patient days and net outpatient revenue in 2021 for each eligible hospital.
208.30 	(d) The commissioner may, after consultation with the Minnesota Hospital Association, 
208.31 	modify the rates of assessment in paragraph (b) as necessary to comply with federal law, 
208.32 	obtain or maintain a waiver under Code of Federal Regulations, title 42, section 433.72, or 
209.1 	to otherwise maximize under this section federal financial participation for medical assistance. 
209.2 	Notwithstanding the foregoing authorization to maximize federal financial participation for 
209.3 	medical assistance, the commissioner must reduce the rates of assessment in paragraph (b) 
209.4 	as necessary to ensure:
209.5 	(1) the state's aggregated health care-related taxes on inpatient hospital services do not 
209.6 	exceed five percent of the net patient revenue attributable to those services; and
209.7 	(2) the state's aggregated health care-related taxes on outpatient hospital services do not 
209.8 	exceed five percent of the net patient revenue attributable to those services.
209.9 	(e) Eligible hospitals must pay the annual assessment amount under paragraph (b) to the 
209.10 	commissioner by paying four equal quarterly assessments. Eligible hospitals must pay the 
209.11 	quarterly assessments by January 1, April 1, July 1, and October 1 each year. Eligible 
209.12 	hospitals must pay the assessments in the form and manner specified by the commissioner. 
209.13 	An eligible hospital is prohibited from paying a quarterly assessment until the eligible 
209.14 	hospital has received the applicable invoice under paragraph (f). The commissioner may 
209.15 	make the assessment retroactive to the first quarter for which federal approval is effective.
209.16 	(f) The commissioner must provide eligible hospitals with an invoice by December 1 
209.17 	for the assessment due January 1, March 1 for the assessment due April 1, June 1 for the 
209.18 	assessment due July 1, and September 1 for the assessment due October 1 each year.
209.19 	(g) The commissioner must notify each eligible hospital of its estimated annual assessment 
209.20 	amount for the subsequent calendar year by October 15 each year.
209.21 	(h) If any of the dates for assessments or invoices in paragraphs (e) to (g) fall on a 
209.22 	holiday, the applicable date is the next business day.
209.23 	(i) A hospital is not required to pay an assessment under this subdivision until the start 
209.24 	of the first full fiscal year the hospital is an eligible hospital. A hospital that has merged 
209.25 	with another hospital must have the hospital's assessment revised at the start of the first full 
209.26 	fiscal year after the merger is complete. A closed hospital is retroactively responsible for 
209.27 	assessments owed for services provided through the final date of operations.
209.28 	(j) If the commissioner determines that a hospital has underpaid or overpaid an 
209.29 	assessment, the commissioner must notify the hospital of the unpaid assessment or of any 
209.30 	refund due.
209.31 	(k) Revenue from an assessment under this subdivision must only be used by the 
209.32 	commissioner to pay the nonfederal share of the directed payment program under section 
209.33 	256B.1974.
210.1 	(l) The commissioner is prohibited from collecting any assessment under this subdivision 
210.2 	during any period of time when:
210.3 	(1) federal financial participation is unavailable, disallowed, or reduced by at least 15 
210.4 	percent relative to the state's share of medical assistance as of April 1, 2025; or
210.5 	(2) a directed payment under section 256B.1974 is not approved by the Centers for 
210.6 	Medicare and Medicaid Services.
210.7 	(m) The commissioner must make the following discounts from the inpatient portion of 
210.8 	the assessment under paragraph (b), clause (1), in the stated amount or as necessary to 
210.9 	achieve federal approval of the assessment in this section:
210.10 	(1) for Hennepin Healthcare, a discount of 25 percent off the inpatient portion of the 
210.11 	assessment rate;
210.12 	(2) for Mayo Rochester, a discount of ten percent off the inpatient portion of the 
210.13 	assessment rate; and
210.14 	(3) for Gillette Children's Hospital, a discount of 90 percent off the inpatient portion of 
210.15 	the assessment rate.
210.16 	(n) The commissioner must make the following discounts from the outpatient portion 
210.17 	of the assessment under paragraph (b), clause (2), in the stated amount or as necessary to 
210.18 	achieve federal approval of the assessment in this section:
210.19 	(1) for each critical access hospital or independent hospital located outside a city of the 
210.20 	first class and paid under the Medicare prospective payment system, a discount of 40 percent 
210.21 	off the outpatient portion of the assessment rate;
210.22 	(2) for Gillette Children's Hospital, a discount of 90 percent off the outpatient portion 
210.23 	of the assessment rate;
210.24 	(3) for Hennepin Healthcare, a discount of 60 percent off the outpatient portion of the 
210.25 	assessment rate; and
210.26 	(4) for Mayo Rochester, a discount of 20 percent off the outpatient portion of the 
210.27 	assessment rate.
210.28 	(o) The commissioner must fully exempt the following from the assessment in this 
210.29 	section:
210.30 	(1) federal Indian Health Service facilities;
210.31 	(2) state-owned or state-operated regional treatment centers and all state-operated services;
211.1 	(3) federal Veterans Administration Medical Centers; and
211.2 	(4) long-term acute care hospitals.
211.3 	(p) If the federal share of the hospital directed payment program under section 256B.1974 
211.4 	is increased as the result of an increase to the federal medical assistance percentage, then 
211.5 	the commissioner must reduce the assessment on a uniform percentage basis across eligible 
211.6 	hospitals on which the assessment is imposed, such that the aggregate amount collected 
211.7 	from hospitals under this subdivision does not exceed the total amount needed to maintain 
211.8 	the same aggregate state and federal funding level for the directed payments authorized by 
211.9 	section 256B.1974.
211.10 	(q) Hospitals subject to the assessment under this subdivision must submit to the 
211.11 	commissioner on an annual basis, in the form and manner specified by the commissioner 
211.12 	in consultation with the Minnesota Hospital Association, all documentation necessary to 
211.13 	determine the assessment amounts under this subdivision.
211.14 	(r) Any disproportionate share hospital payments that are supplanted due to the 
211.15 	implementation of the hospital directed payment program under section 256B.1974 must 
211.16 	be redirected into the hospital directed payment program as an offset to the assessment 
211.17 	under this section owed by all medical assistance disproportionate share hospitals as defined 
211.18 	in section 256.969, subdivision 9, and reduce their assessments on a uniform basis.
211.19 	(s) Any future state funding sources identified and used toward the hospital directed 
211.20 	payment program under section 256B.1974 may be used to offset the assessment under this 
211.21 	section.

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

211.28 	Sec. 4. Minnesota Statutes 2024, section 256.969, subdivision 2b, is amended to read:
211.29 		Subd. 2b.Hospital payment rates. (a) For discharges occurring on or after November 
211.30 	1, 2014, hospital inpatient services for hospitals located in Minnesota shall be paid according 
211.31 	to the following:
212.1 	(1) critical access hospitals as defined by Medicare shall be paid using a cost-based 
212.2 	methodology;
212.3 	(2) long-term hospitals as defined by Medicare shall be paid on a per diem methodology 
212.4 	under subdivision 25;
212.5 	(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation 
212.6 	distinct parts as defined by Medicare shall be paid according to the methodology under 
212.7 	subdivision 12; and
212.8 	(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
212.9 	(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall not 
212.10 	be rebased, except that a Minnesota long-term hospital shall be rebased effective January 
212.11 	1, 2011, based on its most recent Medicare cost report ending on or before September 1, 
212.12 	2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on 
212.13 	December 31, 2010. For rate setting periods after November 1, 2014, in which the base 
212.14 	years are updated, a Minnesota long-term hospital's base year shall remain within the same 
212.15 	period as other hospitals.
212.16 	(c) Effective for discharges occurring on and after November 1, 2014, payment rates 
212.17 	for hospital inpatient services provided by hospitals located in Minnesota or the local trade 
212.18 	area, except for the hospitals paid under the methodologies described in paragraph (a), 
212.19 	clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a 
212.20 	manner similar to Medicare. The base year or years for the rates effective November 1, 
212.21 	2014, shall be calendar year 2012. The rebasing under this paragraph shall be budget neutral, 
212.22 	ensuring that the total aggregate payments under the rebased system are equal to the total 
212.23 	aggregate payments that were made for the same number and types of services in the base 
212.24 	year. Separate budget neutrality calculations shall be determined for payments made to 
212.25 	critical access hospitals and payments made to hospitals paid under the DRG system. Only 
212.26 	the rate increases or decreases under subdivision 3a or 3c that applied to the hospitals being 
212.27 	rebased during the entire base period shall be incorporated into the budget neutrality 
212.28 	calculation.
212.29 	(d) For discharges occurring on or after November 1, 2014, through the next rebasing 
212.30 	that occurs, the rebased rates under paragraph (c) that apply to hospitals under paragraph 
212.31 	(a), clause (4), shall include adjustments to the projected rates that result in no greater than 
212.32 	a five percent increase or decrease from the base year payments for any hospital. Any 
212.33 	adjustments to the rates made by the commissioner under this paragraph and paragraph (e) 
212.34 	shall maintain budget neutrality as described in paragraph (c).
213.1 	(e) For discharges occurring on or after November 1, 2014, the commissioner may make 
213.2 	additional adjustments to the rebased rates, and when evaluating whether additional 
213.3 	adjustments should be made, the commissioner shall consider the impact of the rates on the 
213.4 	following:
213.5 	(1) pediatric services;
213.6 	(2) behavioral health services;
213.7 	(3) trauma services as defined by the National Uniform Billing Committee;
213.8 	(4) transplant services;
213.9 	(5) obstetric services, newborn services, and behavioral health services provided by 
213.10 	hospitals outside the seven-county metropolitan area;
213.11 	(6) outlier admissions;
213.12 	(7) low-volume providers; and
213.13 	(8) services provided by small rural hospitals that are not critical access hospitals.
213.14 	(f) Hospital payment rates established under paragraph (c) must incorporate the following:
213.15 	(1) for hospitals paid under the DRG methodology, the base year payment rate per 
213.16 	admission is standardized by the applicable Medicare wage index and adjusted by the 
213.17 	hospital's disproportionate population adjustment;
213.18 	(2) for critical access hospitals, payment rates for discharges between November 1, 2014, 
213.19 	and June 30, 2015, shall be set to the same rate of payment that applied for discharges on 
213.20 	October 31, 2014;
213.21 	(3) the cost and charge data used to establish hospital payment rates must only reflect 
213.22 	inpatient services covered by medical assistance; and
213.23 	(4) in determining hospital payment rates for discharges occurring on or after the rate 
213.24 	year beginning January 1, 2011, through December 31, 2012, the hospital payment rate per 
213.25 	discharge shall be based on the cost-finding methods and allowable costs of the Medicare 
213.26 	program in effect during the base year or years. In determining hospital payment rates for 
213.27 	discharges in subsequent base years, the per discharge rates shall be based on the cost-finding 
213.28 	methods and allowable costs of the Medicare program in effect during the base year or 
213.29 	years.
213.30 	(g) The commissioner shall validate the rates effective November 1, 2014, by applying 
213.31 	the rates established under paragraph (c), and any adjustments made to the rates under 
214.1 	paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine whether the 
214.2 	total aggregate payments for the same number and types of services under the rebased rates 
214.3 	are equal to the total aggregate payments made during calendar year 2013.
214.4 	(h) Effective for discharges occurring on or after July 1, 2017, and every two years 
214.5 	thereafter, payment rates under this section shall be rebased to reflect only those changes 
214.6 	in hospital costs between the existing base year or years and the next base year or years. In 
214.7 	any year that inpatient claims volume falls below the threshold required to ensure a 
214.8 	statistically valid sample of claims, the commissioner may combine claims data from two 
214.9 	consecutive years to serve as the base year. Years in which inpatient claims volume is 
214.10 	reduced or altered due to a pandemic or other public health emergency shall not be used as 
214.11 	a base year or part of a base year if the base year includes more than one year. Changes in 
214.12 	costs between base years shall be measured using the lower of the hospital cost index defined 
214.13 	in subdivision 1, paragraph (a), or the percentage change in the case mix adjusted cost per 
214.14 	claim. The commissioner shall establish the base year for each rebasing period considering 
214.15 	the most recent year or years for which filed Medicare cost reports are available, except 
214.16 	that the base years for the rebasing effective July 1, 2023, are calendar years 2018 and 2019. 
214.17 	The estimated change in the average payment per hospital discharge resulting from a 
214.18 	scheduled rebasing must be calculated and made available to the legislature by January 15 
214.19 	of each year in which rebasing is scheduled to occur, and must include by hospital the 
214.20 	differential in payment rates compared to the individual hospital's costs.
214.21 	(i) Effective for discharges occurring on or after July 1, 2015, inpatient payment rates 
214.22 	for critical access hospitals located in Minnesota or the local trade area shall be determined 
214.23 	using a new cost-based methodology. The commissioner shall establish within the 
214.24 	methodology tiers of payment designed to promote efficiency and cost-effectiveness. 
214.25 	Payment rates for hospitals under this paragraph shall be set at a level that does not exceed 
214.26 	the total cost for critical access hospitals as reflected in base year cost reports. Until the 
214.27 	next rebasing that occurs, the new methodology shall result in no greater than a five percent 
214.28 	decrease from the base year payments for any hospital, except a hospital that had payments 
214.29 	that were greater than 100 percent of the hospital's costs in the base year shall have their 
214.30 	rate set equal to 100 percent of costs in the base year. The rates paid for discharges on and 
214.31 	after July 1, 2016, covered under this paragraph shall be increased by the inflation factor 
214.32 	in subdivision 1, paragraph (a). The new cost-based rate shall be the final rate and shall not 
214.33 	be settled to actual incurred costs. Hospitals shall be assigned a payment tier based on the 
214.34 	following criteria:
215.1 	(1) hospitals that had payments at or below 80 percent of their costs in the base year 
215.2 	shall have a rate set that equals 85 percent of their base year costs;
215.3 	(2) hospitals that had payments that were above 80 percent, up to and including 90 
215.4 	percent of their costs in the base year shall have a rate set that equals 95 percent of their 
215.5 	base year costs; and
215.6 	(3) hospitals that had payments that were above 90 percent of their costs in the base year 
215.7 	shall have a rate set that equals 100 percent of their base year costs.
215.8 	(j) The commissioner may refine the payment tiers and criteria for critical access hospitals 
215.9 	to coincide with the next rebasing under paragraph (h). The factors used to develop the new 
215.10 	methodology may include, but are not limited to:
215.11 	(1) the ratio between the hospital's costs for treating medical assistance patients and the 
215.12 	hospital's charges to the medical assistance program;
215.13 	(2) the ratio between the hospital's costs for treating medical assistance patients and the 
215.14 	hospital's payments received from the medical assistance program for the care of medical 
215.15 	assistance patients;
215.16 	(3) the ratio between the hospital's charges to the medical assistance program and the 
215.17 	hospital's payments received from the medical assistance program for the care of medical 
215.18 	assistance patients;
215.19 	(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
215.20 	(5) the proportion of that hospital's costs that are administrative and trends in 
215.21 	administrative costs; and
215.22 	(6) geographic location.
215.23 	(k) Subject to subdivision 2g, effective for discharges occurring on or after January 1, 
215.24 	2024, the rates paid to hospitals described in paragraph (a), clauses (2) to (4), must include 
215.25 	a rate factor specific to each hospital that qualifies for a medical education and research 
215.26 	cost distribution under section 62J.692, subdivision 4, paragraph (a).
215.27 	(l) Effective for discharges occurring on or after January 1, 2028, or on or after the date 
215.28 	of federal approval, whichever is later, the commissioner must increase by an annual 
215.29 	aggregate amount of $10,000,000:
215.30 	(1) payments for inpatient behavioral health services provided by hospitals paid under 
215.31 	the DRG methodology by increasing the adjustment for behavioral health services under 
215.32 	section 256.969, subdivision 2b, paragraph (e); and
216.1 	(2) capitation payments made to managed care plans and county-based purchasing plans 
216.2 	to reflect the rate increase provided under this paragraph. Managed care and county-based 
216.3 	purchasing plans must use the capitation rate increase provided under this clause to increase 
216.4 	payment rates for inpatient behavioral health services provided by hospitals paid under the 
216.5 	DRG methodology. The commissioner must monitor the effect of this rate increase on 
216.6 	enrollee access to behavioral health services. If for any contract year federal approval is not 
216.7 	received for this clause, the commissioner must adjust the capitation rates paid to managed 
216.8 	care plans and county-based purchasing plans for that contract year to reflect the removal 
216.9 	of this clause. Contracts between managed care plans and county-based purchasing plans 
216.10 	and providers to whom this paragraph applies must allow recovery of payments from those 
216.11 	providers if capitation rates are adjusted in accordance with this clause. Payment recoveries 
216.12 	must not exceed the amount equal to any increase in rates that results from this paragraph.

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

216.14 	Sec. 5. Minnesota Statutes 2024, section 256B.0625, subdivision 3b, is amended to read:
216.15 		Subd. 3b.Telehealth services. (a) Medical assistance covers medically necessary services 
216.16 	and consultations delivered by a health care provider through telehealth in the same manner 
216.17 	as if the service or consultation was delivered through in-person contact. Services or 
216.18 	consultations delivered through telehealth shall be paid at the full allowable rate.
216.19 	(b) The commissioner may establish criteria that a health care provider must attest to in 
216.20 	order to demonstrate the safety or efficacy of delivering a particular service through 
216.21 	telehealth. The attestation may include that the health care provider:
216.22 	(1) has identified the categories or types of services the health care provider will provide 
216.23 	through telehealth;
216.24 	(2) has written policies and procedures specific to services delivered through telehealth 
216.25 	that are regularly reviewed and updated;
216.26 	(3) has policies and procedures that adequately address patient safety before, during, 
216.27 	and after the service is delivered through telehealth;
216.28 	(4) has established protocols addressing how and when to discontinue telehealth services; 
216.29 	and
216.30 	(5) has an established quality assurance process related to delivering services through 
216.31 	telehealth.
217.1 	(c) As a condition of payment, a licensed health care provider must document each 
217.2 	occurrence of a health service delivered through telehealth to a medical assistance enrollee. 
217.3 	Health care service records for services delivered through telehealth must meet the 
217.4 	requirements set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and must 
217.5 	document:
217.6 	(1) the type of service delivered through telehealth;
217.7 	(2) the time the service began and the time the service ended, including an a.m. and p.m. 
217.8 	designation;
217.9 	(3) the health care provider's basis for determining that telehealth is an appropriate and 
217.10 	effective means for delivering the service to the enrollee;
217.11 	(4) the mode of transmission used to deliver the service through telehealth and records 
217.12 	evidencing that a particular mode of transmission was utilized;
217.13 	(5) the location of the originating site and the distant site;
217.14 	(6) if the claim for payment is based on a physician's consultation with another physician 
217.15 	through telehealth, the written opinion from the consulting physician providing the telehealth 
217.16 	consultation; and
217.17 	(7) compliance with the criteria attested to by the health care provider in accordance 
217.18 	with paragraph (b).
217.19 	(d) Telehealth visits provided through audio and visual communication or accessible 
217.20 	video-based platforms may be used to satisfy the face-to-face requirement for reimbursement 
217.21 	under the payment methods that apply to a federally qualified health center, rural health 
217.22 	clinic, Indian health service, 638 tribal clinic, and certified community behavioral health 
217.23 	clinic, if the service would have otherwise qualified for payment if performed in person.
217.24 	(e) For purposes of this subdivision, unless otherwise covered under this chapter:
217.25 	(1) "telehealth" means the delivery of health care services or consultations using real-time 
217.26 	two-way interactive audio and visual communication or accessible telehealth video-based 
217.27 	platforms to provide or support health care delivery and facilitate the assessment, diagnosis, 
217.28 	consultation, treatment, education, and care management of a patient's health care. Telehealth 
217.29 	includes: the application of secure video conferencing consisting of a real-time, full-motion 
217.30 	synchronized video; store-and-forward technology; and synchronous interactions, between 
217.31 	a patient located at an originating site and a health care provider located at a distant site. 
217.32 	Telehealth does not include communication between health care providers, or between a 
217.33 	health care provider and a patient that consists solely of an audio-only communication, 
218.1 	email, or facsimile transmission or as specified by law, except that from July 1, 2025, to 
218.2 	July 1, 2028, telehealth includes communication between a health care provider and a patient 
218.3 	that solely consists of audio-only communication;
218.4 	(2) "health care provider" means a health care provider as defined under section 62A.673; 
218.5 	a community paramedic as defined under section 144E.001, subdivision 5f; a community 
218.6 	health worker who meets the criteria under subdivision 49, paragraph (a); a mental health 
218.7 	certified peer specialist under section 245I.04, subdivision 10; a mental health certified 
218.8 	family peer specialist under section 245I.04, subdivision 12; a mental health rehabilitation 
218.9 	worker under section 245I.04, subdivision 14; a mental health behavioral aide under section 
218.10 	245I.04, subdivision 16; a treatment coordinator under section 245G.11, subdivision 7; an 
218.11 	alcohol and drug counselor under section 245G.11, subdivision 5; or a recovery peer under 
218.12 	section 245G.11, subdivision 8; and
218.13 	(3) "originating site," "distant site," and "store-and-forward technology" have the 
218.14 	meanings given in section 62A.673, subdivision 2.

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

218.18 	Sec. 6. Minnesota Statutes 2024, section 256B.0625, subdivision 17a, is amended to read:
218.19 		Subd. 17a.Payment for ambulance services. (a) Medical assistance covers ambulance 
218.20 	services. Providers shall bill ambulance services according to Medicare criteria. 
218.21 	Nonemergency ambulance services shall not be paid as emergencies. Effective for services 
218.22 	rendered on or after July 1, 2001, medical assistance payments for ambulance services shall 
218.23 	be paid at the Medicare reimbursement rate or at the medical assistance payment rate in 
218.24 	effect on July 1, 2000, whichever is greater.
218.25 	(b) Effective for services provided on or after July 1, 2016, medical assistance payment 
218.26 	rates for ambulance services identified in this paragraph are increased by five percent. 
218.27 	Capitation payments made to managed care plans and county-based purchasing plans for 
218.28 	ambulance services provided on or after January 1, 2017, shall be increased to reflect this 
218.29 	rate increase. The increased rate described in this paragraph applies to ambulance service 
218.30 	providers whose base of operations as defined in section 144E.10 is located:
218.31 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
218.32 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
218.33 	(2) within a municipality with a population of less than 1,000.
219.1 	(c) Effective for services provided statewide on or after January 1, 2026, medical 
219.2 	assistance payment rates for ambulance services are increased by 15 percent. Capitation 
219.3 	payments made to managed care plans and county-based purchasing plans for ambulance 
219.4 	services provided on or after January 1, 2026, must be increased to reflect this rate increase.
219.5 	(d) Effective for services provided on or after January 1, 2026, medical assistance 
219.6 	payment rates for ambulance services identified in this paragraph are increased by ten 
219.7 	percent. Capitation payments made to managed care plans and county-based purchasing 
219.8 	plans for ambulance services provided on or after January 1, 2026, must be increased to 
219.9 	reflect this rate increase. The increased rate described in this paragraph applies to ambulance 
219.10 	service providers whose base of operations, as defined in section 144E.001, is located:
219.11 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 
219.12 	the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
219.13 	(2) within a municipality with a population of less than 1,000.
219.14 	(c) (e) Effective for the first day of each calendar quarter in which the price of gasoline 
219.15 	as posted publicly by the United States Energy Information Administration exceeds $3.00 
219.16 	per gallon, the commissioner shall adjust the rate paid per mile in paragraph (a) by one 
219.17 	percent up or down for every increase or decrease of ten cents for the price of gasoline. The 
219.18 	increase or decrease must be calculated using a base gasoline price of $3.00. The percentage 
219.19 	increase or decrease must be calculated using the average of the most recently available 
219.20 	price of all grades of gasoline for Minnesota as posted publicly by the United States Energy 
219.21 	Information Administration.
219.22 	(d) (f) Managed care plans and county-based purchasing plans must provide a fuel 
219.23 	adjustment for ambulance services rates when fuel exceeds $3 per gallon. If, for any contract 
219.24 	year, federal approval is not received for this paragraph, the commissioner must adjust the 
219.25 	capitation rates paid to managed care plans and county-based purchasing plans for that 
219.26 	contract year to reflect the removal of this provision. Contracts between managed care plans 
219.27 	and county-based purchasing plans and providers to whom this paragraph applies must 
219.28 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
219.29 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
219.30 	in rates that results from this paragraph. This paragraph expires if federal approval is not 
219.31 	received for this paragraph at any time.

220.1 	Sec. 7. Minnesota Statutes 2024, section 256B.0625, subdivision 25c, is amended to read:
220.2 		Subd. 25c.Applicability of utilization review provisions. (a) Effective January 1, 
220.3 	2026, the following provisions of chapter 62M apply to the commissioner when delivering 
220.4 	services under chapters 256B and 256L: 62M.02, subdivisions 1 to 5, 7 to 12, 13, 14 to 18, 
220.5 	and 21; 62M.04; 62M.05, subdivisions 1 to 4; 62M.06, subdivisions 1 to 3; 62M.07; 
220.6 	62M.072; 62M.09; 62M.10; 62M.12; and 62M.17, subdivision 2; and 62M.18.
220.7 	(b) By April 1, 2026, and each April 1 thereafter, managed care plans and county-based 
220.8 	purchasing plans when the plan is providing coverage to enrollees under chapter 256B or 
220.9 	256L, and the commissioner when delivering services under chapters 256B and 256L, must 
220.10 	post on the entity's public website the following data for the immediately preceding calendar 
220.11 	year for each health plan or program:
220.12 	(1) the number of prior authorization requests for which an authorization was issued;
220.13 	(2) the number of prior authorization requests for which an adverse determination was 
220.14 	issued and sorted by:
220.15 	(i) health care service;
220.16 	(ii) whether the adverse determination was appealed; and
220.17 	(iii) whether the adverse determination was upheld or reversed on appeal;
220.18 	(3) the number of prior authorization requests that were submitted electronically and 
220.19 	not by facsimile or email or other method pursuant to section 62J.497; and
220.20 	(4) the reasons for prior authorization denial, including but not limited to:
220.21 	(i) the patient did not meet prior authorization criteria;
220.22 	(ii) the provider submitted incomplete information to the utilization review organization;
220.23 	(iii) a change in treatment program; and
220.24 	(iv) the patient is no longer covered by the plan or program.
220.25 	(c) All information posted under paragraph (b) must be written in easily understandable 
220.26 	language.

220.27 	Sec. 8. Minnesota Statutes 2024, section 256B.0625, subdivision 30, is amended to read:
220.28 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic services, 
220.29 	federally qualified health center services, nonprofit community health clinic services, and 
220.30 	public health clinic services. Rural health clinic services and federally qualified health center 
221.1 	services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and 
221.2 	(C). Payment for rural health clinic and federally qualified health center services shall be 
221.3 	made according to applicable federal law and regulation.
221.4 	(b) A federally qualified health center (FQHC) that is beginning initial operation shall 
221.5 	submit an estimate of budgeted costs and visits for the initial reporting period in the form 
221.6 	and detail required by the commissioner. An FQHC that is already in operation shall submit 
221.7 	an initial report using actual costs and visits for the initial reporting period. Within 90 days 
221.8 	of the end of its reporting period, an FQHC shall submit, in the form and detail required by 
221.9 	the commissioner, a report of its operations, including allowable costs actually incurred for 
221.10 	the period and the actual number of visits for services furnished during the period, and other 
221.11 	information required by the commissioner. FQHCs that file Medicare cost reports shall 
221.12 	provide the commissioner with a copy of the most recent Medicare cost report filed with 
221.13 	the Medicare program intermediary for the reporting year which support the costs claimed 
221.14 	on their cost report to the state.
221.15 	(c) In order to continue cost-based payment under the medical assistance program 
221.16 	according to paragraphs (a) and (b), an FQHC or rural health clinic must apply for designation 
221.17 	as an essential community provider within six months of final adoption of rules by the 
221.18 	Department of Health according to section 62Q.19, subdivision 7. For those FQHCs and 
221.19 	rural health clinics that have applied for essential community provider status within the 
221.20 	six-month time prescribed, medical assistance payments will continue to be made according 
221.21 	to paragraphs (a) and (b) for the first three years after application. For FQHCs and rural 
221.22 	health clinics that either do not apply within the time specified above or who have had 
221.23 	essential community provider status for three years, medical assistance payments for health 
221.24 	services provided by these entities shall be according to the same rates and conditions 
221.25 	applicable to the same service provided by health care providers that are not FQHCs or rural 
221.26 	health clinics.
221.27 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring an FQHC or a rural 
221.28 	health clinic to make application for an essential community provider designation in order 
221.29 	to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
221.30 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall 
221.31 	be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
221.32 	(f) Effective January 1, 2001, through December 31, 2020, each FQHC and rural health 
221.33 	clinic may elect to be paid either under the prospective payment system established in United 
221.34 	States Code, title 42, section 1396a(aa), or under an alternative payment methodology 
222.1 	consistent with the requirements of United States Code, title 42, section 1396a(aa), and 
222.2 	approved by the Centers for Medicare and Medicaid Services. The alternative payment 
222.3 	methodology shall be 100 percent of cost as determined according to Medicare cost 
222.4 	principles.
222.5 	(g) Effective for services provided on or after January 1, 2021, all claims for payment 
222.6 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
222.7 	commissioner, according to an annual election by the FQHC or rural health clinic, under 
222.8 	the current prospective payment system described in paragraph (f) or the alternative payment 
222.9 	methodology described in paragraph (l), or, upon federal approval, for FQHCs that are also 
222.10 	urban Indian organizations under Title V of the federal Indian Health Improvement Act, as 
222.11 	provided under paragraph (k).
222.12 	(h) For purposes of this section, "nonprofit community clinic" is a clinic that:
222.13 	(1) has nonprofit status as specified in chapter 317A;
222.14 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
222.15 	(3) is established to provide health services to low-income population groups, uninsured, 
222.16 	high-risk and special needs populations, underserved and other special needs populations;
222.17 	(4) employs professional staff at least one-half of which are familiar with the cultural 
222.18 	background of their clients;
222.19 	(5) charges for services on a sliding fee scale designed to provide assistance to 
222.20 	low-income clients based on current poverty income guidelines and family size; and
222.21 	(6) does not restrict access or services because of a client's financial limitations or public 
222.22 	assistance status and provides no-cost care as needed.
222.23 	(i) Effective for services provided on or after January 1, 2015, all claims for payment 
222.24 	of clinic services provided by FQHCs and rural health clinics shall be paid by the 
222.25 	commissioner. the commissioner shall determine the most feasible method for paying claims 
222.26 	from the following options:
222.27 	(1) FQHCs and rural health clinics submit claims directly to the commissioner for 
222.28 	payment, and the commissioner provides claims information for recipients enrolled in a 
222.29 	managed care or county-based purchasing plan to the plan, on a regular basis; or
222.30 	(2) FQHCs and rural health clinics submit claims for recipients enrolled in a managed 
222.31 	care or county-based purchasing plan to the plan, and those claims are submitted by the 
222.32 	plan to the commissioner for payment to the clinic.
223.1 	(j) For clinic services provided prior to January 1, 2015, the commissioner shall calculate 
223.2 	and pay monthly the proposed managed care supplemental payments to clinics, and clinics 
223.3 	shall conduct a timely review of the payment calculation data in order to finalize all 
223.4 	supplemental payments in accordance with federal law. Any issues arising from a clinic's 
223.5 	review must be reported to the commissioner by January 1, 2017. Upon final agreement 
223.6 	between the commissioner and a clinic on issues identified under this subdivision, and in 
223.7 	accordance with United States Code, title 42, section 1396a(bb), no supplemental payments 
223.8 	for managed care plan or county-based purchasing plan claims for services provided prior 
223.9 	to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are 
223.10 	unable to resolve issues under this subdivision, the parties shall submit the dispute to the 
223.11 	arbitration process under section 14.57.
223.12 	(k) The commissioner shall establish an encounter payment rate that is equivalent to the 
223.13 	all inclusive rate (AIR) payment established by the Indian Health Service and published in 
223.14 	the Federal Register. The encounter rate must be updated annually and must reflect the 
223.15 	changes in the AIR established by the Indian Health Service each calendar year. FQHCs 
223.16 	that are also urban Indian organizations under Title V of the federal Indian Health 
223.17 	Improvement Act may elect to be paid: (1) at the encounter rate established under this 
223.18 	paragraph; (2) under the alternative payment methodology described in paragraph (l); or 
223.19 	(3) under the federally required prospective payment system described in paragraph (f). 
223.20 	FQHCs that elect to be paid at the encounter rate established under this paragraph must 
223.21 	continue to meet all state and federal requirements related to FQHCs and urban Indian 
223.22 	organizations, and must maintain their statuses as FQHCs and urban Indian organizations.
223.23 	(l) All claims for payment of clinic services provided by FQHCs and rural health clinics, 
223.24 	that have elected to be paid under this paragraph, shall be paid by the commissioner according 
223.25 	to the following requirements:
223.26 	(1) the commissioner shall establish a single medical and single dental organization 
223.27 	encounter rate for each FQHC and rural health clinic when applicable;
223.28 	(2) each FQHC and rural health clinic is eligible for same day reimbursement of one 
223.29 	medical and one dental organization encounter rate if eligible medical and dental visits are 
223.30 	provided on the same day;
223.31 	(3) the commissioner shall reimburse FQHCs and rural health clinics, in accordance 
223.32 	with current applicable Medicare cost principles, their allowable costs, including direct 
223.33 	patient care costs and patient-related support services. Nonallowable costs include, but are 
223.34 	not limited to:
224.1 	(i) general social services and administrative costs;
224.2 	(ii) retail pharmacy;
224.3 	(iii) patient incentives, food, housing assistance, and utility assistance;
224.4 	(iv) external lab and x-ray;
224.5 	(v) navigation services;
224.6 	(vi) health care taxes;
224.7 	(vii) advertising, public relations, and marketing;
224.8 	(viii) office entertainment costs, food, alcohol, and gifts;
224.9 	(ix) contributions and donations;
224.10 	(x) bad debts or losses on awards or contracts;
224.11 	(xi) fines, penalties, damages, or other settlements;
224.12 	(xii) fundraising, investment management, and associated administrative costs;
224.13 	(xiii) research and associated administrative costs;
224.14 	(xiv) nonpaid workers;
224.15 	(xv) lobbying;
224.16 	(xvi) scholarships and student aid; and
224.17 	(xvii) nonmedical assistance covered services;
224.18 	(4) the commissioner shall review the list of nonallowable costs in the years between 
224.19 	the rebasing process established in clause (5), in consultation with the Minnesota Association 
224.20 	of Community Health Centers, FQHCs, and rural health clinics. The commissioner shall 
224.21 	publish the list and any updates in the Minnesota health care programs provider manual;
224.22 	(5) the initial applicable base year organization encounter rates for FQHCs and rural 
224.23 	health clinics shall be computed for services delivered on or after January 1, 2021, and:
224.24 	(i) must be determined using each FQHC's and rural health clinic's Medicare cost reports 
224.25 	from 2017 and 2018;
224.26 	(ii) must be according to current applicable Medicare cost principles as applicable to 
224.27 	FQHCs and rural health clinics without the application of productivity screens and upper 
224.28 	payment limits or the Medicare prospective payment system FQHC aggregate mean upper 
224.29 	payment limit;
225.1 	(iii) must be subsequently rebased every two years thereafter using the Medicare cost 
225.2 	reports that are three and four years prior to the rebasing year. Years in which organizational 
225.3 	cost or claims volume is reduced or altered due to a pandemic, disease, or other public health 
225.4 	emergency shall not be used as part of a base year when the base year includes more than 
225.5 	one year. The commissioner may use the Medicare cost reports of a year unaffected by a 
225.6 	pandemic, disease, or other public health emergency, or previous two consecutive years, 
225.7 	inflated to the base year as established under item (iv);
225.8 	(iv) must be inflated to the base year using the inflation factor described in clause (6); 
225.9 	and
225.10 	(v) the commissioner must provide for a 60-day appeals process under section 14.57;
225.11 	(6) the commissioner shall annually inflate the applicable organization encounter rates 
225.12 	for FQHCs and rural health clinics from the base year payment rate to the effective date by 
225.13 	using the CMS FQHC Market Basket inflator established under United States Code, title 
225.14 	42, section 1395m(o), less productivity;
225.15 	(7) FQHCs and rural health clinics that have elected the alternative payment methodology 
225.16 	under this paragraph shall submit all necessary documentation required by the commissioner 
225.17 	to compute the rebased organization encounter rates no later than six months following the 
225.18 	date the applicable Medicare cost reports are due to the Centers for Medicare and Medicaid 
225.19 	Services;
225.20 	(8) the commissioner shall reimburse FQHCs and rural health clinics an additional 
225.21 	amount relative to their medical and dental organization encounter rates that is attributable 
225.22 	to the tax required to be paid according to section 295.52, if applicable;
225.23 	(9) FQHCs and rural health clinics may submit change of scope requests to the 
225.24 	commissioner if the change of scope would result in an increase or decrease of 2.5 percent 
225.25 	or higher in the medical or dental organization encounter rate currently received by the 
225.26 	FQHC or rural health clinic;
225.27 	(10) for FQHCs and rural health clinics seeking a change in scope with the commissioner 
225.28 	under clause (9) that requires the approval of the scope change by the federal Health 
225.29 	Resources Services Administration:
225.30 	(i) FQHCs and rural health clinics shall submit the change of scope request, including 
225.31 	the start date of services, to the commissioner within seven business days of submission of 
225.32 	the scope change to the federal Health Resources Services Administration;
226.1 	(ii) the commissioner shall establish the effective date of the payment change as the 
226.2 	federal Health Resources Services Administration date of approval of the FQHC's or rural 
226.3 	health clinic's scope change request, or the effective start date of services, whichever is 
226.4 	later; and
226.5 	(iii) within 45 days of one year after the effective date established in item (ii), the 
226.6 	commissioner shall conduct a retroactive review to determine if the actual costs established 
226.7 	under clause (3) or encounters result in an increase or decrease of 2.5 percent or higher in 
226.8 	the medical or dental organization encounter rate, and if this is the case, the commissioner 
226.9 	shall revise the rate accordingly and shall adjust payments retrospectively to the effective 
226.10 	date established in item (ii);
226.11 	(11) for change of scope requests that do not require federal Health Resources Services 
226.12 	Administration approval, the FQHC and rural health clinic shall submit the request to the 
226.13 	commissioner before implementing the change, and the effective date of the change is the 
226.14 	date the commissioner received the FQHC's or rural health clinic's request, or the effective 
226.15 	start date of the service, whichever is later. The commissioner shall provide a response to 
226.16 	the FQHC's or rural health clinic's request within 45 days of submission and provide a final 
226.17 	approval within 120 days of submission. This timeline may be waived at the mutual 
226.18 	agreement of the commissioner and the FQHC or rural health clinic if more information is 
226.19 	needed to evaluate the request;
226.20 	(12) the commissioner, when establishing organization encounter rates for new FQHCs 
226.21 	and rural health clinics, shall consider the patient caseload of existing FQHCs and rural 
226.22 	health clinics in a 60-mile radius for organizations established outside of the seven-county 
226.23 	metropolitan area, and in a 30-mile radius for organizations in the seven-county metropolitan 
226.24 	area. If this information is not available, the commissioner may use Medicare cost reports 
226.25 	or audited financial statements to establish base rates;
226.26 	(13) the commissioner, when establishing organization encounter rates under this section 
226.27 	for FQHCs and rural health clinics resulting from a merger of existing clinics or the 
226.28 	acquisition of an existing clinic by another existing clinic, must use the combined costs and 
226.29 	caseloads from the clinics participating in the merger or acquisition to set the encounter rate 
226.30 	for the new clinic organization resulting from the merger or acquisition. The scope of services 
226.31 	for the newly formed clinic must be inclusive of the scope of services of the clinics 
226.32 	participating in the merger or acquisition;
227.1 	(13) (14) the commissioner shall establish a quality measures workgroup that includes 
227.2 	representatives from the Minnesota Association of Community Health Centers, FQHCs, 
227.3 	and rural health clinics, to evaluate clinical and nonclinical measures; and
227.4 	(14) (15) the commissioner shall not disallow or reduce costs that are related to an 
227.5 	FQHC's or rural health clinic's participation in health care educational programs to the extent 
227.6 	that the costs are not accounted for in the alternative payment methodology encounter rate 
227.7 	established in this paragraph.
227.8 	(m) Effective July 1, 2023, an enrolled Indian health service facility or a Tribal health 
227.9 	center operating under a 638 contract or compact may elect to also enroll as a Tribal FQHC. 
227.10 	Requirements that otherwise apply to an FQHC covered in this subdivision do not apply to 
227.11 	a Tribal FQHC enrolled under this paragraph, except that any requirements necessary to 
227.12 	comply with federal regulations do apply to a Tribal FQHC. The commissioner shall establish 
227.13 	an alternative payment method for a Tribal FQHC enrolled under this paragraph that uses 
227.14 	the same method and rates applicable to a Tribal facility or health center that does not enroll 
227.15 	as a Tribal FQHC.
227.16 	(n) FQHC reimbursement for mental health targeted case management services is limited 
227.17 	to:
227.18 	(1) only those services described under section 256B.0625, subdivision 20, and provided 
227.19 	in accordance with contracts executed with counties authorized to subcontract for mental 
227.20 	health targeted case management services; and
227.21 	(2) an FQHC's actual incurred costs as separately reported on the cost report submitted 
227.22 	to the Centers for Medicare and Medicaid Services and further identified in reports submitted 
227.23 	to the commissioner.
227.24 	(o) Counties contracting with FQHCs for mental health targeted case management remain 
227.25 	responsible for the nonfederal share of the cost of the provided mental health targeted case 
227.26 	management services. The commissioner must bill each county for the nonfederal share of 
227.27 	the mental health targeted case management costs as reported by the FQHC.

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

227.29 	Sec. 9. Minnesota Statutes 2024, section 256B.0625, subdivision 54, is amended to read:
227.30 		Subd. 54.Services provided in birth centers. (a) Medical assistance covers services 
227.31 	provided in a licensed birth center by a licensed health professional if the service would 
227.32 	otherwise be covered if provided in a hospital.
228.1 	(b) Facility services provided by a birth center shall be paid at the lower of billed charges 
228.2 	or 70 100 percent of the statewide average for a facility payment rate made to a hospital
228.3 	hospital facility fee cost trended to current for an uncomplicated vaginal birth as determined 
228.4 	using the most recent calendar year for which complete claims data is available. If a recipient 
228.5 	is transported from a birth center to a hospital prior to the delivery, the payment for facility 
228.6 	services to the birth center shall be the lower of billed charges or 15 100 percent of the 
228.7 	average hospital facility payment made to a hospital for the services provided fee cost 
228.8 	trended to current for an uncomplicated vaginal delivery as determined using the most recent 
228.9 	calendar year for which complete claims data is available.
228.10 	(c) Nursery care Facility services provided to a newborn by a birth center shall be paid 
228.11 	the lower of billed charges or 70 at 100 percent of the statewide average for a payment rate 
228.12 	paid to a hospital for nursery care as determined by using the most recent calendar year for 
228.13 	which complete claims data is available the hospital facility fee for a normal newborn as 
228.14 	determined using the most recent calendar year for which complete claims data is available, 
228.15 	cost trended to current.
228.16 	(d) Professional services provided by traditional midwives licensed under chapter 147D 
228.17 	shall be paid at the lower of billed charges or 100 percent of the rate paid to a physician 
228.18 	performing the same services. If a recipient is transported from a birth center to a hospital 
228.19 	prior to the delivery, a licensed traditional midwife who does not perform the delivery may 
228.20 	not bill for any delivery services. Services are not covered if provided by an unlicensed 
228.21 	traditional midwife.
228.22 	(e) Licensed health professionals working in licensed birth centers shall be reimbursed 
228.23 	for the full range of maternity care and newborn care services within their scope of practice, 
228.24 	regardless of place of service. The commissioner shall review current birth center 
228.25 	reimbursement and, in consultation with birth centers currently licensed in the state, develop 
228.26 	revisions to current payment practices in order to ensure reimbursement for the full range 
228.27 	of maternity care and newborn care services, including but not limited to:
228.28 	(1) professional services for intrapartum care when a recipient is transferred from a birth 
228.29 	center to a hospital prior to delivery;
228.30 	(2) professional services billed with a home place of service code by a licensed health 
228.31 	professional within their scope of practice;
228.32 	(3) professional services when a licensed health professional provides any 
228.33 	Minnesota-mandated newborn screening, including but not limited to the newborn metabolic 
229.1 	screen, CCHD screening, hearing screen, or any other medically necessary newborn 
229.2 	screening, test, or assessment; and
229.3 	(4) telehealth services provided by any licensed health professional working in a birth 
229.4 	center.
229.5 	(f) Managed care organizations and county-based purchasing plans contracted to provide 
229.6 	medical assistance coverage under section 256B.69 shall reimburse licensed birth centers 
229.7 	and licensed health professionals working in licensed birth centers for the full range of 
229.8 	maternity care services within their scope of practice, regardless of place of service, as 
229.9 	determined in paragraph (e) at no less than the medical assistance fee for service fee schedule 
229.10 	for the year in which the service is provided.
229.11 	(e) (g) The commissioner shall apply for any necessary waivers from the Centers for 
229.12 	Medicare and Medicaid Services to allow birth centers and birth center providers to be 
229.13 	reimbursed.

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

229.17 	Sec. 10. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
229.18 	to read:
229.19 		Subd. 54a.Home birth. (a) For purposes of this subdivision, the following terms have 
229.20 	the meanings given:
229.21 	(1) "birth services" means prenatal, labor, birth, and postpartum services;
229.22 	(2) "eligible provider" means a licensed or certified health care professional eligible for 
229.23 	reimbursement under the medical assistance program; and
229.24 	(3) "low-risk patient for birth services" means a person undergoing a normal, 
229.25 	uncomplicated prenatal course as determined by documentation of adequate prenatal care 
229.26 	who anticipates a normal, uncomplicated labor and birth, as defined by reasonable and 
229.27 	generally accepted criteria adopted by professional groups for maternal, fetal, and neonatal 
229.28 	health care.
229.29 	(b) Medical assistance covers birth services provided at home when the following 
229.30 	conditions are met:
229.31 	(1) the birth services are provided by an eligible provider whose scope of practice and 
229.32 	experience includes home birth;
230.1 	(2) the recipient is a low-risk patient for birth services; and
230.2 	(3) the recipient has a plan of care that includes:
230.3 	(i) a consent form detailing the risks and benefits of home birth signed by the recipient;
230.4 	(ii) sufficient visits, test results, and follow-up consultations as needed to establish that 
230.5 	the recipient is a low-risk patient for birth services; and
230.6 	(iii) a plan for transfer to a hospital as needed.
230.7 	(c) Services provided under this subdivision by an eligible provider must be paid at a 
230.8 	rate at least equal to 100 percent of the rate paid to a physician performing the same services. 
230.9 	An eligible provider who does not perform the delivery must not bill for any delivery 
230.10 	services.
230.11 	(d) Supplies used for birth services under this subdivision must be paid at 70 percent of 
230.12 	the statewide average for a facility payment rate made to a hospital for an uncomplicated 
230.13 	vaginal delivery as determined using the most recent calendar year for which complete 
230.14 	claims data are available. If a recipient is transported from a home to a hospital prior to the 
230.15 	delivery, the payment for the supplies used for birth services under this subdivision must 
230.16 	be the lower of billed charges or 15 percent of the statewide average for a facility payment 
230.17 	rate made to a hospital for the services provided for an uncomplicated vaginal delivery as 
230.18 	determined using the most recent calendar year for which complete claims data are available.

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

230.22 	Sec. 11. Minnesota Statutes 2024, section 256B.0757, subdivision 5, is amended to read:
230.23 		Subd. 5.Payments. (a) The commissioner shall make payments to each designated 
230.24 	provider for the provision of health home services described in subdivision 3 to each eligible 
230.25 	individual under subdivision 2 that selects the health home as a provider. This paragraph 
230.26 	expires on the date that paragraph (b) becomes effective.
230.27 	(b) Effective January 1, 2028, or upon federal approval, whichever is later, the 
230.28 	commissioner shall make payments to each designated provider for the provision of health 
230.29 	home services described in subdivision 3, except for behavioral health services, to each 
230.30 	eligible individual under subdivision 2 who selects the health home as a provider.

231.1 	Sec. 12. Minnesota Statutes 2024, section 256B.0757, is amended by adding a subdivision 
231.2 	to read:
231.3 		Subd. 5a.Payments for behavioral health home services. (a) Notwithstanding 
231.4 	subdivision 5, the commissioner must implement a single statewide reimbursement rate for 
231.5 	behavioral health home services under this section. The rate must be no less than $425 per 
231.6 	member per month. The commissioner must adjust the reimbursement rate for behavioral 
231.7 	health home services annually according to the change from the midpoint of the previous 
231.8 	rate year to the midpoint of the rate year for which the rate is being determined using the 
231.9 	Centers for Medicare and Medicaid Services Medicare Economic Index as forecasted in 
231.10 	the fourth quarter of the calendar year before the rate year.
231.11 	(b) The commissioner must review and update the behavioral health home services rate 
231.12 	under paragraph (a) at least every four years. The updated rate must account for the average 
231.13 	hours required for behavioral health home team members spent providing services and the 
231.14 	Department of Labor prevailing wage for required behavioral health home team members. 
231.15 	The updated rate must ensure that behavioral health home services rates are sufficient to 
231.16 	allow providers to meet required certifications, training, and practice transformation 
231.17 	standards; staff qualification requirements; and service delivery standards.
231.18 	(c) Managed care plans and county-based purchasing plans must reimburse providers 
231.19 	at an amount that is at least equal to the fee-for-service rate for services under this 
231.20 	subdivision. The commissioner must monitor the effect of this rate increase on enrollee 
231.21 	access to services under this subdivision. If for any contract year federal approval is not 
231.22 	received for this paragraph, the commissioner must adjust the capitation rates paid to managed 
231.23 	care plans and county-based purchasing plans for that contract year to reflect the removal 
231.24 	of this paragraph. Contracts between managed care plans and county-based purchasing 
231.25 	plans and providers to whom this paragraph applies must allow recovery of payments from 
231.26 	those providers if capitation rates are adjusted in accordance with this paragraph. Payment 
231.27 	recoveries must not exceed the amount equal to any increase in rates that results from this 
231.28 	paragraph.
231.29 	(d) This subdivision is effective January 1, 2028, or upon federal approval, whichever 
231.30 	is later.

231.31 	Sec. 13. Minnesota Statutes 2024, section 256B.1973, is amended by adding a subdivision 
231.32 	to read:
231.33 		Subd. 9.Interaction with other directed payments. An eligible provider under 
231.34 	subdivision 3 may participate in the hospital directed payment program under section 
232.1 	256B.1974 for inpatient hospital services, outpatient hospital services, or both. A provider 
232.2 	participating in the hospital directed payment program must not receive a directed payment 
232.3 	under this section for any provider classes paid via the hospital directed payment program. 
232.4 	A hospital subject to this section must notify the commissioner in writing no later than 30 
232.5 	days after enactment of this subdivision of its intention to participate in the hospital directed 
232.6 	payment program under section 256B.1974 for inpatient hospital services, outpatient hospital 
232.7 	services, or both. The election under this subdivision is a onetime election, except that if 
232.8 	an eligible provider elects to participate in the hospital directed payment program, and the 
232.9 	hospital directed payment program expires, then the eligible provider may thereafter elect 
232.10 	to participate in the directed payment program under this section.

232.11 	EFFECTIVE DATE. (a) This section is effective on the later of January 1, 2026, or 
232.12 	federal approval of all of the following:
232.13 	(1) this section;
232.14 	(2) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
232.15 	2b; and
232.16 	(3) the amendments in this act to Minnesota Statutes, section 256B.1974.
232.17 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
232.18 	approval for all amendments set forth in paragraph (a) is obtained.

232.19 	Sec. 14. [256B.1974] HOSPITAL DIRECTED PAYMENT PROGRAM.
232.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
232.21 	the meanings given.
232.22 	(b) "Health plan" means a managed care plan or county-based purchasing plan that is 
232.23 	under contract with the commissioner to deliver services to medical assistance enrollees 
232.24 	under section 256B.69.
232.25 	(c) "Hospital" means a hospital licensed under section 144.50.
232.26 		Subd. 2.Required conditions for program. The hospital directed payment program is 
232.27 	contingent on the satisfaction of all requirements necessary for the collection of an assessment 
232.28 	under section 256.9657, and must conform with the requirements for permissible directed 
232.29 	managed care organization expenditures under section 256B.6928, subdivision 5.
232.30 		Subd. 3.Commissioner's duties; state-directed fee schedule requirement. (a) For 
232.31 	each federally approved directed payment program that is a state-directed fee schedule 
232.32 	requirement that includes a quarterly payment amount to be submitted by each health plan 
233.1 	to each hospital, the commissioner must determine the quarterly payment amount using the 
233.2 	average commercial payer rate, or using another method acceptable to the Centers for 
233.3 	Medicare and Medicaid Services if the average commercial payer rate is not approved. The 
233.4 	commissioner must ensure that the application of the quarterly payment amounts maximizes 
233.5 	the amount generated by the hospital assessment in section 256.9657, subdivision 2b, for 
233.6 	allowable directed payments and does not result in payments exceeding federal limits.
233.7 	(b) The commissioner must use an annual settle-up process that occurs within the time 
233.8 	period allowed for medical assistance managed care claims adjustments.
233.9 	(c) On and after January 1, 2028, if the federal regulations set forth in Code of Federal 
233.10 	Regulations, title 42, parts 430, 438, and 457, remain effective, the hospital directed payment 
233.11 	program must be specific to each health plan and prospectively incorporated into capitation 
233.12 	payments for that plan.
233.13 	(d) For each federally approved directed payment program that is a state-directed fee 
233.14 	schedule requirement, the commissioner must develop a plan for the initial implementation 
233.15 	of the state-directed fee schedule requirement to ensure that hospitals receive the entire 
233.16 	permissible value of the federally approved directed payment. If federal approval of a 
233.17 	directed payment under this subdivision is retroactive, the commissioner must make a 
233.18 	onetime pro rata increase to the quarterly payment amount and the initial payments to include 
233.19 	claims submitted between the retroactive federal approval date and the period captured by 
233.20 	the initial payments.
233.21 	(e) Directed payments under this section must only be used to supplement, and not 
233.22 	supplant, medical assistance reimbursement to hospitals. The directed payment program 
233.23 	must not modify, reduce, or offset the medical assistance payment rates determined for each 
233.24 	hospital as required by section 256.969.
233.25 	(f) The commissioner must require health plans to make quarterly directed payments 
233.26 	according to this section.
233.27 	(g) Health plans must make quarterly directed payments using electronic funds transfers, 
233.28 	if the hospital provides the information necessary to process such transfers, and in accordance 
233.29 	with directions provided by the commissioner. Health plans must make quarterly directed 
233.30 	payments:
233.31 	(1) for the first two quarters for which such payments are due, within 30 calendar days 
233.32 	of the date the commissioner issued sufficient payments to the health plan to make the 
233.33 	directed payments according to this section; and
234.1 	(2) for all subsequent quarters, within ten calendar days of the date the commissioner 
234.2 	issued sufficient payments to the health plan to make the directed payments according to 
234.3 	this section.
234.4 	(h) The commissioner must publish on the Department of Human Services' website, on 
234.5 	a quarterly basis, the dates that the health plans completed their required quarterly payments 
234.6 	under this section.
234.7 	(i) Payments to health plans that would be paid consistent with actuarial certification 
234.8 	and enrollment in the absence of the increased capitation payments under this section must 
234.9 	not be reduced as a result of this section.
234.10 	(j) The commissioner must publish all directed payments owed to each hospital from 
234.11 	each health plan on the department's website for at least two years. All calculations and 
234.12 	reports must be posted no later than the first day of the quarter for which the payments are 
234.13 	to be issued.
234.14 	(k) By December 1 each year, the commissioner must notify each hospital of any changes 
234.15 	to the payment methodologies in this section, including but not limited to changes in the 
234.16 	directed payment rates, the aggregate directed payment amount for all hospitals, and the 
234.17 	hospital's directed payment amount for the upcoming calendar year.
234.18 	(l) The commissioner must distribute payments required under this section for each 
234.19 	hospital within 30 days of a quarterly assessment under section 256.9657, subdivision 2b, 
234.20 	being received. The commissioner must pay the directed payments to health plans under 
234.21 	contract no later than January 1, April 1, July 1, and October 1 each year.
234.22 	(m) A hospital is not entitled to payments under this section until the start of the first 
234.23 	full fiscal year it is an eligible hospital. A hospital that has merged with another hospital 
234.24 	must have its payments under this section revised at the start of the first full fiscal year after 
234.25 	the merger is complete. A closed hospital is entitled to the payments under this section for 
234.26 	services provided through the final date of operations.
234.27 		Subd. 4.Health plan duties; submission of claims. Each health plan must submit to 
234.28 	the commissioner, in accordance with its contract with the commissioner to serve as a 
234.29 	managed care organization in medical assistance, payment information for each claim paid 
234.30 	to a hospital for services provided to a medical assistance enrollee. Health plans must allow 
234.31 	each hospital to review the health plan's own paid claims detail to enable proper validation 
234.32 	that the medical assistance managed care claims volume and content is consistent with the 
234.33 	hospital's internal records. To support the validation process for the directed payment 
234.34 	program, health plans must permit the commissioner to share inpatient and outpatient 
235.1 	claims-level details with hospitals identifying only those claims where the prepaid medical 
235.2 	assistance program under section 256B.69 is the payer source. Hospitals must provide notice 
235.3 	of discrepancies in claims paid to the commissioner in a form determined by the 
235.4 	commissioner. The commissioner is authorized to determine the final disposition of the 
235.5 	validation process for disputed claims.
235.6 		Subd. 5.Health plan duties; directed payment add-on. (a) Each health plan must 
235.7 	make, in accordance with its contract with the commissioner to serve as a managed care 
235.8 	organization in medical assistance, a directed payment to each hospital. The amount of the 
235.9 	directed payment to the hospital must be equal to the payment amounts the plan received 
235.10 	from the commissioner for the hospital.
235.11 	(b) Health plans are prohibited from:
235.12 	(1) setting, establishing, or negotiating reimbursement rates with a hospital in a manner 
235.13 	that directly or indirectly takes into account a directed payment that a hospital receives 
235.14 	under this section;
235.15 	(2) unnecessarily delaying a directed payment to a hospital; or
235.16 	(3) recouping or offsetting a directed payment for any reason, except as expressly 
235.17 	authorized by the commissioner.
235.18 		Subd. 6.Hospital duties; quarterly supplemental directed payment add-on. (a) A 
235.19 	hospital receiving a directed payment under this section is prohibited from:
235.20 	(1) setting, establishing, or negotiating reimbursement rates with a managed care 
235.21 	organization in a manner that directly or indirectly takes into account a directed payment 
235.22 	that a hospital receives under this section; or
235.23 	(2) directly passing on the cost of an assessment to patients or nonmedical assistance 
235.24 	payers, including as a fee or rate increase.
235.25 	(b) A hospital that violates this subdivision is prohibited from receiving a directed 
235.26 	payment under this section for the remainder of the rate year. This subdivision does not 
235.27 	prohibit a hospital from negotiating with a payer for a rate increase.
235.28 	(c) Any hospital receiving a directed payment under this section must meet the 
235.29 	commissioner's standards for directed payments as described in subdivision 7.
235.30 		Subd. 7.State minimum policy goals established. (a) The effect of the directed 
235.31 	payments under this section must align with the state's policy goals for medical assistance 
235.32 	enrollees. The directed payments must be used to maintain quality and access to a full range 
236.1 	of health care delivery mechanisms for medical assistance enrollees, and specifically provide 
236.2 	improvement for one of the following quality measures:
236.3 	(1) overall well child visit rates;
236.4 	(2) maternal depression screening rates; or
236.5 	(3) colon cancer screening rates.
236.6 	(b) The commissioner, in consultation with the Minnesota Hospital Association, must 
236.7 	submit to the Centers for Medicare and Medicaid Services quality measures performance 
236.8 	evaluation criteria and a methodology to regularly measure access to care and the 
236.9 	achievement of state policy goals described in this subdivision.
236.10 	(c) The quality measures evaluation data, as determined by paragraph (b), must be 
236.11 	reported to the Centers for Medicare and Medicaid Services after at least 12 months of 
236.12 	directed payments to hospitals.
236.13 		Subd. 8.Administrative review. Before making the payments required under this 
236.14 	section, and on at least an annual basis, the commissioner must consult with and provide 
236.15 	for review of the payment amounts by a permanent select committee established by the 
236.16 	Minnesota Hospital Association. Any data or information reviewed by members of the 
236.17 	committee are data not on individuals, as defined in section 13.02. The committee's members 
236.18 	must not include any current employee or paid consultant of any hospital.

236.19 	EFFECTIVE DATE. (a) This section is effective the later of January 1, 2026, or federal 
236.20 	approval for all of the following:
236.21 	(1) the amendments in this act to add Minnesota Statutes, section 256.9657, subdivision 
236.22 	2b; and
236.23 	(2) the amendments in this act to this section.
236.24 	(b) The commissioner of human services shall notify the revisor of statutes when federal 
236.25 	approval for all amendments set forth in paragraph (a) is obtained.

236.26 	Sec. 15. [256B.1975] HOSPITAL DIRECTED PAYMENT PROGRAM ACCOUNT.
236.27 		Subdivision 1.Account established; appropriation. (a) The hospital directed payment 
236.28 	program account is created in the special revenue fund in the state treasury.
236.29 	(b) Money in the account, including interest earned, is annually appropriated to the 
236.30 	commissioner for the purposes specified in section 256B.1974.
237.1 	(c) Transfers from this account to another fund are prohibited, except as necessary to 
237.2 	make the payments required under section 256B.1974.
237.3 		Subd. 2.Reports to the legislature. By January 15, 2027, and each January 15 thereafter, 
237.4 	the commissioner must submit a report to the chairs and ranking minority members of the 
237.5 	legislative committees with jurisdiction over health and human services policy and finance 
237.6 	that details the activities and uses of money in the hospital directed payment program 
237.7 	account, including the metrics and outcomes of the policy goals established by section 
237.8 	256B.1974, subdivision 7.

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

237.13 	Sec. 16. Minnesota Statutes 2024, section 256B.76, subdivision 1, is amended to read:
237.14 		Subdivision 1.Physician and professional services Reimbursement adjustments.  (a) 
237.15 	Effective for services rendered on or after October 1, 1992, the commissioner shall make 
237.16 	payments for physician services as follows:
237.17 	(1) payment for level one Centers for Medicare and Medicaid Services' common 
237.18 	procedural coding system codes titled "office and other outpatient services," "preventive 
237.19 	medicine new and established patient," "delivery, antepartum, and postpartum care," "critical 
237.20 	care," cesarean delivery and pharmacologic management provided to psychiatric patients, 
237.21 	and level three codes for enhanced services for prenatal high risk, shall be paid at the lower 
237.22 	of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;
237.23 	(2) payments for all other services shall be paid at the lower of (i) submitted charges, 
237.24 	or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
237.25 	(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
237.26 	percentile of 1989, less the percent in aggregate necessary to equal the above increases 
237.27 	except that payment rates for home health agency services shall be the rates in effect on 
237.28 	September 30, 1992.
237.29 	(b) Effective for services rendered on or after January 1, 2000, payment rates for physician 
237.30 	and professional services shall be increased by three percent over the rates in effect on 
237.31 	December 31, 1999, except for home health agency and family planning agency services. 
237.32 	The increases in this paragraph shall be implemented January 1, 2000, for managed care.
238.1 	(c) Effective for services rendered on or after July 1, 2009, payment rates for physician 
238.2 	and professional services shall be reduced by five percent, except that for the period July 
238.3 	1, 2009, through June 30, 2010, payment rates shall be reduced by 6.5 percent for the medical 
238.4 	assistance and general assistance medical care programs, over the rates in effect on June 
238.5 	30, 2009. This reduction and the reductions in paragraph (d) do not apply to office or other 
238.6 	outpatient visits, preventive medicine visits and family planning visits billed by physicians, 
238.7 	advanced practice registered nurses, or physician assistants in a family planning agency or 
238.8 	in one of the following primary care practices: general practice, general internal medicine, 
238.9 	general pediatrics, general geriatrics, and family medicine. This reduction and the reductions 
238.10 	in paragraph (d) do not apply to federally qualified health centers, rural health centers, and 
238.11 	Indian health services. Effective October 1, 2009, payments made to managed care plans 
238.12 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
238.13 	reflect the payment reduction described in this paragraph.
238.14 	(d) Effective for services rendered on or after July 1, 2010, payment rates for physician 
238.15 	and professional services shall be reduced an additional seven percent over the five percent 
238.16 	reduction in rates described in paragraph (c). This additional reduction does not apply to 
238.17 	physical therapy services, occupational therapy services, and speech pathology and related 
238.18 	services provided on or after July 1, 2010. This additional reduction does not apply to 
238.19 	physician services billed by a psychiatrist or an advanced practice registered nurse with a 
238.20 	specialty in mental health. Effective October 1, 2010, payments made to managed care plans 
238.21 	and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall 
238.22 	reflect the payment reduction described in this paragraph.
238.23 	(e) Effective for services rendered on or after September 1, 2011, through June 30, 2013, 
238.24 	payment rates for physician and professional services shall be reduced three percent from 
238.25 	the rates in effect on August 31, 2011. This reduction does not apply to physical therapy 
238.26 	services, occupational therapy services, and speech pathology and related services.
238.27 	(f) Effective for services rendered on or after September 1, 2014, payment rates for 
238.28 	physician and professional services, including physical therapy, occupational therapy, speech 
238.29 	pathology, and mental health services shall be increased by five percent from the rates in 
238.30 	effect on August 31, 2014. In calculating this rate increase, the commissioner shall not 
238.31 	include in the base rate for August 31, 2014, the rate increase provided under section 
238.32 	256B.76, subdivision 7. This increase does not apply to federally qualified health centers, 
238.33 	rural health centers, and Indian health services. Payments made to managed care plans and 
238.34 	county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
239.1 	(g) (a) Effective for services rendered on or after July 1, 2015, payment rates for physical 
239.2 	therapy, occupational therapy, and speech pathology and related services provided by a 
239.3 	hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause 
239.4 	(4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments 
239.5 	made to managed care plans and county-based purchasing plans shall not be adjusted to 
239.6 	reflect payments under this paragraph.
239.7 	(h) (b) Any ratables effective before July 1, 2015, do not apply to early intensive 
239.8 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
239.9 	(i) (c) The commissioner may reimburse physicians and other licensed professionals for 
239.10 	costs incurred to pay the fee for testing newborns who are medical assistance enrollees for 
239.11 	heritable and congenital disorders under section 144.125, subdivision 1, paragraph (c), when 
239.12 	the sample is collected outside of an inpatient hospital or freestanding birth center and the 
239.13 	cost is not recognized by another payment source.

239.14 	EFFECTIVE DATE. This section is effective January 1, 2026, or upon federal approval 
239.15 	of the amendments in this act to Minnesota Statutes, sections 256B.76, subdivision 6, and 
239.16 	256B.768, whichever is later. The commissioner of human services shall notify the revisor 
239.17 	of statutes when federal approval is obtained.

239.18 	Sec. 17. Minnesota Statutes 2024, section 256B.76, subdivision 6, is amended to read:
239.19 		Subd. 6.Medicare relative value units.  (a) Effective for services rendered on or after 
239.20 	January 1, 2007, the commissioner shall make payments for physician and professional 
239.21 	services based on the Medicare relative value units (RVUs). This change shall be budget 
239.22 	neutral and the cost of implementing RVUs will be incorporated in the established conversion 
239.23 	factor. This paragraph expires on the date that paragraph (b) becomes effective.
239.24 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
239.25 	for services rendered on or after January 1, 2007, the commissioner must make payments 
239.26 	for physician and professional services based on the Medicare relative value units (RVUs).
239.27 	(b) (c) Effective for services rendered on or after January 1, 2025, rates for mental health 
239.28 	services reimbursed under the resource-based relative value scale (RBRVS) must be equal 
239.29 	to 83 percent of the Medicare Physician Fee Schedule. This paragraph expires on the date 
239.30 	that section 256B.768 becomes effective.
239.31 	(c) (d) Effective for services rendered on or after January 1, 2025, the commissioner 
239.32 	shall increase capitation payments made to managed care plans and county-based purchasing 
239.33 	plans to reflect the rate increases provided under this subdivision. Managed care plans and 
240.1 	county-based purchasing plans must use the capitation rate increase provided under this 
240.2 	paragraph to increase payment rates to the providers corresponding to the rate increases. 
240.3 	The commissioner must monitor the effect of this rate increase on enrollee access to services 
240.4 	under this subdivision. If for any contract year federal approval is not received for this 
240.5 	paragraph, the commissioner must adjust the capitation rates paid to managed care plans 
240.6 	and county-based purchasing plans for that contract year to reflect the removal of this 
240.7 	paragraph. Contracts between managed care plans and county-based purchasing plans and 
240.8 	providers to whom this paragraph applies must allow recovery of payments from those 
240.9 	providers if capitation rates are adjusted in accordance with this paragraph. Payment 
240.10 	recoveries must not exceed the amount equal to any increase in rates that results from this 
240.11 	paragraph. This paragraph expires on the date that section 256B.768 becomes effective.

240.12 	Sec. 18. Minnesota Statutes 2024, section 256B.761, is amended to read:
240.13 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
240.14 		Subdivision 1.Rates effective 2026. (a) Effective for services rendered on or after July 
240.15 	1, 2001, payment for medication management provided to psychiatric patients, outpatient 
240.16 	mental health services, day treatment services, home-based mental health services, and 
240.17 	family community support services shall be paid at the lower of (1) submitted charges, or 
240.18 	(2) 75.6 percent of the 50th percentile of 1999 charges.
240.19 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
240.20 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
240.21 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 1993, 
240.22 	with at least 33 percent of the clients receiving rehabilitation services in the most recent 
240.23 	calendar year who are medical assistance recipients, will be increased by 38 percent, when 
240.24 	those services are provided within the comprehensive outpatient rehabilitation facility and 
240.25 	provided to residents of nursing facilities owned by the entity.
240.26 	(c) In addition to rate increases otherwise provided, the commissioner may restructure 
240.27 	coverage policy and rates to improve access to adult rehabilitative mental health services 
240.28 	under section 256B.0623 and related mental health support services under section 256B.021, 
240.29 	subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 2016, the projected 
240.30 	state share of increased costs due to this paragraph is transferred from adult mental health 
240.31 	grants under sections 245.4661 and 256K.10. The transfer for fiscal year 2016 is a permanent 
240.32 	base adjustment for subsequent fiscal years. Payments made to managed care plans and 
240.33 	county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect 
240.34 	the rate changes described in this paragraph.
241.1 	(d) Any ratables effective before July 1, 2015, do not apply to early intensive 
241.2 	developmental and behavioral intervention (EIDBI) benefits described in section 256B.0949.
241.3 	(e) Effective for services rendered on or after January 1, 2024, payment rates for 
241.4 	behavioral health services included in the rate analysis required by Laws 2021, First Special 
241.5 	Session chapter 7, article 17, section 18, except for adult day treatment services under section 
241.6 	256B.0671, subdivision 3; early intensive developmental and behavioral intervention services 
241.7 	under section 256B.0949; and substance use disorder services under chapter 254B, must be 
241.8 	increased by three percent from the rates in effect on December 31, 2023. Effective for 
241.9 	services rendered on or after January 1, 2025, payment rates for behavioral health services 
241.10 	included in the rate analysis required by Laws 2021, First Special Session chapter 7, article 
241.11 	17, section 18; early intensive developmental behavioral intervention services under section 
241.12 	256B.0949; and substance use disorder services under chapter 254B, must be annually 
241.13 	adjusted according to the change from the midpoint of the previous rate year to the midpoint 
241.14 	of the rate year for which the rate is being determined using the Centers for Medicare and 
241.15 	Medicaid Services Medicare Economic Index as forecasted in the fourth quarter of the 
241.16 	calendar year before the rate year. For payments made in accordance with this paragraph, 
241.17 	if and to the extent that the commissioner identifies that the state has received federal 
241.18 	financial participation for behavioral health services in excess of the amount allowed under 
241.19 	United States Code, title 42, section 447.321, the state shall repay the excess amount to the 
241.20 	Centers for Medicare and Medicaid Services with state money and maintain the full payment 
241.21 	rate under this paragraph. This paragraph does not apply to federally qualified health centers, 
241.22 	rural health centers, Indian health services, certified community behavioral health clinics, 
241.23 	cost-based rates, and rates that are negotiated with the county. This paragraph expires upon 
241.24 	legislative implementation of the new rate methodology resulting from the rate analysis 
241.25 	required by Laws 2021, First Special Session chapter 7, article 17, section 18.
241.26 	(f) Effective January 1, 2024, the commissioner shall increase capitation payments made 
241.27 	to managed care plans and county-based purchasing plans to reflect the behavioral health 
241.28 	service rate increase provided in paragraph (e). Managed care and county-based purchasing 
241.29 	plans must use the capitation rate increase provided under this paragraph to increase payment 
241.30 	rates to behavioral health services providers. The commissioner must monitor the effect of 
241.31 	this rate increase on enrollee access to behavioral health services. If for any contract year 
241.32 	federal approval is not received for this paragraph, the commissioner must adjust the 
241.33 	capitation rates paid to managed care plans and county-based purchasing plans for that 
241.34 	contract year to reflect the removal of this provision. Contracts between managed care plans 
241.35 	and county-based purchasing plans and providers to whom this paragraph applies must 
242.1 	allow recovery of payments from those providers if capitation rates are adjusted in accordance 
242.2 	with this paragraph. Payment recoveries must not exceed the amount equal to any increase 
242.3 	in rates that results from this provision.
242.4 	(a) Effective for services rendered on or after January 1, 2026, the commissioner must 
242.5 	establish market-based payment rates for the following services:
242.6 	(1) children's therapeutic services and supports under section 256B.0943;
242.7 	(2) child and family psychoeducation services under section 256B.0671, subdivision 5;
242.8 	(3) clinical care consultation services under section 256B.0671, subdivision 7; and
242.9 	(4) mental health certified family peer specialist services under section 256B.0616.
242.10 	(b) Rates established under paragraph (a) must not be lower than:
242.11 	(1) the payment rates recommended in the rate analysis required by Laws 2021, First 
242.12 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
242.13 	Services on January 22, 2024; or
242.14 	(2) the payment rates in effect on December 31, 2025.
242.15 		Subd. 2.Rates effective 2027.  (a) Effective for services rendered on or after January 1, 
242.16 	2027, the commissioner must establish market-based payment rates for the following services:
242.17 	(1) adult day treatment services under section 256B.0671, subdivision 3;
242.18 	(2) adult rehabilitative mental health services under section 256B.0623;
242.19 	(3) adult mental health peer support specialist services under section 256B.0615;
242.20 	(4) dialectical behavioral therapy under section 256B.0671, subdivision 6;
242.21 	(5) explanation of findings under section 256B.0671, subdivision 4;
242.22 	(6) mental health crisis response services under section 256B.0624;
242.23 	(7) mental health provider travel time under section 256B.0625, subdivision 43;
242.24 	(8) neuropsychological testing under section 256B.0671, subdivision 9;
242.25 	(9) partial hospitalization services under section 256B.0671, subdivision 12; and
242.26 	(10) psychotherapy services under section 256B.0671, subdivision 11, incorporating 
242.27 	biofeedback.
242.28 	(b) Rates established under paragraph (a) must not be lower than:
243.1 	(1) the payments rates recommended in the rate analysis required by Laws 2021, First 
243.2 	Special Session chapter 7, article 17, section 18, and published by the Department of Human 
243.3 	Services on January 22, 2024; or
243.4 	(2) the payment rates in effect on December 31, 2026.
243.5 		Subd. 3.Capitation payments. The commissioner must adjust capitation payments 
243.6 	made to managed care plans and county-based purchasing plans to reflect the behavioral 
243.7 	health service rates provided in this section. Managed care and county-based purchasing 
243.8 	plans must reimburse providers at an amount that is at least equal to the fee-for-service rate 
243.9 	for services under this section. The commissioner must monitor the effect of this rate 
243.10 	adjustment on enrollee access to behavioral health services. If for any contract year federal 
243.11 	approval is not received for this subdivision, the commissioner must adjust the capitation 
243.12 	rates paid to managed care plans and county-based purchasing plans for that contract year 
243.13 	to reflect the removal of this provision. Contracts between managed care plans and 
243.14 	county-based purchasing plans and providers to whom this subdivision applies must allow 
243.15 	recovery of payments from those providers if capitation rates are adjusted in accordance 
243.16 	with this subdivision. Payment recoveries must not exceed the amount equal to any increase 
243.17 	in rates that results from this subdivision.
243.18 		Subd. 4.Inflation adjustment. The commissioner must adjust the reimbursement rate 
243.19 	for services under this section annually according to the change from the midpoint of the 
243.20 	previous rate year to the midpoint of the rate year for which the rate is being determined 
243.21 	using the Centers for Medicare and Medicaid Services Medicare Economic Index as 
243.22 	forecasted in the fourth quarter of the calendar year before the rate year.
243.23 		Subd. 5.Exceptions. (a) This section does not apply to federally qualified health centers, 
243.24 	rural health centers, Indian health services, or certified community behavioral health clinics 
243.25 	or to cost-based rates or rates that are negotiated with the county.
243.26 	(b) This section does not apply to services with reimbursement rates established pursuant 
243.27 	to section 256B.768.

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

244.1 	Sec. 19. Minnesota Statutes 2024, section 256B.766, is amended to read:
244.2 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
244.3 		Subdivision 1.Payment reductions for base care services effective July 1, 2009. (a)
244.4 	Effective for services provided on or after July 1, 2009, total payments for basic care services, 
244.5 	shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 
244.6 	2011, total payments shall be reduced by 4.5 percent for the medical assistance and general 
244.7 	assistance medical care programs, prior to third-party liability and spenddown calculation.
244.8 		Subd. 2.Classification of therapies as basic care services. Effective July 1, 2010, The 
244.9 	commissioner shall classify physical therapy services, occupational therapy services, and 
244.10 	speech-language pathology and related services as basic care services. The reduction in this 
244.11 	paragraph subdivision 1 shall apply to physical therapy services, occupational therapy 
244.12 	services, and speech-language pathology and related services provided on or after July 1, 
244.13 	2010.
244.14 		Subd. 3.Payment reductions to managed care plans effective October 1, 2009. (b)
244.15 	Payments made to managed care plans and county-based purchasing plans shall be reduced 
244.16 	for services provided on or after October 1, 2009, to reflect the reduction in subdivision 1 
244.17 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
244.18 	1, 2010, to reflect the reduction in subdivision 1 effective July 1, 2010.
244.19 		Subd. 4.Temporary payment reductions effective September 1, 2011. (c) (a) Effective 
244.20 	for services provided on or after September 1, 2011, through June 30, 2013, total payments 
244.21 	for outpatient hospital facility fees shall be reduced by five percent from the rates in effect 
244.22 	on August 31, 2011.
244.23 	(d) (b) Effective for services provided on or after September 1, 2011, through June 30, 
244.24 	2013, total payments for ambulatory surgery centers facility fees, medical supplies and 
244.25 	durable medical equipment not subject to a volume purchase contract, prosthetics and 
244.26 	orthotics, renal dialysis services, laboratory services, public health nursing services, physical 
244.27 	therapy services, occupational therapy services, speech therapy services, eyeglasses not 
244.28 	subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, 
244.29 	and anesthesia services shall be reduced by three percent from the rates in effect on August 
244.30 	31, 2011.
244.31 		Subd. 5.Payment increases effective September 1, 2014. (e) (a) Effective for services 
244.32 	provided on or after September 1, 2014, payments for ambulatory surgery centers facility 
244.33 	fees, hospice services, renal dialysis services, laboratory services, public health nursing 
244.34 	services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject 
245.1 	to a volume purchase contract shall be increased by three percent and payments for outpatient 
245.2 	hospital facility fees shall be increased by three percent.
245.3 	(b) Payments made to managed care plans and county-based purchasing plans shall not 
245.4 	be adjusted to reflect payments under this paragraph subdivision.
245.5 		Subd. 6.Temporary payment reductions effective July 1, 2014. (f) Payments for 
245.6 	medical supplies and durable medical equipment not subject to a volume purchase contract, 
245.7 	and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall 
245.8 	be decreased by .33 percent.
245.9 		Subd. 7.Payment increases effective July 1, 2015. (a) Payments for medical supplies 
245.10 	and durable medical equipment not subject to a volume purchase contract, and prosthetics 
245.11 	and orthotics, provided on or after July 1, 2015, shall be increased by three percent from 
245.12 	the rates as determined under paragraphs (i) and (j) subdivisions 9 and 10.
245.13 	(g) (b) Effective for services provided on or after July 1, 2015, payments for outpatient 
245.14 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
245.15 	volume purchase contract, prosthetics, and orthotics to a hospital meeting the criteria specified 
245.16 	in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent 
245.17 	from the rates in effect on June 30, 2015.
245.18 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
245.19 	be adjusted to reflect payments under this paragraph (b).
245.20 		Subd. 8.Exempt services. (h) This section does not apply to physician and professional 
245.21 	services, inpatient hospital services, family planning services, mental health services, dental 
245.22 	services, prescription drugs, medical transportation, federally qualified health centers, rural 
245.23 	health centers, Indian health services, and Medicare cost-sharing.
245.24 		Subd. 9.Individually priced items. (i) (a) Effective for services provided on or after 
245.25 	July 1, 2015, the following categories of medical supplies and durable medical equipment 
245.26 	shall be individually priced items: customized and other specialized tracheostomy tubes 
245.27 	and supplies, electric patient lifts, and durable medical equipment repair and service.
245.28 	(b) This paragraph subdivision does not apply to medical supplies and durable medical 
245.29 	equipment subject to a volume purchase contract, products subject to the preferred diabetic 
245.30 	testing supply program, and items provided to dually eligible recipients when Medicare is 
245.31 	the primary payer for the item.
245.32 	(c) The commissioner shall not apply any medical assistance rate reductions to durable 
245.33 	medical equipment as a result of Medicare competitive bidding.
246.1 		Subd. 10.Rate increases effective July 1, 2015. (j) (a) Effective for services provided 
246.2 	on or after July 1, 2015, medical assistance payment rates for durable medical equipment, 
246.3 	prosthetics, orthotics, or supplies shall be increased as follows:
246.4 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that 
246.5 	were subject to the Medicare competitive bid that took effect in January of 2009 shall be 
246.6 	increased by 9.5 percent; and
246.7 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on 
246.8 	the medical assistance fee schedule, whether or not subject to the Medicare competitive bid 
246.9 	that took effect in January of 2009, shall be increased by 2.94 percent, with this increase 
246.10 	being applied after calculation of any increased payment rate under clause (1).
246.11 	This (b) Paragraph (a) does not apply to medical supplies and durable medical equipment 
246.12 	subject to a volume purchase contract, products subject to the preferred diabetic testing 
246.13 	supply program, items provided to dually eligible recipients when Medicare is the primary 
246.14 	payer for the item, and individually priced items identified in paragraph (i) subdivision 9.
246.15 	(c) Payments made to managed care plans and county-based purchasing plans shall not 
246.16 	be adjusted to reflect the rate increases in this paragraph subdivision.
246.17 		Subd. 11.Rates for ventilators. (k) (a) Effective for nonpressure support ventilators 
246.18 	provided on or after January 1, 2016, the rate shall be the lower of the submitted charge or 
246.19 	the Medicare fee schedule rate.
246.20 	(b) Effective for pressure support ventilators provided on or after January 1, 2016, the 
246.21 	rate shall be the lower of the submitted charge or 47 percent above the Medicare fee schedule 
246.22 	rate.
246.23 	(c) For payments made in accordance with this paragraph subdivision, if, and to the 
246.24 	extent that, the commissioner identifies that the state has received federal financial 
246.25 	participation for ventilators in excess of the amount allowed effective January 1, 2018, 
246.26 	under United States Code, title 42, section 1396b(i)(27), the state shall repay the excess 
246.27 	amount to the Centers for Medicare and Medicaid Services with state funds and maintain 
246.28 	the full payment rate under this paragraph subdivision.
246.29 		Subd. 12.Rates subject to the upper payment limit. (l) Payment rates for durable 
246.30 	medical equipment, prosthetics, orthotics or supplies, that are subject to the upper payment 
246.31 	limit in accordance with section 1903(i)(27) of the Social Security Act, shall be paid the 
246.32 	Medicare rate. Rate increases provided in this chapter shall not be applied to the items listed 
246.33 	in this paragraph subdivision.
247.1 		Subd. 13.Temporary rates for enteral nutrition and supplies. (m) (a) For dates of 
247.2 	service on or after July 1, 2023, through June 30, 2025, enteral nutrition and supplies must 
247.3 	be paid according to this paragraph subdivision. If sufficient data exists for a product or 
247.4 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
247.5 	per product code submitted to the commissioner, using only charges submitted per unit. 
247.6 	Increases in rates resulting from the 50th percentile payment method must not exceed 150 
247.7 	percent of the previous fiscal year's rate per code and product combination. Data are sufficient 
247.8 	if: (1) the commissioner has at least 100 paid claim lines by at least ten different providers 
247.9 	for a given product or supply; or (2) in the absence of the data in clause (1), the commissioner 
247.10 	has at least 20 claim lines by at least five different providers for a product or supply that 
247.11 	does not meet the requirements of clause (1). If sufficient data are not available to calculate 
247.12 	the 50th percentile for enteral products or supplies, the payment rate must be the payment 
247.13 	rate in effect on June 30, 2023.
247.14 	(b) This subdivision expires June 30, 2025.
247.15 		Subd. 14.Rates for enteral nutrition and supplies. (n) For dates of service on or after 
247.16 	July 1, 2025, enteral nutrition and supplies must be paid according to this paragraph
247.17 	subdivision and updated annually each January 1. If sufficient data exists for a product or 
247.18 	supply, payment must be based upon the 50th percentile of the usual and customary charges 
247.19 	per product code submitted to the commissioner for the previous calendar year, using only 
247.20 	charges submitted per unit. Increases in rates resulting from the 50th percentile payment 
247.21 	method must not exceed 150 percent of the previous year's rate per code and product 
247.22 	combination. Data are sufficient if: (1) the commissioner has at least 100 paid claim lines 
247.23 	by at least ten different providers for a given product or supply; or (2) in the absence of the 
247.24 	data in clause (1), the commissioner has at least 20 claim lines by at least five different 
247.25 	providers for a product or supply that does not meet the requirements of clause (1). If 
247.26 	sufficient data are not available to calculate the 50th percentile for enteral products or 
247.27 	supplies, the payment must be the manufacturer's suggested retail price of that product or 
247.28 	supply minus 20 percent. If the manufacturer's suggested retail price is not available, payment 
247.29 	must be the actual acquisition cost of that product or supply plus 20 percent.
247.30 		Subd. 15.Rates for phototherapy services. For dates of service on or after July 1, 
247.31 	2025, the payment rate for phototherapy services provided to newborns in the home setting 
247.32 	must include a service fee in the amount of $520 per patient episode, in addition to the daily 
247.33 	rental rate for the medical equipment in subdivision 12. The commissioner shall provide an 
247.34 	annual inflation adjustment for the phototherapy service fee. The index for the inflation 
248.1 	adjustment must be based on the Consumer Price Index for All Urban Consumers increase 
248.2 	published by the Bureau of Labor Statistics.

248.3 	Sec. 20. [256B.768] MEDICARE RATE ALIGNMENT.
248.4 		Subdivision 1.Medicare physician fee schedule rates. (a) Effective January 1, 2026, 
248.5 	or upon federal approval, whichever is later, and effective for services rendered on or after 
248.6 	January 1, 2026, or the date of federal approval, whichever is later, the commissioner must 
248.7 	make payments based on the resource-based relative value scale for all services:
248.8 	(1) covered in medical assistance; and
248.9 	(2) with a corresponding rate and procedure code in the Medicare Physician Fee Schedule.
248.10 	(b) Effective January 1, 2026, or upon federal approval, whichever is later, and effective 
248.11 	for services rendered on or after January 1, 2026, or the date of federal approval, whichever 
248.12 	is later, rates must be at least equal to 100 percent of the Medicare Physician Fee Schedule 
248.13 	if the service:
248.14 	(1) is reimbursed in medical assistance under the resource-based relative value scale; 
248.15 	and
248.16 	(2) has a corresponding rate and procedural code in the Medicare Physician Fee Schedule.
248.17 	(c) For services rendered on or after January 1, 2026, the commissioner shall increase 
248.18 	capitation payments made to managed care plans and county-based purchasing plans to 
248.19 	reflect the rate increases provided under this subdivision. Managed care plans and 
248.20 	county-based purchasing plans must reimburse providers at an amount that is at least equal 
248.21 	to the fee-for-service rate for services under this subdivision. The commissioner must 
248.22 	monitor the effect of this rate increase on enrollee access to services under this subdivision. 
248.23 	If for any contract year federal approval is not received for this paragraph, the commissioner 
248.24 	must adjust the capitation rates paid to managed care plans and county-based purchasing 
248.25 	plans for that contract year to reflect the removal of this paragraph. Contracts between 
248.26 	managed care plans and county-based purchasing plans and providers to whom this paragraph 
248.27 	applies must allow recovery of payments from those providers if capitation rates are adjusted 
248.28 	in accordance with this paragraph. Payment recoveries must not exceed the amount equal 
248.29 	to any increase in rates that results from this paragraph.
248.30 		Subd. 2.Applicable fee schedule. For purposes of this section, the applicable Medicare 
248.31 	Physician Fee Schedule is the most recent Medicare Physician Fee Schedule Final Rule 
248.32 	issued by the Centers for Medicare and Medicaid Services in effect at the time the service 
248.33 	was rendered.
249.1 		Subd. 3.Exceptions. This section does not apply to federally qualified health centers, 
249.2 	rural health centers, Indian health services, certified community behavioral health clinics, 
249.3 	cost-based rates, and rates that are negotiated with the county.

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

249.7 	Sec. 21. Minnesota Statutes 2024, section 295.50, subdivision 3, is amended to read:
249.8 		Subd. 3.Gross revenues. (a) "Gross revenues" are total amounts received in money or 
249.9 	otherwise by:
249.10 	(1) a hospital for patient services;
249.11 	(2) a surgical center for patient services;
249.12 	(3) a health care provider, other than a staff model health plan company, for patient 
249.13 	services;
249.14 	(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered 
249.15 	in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the 
249.16 	legend drugs are delivered to another wholesale drug distributor who sells legend drugs 
249.17 	exclusively at wholesale; and
249.18 	(5) a staff model health plan company as gross premiums for enrollees, co-payments, 
249.19 	deductibles, coinsurance, and fees for patient services.
249.20 	(b) For purposes of paragraph (a), clause (4), "gross revenues" includes the amount of 
249.21 	any rebate provided by the wholesale drug distributor to a customer, however provided, 
249.22 	including a rebate provided under a contractual obligation. "Rebate" means any price 
249.23 	concession provided by a wholesale drug distributor, including any discount or other price 
249.24 	concession based on the actual or estimated utilization, sale volume, or effectiveness of a 
249.25 	legend drug.

249.26 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
249.27 	30, 2025.

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

250.1 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
250.2 	30, 2025.

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

250.6 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
250.7 	30, 2025.

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

250.11 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
250.12 	30, 2025.

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

250.16 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
250.17 	30, 2025.

250.18 	Sec. 26. Minnesota Statutes 2024, section 295.52, subdivision 4, is amended to read:
250.19 		Subd. 4.Use tax; legend drugs. (a) A person that receives legend drugs for resale or 
250.20 	use in Minnesota, other than from a wholesale drug distributor that is subject to tax under 
250.21 	subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 
250.22 	1.8 two percent. Liability for the tax is incurred when legend drugs are received or delivered 
250.23 	in Minnesota by the person.
250.24 	(b) A tax imposed under this subdivision does not apply to purchases by an individual 
250.25 	for personal consumption.

250.26 	EFFECTIVE DATE. This section is effective for gross revenues received after June 
250.27 	30, 2025.

251.1 	Sec. 27. [295.525] MCO ASSESSMENT ON HEALTH PLAN COMPANIES.
251.2 		Subdivision 1.Definitions. (a) For purposes of this section, the definitions in this 
251.3 	subdivision have the meanings given.
251.4 	(b) "Commissioner" means the commissioner of human services.
251.5 	(c) "Enrollee" has the meaning given in section 62Q.01, except that enrollee does not 
251.6 	include:
251.7 	(1) an individual enrolled in a Medicare plan;
251.8 	(2) a plan-to-plan enrollee; or
251.9 	(3) an individual enrolled in a health plan pursuant to the Federal Employees Health 
251.10 	Benefits Act of 1959, Public Law 86-382, as amended, to the extent the imposition of the 
251.11 	assessment under this section is preempted pursuant to United States Code, title 5, section 
251.12 	8909, subsection (f).
251.13 	(d) "Health plan" has the meaning given in section 62Q.01.
251.14 	(e) "Health plan company" has the meaning given in section 62Q.01.
251.15 	(f) "Medical assistance" means the medical assistance program established under chapter 
251.16 	256B.
251.17 	(g) "Medical assistance enrollee" means an enrollee in medical assistance or 
251.18 	MinnesotaCare for whom the Department of Human Services directly pays the health plan 
251.19 	company a capitated payment.
251.20 	(h) "MinnesotaCare" means the MinnesotaCare program established under chapter 256L.
251.21 	(i) "Plan-to-plan enrollee" means an individual who receives coverage for health care 
251.22 	services through a health plan pursuant to a subcontract from another health plan.
251.23 		Subd. 2.MCO assessment. (a) An annual assessment is imposed on health plan 
251.24 	companies for each calendar year beginning in calendar year 2026. The total annual 
251.25 	assessment amount is equal to the sum of the amounts assessed for medical assistance 
251.26 	enrollees under paragraph (b) and for nonmedical assistance enrollees under paragraph (c).
251.27 	(b) The amount assessed for medical assistance enrollees is equal to the sum of the 
251.28 	following:
251.29 	(1) for medical assistance enrollees 0 to 60,000, $0 per enrollee;
251.30 	(2) for medical assistance enrollees 60,001 to 100,000, $340 per enrollee;
252.1 	(3) for medical assistance enrollees 100,001 to 200,000, $365 per enrollee; and
252.2 	(4) for medical assistance enrollees 200,001 to 350,000, $380 per enrollee.
252.3 	(c) The amount assessed for nonmedical assistance enrollees is equal to the sum of the 
252.4 	following:
252.5 	(1) for nonmedical assistance enrollees 0 to 60,000, $0 per enrollee;
252.6 	(2) for nonmedical assistance enrollees 60,001 to 100,000, 50 cents per enrollee;
252.7 	(3) for nonmedical assistance enrollees 100,001 to 200,000, 75 cents per enrollee; and
252.8 	(4) for nonmedical assistance enrollees 200,001 to 350,000, $1 per enrollee.
252.9 	(d) The commissioner must annually use the commissioner's authority as necessary to 
252.10 	modify the rate of assessment, provided under paragraph (e), such that the annual assessment 
252.11 	imposed under this subdivision does not exceed 2.8 percent of the health plan companies' 
252.12 	aggregate gross revenue.
252.13 	(e) The commissioner may, after consultation with health plan companies likely to be 
252.14 	affected, modify the rate of assessment, as set forth in paragraphs (a) to (d), as necessary 
252.15 	to:
252.16 	(1) comply with federal law, obtain or maintain a waiver under Code of Federal 
252.17 	Regulations, title 42, section 433.72, or to otherwise maximize under this section federal 
252.18 	financial participation for medical assistance; and
252.19 	(2) comply with paragraph (d).
252.20 	(f) Unpaid assessment amounts accrue interest at a rate of ten percent per annum, 
252.21 	beginning the day following the assessment payment's due date. A penalty, equal to the 
252.22 	total accrued interest charge, is imposed monthly on payments 60 days or more overdue 
252.23 	until the payment, penalty, and interest are paid in full.
252.24 		Subd. 3.Assessment computation; collection. (a) The commissioner must annually 
252.25 	determine the following for each health plan company:
252.26 	(1) total enrollment for the calendar year;
252.27 	(2) total Medicare enrollment for the calendar year;
252.28 	(3) total medical assistance enrollment for the calendar year;
252.29 	(4) total plan-to-plan enrollment for the calendar year;
253.1 	(5) total enrollment through the Federal Employees Health Benefits Act of 1959, Public 
253.2 	Law 86-382, as amended, for the calendar year; and
253.3 	(6) total other enrollment for the calendar year that is not otherwise counted in clauses 
253.4 	(2) to (5).
253.5 	(b) Health plan companies must provide any information requested by the commissioner 
253.6 	for the purpose of this subdivision, provided that the commissioner determines such 
253.7 	information is necessary to accurately determine the information in paragraph (a).
253.8 	(c) The commissioner may correct errors in data provided to the commissioner by a 
253.9 	health plan company to the extent necessary to accurately determine the information in 
253.10 	paragraph (a).
253.11 	(d) For purposes of calculating the information in paragraph (a) for a health plan company, 
253.12 	the commissioner must count any individual that was an enrollee of a health plan at any 
253.13 	point of the calendar year, regardless of the enrollee's duration as an enrollee of the health 
253.14 	plan.
253.15 	(e) The commissioner must annually use the information in paragraph (a) to compute 
253.16 	the assessment for each health plan company.
253.17 	(f) The commissioner must collect the annual assessment for each health plan company 
253.18 	in four equal installments, in the manner and on the schedule determined by the 
253.19 	commissioner. The commissioner is prohibited from collecting any amount under this section 
253.20 	until 20 days after the commissioner has notified the health plan company of:
253.21 	(1) the effective date of this section;
253.22 	(2) the assessment due dates for the applicable calendar year; and
253.23 	(3) the annual assessment amount.
253.24 	(g) The commissioner may waive all or part of the interest or penalty imposed on a 
253.25 	health plan company under subdivision 2, paragraph (f), if the commissioner determines 
253.26 	the interest or penalty is likely to create an undue financial hardship on the health plan 
253.27 	company or a significant financial difficulty in providing necessary services to medical 
253.28 	assistance enrollees. A waiver under this paragraph must be contingent on the health plan 
253.29 	company's agreement to make assessment payments on an alternative schedule, determined 
253.30 	by the commissioner, that accounts for the health plan company's finances and the potential 
253.31 	impact on the delivery of services to medical assistance enrollees.
254.1 	(h) In the event of a merger, acquisition, or other transaction that results in the transfer 
254.2 	of health plan responsibility to another health plan company or similar entity during calendar 
254.3 	years 2026 to 2029, the surviving, acquiring, or controlling health plan company or similar 
254.4 	entity shall be responsible for paying the full assessment amount as provided in this section 
254.5 	that would have been the responsibility of the health plan company to which that full 
254.6 	assessment amount was assessed upon the effective date of the transaction. If a transaction 
254.7 	results in the transfer of health plan responsibility for only some of a health plan's enrollees 
254.8 	under this section but not all enrollees, the full assessment amount as provided in this section 
254.9 	remains the responsibility of that health plan company to which that full assessment amount 
254.10 	was assessed.
254.11 		Subd. 4.MCO assessment expenditures. (a) All amounts collected by the commissioner 
254.12 	under this section must be deposited in the health care access fund.
254.13 	(b) All amounts collected by the commissioner under this section are annually 
254.14 	appropriated to the commissioner to provide nonfederal money for medical assistance and 
254.15 	MinnesotaCare program rate changes made in this act related to:
254.16 	(1) ambulance services under section 256B.0625, subdivision 17a;
254.17 	(2) behavioral health home services under section 256B.0757;
254.18 	(3) mental health services under section 256B.761;
254.19 	(4) services reimbursed under the resource-based relative value scale and with a 
254.20 	corresponding rate and procedural code in the Medicare Physician Fee Schedule under 
254.21 	section 256B.768;
254.22 	(5) inpatient behavioral health services provided by hospitals paid under the DRG 
254.23 	methodology under section 256.969, subdivision 2b, paragraph (l); and
254.24 	(6) mental health services provided by masters-prepared mental health professionals 
254.25 	and physician assistants resulting from the repeal of section 256B.0625, subdivision 38.
254.26 	(c) The assessment money must be used to supplement money for medical assistance 
254.27 	from the general fund.
254.28 	(d) The commissioner must provide an annual report to all health plan companies, in a 
254.29 	time and manner determined by the commissioner. The report must identify the assessments 
254.30 	imposed on each health plan company pursuant to this section, account for all money raised 
254.31 	by the MCO assessment, and provide an itemized accounting of expenditures from the fund.

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

255.9 	Sec. 28. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; ENHANCED 
255.10 	FEDERAL REIMBURSEMENT FOR FAMILY PLANNING SERVICES IN 
255.11 	MEDICAL ASSISTANCE.
 255.12 	The commissioner of human services must make the systems modification necessary to 
255.13 	claim enhanced federal reimbursement for all family planning services under the medical 
255.14 	assistance program.

255.15 	Sec. 29. IMPLEMENTATION OF HOSPITAL ASSESSMENT AND DIRECTED 
255.16 	PAYMENT PROGRAM.
 255.17 	(a) The commissioner of human services must immediately begin all necessary claims 
255.18 	analysis to calculate the assessment and payments required under Minnesota Statutes, section 
255.19 	256.9657, subdivision 2b, and the hospital directed payment program described in Minnesota 
255.20 	Statutes, section 256B.1974.
255.21 	(b) The commissioner of human services, in consultation with the Minnesota Hospital 
255.22 	Association, must submit to the Centers for Medicare and Medicaid Services a request for 
255.23 	federal approval to implement the hospital assessment described in Minnesota Statutes, 
255.24 	section 256.9657, subdivision 2b, and the hospital directed payment program under 
255.25 	Minnesota Statutes, section 256B.1974. At least 15 days before submitting the request for 
255.26 	approval, the commissioner must make available to the public the draft assessment 
255.27 	requirements, draft directed payment details, and an estimate of each assessment amount 
255.28 	for each hospital without an exemption from the assessment pursuant to Minnesota Statutes, 
255.29 	section 256.9657, subdivision 2b, paragraph (k).
255.30 	(c) During the design and prior to submission of the request for approval under paragraph 
255.31 	(b), the commissioner of human services must consult with the Minnesota Hospital 
255.32 	Association and any hospitals without an exemption from the assessment pursuant to 
256.1 	Minnesota Statutes, section 256.9657, subdivision 2b, paragraph (k), and that are not 
256.2 	members of the Minnesota Hospital Association.
256.3 	(d) If federal approval is received for the request under paragraph (b), the commissioner 
256.4 	of human services must provide at least 15 days of public posting and review of the federally 
256.5 	approved terms and conditions for the assessment and the directed payment program prior 
256.6 	to any assessment under Minnesota Statutes, section 256.9657, subdivision 2b, becoming 
256.7 	due from a hospital.

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

256.9 	Sec. 30. FEDERAL APPROVAL; WAIVERS.
 256.10 	(a) The commissioner must request, as the commissioner determines necessary, federal 
256.11 	approval for the MCO assessment on health plan companies established in this act to be 
256.12 	considered a permissible health-care-related tax under Code of Federal Regulations, title 
256.13 	42, section 433.68, eligible for federal financial participation.
256.14 	(b) To obtain the federal approval under paragraph (a), the commissioner may apply for 
256.15 	a waiver of the federal broad-based requirement for health care-related taxes, uniform 
256.16 	requirement for health-care-related taxes, and any other provision of federal law necessary 
256.17 	to implement Minnesota Statutes, section 295.525.

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

256.19 	Sec. 31. BUDGET NEUTRALITY; RATE ADJUSTMENTS.
 256.20 	(a) By October 1 of each year, the commissioner of human services must determine the 
256.21 	difference between the actual costs or forecasted costs to the medical assistance and 
256.22 	MinnesotaCare programs attributable to the program changes in Minnesota Statutes, section 
256.23 	295.525, subdivision 4, paragraph (b), clauses (1) to (6), and the revenue from the MCO 
256.24 	assessment imposed under Minnesota Statutes, section 295.525, subdivision 2, including 
256.25 	federal financial participation.
256.26 	(b) For each fiscal year, the commissioner of human services must certify the difference 
256.27 	between the actual costs or forecasted costs to the medical assistance and MinnesotaCare 
256.28 	programs determined under paragraph (a), and report the difference in costs to the 
256.29 	commissioner of management and budget at least four weeks prior to a forecast under 
256.30 	Minnesota Statutes, section 16A.103.
256.31 	(c) If for any fiscal year, the cumulative costs attributable to the program changes in 
256.32 	Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), clauses (1) to (6), exceed 
257.1 	revenue from the MCO assessment imposed under Minnesota Statutes, section 295.525, 
257.2 	subdivision 2, as determined under paragraph (a), the commissioner of human services must 
257.3 	reduce the costs to the medical assistance and MinnesotaCare programs attributable to the 
257.4 	program changes in Minnesota Statutes, section 295.525, subdivision 4, paragraph (b), 
257.5 	clauses (1) to (6). The commissioner's reduction under this paragraph must be on a uniform 
257.6 	percentage basis across the rate increases provided in Minnesota Statutes, section 295.525, 
257.7 	subdivision 4, paragraph (b), clauses (1) to (6).

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

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

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

257.26 	ARTICLE 7
257.27 	HUMAN SERVICES HEALTH CARE POLICY

257.28 	Section 1. Minnesota Statutes 2024, section 62Q.522, subdivision 1, is amended to read:
257.29 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
257.30 	(b) "Contraceptive method" means a drug, device, or other product approved by the 
257.31 	Food and Drug Administration to prevent unintended pregnancy.
258.1 	(c) "Contraceptive service" means consultation, examination, procedures, and medical 
258.2 	services related to the prevention of unintended pregnancy, excluding vasectomies. This 
258.3 	includes but is not limited to voluntary sterilization procedures, patient education, counseling 
258.4 	on contraceptives, and follow-up services related to contraceptive methods or services, 
258.5 	management of side effects, counseling for continued adherence, and device insertion or 
258.6 	removal.
258.7 	(d) "Medical necessity" includes but is not limited to considerations such as severity of 
258.8 	side effects, difference in permanence and reversibility of a contraceptive method or service, 
258.9 	and ability to adhere to the appropriate use of the contraceptive method or service, as 
258.10 	determined by the attending provider.
258.11 	(e) "Therapeutic equivalent version" means a drug, device, or product that can be expected 
258.12 	to have the same clinical effect and safety profile when administered to a patient under the 
258.13 	conditions specified in the labeling, and that:
258.14 	(1) is approved as safe and effective;
258.15 	(2) is a pharmaceutical equivalent: (i) containing identical amounts of the same active 
258.16 	drug ingredient in the same dosage form and route of administration; and (ii) meeting 
258.17 	compendial or other applicable standards of strength, quality, purity, and identity;
258.18 	(3) is bioequivalent in that:
258.19 	(i) the drug, device, or product does not present a known or potential bioequivalence 
258.20 	problem and meets an acceptable in vitro standard; or
258.21 	(ii) if the drug, device, or product does present a known or potential bioequivalence 
258.22 	problem, it is shown to meet an appropriate bioequivalence standard;
258.23 	(4) is adequately labeled; and
258.24 	(5) is manufactured in compliance with current manufacturing practice regulations.

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

258.27 	Sec. 2. Minnesota Statutes 2024, section 256B.0371, subdivision 3, is amended to read:
258.28 		Subd. 3.Contingent contract with dental administrator. (a) The commissioner shall 
258.29 	determine the extent to which managed care and county-based purchasing plans in the 
258.30 	aggregate meet the performance benchmark specified in subdivision 1 for coverage year 
258.31 	2024. If managed care and county-based purchasing plans in the aggregate fail to meet the 
258.32 	performance benchmark, the commissioner, after issuing a request for information followed 
259.1 	by a request for proposals, shall contract with a dental administrator to administer dental 
259.2 	services beginning January 1, 2026 2030, for all recipients of medical assistance and 
259.3 	MinnesotaCare, including persons served under fee-for-service and persons receiving 
259.4 	services through managed care and county-based purchasing plans.
259.5 	(b) The dental administrator must provide administrative services, including but not 
259.6 	limited to:
259.7 	(1) provider recruitment, contracting, and assistance;
259.8 	(2) recipient outreach and assistance;
259.9 	(3) utilization management and reviews of medical necessity for dental services;
259.10 	(4) dental claims processing;
259.11 	(5) coordination of dental care with other services;
259.12 	(6) management of fraud and abuse;
259.13 	(7) monitoring access to dental services;
259.14 	(8) performance measurement;
259.15 	(9) quality improvement and evaluation; and
259.16 	(10) management of third-party liability requirements.
259.17 	(c) Dental administrator payments to contracted dental providers must be at the rates 
259.18 	established under sections 256B.76 and 256L.11.
259.19 	(d) (c) Recipients must be given a choice of dental provider, including any provider who 
259.20 	agrees to provider participation requirements and payment rates established by the 
259.21 	commissioner and dental administrator. The dental administrator must comply with the 
259.22 	network adequacy and geographic access requirements that apply to managed care and 
259.23 	county-based purchasing plans for dental services under section 62K.14.
259.24 	(e) (d) The contract with the dental administrator must include a provision that states 
259.25 	that if the dental administrator fails to meet, by calendar year 2029 2032, a performance 
259.26 	benchmark under which at least 55 percent of children and adults who were continuously 
259.27 	enrolled for at least 11 months in either medical assistance or MinnesotaCare received at 
259.28 	least one dental visit during the calendar year, the contract must be terminated and the 
259.29 	commissioner must enter into a contract with a new dental administrator as soon as 
259.30 	practicable.
260.1 	(f) (e) The commissioner shall implement this subdivision in consultation with 
260.2 	representatives of providers who provide dental services to patients enrolled in medical 
260.3 	assistance or MinnesotaCare, including but not limited to providers serving primarily 
260.4 	low-income and socioeconomically complex populations, and with representatives of 
260.5 	managed care plans and county-based purchasing plans.

260.6 	Sec. 3. Minnesota Statutes 2024, section 256B.0625, is amended by adding a subdivision 
260.7 	to read:
260.8 		Subd. 77.Vasectomies. (a) Medical assistance covers vasectomies.
260.9 	(b) Medical assistance must meet the requirements with respect to coverage of 
260.10 	vasectomies that would otherwise apply to a health plan under section 62Q.522, except that 
260.11 	medical assistance is not required to comply with any provision of section 62Q.522 if 
260.12 	compliance with the provision would:
260.13 	(1) prevent the state from receiving federal financial participation for the coverage under 
260.14 	this subdivision;
260.15 	(2) result in a lower level of coverage or reduced access to coverage for medical assistance 
260.16 	enrollees; or
260.17 	(3) violate Code of Federal Regulations, title 42, part 441, subpart F.

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

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

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

261.2 	ARTICLE 8
261.3 	BEHAVIORAL HEALTH

261.4 	Section 1. Minnesota Statutes 2024, section 245.462, subdivision 20, is amended to read:
261.5 		Subd. 20.Mental illness. (a) "Mental illness" means an organic disorder of the brain or 
261.6 	a clinically significant disorder of thought, mood, perception, orientation, memory, or 
261.7 	behavior that is detailed in a diagnostic codes list published by the commissioner, and that 
261.8 	seriously limits a person's capacity to function in primary aspects of daily living such as 
261.9 	personal relations, living arrangements, work, and recreation.
261.10 	(b) An "adult with acute mental illness" means an adult who has a mental illness that is 
261.11 	serious enough to require prompt intervention.
261.12 	(c) For purposes of enrolling in case management and community support services, a 
261.13 	"person with serious and persistent mental illness" means an adult who has a mental illness 
261.14 	and meets at least one of the following criteria:
261.15 	(1) the adult has undergone two one or more episodes of inpatient, residential, or crisis 
261.16 	residential care for a mental illness within the preceding 24 12 months;
261.17 	(2) the adult has experienced a continuous psychiatric hospitalization or residential 
261.18 	treatment exceeding six months' duration within the preceding 12 months;
261.19 	(3) the adult has been treated by a crisis team two or more times within the preceding 
261.20 	24 months;
261.21 	(4) the adult:
261.22 	(i) has a diagnosis of schizophrenia, bipolar disorder, major depression, schizoaffective 
261.23 	disorder, post-traumatic stress disorder, generalized anxiety disorder, panic disorder, eating 
261.24 	disorder, or borderline personality disorder;
261.25 	(ii) indicates a significant impairment in functioning; and
261.26 	(iii) has a written opinion from a mental health professional, in the last three years, 
261.27 	stating that the adult is reasonably likely to have future episodes requiring inpatient or 
261.28 	residential treatment, of a frequency described in clause (1) or (2), or the need for in-home 
261.29 	services to remain in one's home, unless ongoing case management or community support 
261.30 	services are provided;
262.1 	(5) the adult has, in the last threefive years, been committed by a court as a person who 
262.2 	is mentally ill with a mental illness under chapter 253B, or the adult's commitment has been 
262.3 	stayed or continued; or
262.4 	(6) the adult (i) was eligible under clauses (1) to (5), but the specified time period has 
262.5 	expired or the adult was eligible as a child under section 245.4871, subdivision 6; and (ii) 
262.6 	has a written opinion from a mental health professional, in the last three years, stating that 
262.7 	the adult is reasonably likely to have future episodes requiring inpatient or residential 
262.8 	treatment, of a frequency described in clause (1) or (2), unless ongoing case management 
262.9 	or community support services are provided; or
262.10 	(7) (6) the adult was eligible as a child under section 245.4871, subdivision 6, and is 
262.11 	age 21 or younger.
262.12 	(d) For purposes of enrolling in case management and community support services, a 
262.13 	"person with a complex post-traumatic stress disorder" or "C-PTSD" means an adult who 
262.14 	has a mental illness and meets the following criteria:
262.15 	(1) the adult has post-traumatic stress disorder (PTSD) symptoms that significantly 
262.16 	interfere with daily functioning related to intergenerational trauma, racial trauma, or 
262.17 	unresolved historical grief; and
262.18 	(2) the adult has a written opinion from a mental health professional that includes 
262.19 	documentation of:
262.20 	(i) culturally sensitive assessments or screenings and identification of intergenerational 
262.21 	trauma, racial trauma, or unresolved historical grief;
262.22 	(ii) significant impairment in functioning due to the PTSD symptoms that meet C-PTSD 
262.23 	condition eligibility; and
262.24 	(iii) increasing concerns within the last three years that indicates the adult is at a 
262.25 	reasonable likelihood of experiencing significant episodes of PTSD with increased frequency, 
262.26 	impacting daily functioning unless mitigated by targeted case management or community 
262.27 	support services.
262.28 	(e) Adults may continue to receive case management or community support services if, 
262.29 	in the written opinion of a mental health professional, the person needs case management 
262.30 	or community support services to maintain the person's recovery.

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

263.1 	Sec. 2. Minnesota Statutes 2024, section 245.4661, subdivision 2, is amended to read:
263.2 		Subd. 2.Program design and implementation.  Adult mental health initiatives shall 
263.3 	be responsible for designing, planning, improving, and maintaining a mental health service 
263.4 	delivery system for adults with serious and persistent mental illness that would:
263.5 	(1) provide an expanded array of services from which clients can choose services 
263.6 	appropriate to their needs;
263.7 	(2) be based on purchasing strategies that improve access and coordinate services without 
263.8 	cost shifting;
263.9 	(3) prioritize evidence-based services and implement services that are promising practices 
263.10 	or theory-based practices so that the service can be evaluated according to subdivision 5a;
263.11 	(4) incorporate existing state facilities and resources into the community mental health 
263.12 	infrastructure through creative partnerships with local vendors; and
263.13 	(5) utilize existing categorical funding streams and reimbursement sources in combined 
263.14 	and creative ways, except adult mental health initiative funding only after all other eligible 
263.15 	funding sources have been applied. Appropriations and all funds that are attributable to the 
263.16 	operation of state-operated services under the control of the Direct Care and Treatment 
263.17 	executive board are excluded unless appropriated specifically by the legislature for a purpose 
263.18 	consistent with this section.

263.19 	Sec. 3. Minnesota Statutes 2024, section 245.4661, subdivision 6, is amended to read:
263.20 		Subd. 6.Duties of commissioner. (a) For purposes of adult mental health initiatives, 
263.21 	the commissioner shall facilitate integration of funds or other resources as needed and 
263.22 	requested by each adult mental health initiative. These resources may include:
263.23 	(1) community support services funds administered under Minnesota Rules, parts 
263.24 	9535.1700 to 9535.1760;
263.25 	(2) other mental health special project funds;
263.26 	(3) medical assistance, MinnesotaCare, and housing support under chapter 256I if 
263.27 	requested by the adult mental health initiative's managing entity and if the commissioner 
263.28 	determines this would be consistent with the state's overall health care reform efforts; and
263.29 	(4) regional treatment center resources, with consent from the Direct Care and Treatment 
263.30 	executive board.
264.1 	(b) The commissioner shall consider the following criteria in awarding grants for adult 
264.2 	mental health initiatives:
264.3 	(1) the ability of the initiatives to accomplish the objectives described in subdivision 2;
264.4 	(2) the size of the target population to be served; and
264.5 	(3) geographical distribution.
264.6 	(c) (b) The commissioner shall review overall status of the initiatives at least every two 
264.7 	years and recommend any legislative changes needed by January 15 of each odd-numbered 
264.8 	year.
264.9 	(d) (c) The commissioner may waive administrative rule requirements that are 
264.10 	incompatible with the implementation of the adult mental health initiative.
264.11 	(e) (d) The commissioner may exempt the participating counties from fiscal sanctions 
264.12 	for noncompliance with requirements in laws and rules that are incompatible with the 
264.13 	implementation of the adult mental health initiative.
264.14 	(f) (e) The commissioner may award grants to an entity designated by a county board 
264.15 	or group of county boards to pay for start-up and implementation costs of the adult mental 
264.16 	health initiative.

264.17 	Sec. 4. Minnesota Statutes 2024, section 245.4661, subdivision 7, is amended to read:
264.18 		Subd. 7.Duties of adult mental health initiative board. The adult mental health 
264.19 	initiative board, or other entity which is approved to administer an adult mental health 
264.20 	initiative, shall:
264.21 	(1) administer the initiative in a manner that is consistent with the objectives described 
264.22 	in subdivision 2 and the planning process described in subdivision 5;
264.23 	(2) assure that no one is denied services that they would otherwise be eligible for; and
264.24 	(3) provide the commissioner of human services with timely and pertinent information 
264.25 	through the following methods:
264.26 	(i) submission of mental health plans and plan amendments which are based on a format 
264.27 	and timetable determined by the commissioner;
264.28 	(ii) submission of social services expenditure and grant reconciliation reports, based on 
264.29 	a coding format to be determined by mutual agreement between the initiative's managing 
264.30 	entity and the commissioner; and
265.1 	(iii) submission of data and participation in an evaluation of the adult mental health 
265.2 	initiatives, to be designed cooperatively by the commissioner and the initiatives. For services 
265.3 	provided to American Indians in Tribal Nations or urban Indian communities, oral reports 
265.4 	using a system designed in partnership between the commissioner and the reporting 
265.5 	community satisfy the requirements of this clause.

265.6 	Sec. 5. Minnesota Statutes 2024, section 245.467, subdivision 4, is amended to read:
265.7 		Subd. 4.Referral for case management. Each provider of emergency services, day 
265.8 	treatment services, outpatient treatment, community support services, residential treatment, 
265.9 	acute care hospital inpatient treatment, or regional treatment center inpatient treatment must 
265.10 	inform each of its clients with serious and persistent mental illness or a complex 
265.11 	post-traumatic stress disorder of the availability and potential benefits to the client of case 
265.12 	management. If the client consents, the provider must refer the client by notifying the county 
265.13 	employee designated by the county board to coordinate case management activities of the 
265.14 	client's name and address and by informing the client of whom to contact to request case 
265.15 	management. The provider must document compliance with this subdivision in the client's 
265.16 	record.

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

265.19 	Sec. 6. Minnesota Statutes 2024, section 245.4711, subdivision 1, is amended to read:
265.20 		Subdivision 1.Availability of case management services. (a) By January 1, 1989, The 
265.21 	county board shall provide case management services for all adults with serious and persistent 
265.22 	mental illness or a complex post-traumatic stress disorder who are residents of the county 
265.23 	and who request or consent to the services and to each adult for whom the court appoints a 
265.24 	case manager. Staffing ratios must be sufficient to serve the needs of the clients. The case 
265.25 	manager must meet the requirements in section 245.462, subdivision 4.
265.26 	(b) Case management services provided to adults with serious and persistent mental 
265.27 	illness or a complex post-traumatic stress disorder eligible for medical assistance must be 
265.28 	billed to the medical assistance program under sections 256B.02, subdivision 8, and 
265.29 	256B.0625.
265.30 	(c) Case management services are eligible for reimbursement under the medical assistance 
265.31 	program. Costs associated with mentoring, supervision, and continuing education may be 
265.32 	included in the reimbursement rate methodology used for case management services under 
265.33 	the medical assistance program.

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

266.3 	Sec. 7. Minnesota Statutes 2024, section 245.4711, subdivision 4, is amended to read:
266.4 		Subd. 4.Individual community support plan. (a) The case manager must develop an 
266.5 	individual community support plan for each adult that incorporates the client's individual 
266.6 	treatment plan. The individual treatment plan may not be a substitute for the development 
266.7 	of an individual community support plan. The individual community support plan must be 
266.8 	developed within 30 days of client intake and reviewed at least every 180 days after it is 
266.9 	developed, unless the case manager receives a written request from the client or the client's 
266.10 	family for a review of the plan every 90 days after it is developed. The case manager is 
266.11 	responsible for developing the individual community support plan based on a diagnostic 
266.12 	assessment and a functional assessment and for implementing and monitoring the delivery 
266.13 	of services according to the individual community support plan. To the extent possible, the 
266.14 	adult with serious and persistent mental illness or a complex post-traumatic stress disorder, 
266.15 	the person's family, advocates, service providers, and significant others must be involved 
266.16 	in all phases of development and implementation of the individual community support plan.
266.17 	(b) The client's individual community support plan must state:
266.18 	(1) the goals of each service;
266.19 	(2) the activities for accomplishing each goal;
266.20 	(3) a schedule for each activity; and
266.21 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
266.22 	need and the implementation of the individual community support plan.

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

266.25 	Sec. 8. Minnesota Statutes 2024, section 245.4712, subdivision 1, is amended to read:
266.26 		Subdivision 1.Availability of community support services. (a) County boards must 
266.27 	provide or contract for sufficient community support services within the county to meet the 
266.28 	needs of adults with serious and persistent mental illness or a complex post-traumatic stress 
266.29 	disorder who are residents of the county. Adults may be required to pay a fee according to 
266.30 	section 245.481. The community support services program must be designed to improve 
266.31 	the ability of adults with serious and persistent mental illness or a complex post-traumatic 
266.32 	stress disorder to:
267.1 	(1) find and maintain competitive employment;
267.2 	(2) handle basic activities of daily living;
267.3 	(3) participate in leisure time activities;
267.4 	(4) set goals and plans; and
267.5 	(5) obtain and maintain appropriate living arrangements.
267.6 	The community support services program must also be designed to reduce the need for 
267.7 	and use of more intensive, costly, or restrictive placements both in number of admissions 
267.8 	and length of stay.
267.9 	(b) Community support services are those services that are supportive in nature and not 
267.10 	necessarily treatment oriented, and include:
267.11 	(1) conducting outreach activities such as home visits, health and wellness checks, and 
267.12 	problem solving;
267.13 	(2) connecting people to resources to meet their basic needs;
267.14 	(3) finding, securing, and supporting people in their housing;
267.15 	(4) attaining and maintaining health insurance benefits;
267.16 	(5) assisting with job applications, finding and maintaining employment, and securing 
267.17 	a stable financial situation;
267.18 	(6) fostering social support, including support groups, mentoring, peer support, and other 
267.19 	efforts to prevent isolation and promote recovery; and
267.20 	(7) educating about mental illness, treatment, and recovery.
267.21 	(c) Community support services shall use all available funding streams. The county shall 
267.22 	maintain the level of expenditures for this program, as required under section 245.4835. 
267.23 	County boards must continue to provide funds for those services not covered by other 
267.24 	funding streams and to maintain an infrastructure to carry out these services. The county is 
267.25 	encouraged to fund evidence-based practices such as Individual Placement and Supported 
267.26 	Employment and Illness Management and Recovery.
267.27 	(d) The commissioner shall collect data on community support services programs, 
267.28 	including, but not limited to, demographic information such as age, sex, race, the number 
267.29 	of people served, and information related to housing, employment, hospitalization, symptoms, 
267.30 	and satisfaction with services.

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

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

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

268.15 	Sec. 11. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
268.16 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
268.17 	make grants from available appropriations to assist:
268.18 	(1) counties;
268.19 	(2) Indian tribes;
268.20 	(3) children's collaboratives under section 142D.15 or 245.493; or
268.21 	(4) mental health service providers.
268.22 	(b) The following services are eligible for grants under this section:
268.23 	(1) services to children with emotional disturbances as defined in section 245.4871, 
268.24 	subdivision 15, and their families;
268.25 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
268.26 	age 21 and their families;
268.27 	(3) respite care services for children with emotional disturbances or severe emotional 
268.28 	disturbances who are at risk of residential treatment or hospitalization, who are already in 
268.29 	out-of-home placement in family foster settings as defined in chapter 142B and at risk of 
268.30 	change in out-of-home placement or placement in a residential facility or other higher level 
269.1 	of care, who have utilized crisis services or emergency room services, or who have 
269.2 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
269.3 	care services are defined under subdivision 4. A child is not required to have case 
269.4 	management services to receive respite care services. Counties must work to provide access 
269.5 	to regularly scheduled respite care;
269.6 	(4) children's mental health crisis services;
269.7 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
269.8 	(6) mental health services for people from cultural and ethnic minorities, including 
269.9 	supervision of clinical trainees who are Black, indigenous, or people of color;
269.10 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
269.11 	(8) services to promote and develop the capacity of providers to use evidence-based 
269.12 	practices in providing children's mental health services;
269.13 	(9) school-linked mental health services under section 245.4901;
269.14 	(10) building evidence-based mental health intervention capacity for children birth to 
269.15 	age five;
269.16 	(11) suicide prevention and counseling services that use text messaging statewide;
269.17 	(12) mental health first aid training;
269.18 	(13) training for parents, collaborative partners, and mental health providers on the 
269.19 	impact of adverse childhood experiences and trauma and development of an interactive 
269.20 	website to share information and strategies to promote resilience and prevent trauma;
269.21 	(14) transition age services to develop or expand mental health treatment and supports 
269.22 	for adolescents and young adults 26 years of age or younger;
269.23 	(15) early childhood mental health consultation;
269.24 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
269.25 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
269.26 	psychosis;
269.27 	(17) psychiatric consultation for primary care practitioners; and
269.28 	(18) providers to begin operations and meet program requirements when establishing a 
269.29 	new children's mental health program. These may be start-up grants; and
269.30 	(19) evidence-based interventions for youth and young adults at risk of developing or 
269.31 	experiencing an early episode of bipolar disorder.
270.1 	(c) Services under paragraph (b) must be designed to help each child to function and 
270.2 	remain with the child's family in the community and delivered consistent with the child's 
270.3 	treatment plan. Transition services to eligible young adults under this paragraph must be 
270.4 	designed to foster independent living in the community.
270.5 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
270.6 	reimbursement sources, if applicable.
270.7 	(e) The commissioner may establish and design a pilot program to expand the mobile 
270.8 	response and stabilization services model for children, youth, and families. The commissioner 
270.9 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
270.10 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
270.11 	amendment to scale the model statewide.

270.12 	Sec. 12. Minnesota Statutes 2024, section 245.4905, is amended to read:
270.13 	245.4905 FIRST EPISODE OF PSYCHOSIS AND EARLY EPISODE OF 
270.14 	BIPOLAR DISORDER GRANT PROGRAM.
270.15 		Subdivision 1.Creation Establishment. The commissioner of human services must 
270.16 	establish the first episode of psychosis and early episode of bipolar disorder grant program 
270.17 	is established in the Department of Human Services within the department to fund: (1)
270.18 	evidence-based interventions for youth and young adults at risk of developing or experiencing 
270.19 	a first episode of psychosis or an early episode of bipolar disorder; and (2) a public awareness 
270.20 	campaign on the signs and symptoms of psychosis. First episode of psychosis services are 
270.21 	eligible for children's mental health grants as specified in section 245.4889, subdivision 1, 
270.22 	paragraph (b), clause (15) For purposes of this section, "youth and young adults" means 
270.23 	individuals who are 15 years of age or older and under 41 years of age.
270.24 		Subd. 2.Activities. (a) All first episode of psychosis grant programs or early episode 
270.25 	of bipolar disorder grantees must:
270.26 	(1) provide intensive treatment and support for adolescents and youth and young adults 
270.27 	experiencing or at risk of experiencing a first psychotic episode of psychosis or early episodes 
270.28 	of bipolar disorder. Intensive treatment and support includes may include medication 
270.29 	management, psychoeducation for an individual and an individual's family, case management, 
270.30 	employment support, education support, cognitive behavioral approaches, social skills 
270.31 	training, peer and family peer support, crisis planning, and stress management;
271.1 	(2) conduct outreach and provide training and guidance to mental health and health care 
271.2 	professionals, including postsecondary health clinicians, on early psychosis and bipolar 
271.3 	disorder symptoms, screening tools, and best practices;
271.4 	(3) ensure access for individuals to first psychotic episode of psychosis services under 
271.5 	this section, including access for individuals who live in rural areas; and
271.6 	(4) use all available funding streams.
271.7 	(b) Grant money may also be used to pay for housing or travel expenses for individuals 
271.8 	receiving services or to address other barriers preventing individuals and their families from 
271.9 	participating in first psychotic episode of psychosis services.
271.10 		Subd. 3.Eligibility Funding. Program activities must be provided to people 15 to 40 
271.11 	years old with early signs of psychosis First episode of psychosis services and early episode 
271.12 	of bipolar disorder services are eligible for children's mental health grants as specified in 
271.13 	section 245.4889, subdivision 1, paragraph (b), clauses (16) and (19).
271.14 		Subd. 4.Outcomes. (a) The commissioner must annually evaluate the first episode of 
271.15 	psychosis and early episode of bipolar disorder grant program.
271.16 	(b) The evaluation of program activities must utilize evidence-based practices and must 
271.17 	include the following outcome evaluation criteria:
271.18 	(1) whether individuals experience a reduction in psychotic symptoms;
271.19 	(2) whether individuals experience a decrease in inpatient mental health hospitalizations
271.20 	or interactions with the criminal justice system; and
271.21 	(3) whether individuals experience an increase in educational attainment or employment.
271.22 	(c) By July 1, 2026, and every July 1 thereafter, the commissioner must provide a report 
271.23 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
271.24 	over behavioral health, along with the chairs and ranking minority members of the senate 
271.25 	finance committee and house of representatives ways and means committee. The report 
271.26 	must include the number of grantees receiving funds under this section, the number of 
271.27 	individuals served under this section, data from the evaluation conducted under this 
271.28 	subdivision, and information on the use of state and federal funds for the services provided 
271.29 	under this section.
271.30 		Subd. 5.Federal aid or grants. The commissioner of human services must comply with 
271.31 	all conditions and requirements necessary to receive federal aid or grants.

272.1 	Sec. 13. Minnesota Statutes 2024, section 256B.0625, subdivision 20, is amended to read:
272.2 		Subd. 20.Mental health case management. (a) To the extent authorized by rule of the 
272.3 	state agency, medical assistance covers case management services to persons with serious 
272.4 	and persistent mental illness, persons with a complex post-traumatic stress disorder, and 
272.5 	children with severe emotional disturbance. Services provided under this section must meet 
272.6 	the relevant standards in sections 245.461 to 245.4887, the Comprehensive Adult and 
272.7 	Children's Mental Health Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
272.8 	9505.0322, excluding subpart 10.
272.9 	(b) Entities meeting program standards set out in rules governing family community 
272.10 	support services as defined in section 245.4871, subdivision 17, are eligible for medical 
272.11 	assistance reimbursement for case management services for children with severe emotional 
272.12 	disturbance when these services meet the program standards in Minnesota Rules, parts 
272.13 	9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.
272.14 	(c) Medical assistance and MinnesotaCare payment for mental health case management 
272.15 	shall be made on a monthly basis. In order to receive payment for an eligible child, the 
272.16 	provider must document at least a face-to-face contact either in person or by interactive 
272.17 	video that meets the requirements of subdivision 20b with the child, the child's parents, or 
272.18 	the child's legal representative. To receive payment for an eligible adult, the provider must 
272.19 	document:
272.20 	(1) at least a face-to-face contact with the adult or the adult's legal representative either 
272.21 	in person or by interactive video that meets the requirements of subdivision 20b; or
272.22 	(2) at least a telephone contact with the adult or the adult's legal representative and 
272.23 	document a face-to-face contact either in person or by interactive video that meets the 
272.24 	requirements of subdivision 20b with the adult or the adult's legal representative within the 
272.25 	preceding two months.
272.26 	(d) Payment for mental health case management provided by county or state staff shall 
272.27 	be based on the monthly rate methodology under section 256B.094, subdivision 6, paragraph 
272.28 	(b), with separate rates calculated for child welfare and mental health, and within mental 
272.29 	health, separate rates for children and adults.
272.30 	(e) Payment for mental health case management provided by Indian health services or 
272.31 	by agencies operated by Indian tribes may be made according to this section or other relevant 
272.32 	federally approved rate setting methodology.
273.1 	(f) Payment for mental health case management provided by vendors who contract with 
273.2 	a county must be calculated in accordance with section 256B.076, subdivision 2. Payment 
273.3 	for mental health case management provided by vendors who contract with a Tribe must 
273.4 	be based on a monthly rate negotiated by the Tribe. The rate must not exceed the rate charged 
273.5 	by the vendor for the same service to other payers. If the service is provided by a team of 
273.6 	contracted vendors, the team shall determine how to distribute the rate among its members. 
273.7 	No reimbursement received by contracted vendors shall be returned to the county or tribe, 
273.8 	except to reimburse the county or tribe for advance funding provided by the county or tribe 
273.9 	to the vendor.
273.10 	(g) If the service is provided by a team which includes contracted vendors, tribal staff, 
273.11 	and county or state staff, the costs for county or state staff participation in the team shall be 
273.12 	included in the rate for county-provided services. In this case, the contracted vendor, the 
273.13 	tribal agency, and the county may each receive separate payment for services provided by 
273.14 	each entity in the same month. In order to prevent duplication of services, each entity must 
273.15 	document, in the recipient's file, the need for team case management and a description of 
273.16 	the roles of the team members.
273.17 	(h) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for 
273.18 	mental health case management shall be provided by the recipient's county of responsibility, 
273.19 	as defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds 
273.20 	used to match other federal funds. If the service is provided by a tribal agency, the nonfederal 
273.21 	share, if any, shall be provided by the recipient's tribe. When this service is paid by the state 
273.22 	without a federal share through fee-for-service, 50 percent of the cost shall be provided by 
273.23 	the recipient's county of responsibility.
273.24 	(i) Notwithstanding any administrative rule to the contrary, prepaid medical assistance 
273.25 	and MinnesotaCare include mental health case management. When the service is provided 
273.26 	through prepaid capitation, the nonfederal share is paid by the state and the county pays no 
273.27 	share.
273.28 	(j) The commissioner may suspend, reduce, or terminate the reimbursement to a provider 
273.29 	that does not meet the reporting or other requirements of this section. The county of 
273.30 	responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal agency, 
273.31 	is responsible for any federal disallowances. The county or tribe may share this responsibility 
273.32 	with its contracted vendors.
274.1 	(k) The commissioner shall set aside a portion of the federal funds earned for county 
274.2 	expenditures under this section to repay the special revenue maximization account under 
274.3 	section 256.01, subdivision 2, paragraph (n). The repayment is limited to:
274.4 	(1) the costs of developing and implementing this section; and
274.5 	(2) programming the information systems.
274.6 	(l) Payments to counties and tribal agencies for case management expenditures under 
274.7 	this section shall only be made from federal earnings from services provided under this 
274.8 	section. When this service is paid by the state without a federal share through fee-for-service, 
274.9 	50 percent of the cost shall be provided by the state. Payments to county-contracted vendors 
274.10 	shall include the federal earnings, the state share, and the county share.
274.11 	(m) Case management services under this subdivision do not include therapy, treatment, 
274.12 	legal, or outreach services.
274.13 	(n) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, 
274.14 	and the recipient's institutional care is paid by medical assistance, payment for case 
274.15 	management services under this subdivision is limited to the lesser of:
274.16 	(1) the last 180 days of the recipient's residency in that facility and may not exceed more 
274.17 	than six months in a calendar year; or
274.18 	(2) the limits and conditions which apply to federal Medicaid funding for this service.
274.19 	(o) Payment for case management services under this subdivision shall not duplicate 
274.20 	payments made under other program authorities for the same purpose.
274.21 	(p) If the recipient is receiving care in a hospital, nursing facility, or residential setting 
274.22 	licensed under chapter 245A or 245D that is staffed 24 hours a day, seven days a week, 
274.23 	mental health targeted case management services must actively support identification of 
274.24 	community alternatives for the recipient and discharge planning.

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

274.27 	Sec. 14. MENTAL HEALTH COLLABORATION HUB INNOVATION PILOT 
274.28 	PROGRAM.
 274.29 	(a) The commissioner of human services must support the Mental Health Collaboration 
274.30 	Hub's pilot project to develop and implement innovative care pathways and care facility 
274.31 	decompression strategies by providing funding support and technical assistance and entering 
274.32 	into a data-sharing agreement with the Mental Health Collaboration Hub. The pilot project 
275.1 	must fund, track, and evaluate activities that expedite transitions of children from 
275.2 	inappropriate care settings to appropriate care settings. A steering committee of expert 
275.3 	Mental Health Collaboration Hub participants that represent the continuum of children's 
275.4 	behavioral health care must guide funding determinations to support the transition of up to 
275.5 	200 children per year.
275.6 	(b) On January 1, 2027, and each January 1 for the subsequent four years, the Mental 
275.7 	Health Collaboration Hub must submit a report to the commissioner and chairs and ranking 
275.8 	minority members of the legislative committees with jurisdiction over children's mental 
275.9 	health and juvenile detention. The report must describe how the grant money was spent and 
275.10 	summarize the impact the pilot project had on participating children, families, and providers.

275.11 	Sec. 15. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY REPORT.
 275.12 	(a) By January 15, 2026, the commissioner of human services, in consultation with 
275.13 	organizations operating psychiatric residential treatment facilities, advocates, health care 
275.14 	experts, juvenile detention experts, and county representatives, must submit a report and 
275.15 	proposed legislative changes to the chairs and ranking minority members of the legislative 
275.16 	committees with jurisdiction over children's mental health and juvenile detention. The 
275.17 	submitted report must include recommendations on:
275.18 	(1) amending the state medical assistance plan to expand access to care provided in 
275.19 	psychiatric residential treatment facilities, with consideration being given to enhancing 
275.20 	flexibilities to serve a continuum of mental health needs;
275.21 	(2) developing licensing standards for psychiatric residential treatment facilities that 
275.22 	reflect needed flexibilities and the broad inclusion of settings where care can be delivered; 
275.23 	and
275.24 	(3) updating the rate methodology for services provided in psychiatric residential 
275.25 	treatment facilities to assure high quality of care with required individualization.
275.26 	(b) When developing the recommendations required under paragraph (a), the 
275.27 	commissioner must:
275.28 	(1) consider how best to meet the needs of children with high levels of complexity, 
275.29 	aggression, and other related barriers to being served by community providers; and
275.30 	(2) determine what would be required, including needed infrastructure, staffing, and 
275.31 	sustainable funding sources, to allow qualified residential treatment programs to transition 
275.32 	to a psychiatric residential treatment facility standard of care.

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

276.2 	ARTICLE 9
276.3 	BEHAVIORAL HEALTH POLICY

276.4 	Section 1. Minnesota Statutes 2024, section 144.651, subdivision 2, is amended to read:
276.5 		Subd. 2.Definitions. For the purposes of this section, "patient" means a person who is 
276.6 	admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for 
276.7 	the purpose of diagnosis or treatment bearing on the physical or mental health of that person. 
276.8 	For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a 
276.9 	person who receives health care services at an outpatient surgical center or at a birth center 
276.10 	licensed under section 144.615. "Patient" also means a minor who is admitted to a residential 
276.11 	program as defined in section 253C.01. For purposes of subdivisions 1, 3 to 16, 18, 20 and 
276.12 	30, "patient" also means any person who is receiving mental health treatment on an outpatient 
276.13 	basis or in a community support program or other community-based program. "Resident" 
276.14 	means a person who is admitted to a nonacute care facility including extended care facilities, 
276.15 	nursing homes, and boarding care homes for care required because of prolonged mental or 
276.16 	physical illness or disability, recovery from injury or disease, or advancing age. For purposes 
276.17 	of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is 
276.18 	admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 
276.19 	4625.0100 to 4625.2355, a boarding care home under sections 144.50 to 144.56, or a 
276.20 	supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which 
276.21 	operates a rehabilitation program licensed under chapter 245G or 245I, or Minnesota Rules, 
276.22 	parts 9530.6510 to 9530.6590. For purposes of all subdivisions except subdivisions 20, 28, 
276.23 	29, 32, and 33, resident also means a person who is admitted to a facility licensed to provide 
276.24 	intensive residential treatment services or residential crisis stabilization under section 
276.25 	245I.23.

276.26 	Sec. 2. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
276.27 		Subd. 4.Case management service provider. (a) "Case management service provider" 
276.28 	means a case manager or case manager associate employed by the county or other entity 
276.29 	authorized by the county board to provide case management services specified in section 
276.30 	245.4711.
276.31 	(b) A case manager must:
276.32 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
277.1 	(2) be knowledgeable about local community resources and how to use those resources 
277.2 	for the benefit of the client;
277.3 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
277.4 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
277.5 	limited to, social work, psychology, or nursing from an accredited college or university. A 
277.6 	case manager who is not a mental health practitioner and or who does not have a bachelor's 
277.7 	degree in one of the behavioral sciences or related fields must meet the requirements of 
277.8 	paragraph (c); and
277.9 	(4) meet the supervision and continuing education requirements described in paragraphs 
277.10 	(d), (e), and (f), as applicable.
277.11 	(c) Case managers without a bachelor's degree or with a bachelor's degree that is not in 
277.12 	one of the behavioral sciences or related fields must meet one of the requirements in clauses 
277.13 	(1) to (3) (5):
277.14 	(1) have three or four years of experience as a case manager associate as defined in this 
277.15 	section;
277.16 	(2) be a registered nurse without a bachelor's degree and have a combination of 
277.17 	specialized training in psychiatry and work experience consisting of community interaction 
277.18 	and involvement or community discharge planning in a mental health setting totaling three 
277.19 	years; or
277.20 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
277.21 	Service waiver provision and meet the continuing education and mentoring requirements 
277.22 	in this section.;
277.23 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
277.24 	characteristics and needs of adults with serious and persistent mental illness that is consistent 
277.25 	with national practice standards; or
277.26 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
277.27 	of the characteristics and needs of adults with serious and persistent mental illness, consistent 
277.28 	with national practice standards.
277.29 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
277.30 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
277.31 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
277.32 	supervision regarding individual service delivery with a case management supervisor. The 
277.33 	remaining 26 hours of supervision may be provided by a case manager with two years of 
278.1 	experience. Group supervision may not constitute more than one-half of the required 
278.2 	supervision hours. Clinical supervision must be documented in the client record.
278.3 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
278.4 	services to adults with mental illness must:
278.5 	(1) receive clinical supervision regarding individual service delivery from a mental 
278.6 	health professional at least one hour per week until the requirement of 2,000 hours of 
278.7 	experience is met; and
278.8 	(2) complete 40 hours of training approved by the commissioner in case management 
278.9 	skills and the characteristics and needs of adults with serious and persistent mental illness.
278.10 	(f) A case manager who is not licensed, registered, or certified by a health-related 
278.11 	licensing board must receive 30 hours of continuing education and training in mental illness 
278.12 	and mental health services every two years.
278.13 	(g) A case manager associate (CMA) must:
278.14 	(1) work under the direction of a case manager or case management supervisor;
278.15 	(2) be at least 21 years of age;
278.16 	(3) have at least a high school diploma or its equivalent; and
278.17 	(4) meet one of the following criteria:
278.18 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
278.19 	(ii) be a certified peer specialist under section 256B.0615;
278.20 	(iii) be a registered nurse without a bachelor's degree;
278.21 	(iv) within the previous ten years, have three years of life experience with serious and 
278.22 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
278.23 	disturbance as defined in section 245.4871, subdivision 6; or have three years life experience 
278.24 	as a primary caregiver to an adult with serious and persistent mental illness within the 
278.25 	previous ten years;
278.26 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
278.27 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
278.28 	persons with mental illness.
278.29 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
278.30 	after four years of supervised work experience as a case manager associate. Individuals 
279.1 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
279.2 	experience as a case manager associate.
279.3 	(h) A case management associate must meet the following supervision, mentoring, and 
279.4 	continuing education requirements:
279.5 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
279.6 	(2) receive at least 40 hours of annual continuing education in mental illness and mental 
279.7 	health services annually; andaccording to the following schedule, based on years of service 
279.8 	as a case management associate:
279.9 	(i) at least 40 hours in the first year;
279.10 	(ii) at least 30 hours in the second year;
279.11 	(iii) at least 20 hours in the third year; and
279.12 	(iv) at least 20 hours in the fourth year; and
279.13 	(3) receive at least five four hours of mentoring supervision per week month from a case 
279.14 	management mentor supervisor.
279.15 	A "case management mentor" means a qualified, practicing case manager or case management 
279.16 	supervisor who teaches or advises and provides intensive training and clinical supervision 
279.17 	to one or more case manager associates. Mentoring may occur while providing direct services 
279.18 	to consumers in the office or in the field and may be provided to individuals or groups of 
279.19 	case manager associates. At least two mentoring hours per week must be individual and 
279.20 	face-to-face.
279.21 	(i) A case management supervisor must meet the criteria for mental health professionals, 
279.22 	as specified in subdivision 18.
279.23 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
279.24 	provide case management services to adult immigrants with serious and persistent mental 
279.25 	illness who are members of the same ethnic group as the case manager if the person:
279.26 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
279.27 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
279.28 	limited to, social work, psychology, or nursing from an accredited college or university;
279.29 	(2) completes 40 hours of training as specified in this subdivision; and
279.30 	(3) receives clinical supervision at least once a week until the requirements of this 
279.31 	subdivision are met.

280.1 	Sec. 3. Minnesota Statutes 2024, section 245.4661, subdivision 9, is amended to read:
280.2 		Subd. 9.Services and programs. (a) The following three distinct grant programs are 
280.3 	funded under this section:
280.4 	(1) mental health crisis services;
280.5 	(2) housing with supports for adults with serious mental illness; and
280.6 	(3) projects for assistance in transitioning from homelessness (PATH program).
280.7 	(b) In addition, the following are eligible for grant funds:
280.8 	(1) community education and prevention;
280.9 	(2) client outreach;
280.10 	(3) early identification and intervention;
280.11 	(4) adult outpatient diagnostic assessment and psychological testing;
280.12 	(5) peer support services;
280.13 	(6) community support program services (CSP);
280.14 	(7) adult residential crisis stabilization;
280.15 	(8) supported employment;
280.16 	(9) assertive community treatment (ACT);
280.17 	(10) housing subsidies;
280.18 	(11) basic living, social skills, and community intervention;
280.19 	(12) emergency response services;
280.20 	(13) adult outpatient psychotherapy;
280.21 	(14) adult outpatient medication management;
280.22 	(15) adult mobile crisis services, including the purchase and renovation of vehicles by 
280.23 	mobile crisis teams in order to provide protected transport under section 256B.0625, 
280.24 	subdivision 17, paragraph (l), clause (6);
280.25 	(16) adult day treatment;
280.26 	(17) partial hospitalization;
280.27 	(18) adult residential treatment;
280.28 	(19) adult mental health targeted case management; and
281.1 	(20) transportation.

281.2 	Sec. 4. Minnesota Statutes 2024, section 245.469, is amended to read:
281.3 	245.469 EMERGENCY SERVICES.
281.4 		Subdivision 1.Availability of emergency services. (a) County boards must provide or 
281.5 	contract for enough emergency services within the county to meet the needs of adults, 
281.6 	children, and families in the county who are experiencing an emotional crisis or mental 
281.7 	illness. Clients must not be charged for services provided. Emergency service providers 
281.8 	must not delay the timely provision of emergency services to a client because of the 
281.9 	unwillingness or inability of the client to pay for services meet the qualifications under 
281.10 	section 256B.0624, subdivision 4. Emergency services must include assessment, crisis 
281.11 	intervention, and appropriate case disposition. Emergency services must:
281.12 	(1) promote the safety and emotional stability of each client;
281.13 	(2) minimize further deterioration of each client;
281.14 	(3) help each client to obtain ongoing care and treatment;
281.15 	(4) prevent placement in settings that are more intensive, costly, or restrictive than 
281.16 	necessary and appropriate to meet client needs; and
281.17 	(5) provide support, psychoeducation, and referrals to each client's family members, 
281.18 	service providers, and other third parties on behalf of the client in need of emergency 
281.19 	services.
281.20 	(b) If a county provides engagement services under section 253B.041, the county's 
281.21 	emergency service providers must refer clients to engagement services when the client 
281.22 	meets the criteria for engagement services.
281.23 		Subd. 2.Specific requirements. (a) The county board shall require that all service 
281.24 	providers of emergency services to adults or children with mental illness provide immediate 
281.25 	direct access to a mental health professional during regular business hours. For evenings, 
281.26 	weekends, and holidays, the service may be by direct toll-free telephone access to a mental 
281.27 	health professional, clinical trainee, or mental health practitioner.
281.28 	(b) The commissioner may waive the requirement in paragraph (a) that the evening, 
281.29 	weekend, and holiday service be provided by a mental health professional, clinical trainee, 
281.30 	or mental health practitioner if the county documents that:
281.31 	(1) mental health professionals, clinical trainees, or mental health practitioners are 
281.32 	unavailable to provide this service;
282.1 	(2) services are provided by a designated person with training in human services who 
282.2 	receives treatment supervision from a mental health professional; and
282.3 	(3) the service provider is not also the provider of fire and public safety emergency 
282.4 	services.
282.5 	(c) The commissioner may waive the requirement in paragraph (b), clause (3), that the 
282.6 	evening, weekend, and holiday service not be provided by the provider of fire and public 
282.7 	safety emergency services if:
282.8 	(1) every person who will be providing the first telephone contact has received at least 
282.9 	eight hours of training on emergency mental health services approved by the commissioner;
282.10 	(2) every person who will be providing the first telephone contact will annually receive 
282.11 	at least four hours of continued training on emergency mental health services approved by 
282.12 	the commissioner;
282.13 	(3) the local social service agency has provided public education about available 
282.14 	emergency mental health services and can assure potential users of emergency services that 
282.15 	their calls will be handled appropriately;
282.16 	(4) the local social service agency agrees to provide the commissioner with accurate 
282.17 	data on the number of emergency mental health service calls received;
282.18 	(5) the local social service agency agrees to monitor the frequency and quality of 
282.19 	emergency services; and
282.20 	(6) the local social service agency describes how it will comply with paragraph (d).
282.21 	(d) Whenever emergency service during nonbusiness hours is provided by anyone other 
282.22 	than a mental health professional, a mental health professional must be available on call for 
282.23 	an emergency assessment and crisis intervention services, and must be available for at least 
282.24 	telephone consultation within 30 minutes.
282.25 		Subd. 3.Mental health crisis services. The commissioner of human services shall 
282.26 	increase access to mental health crisis services for children and adults. In order to increase 
282.27 	access, the commissioner must:
282.28 	(1) develop a central phone number where calls can be routed to the appropriate crisis 
282.29 	services promote the 988 Lifeline;
282.30 	(2) provide telephone consultation 24 hours a day to mobile crisis teams who are serving 
282.31 	people with traumatic brain injury or intellectual disabilities who are experiencing a mental 
282.32 	health crisis;
283.1 	(3) expand crisis services across the state, including rural areas of the state and examining 
283.2 	access per population;
283.3 	(4) establish and implement state standards and requirements for crisis services as outlined 
283.4 	in section 256B.0624; and
283.5 	(5) provide grants to adult mental health initiatives, counties, tribes, or community mental 
283.6 	health providers to establish new mental health crisis residential service capacity.
283.7 	Priority will be given to regions that do not have a mental health crisis residential services 
283.8 	program, do not have an inpatient psychiatric unit within the region, do not have an inpatient 
283.9 	psychiatric unit within 90 miles, or have a demonstrated need based on the number of crisis 
283.10 	residential or intensive residential treatment beds available to meet the needs of the residents 
283.11 	in the region. At least 50 percent of the funds must be distributed to programs in rural 
283.12 	Minnesota. Grant funds may be used for start-up costs, including but not limited to 
283.13 	renovations, furnishings, and staff training. Grant applications shall provide details on how 
283.14 	the intended service will address identified needs and shall demonstrate collaboration with 
283.15 	crisis teams, other mental health providers, hospitals, and police.

283.16 	Sec. 5. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
283.17 		Subd. 4.Case management service provider. (a) "Case management service provider" 
283.18 	means a case manager or case manager associate employed by the county or other entity 
283.19 	authorized by the county board to provide case management services specified in subdivision 
283.20 	3 for the child with severe emotional disturbance and the child's family.
283.21 	(b) A case manager must:
283.22 	(1) have experience and training in working with children;
283.23 	(2) be a mental health practitioner under section 245I.04, subdivision 4, or have at least 
283.24 	a bachelor's degree in one of the behavioral sciences or a related field including, but not 
283.25 	limited to, social work, psychology, or nursing from an accredited college or university or 
283.26 	meet the requirements of paragraph (d);
283.27 	(3) have experience and training in identifying and assessing a wide range of children's 
283.28 	needs;
283.29 	(4) be knowledgeable about local community resources and how to use those resources 
283.30 	for the benefit of children and their families; and
283.31 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
283.32 	and (g), as applicable.
284.1 	(c) A case manager may be a member of any professional discipline that is part of the 
284.2 	local system of care for children established by the county board.
284.3 	(d) A case manager without a bachelor's degree who is not a mental health practitioner 
284.4 	and does not have a bachelor's degree or who has a bachelor's degree that is not in one of 
284.5 	the behavioral sciences or related fields must meet one of the requirements in clauses (1) 
284.6 	to (3) (5):
284.7 	(1) have three or four years of experience as a case manager associate;
284.8 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
284.9 	training in psychiatry and work experience consisting of community interaction and 
284.10 	involvement or community discharge planning in a mental health setting totaling three years; 
284.11 	or
284.12 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
284.13 	Services waiver provision and meets the continuing education, supervision, and mentoring 
284.14 	requirements in this section.;
284.15 	(4) prior to direct service delivery, complete at least 80 hours of specific training on the 
284.16 	characteristics and needs of children with severe emotional disturbance, consistent with 
284.17 	national practices standards; or
284.18 	(5) prior to direct service delivery, demonstrate competency in practice and knowledge 
284.19 	of the characteristics and needs of children with severe emotional disturbance, consistent 
284.20 	with national practices standards.
284.21 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
284.22 	of mental health services to children must receive regular ongoing supervision and clinical 
284.23 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
284.24 	supervision regarding individual service delivery with a case management supervisor. The 
284.25 	other 26 hours of supervision may be provided by a case manager with two years of 
284.26 	experience. Group supervision may not constitute more than one-half of the required 
284.27 	supervision hours.
284.28 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
284.29 	mental health services to children with emotional disturbance must:
284.30 	(1) begin 40 hours of training approved by the commissioner of human services in case 
284.31 	management skills and in the characteristics and needs of children with severe emotional 
284.32 	disturbance before beginning to provide case management services; and
285.1 	(2) receive clinical supervision regarding individual service delivery from a mental 
285.2 	health professional at least one hour each week until the requirement of 2,000 hours of 
285.3 	experience is met.
285.4 	(g) A case manager who is not licensed, registered, or certified by a health-related 
285.5 	licensing board must receive 30 hours of continuing education and training in severe 
285.6 	emotional disturbance and mental health services every two years.
285.7 	(h) Clinical supervision must be documented in the child's record. When the case manager 
285.8 	is not a mental health professional, the county board must provide or contract for needed 
285.9 	clinical supervision.
285.10 	(i) The county board must ensure that the case manager has the freedom to access and 
285.11 	coordinate the services within the local system of care that are needed by the child.
285.12 	(j) A case manager associate (CMA) must:
285.13 	(1) work under the direction of a case manager or case management supervisor;
285.14 	(2) be at least 21 years of age;
285.15 	(3) have at least a high school diploma or its equivalent; and
285.16 	(4) meet one of the following criteria:
285.17 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
285.18 	(ii) be a registered nurse without a bachelor's degree;
285.19 	(iii) have three years of life experience as a primary caregiver to a child with serious 
285.20 	emotional disturbance as defined in subdivision 6 within the previous ten years;
285.21 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
285.22 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
285.23 	services to children with emotional disturbances; hours worked as a mental health behavioral 
285.24 	aide I or II under section 256B.0943, subdivision 7, may count toward the 6,000 hours of 
285.25 	supervised work experience.
285.26 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
285.27 	after four years of supervised work experience as a case manager associate. Individuals 
285.28 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
285.29 	experience as a case manager associate.
285.30 	(k) Case manager associates must meet the following supervision, mentoring, and 
285.31 	continuing education requirements;
286.1 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
286.2 	(2) receive at least 40 hours of continuing education in severe emotional disturbance 
286.3 	and mental health service annually; and
286.4 	(3) receive at least five hours of mentoring per week from a case management mentor. 
286.5 	A "case management mentor" means a qualified, practicing case manager or case management 
286.6 	supervisor who teaches or advises and provides intensive training and clinical supervision 
286.7 	to one or more case manager associates. Mentoring may occur while providing direct services 
286.8 	to consumers in the office or in the field and may be provided to individuals or groups of 
286.9 	case manager associates. At least two mentoring hours per week must be individual and 
286.10 	face-to-face.
286.11 	(l) A case management supervisor must meet the criteria for a mental health professional 
286.12 	as specified in subdivision 27.
286.13 	(m) An immigrant who does not have the qualifications specified in this subdivision 
286.14 	may provide case management services to child immigrants with severe emotional 
286.15 	disturbance of the same ethnic group as the immigrant if the person:
286.16 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
286.17 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
286.18 	or university;
286.19 	(2) completes 40 hours of training as specified in this subdivision; and
286.20 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
286.21 	a bachelor's degree and 2,000 hours of supervised experience are met.

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

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

287.1 	Sec. 7. Minnesota Statutes 2024, section 245.4881, subdivision 3, is amended to read:
287.2 		Subd. 3.Duties of case manager. (a) Upon a determination of eligibility for case 
287.3 	management services, the case manager shall develop an individual family community 
287.4 	support plan for a child as specified in subdivision 4, review the child's progress, and monitor 
287.5 	the provision of services, and if the child and parent or legal guardian consent, complete a 
287.6 	written functional assessment as defined by section 245.4871, subdivision 18a. If services 
287.7 	are to be provided in a host county that is not the county of financial responsibility, the case 
287.8 	manager shall consult with the host county and obtain a letter demonstrating the concurrence 
287.9 	of the host county regarding the provision of services.
287.10 	(b) The case manager shall note in the child's record the services needed by the child 
287.11 	and the child's family, the services requested by the family, services that are not available, 
287.12 	and the unmet needs of the child and child's family. The case manager shall note this 
287.13 	provision in the child's record.

287.14 	Sec. 8. Minnesota Statutes 2024, section 245.4901, subdivision 3, is amended to read:
287.15 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
287.16 	and related expenses may include but are not limited to:
287.17 	(1) identifying and diagnosing mental health conditions and substance use disorders of 
287.18 	students;
287.19 	(2) delivering mental health and substance use disorder treatment and services to students 
287.20 	and their families, including via telehealth consistent with section 256B.0625, subdivision 
287.21 	3b;
287.22 	(3) supporting families in meeting their child's needs, including accessing needed mental 
287.23 	health services to support the parent in caregiving and navigating health care, social service, 
287.24 	and juvenile justice systems;
287.25 	(4) providing transportation for students receiving school-linked behavioral health 
287.26 	services when school is not in session;
287.27 	(5) building the capacity of schools to meet the needs of students with mental health and 
287.28 	substance use disorder concerns, including school staff development activities for licensed 
287.29 	and nonlicensed staff; and
287.30 	(6) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
287.31 	site fees in order to deliver school-linked behavioral health services via telehealth.
288.1 	(b) Grantees shall obtain all available third-party reimbursement sources as a condition 
288.2 	of receiving a grant. For purposes of this grant program, a third-party reimbursement source 
288.3 	excludes a public school as defined in section 120A.20, subdivision 1. Grantees shall serve 
288.4 	students regardless of health coverage status or ability to pay.

288.5 	Sec. 9. [245.4904] INTERMEDIATE SCHOOL DISTRICT BEHAVIORAL HEALTH 
288.6 	GRANT PROGRAM.
288.7 		Subdivision 1.Establishment. The commissioner of human services must establish a 
288.8 	grant program to improve behavioral health outcomes for youth attending a qualifying 
288.9 	school unit and to build the capacity of schools to support student and teacher needs in the 
288.10 	classroom. For purposes of this section, "qualifying school unit" means an intermediate 
288.11 	school district organized under section 136D.01.
288.12 		Subd. 2.Eligible applicants. An eligible applicant is an intermediate school district 
288.13 	organized under section 136D.01, and a partner entity or provider that has demonstrated 
288.14 	capacity to serve the youth identified in subdivision 1 that is:
288.15 	(1) a mental health clinic certified under section 245I.20;
288.16 	(2) a community mental health center under section 256B.0625, subdivision 5;
288.17 	(3) an Indian health service facility or a facility owned and operated by a Tribe or Tribal 
288.18 	organization operating under United States Code, title 25, section 5321;
288.19 	(4) a provider of children's therapeutic services and supports as defined in section 
288.20 	256B.0943;
288.21 	(5) enrolled in medical assistance as a mental health or substance use disorder provider 
288.22 	agency and employs at least two full-time equivalent mental health professionals qualified 
288.23 	according to section 245I.04, subdivision 2, or two alcohol and drug counselors licensed or 
288.24 	exempt from licensure under chapter 148F who are qualified to provide clinical services to 
288.25 	children and families;
288.26 	(6) licensed under chapter 245G and in compliance with the applicable requirements in 
288.27 	chapters 245A, 245C, and 260E; section 626.557; and Minnesota Rules, chapter 9544; or
288.28 	(7) a licensed professional in private practice as defined in section 245G.01, subdivision 
288.29 	17, who meets the requirements of section 254B.05, subdivision 1, paragraph (b).
288.30 		Subd. 3.Allowable grant activities and related expenses. (a) Allowable grant activities 
288.31 	and related expenses include but are not limited to:
288.32 	(1) identifying mental health conditions and substance use disorders of students;
289.1 	(2) delivering mental health and substance use disorder treatment and supportive services 
289.2 	to students and their families within the classroom, including via telehealth consistent with 
289.3 	section 256B.0625, subdivision 3b;
289.4 	(3) delivering therapeutic interventions and customizing an array of supplementary 
289.5 	learning experiences for students;
289.6 	(4) supporting families in meeting their child's needs, including navigating health care, 
289.7 	social service, and juvenile justice systems;
289.8 	(5) providing transportation for students receiving behavioral health services when school 
289.9 	is not in session;
289.10 	(6) building the capacity of schools to meet the needs of students with mental health and 
289.11 	substance use disorder concerns, including school staff development activities for licensed 
289.12 	and nonlicensed staff; and
289.13 	(7) purchasing equipment, connection charges, on-site coordination, set-up fees, and 
289.14 	site fees in order to deliver school-linked behavioral health services via telehealth.
289.15 	(b) Grantees must obtain all available third-party reimbursement sources as a condition 
289.16 	of receiving grant funds. For purposes of this grant program, a third-party reimbursement 
289.17 	source does not include a public school as defined in section 120A.20, subdivision 1. Grantees 
289.18 	shall serve students regardless of health coverage status or ability to pay.
289.19 		Subd. 4.Calculating the share of the appropriation. (a) Grants must be awarded to 
289.20 	qualifying school units proportionately.
289.21 	(b) The commissioner must calculate the share of the appropriation to be used in each 
289.22 	qualifying school unit by multiplying the total appropriation going to the grantees by the 
289.23 	qualifying school unit's average daily membership in a setting of federal instructional level 
289.24 	4 or higher and then dividing by the total average daily membership in a setting of federal 
289.25 	instructional level 4 or higher for the same year for all qualifying school units.
289.26 		Subd. 5.Data collection and outcome measurement. Grantees must provide data to 
289.27 	the commissioner for the purpose of evaluating the Intermediate School District Behavioral 
289.28 	Health Innovation grant program. The commissioner must consult with grantees to develop 
289.29 	outcome measures for program capacity and performance.

289.30 	Sec. 10. Minnesota Statutes 2024, section 245.4907, subdivision 3, is amended to read:
289.31 		Subd. 3.Allowable grant activities. Grantees must use grant funding to provide training 
289.32 	for mental health certified family peer specialists specialist candidates and continuing 
290.1 	education to certified family peer specialists as specified in section 256B.0616, subdivision 
290.2 	5.

290.3 	Sec. 11. Minnesota Statutes 2024, section 245.50, subdivision 3, is amended to read:
290.4 		Subd. 3.Exceptions. A contract may not be entered into under this section for services 
290.5 	to persons who:
290.6 	(1) are serving a sentence after conviction of a criminal offense;
290.7 	(2) are on probation or parole;
290.8 	(3) (2) are the subject of a presentence investigation; or
290.9 	(4) (3) have been committed involuntarily in Minnesota under chapter 253B for treatment 
290.10 	of mental illness or chemical dependency, except as provided under subdivision 5.

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

290.12 	Sec. 12. Minnesota Statutes 2024, section 245.50, is amended by adding a subdivision to 
290.13 	read:
290.14 		Subd. 6.Contract notice. A Minnesota mental health, chemical health, or detoxification 
290.15 	agency or facility entering into a contract with a bordering state under this section must, 
290.16 	within 30 days of the contract's effective date, provide the commissioner of human services 
290.17 	with a copy of the contract. If the contract is amended, the agency or facility must provide 
290.18 	the commissioner with a copy of each amendment within 30 days of the amendment's 
290.19 	effective date.

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

290.21 	Sec. 13. Minnesota Statutes 2024, section 245I.05, subdivision 3, is amended to read:
290.22 		Subd. 3.Initial training. (a) A staff person must receive training about:
290.23 	(1) vulnerable adult maltreatment under section 245A.65, subdivision 3; and
290.24 	(2) the maltreatment of minor reporting requirements and definitions in chapter 260E
290.25 	within 72 hours of first providing direct contact services to a client.
290.26 	(b) Before providing direct contact services to a client, a staff person must receive training 
290.27 	about:
290.28 	(1) client rights and protections under section 245I.12;
291.1 	(2) the Minnesota Health Records Act, including client confidentiality, family engagement 
291.2 	under section 144.294, and client privacy;
291.3 	(3) emergency procedures that the staff person must follow when responding to a fire, 
291.4 	inclement weather, a report of a missing person, and a behavioral or medical emergency;
291.5 	(4) specific activities and job functions for which the staff person is responsible, including 
291.6 	the license holder's program policies and procedures applicable to the staff person's position;
291.7 	(5) professional boundaries that the staff person must maintain; and
291.8 	(6) specific needs of each client to whom the staff person will be providing direct contact 
291.9 	services, including each client's developmental status, cognitive functioning, and physical 
291.10 	and mental abilities.
291.11 	(c) Before providing direct contact services to a client, a mental health rehabilitation 
291.12 	worker, mental health behavioral aide, or mental health practitioner required to receive the 
291.13 	training according to section 245I.04, subdivision 4, must receive 30 hours of training about:
291.14 	(1) mental illnesses;
291.15 	(2) client recovery and resiliency;
291.16 	(3) mental health de-escalation techniques;
291.17 	(4) co-occurring mental illness and substance use disorders; and
291.18 	(5) psychotropic medications and medication side effects, including tardive dyskinesia.
291.19 	(d) Within 90 days of first providing direct contact services to an adult client, mental 
291.20 	health practitioner, mental health certified peer specialist, or mental health rehabilitation 
291.21 	worker must receive training about:
291.22 	(1) trauma-informed care and secondary trauma;
291.23 	(2) person-centered individual treatment plans, including seeking partnerships with 
291.24 	family and other natural supports;
291.25 	(3) co-occurring substance use disorders; and
291.26 	(4) culturally responsive treatment practices.
291.27 	(e) Within 90 days of first providing direct contact services to a child client, mental 
291.28 	health practitioner, mental health certified family peer specialist, mental health certified 
291.29 	peer specialist, or mental health behavioral aide must receive training about the topics in 
291.30 	clauses (1) to (5). This training must address the developmental characteristics of each child 
292.1 	served by the license holder and address the needs of each child in the context of the child's 
292.2 	family, support system, and culture. Training topics must include:
292.3 	(1) trauma-informed care and secondary trauma, including adverse childhood experiences 
292.4 	(ACEs);
292.5 	(2) family-centered treatment plan development, including seeking partnership with a 
292.6 	child client's family and other natural supports;
292.7 	(3) mental illness and co-occurring substance use disorders in family systems;
292.8 	(4) culturally responsive treatment practices; and
292.9 	(5) child development, including cognitive functioning, and physical and mental abilities.
292.10 	(f) For a mental health behavioral aide, the training under paragraph (e) must include 
292.11 	parent team training using a curriculum approved by the commissioner.

292.12 	Sec. 14. Minnesota Statutes 2024, section 245I.05, subdivision 5, is amended to read:
292.13 		Subd. 5.Additional training for medication administration. (a) Prior to administering 
292.14 	medications to a client under delegated authority or observing a client self-administer 
292.15 	medications, a staff person who is not a licensed prescriber, registered nurse, or licensed 
292.16 	practical nurse qualified under section 148.171, subdivision 8, must receive training about 
292.17 	psychotropic medications, side effects including tardive dyskinesia, and medication 
292.18 	management.
292.19 	(b) Prior to administering medications to a client under delegated authority, a staff person 
292.20 	must successfully complete a:
292.21 	(1) medication administration training program for unlicensed personnel through an 
292.22 	accredited Minnesota postsecondary educational institution with completion of the course 
292.23 	documented in writing and placed in the staff person's personnel file; or
292.24 	(2) formalized training program taught by a registered nurse or licensed prescriber that 
292.25 	is offered by the license holder. A staff person's successful completion of the formalized 
292.26 	training program must include direct observation of the staff person to determine the staff 
292.27 	person's areas of competency.

292.28 	Sec. 15. Minnesota Statutes 2024, section 245I.06, subdivision 3, is amended to read:
292.29 		Subd. 3.Treatment supervision and direct observation of mental health 
292.30 	rehabilitation workers and mental health behavioral aides. (a) A mental health behavioral 
292.31 	aide or a mental health rehabilitation worker must receive direct observation from a mental 
293.1 	health professional, clinical trainee, certified rehabilitation specialist, or mental health 
293.2 	practitioner while the mental health behavioral aide or mental health rehabilitation worker 
293.3 	provides treatment services to clients, no less than twice per month for the first six months 
293.4 	of employment and once per month thereafter. The staff person performing the direct 
293.5 	observation must approve of the progress note for the observed treatment service.
293.6 	(b) For a mental health rehabilitation worker qualified under section 245I.04, subdivision 
293.7 	14, paragraph (a), clause (2), item (i), treatment supervision in the first 2,000 hours of work 
293.8 	must at a minimum consist of:
293.9 	(1) monthly individual supervision; and
293.10 	(2) direct observation twice per month.

293.11 	Sec. 16. Minnesota Statutes 2024, section 245I.11, subdivision 5, is amended to read:
293.12 		Subd. 5.Medication administration in residential programs. If a license holder is 
293.13 	licensed as a residential program, the license holder must:
293.14 	(1) assess and document each client's ability to self-administer medication. In the 
293.15 	assessment, the license holder must evaluate the client's ability to: (i) comply with prescribed 
293.16 	medication regimens; and (ii) store the client's medications safely and in a manner that 
293.17 	protects other individuals in the facility. Through the assessment process, the license holder 
293.18 	must assist the client in developing the skills necessary to safely self-administer medication;
293.19 	(2) monitor the effectiveness of medications, side effects of medications, and adverse 
293.20 	reactions to medications, including symptoms and signs of tardive dyskinesia, for each 
293.21 	client. The license holder must address and document any concerns about a client's 
293.22 	medications;
293.23 	(3) ensure that no staff person or client gives a legend drug supply for one client to 
293.24 	another client;
293.25 	(4) have policies and procedures for: (i) keeping a record of each client's medication 
293.26 	orders; (ii) keeping a record of any incident of deferring a client's medications; (iii) 
293.27 	documenting any incident when a client's medication is omitted; and (iv) documenting when 
293.28 	a client refuses to take medications as prescribed; and
293.29 	(5) document and track medication errors, document whether the license holder notified 
293.30 	anyone about the medication error, determine if the license holder must take any follow-up 
293.31 	actions, and identify the staff persons who are responsible for taking follow-up actions.

294.1 	Sec. 17. Minnesota Statutes 2024, section 245I.12, subdivision 5, is amended to read:
294.2 		Subd. 5.Client grievances. (a) The license holder must have a grievance procedure 
294.3 	that:
294.4 	(1) describes to clients how the license holder will meet the requirements in this 
294.5 	subdivision; and
294.6 	(2) contains the current public contact information of the Department of Human Services, 
294.7 	Licensing Division; the Office of Ombudsman for Mental Health and Developmental 
294.8 	Disabilities; the Department of Health, Office of Health Facilities Complaints; and all 
294.9 	applicable health-related licensing boards.
294.10 	(b) On the day of each client's admission, the license holder must explain the grievance 
294.11 	procedure to the client.
294.12 	(c) The license holder must:
294.13 	(1) post the grievance procedure in a place visible to clients and provide a copy of the 
294.14 	grievance procedure upon request;
294.15 	(2) allow clients, former clients, and their authorized representatives to submit a grievance 
294.16 	to the license holder;
294.17 	(3) within three business days of receiving a client's grievance, acknowledge in writing 
294.18 	that the license holder received the client's grievance. If applicable, the license holder must 
294.19 	include a notice of the client's separate appeal rights for a managed care organization's 
294.20 	reduction, termination, or denial of a covered service;
294.21 	(4) within 15 business days of receiving a client's grievance, provide a written final 
294.22 	response to the client's grievance containing the license holder's official response to the 
294.23 	grievance; and
294.24 	(5) allow the client to bring a grievance to the person with the highest level of authority 
294.25 	in the program.
294.26 	(d) Clients may voice grievances and recommend changes in policies and services to 
294.27 	staff and others of their choice, free from restraint, interference, coercion, discrimination, 
294.28 	or reprisal, including threat of discharge.

295.1 	Sec. 18. Minnesota Statutes 2024, section 245I.23, subdivision 7, is amended to read:
295.2 		Subd. 7.Intensive residential treatment services assessment and treatment 
295.3 	planning. (a) Within 12 hours of a client's admission, the license holder must evaluate and 
295.4 	document the client's immediate needs, including the client's:
295.5 	(1) health and safety, including the client's need for crisis assistance;
295.6 	(2) responsibilities for children, family and other natural supports, and employers; and
295.7 	(3) housing and legal issues.
295.8 	(b) Within 24 hours of the client's admission, the license holder must complete an initial 
295.9 	treatment plan for the client. The license holder must:
295.10 	(1) base the client's initial treatment plan on the client's referral information and an 
295.11 	assessment of the client's immediate needs;
295.12 	(2) consider crisis assistance strategies that have been effective for the client in the past;
295.13 	(3) identify the client's initial treatment goals, measurable treatment objectives, and 
295.14 	specific interventions that the license holder will use to help the client engage in treatment;
295.15 	(4) identify the participants involved in the client's treatment planning. The client must 
295.16 	be a participant; and
295.17 	(5) ensure that a treatment supervisor approves of the client's initial treatment plan if a 
295.18 	mental health practitioner or clinical trainee completes the client's treatment plan, 
295.19 	notwithstanding section 245I.08, subdivision 3.
295.20 	(c) According to section 245A.65, subdivision 2, paragraph (b), the license holder must 
295.21 	complete an individual abuse prevention plan as part of a client's initial treatment plan.
295.22 	(d) Within five ten days of the client's admission and again within 60 days after the 
295.23 	client's admission, the license holder must complete a level of care assessment of the client. 
295.24 	If the license holder determines that a client does not need a medically monitored level of 
295.25 	service, a treatment supervisor must document how the client's admission to and continued 
295.26 	services in intensive residential treatment services are medically necessary for the client.
295.27 	(e) Within ten days of a client's admission, the license holder must complete or review 
295.28 	and update the client's standard diagnostic assessment.
295.29 	(f) Within ten days of a client's admission, the license holder must complete the client's 
295.30 	individual treatment plan, notwithstanding section 245I.10, subdivision 8. Within 40 days 
295.31 	after the client's admission and again within 70 days after the client's admission, the license 
296.1 	holder must update the client's individual treatment plan. The license holder must focus the 
296.2 	client's treatment planning on preparing the client for a successful transition from intensive 
296.3 	residential treatment services to another setting. In addition to the required elements of an 
296.4 	individual treatment plan under section 245I.10, subdivision 8, the license holder must 
296.5 	identify the following information in the client's individual treatment plan: (1) the client's 
296.6 	referrals and resources for the client's health and safety; and (2) the staff persons who are 
296.7 	responsible for following up with the client's referrals and resources. If the client does not 
296.8 	receive a referral or resource that the client needs, the license holder must document the 
296.9 	reason that the license holder did not make the referral or did not connect the client to a 
296.10 	particular resource. The license holder is responsible for determining whether additional 
296.11 	follow-up is required on behalf of the client.
296.12 	(g) Within 30 days of the client's admission, the license holder must complete a functional 
296.13 	assessment of the client. Within 60 days after the client's admission, the license holder must 
296.14 	update the client's functional assessment to include any changes in the client's functioning 
296.15 	and symptoms.
296.16 	(h) For a client with a current substance use disorder diagnosis and for a client whose 
296.17 	substance use disorder screening in the client's standard diagnostic assessment indicates the 
296.18 	possibility that the client has a substance use disorder, the license holder must complete a 
296.19 	written assessment of the client's substance use within 30 days of the client's admission. In 
296.20 	the substance use assessment, the license holder must: (1) evaluate the client's history of 
296.21 	substance use, relapses, and hospitalizations related to substance use; (2) assess the effects 
296.22 	of the client's substance use on the client's relationships including with family member and 
296.23 	others; (3) identify financial problems, health issues, housing instability, and unemployment; 
296.24 	(4) assess the client's legal problems, past and pending incarceration, violence, and 
296.25 	victimization; and (5) evaluate the client's suicide attempts, noncompliance with taking 
296.26 	prescribed medications, and noncompliance with psychosocial treatment.
296.27 	(i) On a weekly basis, a mental health professional or certified rehabilitation specialist 
296.28 	must review each client's treatment plan and individual abuse prevention plan. The license 
296.29 	holder must document in the client's file each weekly review of the client's treatment plan 
296.30 	and individual abuse prevention plan.

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

297.3 	Sec. 20. Minnesota Statutes 2024, section 256B.0616, subdivision 5, is amended to read:
297.4 		Subd. 5.Certified family peer specialist training and certification. (a) The 
297.5 	commissioner shall develop a or approve the use of an existing training and certification 
297.6 	process for certified certifying family peer specialists. The Family peer specialist candidates 
297.7 	must have raised or be currently raising a child with a mental illness, have had experience 
297.8 	navigating the children's mental health system, and must demonstrate leadership and advocacy 
297.9 	skills and a strong dedication to family-driven and family-focused services. The training 
297.10 	curriculum must teach participating family peer specialists specialist candidates specific 
297.11 	skills relevant to providing peer support to other parents and youth.
297.12 	(b) In addition to initial training and certification, the commissioner shall develop ongoing 
297.13 	continuing educational workshops on pertinent issues related to family peer support 
297.14 	counseling.
297.15 	(c) Initial training leading to certification as a family peer specialist and continuing 
297.16 	education for certified family peer specialists must be delivered by the commissioner or a 
297.17 	third-party organization approved by the commissioner. An approved third-party organization 
297.18 	may also provide continuing education of certified family peer specialists.

297.19 	Sec. 21. Minnesota Statutes 2024, section 256B.0622, subdivision 3a, is amended to read:
297.20 		Subd. 3a.Provider certification and contract requirements for assertive community 
297.21 	treatment. (a) The assertive community treatment provider must have each ACT team be 
297.22 	certified by the state following the certification process and procedures developed by the 
297.23 	commissioner. The certification process determines whether the ACT team meets the 
297.24 	standards for assertive community treatment under this section, the standards in chapter 
297.25 	245I as required in section 245I.011, subdivision 5, and minimum program fidelity standards 
297.26 	as measured by a nationally recognized fidelity tool approved by the commissioner. 
297.27 	Recertification must occur at least every three years.
297.28 	(b) An ACT team certified under this subdivision must meet the following standards:
297.29 	(1) have capacity to recruit, hire, manage, and train required ACT team members;
297.30 	(2) have adequate administrative ability to ensure availability of services;
297.31 	(3) ensure flexibility in service delivery to respond to the changing and intermittent care 
297.32 	needs of a client as identified by the client and the individual treatment plan;
298.1 	(4) keep all necessary records required by law;
298.2 	(5) be an enrolled Medicaid provider; and
298.3 	(6) establish and maintain a quality assurance plan to determine specific service outcomes 
298.4 	and the client's satisfaction with services.; and
298.5 	(7) ensure that overall treatment supervision to the ACT team is provided by a qualified 
298.6 	member of the ACT team and is available during and after regular business hours and on 
298.7 	weekends and holidays.
298.8 	(c) The commissioner may intervene at any time and decertify an ACT team with cause. 
298.9 	The commissioner shall establish a process for decertification of an ACT team and shall 
298.10 	require corrective action, medical assistance repayment, or decertification of an ACT team 
298.11 	that no longer meets the requirements in this section or that fails to meet the clinical quality 
298.12 	standards or administrative standards provided by the commissioner in the application and 
298.13 	certification process. The decertification is subject to appeal to the state.

298.14 	Sec. 22. Minnesota Statutes 2024, section 256B.0622, subdivision 7a, is amended to read:
298.15 		Subd. 7a.Assertive community treatment team staff requirements and roles. (a) 
298.16 	The required treatment staff qualifications and roles for an ACT team are:
298.17 	(1) the team leader:
298.18 	(i) shall must be a mental health professional. Individuals who are not licensed but who 
298.19 	are eligible for licensure and are otherwise qualified may also fulfill this role, clinical trainee, 
298.20 	or mental health practitioner;
298.21 	(ii) must be an active member of the ACT team and provide some direct services to 
298.22 	clients;
298.23 	(iii) must be a single full-time staff member, dedicated to the ACT team, who is 
298.24 	responsible for overseeing the administrative operations of the team and supervising team 
298.25 	members to ensure delivery of best and ethical practices; and
298.26 	(iv) must be available to ensure that overall treatment supervision to the ACT team is 
298.27 	available after regular business hours and on weekends and holidays and is provided by a 
298.28 	qualified member of the ACT team;
298.29 	(2) the psychiatric care provider:
298.30 	(i) must be a mental health professional permitted to prescribe psychiatric medications 
298.31 	as part of the mental health professional's scope of practice. The psychiatric care provider 
299.1 	must have demonstrated clinical experience working with individuals with serious and 
299.2 	persistent mental illness;
299.3 	(ii) shall collaborate with the team leader in sharing overall clinical responsibility for 
299.4 	screening and admitting clients; monitoring clients' treatment and team member service 
299.5 	delivery; educating staff on psychiatric and nonpsychiatric medications, their side effects, 
299.6 	and health-related conditions; actively collaborating with nurses; and helping provide 
299.7 	treatment supervision to the team;
299.8 	(iii) shall fulfill the following functions for assertive community treatment clients: 
299.9 	provide assessment and treatment of clients' symptoms and response to medications, including 
299.10 	side effects; provide brief therapy to clients; provide diagnostic and medication education 
299.11 	to clients, with medication decisions based on shared decision making; monitor clients' 
299.12 	nonpsychiatric medical conditions and nonpsychiatric medications; and conduct home and 
299.13 	community visits;
299.14 	(iv) shall serve as the point of contact for psychiatric treatment if a client is hospitalized 
299.15 	for mental health treatment and shall communicate directly with the client's inpatient 
299.16 	psychiatric care providers to ensure continuity of care;
299.17 	(v) shall have a minimum full-time equivalency that is prorated at a rate of 16 hours per 
299.18 	50 clients. Part-time psychiatric care providers shall have designated hours to work on the 
299.19 	team, with sufficient blocks of time on consistent days to carry out the provider's clinical, 
299.20 	supervisory, and administrative responsibilities. No more than two psychiatric care providers 
299.21 	may share this role; and
299.22 	(vi) shall provide psychiatric backup to the program after regular business hours and on 
299.23 	weekends and holidays. The psychiatric care provider may delegate this duty to another 
299.24 	qualified psychiatric provider;
299.25 	(3) the nursing staff:
299.26 	(i) shall consist of one to three registered nurses or advanced practice registered nurses, 
299.27 	of whom at least one has a minimum of one-year experience working with adults with 
299.28 	serious mental illness and a working knowledge of psychiatric medications. No more than 
299.29 	two individuals can share a full-time equivalent position;
299.30 	(ii) are responsible for managing medication, administering and documenting medication 
299.31 	treatment, and managing a secure medication room; and
299.32 	(iii) shall develop strategies, in collaboration with clients, to maximize taking medications 
299.33 	as prescribed; screen and monitor clients' mental and physical health conditions and 
300.1 	medication side effects; engage in health promotion, prevention, and education activities; 
300.2 	communicate and coordinate services with other medical providers; facilitate the development 
300.3 	of the individual treatment plan for clients assigned; and educate the ACT team in monitoring 
300.4 	psychiatric and physical health symptoms and medication side effects;
300.5 	(4) the co-occurring disorder specialist:
300.6 	(i) shall be a full-time equivalent co-occurring disorder specialist who has received 
300.7 	specific training on co-occurring disorders that is consistent with national evidence-based 
300.8 	practices. The training must include practical knowledge of common substances and how 
300.9 	they affect mental illnesses, the ability to assess substance use disorders and the client's 
300.10 	stage of treatment, motivational interviewing, and skills necessary to provide counseling to 
300.11 	clients at all different stages of change and treatment. The co-occurring disorder specialist 
300.12 	may also be an individual who is a licensed alcohol and drug counselor as described in 
300.13 	section 148F.01, subdivision 5, or a counselor who otherwise meets the training, experience, 
300.14 	and other requirements in section 245G.11, subdivision 5. No more than two co-occurring 
300.15 	disorder specialists may occupy this role; and
300.16 	(ii) shall provide or facilitate the provision of co-occurring disorder treatment to clients. 
300.17 	The co-occurring disorder specialist shall serve as a consultant and educator to fellow ACT 
300.18 	team members on co-occurring disorders;
300.19 	(5) the vocational specialist:
300.20 	(i) shall be a full-time vocational specialist who has at least one-year experience providing 
300.21 	employment services or advanced education that involved field training in vocational services 
300.22 	to individuals with mental illness. An individual who does not meet these qualifications 
300.23 	may also serve as the vocational specialist upon completing a training plan approved by the 
300.24 	commissioner;
300.25 	(ii) shall provide or facilitate the provision of vocational services to clients. The vocational 
300.26 	specialist serves as a consultant and educator to fellow ACT team members on these services; 
300.27 	and
300.28 	(iii) must not refer individuals to receive any type of vocational services or linkage by 
300.29 	providers outside of the ACT team;
300.30 	(6) the mental health certified peer specialist:
300.31 	(i) shall be a full-time equivalent. No more than two individuals can share this position. 
300.32 	The mental health certified peer specialist is a fully integrated team member who provides 
300.33 	highly individualized services in the community and promotes the self-determination and 
301.1 	shared decision-making abilities of clients. This requirement may be waived due to workforce 
301.2 	shortages upon approval of the commissioner;
301.3 	(ii) must provide coaching, mentoring, and consultation to the clients to promote recovery, 
301.4 	self-advocacy, and self-direction, promote wellness management strategies, and assist clients 
301.5 	in developing advance directives; and
301.6 	(iii) must model recovery values, attitudes, beliefs, and personal action to encourage 
301.7 	wellness and resilience, provide consultation to team members, promote a culture where 
301.8 	the clients' points of view and preferences are recognized, understood, respected, and 
301.9 	integrated into treatment, and serve in a manner equivalent to other team members;
301.10 	(7) the program administrative assistant shall be a full-time office-based program 
301.11 	administrative assistant position assigned to solely work with the ACT team, providing a 
301.12 	range of supports to the team, clients, and families; and
301.13 	(8) additional staff:
301.14 	(i) shall be based on team size. Additional treatment team staff may include mental 
301.15 	health professionals; clinical trainees; certified rehabilitation specialists; mental health 
301.16 	practitioners; or mental health rehabilitation workers. These individuals shall have the 
301.17 	knowledge, skills, and abilities required by the population served to carry out rehabilitation 
301.18 	and support functions; and
301.19 	(ii) shall be selected based on specific program needs or the population served.
301.20 	(b) Each ACT team must clearly document schedules for all ACT team members.
301.21 	(c) Each ACT team member must serve as a primary team member for clients assigned 
301.22 	by the team leader and are responsible for facilitating the individual treatment plan process 
301.23 	for those clients. The primary team member for a client is the responsible team member 
301.24 	knowledgeable about the client's life and circumstances and writes the individual treatment 
301.25 	plan. The primary team member provides individual supportive therapy or counseling, and 
301.26 	provides primary support and education to the client's family and support system.
301.27 	(d) Members of the ACT team must have strong clinical skills, professional qualifications, 
301.28 	experience, and competency to provide a full breadth of rehabilitation services. Each staff 
301.29 	member shall be proficient in their respective discipline and be able to work collaboratively 
301.30 	as a member of a multidisciplinary team to deliver the majority of the treatment, 
301.31 	rehabilitation, and support services clients require to fully benefit from receiving assertive 
301.32 	community treatment.
302.1 	(e) Each ACT team member must fulfill training requirements established by the 
302.2 	commissioner.

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

302.5 	Sec. 23. Minnesota Statutes 2024, section 256L.03, subdivision 5, is amended to read:
302.6 		Subd. 5.Cost-sharing. (a) Co-payments, coinsurance, and deductibles do not apply to 
302.7 	children under the age of 21 and to American Indians as defined in Code of Federal 
302.8 	Regulations, title 42, section 600.5.
302.9 	(b) The commissioner must adjust co-payments, coinsurance, and deductibles for covered 
302.10 	services in a manner sufficient to maintain the actuarial value of the benefit to 94 percent. 
302.11 	The cost-sharing changes described in this paragraph do not apply to eligible recipients or 
302.12 	services exempt from cost-sharing under state law. The cost-sharing changes described in 
302.13 	this paragraph shall not be implemented prior to January 1, 2016.
302.14 	(c) The cost-sharing changes authorized under paragraph (b) must satisfy the requirements 
302.15 	for cost-sharing under the Basic Health Program as set forth in Code of Federal Regulations, 
302.16 	title 42, sections 600.510 and 600.520.
302.17 	(d) Cost-sharing for prescription drugs and related medical supplies to treat chronic 
302.18 	disease must comply with the requirements of section 62Q.481.
302.19 	(e) Co-payments, coinsurance, and deductibles do not apply to additional diagnostic 
302.20 	services or testing that a health care provider determines an enrollee requires after a 
302.21 	mammogram, as specified under section 62A.30, subdivision 5.
302.22 	(f) Cost-sharing must not apply to drugs used for tobacco and nicotine cessation or to 
302.23 	tobacco and nicotine cessation services covered under section 256B.0625, subdivision 68.
302.24 	(g) Co-payments, coinsurance, and deductibles do not apply to pre-exposure prophylaxis 
302.25 	(PrEP) and postexposure prophylaxis (PEP) medications when used for the prevention or 
302.26 	treatment of the human immunodeficiency virus (HIV).
302.27 	(h) Co-payments, coinsurance, and deductibles do not apply to mobile crisis intervention, 
302.28 	as defined in section 256B.0624, subdivision 2, paragraph (d).

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

303.1 	ARTICLE 10
303.2 	CHILDREN'S MENTAL HEALTH TERMINOLOGY

303.3 	Section 1. Minnesota Statutes 2024, section 62Q.527, subdivision 1, is amended to read:
303.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
303.5 	the meanings given them.
303.6 	(b) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
303.7 	(c) (b) "Mental illness" has the meaning given in section sections245.462, subdivision 
303.8 	20, paragraph (a), and 245.4871, subdivision 15.
303.9 	(d) (c) "Health plan" has the meaning given in section 62Q.01, subdivision 3, but includes 
303.10 	the coverages described in section 62A.011, subdivision 3, clauses (7) and (10).

303.11 	Sec. 2. Minnesota Statutes 2024, section 62Q.527, subdivision 2, is amended to read:
303.12 		Subd. 2.Required coverage for antipsychotic drugs. (a) A health plan that provides 
303.13 	prescription drug coverage must provide coverage for an antipsychotic drug prescribed to 
303.14 	treat emotional disturbance or mental illness regardless of whether the drug is in the health 
303.15 	plan's drug formulary, if the health care provider prescribing the drug:
303.16 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
303.17 	151.21, that the prescription must be dispensed as communicated; and
303.18 	(2) certifies in writing to the health plan company that the health care provider has 
303.19 	considered all equivalent drugs in the health plan's drug formulary and has determined that 
303.20 	the drug prescribed will best treat the patient's condition.
303.21 	(b) The health plan is not required to provide coverage for a drug if the drug was removed 
303.22 	from the health plan's drug formulary for safety reasons.
303.23 	(c) For drugs covered under this section, no health plan company that has received a 
303.24 	certification from the health care provider as described in paragraph (a) may:
303.25 	(1) impose a special deductible, co-payment, coinsurance, or other special payment 
303.26 	requirement that the health plan does not apply to drugs that are in the health plan's drug 
303.27 	formulary; or
303.28 	(2) require written certification from the prescribing provider each time a prescription 
303.29 	is refilled or renewed that the drug prescribed will best treat the patient's condition.

304.1 	Sec. 3. Minnesota Statutes 2024, section 62Q.527, subdivision 3, is amended to read:
304.2 		Subd. 3.Continuing care. (a) Enrollees receiving a prescribed drug to treat a diagnosed 
304.3 	mental illness or emotional disturbance may continue to receive the prescribed drug for up 
304.4 	to one year without the imposition of a special deductible, co-payment, coinsurance, or 
304.5 	other special payment requirements, when a health plan's drug formulary changes or an 
304.6 	enrollee changes health plans and the medication has been shown to effectively treat the 
304.7 	patient's condition. In order to be eligible for this continuing care benefit:
304.8 	(1) the patient must have been treated with the drug for 90 days prior to a change in a 
304.9 	health plan's drug formulary or a change in the enrollee's health plan;
304.10 	(2) the health care provider prescribing the drug indicates to the dispensing pharmacist, 
304.11 	orally or in writing according to section 151.21, that the prescription must be dispensed as 
304.12 	communicated; and
304.13 	(3) the health care provider prescribing the drug certifies in writing to the health plan 
304.14 	company that the drug prescribed will best treat the patient's condition.
304.15 	(b) The continuing care benefit shall be extended annually when the health care provider 
304.16 	prescribing the drug:
304.17 	(1) indicates to the dispensing pharmacist, orally or in writing according to section 
304.18 	151.21, that the prescription must be dispensed as communicated; and
304.19 	(2) certifies in writing to the health plan company that the drug prescribed will best treat 
304.20 	the patient's condition.
304.21 	(c) The health plan company is not required to provide coverage for a drug if the drug 
304.22 	was removed from the health plan's drug formulary for safety reasons.

304.23 	Sec. 4. Minnesota Statutes 2024, section 121A.61, subdivision 3, is amended to read:
304.24 		Subd. 3.Policy components. The policy must include at least the following components:
304.25 	(a) rules governing student conduct and procedures for informing students of the rules;
304.26 	(b) the grounds for removal of a student from a class;
304.27 	(c) the authority of the classroom teacher to remove students from the classroom pursuant 
304.28 	to procedures and rules established in the district's policy;
304.29 	(d) the procedures for removal of a student from a class by a teacher, school administrator, 
304.30 	or other school district employee;
305.1 	(e) the period of time for which a student may be removed from a class, which may not 
305.2 	exceed five class periods for a violation of a rule of conduct;
305.3 	(f) provisions relating to the responsibility for and custody of a student removed from 
305.4 	a class;
305.5 	(g) the procedures for return of a student to the specified class from which the student 
305.6 	has been removed;
305.7 	(h) the procedures for notifying a student and the student's parents or guardian of 
305.8 	violations of the rules of conduct and of resulting disciplinary actions;
305.9 	(i) any procedures determined appropriate for encouraging early involvement of parents 
305.10 	or guardians in attempts to improve a student's behavior;
305.11 	(j) any procedures determined appropriate for encouraging early detection of behavioral 
305.12 	problems;
305.13 	(k) any procedures determined appropriate for referring a student in need of special 
305.14 	education services to those services;
305.15 	(l) any procedures determined appropriate for ensuring victims of bullying who respond 
305.16 	with behavior not allowed under the school's behavior policies have access to a remedial 
305.17 	response, consistent with section 121A.031;
305.18 	(m) the procedures for consideration of whether there is a need for a further assessment 
305.19 	or of whether there is a need for a review of the adequacy of a current individualized 
305.20 	education program of a student with a disability who is removed from class;
305.21 	(n) procedures for detecting and addressing chemical abuse problems of a student while 
305.22 	on the school premises;
305.23 	(o) the minimum consequences for violations of the code of conduct;
305.24 	(p) procedures for immediate and appropriate interventions tied to violations of the code;
305.25 	(q) a provision that states that a teacher, school employee, school bus driver, or other 
305.26 	agent of a district may use reasonable force in compliance with section 121A.582 and other 
305.27 	laws;
305.28 	(r) an agreement regarding procedures to coordinate crisis services to the extent funds 
305.29 	are available with the county board responsible for implementing sections 245.487 to 
305.30 	245.4889 for students with a serious emotional disturbance mental illness or other students 
305.31 	who have an individualized education program whose behavior may be addressed by crisis 
305.32 	intervention;
306.1 	(s) a provision that states a student must be removed from class immediately if the student 
306.2 	engages in assault or violent behavior. For purposes of this paragraph, "assault" has the 
306.3 	meaning given it in section 609.02, subdivision 10. The removal shall be for a period of 
306.4 	time deemed appropriate by the principal, in consultation with the teacher;
306.5 	(t) a prohibition on the use of exclusionary practices for early learners as defined in 
306.6 	section 121A.425; and
306.7 	(u) a prohibition on the use of exclusionary practices to address attendance and truancy 
306.8 	issues.

306.9 	Sec. 5. Minnesota Statutes 2024, section 128C.02, subdivision 5, is amended to read:
306.10 		Subd. 5.Rules for open enrollees. (a) The league shall adopt league rules and regulations 
306.11 	governing the athletic participation of pupils attending school in a nonresident district under 
306.12 	section 124D.03.
306.13 	(b) Notwithstanding other law or league rule or regulation to the contrary, when a student 
306.14 	enrolls in or is readmitted to a recovery-focused high school after successfully completing 
306.15 	a licensed program for treatment of alcohol or substance abuse, or mental illness, or emotional 
306.16 	disturbance, the student is immediately eligible to participate on the same basis as other 
306.17 	district students in the league-sponsored activities of the student's resident school district. 
306.18 	Nothing in this paragraph prohibits the league or school district from enforcing a league or 
306.19 	district penalty resulting from the student violating a league or district rule.
306.20 	(c) The league shall adopt league rules making a student with an individualized education 
306.21 	program who transfers from one public school to another public school as a reasonable 
306.22 	accommodation to reduce barriers to educational access immediately eligible to participate 
306.23 	in league-sponsored varsity competition on the same basis as other students in the school 
306.24 	to which the student transfers. The league also must establish guidelines, consistent with 
306.25 	this paragraph, for reviewing the 504 plan of a student who transfers between public schools 
306.26 	to determine whether the student is immediately eligible to participate in league-sponsored 
306.27 	varsity competition on the same basis as other students in the school to which the student 
306.28 	transfers.

306.29 	Sec. 6. Minnesota Statutes 2024, section 142G.02, subdivision 56, is amended to read:
306.30 		Subd. 56.Learning disabled. "Learning disabled," for purposes of an extension to the 
306.31 	60-month time limit under section 142G.42, subdivision 4, clause (3), means the person has 
306.32 	a disorder in one or more of the psychological processes involved in perceiving, 
307.1 	understanding, or using concepts through verbal language or nonverbal means. Learning 
307.2 	disabled does not include learning problems that are primarily the result of visual, hearing, 
307.3 	or motor disabilities; developmental disability; emotional disturbance; or mental illness or 
307.4 	due to environmental, cultural, or economic disadvantage.

307.5 	Sec. 7. Minnesota Statutes 2024, section 142G.27, subdivision 4, is amended to read:
307.6 		Subd. 4.Good cause exemptions for not attending orientation. (a) The county agency 
307.7 	shall not impose the sanction under section 142G.70 if it determines that the participant has 
307.8 	good cause for failing to attend orientation. Good cause exists when:
307.9 	(1) appropriate child care is not available;
307.10 	(2) the participant is ill or injured;
307.11 	(3) a family member is ill and needs care by the participant that prevents the participant 
307.12 	from attending orientation. For a caregiver with a child or adult in the household who meets 
307.13 	the disability or medical criteria for home care services under section 256B.0659, or a home 
307.14 	and community-based waiver services program under chapter 256B, or meets the criteria 
307.15 	for severe emotional disturbance serious mental illness under section 245.4871, subdivision 
307.16 	6, or for serious and persistent mental illness under section 245.462, subdivision 20, 
307.17 	paragraph (c), good cause also exists when an interruption in the provision of those services 
307.18 	occurs which prevents the participant from attending orientation;
307.19 	(4) the caregiver is unable to secure necessary transportation;
307.20 	(5) the caregiver is in an emergency situation that prevents orientation attendance;
307.21 	(6) the orientation conflicts with the caregiver's work, training, or school schedule; or
307.22 	(7) the caregiver documents other verifiable impediments to orientation attendance 
307.23 	beyond the caregiver's control.
307.24 	(b) Counties must work with clients to provide child care and transportation necessary 
307.25 	to ensure a caregiver has every opportunity to attend orientation.

307.26 	Sec. 8. Minnesota Statutes 2024, section 142G.42, subdivision 3, is amended to read:
307.27 		Subd. 3.Ill or incapacitated. (a) An assistance unit subject to the time limit in section 
307.28 	142G.40, subdivision 1, is eligible to receive months of assistance under a hardship extension 
307.29 	if the participant who reached the time limit belongs to any of the following groups:
307.30 	(1) participants who are suffering from an illness, injury, or incapacity which has been 
307.31 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
308.1 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
308.2 	suitable employment. These participants must follow the treatment recommendations of the 
308.3 	qualified professional certifying the illness, injury, or incapacity;
308.4 	(2) participants whose presence in the home is required as a caregiver because of the 
308.5 	illness, injury, or incapacity of another member in the assistance unit, a relative in the 
308.6 	household, or a foster child in the household when the illness or incapacity and the need 
308.7 	for a person to provide assistance in the home has been certified by a qualified professional 
308.8 	and is expected to continue for more than 30 days; or
308.9 	(3) caregivers with a child or an adult in the household who meets the disability or 
308.10 	medical criteria for home care services under section 256B.0651, subdivision 1, paragraph 
308.11 	(c), or a home and community-based waiver services program under chapter 256B, or meets 
308.12 	the criteria for severe emotional disturbance serious mental illness under section 245.4871, 
308.13 	subdivision 6, or for serious and persistent mental illness under section 245.462, subdivision 
308.14 	20, paragraph (c). Caregivers in this category are presumed to be prevented from obtaining 
308.15 	or maintaining suitable employment.
308.16 	(b) An assistance unit receiving assistance under a hardship extension under this 
308.17 	subdivision may continue to receive assistance as long as the participant meets the criteria 
308.18 	in paragraph (a), clause (1), (2), or (3).

308.19 	Sec. 9. Minnesota Statutes 2024, section 245.462, subdivision 4, is amended to read:
308.20 		Subd. 4.Case management service provider. (a) "Case management service provider" 
308.21 	means a case manager or case manager associate employed by the county or other entity 
308.22 	authorized by the county board to provide case management services specified in section 
308.23 	245.4711.
308.24 	(b) A case manager must:
308.25 	(1) be skilled in the process of identifying and assessing a wide range of client needs;
308.26 	(2) be knowledgeable about local community resources and how to use those resources 
308.27 	for the benefit of the client;
308.28 	(3) be a mental health practitioner as defined in section 245I.04, subdivision 4, or have 
308.29 	a bachelor's degree in one of the behavioral sciences or related fields including, but not 
308.30 	limited to, social work, psychology, or nursing from an accredited college or university. A 
308.31 	case manager who is not a mental health practitioner and who does not have a bachelor's 
308.32 	degree in one of the behavioral sciences or related fields must meet the requirements of 
308.33 	paragraph (c); and
309.1 	(4) meet the supervision and continuing education requirements described in paragraphs 
309.2 	(d), (e), and (f), as applicable.
309.3 	(c) Case managers without a bachelor's degree must meet one of the requirements in 
309.4 	clauses (1) to (3):
309.5 	(1) have three or four years of experience as a case manager associate as defined in this 
309.6 	section;
309.7 	(2) be a registered nurse without a bachelor's degree and have a combination of 
309.8 	specialized training in psychiatry and work experience consisting of community interaction 
309.9 	and involvement or community discharge planning in a mental health setting totaling three 
309.10 	years; or
309.11 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
309.12 	Service waiver provision and meet the continuing education and mentoring requirements 
309.13 	in this section.
309.14 	(d) A case manager with at least 2,000 hours of supervised experience in the delivery 
309.15 	of services to adults with mental illness must receive regular ongoing supervision and clinical 
309.16 	supervision totaling 38 hours per year of which at least one hour per month must be clinical 
309.17 	supervision regarding individual service delivery with a case management supervisor. The 
309.18 	remaining 26 hours of supervision may be provided by a case manager with two years of 
309.19 	experience. Group supervision may not constitute more than one-half of the required 
309.20 	supervision hours. Clinical supervision must be documented in the client record.
309.21 	(e) A case manager without 2,000 hours of supervised experience in the delivery of 
309.22 	services to adults with mental illness must:
309.23 	(1) receive clinical supervision regarding individual service delivery from a mental 
309.24 	health professional at least one hour per week until the requirement of 2,000 hours of 
309.25 	experience is met; and
309.26 	(2) complete 40 hours of training approved by the commissioner in case management 
309.27 	skills and the characteristics and needs of adults with serious and persistent mental illness.
309.28 	(f) A case manager who is not licensed, registered, or certified by a health-related 
309.29 	licensing board must receive 30 hours of continuing education and training in mental illness 
309.30 	and mental health services every two years.
309.31 	(g) A case manager associate (CMA) must:
309.32 	(1) work under the direction of a case manager or case management supervisor;
310.1 	(2) be at least 21 years of age;
310.2 	(3) have at least a high school diploma or its equivalent; and
310.3 	(4) meet one of the following criteria:
310.4 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
310.5 	(ii) be a certified peer specialist under section 256B.0615;
310.6 	(iii) be a registered nurse without a bachelor's degree;
310.7 	(iv) within the previous ten years, have three years of life experience with serious and 
310.8 	persistent mental illness as defined in subdivision 20; or as a child had severe emotional 
310.9 	disturbance a serious mental illness as defined in section 245.4871, subdivision 6; or have 
310.10 	three years life experience as a primary caregiver to an adult with serious and persistent 
310.11 	mental illness within the previous ten years;
310.12 	(v) have 6,000 hours work experience as a nondegreed state hospital technician; or
310.13 	(vi) have at least 6,000 hours of supervised experience in the delivery of services to 
310.14 	persons with mental illness.
310.15 	Individuals meeting one of the criteria in items (i) to (v) may qualify as a case manager 
310.16 	after four years of supervised work experience as a case manager associate. Individuals 
310.17 	meeting the criteria in item (vi) may qualify as a case manager after three years of supervised 
310.18 	experience as a case manager associate.
310.19 	(h) A case management associate must meet the following supervision, mentoring, and 
310.20 	continuing education requirements:
310.21 	(1) have 40 hours of preservice training described under paragraph (e), clause (2);
310.22 	(2) receive at least 40 hours of continuing education in mental illness and mental health 
310.23 	services annually; and
310.24 	(3) receive at least five hours of mentoring per week from a case management mentor.
310.25 	A "case management mentor" means a qualified, practicing case manager or case management 
310.26 	supervisor who teaches or advises and provides intensive training and clinical supervision 
310.27 	to one or more case manager associates. Mentoring may occur while providing direct services 
310.28 	to consumers in the office or in the field and may be provided to individuals or groups of 
310.29 	case manager associates. At least two mentoring hours per week must be individual and 
310.30 	face-to-face.
311.1 	(i) A case management supervisor must meet the criteria for mental health professionals, 
311.2 	as specified in subdivision 18.
311.3 	(j) An immigrant who does not have the qualifications specified in this subdivision may 
311.4 	provide case management services to adult immigrants with serious and persistent mental 
311.5 	illness who are members of the same ethnic group as the case manager if the person:
311.6 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
311.7 	bachelor's degree in one of the behavioral sciences or a related field including, but not 
311.8 	limited to, social work, psychology, or nursing from an accredited college or university;
311.9 	(2) completes 40 hours of training as specified in this subdivision; and
311.10 	(3) receives clinical supervision at least once a week until the requirements of this 
311.11 	subdivision are met.

311.12 	Sec. 10. Minnesota Statutes 2024, section 245.4682, subdivision 3, is amended to read:
311.13 		Subd. 3.Projects for coordination of care. (a) Consistent with section 256B.69 and 
311.14 	chapter 256L, the commissioner is authorized to solicit, approve, and implement up to three 
311.15 	projects to demonstrate the integration of physical and mental health services within prepaid 
311.16 	health plans and their coordination with social services. The commissioner shall require 
311.17 	that each project be based on locally defined partnerships that include at least one health 
311.18 	maintenance organization, community integrated service network, or accountable provider 
311.19 	network authorized and operating under chapter 62D, 62N, or 62T, or county-based 
311.20 	purchasing entity under section 256B.692 that is eligible to contract with the commissioner 
311.21 	as a prepaid health plan, and the county or counties within the service area. Counties shall 
311.22 	retain responsibility and authority for social services in these locally defined partnerships.
311.23 	(b) The commissioner, in consultation with consumers, families, and their representatives, 
311.24 	shall:
311.25 	(1) determine criteria for approving the projects and use those criteria to solicit proposals 
311.26 	for preferred integrated networks. The commissioner must develop criteria to evaluate the 
311.27 	partnership proposed by the county and prepaid health plan to coordinate access and delivery 
311.28 	of services. The proposal must at a minimum address how the partnership will coordinate 
311.29 	the provision of:
311.30 	(i) client outreach and identification of health and social service needs paired with 
311.31 	expedited access to appropriate resources;
311.32 	(ii) activities to maintain continuity of health care coverage;
312.1 	(iii) children's residential mental health treatment and treatment foster care;
312.2 	(iv) court-ordered assessments and treatments;
312.3 	(v) prepetition screening and commitments under chapter 253B;
312.4 	(vi) assessment and treatment of children identified through mental health screening of 
312.5 	child welfare and juvenile corrections cases;
312.6 	(vii) home and community-based waiver services;
312.7 	(viii) assistance with finding and maintaining employment;
312.8 	(ix) housing; and
312.9 	(x) transportation;
312.10 	(2) determine specifications for contracts with prepaid health plans to improve the plan's 
312.11 	ability to serve persons with mental health conditions, including specifications addressing:
312.12 	(i) early identification and intervention of physical and behavioral health problems;
312.13 	(ii) communication between the enrollee and the health plan;
312.14 	(iii) facilitation of enrollment for persons who are also eligible for a Medicare special 
312.15 	needs plan offered by the health plan;
312.16 	(iv) risk screening procedures;
312.17 	(v) health care coordination;
312.18 	(vi) member services and access to applicable protections and appeal processes;
312.19 	(vii) specialty provider networks;
312.20 	(viii) transportation services;
312.21 	(ix) treatment planning; and
312.22 	(x) administrative simplification for providers;
312.23 	(3) begin implementation of the projects no earlier than January 1, 2009, with not more 
312.24 	than 40 percent of the statewide population included during calendar year 2009 and additional 
312.25 	counties included in subsequent years;
312.26 	(4) waive any administrative rule not consistent with the implementation of the projects;
312.27 	(5) allow potential bidders at least 90 days to respond to the request for proposals; and
312.28 	(6) conduct an independent evaluation to determine if mental health outcomes have 
312.29 	improved in that county or counties according to measurable standards designed in 
313.1 	consultation with the advisory body established under this subdivision and reviewed by the 
313.2 	State Advisory Council on Mental Health.
313.3 	(c) Notwithstanding any statute or administrative rule to the contrary, the commissioner 
313.4 	may enroll all persons eligible for medical assistance with serious mental illness or emotional 
313.5 	disturbance in the prepaid plan of their choice within the project service area unless:
313.6 	(1) the individual is eligible for home and community-based services for persons with 
313.7 	developmental disabilities and related conditions under section 256B.092; or
313.8 	(2) the individual has a basis for exclusion from the prepaid plan under section 256B.69, 
313.9 	subdivision 4, other than disability, or mental illness, or emotional disturbance.
313.10 	(d) The commissioner shall involve organizations representing persons with mental 
313.11 	illness and their families in the development and distribution of information used to educate 
313.12 	potential enrollees regarding their options for health care and mental health service delivery 
313.13 	under this subdivision.
313.14 	(e) If the person described in paragraph (c) does not elect to remain in fee-for-service 
313.15 	medical assistance, or declines to choose a plan, the commissioner may preferentially assign 
313.16 	that person to the prepaid plan participating in the preferred integrated network. The 
313.17 	commissioner shall implement the enrollment changes within a project's service area on the 
313.18 	timeline specified in that project's approved application.
313.19 	(f) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may disenroll 
313.20 	from the plan at any time.
313.21 	(g) The commissioner, in consultation with consumers, families, and their representatives, 
313.22 	shall evaluate the projects begun in 2009, and shall refine the design of the service integration 
313.23 	projects before expanding the projects. The commissioner shall report to the chairs of the 
313.24 	legislative committees with jurisdiction over mental health services by March 1, 2008, on 
313.25 	plans for evaluation of preferred integrated networks established under this subdivision.
313.26 	(h) The commissioner shall apply for any federal waivers necessary to implement these 
313.27 	changes.
313.28 	(i) Payment for Medicaid service providers under this subdivision for the months of 
313.29 	May and June will be made no earlier than July 1 of the same calendar year.

313.30 	Sec. 11. Minnesota Statutes 2024, section 245.4835, subdivision 2, is amended to read:
313.31 		Subd. 2.Failure to maintain expenditures. (a) If a county does not comply with 
313.32 	subdivision 1, the commissioner shall require the county to develop a corrective action plan 
314.1 	according to a format and timeline established by the commissioner. If the commissioner 
314.2 	determines that a county has not developed an acceptable corrective action plan within the 
314.3 	required timeline, or that the county is not in compliance with an approved corrective action 
314.4 	plan, the protections provided to that county under section 245.485 do not apply.
314.5 	(b) The commissioner shall consider the following factors to determine whether to 
314.6 	approve a county's corrective action plan:
314.7 	(1) the degree to which a county is maximizing revenues for mental health services from 
314.8 	noncounty sources;
314.9 	(2) the degree to which a county is expanding use of alternative services that meet mental 
314.10 	health needs, but do not count as mental health services within existing reporting systems. 
314.11 	If approved by the commissioner, the alternative services must be included in the county's 
314.12 	base as well as subsequent years. The commissioner's approval for alternative services must 
314.13 	be based on the following criteria:
314.14 	(i) the service must be provided to children with emotional disturbance or adults with 
314.15 	mental illness;
314.16 	(ii) the services must be based on an individual treatment plan or individual community 
314.17 	support plan as defined in the Comprehensive Mental Health Act; and
314.18 	(iii) the services must be supervised by a mental health professional and provided by 
314.19 	staff who meet the staff qualifications defined in sections 256B.0943, subdivision 7, and 
314.20 	256B.0623, subdivision 5.
314.21 	(c) Additional county expenditures to make up for the prior year's underspending may 
314.22 	be spread out over a two-year period.

314.23 	Sec. 12. Minnesota Statutes 2024, section 245.4863, is amended to read:
314.24 	245.4863 INTEGRATED CO-OCCURRING DISORDER TREATMENT.
314.25 	(a) The commissioner shall require individuals who perform substance use disorder 
314.26 	assessments to screen clients for co-occurring mental health disorders, and staff who perform 
314.27 	mental health diagnostic assessments to screen for co-occurring substance use disorders. 
314.28 	Screening tools must be approved by the commissioner. If a client screens positive for a 
314.29 	co-occurring mental health or substance use disorder, the individual performing the screening 
314.30 	must document what actions will be taken in response to the results and whether further 
314.31 	assessments must be performed.
314.32 	(b) Notwithstanding paragraph (a), screening is not required when:
315.1 	(1) the presence of co-occurring disorders was documented for the client in the past 12 
315.2 	months;
315.3 	(2) the client is currently receiving co-occurring disorders treatment;
315.4 	(3) the client is being referred for co-occurring disorders treatment; or
315.5 	(4) a mental health professional who is competent to perform diagnostic assessments of 
315.6 	co-occurring disorders is performing a diagnostic assessment to identify whether the client 
315.7 	may have co-occurring mental health and substance use disorders. If an individual is 
315.8 	identified to have co-occurring mental health and substance use disorders, the assessing 
315.9 	mental health professional must document what actions will be taken to address the client's 
315.10 	co-occurring disorders.
315.11 	(c) The commissioner shall adopt rules as necessary to implement this section. The 
315.12 	commissioner shall ensure that the rules are effective on July 1, 2013, thereby establishing 
315.13 	a certification process for integrated dual disorder treatment providers and a system through 
315.14 	which individuals receive integrated dual diagnosis treatment if assessed as having both a 
315.15 	substance use disorder and either a serious mental illness or emotional disturbance.
315.16 	(d) The commissioner shall apply for any federal waivers necessary to secure, to the 
315.17 	extent allowed by law, federal financial participation for the provision of integrated dual 
315.18 	diagnosis treatment to persons with co-occurring disorders.

315.19 	Sec. 13. Minnesota Statutes 2024, section 245.487, subdivision 2, is amended to read:
315.20 		Subd. 2.Findings. The legislature finds there is a need for further development of 
315.21 	existing clinical services for emotionally disturbed children with mental illness and their 
315.22 	families and the creation of new services for this population. Although the services specified 
315.23 	in sections 245.487 to 245.4889 are mental health services, sections 245.487 to 245.4889
315.24 	emphasize the need for a child-oriented and family-oriented approach of therapeutic 
315.25 	programming and the need for continuity of care with other community agencies. At the 
315.26 	same time, sections 245.487 to 245.4889 emphasize the importance of developing special 
315.27 	mental health expertise in children's mental health services because of the unique needs of 
315.28 	this population.
315.29 	Nothing in sections 245.487 to 245.4889 shall be construed to abridge the authority of 
315.30 	the court to make dispositions under chapter 260, but the mental health services due any 
315.31 	child with serious and persistent mental illness, as defined in section 245.462, subdivision 
315.32 	20, or with severe emotional disturbance serious mental illness, as defined in section 
315.33 	245.4871, subdivision 6, shall be made a part of any disposition affecting that child.

316.1 	Sec. 14. Minnesota Statutes 2024, section 245.4871, subdivision 3, is amended to read:
316.2 		Subd. 3.Case management services. "Case management services" means activities 
316.3 	that are coordinated with the family community support services and are designed to help 
316.4 	the child with severe emotional disturbance serious mental illness and the child's family 
316.5 	obtain needed mental health services, social services, educational services, health services, 
316.6 	vocational services, recreational services, and related services in the areas of volunteer 
316.7 	services, advocacy, transportation, and legal services. Case management services include 
316.8 	assisting in obtaining a comprehensive diagnostic assessment, developing an individual 
316.9 	family community support plan, and assisting the child and the child's family in obtaining 
316.10 	needed services by coordination with other agencies and assuring continuity of care. Case 
316.11 	managers must assess and reassess the delivery, appropriateness, and effectiveness of services 
316.12 	over time.

316.13 	Sec. 15. Minnesota Statutes 2024, section 245.4871, subdivision 4, is amended to read:
316.14 		Subd. 4.Case management service provider. (a) "Case management service provider" 
316.15 	means a case manager or case manager associate employed by the county or other entity 
316.16 	authorized by the county board to provide case management services specified in subdivision 
316.17 	3 for the child with severe emotional disturbance serious mental illness and the child's 
316.18 	family.
316.19 	(b) A case manager must:
316.20 	(1) have experience and training in working with children;
316.21 	(2) have at least a bachelor's degree in one of the behavioral sciences or a related field 
316.22 	including, but not limited to, social work, psychology, or nursing from an accredited college 
316.23 	or university or meet the requirements of paragraph (d);
316.24 	(3) have experience and training in identifying and assessing a wide range of children's 
316.25 	needs;
316.26 	(4) be knowledgeable about local community resources and how to use those resources 
316.27 	for the benefit of children and their families; and
316.28 	(5) meet the supervision and continuing education requirements of paragraphs (e), (f), 
316.29 	and (g), as applicable.
316.30 	(c) A case manager may be a member of any professional discipline that is part of the 
316.31 	local system of care for children established by the county board.
317.1 	(d) A case manager without a bachelor's degree must meet one of the requirements in 
317.2 	clauses (1) to (3):
317.3 	(1) have three or four years of experience as a case manager associate;
317.4 	(2) be a registered nurse without a bachelor's degree who has a combination of specialized 
317.5 	training in psychiatry and work experience consisting of community interaction and 
317.6 	involvement or community discharge planning in a mental health setting totaling three years; 
317.7 	or
317.8 	(3) be a person who qualified as a case manager under the 1998 Department of Human 
317.9 	Services waiver provision and meets the continuing education, supervision, and mentoring 
317.10 	requirements in this section.
317.11 	(e) A case manager with at least 2,000 hours of supervised experience in the delivery 
317.12 	of mental health services to children must receive regular ongoing supervision and clinical 
317.13 	supervision totaling 38 hours per year, of which at least one hour per month must be clinical 
317.14 	supervision regarding individual service delivery with a case management supervisor. The 
317.15 	other 26 hours of supervision may be provided by a case manager with two years of 
317.16 	experience. Group supervision may not constitute more than one-half of the required 
317.17 	supervision hours.
317.18 	(f) A case manager without 2,000 hours of supervised experience in the delivery of 
317.19 	mental health services to children with emotional disturbance mental illness must:
317.20 	(1) begin 40 hours of training approved by the commissioner of human services in case 
317.21 	management skills and in the characteristics and needs of children with severe emotional 
317.22 	disturbance serious mental illness before beginning to provide case management services; 
317.23 	and
317.24 	(2) receive clinical supervision regarding individual service delivery from a mental 
317.25 	health professional at least one hour each week until the requirement of 2,000 hours of 
317.26 	experience is met.
317.27 	(g) A case manager who is not licensed, registered, or certified by a health-related 
317.28 	licensing board must receive 30 hours of continuing education and training in severe 
317.29 	emotional disturbance serious mental illness and mental health services every two years.
317.30 	(h) Clinical supervision must be documented in the child's record. When the case manager 
317.31 	is not a mental health professional, the county board must provide or contract for needed 
317.32 	clinical supervision.
318.1 	(i) The county board must ensure that the case manager has the freedom to access and 
318.2 	coordinate the services within the local system of care that are needed by the child.
318.3 	(j) A case manager associate (CMA) must:
318.4 	(1) work under the direction of a case manager or case management supervisor;
318.5 	(2) be at least 21 years of age;
318.6 	(3) have at least a high school diploma or its equivalent; and
318.7 	(4) meet one of the following criteria:
318.8 	(i) have an associate of arts degree in one of the behavioral sciences or human services;
318.9 	(ii) be a registered nurse without a bachelor's degree;
318.10 	(iii) have three years of life experience as a primary caregiver to a child with serious 
318.11 	emotional disturbance mental illness as defined in subdivision 6 within the previous ten 
318.12 	years;
318.13 	(iv) have 6,000 hours work experience as a nondegreed state hospital technician; or
318.14 	(v) have 6,000 hours of supervised work experience in the delivery of mental health 
318.15 	services to children with emotional disturbances mental illness; hours worked as a mental 
318.16 	health behavioral aide I or II under section 256B.0943, subdivision 7, may count toward 
318.17 	the 6,000 hours of supervised work experience.
318.18 	Individuals meeting one of the criteria in items (i) to (iv) may qualify as a case manager 
318.19 	after four years of supervised work experience as a case manager associate. Individuals 
318.20 	meeting the criteria in item (v) may qualify as a case manager after three years of supervised 
318.21 	experience as a case manager associate.
318.22 	(k) Case manager associates must meet the following supervision, mentoring, and 
318.23 	continuing education requirements;
318.24 	(1) have 40 hours of preservice training described under paragraph (f), clause (1);
318.25 	(2) receive at least 40 hours of continuing education in severe emotional disturbance
318.26 	serious mental illness and mental health service annually; and
318.27 	(3) receive at least five hours of mentoring per week from a case management mentor. 
318.28 	A "case management mentor" means a qualified, practicing case manager or case management 
318.29 	supervisor who teaches or advises and provides intensive training and clinical supervision 
318.30 	to one or more case manager associates. Mentoring may occur while providing direct services 
318.31 	to consumers in the office or in the field and may be provided to individuals or groups of 
319.1 	case manager associates. At least two mentoring hours per week must be individual and 
319.2 	face-to-face.
319.3 	(l) A case management supervisor must meet the criteria for a mental health professional 
319.4 	as specified in subdivision 27.
319.5 	(m) An immigrant who does not have the qualifications specified in this subdivision 
319.6 	may provide case management services to child immigrants with severe emotional 
319.7 	disturbance serious mental illness of the same ethnic group as the immigrant if the person:
319.8 	(1) is currently enrolled in and is actively pursuing credits toward the completion of a 
319.9 	bachelor's degree in one of the behavioral sciences or related fields at an accredited college 
319.10 	or university;
319.11 	(2) completes 40 hours of training as specified in this subdivision; and
319.12 	(3) receives clinical supervision at least once a week until the requirements of obtaining 
319.13 	a bachelor's degree and 2,000 hours of supervised experience are met.

319.14 	Sec. 16. Minnesota Statutes 2024, section 245.4871, subdivision 6, is amended to read:
319.15 		Subd. 6.Child with severe emotional disturbance serious mental illness. For purposes 
319.16 	of eligibility for case management and family community support services, "child with 
319.17 	severe emotional disturbance serious mental illness" means a child who has an emotional 
319.18 	disturbance mental illness and who meets one of the following criteria:
319.19 	(1) the child has been admitted within the last three years or is at risk of being admitted 
319.20 	to inpatient treatment or residential treatment for an emotional disturbance mental illness; 
319.21 	or
319.22 	(2) the child is a Minnesota resident and is receiving inpatient treatment or residential 
319.23 	treatment for an emotional disturbance mental illness through the interstate compact; or
319.24 	(3) the child has one of the following as determined by a mental health professional:
319.25 	(i) psychosis or a clinical depression; or
319.26 	(ii) risk of harming self or others as a result of an emotional disturbance mental illness; 
319.27 	or
319.28 	(iii) psychopathological symptoms as a result of being a victim of physical or sexual 
319.29 	abuse or of psychic trauma within the past year; or
319.30 	(4) the child, as a result of an emotional disturbance mental illness, has significantly 
319.31 	impaired home, school, or community functioning that has lasted at least one year or that, 
320.1 	in the written opinion of a mental health professional, presents substantial risk of lasting at 
320.2 	least one year.

320.3 	Sec. 17. Minnesota Statutes 2024, section 245.4871, subdivision 13, is amended to read:
320.4 		Subd. 13.Education and prevention services. (a) "Education and prevention services" 
320.5 	means services designed to:
320.6 	(1) educate the general public;
320.7 	(2) increase the understanding and acceptance of problems associated with emotional 
320.8 	disturbances children's mental illnesses;
320.9 	(3) improve people's skills in dealing with high-risk situations known to affect children's 
320.10 	mental health and functioning; and
320.11 	(4) refer specific children or their families with mental health needs to mental health 
320.12 	services.
320.13 	(b) The services include distribution to individuals and agencies identified by the county 
320.14 	board and the local children's mental health advisory council of information on predictors 
320.15 	and symptoms of emotional disturbances mental illnesses, where mental health services are 
320.16 	available in the county, and how to access the services.

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

320.27 	Sec. 19. Minnesota Statutes 2024, section 245.4871, subdivision 17, is amended to read:
320.28 		Subd. 17.Family community support services. "Family community support services" 
320.29 	means services provided under the treatment supervision of a mental health professional 
320.30 	and designed to help each child with severe emotional disturbance serious mental illness to 
321.1 	function and remain with the child's family in the community. Family community support 
321.2 	services do not include acute care hospital inpatient treatment, residential treatment services, 
321.3 	or regional treatment center services. Family community support services include:
321.4 	(1) client outreach to each child with severe emotional disturbance serious mental illness
321.5 	and the child's family;
321.6 	(2) medication monitoring where necessary;
321.7 	(3) assistance in developing independent living skills;
321.8 	(4) assistance in developing parenting skills necessary to address the needs of the child 
321.9 	with severe emotional disturbance serious mental illness;
321.10 	(5) assistance with leisure and recreational activities;
321.11 	(6) crisis planning, including crisis placement and respite care;
321.12 	(7) professional home-based family treatment;
321.13 	(8) foster care with therapeutic supports;
321.14 	(9) day treatment;
321.15 	(10) assistance in locating respite care and special needs day care; and
321.16 	(11) assistance in obtaining potential financial resources, including those benefits listed 
321.17 	in section 245.4884, subdivision 5.

321.18 	Sec. 20. Minnesota Statutes 2024, section 245.4871, subdivision 19, is amended to read:
321.19 		Subd. 19.Individual family community support plan. "Individual family community 
321.20 	support plan" means a written plan developed by a case manager in conjunction with the 
321.21 	family and the child with severe emotional disturbance serious mental illness on the basis 
321.22 	of a diagnostic assessment and a functional assessment. The plan identifies specific services 
321.23 	needed by a child and the child's family to:
321.24 	(1) treat the symptoms and dysfunctions determined in the diagnostic assessment;
321.25 	(2) relieve conditions leading to emotional disturbance mental illness and improve the 
321.26 	personal well-being of the child;
321.27 	(3) improve family functioning;
321.28 	(4) enhance daily living skills;
321.29 	(5) improve functioning in education and recreation settings;
322.1 	(6) improve interpersonal and family relationships;
322.2 	(7) enhance vocational development; and
322.3 	(8) assist in obtaining transportation, housing, health services, and employment.

322.4 	Sec. 21. Minnesota Statutes 2024, section 245.4871, subdivision 21, is amended to read:
322.5 		Subd. 21.Individual treatment plan. (a) "Individual treatment plan" means the 
322.6 	formulation of planned services that are responsive to the needs and goals of a client. An 
322.7 	individual treatment plan must be completed according to section 245I.10, subdivisions 7 
322.8 	and 8.
322.9 	(b) A children's residential facility licensed under Minnesota Rules, chapter 2960, is 
322.10 	exempt from the requirements of section 245I.10, subdivisions 7 and 8. Instead, the individual 
322.11 	treatment plan must:
322.12 	(1) include a written plan of intervention, treatment, and services for a child with an 
322.13 	emotional disturbance mental illness that the service provider develops under the clinical 
322.14 	supervision of a mental health professional on the basis of a diagnostic assessment;
322.15 	(2) be developed in conjunction with the family unless clinically inappropriate; and
322.16 	(3) identify goals and objectives of treatment, treatment strategy, a schedule for 
322.17 	accomplishing treatment goals and objectives, and the individuals responsible for providing 
322.18 	treatment to the child with an emotional disturbance mental illness.

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

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

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

323.5 	Sec. 25. Minnesota Statutes 2024, section 245.4871, subdivision 31, is amended to read:
323.6 		Subd. 31.Professional home-based family treatment. (a) "Professional home-based 
323.7 	family treatment" means intensive mental health services provided to children because of 
323.8 	an emotional disturbance mental illness: (1) who are at risk of out-of-home placement
323.9 	residential treatment or therapeutic foster care; (2) who are in out-of-home placement
323.10 	residential treatment or therapeutic foster care; or (3) who are returning from out-of-home 
323.11 	placement residential treatment or therapeutic foster care.
323.12 	(b) Services are provided to the child and the child's family primarily in the child's home 
323.13 	environment. Services may also be provided in the child's school, child care setting, or other 
323.14 	community setting appropriate to the child. Services must be provided on an individual 
323.15 	family basis, must be child-oriented and family-oriented, and must be designed using 
323.16 	information from diagnostic and functional assessments to meet the specific mental health 
323.17 	needs of the child and the child's family. Services must be coordinated with other services 
323.18 	provided to the child and the child's family.
323.19 	(c) Examples of services are: (1) individual therapy; (2) family therapy; (3) client 
323.20 	outreach; (4) assistance in developing individual living skills; (5) assistance in developing 
323.21 	parenting skills necessary to address the needs of the child; (6) assistance with leisure and 
323.22 	recreational services; (7) crisis planning, including crisis respite care and arranging for crisis 
323.23 	placement; and (8) assistance in locating respite and child care. Services must be coordinated 
323.24 	with other services provided to the child and family.

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

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

324.8 	Sec. 28. Minnesota Statutes 2024, section 245.4873, subdivision 2, is amended to read:
324.9 		Subd. 2.State level; coordination. The Children's Cabinet, under section 4.045, in 
324.10 	consultation with a representative of the Minnesota District Judges Association Juvenile 
324.11 	Committee, shall:
324.12 	(1) educate each agency about the policies, procedures, funding, and services for children 
324.13 	with emotional disturbances mental illnesses of all agencies represented;
324.14 	(2) develop mechanisms for interagency coordination on behalf of children with emotional 
324.15 	disturbances mental illnesses;
324.16 	(3) identify barriers including policies and procedures within all agencies represented 
324.17 	that interfere with delivery of mental health services for children;
324.18 	(4) recommend policy and procedural changes needed to improve development and 
324.19 	delivery of mental health services for children in the agency or agencies they represent; and
324.20 	(5) identify mechanisms for better use of federal and state funding in the delivery of 
324.21 	mental health services for children.

324.22 	Sec. 29. Minnesota Statutes 2024, section 245.4874, subdivision 1, is amended to read:
324.23 		Subdivision 1.Duties of county board. (a) The county board must:
324.24 	(1) develop a system of affordable and locally available children's mental health services 
324.25 	according to sections 245.487 to 245.4889;
324.26 	(2) consider the assessment of unmet needs in the county as reported by the local 
324.27 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
324.28 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
324.29 	advisory council, readily available data to assist in the determination of unmet needs;
324.30 	(3) assure that parents and providers in the county receive information about how to 
324.31 	gain access to services provided according to sections 245.487 to 245.4889;
325.1 	(4) coordinate the delivery of children's mental health services with services provided 
325.2 	by social services, education, corrections, health, and vocational agencies to improve the 
325.3 	availability of mental health services to children and the cost-effectiveness of their delivery;
325.4 	(5) assure that mental health services delivered according to sections 245.487 to 245.4889 
325.5 	are delivered expeditiously and are appropriate to the child's diagnostic assessment and 
325.6 	individual treatment plan;
325.7 	(6) provide for case management services to each child with severe emotional disturbance
325.8 	serious mental illness according to sections 245.486; 245.4871, subdivisions 3 and 4; and 
325.9 	245.4881, subdivisions 1, 3, and 5;
325.10 	(7) provide for screening of each child under section 245.4885 upon admission to a 
325.11 	residential treatment facility, acute care hospital inpatient treatment, or informal admission 
325.12 	to a regional treatment center;
325.13 	(8) prudently administer grants and purchase-of-service contracts that the county board 
325.14 	determines are necessary to fulfill its responsibilities under sections 245.487 to 245.4889;
325.15 	(9) assure that mental health professionals, mental health practitioners, and case managers 
325.16 	employed by or under contract to the county to provide mental health services are qualified 
325.17 	under section 245.4871;
325.18 	(10) assure that children's mental health services are coordinated with adult mental health 
325.19 	services specified in sections 245.461 to 245.486 so that a continuum of mental health 
325.20 	services is available to serve persons with mental illness, regardless of the person's age;
325.21 	(11) assure that culturally competent mental health consultants are used as necessary to 
325.22 	assist the county board in assessing and providing appropriate treatment for children of 
325.23 	cultural or racial minority heritage; and
325.24 	(12) consistent with section 245.486, arrange for or provide a children's mental health 
325.25 	screening for:
325.26 	(i) a child receiving child protective services;
325.27 	(ii) a child in out-of-home placement residential treatment or therapeutic foster care;
325.28 	(iii) a child for whom parental rights have been terminated;
325.29 	(iv) a child found to be delinquent; or
325.30 	(v) a child found to have committed a juvenile petty offense for the third or subsequent 
325.31 	time.
326.1 	A children's mental health screening is not required when a screening or diagnostic 
326.2 	assessment has been performed within the previous 180 days, or the child is currently under 
326.3 	the care of a mental health professional.
326.4 	(b) When a child is receiving protective services or is in out-of-home placement
326.5 	residential treatment or foster care, the court or county agency must notify a parent or 
326.6 	guardian whose parental rights have not been terminated of the potential mental health 
326.7 	screening and the option to prevent the screening by notifying the court or county agency 
326.8 	in writing.
326.9 	(c) When a child is found to be delinquent or a child is found to have committed a 
326.10 	juvenile petty offense for the third or subsequent time, the court or county agency must 
326.11 	obtain written informed consent from the parent or legal guardian before a screening is 
326.12 	conducted unless the court, notwithstanding the parent's failure to consent, determines that 
326.13 	the screening is in the child's best interest.
326.14 	(d) The screening shall be conducted with a screening instrument approved by the 
326.15 	commissioner of human services according to criteria that are updated and issued annually 
326.16 	to ensure that approved screening instruments are valid and useful for child welfare and 
326.17 	juvenile justice populations. Screenings shall be conducted by a mental health practitioner 
326.18 	as defined in section 245.4871, subdivision 26, or a probation officer or local social services 
326.19 	agency staff person who is trained in the use of the screening instrument. Training in the 
326.20 	use of the instrument shall include:
326.21 	(1) training in the administration of the instrument;
326.22 	(2) the interpretation of its validity given the child's current circumstances;
326.23 	(3) the state and federal data practices laws and confidentiality standards;
326.24 	(4) the parental consent requirement; and
326.25 	(5) providing respect for families and cultural values.
326.26 	If the screen indicates a need for assessment, the child's family, or if the family lacks 
326.27 	mental health insurance, the local social services agency, in consultation with the child's 
326.28 	family, shall have conducted a diagnostic assessment, including a functional assessment. 
326.29 	The administration of the screening shall safeguard the privacy of children receiving the 
326.30 	screening and their families and shall comply with the Minnesota Government Data Practices 
326.31 	Act, chapter 13, and the federal Health Insurance Portability and Accountability Act of 
326.32 	1996, Public Law 104-191. Screening results are classified as private data on individuals, 
326.33 	as defined by section 13.02, subdivision 12. The county board or Tribal nation may provide 
327.1 	the commissioner with access to the screening results for the purposes of program evaluation 
327.2 	and improvement.
327.3 	(e) When the county board refers clients to providers of children's therapeutic services 
327.4 	and supports under section 256B.0943, the county board must clearly identify the desired 
327.5 	services components not covered under section 256B.0943 and identify the reimbursement 
327.6 	source for those requested services, the method of payment, and the payment rate to the 
327.7 	provider.

327.8 	Sec. 30. Minnesota Statutes 2024, section 245.4875, subdivision 5, is amended to read:
327.9 		Subd. 5.Local children's advisory council. (a) By October 1, 1989, the county board, 
327.10 	individually or in conjunction with other county boards, shall establish a local children's 
327.11 	mental health advisory council or children's mental health subcommittee of the existing 
327.12 	local mental health advisory council or shall include persons on its existing mental health 
327.13 	advisory council who are representatives of children's mental health interests. The following 
327.14 	individuals must serve on the local children's mental health advisory council, the children's 
327.15 	mental health subcommittee of an existing local mental health advisory council, or be 
327.16 	included on an existing mental health advisory council: (1) at least one person who was in 
327.17 	a mental health program as a child or adolescent; (2) at least one parent of a child or 
327.18 	adolescent with severe emotional disturbance serious mental illness; (3) one children's 
327.19 	mental health professional; (4) representatives of minority populations of significant size 
327.20 	residing in the county; (5) a representative of the children's mental health local coordinating 
327.21 	council; and (6) one family community support services program representative.
327.22 	(b) The local children's mental health advisory council or children's mental health 
327.23 	subcommittee of an existing advisory council shall seek input from parents, former 
327.24 	consumers, providers, and others about the needs of children with emotional disturbance
327.25 	mental illness in the local area and services needed by families of these children, and shall 
327.26 	meet monthly, unless otherwise determined by the council or subcommittee, but not less 
327.27 	than quarterly, to review, evaluate, and make recommendations regarding the local children's 
327.28 	mental health system. Annually, the local children's mental health advisory council or 
327.29 	children's mental health subcommittee of the existing local mental health advisory council 
327.30 	shall:
327.31 	(1) arrange for input from the local system of care providers regarding coordination of 
327.32 	care between the services;
327.33 	(2) identify for the county board the individuals, providers, agencies, and associations 
327.34 	as specified in section 245.4877, clause (2); and
328.1 	(3) provide to the county board a report of unmet mental health needs of children residing 
328.2 	in the county.
328.3 	(c) The county board shall consider the advice of its local children's mental health 
328.4 	advisory council or children's mental health subcommittee of the existing local mental health 
328.5 	advisory council in carrying out its authorities and responsibilities.

328.6 	Sec. 31. Minnesota Statutes 2024, section 245.4876, subdivision 4, is amended to read:
328.7 		Subd. 4.Referral for case management. Each provider of emergency services, outpatient 
328.8 	treatment, community support services, family community support services, day treatment 
328.9 	services, screening under section 245.4885, professional home-based family treatment 
328.10 	services, residential treatment facilities, acute care hospital inpatient treatment facilities, or 
328.11 	regional treatment center services must inform each child with severe emotional disturbance
328.12 	serious mental illness, and the child's parent or legal representative, of the availability and 
328.13 	potential benefits to the child of case management. The information shall be provided as 
328.14 	specified in subdivision 5. If consent is obtained according to subdivision 5, the provider 
328.15 	must refer the child by notifying the county employee designated by the county board to 
328.16 	coordinate case management activities of the child's name and address and by informing 
328.17 	the child's family of whom to contact to request case management. The provider must 
328.18 	document compliance with this subdivision in the child's record. The parent or child may 
328.19 	directly request case management even if there has been no referral.

328.20 	Sec. 32. Minnesota Statutes 2024, section 245.4876, subdivision 5, is amended to read:
328.21 		Subd. 5.Consent for services or for release of information. (a) Although sections 
328.22 	245.487 to 245.4889 require each county board, within the limits of available resources, to 
328.23 	make the mental health services listed in those sections available to each child residing in 
328.24 	the county who needs them, the county board shall not provide any services, either directly 
328.25 	or by contract, unless consent to the services is obtained under this subdivision. The case 
328.26 	manager assigned to a child with a severe emotional disturbance serious mental illness shall 
328.27 	not disclose to any person other than the case manager's immediate supervisor and the mental 
328.28 	health professional providing clinical supervision of the case manager information on the 
328.29 	child, the child's family, or services provided to the child or the child's family without 
328.30 	informed written consent unless required to do so by statute or under the Minnesota 
328.31 	Government Data Practices Act. Informed written consent must comply with section 13.05, 
328.32 	subdivision 4, paragraph (d), and specify the purpose and use for which the case manager 
328.33 	may disclose the information.
329.1 	(b) The consent or authorization must be obtained from the child's parent unless: (1) the 
329.2 	parental rights are terminated; or (2) consent is otherwise provided under sections 144.341
329.3 	to 144.347; 253B.04, subdivision 1; 260C.148; 260C.151; and 260C.201, subdivision 1, 
329.4 	the terms of appointment of a court-appointed guardian or conservator, or federal regulations 
329.5 	governing substance use disorder services.

329.6 	Sec. 33. Minnesota Statutes 2024, section 245.4877, is amended to read:
329.7 	245.4877 EDUCATION AND PREVENTION SERVICES.
329.8 	Education and prevention services must be available to all children residing in the county. 
329.9 	Education and prevention services must be designed to:
329.10 	(1) convey information regarding emotional disturbances mental illness, mental health 
329.11 	needs, and treatment resources to the general public;
329.12 	(2) at least annually, distribute to individuals and agencies identified by the county board 
329.13 	and the local children's mental health advisory council information on predictors and 
329.14 	symptoms of emotional disturbances mental illness, where mental health services are 
329.15 	available in the county, and how to access the services;
329.16 	(3) increase understanding and acceptance of problems associated with emotional 
329.17 	disturbances mental illness;
329.18 	(4) improve people's skills in dealing with high-risk situations known to affect children's 
329.19 	mental health and functioning;
329.20 	(5) prevent development or deepening of emotional disturbances mental illness; and
329.21 	(6) refer each child with emotional disturbance mental illness or the child's family with 
329.22 	additional mental health needs to appropriate mental health services.

329.23 	Sec. 34. Minnesota Statutes 2024, section 245.488, subdivision 1, is amended to read:
329.24 		Subdivision 1.Availability of outpatient services. (a) County boards must provide or 
329.25 	contract for enough outpatient services within the county to meet the needs of each child 
329.26 	with emotional disturbance mental illness residing in the county and the child's family. 
329.27 	Services may be provided directly by the county through county-operated mental health 
329.28 	clinics meeting the standards of chapter 245I; by contract with privately operated mental 
329.29 	health clinics meeting the standards of chapter 245I; by contract with hospital mental health 
329.30 	outpatient programs certified by the Joint Commission on Accreditation of Hospital 
329.31 	Organizations; or by contract with a mental health professional. A child or a child's parent 
330.1 	may be required to pay a fee based in accordance with section 245.481. Outpatient services 
330.2 	include:
330.3 	(1) conducting diagnostic assessments;
330.4 	(2) conducting psychological testing;
330.5 	(3) developing or modifying individual treatment plans;
330.6 	(4) making referrals and recommending placements as appropriate;
330.7 	(5) treating the child's mental health needs through therapy; and
330.8 	(6) prescribing and managing medication and evaluating the effectiveness of prescribed 
330.9 	medication.
330.10 	(b) County boards may request a waiver allowing outpatient services to be provided in 
330.11 	a nearby trade area if it is determined that the child requires necessary and appropriate 
330.12 	services that are only available outside the county.
330.13 	(c) Outpatient services offered by the county board to prevent placement must be at the 
330.14 	level of treatment appropriate to the child's diagnostic assessment.

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

330.23 	Sec. 36. Minnesota Statutes 2024, section 245.4881, subdivision 1, is amended to read:
330.24 		Subdivision 1.Availability of case management services. (a) The county board shall 
330.25 	provide case management services for each child with severe emotional disturbance serious 
330.26 	mental illness who is a resident of the county and the child's family who request or consent 
330.27 	to the services. Case management services must be offered to a child with a serious emotional 
330.28 	disturbance mental illness who is over the age of 18 consistent with section 245.4875, 
330.29 	subdivision 8, or the child's legal representative, provided the child's service needs can be 
330.30 	met within the children's service system. Before discontinuing case management services 
330.31 	under this subdivision for children between the ages of 17 and 21, a transition plan must be 
331.1 	developed. The transition plan must be developed with the child and, with the consent of a 
331.2 	child age 18 or over, the child's parent, guardian, or legal representative. The transition plan 
331.3 	should include plans for health insurance, housing, education, employment, and treatment. 
331.4 	Staffing ratios must be sufficient to serve the needs of the clients. The case manager must 
331.5 	meet the requirements in section 245.4871, subdivision 4.
331.6 	(b) Except as permitted by law and the commissioner under demonstration projects, case 
331.7 	management services provided to children with severe emotional disturbance serious mental 
331.8 	illness eligible for medical assistance must be billed to the medical assistance program under 
331.9 	sections 256B.02, subdivision 8, and 256B.0625.
331.10 	(c) Case management services are eligible for reimbursement under the medical assistance 
331.11 	program. Costs of mentoring, supervision, and continuing education may be included in the 
331.12 	reimbursement rate methodology used for case management services under the medical 
331.13 	assistance program.

331.14 	Sec. 37. Minnesota Statutes 2024, section 245.4881, subdivision 4, is amended to read:
331.15 		Subd. 4.Individual family community support plan. (a) For each child, the case 
331.16 	manager must develop an individual family community support plan that incorporates the 
331.17 	child's individual treatment plan. The individual treatment plan may not be a substitute for 
331.18 	the development of an individual family community support plan. The case manager is 
331.19 	responsible for developing the individual family community support plan within 30 days 
331.20 	of intake based on a diagnostic assessment and for implementing and monitoring the delivery 
331.21 	of services according to the individual family community support plan. The case manager 
331.22 	must review the plan at least every 180 calendar days after it is developed, unless the case 
331.23 	manager has received a written request from the child's family or an advocate for the child 
331.24 	for a review of the plan every 90 days after it is developed. To the extent appropriate, the 
331.25 	child with severe emotional disturbance serious mental illness, the child's family, advocates, 
331.26 	service providers, and significant others must be involved in all phases of development and 
331.27 	implementation of the individual family community support plan. Notwithstanding the lack 
331.28 	of an individual family community support plan, the case manager shall assist the child and 
331.29 	child's family in accessing the needed services listed in section 245.4884, subdivision 1.
331.30 	(b) The child's individual family community support plan must state:
331.31 	(1) the goals and expected outcomes of each service and criteria for evaluating the 
331.32 	effectiveness and appropriateness of the service;
331.33 	(2) the activities for accomplishing each goal;
332.1 	(3) a schedule for each activity; and
332.2 	(4) the frequency of face-to-face contacts by the case manager, as appropriate to client 
332.3 	need and the implementation of the individual family community support plan.

332.4 	Sec. 38. Minnesota Statutes 2024, section 245.4882, subdivision 1, is amended to read:
332.5 		Subdivision 1.Availability of residential treatment services. County boards must 
332.6 	provide or contract for enough residential treatment services to meet the needs of each child 
332.7 	with severe emotional disturbance serious mental illness residing in the county and needing 
332.8 	this level of care. Length of stay is based on the child's residential treatment need and shall 
332.9 	be reviewed every 90 days. Services must be appropriate to the child's age and treatment 
332.10 	needs and must be made available as close to the county as possible. Residential treatment 
332.11 	must be designed to:
332.12 	(1) help the child improve family living and social interaction skills;
332.13 	(2) help the child gain the necessary skills to return to the community;
332.14 	(3) stabilize crisis admissions; and
332.15 	(4) work with families throughout the placement to improve the ability of the families 
332.16 	to care for children with severe emotional disturbance serious mental illness in the home.

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

332.26 	Sec. 40. Minnesota Statutes 2024, section 245.4884, is amended to read:
332.27 	245.4884 FAMILY COMMUNITY SUPPORT SERVICES.
332.28 		Subdivision 1.Availability of family community support services. By July 1, 1991, 
332.29 	county boards must provide or contract for sufficient family community support services 
332.30 	within the county to meet the needs of each child with severe emotional disturbance serious 
333.1 	mental illness who resides in the county and the child's family. Children or their parents 
333.2 	may be required to pay a fee in accordance with section 245.481.
333.3 	Family community support services must be designed to improve the ability of children 
333.4 	with severe emotional disturbance serious mental illness to:
333.5 	(1) manage basic activities of daily living;
333.6 	(2) function appropriately in home, school, and community settings;
333.7 	(3) participate in leisure time or community youth activities;
333.8 	(4) set goals and plans;
333.9 	(5) reside with the family in the community;
333.10 	(6) participate in after-school and summer activities;
333.11 	(7) make a smooth transition among mental health and education services provided to 
333.12 	children; and
333.13 	(8) make a smooth transition into the adult mental health system as appropriate.
333.14 	In addition, family community support services must be designed to improve overall 
333.15 	family functioning if clinically appropriate to the child's needs, and to reduce the need for 
333.16 	and use of placements more intensive, costly, or restrictive both in the number of admissions 
333.17 	and lengths of stay than indicated by the child's diagnostic assessment.
333.18 	The commissioner of human services shall work with mental health professionals to 
333.19 	develop standards for clinical supervision of family community support services. These 
333.20 	standards shall be incorporated in rule and in guidelines for grants for family community 
333.21 	support services.
333.22 		Subd. 2.Day treatment services provided. (a) Day treatment services must be part of 
333.23 	the family community support services available to each child with severe emotional 
333.24 	disturbance serious mental illness residing in the county. A child or the child's parent may 
333.25 	be required to pay a fee according to section 245.481. Day treatment services must be 
333.26 	designed to:
333.27 	(1) provide a structured environment for treatment;
333.28 	(2) provide support for residing in the community;
333.29 	(3) prevent placements that are more intensive, costly, or restrictive than necessary to 
333.30 	meet the child's need;
333.31 	(4) coordinate with or be offered in conjunction with the child's education program;
334.1 	(5) provide therapy and family intervention for children that are coordinated with 
334.2 	education services provided and funded by schools; and
334.3 	(6) operate during all 12 months of the year.
334.4 	(b) County boards may request a waiver from including day treatment services if they 
334.5 	can document that:
334.6 	(1) alternative services exist through the county's family community support services 
334.7 	for each child who would otherwise need day treatment services; and
334.8 	(2) county demographics and geography make the provision of day treatment services 
334.9 	cost ineffective and unfeasible.
334.10 		Subd. 3.Professional home-based family treatment provided. (a) By January 1, 1991, 
334.11 	county boards must provide or contract for sufficient professional home-based family 
334.12 	treatment within the county to meet the needs of each child with severe emotional disturbance
334.13 	serious mental illness who is at risk of out-of-home placement residential treatment or 
334.14 	therapeutic foster care due to the child's emotional disturbance mental illness or who is 
334.15 	returning to the home from out-of-home placement residential treatment or therapeutic 
334.16 	foster care. The child or the child's parent may be required to pay a fee according to section 
334.17 	245.481. The county board shall require that all service providers of professional home-based 
334.18 	family treatment set fee schedules approved by the county board that are based on the child's 
334.19 	or family's ability to pay. The professional home-based family treatment must be designed 
334.20 	to assist each child with severe emotional disturbance serious mental illness who is at risk 
334.21 	of or who is returning from out-of-home placement residential treatment or therapeutic 
334.22 	foster care and the child's family to:
334.23 	(1) improve overall family functioning in all areas of life;
334.24 	(2) treat the child's symptoms of emotional disturbance mental illness that contribute to 
334.25 	a risk of out-of-home placement residential treatment or therapeutic foster care;
334.26 	(3) provide a positive change in the emotional, behavioral, and mental well-being of 
334.27 	children and their families; and
334.28 	(4) reduce risk of out-of-home placement residential treatment or therapeutic foster care
334.29 	for the identified child with severe emotional disturbance serious mental illness and other 
334.30 	siblings or successfully reunify and reintegrate into the family a child returning from 
334.31 	out-of-home placement residential treatment or therapeutic foster care due to emotional 
334.32 	disturbance mental illness.
335.1 	(b) Professional home-based family treatment must be provided by a team consisting of 
335.2 	a mental health professional and others who are skilled in the delivery of mental health 
335.3 	services to children and families in conjunction with other human service providers. The 
335.4 	professional home-based family treatment team must maintain flexible hours of service 
335.5 	availability and must provide or arrange for crisis services for each family, 24 hours a day, 
335.6 	seven days a week. Case loads for each professional home-based family treatment team 
335.7 	must be small enough to permit the delivery of intensive services and to meet the needs of 
335.8 	the family. Professional home-based family treatment providers shall coordinate services 
335.9 	and service needs with case managers assigned to children and their families. The treatment 
335.10 	team must develop an individual treatment plan that identifies the specific treatment 
335.11 	objectives for both the child and the family.
335.12 		Subd. 4.Therapeutic support of foster care. By January 1, 1992, county boards must 
335.13 	provide or contract for foster care with therapeutic support as defined in section 245.4871, 
335.14 	subdivision 34. Foster families caring for children with severe emotional disturbance serious 
335.15 	mental illness must receive training and supportive services, as necessary, at no cost to the 
335.16 	foster families within the limits of available resources.
335.17 		Subd. 5.Benefits assistance. The county board must offer help to a child with severe 
335.18 	emotional disturbance serious mental illness and the child's family in applying for federal 
335.19 	benefits, including Supplemental Security Income, medical assistance, and Medicare.

335.20 	Sec. 41. Minnesota Statutes 2024, section 245.4885, subdivision 1, is amended to read:
335.21 		Subdivision 1.Admission criteria. (a) Prior to admission or placement, except in the 
335.22 	case of an emergency, all children referred for treatment of severe emotional disturbance
335.23 	serious mental illness in a treatment foster care setting, residential treatment facility, or 
335.24 	informally admitted to a regional treatment center shall undergo an assessment to determine 
335.25 	the appropriate level of care if county funds are used to pay for the child's services. An 
335.26 	emergency includes when a child is in need of and has been referred for crisis stabilization 
335.27 	services under section 245.4882, subdivision 6. A child who has been referred to residential 
335.28 	treatment for crisis stabilization services in a residential treatment center is not required to 
335.29 	undergo an assessment under this section.
335.30 	(b) The county board shall determine the appropriate level of care for a child when 
335.31 	county-controlled funds are used to pay for the child's residential treatment under this 
335.32 	chapter, including residential treatment provided in a qualified residential treatment program 
335.33 	as defined in section 260C.007, subdivision 26d. When a county board does not have 
335.34 	responsibility for a child's placement and the child is enrolled in a prepaid health program 
336.1 	under section 256B.69, the enrolled child's contracted health plan must determine the 
336.2 	appropriate level of care for the child. When Indian Health Services funds or funds of a 
336.3 	tribally owned facility funded under the Indian Self-Determination and Education Assistance 
336.4 	Act, Public Law 93-638, are used for the child, the Indian Health Services or 638 tribal 
336.5 	health facility must determine the appropriate level of care for the child. When more than 
336.6 	one entity bears responsibility for a child's coverage, the entities shall coordinate level of 
336.7 	care determination activities for the child to the extent possible.
336.8 	(c) The child's level of care determination shall determine whether the proposed treatment:
336.9 	(1) is necessary;
336.10 	(2) is appropriate to the child's individual treatment needs;
336.11 	(3) cannot be effectively provided in the child's home; and
336.12 	(4) provides a length of stay as short as possible consistent with the individual child's 
336.13 	needs.
336.14 	(d) When a level of care determination is conducted, the county board or other entity 
336.15 	may not determine that a screening of a child, referral, or admission to a residential treatment 
336.16 	facility is not appropriate solely because services were not first provided to the child in a 
336.17 	less restrictive setting and the child failed to make progress toward or meet treatment goals 
336.18 	in the less restrictive setting. The level of care determination must be based on a diagnostic 
336.19 	assessment of a child that evaluates the child's family, school, and community living 
336.20 	situations; and an assessment of the child's need for care out of the home using a validated 
336.21 	tool which assesses a child's functional status and assigns an appropriate level of care to the 
336.22 	child. The validated tool must be approved by the commissioner of human services and 
336.23 	may be the validated tool approved for the child's assessment under section 260C.704 if the 
336.24 	juvenile treatment screening team recommended placement of the child in a qualified 
336.25 	residential treatment program. If a diagnostic assessment has been completed by a mental 
336.26 	health professional within the past 180 days, a new diagnostic assessment need not be 
336.27 	completed unless in the opinion of the current treating mental health professional the child's 
336.28 	mental health status has changed markedly since the assessment was completed. The child's 
336.29 	parent shall be notified if an assessment will not be completed and of the reasons. A copy 
336.30 	of the notice shall be placed in the child's file. Recommendations developed as part of the 
336.31 	level of care determination process shall include specific community services needed by 
336.32 	the child and, if appropriate, the child's family, and shall indicate whether these services 
336.33 	are available and accessible to the child and the child's family. The child and the child's 
336.34 	family must be invited to any meeting where the level of care determination is discussed 
337.1 	and decisions regarding residential treatment are made. The child and the child's family 
337.2 	may invite other relatives, friends, or advocates to attend these meetings.
337.3 	(e) During the level of care determination process, the child, child's family, or child's 
337.4 	legal representative, as appropriate, must be informed of the child's eligibility for case 
337.5 	management services and family community support services and that an individual family 
337.6 	community support plan is being developed by the case manager, if assigned.
337.7 	(f) The level of care determination, placement decision, and recommendations for mental 
337.8 	health services must be documented in the child's record and made available to the child's 
337.9 	family, as appropriate.

337.10 	Sec. 42. Minnesota Statutes 2024, section 245.4889, subdivision 1, is amended to read:
337.11 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
337.12 	make grants from available appropriations to assist:
337.13 	(1) counties;
337.14 	(2) Indian tribes;
337.15 	(3) children's collaboratives under section 142D.15 or 245.493; or
337.16 	(4) mental health service providers.
337.17 	(b) The following services are eligible for grants under this section:
337.18 	(1) services to children with emotional disturbances mental illness as defined in section 
337.19 	245.4871, subdivision 15, and their families;
337.20 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
337.21 	age 21 and their families;
337.22 	(3) respite care services for children with emotional disturbances mental illness or severe 
337.23 	emotional disturbances serious mental illness who are at risk of residential treatment or 
337.24 	hospitalization,; who are already in out-of-home placement residential treatment, therapeutic 
337.25 	foster care, or in family foster settings as defined in chapter 142B and at risk of change in 
337.26 	out-of-home placement foster care or placement in a residential facility or other higher level 
337.27 	of care,; who have utilized crisis services or emergency room services,; or who have 
337.28 	experienced a loss of in-home staffing support. Allowable activities and expenses for respite 
337.29 	care services are defined under subdivision 4. A child is not required to have case 
337.30 	management services to receive respite care services. Counties must work to provide access 
337.31 	to regularly scheduled respite care;
338.1 	(4) children's mental health crisis services;
338.2 	(5) child-, youth-, and family-specific mobile response and stabilization services models;
338.3 	(6) mental health services for people from cultural and ethnic minorities, including 
338.4 	supervision of clinical trainees who are Black, indigenous, or people of color;
338.5 	(7) children's mental health screening and follow-up diagnostic assessment and treatment;
338.6 	(8) services to promote and develop the capacity of providers to use evidence-based 
338.7 	practices in providing children's mental health services;
338.8 	(9) school-linked mental health services under section 245.4901;
338.9 	(10) building evidence-based mental health intervention capacity for children birth to 
338.10 	age five;
338.11 	(11) suicide prevention and counseling services that use text messaging statewide;
338.12 	(12) mental health first aid training;
338.13 	(13) training for parents, collaborative partners, and mental health providers on the 
338.14 	impact of adverse childhood experiences and trauma and development of an interactive 
338.15 	website to share information and strategies to promote resilience and prevent trauma;
338.16 	(14) transition age services to develop or expand mental health treatment and supports 
338.17 	for adolescents and young adults 26 years of age or younger;
338.18 	(15) early childhood mental health consultation;
338.19 	(16) evidence-based interventions for youth at risk of developing or experiencing a first 
338.20 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
338.21 	psychosis;
338.22 	(17) psychiatric consultation for primary care practitioners; and
338.23 	(18) providers to begin operations and meet program requirements when establishing a 
338.24 	new children's mental health program. These may be start-up grants.
338.25 	(c) Services under paragraph (b) must be designed to help each child to function and 
338.26 	remain with the child's family in the community and delivered consistent with the child's 
338.27 	treatment plan. Transition services to eligible young adults under this paragraph must be 
338.28 	designed to foster independent living in the community.
338.29 	(d) As a condition of receiving grant funds, a grantee shall obtain all available third-party 
338.30 	reimbursement sources, if applicable.
339.1 	(e) The commissioner may establish and design a pilot program to expand the mobile 
339.2 	response and stabilization services model for children, youth, and families. The commissioner 
339.3 	may use grant funding to consult with a qualified expert entity to assist in the formulation 
339.4 	of measurable outcomes and explore and position the state to submit a Medicaid state plan 
339.5 	amendment to scale the model statewide.

339.6 	Sec. 43. Minnesota Statutes 2024, section 245.4907, subdivision 2, is amended to read:
339.7 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
339.8 	employs a mental health certified peer family specialist qualified under section 245I.04, 
339.9 	subdivision 12, and that provides services to families who have a child:
339.10 	(1) with an emotional disturbance mental illness or severe emotional disturbance serious 
339.11 	mental illness under chapter 245;
339.12 	(2) receiving inpatient hospitalization under section 256B.0625, subdivision 1;
339.13 	(3) admitted to a residential treatment facility under section 245.4882;
339.14 	(4) receiving children's intensive behavioral health services under section 256B.0946;
339.15 	(5) receiving day treatment or children's therapeutic services and supports under section 
339.16 	256B.0943; or
339.17 	(6) receiving crisis response services under section 256B.0624.

339.18 	Sec. 44. Minnesota Statutes 2024, section 245.491, subdivision 2, is amended to read:
339.19 		Subd. 2.Purpose. The legislature finds that children with mental illnesses or emotional 
339.20 	or behavioral disturbances or who are at risk of suffering such disturbances often require 
339.21 	services from multiple service systems including mental health, social services, education, 
339.22 	corrections, juvenile court, health, and employment and economic development. In order 
339.23 	to better meet the needs of these children, it is the intent of the legislature to establish an 
339.24 	integrated children's mental health service system that:
339.25 	(1) allows local service decision makers to draw funding from a single local source so 
339.26 	that funds follow clients and eliminates the need to match clients, funds, services, and 
339.27 	provider eligibilities;
339.28 	(2) creates a local pool of state, local, and private funds to procure a greater medical 
339.29 	assistance federal financial participation;
339.30 	(3) improves the efficiency of use of existing resources;
340.1 	(4) minimizes or eliminates the incentives for cost and risk shifting; and
340.2 	(5) increases the incentives for earlier identification and intervention.
340.3 	The children's mental health integrated fund established under sections 245.491 to 245.495
340.4 	must be used to develop and support this integrated mental health service system. In 
340.5 	developing this integrated service system, it is not the intent of the legislature to limit any 
340.6 	rights available to children and their families through existing federal and state laws.

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

340.12 	Sec. 46. Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:
340.13 		Subd. 2a.Subcommittee on Children's Mental Health. The State Advisory Council 
340.14 	on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental 
340.15 	Health. The subcommittee must make recommendations to the advisory council on policies, 
340.16 	laws, regulations, and services relating to children's mental health. Members of the 
340.17 	subcommittee must include:
340.18 	(1) the commissioners or designees of the commissioners of the Departments of Human 
340.19 	Services, Health, Education, State Planning, and Corrections;
340.20 	(2) a designee of the Direct Care and Treatment executive board;
340.21 	(3) the commissioner of commerce or a designee of the commissioner who is 
340.22 	knowledgeable about medical insurance issues;
340.23 	(4) at least one representative of an advocacy group for children with emotional 
340.24 	disturbances mental illnesses;
340.25 	(5) providers of children's mental health services, including at least one provider of 
340.26 	services to preadolescent children, one provider of services to adolescents, and one 
340.27 	hospital-based provider;
340.28 	(6) parents of children who have emotional disturbances mental illnesses;
340.29 	(7) a present or former consumer of adolescent mental health services;
340.30 	(8) educators currently working with emotionally disturbed children with mental illnesses;
341.1 	(9) people knowledgeable about the needs of emotionally disturbed children with mental 
341.2 	illnesses of minority races and cultures;
341.3 	(10) people experienced in working with emotionally disturbed children with mental 
341.4 	illnesses who have committed status offenses;
341.5 	(11) members of the advisory council;
341.6 	(12) one person from the local corrections department and one representative of the 
341.7 	Minnesota District Judges Association Juvenile Committee; and
341.8 	(13) county commissioners and social services agency representatives.
341.9 	The chair of the advisory council shall appoint subcommittee members described in 
341.10 	clauses (4) to (12) through the process established in section 15.0597. The chair shall appoint 
341.11 	members to ensure a geographical balance on the subcommittee. Terms, compensation, 
341.12 	removal, and filling of vacancies are governed by subdivision 1, except that terms of 
341.13 	subcommittee members who are also members of the advisory council are coterminous with 
341.14 	their terms on the advisory council. The subcommittee shall meet at the call of the 
341.15 	subcommittee chair who is elected by the subcommittee from among its members. The 
341.16 	subcommittee expires with the expiration of the advisory council.

341.17 	Sec. 47. Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:
341.18 		Subd. 3.Compensation provisions. (a) If the commissioner of human services is unable 
341.19 	to obtain insurance through ordinary methods for coverage of foster home providers, the 
341.20 	appropriation shall be returned to the general fund and the state shall pay claims subject to 
341.21 	the following limitations.
341.22 	(a) (b) Compensation shall be provided only for injuries, damage, or actions set forth in 
341.23 	subdivision 1.
341.24 	(b) (c) Compensation shall be subject to the conditions and exclusions set forth in 
341.25 	subdivision 2.
341.26 	(c) (d) The state shall provide compensation for bodily injury, property damage, or 
341.27 	personal injury resulting from the foster home providers activities as a foster home provider 
341.28 	while the foster child or adult is in the care, custody, and control of the foster home provider 
341.29 	in an amount not to exceed $250,000 for each occurrence.
341.30 	(d) (e) The state shall provide compensation for damage or destruction of property caused 
341.31 	or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.
342.1 	(e) (f) The compensation in paragraphs (c) and (d) and (e) is the total obligation for all 
342.2 	damages because of each occurrence regardless of the number of claims made in connection 
342.3 	with the same occurrence, but compensation applies separately to each foster home. The 
342.4 	state shall have no other responsibility to provide compensation for any injury or loss caused 
342.5 	or sustained by any foster home provider or foster child or foster adult.
342.6 	(g) This coverage is extended as a benefit to foster home providers to encourage care 
342.7 	of persons who need out-of-home the providers' care. Nothing in this section shall be 
342.8 	construed to mean that foster home providers are agents or employees of the state nor does 
342.9 	the state accept any responsibility for the selection, monitoring, supervision, or control of 
342.10 	foster home providers which is exclusively the responsibility of the counties which shall 
342.11 	regulate foster home providers in the manner set forth in the rules of the commissioner of 
342.12 	human services.

342.13 	Sec. 48. Minnesota Statutes 2024, section 245.826, is amended to read:
342.14 	245.826 USE OF RESTRICTIVE TECHNIQUES AND PROCEDURES IN 
342.15 	FACILITIES SERVING EMOTIONALLY DISTURBED CHILDREN WITH 
342.16 	MENTAL ILLNESSES.
342.17 	When amending rules governing facilities serving emotionally disturbed children with 
342.18 	mental illnesses that are licensed under section 245A.09 and Minnesota Rules, parts 
342.19 	2960.0510 to 2960.0530 and 2960.0580 to 2960.0700, the commissioner of human services 
342.20 	shall include provisions governing the use of restrictive techniques and procedures. No 
342.21 	provision of these rules may encourage or require the use of restrictive techniques and 
342.22 	procedures. The rules must prohibit: (1) the application of certain restrictive techniques or 
342.23 	procedures in facilities, except as authorized in the child's case plan and monitored by the 
342.24 	county caseworker responsible for the child; (2) the use of restrictive techniques or procedures 
342.25 	that restrict the clients' normal access to nutritious diet, drinking water, adequate ventilation, 
342.26 	necessary medical care, ordinary hygiene facilities, normal sleeping conditions, and necessary 
342.27 	clothing; and (3) the use of corporal punishment. The rule may specify other restrictive 
342.28 	techniques and procedures and the specific conditions under which permitted techniques 
342.29 	and procedures are to be carried out.

342.30 	Sec. 49. Minnesota Statutes 2024, section 245.91, subdivision 2, is amended to read:
342.31 		Subd. 2.Agency. "Agency" means the divisions, officials, or employees of the state 
342.32 	Departments of Human Services, Direct Care and Treatment, Health, and Education, and 
342.33 	of local school districts and designated county social service agencies as defined in section 
343.1 	256G.02, subdivision 7, that are engaged in monitoring, providing, or regulating services 
343.2 	or treatment for mental illness, developmental disability, or substance use disorder, or 
343.3 	emotional disturbance.

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

343.14 	Sec. 51. Minnesota Statutes 2024, section 245.92, is amended to read:
343.15 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
343.16 	FUNCTION.
343.17 	The ombudsman for persons receiving services or treatment for mental illness, 
343.18 	developmental disability, or substance use disorder, or emotional disturbance shall promote 
343.19 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
343.20 	ombudsman may gather information and data about decisions, acts, and other matters of an 
343.21 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
343.22 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman is 
343.23 	appointed by the governor, serves in the unclassified service, and may be removed only for 
343.24 	just cause. The ombudsman must be selected without regard to political affiliation and must 
343.25 	be a person who has knowledge and experience concerning the treatment, needs, and rights 
343.26 	of clients, and who is highly competent and qualified. No person may serve as ombudsman 
343.27 	while holding another public office.

343.28 	Sec. 52. Minnesota Statutes 2024, section 245.94, subdivision 1, is amended to read:
343.29 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
343.30 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
343.31 	not levy a complaint fee.
344.1 	(b) The ombudsman is a health oversight agency as defined in Code of Federal 
344.2 	Regulations, title 45, section 164.501. The ombudsman may access patient records according 
344.3 	to Code of Federal Regulations, title 42, section 2.53. For purposes of this paragraph, 
344.4 	"records" has the meaning given in Code of Federal Regulations, title 42, section 
344.5 	2.53(a)(1)(i).
344.6 	(c) The ombudsman may mediate or advocate on behalf of a client.
344.7 	(d) The ombudsman may investigate the quality of services provided to clients and 
344.8 	determine the extent to which quality assurance mechanisms within state and county 
344.9 	government work to promote the health, safety, and welfare of clients.
344.10 	(e) At the request of a client, or upon receiving a complaint or other information affording 
344.11 	reasonable grounds to believe that the rights of one or more clients who may not be capable 
344.12 	of requesting assistance have been adversely affected, the ombudsman may gather 
344.13 	information and data about and analyze, on behalf of the client, the actions of an agency, 
344.14 	facility, or program.
344.15 	(f) The ombudsman may gather, on behalf of one or more clients, records of an agency, 
344.16 	facility, or program, or records related to clinical drug trials from the University of Minnesota 
344.17 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
344.18 	ombudsman's authority. If the records are private and the client is capable of providing 
344.19 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is not 
344.20 	required to obtain consent for access to private data on clients with developmental disabilities 
344.21 	and individuals served by the Minnesota Sex Offender Program. The ombudsman may also 
344.22 	take photographic or videographic evidence while reviewing the actions of an agency, 
344.23 	facility, or program, with the consent of the client. The ombudsman is not required to obtain 
344.24 	consent for access to private data on decedents who were receiving services for mental 
344.25 	illness, developmental disability, or substance use disorder, or emotional disturbance. All 
344.26 	data collected, created, received, or maintained by the ombudsman are governed by chapter 
344.27 	13 and other applicable law.
344.28 	(g) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
344.29 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
344.30 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
344.31 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
344.32 	of an investigation possesses the same privileges that a witness possesses in the courts or 
344.33 	under the law of this state. Data obtained from a person under this paragraph are private 
344.34 	data as defined in section 13.02, subdivision 12.
345.1 	(h) The ombudsman may, at reasonable times in the course of conducting a review, enter 
345.2 	and view premises within the control of an agency, facility, or program.
345.3 	(i) The ombudsman may attend Direct Care and Treatment Review Board and Special 
345.4 	Review Board proceedings; proceedings regarding the transfer of clients, as defined in 
345.5 	section 246.50, subdivision 4, between institutions operated by the Direct Care and Treatment 
345.6 	executive board; and, subject to the consent of the affected client, other proceedings affecting 
345.7 	the rights of clients. The ombudsman is not required to obtain consent to attend meetings 
345.8 	or proceedings and have access to private data on clients with developmental disabilities 
345.9 	and individuals served by the Minnesota Sex Offender Program.
345.10 	(j) The ombudsman shall gather data of agencies, facilities, or programs classified as 
345.11 	private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services 
345.12 	provided to clients with developmental disabilities and individuals served by the Minnesota 
345.13 	Sex Offender Program.
345.14 	(k) To avoid duplication and preserve evidence, the ombudsman shall inform relevant 
345.15 	licensing or regulatory officials before undertaking a review of an action of the facility or 
345.16 	program.
345.17 	(l) The Office of Ombudsman shall provide the services of the Civil Commitment 
345.18 	Training and Resource Center.
345.19 	(m) The ombudsman shall monitor the treatment of individuals participating in a 
345.20 	University of Minnesota Department of Psychiatry clinical drug trial and ensure that all 
345.21 	protections for human subjects required by federal law and the Institutional Review Board 
345.22 	are provided.
345.23 	(n) Sections 245.91 to 245.97 are in addition to other provisions of law under which any 
345.24 	other remedy or right is provided.

345.25 	Sec. 53. Minnesota Statutes 2024, section 245A.03, subdivision 2, is amended to read:
345.26 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
345.27 	(1) residential or nonresidential programs that are provided to a person by an individual 
345.28 	who is related;
345.29 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
345.30 	a single related family;
346.1 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
346.2 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
346.3 	functional impairment, or a physical disability;
346.4 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
346.5 	of employment and economic development;
346.6 	(5) programs operated by a public school for children 33 months or older;
346.7 	(6) nonresidential programs primarily for children that provide care or supervision for 
346.8 	periods of less than three hours a day while the child's parent or legal guardian is in the 
346.9 	same building as the nonresidential program or present within another building that is 
346.10 	directly contiguous to the building in which the nonresidential program is located;
346.11 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
346.12 	under section 245A.02;
346.13 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
346.14 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
346.15 	substance use disorder treatment;
346.16 	(9) programs licensed by the commissioner of corrections;
346.17 	(10) recreation programs for children or adults that are operated or approved by a park 
346.18 	and recreation board whose primary purpose is to provide social and recreational activities;
346.19 	(11) noncertified boarding care homes unless they provide services for five or more 
346.20 	persons whose primary diagnosis is mental illness or a developmental disability;
346.21 	(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
346.22 	programs, and nonresidential programs for children provided for a cumulative total of less 
346.23 	than 30 days in any 12-month period;
346.24 	(13) residential programs for persons with mental illness, that are located in hospitals;
346.25 	(14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
346.26 	4630;
346.27 	(15) mental health outpatient services for adults with mental illness or children with 
346.28 	emotional disturbance mental illness;
346.29 	(16) residential programs serving school-age children whose sole purpose is cultural or 
346.30 	educational exchange, until the commissioner adopts appropriate rules;
347.1 	(17) community support services programs as defined in section 245.462, subdivision 
347.2 	6, and family community support services as defined in section 245.4871, subdivision 17;
347.3 	(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
347.4 	(19) substance use disorder treatment activities of licensed professionals in private 
347.5 	practice as defined in section 245G.01, subdivision 17;
347.6 	(20) consumer-directed community support service funded under the Medicaid waiver 
347.7 	for persons with developmental disabilities when the individual who provided the service 
347.8 	is:
347.9 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
347.10 	a fiscal agent, fiscal intermediary, or employer of record; and
347.11 	(ii) not otherwise under the control of a residential or nonresidential program that is 
347.12 	required to be licensed under this chapter when providing the service;
347.13 	(21) a county that is an eligible vendor under section 254B.05 to provide care coordination 
347.14 	and comprehensive assessment services;
347.15 	(22) a recovery community organization that is an eligible vendor under section 254B.05 
347.16 	to provide peer recovery support services; or
347.17 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
347.18 	142B.
347.19 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
347.20 	building in which a nonresidential program is located if it shares a common wall with the 
347.21 	building in which the nonresidential program is located or is attached to that building by 
347.22 	skyway, tunnel, atrium, or common roof.
347.23 	(c) Except for the home and community-based services identified in section 245D.03, 
347.24 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
347.25 	provided and funded according to an approved federal waiver plan where licensure is 
347.26 	specifically identified as not being a condition for the services and funding.

347.27 	Sec. 54. Minnesota Statutes 2024, section 245A.26, subdivision 1, is amended to read:
347.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
347.29 	subdivision have the meanings given.
347.30 	(b) "Clinical trainee" means a staff person who is qualified under section 245I.04, 
347.31 	subdivision 6.
348.1 	(c) "License holder" means an individual, organization, or government entity that was 
348.2 	issued a license by the commissioner of human services under this chapter for residential 
348.3 	mental health treatment for children with emotional disturbance mental illness according 
348.4 	to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 2960.0700, or shelter 
348.5 	care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 and 2960.0510
348.6 	to 2960.0530.
348.7 	(d) "Mental health professional" means an individual who is qualified under section 
348.8 	245I.04, subdivision 2.

348.9 	Sec. 55. Minnesota Statutes 2024, section 245A.26, subdivision 2, is amended to read:
348.10 		Subd. 2.Scope and applicability. (a) This section establishes additional licensing 
348.11 	requirements for a children's residential facility to provide children's residential crisis 
348.12 	stabilization services to a client who is experiencing a mental health crisis and is in need of 
348.13 	residential treatment services.
348.14 	(b) A children's residential facility may provide residential crisis stabilization services 
348.15 	only if the facility is licensed to provide:
348.16 	(1) residential mental health treatment for children with emotional disturbance mental 
348.17 	illness according to Minnesota Rules, parts 2960.0010 to 2960.0220 and 2960.0580 to 
348.18 	2960.0700; or
348.19 	(2) shelter care services according to Minnesota Rules, parts 2960.0010 to 2960.0120 
348.20 	and 2960.0510 to 2960.0530.
348.21 	(c) If a client receives residential crisis stabilization services for 35 days or fewer in a 
348.22 	facility licensed according to paragraph (b), clause (1), the facility is not required to complete 
348.23 	a diagnostic assessment or treatment plan under Minnesota Rules, part 2960.0180, subpart 
348.24 	2, and part 2960.0600.
348.25 	(d) If a client receives residential crisis stabilization services for 35 days or fewer in a 
348.26 	facility licensed according to paragraph (b), clause (2), the facility is not required to develop 
348.27 	a plan for meeting the client's immediate needs under Minnesota Rules, part 2960.0520, 
348.28 	subpart 3.

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

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

349.13 	Sec. 58. Minnesota Statutes 2024, section 256B.02, subdivision 11, is amended to read:
349.14 		Subd. 11.Related condition. "Related condition" means a condition:
349.15 	(1) that is found to be closely related to a developmental disability, including but not 
349.16 	limited to cerebral palsy, epilepsy, autism, fetal alcohol spectrum disorder, and Prader-Willi 
349.17 	syndrome; and
349.18 	(2) that meets all of the following criteria:
349.19 	(i) is severe and chronic;
349.20 	(ii) results in impairment of general intellectual functioning or adaptive behavior similar 
349.21 	to that of persons with developmental disabilities;
349.22 	(iii) requires treatment or services similar to those required for persons with 
349.23 	developmental disabilities;
349.24 	(iv) is manifested before the person reaches 22 years of age;
349.25 	(v) is likely to continue indefinitely;
349.26 	(vi) results in substantial functional limitations in three or more of the following areas 
349.27 	of major life activity:
349.28 	(A) self-care;
349.29 	(B) understanding and use of language;
349.30 	(C) learning;
350.1 	(D) mobility;
350.2 	(E) self-direction; or
350.3 	(F) capacity for independent living; and
350.4 	(vii) is not attributable to mental illness as defined in section 245.462, subdivision 20, 
350.5 	or an emotional disturbance as defined in section245.4871, subdivision 15. For purposes 
350.6 	of this item, notwithstanding section 245.462, subdivision 20, or 245.4871, subdivision 15, 
350.7 	"mental illness" does not include autism or other pervasive developmental disorders.

350.8 	Sec. 59. Minnesota Statutes 2024, section 256B.055, subdivision 12, is amended to read:
350.9 		Subd. 12.Children with disabilities. (a) A person is eligible for medical assistance if 
350.10 	the person is under age 19 and qualifies as a disabled individual under United States Code, 
350.11 	title 42, section 1382c(a), and would be eligible for medical assistance under the state plan 
350.12 	if residing in a medical institution, and the child requires a level of care provided in a hospital, 
350.13 	nursing facility, or intermediate care facility for persons with developmental disabilities, 
350.14 	for whom home care is appropriate, provided that the cost to medical assistance under this 
350.15 	section is not more than the amount that medical assistance would pay for if the child resides 
350.16 	in an institution. After the child is determined to be eligible under this section, the 
350.17 	commissioner shall review the child's disability under United States Code, title 42, section 
350.18 	1382c(a) and level of care defined under this section no more often than annually and may 
350.19 	elect, based on the recommendation of health care professionals under contract with the 
350.20 	state medical review team, to extend the review of disability and level of care up to a 
350.21 	maximum of four years. The commissioner's decision on the frequency of continuing review 
350.22 	of disability and level of care is not subject to administrative appeal under section 256.045. 
350.23 	The county agency shall send a notice of disability review to the enrollee six months prior 
350.24 	to the date the recertification of disability is due. Nothing in this subdivision shall be 
350.25 	construed as affecting other redeterminations of medical assistance eligibility under this 
350.26 	chapter and annual cost-effective reviews under this section.
350.27 	(b) For purposes of this subdivision, "hospital" means an institution as defined in section 
350.28 	144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 
350.29 	licensed pursuant to sections 144.50 to 144.58. For purposes of this subdivision, a child 
350.30 	requires a level of care provided in a hospital if the child is determined by the commissioner 
350.31 	to need an extensive array of health services, including mental health services, for an 
350.32 	undetermined period of time, whose health condition requires frequent monitoring and 
350.33 	treatment by a health care professional or by a person supervised by a health care 
350.34 	professional, who would reside in a hospital or require frequent hospitalization if these 
351.1 	services were not provided, and the daily care needs are more complex than a nursing facility 
351.2 	level of care.
351.3 	A child with serious emotional disturbance mental illness requires a level of care provided 
351.4 	in a hospital if the commissioner determines that the individual requires 24-hour supervision 
351.5 	because the person exhibits recurrent or frequent suicidal or homicidal ideation or behavior, 
351.6 	recurrent or frequent psychosomatic disorders or somatopsychic disorders that may become 
351.7 	life threatening, recurrent or frequent severe socially unacceptable behavior associated with 
351.8 	psychiatric disorder, ongoing and chronic psychosis or severe, ongoing and chronic 
351.9 	developmental problems requiring continuous skilled observation, or severe disabling 
351.10 	symptoms for which office-centered outpatient treatment is not adequate, and which overall 
351.11 	severely impact the individual's ability to function.
351.12 	(c) For purposes of this subdivision, "nursing facility" means a facility which provides 
351.13 	nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections 
351.14 	144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is 
351.15 	in need of special treatments provided or supervised by a licensed nurse; or has unpredictable 
351.16 	episodes of active disease processes requiring immediate judgment by a licensed nurse. For 
351.17 	purposes of this subdivision, a child requires the level of care provided in a nursing facility 
351.18 	if the child is determined by the commissioner to meet the requirements of the preadmission 
351.19 	screening assessment document under section 256B.0911, adjusted to address age-appropriate 
351.20 	standards for children age 18 and under.
351.21 	(d) For purposes of this subdivision, "intermediate care facility for persons with 
351.22 	developmental disabilities" or "ICF/DD" means a program licensed to provide services to 
351.23 	persons with developmental disabilities under section 252.28, and chapter 245A, and a 
351.24 	physical plant licensed as a supervised living facility under chapter 144, which together are 
351.25 	certified by the Minnesota Department of Health as meeting the standards in Code of Federal 
351.26 	Regulations, title 42, part 483, for an intermediate care facility which provides services for 
351.27 	persons with developmental disabilities who require 24-hour supervision and active treatment 
351.28 	for medical, behavioral, or habilitation needs. For purposes of this subdivision, a child 
351.29 	requires a level of care provided in an ICF/DD if the commissioner finds that the child has 
351.30 	a developmental disability in accordance with section 256B.092, is in need of a 24-hour 
351.31 	plan of care and active treatment similar to persons with developmental disabilities, and 
351.32 	there is a reasonable indication that the child will need ICF/DD services.
351.33 	(e) For purposes of this subdivision, a person requires the level of care provided in a 
351.34 	nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental 
351.35 	health treatment because of specific symptoms or functional impairments associated with 
352.1 	a serious mental illness or disorder diagnosis, which meet severity criteria for mental health 
352.2 	established by the commissioner and published in March 1997 as the Minnesota Mental 
352.3 	Health Level of Care for Children and Adolescents with Severe Emotional Disorders.
352.4 	(f) The determination of the level of care needed by the child shall be made by the 
352.5 	commissioner based on information supplied to the commissioner by (1) the parent or 
352.6 	guardian, (2) the child's physician or physicians, advanced practice registered nurse or 
352.7 	advanced practice registered nurses, or physician assistant or physician assistants, and (3) 
352.8 	other professionals as requested by the commissioner. The commissioner shall establish a 
352.9 	screening team to conduct the level of care determinations according to this subdivision.
352.10 	(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 
352.11 	must assess the case to determine whether:
352.12 	(1) the child qualifies as a disabled individual under United States Code, title 42, section 
352.13 	1382c(a), and would be eligible for medical assistance if residing in a medical institution; 
352.14 	and
352.15 	(2) the cost of medical assistance services for the child, if eligible under this subdivision, 
352.16 	would not be more than the cost to medical assistance if the child resides in a medical 
352.17 	institution to be determined as follows:
352.18 	(i) for a child who requires a level of care provided in an ICF/DD, the cost of care for 
352.19 	the child in an institution shall be determined using the average payment rate established 
352.20 	for the regional treatment centers that are certified as ICF's/DD;
352.21 	(ii) for a child who requires a level of care provided in an inpatient hospital setting 
352.22 	according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 
352.23 	Rules, part 9505.3520, items F and G; and
352.24 	(iii) for a child who requires a level of care provided in a nursing facility according to 
352.25 	paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota Rules, 
352.26 	part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates 
352.27 	which would be paid for children under age 16. The commissioner may authorize an amount 
352.28 	up to the amount medical assistance would pay for a child referred to the commissioner by 
352.29 	the preadmission screening team under section 256B.0911.

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

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

353.13 	Sec. 62. Minnesota Statutes 2024, section 256B.0943, subdivision 1, is amended to read:
353.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
353.15 	the meanings given them.
353.16 	(b) "Children's therapeutic services and supports" means the flexible package of mental 
353.17 	health services for children who require varying therapeutic and rehabilitative levels of 
353.18 	intervention to treat a diagnosed emotional disturbance, as defined in section 245.4871, 
353.19 	subdivision 15, or a diagnosed mental illness, as defined in section 245.462, subdivision 
353.20 	20, or 245.4871, subdivision 15. The services are time-limited interventions that are delivered 
353.21 	using various treatment modalities and combinations of services designed to reach treatment 
353.22 	outcomes identified in the individual treatment plan.
353.23 	(c) "Clinical trainee" means a staff person who is qualified according to section 245I.04, 
353.24 	subdivision 6.
353.25 	(d) "Crisis planning" has the meaning given in section 245.4871, subdivision 9a.
353.26 	(e) "Culturally competent provider" means a provider who understands and can utilize 
353.27 	to a client's benefit the client's culture when providing services to the client. A provider 
353.28 	may be culturally competent because the provider is of the same cultural or ethnic group 
353.29 	as the client or the provider has developed the knowledge and skills through training and 
353.30 	experience to provide services to culturally diverse clients.
353.31 	(f) "Day treatment program" for children means a site-based structured mental health 
353.32 	program consisting of psychotherapy for three or more individuals and individual or group 
354.1 	skills training provided by a team, under the treatment supervision of a mental health 
354.2 	professional.
354.3 	(g) "Direct service time" means the time that a mental health professional, clinical trainee, 
354.4 	mental health practitioner, or mental health behavioral aide spends face-to-face with a client 
354.5 	and the client's family or providing covered services through telehealth as defined under 
354.6 	section 256B.0625, subdivision 3b. Direct service time includes time in which the provider 
354.7 	obtains a client's history, develops a client's treatment plan, records individual treatment 
354.8 	outcomes, or provides service components of children's therapeutic services and supports. 
354.9 	Direct service time does not include time doing work before and after providing direct 
354.10 	services, including scheduling or maintaining clinical records.
354.11 	(h) "Direction of mental health behavioral aide" means the activities of a mental health 
354.12 	professional, clinical trainee, or mental health practitioner in guiding the mental health 
354.13 	behavioral aide in providing services to a client. The direction of a mental health behavioral 
354.14 	aide must be based on the client's individual treatment plan and meet the requirements in 
354.15 	subdivision 6, paragraph (b), clause (7).
354.16 	(i) "Emotional disturbance" has the meaning given in section 245.4871, subdivision 15.
354.17 	(j) (i) "Individual treatment plan" means the plan described in section 245I.10, 
354.18 	subdivisions 7 and 8.
354.19 	(k) (j) "Mental health behavioral aide services" means medically necessary one-on-one 
354.20 	activities performed by a mental health behavioral aide qualified according to section 
354.21 	245I.04, subdivision 16, to assist a child retain or generalize psychosocial skills as previously 
354.22 	trained by a mental health professional, clinical trainee, or mental health practitioner and 
354.23 	as described in the child's individual treatment plan and individual behavior plan. Activities 
354.24 	involve working directly with the child or child's family as provided in subdivision 9, 
354.25 	paragraph (b), clause (4).
354.26 	(l) (k) "Mental health certified family peer specialist" means a staff person who is 
354.27 	qualified according to section 245I.04, subdivision 12.
354.28 	(m) (l) "Mental health practitioner" means a staff person who is qualified according to 
354.29 	section 245I.04, subdivision 4.
354.30 	(n) (m) "Mental health professional" means a staff person who is qualified according to 
354.31 	section 245I.04, subdivision 2.
354.32 	(o) (n) "Mental health service plan development" includes:
354.33 	(1) development and revision of a child's individual treatment plan; and
355.1 	(2) administering and reporting standardized outcome measurements approved by the 
355.2 	commissioner, as periodically needed to evaluate the effectiveness of treatment.
355.3 	(p) (o) "Mental illness," for persons at least age 18 but under age 21, has the meaning 
355.4 	given in section 245.462, subdivision 20, paragraph (a), for persons at least 18 years of age 
355.5 	but under 21 years of age, and has the meaning given in section 245.4871, subdivision 15, 
355.6 	for children under 18 years of age.
355.7 	(q) (p) "Psychotherapy" means the treatment described in section 256B.0671, subdivision 
355.8 	11.
355.9 	(r) (q) "Rehabilitative services" or "psychiatric rehabilitation services" means 
355.10 	interventions to: (1) restore a child or adolescent to an age-appropriate developmental 
355.11 	trajectory that had been disrupted by a psychiatric illness; or (2) enable the child to 
355.12 	self-monitor, compensate for, cope with, counteract, or replace psychosocial skills deficits 
355.13 	or maladaptive skills acquired over the course of a psychiatric illness. Psychiatric 
355.14 	rehabilitation services for children combine coordinated psychotherapy to address internal 
355.15 	psychological, emotional, and intellectual processing deficits, and skills training to restore 
355.16 	personal and social functioning. Psychiatric rehabilitation services establish a progressive 
355.17 	series of goals with each achievement building upon a prior achievement.
355.18 	(s) (r) "Skills training" means individual, family, or group training, delivered by or under 
355.19 	the supervision of a mental health professional, designed to facilitate the acquisition of 
355.20 	psychosocial skills that are medically necessary to rehabilitate the child to an age-appropriate 
355.21 	developmental trajectory heretofore disrupted by a psychiatric illness or to enable the child 
355.22 	to self-monitor, compensate for, cope with, counteract, or replace skills deficits or 
355.23 	maladaptive skills acquired over the course of a psychiatric illness. Skills training is subject 
355.24 	to the service delivery requirements under subdivision 9, paragraph (b), clause (2).
355.25 	(t) (s) "Standard diagnostic assessment" means the assessment described in section 
355.26 	245I.10, subdivision 6.
355.27 	(u) (t) "Treatment supervision" means the supervision described in section 245I.06.

355.28 	Sec. 63. Minnesota Statutes 2024, section 256B.0943, subdivision 3, is amended to read:
355.29 		Subd. 3.Determination of client eligibility. (a) A client's eligibility to receive children's 
355.30 	therapeutic services and supports under this section shall be determined based on a standard 
355.31 	diagnostic assessment by a mental health professional or a clinical trainee that is performed 
355.32 	within one year before the initial start of service and updated as required under section 
355.33 	245I.10, subdivision 2. The standard diagnostic assessment must:
356.1 	(1) determine whether a child under age 18 has a diagnosis of emotional disturbance
356.2 	mental illness or, if the person is between the ages of 18 and 21, whether the person has a 
356.3 	mental illness;
356.4 	(2) document children's therapeutic services and supports as medically necessary to 
356.5 	address an identified disability, functional impairment, and the individual client's needs and 
356.6 	goals; and
356.7 	(3) be used in the development of the individual treatment plan.
356.8 	(b) Notwithstanding paragraph (a), a client may be determined to be eligible for up to 
356.9 	five days of day treatment under this section based on a hospital's medical history and 
356.10 	presentation examination of the client.
356.11 	(c) Children's therapeutic services and supports include development and rehabilitative 
356.12 	services that support a child's developmental treatment needs.

356.13 	Sec. 64. Minnesota Statutes 2024, section 256B.0943, subdivision 9, is amended to read:
356.14 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a certified 
356.15 	provider entity must ensure that:
356.16 	(1) the provider's caseload size should reasonably enable the provider to play an active 
356.17 	role in service planning, monitoring, and delivering services to meet the client's and client's 
356.18 	family's needs, as specified in each client's individual treatment plan;
356.19 	(2) site-based programs, including day treatment programs, provide staffing and facilities 
356.20 	to ensure the client's health, safety, and protection of rights, and that the programs are able 
356.21 	to implement each client's individual treatment plan; and
356.22 	(3) a day treatment program is provided to a group of clients by a team under the treatment 
356.23 	supervision of a mental health professional. The day treatment program must be provided 
356.24 	in and by: (i) an outpatient hospital accredited by the Joint Commission on Accreditation 
356.25 	of Health Organizations and licensed under sections 144.50 to 144.55; (ii) a community 
356.26 	mental health center under section 245.62; or (iii) an entity that is certified under subdivision 
356.27 	4 to operate a program that meets the requirements of section 245.4884, subdivision 2, and 
356.28 	Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must stabilize 
356.29 	the client's mental health status while developing and improving the client's independent 
356.30 	living and socialization skills. The goal of the day treatment program must be to reduce or 
356.31 	relieve the effects of mental illness and provide training to enable the client to live in the 
356.32 	community. The remainder of the structured treatment program may include patient and/or 
356.33 	family or group psychotherapy, and individual or group skills training, if included in the 
357.1 	client's individual treatment plan. Day treatment programs are not part of inpatient or 
357.2 	residential treatment services. When a day treatment group that meets the minimum group 
357.3 	size requirement temporarily falls below the minimum group size because of a member's 
357.4 	temporary absence, medical assistance covers a group session conducted for the group 
357.5 	members in attendance. A day treatment program may provide fewer than the minimally 
357.6 	required hours for a particular child during a billing period in which the child is transitioning 
357.7 	into, or out of, the program.
357.8 	(b) To be eligible for medical assistance payment, a provider entity must deliver the 
357.9 	service components of children's therapeutic services and supports in compliance with the 
357.10 	following requirements:
357.11 	(1) psychotherapy to address the child's underlying mental health disorder must be 
357.12 	documented as part of the child's ongoing treatment. A provider must deliver or arrange for 
357.13 	medically necessary psychotherapy unless the child's parent or caregiver chooses not to 
357.14 	receive it or the provider determines that psychotherapy is no longer medically necessary. 
357.15 	When a provider determines that psychotherapy is no longer medically necessary, the 
357.16 	provider must update required documentation, including but not limited to the individual 
357.17 	treatment plan, the child's medical record, or other authorizations, to include the 
357.18 	determination. When a provider determines that a child needs psychotherapy but 
357.19 	psychotherapy cannot be delivered due to a shortage of licensed mental health professionals 
357.20 	in the child's community, the provider must document the lack of access in the child's 
357.21 	medical record;
357.22 	(2) individual, family, or group skills training is subject to the following requirements:
357.23 	(i) a mental health professional, clinical trainee, or mental health practitioner shall provide 
357.24 	skills training;
357.25 	(ii) skills training delivered to a child or the child's family must be targeted to the specific 
357.26 	deficits or maladaptations of the child's mental health disorder and must be prescribed in 
357.27 	the child's individual treatment plan;
357.28 	(iii) group skills training may be provided to multiple recipients who, because of the 
357.29 	nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from 
357.30 	interaction in a group setting, which must be staffed as follows:
357.31 	(A) one mental health professional, clinical trainee, or mental health practitioner must 
357.32 	work with a group of three to eight clients; or
358.1 	(B) any combination of two mental health professionals, clinical trainees, or mental 
358.2 	health practitioners must work with a group of nine to 12 clients;
358.3 	(iv) a mental health professional, clinical trainee, or mental health practitioner must have 
358.4 	taught the psychosocial skill before a mental health behavioral aide may practice that skill 
358.5 	with the client; and
358.6 	(v) for group skills training, when a skills group that meets the minimum group size 
358.7 	requirement temporarily falls below the minimum group size because of a group member's 
358.8 	temporary absence, the provider may conduct the session for the group members in 
358.9 	attendance;
358.10 	(3) crisis planning to a child and family must include development of a written plan that 
358.11 	anticipates the particular factors specific to the child that may precipitate a psychiatric crisis 
358.12 	for the child in the near future. The written plan must document actions that the family 
358.13 	should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for 
358.14 	direct intervention and support services to the child and the child's family. Crisis planning 
358.15 	must include preparing resources designed to address abrupt or substantial changes in the 
358.16 	functioning of the child or the child's family when sudden change in behavior or a loss of 
358.17 	usual coping mechanisms is observed, or the child begins to present a danger to self or 
358.18 	others;
358.19 	(4) mental health behavioral aide services must be medically necessary treatment services, 
358.20 	identified in the child's individual treatment plan.
358.21 	To be eligible for medical assistance payment, mental health behavioral aide services must 
358.22 	be delivered to a child who has been diagnosed with an emotional disturbance or a mental 
358.23 	illness, as provided in subdivision 1, paragraph (a). The mental health behavioral aide must 
358.24 	document the delivery of services in written progress notes. Progress notes must reflect 
358.25 	implementation of the treatment strategies, as performed by the mental health behavioral 
358.26 	aide and the child's responses to the treatment strategies; and
358.27 	(5) mental health service plan development must be performed in consultation with the 
358.28 	child's family and, when appropriate, with other key participants in the child's life by the 
358.29 	child's treating mental health professional or clinical trainee or by a mental health practitioner 
358.30 	and approved by the treating mental health professional. Treatment plan drafting consists 
358.31 	of development, review, and revision by face-to-face or electronic communication. The 
358.32 	provider must document events, including the time spent with the family and other key 
358.33 	participants in the child's life to approve the individual treatment plan. Medical assistance 
358.34 	covers service plan development before completion of the child's individual treatment plan. 
359.1 	Service plan development is covered only if a treatment plan is completed for the child. If 
359.2 	upon review it is determined that a treatment plan was not completed for the child, the 
359.3 	commissioner shall recover the payment for the service plan development.

359.4 	Sec. 65. Minnesota Statutes 2024, section 256B.0943, subdivision 12, is amended to read:
359.5 		Subd. 12.Excluded services. The following services are not eligible for medical 
359.6 	assistance payment as children's therapeutic services and supports:
359.7 	(1) service components of children's therapeutic services and supports simultaneously 
359.8 	provided by more than one provider entity unless prior authorization is obtained;
359.9 	(2) treatment by multiple providers within the same agency at the same clock time, 
359.10 	unless one service is delivered to the child and the other service is delivered to the child's 
359.11 	family or treatment team without the child present;
359.12 	(3) children's therapeutic services and supports provided in violation of medical assistance 
359.13 	policy in Minnesota Rules, part 9505.0220;
359.14 	(4) mental health behavioral aide services provided by a personal care assistant who is 
359.15 	not qualified as a mental health behavioral aide and employed by a certified children's 
359.16 	therapeutic services and supports provider entity;
359.17 	(5) service components of CTSS that are the responsibility of a residential or program 
359.18 	license holder, including foster care providers under the terms of a service agreement or 
359.19 	administrative rules governing licensure; and
359.20 	(6) adjunctive activities that may be offered by a provider entity but are not otherwise 
359.21 	covered by medical assistance, including:
359.22 	(i) a service that is primarily recreation oriented or that is provided in a setting that is 
359.23 	not medically supervised. This includes sports activities, exercise groups, activities such as 
359.24 	craft hours, leisure time, social hours, meal or snack time, trips to community activities, 
359.25 	and tours;
359.26 	(ii) a social or educational service that does not have or cannot reasonably be expected 
359.27 	to have a therapeutic outcome related to the client's emotional disturbance mental illness;
359.28 	(iii) prevention or education programs provided to the community; and
359.29 	(iv) treatment for clients with primary diagnoses of alcohol or other drug abuse.

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

360.10 	Sec. 67. Minnesota Statutes 2024, section 256B.0945, subdivision 1, is amended to read:
360.11 		Subdivision 1.Residential services; provider qualifications. (a) Counties must arrange 
360.12 	to provide residential services for children with severe emotional disturbance serious mental 
360.13 	illness according to sections 245.4882, 245.4885, and this section.
360.14 	(b) Services must be provided by a facility that is licensed according to section 245.4882 
360.15 	and administrative rules promulgated thereunder, and under contract with the county.
360.16 	(c) Eligible service costs may be claimed for a facility that is located in a state that 
360.17 	borders Minnesota if:
360.18 	(1) the facility is the closest facility to the child's home, providing the appropriate level 
360.19 	of care; and
360.20 	(2) the commissioner of human services has completed an inspection of the out-of-state 
360.21 	program according to the interagency agreement with the commissioner of corrections under 
360.22 	section 260B.198, subdivision 11, paragraph (b), and the program has been certified by the 
360.23 	commissioner of corrections under section 260B.198, subdivision 11, paragraph (a), to 
360.24 	substantially meet the standards applicable to children's residential mental health treatment 
360.25 	programs under Minnesota Rules, chapter 2960. Nothing in this section requires the 
360.26 	commissioner of human services to enforce the background study requirements under chapter 
360.27 	245C or the requirements related to prevention and investigation of alleged maltreatment 
360.28 	under section 626.557 or chapter 260E. Complaints received by the commissioner of human 
360.29 	services must be referred to the out-of-state licensing authority for possible follow-up.
360.30 	(d) Notwithstanding paragraph (b), eligible service costs may be claimed for an 
360.31 	out-of-state inpatient treatment facility if:
360.32 	(1) the facility specializes in providing mental health services to children who are deaf, 
360.33 	deafblind, or hard-of-hearing and who use American Sign Language as their first language;
361.1 	(2) the facility is licensed by the state in which it is located; and
361.2 	(3) the state in which the facility is located is a member state of the Interstate Compact 
361.3 	on Mental Health.

361.4 	Sec. 68. Minnesota Statutes 2024, section 256B.0946, subdivision 6, is amended to read:
361.5 		Subd. 6.Excluded services. (a) Services in clauses (1) to (7) are not covered under this 
361.6 	section and are not eligible for medical assistance payment as components of children's 
361.7 	intensive behavioral health services, but may be billed separately:
361.8 	(1) inpatient psychiatric hospital treatment;
361.9 	(2) mental health targeted case management;
361.10 	(3) partial hospitalization;
361.11 	(4) medication management;
361.12 	(5) children's mental health day treatment services;
361.13 	(6) crisis response services under section 256B.0624;
361.14 	(7) transportation; and
361.15 	(8) mental health certified family peer specialist services under section 256B.0616.
361.16 	(b) Children receiving intensive behavioral health services are not eligible for medical 
361.17 	assistance reimbursement for the following services while receiving children's intensive 
361.18 	behavioral health services:
361.19 	(1) psychotherapy and skills training components of children's therapeutic services and 
361.20 	supports under section 256B.0943;
361.21 	(2) mental health behavioral aide services as defined in section 256B.0943, subdivision 
361.22 	1, paragraph (l) (j);
361.23 	(3) home and community-based waiver services;
361.24 	(4) mental health residential treatment; and
361.25 	(5) medical assistance room and board rate, as defined in section 256B.056, subdivision 
361.26 	5d.

362.1 	Sec. 69. Minnesota Statutes 2024, section 256B.0947, subdivision 3a, is amended to read:
362.2 		Subd. 3a.Required service components. (a) Intensive nonresidential rehabilitative 
362.3 	mental health services, supports, and ancillary activities that are covered by a single daily 
362.4 	rate per client must include the following, as needed by the individual client:
362.5 	(1) individual, family, and group psychotherapy;
362.6 	(2) individual, family, and group skills training, as defined in section 256B.0943, 
362.7 	subdivision 1, paragraph (u) (r);
362.8 	(3) crisis planning as defined in section 245.4871, subdivision 9a;
362.9 	(4) medication management provided by a physician, an advanced practice registered 
362.10 	nurse with certification in psychiatric and mental health care, or a physician assistant;
362.11 	(5) mental health case management as provided in section 256B.0625, subdivision 20;
362.12 	(6) medication education services as defined in this section;
362.13 	(7) care coordination by a client-specific lead worker assigned by and responsible to the 
362.14 	treatment team;
362.15 	(8) psychoeducation of and consultation and coordination with the client's biological, 
362.16 	adoptive, or foster family and, in the case of a youth living independently, the client's 
362.17 	immediate nonfamilial support network;
362.18 	(9) clinical consultation to a client's employer or school or to other service agencies or 
362.19 	to the courts to assist in managing the mental illness or co-occurring disorder and to develop 
362.20 	client support systems;
362.21 	(10) coordination with, or performance of, crisis intervention and stabilization services 
362.22 	as defined in section 256B.0624;
362.23 	(11) transition services;
362.24 	(12) co-occurring substance use disorder treatment as defined in section 245I.02, 
362.25 	subdivision 11; and
362.26 	(13) housing access support that assists clients to find, obtain, retain, and move to safe 
362.27 	and adequate housing. Housing access support does not provide monetary assistance for 
362.28 	rent, damage deposits, or application fees.
362.29 	(b) The provider shall ensure and document the following by means of performing the 
362.30 	required function or by contracting with a qualified person or entity: client access to crisis 
363.1 	intervention services, as defined in section 256B.0624, and available 24 hours per day and 
363.2 	seven days per week.

363.3 	Sec. 70. Minnesota Statutes 2024, section 256B.69, subdivision 23, is amended to read:
363.4 		Subd. 23.Alternative services; elderly persons and persons with a disability. (a) The 
363.5 	commissioner may implement demonstration projects to create alternative integrated delivery 
363.6 	systems for acute and long-term care services to elderly persons and persons with disabilities 
363.7 	as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve 
363.8 	access to quality services, and mitigate future cost increases. The commissioner may seek 
363.9 	federal authority to combine Medicare and Medicaid capitation payments for the purpose 
363.10 	of such demonstrations and may contract with Medicare-approved special needs plans that 
363.11 	are offered by a demonstration provider or by an entity that is directly or indirectly wholly 
363.12 	owned or controlled by a demonstration provider to provide Medicaid services. Medicare 
363.13 	funds and services shall be administered according to the terms and conditions of the federal 
363.14 	contract and demonstration provisions. For the purpose of administering medical assistance 
363.15 	funds, demonstrations under this subdivision are subject to subdivisions 1 to 22. The 
363.16 	provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, 
363.17 	with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items 
363.18 	B and C, which do not apply to persons enrolling in demonstrations under this section. All 
363.19 	enforcement and rulemaking powers available under chapters 62D, 62M, and 62Q are hereby 
363.20 	granted to the commissioner of health with respect to Medicare-approved special needs 
363.21 	plans with which the commissioner contracts to provide Medicaid services under this section. 
363.22 	An initial open enrollment period may be provided. Persons who disenroll from 
363.23 	demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
363.24 	to 9500.1464. When a person is enrolled in a health plan under these demonstrations and 
363.25 	the health plan's participation is subsequently terminated for any reason, the person shall 
363.26 	be provided an opportunity to select a new health plan and shall have the right to change 
363.27 	health plans within the first 60 days of enrollment in the second health plan. Persons required 
363.28 	to participate in health plans under this section who fail to make a choice of health plan 
363.29 	shall not be randomly assigned to health plans under these demonstrations. Notwithstanding 
363.30 	section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, 
363.31 	if adopted, for the purpose of demonstrations under this subdivision, the commissioner may 
363.32 	contract with managed care organizations, including counties, to serve only elderly persons 
363.33 	eligible for medical assistance, elderly persons with a disability, or persons with a disability 
363.34 	only. For persons with a primary diagnosis of developmental disability, serious and persistent 
363.35 	mental illness, or serious emotional disturbance mental illness in children, the commissioner 
364.1 	must ensure that the county authority has approved the demonstration and contracting design. 
364.2 	Enrollment in these projects for persons with disabilities shall be voluntary. The 
364.3 	commissioner shall not implement any demonstration project under this subdivision for 
364.4 	persons with a primary diagnosis of developmental disabilities, serious and persistent mental 
364.5 	illness, or serious emotional disturbance, mental illness in children without approval of the 
364.6 	county board of the county in which the demonstration is being implemented.
364.7 	(b) MS 2009 Supplement [Expired, 2003 c 47 s 4; 2007 c 147 art 7 s 60]
364.8 	(c) Before implementation of a demonstration project for persons with a disability, the 
364.9 	commissioner must provide information to appropriate committees of the house of 
364.10 	representatives and senate and must involve representatives of affected disability groups in 
364.11 	the design of the demonstration projects.
364.12 	(d) A nursing facility reimbursed under the alternative reimbursement methodology in 
364.13 	section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
364.14 	provide services under paragraph (a). The commissioner shall amend the state plan and seek 
364.15 	any federal waivers necessary to implement this paragraph.
364.16 	(e) The commissioner, in consultation with the commissioners of commerce and health, 
364.17 	may approve and implement programs for all-inclusive care for the elderly (PACE) according 
364.18 	to federal laws and regulations governing that program and state laws or rules applicable 
364.19 	to participating providers. A PACE provider is not required to be licensed or certified as a 
364.20 	health plan company as defined in section 62Q.01, subdivision 4. Persons age 55 and older 
364.21 	who have been screened by the county and found to be eligible for services under the elderly 
364.22 	waiver or community access for disability inclusion or who are already eligible for Medicaid 
364.23 	but meet level of care criteria for receipt of waiver services may choose to enroll in the 
364.24 	PACE program. Medicare and Medicaid services will be provided according to this 
364.25 	subdivision and federal Medicare and Medicaid requirements governing PACE providers 
364.26 	and programs. PACE enrollees will receive Medicaid home and community-based services 
364.27 	through the PACE provider as an alternative to services for which they would otherwise be 
364.28 	eligible through home and community-based waiver programs and Medicaid State Plan 
364.29 	Services. The commissioner shall establish Medicaid rates for PACE providers that do not 
364.30 	exceed costs that would have been incurred under fee-for-service or other relevant managed 
364.31 	care programs operated by the state.
364.32 	(f) The commissioner shall seek federal approval to expand the Minnesota disability 
364.33 	health options (MnDHO) program established under this subdivision in stages, first to 
364.34 	regional population centers outside the seven-county metro area and then to all areas of the 
365.1 	state. Until July 1, 2009, expansion for MnDHO projects that include home and 
365.2 	community-based services is limited to the two projects and service areas in effect on March 
365.3 	1, 2006. Enrollment in integrated MnDHO programs that include home and community-based 
365.4 	services shall remain voluntary. Costs for home and community-based services included 
365.5 	under MnDHO must not exceed costs that would have been incurred under the fee-for-service 
365.6 	program. Notwithstanding whether expansion occurs under this paragraph, in determining 
365.7 	MnDHO payment rates and risk adjustment methods, the commissioner must consider the 
365.8 	methods used to determine county allocations for home and community-based program 
365.9 	participants. If necessary to reduce MnDHO rates to comply with the provision regarding 
365.10 	MnDHO costs for home and community-based services, the commissioner shall achieve 
365.11 	the reduction by maintaining the base rate for contract year 2010 for services provided under 
365.12 	the community access for disability inclusion waiver at the same level as for contract year 
365.13 	2009. The commissioner may apply other reductions to MnDHO rates to implement decreases 
365.14 	in provider payment rates required by state law. Effective January 1, 2011, enrollment and 
365.15 	operation of the MnDHO program in effect during 2010 shall cease. The commissioner may 
365.16 	reopen the program provided all applicable conditions of this section are met. In developing 
365.17 	program specifications for expansion of integrated programs, the commissioner shall involve 
365.18 	and consult the state-level stakeholder group established in subdivision 28, paragraph (d), 
365.19 	including consultation on whether and how to include home and community-based waiver 
365.20 	programs. Plans to reopen MnDHO projects shall be presented to the chairs of the house of 
365.21 	representatives and senate committees with jurisdiction over health and human services 
365.22 	policy and finance prior to implementation.
365.23 	(g) Notwithstanding section 256B.0621, health plans providing services under this section 
365.24 	are responsible for home care targeted case management and relocation targeted case 
365.25 	management. Services must be provided according to the terms of the waivers and contracts 
365.26 	approved by the federal government.

365.27 	Sec. 71. Minnesota Statutes 2024, section 256B.77, subdivision 7a, is amended to read:
365.28 		Subd. 7a.Eligible individuals. (a) Persons are eligible for the demonstration project as 
365.29 	provided in this subdivision.
365.30 	(b) "Eligible individuals" means those persons living in the demonstration site who are 
365.31 	eligible for medical assistance and are disabled based on a disability determination under 
365.32 	section 256B.055, subdivisions 7 and 12, or who are eligible for medical assistance and 
365.33 	have been diagnosed as having:
365.34 	(1) serious and persistent mental illness as defined in section 245.462, subdivision 20;
366.1 	(2) severe emotional disturbance serious mental illness as defined in section 245.4871, 
366.2 	subdivision 6; or
366.3 	(3) developmental disability, or being a person with a developmental disability as defined 
366.4 	in section 252A.02, or a related condition as defined in section 256B.02, subdivision 11.
366.5 	Other individuals may be included at the option of the county authority based on agreement 
366.6 	with the commissioner.
366.7 	(c) Eligible individuals include individuals in excluded time status, as defined in chapter 
366.8 	256G. Enrollees in excluded time at the time of enrollment shall remain in excluded time 
366.9 	status as long as they live in the demonstration site and shall be eligible for 90 days after 
366.10 	placement outside the demonstration site if they move to excluded time status in a county 
366.11 	within Minnesota other than their county of financial responsibility.
366.12 	(d) A person who is a sexual psychopathic personality as defined in section 253D.02, 
366.13 	subdivision 15, or a sexually dangerous person as defined in section 253D.02, subdivision 
366.14 	16, is excluded from enrollment in the demonstration project.

366.15 	Sec. 72. Minnesota Statutes 2024, section 260B.157, subdivision 3, is amended to read:
366.16 		Subd. 3.Juvenile treatment screening team. (a) The local social services agency shall 
366.17 	establish a juvenile treatment screening team to conduct screenings and prepare case plans 
366.18 	under this subdivision. The team, which may be the team constituted under section 245.4885 
366.19 	or 256B.092 or chapter 254B, shall consist of social workers, juvenile justice professionals, 
366.20 	and persons with expertise in the treatment of juveniles who are emotionally disabled, 
366.21 	chemically dependent, or have a developmental disability. The team shall involve parents 
366.22 	or guardians in the screening process as appropriate. The team may be the same team as 
366.23 	defined in section 260C.157, subdivision 3.
366.24 	(b) If the court, prior to, or as part of, a final disposition, proposes to place a child:
366.25 	(1) for the primary purpose of treatment for an emotional disturbance mental illness, 
366.26 	and residential placement is consistent with section 260.012, a developmental disability, or 
366.27 	chemical dependency in a residential treatment facility out of state or in one which is within 
366.28 	the state and licensed by the commissioner of human services under chapter 245A; or
366.29 	(2) in any out-of-home setting potentially exceeding 30 days in duration, including a 
366.30 	post-dispositional placement in a facility licensed by the commissioner of corrections or 
366.31 	human services, the court shall notify the county welfare agency. The county's juvenile 
366.32 	treatment screening team must either:
367.1 	(i) screen and evaluate the child and file its recommendations with the court within 14 
367.2 	days of receipt of the notice; or
367.3 	(ii) elect not to screen a given case, and notify the court of that decision within three 
367.4 	working days.
367.5 	(c) If the screening team has elected to screen and evaluate the child, the child may not 
367.6 	be placed for the primary purpose of treatment for an emotional disturbance mental illness, 
367.7 	a developmental disability, or chemical dependency, in a residential treatment facility out 
367.8 	of state nor in a residential treatment facility within the state that is licensed under chapter 
367.9 	245A, unless one of the following conditions applies:
367.10 	(1) a treatment professional certifies that an emergency requires the placement of the 
367.11 	child in a facility within the state;
367.12 	(2) the screening team has evaluated the child and recommended that a residential 
367.13 	placement is necessary to meet the child's treatment needs and the safety needs of the 
367.14 	community, that it is a cost-effective means of meeting the treatment needs, and that it will 
367.15 	be of therapeutic value to the child; or
367.16 	(3) the court, having reviewed a screening team recommendation against placement, 
367.17 	determines to the contrary that a residential placement is necessary. The court shall state 
367.18 	the reasons for its determination in writing, on the record, and shall respond specifically to 
367.19 	the findings and recommendation of the screening team in explaining why the 
367.20 	recommendation was rejected. The attorney representing the child and the prosecuting 
367.21 	attorney shall be afforded an opportunity to be heard on the matter.

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

367.26 	Sec. 74. Minnesota Statutes 2024, section 260C.007, subdivision 26d, is amended to read:
367.27 		Subd. 26d.Qualified residential treatment program. "Qualified residential treatment 
367.28 	program" means a children's residential treatment program licensed under chapter 245A or 
367.29 	licensed or approved by a tribe that is approved to receive foster care maintenance payments 
367.30 	under section 142A.418 that:
367.31 	(1) has a trauma-informed treatment model designed to address the needs of children 
367.32 	with serious emotional or behavioral disorders or disturbances or mental illnesses;
368.1 	(2) has registered or licensed nursing staff and other licensed clinical staff who:
368.2 	(i) provide care within the scope of their practice; and
368.3 	(ii) are available 24 hours per day and seven days per week;
368.4 	(3) is accredited by any of the following independent, nonprofit organizations: the 
368.5 	Commission on Accreditation of Rehabilitation Facilities (CARF), the Joint Commission 
368.6 	on Accreditation of Healthcare Organizations (JCAHO), and the Council on Accreditation 
368.7 	(COA), or any other nonprofit accrediting organization approved by the United States 
368.8 	Department of Health and Human Services;
368.9 	(4) if it is in the child's best interests, facilitates participation of the child's family members 
368.10 	in the child's treatment programming consistent with the child's out-of-home placement 
368.11 	plan under sections 260C.212, subdivision 1, and 260C.708;
368.12 	(5) facilitates outreach to family members of the child, including siblings;
368.13 	(6) documents how the facility facilitates outreach to the child's parents and relatives, 
368.14 	as well as documents the child's parents' and other relatives' contact information;
368.15 	(7) documents how the facility includes family members in the child's treatment process, 
368.16 	including after the child's discharge, and how the facility maintains the child's sibling 
368.17 	connections; and
368.18 	(8) provides the child and child's family with discharge planning and family-based 
368.19 	aftercare support for at least six months after the child's discharge. Aftercare support may 
368.20 	include clinical care consultation under section 256B.0671, subdivision 7, and mental health 
368.21 	certified family peer specialist services under section 256B.0616.

368.22 	Sec. 75. Minnesota Statutes 2024, section 260C.007, subdivision 27b, is amended to read:
368.23 		Subd. 27b.Residential treatment facility. "Residential treatment facility" means a 
368.24 	24-hour-a-day program that provides treatment for children with emotional disturbance
368.25 	mental illness, consistent with section 245.4871, subdivision 32, and includes a licensed 
368.26 	residential program specializing in caring 24 hours a day for children with a developmental 
368.27 	delay or related condition. A residential treatment facility does not include a psychiatric 
368.28 	residential treatment facility under section 256B.0941 or a family foster home as defined 
368.29 	in section 260C.007, subdivision 16b.

369.1 	Sec. 76. Minnesota Statutes 2024, section 260C.157, subdivision 3, is amended to read:
369.2 		Subd. 3.Juvenile treatment screening team. (a) The responsible social services agency 
369.3 	shall establish a juvenile treatment screening team to conduct screenings under this chapter 
369.4 	and chapter 260D, for a child to receive treatment for an emotional disturbance a mental 
369.5 	illness, a developmental disability, or related condition in a residential treatment facility 
369.6 	licensed by the commissioner of human services under chapter 245A, or licensed or approved 
369.7 	by a tribe. A screening team is not required for a child to be in: (1) a residential facility 
369.8 	specializing in prenatal, postpartum, or parenting support; (2) a facility specializing in 
369.9 	high-quality residential care and supportive services to children and youth who have been 
369.10 	or are at risk of becoming victims of sex trafficking or commercial sexual exploitation; (3) 
369.11 	supervised settings for youth who are 18 years of age or older and living independently; or 
369.12 	(4) a licensed residential family-based treatment facility for substance abuse consistent with 
369.13 	section 260C.190. Screenings are also not required when a child must be placed in a facility 
369.14 	due to an emotional crisis or other mental health emergency.
369.15 	(b) The responsible social services agency shall conduct screenings within 15 days of a 
369.16 	request for a screening, unless the screening is for the purpose of residential treatment and 
369.17 	the child is enrolled in a prepaid health program under section 256B.69, in which case the 
369.18 	agency shall conduct the screening within ten working days of a request. The responsible 
369.19 	social services agency shall convene the juvenile treatment screening team, which may be 
369.20 	constituted under section 245.4885, 254B.05, or 256B.092. The team shall consist of social 
369.21 	workers; persons with expertise in the treatment of juveniles who are emotionally disturbed, 
369.22 	chemically dependent, or have a developmental disability; and the child's parent, guardian, 
369.23 	or permanent legal custodian. The team may include the child's relatives as defined in section 
369.24 	260C.007, subdivisions 26b and 27, the child's foster care provider, and professionals who 
369.25 	are a resource to the child's family such as teachers, medical or mental health providers, 
369.26 	and clergy, as appropriate, consistent with the family and permanency team as defined in 
369.27 	section 260C.007, subdivision 16a. Prior to forming the team, the responsible social services 
369.28 	agency must consult with the child's parents, the child if the child is age 14 or older, and, 
369.29 	if applicable, the child's tribe to obtain recommendations regarding which individuals to 
369.30 	include on the team and to ensure that the team is family-centered and will act in the child's 
369.31 	best interests. If the child, child's parents, or legal guardians raise concerns about specific 
369.32 	relatives or professionals, the team should not include those individuals. This provision 
369.33 	does not apply to paragraph (c).
369.34 	(c) If the agency provides notice to tribes under section 260.761, and the child screened 
369.35 	is an Indian child, the responsible social services agency must make a rigorous and concerted 
370.1 	effort to include a designated representative of the Indian child's tribe on the juvenile 
370.2 	treatment screening team, unless the child's tribal authority declines to appoint a 
370.3 	representative. The Indian child's tribe may delegate its authority to represent the child to 
370.4 	any other federally recognized Indian tribe, as defined in section 260.755, subdivision 12. 
370.5 	The provisions of the Indian Child Welfare Act of 1978, United States Code, title 25, sections 
370.6 	1901 to 1963, and the Minnesota Indian Family Preservation Act, sections 260.751 to 
370.7 	260.835, apply to this section.
370.8 	(d) If the court, prior to, or as part of, a final disposition or other court order, proposes 
370.9 	to place a child with an emotional disturbance or a mental illness, developmental disability,
370.10 	or related condition in residential treatment, the responsible social services agency must 
370.11 	conduct a screening. If the team recommends treating the child in a qualified residential 
370.12 	treatment program, the agency must follow the requirements of sections 260C.70 to 
370.13 	260C.714.
370.14 	The court shall ascertain whether the child is an Indian child and shall notify the 
370.15 	responsible social services agency and, if the child is an Indian child, shall notify the Indian 
370.16 	child's tribe as paragraph (c) requires.
370.17 	(e) When the responsible social services agency is responsible for placing and caring 
370.18 	for the child and the screening team recommends placing a child in a qualified residential 
370.19 	treatment program as defined in section 260C.007, subdivision 26d, the agency must: (1) 
370.20 	begin the assessment and processes required in section 260C.704 without delay; and (2) 
370.21 	conduct a relative search according to section 260C.221 to assemble the child's family and 
370.22 	permanency team under section 260C.706. Prior to notifying relatives regarding the family 
370.23 	and permanency team, the responsible social services agency must consult with the child's 
370.24 	parent or legal guardian, the child if the child is age 14 or older, and, if applicable, the child's 
370.25 	tribe to ensure that the agency is providing notice to individuals who will act in the child's 
370.26 	best interests. The child and the child's parents may identify a culturally competent qualified 
370.27 	individual to complete the child's assessment. The agency shall make efforts to refer the 
370.28 	assessment to the identified qualified individual. The assessment may not be delayed for 
370.29 	the purpose of having the assessment completed by a specific qualified individual.
370.30 	(f) When a screening team determines that a child does not need treatment in a qualified 
370.31 	residential treatment program, the screening team must:
370.32 	(1) document the services and supports that will prevent the child's foster care placement 
370.33 	and will support the child remaining at home;
371.1 	(2) document the services and supports that the agency will arrange to place the child 
371.2 	in a family foster home; or
371.3 	(3) document the services and supports that the agency has provided in any other setting.
371.4 	(g) When the Indian child's tribe or tribal health care services provider or Indian Health 
371.5 	Services provider proposes to place a child for the primary purpose of treatment for an 
371.6 	emotional disturbance mental illness, a developmental disability, or co-occurring emotional 
371.7 	disturbance mental illness and chemical dependency, the Indian child's tribe or the tribe 
371.8 	delegated by the child's tribe shall submit necessary documentation to the county juvenile 
371.9 	treatment screening team, which must invite the Indian child's tribe to designate a 
371.10 	representative to the screening team.
371.11 	(h) The responsible social services agency must conduct and document the screening in 
371.12 	a format approved by the commissioner of human services.

371.13 	Sec. 77. Minnesota Statutes 2024, section 260C.201, subdivision 1, is amended to read:
371.14 		Subdivision 1.Dispositions. (a) If the court finds that the child is in need of protection 
371.15 	or services or neglected and in foster care, the court shall enter an order making any of the 
371.16 	following dispositions of the case:
371.17 	(1) place the child under the protective supervision of the responsible social services 
371.18 	agency or child-placing agency in the home of a parent of the child under conditions 
371.19 	prescribed by the court directed to the correction of the child's need for protection or services:
371.20 	(i) the court may order the child into the home of a parent who does not otherwise have 
371.21 	legal custody of the child, however, an order under this section does not confer legal custody 
371.22 	on that parent;
371.23 	(ii) if the court orders the child into the home of a father who is not adjudicated, the 
371.24 	father must cooperate with paternity establishment proceedings regarding the child in the 
371.25 	appropriate jurisdiction as one of the conditions prescribed by the court for the child to 
371.26 	continue in the father's home; and
371.27 	(iii) the court may order the child into the home of a noncustodial parent with conditions 
371.28 	and may also order both the noncustodial and the custodial parent to comply with the 
371.29 	requirements of a case plan under subdivision 2; or
371.30 	(2) transfer legal custody to one of the following:
371.31 	(i) a child-placing agency; or
372.1 	(ii) the responsible social services agency. In making a foster care placement of a child 
372.2 	whose custody has been transferred under this subdivision, the agency shall make an 
372.3 	individualized determination of how the placement is in the child's best interests using the 
372.4 	placement consideration order for relatives and the best interest factors in section 260C.212, 
372.5 	subdivision 2, and may include a child colocated with a parent in a licensed residential 
372.6 	family-based substance use disorder treatment program under section 260C.190; or
372.7 	(3) order a trial home visit without modifying the transfer of legal custody to the 
372.8 	responsible social services agency under clause (2). Trial home visit means the child is 
372.9 	returned to the care of the parent or guardian from whom the child was removed for a period 
372.10 	not to exceed six months. During the period of the trial home visit, the responsible social 
372.11 	services agency:
372.12 	(i) shall continue to have legal custody of the child, which means that the agency may 
372.13 	see the child in the parent's home, at school, in a child care facility, or other setting as the 
372.14 	agency deems necessary and appropriate;
372.15 	(ii) shall continue to have the ability to access information under section 260C.208;
372.16 	(iii) shall continue to provide appropriate services to both the parent and the child during 
372.17 	the period of the trial home visit;
372.18 	(iv) without previous court order or authorization, may terminate the trial home visit in 
372.19 	order to protect the child's health, safety, or welfare and may remove the child to foster care;
372.20 	(v) shall advise the court and parties within three days of the termination of the trial 
372.21 	home visit when a visit is terminated by the responsible social services agency without a 
372.22 	court order; and
372.23 	(vi) shall prepare a report for the court when the trial home visit is terminated whether 
372.24 	by the agency or court order that describes the child's circumstances during the trial home 
372.25 	visit and recommends appropriate orders, if any, for the court to enter to provide for the 
372.26 	child's safety and stability. In the event a trial home visit is terminated by the agency by 
372.27 	removing the child to foster care without prior court order or authorization, the court shall 
372.28 	conduct a hearing within ten days of receiving notice of the termination of the trial home 
372.29 	visit by the agency and shall order disposition under this subdivision or commence 
372.30 	permanency proceedings under sections 260C.503 to 260C.515. The time period for the 
372.31 	hearing may be extended by the court for good cause shown and if it is in the best interests 
372.32 	of the child as long as the total time the child spends in foster care without a permanency 
372.33 	hearing does not exceed 12 months;
373.1 	(4) if the child has been adjudicated as a child in need of protection or services because 
373.2 	the child is in need of special services or care to treat or ameliorate a physical or mental 
373.3 	disability or emotional disturbance mental illness as defined in section 245.4871, subdivision 
373.4 	15, the court may order the child's parent, guardian, or custodian to provide it. The court 
373.5 	may order the child's health plan company to provide mental health services to the child. 
373.6 	Section 62Q.535 applies to an order for mental health services directed to the child's health 
373.7 	plan company. If the health plan, parent, guardian, or custodian fails or is unable to provide 
373.8 	this treatment or care, the court may order it provided. Absent specific written findings by 
373.9 	the court that the child's disability is the result of abuse or neglect by the child's parent or 
373.10 	guardian, the court shall not transfer legal custody of the child for the purpose of obtaining 
373.11 	special treatment or care solely because the parent is unable to provide the treatment or care. 
373.12 	If the court's order for mental health treatment is based on a diagnosis made by a treatment 
373.13 	professional, the court may order that the diagnosing professional not provide the treatment 
373.14 	to the child if it finds that such an order is in the child's best interests; or
373.15 	(5) if the court believes that the child has sufficient maturity and judgment and that it is 
373.16 	in the best interests of the child, the court may order a child 16 years old or older to be 
373.17 	allowed to live independently, either alone or with others as approved by the court under 
373.18 	supervision the court considers appropriate, if the county board, after consultation with the 
373.19 	court, has specifically authorized this dispositional alternative for a child.
373.20 	(b) If the child was adjudicated in need of protection or services because the child is a 
373.21 	runaway or habitual truant, the court may order any of the following dispositions in addition 
373.22 	to or as alternatives to the dispositions authorized under paragraph (a):
373.23 	(1) counsel the child or the child's parents, guardian, or custodian;
373.24 	(2) place the child under the supervision of a probation officer or other suitable person 
373.25 	in the child's own home under conditions prescribed by the court, including reasonable rules 
373.26 	for the child's conduct and the conduct of the parents, guardian, or custodian, designed for 
373.27 	the physical, mental, and moral well-being and behavior of the child;
373.28 	(3) subject to the court's supervision, transfer legal custody of the child to one of the 
373.29 	following:
373.30 	(i) a reputable person of good moral character. No person may receive custody of two 
373.31 	or more unrelated children unless licensed to operate a residential program under sections 
373.32 	245A.01 to 245A.16; or
373.33 	(ii) a county probation officer for placement in a group foster home established under 
373.34 	the direction of the juvenile court and licensed pursuant to section 241.021;
374.1 	(4) require the child to pay a fine of up to $100. The court shall order payment of the 
374.2 	fine in a manner that will not impose undue financial hardship upon the child;
374.3 	(5) require the child to participate in a community service project;
374.4 	(6) order the child to undergo a chemical dependency evaluation and, if warranted by 
374.5 	the evaluation, order participation by the child in a drug awareness program or an inpatient 
374.6 	or outpatient chemical dependency treatment program;
374.7 	(7) if the court believes that it is in the best interests of the child or of public safety that 
374.8 	the child's driver's license or instruction permit be canceled, the court may order the 
374.9 	commissioner of public safety to cancel the child's license or permit for any period up to 
374.10 	the child's 18th birthday. If the child does not have a driver's license or permit, the court 
374.11 	may order a denial of driving privileges for any period up to the child's 18th birthday. The 
374.12 	court shall forward an order issued under this clause to the commissioner, who shall cancel 
374.13 	the license or permit or deny driving privileges without a hearing for the period specified 
374.14 	by the court. At any time before the expiration of the period of cancellation or denial, the 
374.15 	court may, for good cause, order the commissioner of public safety to allow the child to 
374.16 	apply for a license or permit, and the commissioner shall so authorize;
374.17 	(8) order that the child's parent or legal guardian deliver the child to school at the 
374.18 	beginning of each school day for a period of time specified by the court; or
374.19 	(9) require the child to perform any other activities or participate in any other treatment 
374.20 	programs deemed appropriate by the court.
374.21 	To the extent practicable, the court shall enter a disposition order the same day it makes 
374.22 	a finding that a child is in need of protection or services or neglected and in foster care, but 
374.23 	in no event more than 15 days after the finding unless the court finds that the best interests 
374.24 	of the child will be served by granting a delay. If the child was under eight years of age at 
374.25 	the time the petition was filed, the disposition order must be entered within ten days of the 
374.26 	finding and the court may not grant a delay unless good cause is shown and the court finds 
374.27 	the best interests of the child will be served by the delay.
374.28 	(c) If a child who is 14 years of age or older is adjudicated in need of protection or 
374.29 	services because the child is a habitual truant and truancy procedures involving the child 
374.30 	were previously dealt with by a school attendance review board or county attorney mediation 
374.31 	program under section 260A.06 or 260A.07, the court shall order a cancellation or denial 
374.32 	of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th 
374.33 	birthday.
375.1 	(d) In the case of a child adjudicated in need of protection or services because the child 
375.2 	has committed domestic abuse and been ordered excluded from the child's parent's home, 
375.3 	the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing 
375.4 	to provide an alternative safe living arrangement for the child as defined in paragraph (f).
375.5 	(e) When a parent has complied with a case plan ordered under subdivision 6 and the 
375.6 	child is in the care of the parent, the court may order the responsible social services agency 
375.7 	to monitor the parent's continued ability to maintain the child safely in the home under such 
375.8 	terms and conditions as the court determines appropriate under the circumstances.
375.9 	(f) For the purposes of this subdivision, "alternative safe living arrangement" means a 
375.10 	living arrangement for a child proposed by a petitioning parent or guardian if a court excludes 
375.11 	the minor from the parent's or guardian's home that is separate from the victim of domestic 
375.12 	abuse and safe for the child respondent. A living arrangement proposed by a petitioning 
375.13 	parent or guardian is presumed to be an alternative safe living arrangement absent information 
375.14 	to the contrary presented to the court. In evaluating any proposed living arrangement, the 
375.15 	court shall consider whether the arrangement provides the child with necessary food, clothing, 
375.16 	shelter, and education in a safe environment. Any proposed living arrangement that would 
375.17 	place the child in the care of an adult who has been physically or sexually violent is presumed 
375.18 	unsafe.

375.19 	Sec. 78. Minnesota Statutes 2024, section 260C.201, subdivision 2, is amended to read:
375.20 		Subd. 2.Written findings. (a) Any order for a disposition authorized under this section 
375.21 	shall contain written findings of fact to support the disposition and case plan ordered and 
375.22 	shall also set forth in writing the following information:
375.23 	(1) why the best interests and safety of the child are served by the disposition and case 
375.24 	plan ordered;
375.25 	(2) what alternative dispositions or services under the case plan were considered by the 
375.26 	court and why such dispositions or services were not appropriate in the instant case;
375.27 	(3) when legal custody of the child is transferred, the appropriateness of the particular 
375.28 	placement made or to be made by the placing agency using the relative and sibling placement 
375.29 	considerations and best interest factors in section 260C.212, subdivision 2, or the 
375.30 	appropriateness of a child colocated with a parent in a licensed residential family-based 
375.31 	substance use disorder treatment program under section 260C.190;
375.32 	(4) whether reasonable efforts to finalize the permanent plan for the child consistent 
375.33 	with section 260.012 were made including reasonable efforts:
376.1 	(i) to prevent the child's placement and to reunify the child with the parent or guardian 
376.2 	from whom the child was removed at the earliest time consistent with the child's safety. 
376.3 	The court's findings must include a brief description of what preventive and reunification 
376.4 	efforts were made and why further efforts could not have prevented or eliminated the 
376.5 	necessity of removal or that reasonable efforts were not required under section 260.012 or 
376.6 	260C.178, subdivision 1;
376.7 	(ii) to identify and locate any noncustodial or nonresident parent of the child and to 
376.8 	assess such parent's ability to provide day-to-day care of the child, and, where appropriate, 
376.9 	provide services necessary to enable the noncustodial or nonresident parent to safely provide 
376.10 	day-to-day care of the child as required under section 260C.219, unless such services are 
376.11 	not required under section 260.012 or 260C.178, subdivision 1. The court's findings must 
376.12 	include a description of the agency's efforts to:
376.13 	(A) identify and locate the child's noncustodial or nonresident parent;
376.14 	(B) assess the noncustodial or nonresident parent's ability to provide day-to-day care of 
376.15 	the child; and
376.16 	(C) if appropriate, provide services necessary to enable the noncustodial or nonresident 
376.17 	parent to safely provide the child's day-to-day care, including efforts to engage the 
376.18 	noncustodial or nonresident parent in assuming care and responsibility of the child;
376.19 	(iii) to make the diligent search for relatives and provide the notices required under 
376.20 	section 260C.221; a finding made pursuant to a hearing under section 260C.202 that the 
376.21 	agency has made diligent efforts to conduct a relative search and has appropriately engaged 
376.22 	relatives who responded to the notice under section 260C.221 and other relatives, who came 
376.23 	to the attention of the agency after notice under section 260C.221 was sent, in placement 
376.24 	and case planning decisions fulfills the requirement of this item;
376.25 	(iv) to identify and make a foster care placement of the child, considering the order in 
376.26 	section 260C.212, subdivision 2, paragraph (a), in the home of an unlicensed relative, 
376.27 	according to the requirements of section 142B.06, a licensed relative, or other licensed foster 
376.28 	care provider, who will commit to being the permanent legal parent or custodian for the 
376.29 	child in the event reunification cannot occur, but who will actively support the reunification 
376.30 	plan for the child. If the court finds that the agency has not appropriately considered relatives 
376.31 	for placement of the child, the court shall order the agency to comply with section 260C.212, 
376.32 	subdivision 2, paragraph (a). The court may order the agency to continue considering 
376.33 	relatives for placement of the child regardless of the child's current placement setting; and
377.1 	(v) to place siblings together in the same home or to ensure visitation is occurring when 
377.2 	siblings are separated in foster care placement and visitation is in the siblings' best interests 
377.3 	under section 260C.212, subdivision 2, paragraph (d); and
377.4 	(5) if the child has been adjudicated as a child in need of protection or services because 
377.5 	the child is in need of special services or care to treat or ameliorate a mental disability or 
377.6 	emotional disturbance mental illness as defined in section 245.4871, subdivision 15, the 
377.7 	written findings shall also set forth:
377.8 	(i) whether the child has mental health needs that must be addressed by the case plan;
377.9 	(ii) what consideration was given to the diagnostic and functional assessments performed 
377.10 	by the child's mental health professional and to health and mental health care professionals' 
377.11 	treatment recommendations;
377.12 	(iii) what consideration was given to the requests or preferences of the child's parent or 
377.13 	guardian with regard to the child's interventions, services, or treatment; and
377.14 	(iv) what consideration was given to the cultural appropriateness of the child's treatment 
377.15 	or services.
377.16 	(b) If the court finds that the social services agency's preventive or reunification efforts 
377.17 	have not been reasonable but that further preventive or reunification efforts could not permit 
377.18 	the child to safely remain at home, the court may nevertheless authorize or continue the 
377.19 	removal of the child.
377.20 	(c) If the child has been identified by the responsible social services agency as the subject 
377.21 	of concurrent permanency planning, the court shall review the reasonable efforts of the 
377.22 	agency to develop a permanency plan for the child that includes a primary plan that is for 
377.23 	reunification with the child's parent or guardian and a secondary plan that is for an alternative, 
377.24 	legally permanent home for the child in the event reunification cannot be achieved in a 
377.25 	timely manner.

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

378.5 	Sec. 80. Minnesota Statutes 2024, section 260D.01, is amended to read:
378.6 	260D.01 CHILD IN VOLUNTARY FOSTER CARE FOR TREATMENT.
378.7 	(a) Sections 260D.01 to 260D.10, may be cited as the "child in voluntary foster care for 
378.8 	treatment" provisions of the Juvenile Court Act.
378.9 	(b) The juvenile court has original and exclusive jurisdiction over a child in voluntary 
378.10 	foster care for treatment upon the filing of a report or petition required under this chapter. 
378.11 	All obligations of the responsible social services agency to a child and family in foster care 
378.12 	contained in chapter 260C not inconsistent with this chapter are also obligations of the 
378.13 	agency with regard to a child in foster care for treatment under this chapter.
378.14 	(c) This chapter shall be construed consistently with the mission of the children's mental 
378.15 	health service system as set out in section 245.487, subdivision 3, and the duties of an agency 
378.16 	under sections 256B.092 and 260C.157 and Minnesota Rules, parts 9525.0004 to 9525.0016, 
378.17 	to meet the needs of a child with a developmental disability or related condition. This 
378.18 	chapter:
378.19 	(1) establishes voluntary foster care through a voluntary foster care agreement as the 
378.20 	means for an agency and a parent to provide needed treatment when the child must be in 
378.21 	foster care to receive necessary treatment for an emotional disturbance or a mental illness,
378.22 	developmental disability, or related condition;
378.23 	(2) establishes court review requirements for a child in voluntary foster care for treatment 
378.24 	due to emotional disturbance or a mental illness, developmental disability, or a related 
378.25 	condition;
378.26 	(3) establishes the ongoing responsibility of the parent as legal custodian to visit the 
378.27 	child, to plan together with the agency for the child's treatment needs, to be available and 
378.28 	accessible to the agency to make treatment decisions, and to obtain necessary medical, 
378.29 	dental, and other care for the child;
378.30 	(4) applies to voluntary foster care when the child's parent and the agency agree that the 
378.31 	child's treatment needs require foster care either:
379.1 	(i) due to a level of care determination by the agency's screening team informed by the 
379.2 	child's diagnostic and functional assessment under section 245.4885; or
379.3 	(ii) due to a determination regarding the level of services needed by the child by the 
379.4 	responsible social services agency's screening team under section 256B.092, and Minnesota 
379.5 	Rules, parts 9525.0004 to 9525.0016; and
379.6 	(5) includes the requirements for a child's placement in sections 260C.70 to 260C.714, 
379.7 	when the juvenile treatment screening team recommends placing a child in a qualified 
379.8 	residential treatment program, except as modified by this chapter.
379.9 	(d) This chapter does not apply when there is a current determination under chapter 
379.10 	260E that the child requires child protective services or when the child is in foster care for 
379.11 	any reason other than treatment for the child's emotional disturbance or mental illness,
379.12 	developmental disability, or related condition. When there is a determination under chapter 
379.13 	260E that the child requires child protective services based on an assessment that there are 
379.14 	safety and risk issues for the child that have not been mitigated through the parent's 
379.15 	engagement in services or otherwise, or when the child is in foster care for any reason other 
379.16 	than the child's emotional disturbance or mental illness, developmental disability, or related 
379.17 	condition, the provisions of chapter 260C apply.
379.18 	(e) The paramount consideration in all proceedings concerning a child in voluntary foster 
379.19 	care for treatment is the safety, health, and the best interests of the child. The purpose of 
379.20 	this chapter is:
379.21 	(1) to ensure that a child with a disability is provided the services necessary to treat or 
379.22 	ameliorate the symptoms of the child's disability;
379.23 	(2) to preserve and strengthen the child's family ties whenever possible and in the child's 
379.24 	best interests, approving the child's placement away from the child's parents only when the 
379.25 	child's need for care or treatment requires out-of-home placement and the child cannot be 
379.26 	maintained in the home of the parent; and
379.27 	(3) to ensure that the child's parent retains legal custody of the child and associated 
379.28 	decision-making authority unless the child's parent willfully fails or is unable to make 
379.29 	decisions that meet the child's safety, health, and best interests. The court may not find that 
379.30 	the parent willfully fails or is unable to make decisions that meet the child's needs solely 
379.31 	because the parent disagrees with the agency's choice of foster care facility, unless the 
379.32 	agency files a petition under chapter 260C, and establishes by clear and convincing evidence 
379.33 	that the child is in need of protection or services.
380.1 	(f) The legal parent-child relationship shall be supported under this chapter by maintaining 
380.2 	the parent's legal authority and responsibility for ongoing planning for the child and by the 
380.3 	agency's assisting the parent, when necessary, to exercise the parent's ongoing right and 
380.4 	obligation to visit or to have reasonable contact with the child. Ongoing planning means:
380.5 	(1) actively participating in the planning and provision of educational services, medical, 
380.6 	and dental care for the child;
380.7 	(2) actively planning and participating with the agency and the foster care facility for 
380.8 	the child's treatment needs;
380.9 	(3) planning to meet the child's need for safety, stability, and permanency, and the child's 
380.10 	need to stay connected to the child's family and community;
380.11 	(4) engaging with the responsible social services agency to ensure that the family and 
380.12 	permanency team under section 260C.706 consists of appropriate family members. For 
380.13 	purposes of voluntary placement of a child in foster care for treatment under chapter 260D, 
380.14 	prior to forming the child's family and permanency team, the responsible social services 
380.15 	agency must consult with the child's parent or legal guardian, the child if the child is 14 
380.16 	years of age or older, and, if applicable, the child's Tribe to obtain recommendations regarding 
380.17 	which individuals to include on the team and to ensure that the team is family-centered and 
380.18 	will act in the child's best interests. If the child, child's parents, or legal guardians raise 
380.19 	concerns about specific relatives or professionals, the team should not include those 
380.20 	individuals unless the individual is a treating professional or an important connection to the 
380.21 	youth as outlined in the case or crisis plan; and
380.22 	(5) for a voluntary placement under this chapter in a qualified residential treatment 
380.23 	program, as defined in section 260C.007, subdivision 26d, for purposes of engaging in a 
380.24 	relative search as provided in section 260C.221, the county agency must consult with the 
380.25 	child's parent or legal guardian, the child if the child is 14 years of age or older, and, if 
380.26 	applicable, the child's Tribe to obtain recommendations regarding which adult relatives the 
380.27 	county agency should notify. If the child, child's parents, or legal guardians raise concerns 
380.28 	about specific relatives, the county agency should not notify those relatives.
380.29 	(g) The provisions of section 260.012 to ensure placement prevention, family 
380.30 	reunification, and all active and reasonable effort requirements of that section apply.

380.31 	Sec. 81. Minnesota Statutes 2024, section 260D.02, subdivision 5, is amended to read:
380.32 		Subd. 5.Child in voluntary foster care for treatment. "Child in voluntary foster care 
380.33 	for treatment" means a child with emotional disturbance a mental illness or developmental 
381.1 	disability, or who has a related condition and is in foster care under a voluntary foster care 
381.2 	agreement between the child's parent and the agency due to concurrence between the agency 
381.3 	and the parent when it is determined that foster care is medically necessary:
381.4 	(1) due to a determination by the agency's screening team based on its review of the 
381.5 	diagnostic and functional assessment under section 245.4885; or
381.6 	(2) due to a determination by the agency's screening team under section 256B.092 and 
381.7 	Minnesota Rules, parts 9525.0004 to 9525.0016.
381.8 	A child is not in voluntary foster care for treatment under this chapter when there is a 
381.9 	current determination under chapter 260E that the child requires child protective services 
381.10 	or when the child is in foster care for any reason other than the child's emotional or mental 
381.11 	illness, developmental disability, or related condition.

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

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

381.24 	Sec. 84. Minnesota Statutes 2024, section 260D.04, is amended to read:
381.25 	260D.04 REQUIRED INFORMATION FOR A CHILD IN VOLUNTARY FOSTER 
381.26 	CARE FOR TREATMENT.
381.27 	An agency with authority to place a child in voluntary foster care for treatment due to 
381.28 	emotional disturbance or a mental illness, developmental disability, or related condition,
381.29 	shall inform the child, age 12 or older, of the following:
382.1 	(1) the child has the right to be consulted in the preparation of the out-of-home placement 
382.2 	plan required under section 260C.212, subdivision 1, and the administrative review required 
382.3 	under section 260C.203;
382.4 	(2) the child has the right to visit the parent and the right to visit the child's siblings as 
382.5 	determined safe and appropriate by the parent and the agency;
382.6 	(3) if the child disagrees with the foster care facility or services provided under the 
382.7 	out-of-home placement plan required under section 260C.212, subdivision 1, the agency 
382.8 	shall include information about the nature of the child's disagreement and, to the extent 
382.9 	possible, the agency's understanding of the basis of the child's disagreement in the information 
382.10 	provided to the court in the report required under section 260D.06; and
382.11 	(4) the child has the rights established under Minnesota Rules, part 2960.0050, as a 
382.12 	resident of a facility licensed by the state.

382.13 	Sec. 85. Minnesota Statutes 2024, section 260D.06, subdivision 2, is amended to read:
382.14 		Subd. 2.Agency report to court; court review. The agency shall obtain judicial review 
382.15 	by reporting to the court according to the following procedures:
382.16 	(a) A written report shall be forwarded to the court within 165 days of the date of the 
382.17 	voluntary placement agreement. The written report shall contain or have attached:
382.18 	(1) a statement of facts that necessitate the child's foster care placement;
382.19 	(2) the child's name, date of birth, race, gender, and current address;
382.20 	(3) the names, race, date of birth, residence, and post office addresses of the child's 
382.21 	parents or legal custodian;
382.22 	(4) a statement regarding the child's eligibility for membership or enrollment in an Indian 
382.23 	tribe and the agency's compliance with applicable provisions of sections 260.751 to 260.835;
382.24 	(5) the names and addresses of the foster parents or chief administrator of the facility in 
382.25 	which the child is placed, if the child is not in a family foster home or group home;
382.26 	(6) a copy of the out-of-home placement plan required under section 260C.212, 
382.27 	subdivision 1;
382.28 	(7) a written summary of the proceedings of any administrative review required under 
382.29 	section 260C.203;
382.30 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
382.31 	residential treatment program as defined in section 260C.007, subdivision 26d; and
383.1 	(9) any other information the agency, parent or legal custodian, the child or the foster 
383.2 	parent, or other residential facility wants the court to consider.
383.3 	(b) In the case of a child in placement due to emotional disturbance mental illness, the 
383.4 	written report shall include as an attachment, the child's individual treatment plan developed 
383.5 	by the child's treatment professional, as provided in section 245.4871, subdivision 21, or 
383.6 	the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
383.7 	(e).
383.8 	(c) In the case of a child in placement due to developmental disability or a related 
383.9 	condition, the written report shall include as an attachment, the child's individual service 
383.10 	plan, as provided in section 256B.092, subdivision 1b; the child's individual program plan, 
383.11 	as provided in Minnesota Rules, part 9525.0004, subpart 11; the child's waiver care plan; 
383.12 	or the child's standard written plan, as provided in section 125A.023, subdivision 3, paragraph 
383.13 	(e).
383.14 	(d) The agency must inform the child, age 12 or older, the child's parent, and the foster 
383.15 	parent or foster care facility of the reporting and court review requirements of this section 
383.16 	and of their right to submit information to the court:
383.17 	(1) if the child or the child's parent or the foster care provider wants to send information 
383.18 	to the court, the agency shall advise those persons of the reporting date and the date by 
383.19 	which the agency must receive the information they want forwarded to the court so the 
383.20 	agency is timely able submit it with the agency's report required under this subdivision;
383.21 	(2) the agency must also inform the child, age 12 or older, the child's parent, and the 
383.22 	foster care facility that they have the right to be heard in person by the court and how to 
383.23 	exercise that right;
383.24 	(3) the agency must also inform the child, age 12 or older, the child's parent, and the 
383.25 	foster care provider that an in-court hearing will be held if requested by the child, the parent, 
383.26 	or the foster care provider; and
383.27 	(4) if, at the time required for the report under this section, a child, age 12 or older, 
383.28 	disagrees about the foster care facility or services provided under the out-of-home placement 
383.29 	plan required under section 260C.212, subdivision 1, the agency shall include information 
383.30 	regarding the child's disagreement, and to the extent possible, the basis for the child's 
383.31 	disagreement in the report required under this section.
384.1 	(e) After receiving the required report, the court has jurisdiction to make the following 
384.2 	determinations and must do so within ten days of receiving the forwarded report, whether 
384.3 	a hearing is requested:
384.4 	(1) whether the voluntary foster care arrangement is in the child's best interests;
384.5 	(2) whether the parent and agency are appropriately planning for the child; and
384.6 	(3) in the case of a child age 12 or older, who disagrees with the foster care facility or 
384.7 	services provided under the out-of-home placement plan, whether it is appropriate to appoint 
384.8 	counsel and a guardian ad litem for the child using standards and procedures under section 
384.9 	260C.163.
384.10 	(f) Unless requested by a parent, representative of the foster care facility, or the child, 
384.11 	no in-court hearing is required in order for the court to make findings and issue an order as 
384.12 	required in paragraph (e).
384.13 	(g) If the court finds the voluntary foster care arrangement is in the child's best interests 
384.14 	and that the agency and parent are appropriately planning for the child, the court shall issue 
384.15 	an order containing explicit, individualized findings to support its determination. The 
384.16 	individualized findings shall be based on the agency's written report and other materials 
384.17 	submitted to the court. The court may make this determination notwithstanding the child's 
384.18 	disagreement, if any, reported under paragraph (d).
384.19 	(h) The court shall send a copy of the order to the county attorney, the agency, parent, 
384.20 	child, age 12 or older, and the foster parent or foster care facility.
384.21 	(i) The court shall also send the parent, the child, age 12 or older, the foster parent, or 
384.22 	representative of the foster care facility notice of the permanency review hearing required 
384.23 	under section 260D.07, paragraph (e).
384.24 	(j) If the court finds continuing the voluntary foster care arrangement is not in the child's 
384.25 	best interests or that the agency or the parent are not appropriately planning for the child, 
384.26 	the court shall notify the agency, the parent, the foster parent or foster care facility, the child, 
384.27 	age 12 or older, and the county attorney of the court's determinations and the basis for the 
384.28 	court's determinations. In this case, the court shall set the matter for hearing and appoint a 
384.29 	guardian ad litem for the child under section 260C.163, subdivision 5.

385.1 	Sec. 86. Minnesota Statutes 2024, section 260D.07, is amended to read:
385.2 	260D.07 REQUIRED PERMANENCY REVIEW HEARING.
385.3 	(a) When the court has found that the voluntary arrangement is in the child's best interests 
385.4 	and that the agency and parent are appropriately planning for the child pursuant to the report 
385.5 	submitted under section 260D.06, and the child continues in voluntary foster care as defined 
385.6 	in section 260D.02, subdivision 10, for 13 months from the date of the voluntary foster care 
385.7 	agreement, or has been in placement for 15 of the last 22 months, the agency must:
385.8 	(1) terminate the voluntary foster care agreement and return the child home; or
385.9 	(2) determine whether there are compelling reasons to continue the voluntary foster care 
385.10 	arrangement and, if the agency determines there are compelling reasons, seek judicial 
385.11 	approval of its determination; or
385.12 	(3) file a petition for the termination of parental rights.
385.13 	(b) When the agency is asking for the court's approval of its determination that there are 
385.14 	compelling reasons to continue the child in the voluntary foster care arrangement, the agency 
385.15 	shall file a "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
385.16 	for Treatment" and ask the court to proceed under this section.
385.17 	(c) The "Petition for Permanency Review Regarding a Child in Voluntary Foster Care 
385.18 	for Treatment" shall be drafted or approved by the county attorney and be under oath. The 
385.19 	petition shall include:
385.20 	(1) the date of the voluntary placement agreement;
385.21 	(2) whether the petition is due to the child's developmental disability or emotional 
385.22 	disturbance mental illness;
385.23 	(3) the plan for the ongoing care of the child and the parent's participation in the plan;
385.24 	(4) a description of the parent's visitation and contact with the child;
385.25 	(5) the date of the court finding that the foster care placement was in the best interests 
385.26 	of the child, if required under section 260D.06, or the date the agency filed the motion under 
385.27 	section 260D.09, paragraph (b);
385.28 	(6) the agency's reasonable efforts to finalize the permanent plan for the child, including 
385.29 	returning the child to the care of the child's family;
385.30 	(7) a citation to this chapter as the basis for the petition; and
386.1 	(8) evidence as specified in section 260C.712 when a child is placed in a qualified 
386.2 	residential treatment program as defined in section 260C.007, subdivision 26d.
386.3 	(d) An updated copy of the out-of-home placement plan required under section 260C.212, 
386.4 	subdivision 1, shall be filed with the petition.
386.5 	(e) The court shall set the date for the permanency review hearing no later than 14 months 
386.6 	after the child has been in placement or within 30 days of the petition filing date when the 
386.7 	child has been in placement 15 of the last 22 months. The court shall serve the petition 
386.8 	together with a notice of hearing by United States mail on the parent, the child age 12 or 
386.9 	older, the child's guardian ad litem, if one has been appointed, the agency, the county 
386.10 	attorney, and counsel for any party.
386.11 	(f) The court shall conduct the permanency review hearing on the petition no later than 
386.12 	14 months after the date of the voluntary placement agreement, within 30 days of the filing 
386.13 	of the petition when the child has been in placement 15 of the last 22 months, or within 15 
386.14 	days of a motion to terminate jurisdiction and to dismiss an order for foster care under 
386.15 	chapter 260C, as provided in section 260D.09, paragraph (b).
386.16 	(g) At the permanency review hearing, the court shall:
386.17 	(1) inquire of the parent if the parent has reviewed the "Petition for Permanency Review 
386.18 	Regarding a Child in Voluntary Foster Care for Treatment," whether the petition is accurate, 
386.19 	and whether the parent agrees to the continued voluntary foster care arrangement as being 
386.20 	in the child's best interests;
386.21 	(2) inquire of the parent if the parent is satisfied with the agency's reasonable efforts to 
386.22 	finalize the permanent plan for the child, including whether there are services available and 
386.23 	accessible to the parent that might allow the child to safely be with the child's family;
386.24 	(3) inquire of the parent if the parent consents to the court entering an order that:
386.25 	(i) approves the responsible agency's reasonable efforts to finalize the permanent plan 
386.26 	for the child, which includes ongoing future planning for the safety, health, and best interests 
386.27 	of the child; and
386.28 	(ii) approves the responsible agency's determination that there are compelling reasons 
386.29 	why the continued voluntary foster care arrangement is in the child's best interests; and
386.30 	(4) inquire of the child's guardian ad litem and any other party whether the guardian or 
386.31 	the party agrees that:
387.1 	(i) the court should approve the responsible agency's reasonable efforts to finalize the 
387.2 	permanent plan for the child, which includes ongoing and future planning for the safety, 
387.3 	health, and best interests of the child; and
387.4 	(ii) the court should approve of the responsible agency's determination that there are 
387.5 	compelling reasons why the continued voluntary foster care arrangement is in the child's 
387.6 	best interests.
387.7 	(h) At a permanency review hearing under this section, the court may take the following 
387.8 	actions based on the contents of the sworn petition and the consent of the parent:
387.9 	(1) approve the agency's compelling reasons that the voluntary foster care arrangement 
387.10 	is in the best interests of the child; and
387.11 	(2) find that the agency has made reasonable efforts to finalize the permanent plan for 
387.12 	the child.
387.13 	(i) A child, age 12 or older, may object to the agency's request that the court approve its 
387.14 	compelling reasons for the continued voluntary arrangement and may be heard on the reasons 
387.15 	for the objection. Notwithstanding the child's objection, the court may approve the agency's 
387.16 	compelling reasons and the voluntary arrangement.
387.17 	(j) If the court does not approve the voluntary arrangement after hearing from the child 
387.18 	or the child's guardian ad litem, the court shall dismiss the petition. In this case, either:
387.19 	(1) the child must be returned to the care of the parent; or
387.20 	(2) the agency must file a petition under section 260C.141, asking for appropriate relief 
387.21 	under sections 260C.301 or 260C.503 to 260C.521.
387.22 	(k) When the court approves the agency's compelling reasons for the child to continue 
387.23 	in voluntary foster care for treatment, and finds that the agency has made reasonable efforts 
387.24 	to finalize a permanent plan for the child, the court shall approve the continued voluntary 
387.25 	foster care arrangement, and continue the matter under the court's jurisdiction for the purposes 
387.26 	of reviewing the child's placement every 12 months while the child is in foster care.
387.27 	(l) A finding that the court approves the continued voluntary placement means the agency 
387.28 	has continued legal authority to place the child while a voluntary placement agreement 
387.29 	remains in effect. The parent or the agency may terminate a voluntary agreement as provided 
387.30 	in section 260D.10. Termination of a voluntary foster care placement of an Indian child is 
387.31 	governed by section 260.765, subdivision 4.

388.1 	Sec. 87. Minnesota Statutes 2024, section 260E.11, subdivision 3, is amended to read:
388.2 		Subd. 3.Report to medical examiner or coroner; notification to local agency and 
388.3 	law enforcement; report ombudsman. (a) A person mandated to report maltreatment who 
388.4 	knows or has reason to believe a child has died as a result of maltreatment shall report that 
388.5 	information to the appropriate medical examiner or coroner instead of the local welfare 
388.6 	agency, police department, or county sheriff.
388.7 	(b) The medical examiner or coroner shall notify the local welfare agency, police 
388.8 	department, or county sheriff in instances in which the medical examiner or coroner believes 
388.9 	that the child has died as a result of maltreatment. The medical examiner or coroner shall 
388.10 	complete an investigation as soon as feasible and report the findings to the police department 
388.11 	or county sheriff and the local welfare agency.
388.12 	(c) If the child was receiving services or treatment for mental illness, developmental 
388.13 	disability, or substance use disorder, or emotional disturbance from an agency, facility, or 
388.14 	program as defined in section 245.91, the medical examiner or coroner shall also notify and 
388.15 	report findings to the ombudsman established under sections 245.91 to 245.97.

388.16 	Sec. 88. Minnesota Statutes 2024, section 295.50, subdivision 9b, is amended to read:
388.17 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
388.18 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
388.19 	They include the following health care goods and services provided to a patient or consumer:
388.20 	(1) bed and board;
388.21 	(2) nursing services and other related services;
388.22 	(3) use of hospitals, surgical centers, or health care provider facilities;
388.23 	(4) medical social services;
388.24 	(5) drugs, biologicals, supplies, appliances, and equipment;
388.25 	(6) other diagnostic or therapeutic items or services;
388.26 	(7) medical or surgical services;
388.27 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
388.28 	and
388.29 	(9) emergency services.
388.30 	(b) "Patient services" does not include:
389.1 	(1) services provided to nursing homes licensed under chapter 144A;
389.2 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
389.3 	litigation, and employment, including reviews of medical records for those purposes;
389.4 	(3) services provided to and by community residential mental health facilities licensed 
389.5 	under section 245I.23 or Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by 
389.6 	residential treatment programs for children with severe emotional disturbance a serious 
389.7 	mental illness licensed or certified under chapter 245A;
389.8 	(4) services provided under the following programs: day treatment services as defined 
389.9 	in section 245.462, subdivision 8; assertive community treatment as described in section 
389.10 	256B.0622; adult rehabilitative mental health services as described in section 256B.0623; 
389.11 	crisis response services as described in section 256B.0624; and children's therapeutic services 
389.12 	and supports as described in section 256B.0943;
389.13 	(5) services provided to and by community mental health centers as defined in section 
389.14 	245.62, subdivision 2;
389.15 	(6) services provided to and by assisted living programs and congregate housing 
389.16 	programs;
389.17 	(7) hospice care services;
389.18 	(8) home and community-based waivered services under chapter 256S and sections 
389.19 	256B.49 and 256B.501;
389.20 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
389.21 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
389.22 	(10) services provided to the following: supervised living facilities for persons with 
389.23 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
389.24 	housing with services establishments required to be registered under chapter 144D; board 
389.25 	and lodging establishments providing only custodial services that are licensed under chapter 
389.26 	157 and registered under section 157.17 to provide supportive services or health supervision 
389.27 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
389.28 	and habilitation services for adults with developmental disabilities as defined in section 
389.29 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
389.30 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
389.31 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
389.32 	chapter 144A.

390.1 	ARTICLE 11
390.2 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
390.3 	TREATMENT SERVICES RECODIFICATION

390.4 	Section 1. Minnesota Statutes 2024, section 256B.0622, subdivision 1, is amended to read:
390.5 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
390.6 	necessary, assertive community treatment when the services are provided by an entity 
390.7 	certified under and meeting the standards in this section.
390.8 	(b) Subject to federal approval, medical assistance covers medically necessary, intensive 
390.9 	residential treatment services when the services are provided by an entity licensed under 
390.10 	and meeting the standards in section 245I.23.
390.11 	(c) (b) The provider entity must make reasonable and good faith efforts to report 
390.12 	individual client outcomes to the commissioner, using instruments and protocols approved 
390.13 	by the commissioner.

390.14 	Sec. 2. Minnesota Statutes 2024, section 256B.0622, subdivision 8, is amended to read:
390.15 		Subd. 8.Medical assistance payment for assertive community treatment and 
390.16 	intensive residential treatment services. (a) Payment for intensive residential treatment 
390.17 	services and assertive community treatment in this section shall be based on one daily rate 
390.18 	per provider inclusive of the following services received by an eligible client in a given 
390.19 	calendar day: all rehabilitative services under this section, staff travel time to provide 
390.20 	rehabilitative services under this section, and nonresidential crisis stabilization services 
390.21 	under section 256B.0624.
390.22 	(b) Except as indicated in paragraph (d) (c), payment will not be made to more than one 
390.23 	entity for each client for services provided under this section on a given day. If services 
390.24 	under this section are provided by a team that includes staff from more than one entity, the 
390.25 	team must determine how to distribute the payment among the members.
390.26 	(c) Payment must not be made based solely on a court order to participate in intensive 
390.27 	residential treatment services. If a client has a court order to participate in the program or 
390.28 	to obtain assessment for treatment and follow treatment recommendations, payment under 
390.29 	this section must only be provided if the client is eligible for the service and the service is 
390.30 	determined to be medically necessary.
390.31 	(d) (c) The commissioner shall determine one rate for each provider that will bill medical 
390.32 	assistance for residential services under this section and one rate for each assertive community 
390.33 	treatment provider under this section. If a single entity provides both services intensive 
391.1 	residential treatment services under section 256B.0632 and assertive community treatment 
391.2 	under this section, one rate is established for the entity's intensive residential treatment
391.3 	services under section 256B.0632 and another rate for the entity's nonresidential assertive 
391.4 	community treatment services under this section. A provider is not eligible for payment 
391.5 	under this section without authorization from the commissioner. The commissioner shall 
391.6 	develop rates using the following criteria:
391.7 	(1) the provider's cost for services shall include direct services costs, other program 
391.8 	costs, and other costs determined as follows:
391.9 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
391.10 	payroll taxes, and training of direct service staff and service-related transportation;
391.11 	(ii) other program costs not included in item (i) must be determined as a specified 
391.12 	percentage of the direct services costs as determined by item (i). The percentage used shall 
391.13 	be determined by the commissioner based upon the average of percentages that represent 
391.14 	the relationship of other program costs to direct services costs among the entities that provide 
391.15 	similar services;
391.16 	(iii) physical plant costs calculated based on the percentage of space within the program 
391.17 	that is entirely devoted to treatment and programming. This does not include administrative 
391.18 	or residential space;
391.19 	(iv) assertive community treatment physical plant costs must be reimbursed as part of 
391.20 	the costs described in item (ii); and
391.21 	(v) subject to federal approval, up to an additional five percent of the total rate may be 
391.22 	added to the program rate as a quality incentive based upon the entity meeting performance 
391.23 	criteria specified by the commissioner;
391.24 	(2) actual cost is costs are defined as costs which are allowable, allocable, and reasonable, 
391.25 	and consistent with federal reimbursement requirements under Code of Federal Regulations, 
391.26 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
391.27 	Budget Circular Number A-122, relating to nonprofit entities;
391.28 	(3) the number of service units;
391.29 	(4) the degree to which clients will receive services other than services under this section
391.30 	or section 256B.0632; and
391.31 	(5) the costs of other services that will be separately reimbursed.
392.1 	(e) (d) The rate for intensive residential treatment services and assertive community 
392.2 	treatment must exclude the medical assistance room and board rate, as defined in section 
392.3 	256B.056, subdivision 5d, and services not covered under this section, such as partial 
392.4 	hospitalization, home care, and inpatient services.
392.5 	(f) Physician services that are not separately billed may be included in the rate to the 
392.6 	extent that a psychiatrist, or other health care professional providing physician services 
392.7 	within their scope of practice, is a member of the intensive residential treatment services 
392.8 	treatment team. Physician services, whether billed separately or included in the rate, may 
392.9 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
392.10 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
392.11 	is used to provide intensive residential treatment services.
392.12 	(g) (e) When services under this section are provided by an assertive community treatment 
392.13 	provider, case management functions must be an integral part of the team.
392.14 	(h) (f) The rate for a provider must not exceed the rate charged by that provider for the 
392.15 	same service to other payors.
392.16 	(i) (g) The rates for existing programs must be established prospectively based upon the 
392.17 	expenditures and utilization over a prior 12-month period using the criteria established in 
392.18 	paragraph (d) (c). The rates for new programs must be established based upon estimated 
392.19 	expenditures and estimated utilization using the criteria established in paragraph (d) (c).
392.20 	(j) (h) Effective for the rate years beginning on and after January 1, 2024, rates for 
392.21 	assertive community treatment, adult residential crisis stabilization services, and intensive 
392.22 	residential treatment services must be annually adjusted for inflation using the Centers for 
392.23 	Medicare and Medicaid Services Medicare Economic Index, as forecasted in the third quarter 
392.24 	of the calendar year before the rate year. The inflation adjustment must be based on the 
392.25 	12-month period from the midpoint of the previous rate year to the midpoint of the rate year 
392.26 	for which the rate is being determined. This paragraph expires upon federal approval.
392.27 	(i) Effective upon the expiration of paragraph (h), and effective for the rate years 
392.28 	beginning on and after January 1, 2024, rates for assertive community treatment services 
392.29 	must be annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
392.30 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
392.31 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
392.32 	of the previous rate year to the midpoint of the rate year for which the rate is being 
392.33 	determined.
393.1 	(k) (j) Entities who discontinue providing services must be subject to a settle-up process 
393.2 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
393.3 	event that the entity was paid more than the entity's actual costs plus any applicable 
393.4 	performance-related funding due the provider, the excess payment must be reimbursed to 
393.5 	the department. If a provider's revenue is less than actual allowed costs due to lower 
393.6 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
393.7 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
393.8 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
393.9 	of greater than five percent.
393.10 	(l) (k) A provider may request of the commissioner a review of any rate-setting decision 
393.11 	made under this subdivision.

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

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

393.21 	Sec. 5. [256B.0632] INTENSIVE RESIDENTIAL TREATMENT SERVICES.
393.22 		Subdivision 1.Scope. (a) Subject to federal approval, medical assistance covers medically 
393.23 	necessary, intensive residential treatment services when the services are provided by an 
393.24 	entity licensed under and meeting the standards in section 245I.23.
393.25 	(b) The provider entity must make reasonable and good faith efforts to report individual 
393.26 	client outcomes to the commissioner, using instruments and protocols approved by the 
393.27 	commissioner.
393.28 		Subd. 2.Provider entity licensure and contract requirements for intensive residential 
393.29 	treatment services. (a) The commissioner shall develop procedures for counties and 
393.30 	providers to submit other documentation as needed to allow the commissioner to determine 
393.31 	whether the standards in this section are met.
394.1 	(b) A provider entity must specify in the provider entity's application what geographic 
394.2 	area and populations will be served by the proposed program. A provider entity must 
394.3 	document that the capacity or program specialties of existing programs are not sufficient 
394.4 	to meet the service needs of the target population. A provider entity must submit evidence 
394.5 	of ongoing relationships with other providers and levels of care to facilitate referrals to and 
394.6 	from the proposed program.
394.7 	(c) A provider entity must submit documentation that the provider entity requested a 
394.8 	statement of need from each county board and Tribal authority that serves as a local mental 
394.9 	health authority in the proposed service area. The statement of need must specify if the local 
394.10 	mental health authority supports or does not support the need for the proposed program and 
394.11 	the basis for this determination. If a local mental health authority does not respond within 
394.12 	60 days of the receipt of the request, the commissioner shall determine the need for the 
394.13 	program based on the documentation submitted by the provider entity.
394.14 		Subd. 3.Medical assistance payment for intensive residential treatment services. (a) 
394.15 	Payment for intensive residential treatment services in this section shall be based on one 
394.16 	daily rate per provider inclusive of the following services received by an eligible client in 
394.17 	a given calendar day: all rehabilitative services under this section, staff travel time to provide 
394.18 	rehabilitative services under this section, and nonresidential crisis stabilization services 
394.19 	under section 256B.0624.
394.20 	(b) Except as indicated in paragraph (d), payment will not be made to more than one 
394.21 	entity for each client for services provided under this section on a given day. If services 
394.22 	under this section are provided by a team that includes staff from more than one entity, the 
394.23 	team must determine how to distribute the payment among the members.
394.24 	(c) Payment must not be made based solely on a court order to participate in intensive 
394.25 	residential treatment services. If a client has a court order to participate in the program or 
394.26 	to obtain assessment for treatment and follow treatment recommendations, payment under 
394.27 	this section must only be provided if the client is eligible for the service and the service is 
394.28 	determined to be medically necessary.
394.29 	(d) The commissioner shall determine one rate for each provider that will bill medical 
394.30 	assistance for intensive residential treatment services under this section. If a single entity 
394.31 	provides both intensive residential treatment services under this section and assertive 
394.32 	community treatment under section 256B.0622, one rate is established for the entity's 
394.33 	intensive residential treatment services under this section and another rate for the entity's 
394.34 	assertive community treatment services under section 256B.0622. A provider is not eligible 
395.1 	for payment under this section without authorization from the commissioner. The 
395.2 	commissioner shall develop rates using the following criteria:
395.3 	(1) the provider's cost for services shall include direct services costs, other program 
395.4 	costs, and other costs determined as follows:
395.5 	(i) the direct services costs must be determined using actual costs of salaries, benefits, 
395.6 	payroll taxes, and training of direct service staff and service-related transportation;
395.7 	(ii) other program costs not included in item (i) must be determined as a specified 
395.8 	percentage of the direct services costs as determined by item (i). The percentage used shall 
395.9 	be determined by the commissioner based upon the average of percentages that represent 
395.10 	the relationship of other program costs to direct services costs among the entities that provide 
395.11 	similar services;
395.12 	(iii) physical plant costs calculated based on the percentage of space within the program 
395.13 	that is entirely devoted to treatment and programming. This does not include administrative 
395.14 	or residential space; and
395.15 	(iv) subject to federal approval, up to an additional five percent of the total rate may be 
395.16 	added to the program rate as a quality incentive based upon the entity meeting performance 
395.17 	criteria specified by the commissioner;
395.18 	(2) actual costs are defined as costs which are allowable, allocable, and reasonable, and 
395.19 	consistent with federal reimbursement requirements under Code of Federal Regulations, 
395.20 	title 48, chapter 1, part 31, relating to for-profit entities, and Office of Management and 
395.21 	Budget Circular Number A-122, relating to nonprofit entities;
395.22 	(3) the number of services units;
395.23 	(4) the degree to which clients will receive services other than services under this section 
395.24 	or section 256B.0622; and
395.25 	(5) the costs of other services that will be separately reimbursed.
395.26 	(e) The rate for intensive residential treatment services must exclude the medical 
395.27 	assistance room and board rate, as defined in section 256B.056, subdivision 5d, and services 
395.28 	not covered under this section, such as partial hospitalization, home care, and inpatient 
395.29 	services.
395.30 	(f) Physician services that are not separately billed may be included in the rate to the 
395.31 	extent that a psychiatrist, or other health care professional providing physician services 
395.32 	within their scope of practice, is a member of the intensive residential treatment services 
396.1 	treatment team. Physician services, whether billed separately or included in the rate, may 
396.2 	be delivered by telehealth. For purposes of this paragraph, "telehealth" has the meaning 
396.3 	given to "mental health telehealth" in section 256B.0625, subdivision 46, when telehealth 
396.4 	is used to provide intensive residential treatment services.
396.5 	(g) The rate for a provider must not exceed the rate charged by that provider for the 
396.6 	same service to other payors.
396.7 	(h) The rates for existing programs must be established prospectively based upon the 
396.8 	expenditures and utilization over a prior 12-month period using the criteria established in 
396.9 	paragraph (d). The rates for new programs must be established based upon estimated 
396.10 	expenditures and estimated utilization using the criteria established in paragraph (d).
396.11 	(i) Effective upon the expiration of section 256B.0622, subdivision 8, paragraph (h), 
396.12 	and effective for rate years beginning on and after January 1, 2024, rates for intensive 
396.13 	residential treatment services and adult residential crisis stabilization services must be 
396.14 	annually adjusted for inflation using the Centers for Medicare and Medicaid Services 
396.15 	Medicare Economic Index, as forecasted in the third quarter of the calendar year before the 
396.16 	rate year. The inflation adjustment must be based on the 12-month period from the midpoint 
396.17 	of the previous rate year to the midpoint of the rate year for which the rate is being 
396.18 	determined.
396.19 	(j) Entities who discontinue providing services must be subject to a settle-up process 
396.20 	whereby actual costs and reimbursement for the previous 12 months are compared. In the 
396.21 	event that the entity was paid more than the entity's actual costs plus any applicable 
396.22 	performance-related funding due the provider, the excess payment must be reimbursed to 
396.23 	the department. If a provider's revenue is less than actual allowed costs due to lower 
396.24 	utilization than projected, the commissioner may reimburse the provider to recover its actual 
396.25 	allowable costs. The resulting adjustments by the commissioner must be proportional to the 
396.26 	percent of total units of service reimbursed by the commissioner and must reflect a difference 
396.27 	of greater than five percent.
396.28 	(k) A provider may request of the commissioner a review of any rate-setting decision 
396.29 	made under this subdivision.
396.30 		Subd. 4.Provider enrollment; rate setting for county-operated entities. Counties 
396.31 	that employ their own staff to provide services under this section shall apply directly to the 
396.32 	commissioner for enrollment and rate setting. In this case, a county contract is not required.
397.1 		Subd. 5.Provider enrollment; rate setting for specialized program. A county contract 
397.2 	is not required for a provider proposing to serve a subpopulation of eligible clients under 
397.3 	the following circumstances:
397.4 	(1) the provider demonstrates that the subpopulation to be served requires a specialized 
397.5 	program which is not available from county-approved entities; and
397.6 	(2) the subpopulation to be served is of such a low incidence that it is not feasible to 
397.7 	develop a program serving a single county or regional group of counties.
397.8 		Subd. 6.Sustainability grants. The commissioner may disburse grant funds directly to 
397.9 	intensive residential treatment services providers to maintain access to these services.
397.10 		Subd. 7.Start-up grants. The commissioner may, within available appropriations, 
397.11 	disburse grant funding to counties, Indian Tribes, or mental health service providers to 
397.12 	establish additional intensive residential treatment services and residential crisis services.

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

397.15 	ARTICLE 12
397.16 	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL 
397.17 	TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES

397.18 	Section 1. Minnesota Statutes 2024, section 148F.11, subdivision 1, is amended to read:
397.19 		Subdivision 1.Other professionals. (a) Nothing in this chapter prevents members of 
397.20 	other professions or occupations from performing functions for which they are qualified or 
397.21 	licensed. This exception includes, but is not limited to: licensed physicians; registered nurses; 
397.22 	licensed practical nurses; licensed psychologists and licensed psychological practitioners; 
397.23 	members of the clergy provided such services are provided within the scope of regular 
397.24 	ministries; American Indian medicine men and women; licensed attorneys; probation officers; 
397.25 	licensed marriage and family therapists; licensed social workers; social workers employed 
397.26 	by city, county, or state agencies; licensed professional counselors; licensed professional 
397.27 	clinical counselors; licensed school counselors; registered occupational therapists or 
397.28 	occupational therapy assistants; Upper Midwest Indian Council on Addictive Disorders 
397.29 	(UMICAD) certified counselors when providing services to Native American people; city, 
397.30 	county, or state employees when providing assessments or case management under Minnesota 
397.31 	Rules, chapter 9530; and staff persons providing co-occurring substance use disorder 
397.32 	treatment in adult mental health rehabilitative programs certified or licensed by the 
398.1 	Department of Human Services under section 245I.23, 256B.0622, or256B.0623, or 
398.2 	256B.0632.
398.3 	(b) Nothing in this chapter prohibits technicians and resident managers in programs 
398.4 	licensed by the Department of Human Services from discharging their duties as provided 
398.5 	in Minnesota Rules, chapter 9530.
398.6 	(c) Any person who is exempt from licensure under this section must not use a title 
398.7 	incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug 
398.8 	counselor" or otherwise hold himself or herself out to the public by any title or description 
398.9 	stating or implying that he or she is engaged in the practice of alcohol and drug counseling, 
398.10 	or that he or she is licensed to engage in the practice of alcohol and drug counseling, unless 
398.11 	that person is also licensed as an alcohol and drug counselor. Persons engaged in the practice 
398.12 	of alcohol and drug counseling are not exempt from the board's jurisdiction solely by the 
398.13 	use of one of the titles in paragraph (a).

398.14 	Sec. 2. Minnesota Statutes 2024, section 245.4662, subdivision 1, is amended to read:
398.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
398.16 	the meanings given them.
398.17 	(b) "Community partnership" means a project involving the collaboration of two or more 
398.18 	eligible applicants.
398.19 	(c) "Eligible applicant" means an eligible county, Indian tribe, mental health service 
398.20 	provider, hospital, or community partnership. Eligible applicant does not include a 
398.21 	state-operated direct care and treatment facility or program under chapters 246 and 246C.
398.22 	(d) "Intensive residential treatment services" has the meaning given in section 256B.0622
398.23 	256B.0632.
398.24 	(e) "Metropolitan area" means the seven-county metropolitan area, as defined in section 
398.25 	473.121, subdivision 2.

398.26 	Sec. 3. Minnesota Statutes 2024, section 245.4906, subdivision 2, is amended to read:
398.27 		Subd. 2.Eligible applicants. An eligible applicant is a licensed entity or provider that 
398.28 	employs a mental health certified peer specialist qualified under section 245I.04, subdivision 
398.29 	10, and that provides services to individuals receiving assertive community treatment or 
398.30 	intensive residential treatment services under section 256B.0622, intensive residential 
398.31 	treatment services under section 256B.0632, adult rehabilitative mental health services 
398.32 	under section 256B.0623, or crisis response services under section 256B.0624.

399.1 	Sec. 4. Minnesota Statutes 2024, section 254B.04, subdivision 1a, is amended to read:
399.2 		Subd. 1a.Client eligibility. (a) Persons eligible for benefits under Code of Federal 
399.3 	Regulations, title 25, part 20, who meet the income standards of section 256B.056, 
399.4 	subdivision 4, and are not enrolled in medical assistance, are entitled to behavioral health 
399.5 	fund services. State money appropriated for this paragraph must be placed in a separate 
399.6 	account established for this purpose.
399.7 	(b) Persons with dependent children who are determined to be in need of substance use 
399.8 	disorder treatment pursuant to an assessment under section 260E.20, subdivision 1, or in 
399.9 	need of chemical dependency treatment pursuant to a case plan under section 260C.201, 
399.10 	subdivision 6, or 260C.212, shall be assisted by the local agency to access needed treatment 
399.11 	services. Treatment services must be appropriate for the individual or family, which may 
399.12 	include long-term care treatment or treatment in a facility that allows the dependent children 
399.13 	to stay in the treatment facility. The county shall pay for out-of-home placement costs, if 
399.14 	applicable.
399.15 	(c) Notwithstanding paragraph (a), any person enrolled in medical assistance or 
399.16 	MinnesotaCare is eligible for room and board services under section 254B.05, subdivision 
399.17 	5, paragraph (b), clause (9).
399.18 	(d) A client is eligible to have substance use disorder treatment paid for with funds from 
399.19 	the behavioral health fund when the client:
399.20 	(1) is eligible for MFIP as determined under chapter 142G;
399.21 	(2) is eligible for medical assistance as determined under Minnesota Rules, parts 
399.22 	9505.0010 to 9505.0150;
399.23 	(3) is eligible for general assistance, general assistance medical care, or work readiness 
399.24 	as determined under Minnesota Rules, parts 9500.1200 to 9500.1318; or
399.25 	(4) has income that is within current household size and income guidelines for entitled 
399.26 	persons, as defined in this subdivision and subdivision 7.
399.27 	(e) Clients who meet the financial eligibility requirement in paragraph (a) and who have 
399.28 	a third-party payment source are eligible for the behavioral health fund if the third-party 
399.29 	payment source pays less than 100 percent of the cost of treatment services for eligible 
399.30 	clients.
399.31 	(f) A client is ineligible to have substance use disorder treatment services paid for with 
399.32 	behavioral health fund money if the client:
400.1 	(1) has an income that exceeds current household size and income guidelines for entitled 
400.2 	persons as defined in this subdivision and subdivision 7; or
400.3 	(2) has an available third-party payment source that will pay the total cost of the client's 
400.4 	treatment.
400.5 	(g) A client who is disenrolled from a state prepaid health plan during a treatment episode 
400.6 	is eligible for continued treatment service that is paid for by the behavioral health fund until 
400.7 	the treatment episode is completed or the client is re-enrolled in a state prepaid health plan 
400.8 	if the client:
400.9 	(1) continues to be enrolled in MinnesotaCare, medical assistance, or general assistance 
400.10 	medical care; or
400.11 	(2) is eligible according to paragraphs (a) and (b) and is determined eligible by a local 
400.12 	agency under section 254B.04.
400.13 	(h) When a county commits a client under chapter 253B to a regional treatment center 
400.14 	for substance use disorder services and the client is ineligible for the behavioral health fund, 
400.15 	the county is responsible for the payment to the regional treatment center according to 
400.16 	section 254B.05, subdivision 4.
400.17 	(i) Persons enrolled in MinnesotaCare are eligible for room and board services when 
400.18 	provided through intensive residential treatment services and residential crisis services under 
400.19 	section 256B.0622 256B.0632.

400.20 	Sec. 5. Minnesota Statutes 2024, section 254B.05, subdivision 1a, is amended to read:
400.21 		Subd. 1a.Room and board provider requirements. (a) Vendors of room and board 
400.22 	are eligible for behavioral health fund payment if the vendor:
400.23 	(1) has rules prohibiting residents bringing chemicals into the facility or using chemicals 
400.24 	while residing in the facility and provide consequences for infractions of those rules;
400.25 	(2) is determined to meet applicable health and safety requirements;
400.26 	(3) is not a jail or prison;
400.27 	(4) is not concurrently receiving funds under chapter 256I for the recipient;
400.28 	(5) admits individuals who are 18 years of age or older;
400.29 	(6) is registered as a board and lodging or lodging establishment according to section 
400.30 	157.17;
400.31 	(7) has awake staff on site whenever a client is present;
401.1 	(8) has staff who are at least 18 years of age and meet the requirements of section 
401.2 	245G.11, subdivision 1, paragraph (b);
401.3 	(9) has emergency behavioral procedures that meet the requirements of section 245G.16;
401.4 	(10) meets the requirements of section 245G.08, subdivision 5, if administering 
401.5 	medications to clients;
401.6 	(11) meets the abuse prevention requirements of section 245A.65, including a policy on 
401.7 	fraternization and the mandatory reporting requirements of section 626.557;
401.8 	(12) documents coordination with the treatment provider to ensure compliance with 
401.9 	section 254B.03, subdivision 2;
401.10 	(13) protects client funds and ensures freedom from exploitation by meeting the 
401.11 	provisions of section 245A.04, subdivision 13;
401.12 	(14) has a grievance procedure that meets the requirements of section 245G.15, 
401.13 	subdivision 2; and
401.14 	(15) has sleeping and bathroom facilities for men and women separated by a door that 
401.15 	is locked, has an alarm, or is supervised by awake staff.
401.16 	(b) Programs licensed according to Minnesota Rules, chapter 2960, are exempt from 
401.17 	paragraph (a), clauses (5) to (15).
401.18 	(c) Programs providing children's mental health crisis admissions and stabilization under 
401.19 	section 245.4882, subdivision 6, are eligible vendors of room and board.
401.20 	(d) Programs providing children's residential services under section 245.4882, except 
401.21 	services for individuals who have a placement under chapter 260C or 260D, are eligible 
401.22 	vendors of room and board.
401.23 	(e) Licensed programs providing intensive residential treatment services or residential 
401.24 	crisis stabilization services pursuant to section 256B.0622 or256B.0624or 256B.0632 are 
401.25 	eligible vendors of room and board and are exempt from paragraph (a), clauses (6) to (15).
401.26 	(f) A vendor that is not licensed as a residential treatment program must have a policy 
401.27 	to address staffing coverage when a client may unexpectedly need to be present at the room 
401.28 	and board site.

401.29 	Sec. 6. Minnesota Statutes 2024, section 256.478, subdivision 2, is amended to read:
401.30 		Subd. 2.Eligibility. An individual is eligible for the transition to community initiative 
401.31 	if the individual can demonstrate that current services are not capable of meeting individual 
402.1 	treatment and service needs that can be met in the community with support, and the individual 
402.2 	meets at least one of the following criteria:
402.3 	(1) the person meets the criteria under section 256B.092, subdivision 13, or 256B.49, 
402.4 	subdivision 24;
402.5 	(2) the person has met treatment objectives and no longer requires a hospital-level care, 
402.6 	residential-level care, or a secure treatment setting, but the person's discharge from the 
402.7 	Anoka Metro Regional Treatment Center, the Minnesota Forensic Mental Health Program, 
402.8 	the Child and Adolescent Behavioral Health Hospital program, a psychiatric residential 
402.9 	treatment facility under section 256B.0941, intensive residential treatment services under 
402.10 	section 256B.0622 256B.0632, children's residential services under section 245.4882, 
402.11 	juvenile detention facility, county supervised building, or a hospital would be substantially 
402.12 	delayed without additional resources available through the transitions to community initiative;
402.13 	(3) the person (i) is receiving customized living services reimbursed under section 
402.14 	256B.4914, 24-hour customized living services reimbursed under section 256B.4914, or 
402.15 	community residential services reimbursed under section 256B.4914; (ii) expresses a desire 
402.16 	to move; and (iii) has received approval from the commissioner; or
402.17 	(4) the person can demonstrate that the person's needs are beyond the scope of current 
402.18 	service designs and grant funding can support the inclusion of additional supports for the 
402.19 	person to access appropriate treatment and services in the least restrictive environment.

402.20 	Sec. 7. Minnesota Statutes 2024, section 256B.0615, subdivision 1, is amended to read:
402.21 		Subdivision 1.Scope. Medical assistance covers mental health certified peer specialist 
402.22 	services, as established in subdivision 2, if provided to recipients who are eligible for services 
402.23 	under sections 256B.0622, 256B.0623, and256B.0624, and 256B.0632and are provided 
402.24 	by a mental health certified peer specialist who has completed the training under subdivision 
402.25 	5 and is qualified according to section 245I.04, subdivision 10.

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

403.1 	Sec. 9. Minnesota Statutes 2024, section 256B.82, is amended to read:
403.2 	256B.82 PREPAID PLANS AND MENTAL HEALTH REHABILITATIVE 
403.3 	SERVICES.
403.4 	Medical assistance and MinnesotaCare prepaid health plans may include coverage for 
403.5 	adult mental health rehabilitative services under section 256B.0623, intensive rehabilitative 
403.6 	services under section 256B.0622 256B.0632, and adult mental health crisis response services 
403.7 	under section 256B.0624, beginning January 1, 2005.
403.8 	By January 15, 2004, the commissioner shall report to the legislature how these services 
403.9 	should be included in prepaid plans. The commissioner shall consult with mental health 
403.10 	advocates, health plans, and counties in developing this report. The report recommendations 
403.11 	must include a plan to ensure coordination of these services between health plans and 
403.12 	counties, assure recipient access to essential community providers, and monitor the health 
403.13 	plans' delivery of services through utilization review and quality standards.

403.14 	Sec. 10. Minnesota Statutes 2024, section 256D.44, subdivision 5, is amended to read:
403.15 		Subd. 5.Special needs. (a) In addition to the state standards of assistance established 
403.16 	in subdivisions 1 to 4, payments are allowed for the following special needs of recipients 
403.17 	of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment 
403.18 	center, or a setting authorized to receive housing support payments under chapter 256I.
403.19 	(b) The county agency shall pay a monthly allowance for medically prescribed diets if 
403.20 	the cost of those additional dietary needs cannot be met through some other maintenance 
403.21 	benefit. The need for special diets or dietary items must be prescribed by a licensed physician, 
403.22 	advanced practice registered nurse, or physician assistant. Costs for special diets shall be 
403.23 	determined as percentages of the allotment for a one-person household under the thrifty 
403.24 	food plan as defined by the United States Department of Agriculture. The types of diets and 
403.25 	the percentages of the thrifty food plan that are covered are as follows:
403.26 	(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
403.27 	(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of 
403.28 	thrifty food plan;
403.29 	(3) controlled protein diet, less than 40 grams and requires special products, 125 percent 
403.30 	of thrifty food plan;
403.31 	(4) low cholesterol diet, 25 percent of thrifty food plan;
403.32 	(5) high residue diet, 20 percent of thrifty food plan;
404.1 	(6) pregnancy and lactation diet, 35 percent of thrifty food plan;
404.2 	(7) gluten-free diet, 25 percent of thrifty food plan;
404.3 	(8) lactose-free diet, 25 percent of thrifty food plan;
404.4 	(9) antidumping diet, 15 percent of thrifty food plan;
404.5 	(10) hypoglycemic diet, 15 percent of thrifty food plan; or
404.6 	(11) ketogenic diet, 25 percent of thrifty food plan.
404.7 	(c) Payment for nonrecurring special needs must be allowed for necessary home repairs 
404.8 	or necessary repairs or replacement of household furniture and appliances using the payment 
404.9 	standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as 
404.10 	other funding sources are not available.
404.11 	(d) A fee for guardian or conservator service is allowed at a reasonable rate negotiated 
404.12 	by the county or approved by the court. This rate shall not exceed five percent of the 
404.13 	assistance unit's gross monthly income up to a maximum of $100 per month. If the guardian 
404.14 	or conservator is a member of the county agency staff, no fee is allowed.
404.15 	(e) The county agency shall continue to pay a monthly allowance of $68 for restaurant 
404.16 	meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and 
404.17 	who eats two or more meals in a restaurant daily. The allowance must continue until the 
404.18 	person has not received Minnesota supplemental aid for one full calendar month or until 
404.19 	the person's living arrangement changes and the person no longer meets the criteria for the 
404.20 	restaurant meal allowance, whichever occurs first.
404.21 	(f) A fee equal to the maximum monthly amount allowed by the Social Security 
404.22 	Administration is allowed for representative payee services provided by an agency that 
404.23 	meets the requirements under SSI regulations to charge a fee for representative payee 
404.24 	services. This special need is available to all recipients of Minnesota supplemental aid 
404.25 	regardless of their living arrangement.
404.26 	(g)(1) Notwithstanding the language in this subdivision, an amount equal to one-half of 
404.27 	the maximum federal Supplemental Security Income payment amount for a single individual 
404.28 	which is in effect on the first day of July of each year will be added to the standards of 
404.29 	assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as 
404.30 	in need of housing assistance and are:
405.1 	(i) relocating from an institution, a setting authorized to receive housing support under 
405.2 	chapter 256I, or an adult mental health residential treatment program under section 256B.0622
405.3 	256B.0632;
405.4 	(ii) eligible for personal care assistance under section 256B.0659; or
405.5 	(iii) home and community-based waiver recipients living in their own home or rented 
405.6 	or leased apartment.
405.7 	(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter 
405.8 	needy benefit under this paragraph is considered a household of one. An eligible individual 
405.9 	who receives this benefit prior to age 65 may continue to receive the benefit after the age 
405.10 	of 65.
405.11 	(3) "Housing assistance" means that the assistance unit incurs monthly shelter costs that 
405.12 	exceed 40 percent of the assistance unit's gross income before the application of this special 
405.13 	needs standard. "Gross income" for the purposes of this section is the applicant's or recipient's 
405.14 	income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 
405.15 	3, paragraph (a) or (b), whichever is greater. A recipient of a federal or state housing subsidy, 
405.16 	that limits shelter costs to a percentage of gross income, shall not be considered in need of 
405.17 	housing assistance for purposes of this paragraph.

405.18 	ARTICLE 13
405.19 	BACKGROUND STUDIES

405.20 	Section 1. Minnesota Statutes 2024, section 245C.13, subdivision 2, is amended to read:
405.21 		Subd. 2.Activities pending completion of background study. The subject of a 
405.22 	background study may not perform any activity requiring a background study under 
405.23 	paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
405.24 	(a) Notices from the commissioner required prior to activity under paragraph (c) include:
405.25 	(1) a notice of the study results under section 245C.17 stating that:
405.26 	(i) the individual is not disqualified; or
405.27 	(ii) more time is needed to complete the study but the individual is not required to be 
405.28 	removed from direct contact or access to people receiving services prior to completion of 
405.29 	the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice 
405.30 	that more time is needed to complete the study must also indicate whether the individual is 
405.31 	required to be under continuous direct supervision prior to completion of the background 
405.32 	study. When more time is necessary to complete a background study of an individual 
406.1 	affiliated with a Title IV-E eligible children's residential facility or foster residence setting, 
406.2 	the individual may not work in the facility or setting regardless of whether or not the 
406.3 	individual is supervised;
406.4 	(2) a notice that a disqualification has been set aside under section 245C.23; or
406.5 	(3) a notice that a variance has been granted related to the individual under section 
406.6 	245C.30.
406.7 	(b) For a background study affiliated with a licensed child care center or certified 
406.8 	license-exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), 
406.9 	must not be issued until the commissioner receives a qualifying result for the individual for 
406.10 	the fingerprint-based national criminal history record check or the fingerprint-based criminal 
406.11 	history information from the Bureau of Criminal Apprehension. The notice must require 
406.12 	the individual to be under continuous direct supervision prior to completion of the remainder 
406.13 	of the background study except as permitted in subdivision 3.
406.14 	(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
406.15 	(1) being issued a license;
406.16 	(2) living in the household where the licensed program will be provided;
406.17 	(3) providing direct contact services to persons served by a program unless the subject 
406.18 	is under continuous direct supervision;
406.19 	(4) having access to persons receiving services if the background study was completed 
406.20 	under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), 
406.21 	(5), or (6), unless the subject is under continuous direct supervision;
406.22 	(5) for licensed child care centers and certified license-exempt child care centers, 
406.23 	providing direct contact services to persons served by the program;
406.24 	(6) for children's residential facilities or foster residence settings, working in the facility 
406.25 	or setting; or
406.26 	(7) for background studies affiliated with a personal care provider organization, except 
406.27 	as provided in section 245C.03, subdivision 3b, before a personal care assistant provides 
406.28 	services, the personal care assistance provider agency must initiate a background study of 
406.29 	the personal care assistant under this chapter and the personal care assistance provider 
406.30 	agency must have received a notice from the commissioner that the personal care assistant 
406.31 	is:
406.32 	(i) not disqualified under section 245C.14; or
407.1 	(ii) disqualified, but the personal care assistant has received a set aside of the 
407.2 	disqualification under section 245C.22.

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

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

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

407.11 	Sec. 3. Minnesota Statutes 2024, section 245C.15, is amended by adding a subdivision to 
407.12 	read:
407.13 		Subd. 4c.Two-year disqualification. An individual is disqualified under section 
407.14 	245C.14, subdivision 6, if less than two years has passed since a determination that the 
407.15 	individual violated section 142A.12, 245.095, or 256B.064.

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

407.17 	ARTICLE 14
407.18 	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY

407.19 	Section 1. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
407.20 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
407.21 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
407.22 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
407.23 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
407.24 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
407.25 	shall not be disclosed except:
407.26 	(1) pursuant to section 13.05;
407.27 	(2) pursuant to statute or valid court order;
407.28 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
407.29 	preparation of defense;
408.1 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
408.2 	state, or federal government, including a law enforcement officer or attorney in the 
408.3 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
408.4 	commissioner of human services or commissioner of children, youth, and families determines 
408.5 	that disclosure may compromise a Department of Human Services or Department of Children, 
408.6 	Youth, and Families ongoing investigation; or
408.7 	(5) to provide notices required or permitted by statute.
408.8 	The data referred to in this subdivision shall be classified as public data upon submission 
408.9 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
408.10 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
408.11 	(b) Notwithstanding any other provision in law, the commissioner of human services 
408.12 	shall provide all active and inactive investigative data, including the name of the reporter 
408.13 	of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for 
408.14 	mental health and developmental disabilities upon the request of the ombudsman.
408.15 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
408.16 	by the commissioner of human services of possible overpayments of public funds to a service 
408.17 	provider or recipient or the reduction or withholding of payments may be disclosed if the 
408.18 	commissioner determines that it will not compromise the investigation.

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

408.20 	Sec. 2. Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
408.21 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
408.22 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
408.23 	individual, or associated entity in any program administered by the commissioner if the 
408.24 	commissioner determines:
408.25 	(1) there is a credible allegation of fraud for which an investigation is pending for a 
408.26 	program administered by a Minnesota state or federal agency.;
408.27 	(2) the individual, the entity, or an associated individual or entity was convicted of a 
408.28 	crime charged in state or federal court with an offense that involves fraud or theft against 
408.29 	a program administered by the commissioner or another state or federal agency. For purposes 
408.30 	of this subdivision, "convicted" means a judgment of conviction has been entered by a 
408.31 	federal, state, or local court, regardless of whether an appeal from the judgment is pending, 
408.32 	and includes a stay of adjudication, a court-ordered diversion program, or a plea of guilty 
408.33 	or nolo contendere;
409.1 	(3) the provider is operating after a state or federal agency orders the suspension, 
409.2 	revocation, or decertification of the provider's license;
409.3 	(4) the provider, vendor, associated individual, or associated entity, including those 
409.4 	receiving funds under any contract or registered program, has a background study 
409.5 	disqualification under chapter 245C that has not been set aside and for which no variance 
409.6 	has been issued, except for a disqualification under sections 245C.14, subdivision 5, and 
409.7 	245C.15, subdivision 4c; or
409.8 	(5) by a preponderance of the evidence that the provider, vendor, individual, associated 
409.9 	individual, or associated entity intentionally provided materially false information on the 
409.10 	provider's billing forms.
409.11 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
409.12 	that has been verified by the commissioner from any source, including but not limited to:
409.13 	(1) fraud hotline complaints;
409.14 	(2) claims data mining;
409.15 	(3) patterns identified through provider audits, civil false claims cases, and law 
409.16 	enforcement investigations; and
409.17 	(4) court filings and other legal documents, including but not limited to police reports, 
409.18 	complaints, indictments, informations, affidavits, declarations, and search warrants.
409.19 	(c) The commissioner must send notice of the withholding of payments within five days 
409.20 	of taking such action. The notice must:
409.21 	(1) state that payments are being withheld according to this subdivision;
409.22 	(2) set forth the general allegations related to the withholding action, except the notice 
409.23 	need not disclose specific information concerning an ongoing investigation;
409.24 	(3) state that the withholding is for a temporary period and cite the circumstances under 
409.25 	which the withholding will be terminated; and
409.26 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
409.27 	of the right to submit written evidence to contest the withholding action for consideration 
409.28 	by the commissioner.
409.29 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
409.30 	individual, associated individual, or associated entity has a right to request administrative 
409.31 	reconsideration. A request for administrative reconsideration must be made in writing, state 
409.32 	with specificity the reasons the payment withholding decision is in error, and include 
410.1 	documents to support the request. Within 60 days from receipt of the request, the 
410.2 	commissioner shall judiciously review allegations, facts, evidence available to the 
410.3 	commissioner, and information submitted by the provider, vendor, individual, associated 
410.4 	individual, or associated entity to determine whether the payment withholding should remain 
410.5 	in place.
410.6 	(e) The commissioner shall stop withholding payments if the commissioner determines 
410.7 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
410.8 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
410.9 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
410.10 	vendor, individual, associated individual, or associated entity.
410.11 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
410.12 	section 256.045 or chapter 14.

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

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

410.20 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
410.21 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
410.22 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
410.23 	application must be made on the forms and in the manner prescribed by the commissioner. 
410.24 	The commissioner shall provide the applicant with instruction in completing the application 
410.25 	and provide information about the rules and requirements of other state agencies that affect 
410.26 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
410.27 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
410.28 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
410.29 	this chapter that is owned by another license holder must apply for a license under this 
410.30 	chapter and comply with the application procedures in this section and section 245A.043.
410.31 	The commissioner shall act on the application within 90 working days after a complete 
410.32 	application and any required reports have been received from other state agencies or 
411.1 	departments, counties, municipalities, or other political subdivisions. The commissioner 
411.2 	shall not consider an application to be complete until the commissioner receives all of the 
411.3 	required information. If the applicant or a controlling individual is the subject of a pending 
411.4 	administrative, civil, or criminal investigation, the application is not complete until the 
411.5 	investigation has closed or the related legal proceedings are complete.
411.6 	When the commissioner receives an application for initial licensure that is incomplete 
411.7 	because the applicant failed to submit required documents or that is substantially deficient 
411.8 	because the documents submitted do not meet licensing requirements, the commissioner 
411.9 	shall provide the applicant written notice that the application is incomplete or substantially 
411.10 	deficient. In the written notice to the applicant the commissioner shall identify documents 
411.11 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
411.12 	that is substantially complete. An applicant's failure to submit a substantially complete 
411.13 	application after receiving notice from the commissioner is a basis for license denial under 
411.14 	section 245A.043.
411.15 	(b) An application for licensure must identify all controlling individuals as defined in 
411.16 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
411.17 	agent. The application must be signed by the authorized agent and must include the authorized 
411.18 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
411.19 	application for licensure, the authorized agent consents to electronic communication with 
411.20 	the commissioner throughout the application process. The authorized agent must be 
411.21 	authorized to accept service on behalf of all of the controlling individuals. A government 
411.22 	entity that holds multiple licenses under this chapter may designate one authorized agent 
411.23 	for all licenses issued under this chapter or may designate a different authorized agent for 
411.24 	each license. Service on the authorized agent is service on all of the controlling individuals. 
411.25 	It is not a defense to any action arising under this chapter that service was not made on each 
411.26 	controlling individual. The designation of a controlling individual as the authorized agent 
411.27 	under this paragraph does not affect the legal responsibility of any other controlling individual 
411.28 	under this chapter.
411.29 	(c) An applicant or license holder must have a policy that prohibits license holders, 
411.30 	employees, subcontractors, and volunteers, when directly responsible for persons served 
411.31 	by the program, from abusing prescription medication or being in any manner under the 
411.32 	influence of a chemical that impairs the individual's ability to provide services or care. The 
411.33 	license holder must train employees, subcontractors, and volunteers about the program's 
411.34 	drug and alcohol policy.
412.1 	(d) An applicant and license holder must have a program grievance procedure that permits 
412.2 	persons served by the program and their authorized representatives to bring a grievance to 
412.3 	the highest level of authority in the program.
412.4 	(e) The commissioner may limit communication during the application process to the 
412.5 	authorized agent or the controlling individuals identified on the license application and for 
412.6 	whom a background study was initiated under chapter 245C. Upon implementation of the 
412.7 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
412.8 	manner prescribed by the commissioner. The commissioner may require the applicant, 
412.9 	except for child foster care, to demonstrate competence in the applicable licensing 
412.10 	requirements by successfully completing a written examination. The commissioner may 
412.11 	develop a prescribed written examination format.
412.12 	(f) When an applicant is an individual, the applicant must provide:
412.13 	(1) the applicant's taxpayer identification numbers including the Social Security number 
412.14 	or Minnesota tax identification number, and federal employer identification number if the 
412.15 	applicant has employees;
412.16 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
412.17 	of state that includes the complete business name, if any;
412.18 	(3) if doing business under a different name, the doing business as (DBA) name, as 
412.19 	registered with the secretary of state;
412.20 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
412.21 	Minnesota Provider Identifier (UMPI) number; and
412.22 	(5) at the request of the commissioner, the notarized signature of the applicant or 
412.23 	authorized agent.
412.24 	(g) When an applicant is an organization, the applicant must provide:
412.25 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
412.26 	identification number and federal employer identification number;
412.27 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
412.28 	of state that includes the complete business name, and if doing business under a different 
412.29 	name, the doing business as (DBA) name, as registered with the secretary of state;
412.30 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
412.31 	individuals, including all officers, owners, and managerial officials as defined in section 
413.1 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
413.2 	for each controlling individual;
413.3 	(4) if applicable, the applicant's NPI number and UMPI number;
413.4 	(5) the documents that created the organization and that determine the organization's 
413.5 	internal governance and the relations among the persons that own the organization, have 
413.6 	an interest in the organization, or are members of the organization, in each case as provided 
413.7 	or authorized by the organization's governing statute, which may include a partnership 
413.8 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
413.9 	or comparable documents as provided in the organization's governing statute; and
413.10 	(6) the notarized signature of the applicant or authorized agent.
413.11 	(h) When the applicant is a government entity, the applicant must provide:
413.12 	(1) the name of the government agency, political subdivision, or other unit of government 
413.13 	seeking the license and the name of the program or services that will be licensed;
413.14 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
413.15 	identification number and federal employer identification number;
413.16 	(3) a letter signed by the manager, administrator, or other executive of the government 
413.17 	entity authorizing the submission of the license application; and
413.18 	(4) if applicable, the applicant's NPI number and UMPI number.
413.19 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
413.20 	applicant or license holder must acknowledge on the form provided by the commissioner 
413.21 	if the applicant or license holder elects to receive any public funding reimbursement from 
413.22 	the commissioner for services provided under the license that:
413.23 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
413.24 	or registration requirements for receipt of public funding may be monitored by the 
413.25 	commissioner as part of a licensing investigation or licensing inspection; and
413.26 	(2) noncompliance with the provider enrollment agreement or registration requirements 
413.27 	for receipt of public funding that is identified through a licensing investigation or licensing 
413.28 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
413.29 	reimbursement for a service, may result in:
413.30 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
413.31 	section 245A.07;
414.1 	(ii) nonpayment of claims submitted by the license holder for public program 
414.2 	reimbursement;
414.3 	(iii) recovery of payments made for the service;
414.4 	(iv) disenrollment in the public payment program; or
414.5 	(v) other administrative, civil, or criminal penalties as provided by law.

414.6 	Sec. 5. Minnesota Statutes 2024, section 245A.05, is amended to read:
414.7 	245A.05 DENIAL OF APPLICATION.
414.8 	(a) The commissioner may deny a license if an applicant or controlling individual:
414.9 	(1) fails to submit a substantially complete application after receiving notice from the 
414.10 	commissioner under section 245A.04, subdivision 1;
414.11 	(2) fails to comply with applicable laws or rules;
414.12 	(3) knowingly withholds relevant information from or gives false or misleading 
414.13 	information to the commissioner in connection with an application for a license or during 
414.14 	an investigation;
414.15 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
414.16 	variance has been granted;
414.17 	(5) has an individual living in the household who received a background study under 
414.18 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
414.19 	has not been set aside under section 245C.22, and no variance has been granted;
414.20 	(6) is associated with an individual who received a background study under section 
414.21 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
414.22 	children or vulnerable adults, and who has a disqualification that has not been set aside 
414.23 	under section 245C.22, and no variance has been granted;
414.24 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
414.25 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
414.26 	6;
414.27 	(9) has a history of noncompliance as a license holder or controlling individual with 
414.28 	applicable laws or rules, including but not limited to this chapter and chapters 142E and 
414.29 	245C; or
414.30 	(10) is prohibited from holding a license according to section 245.095.; or
415.1 	(11) is the subject of a pending administrative, civil, or criminal investigation.
415.2 	(b) An applicant whose application has been denied by the commissioner must be given 
415.3 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
415.4 	must be given by certified mail, by personal service, or through the provider licensing and 
415.5 	reporting hub. The notice must state the reasons the application was denied and must inform 
415.6 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
415.7 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
415.8 	commissioner in writing by certified mail, by personal service, or through the provider 
415.9 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
415.10 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
415.11 	an appeal request is made by personal service, it must be received by the commissioner 
415.12 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
415.13 	through the provider hub, the appeal must be received by the commissioner within 20 
415.14 	calendar days from the date the commissioner issued the order through the hub. Section 
415.15 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

415.16 	Sec. 6. Minnesota Statutes 2024, section 245A.07, subdivision 2, is amended to read:
415.17 		Subd. 2.Temporary immediate suspension. (a) The commissioner shall act immediately 
415.18 	to temporarily suspend a license issued under this chapter if:
415.19 	(1) the license holder's or controlling individual's actions or failure to comply with 
415.20 	applicable law or rule, or the actions of other individuals or conditions in the program, pose 
415.21 	an imminent risk of harm to the health, safety, or rights of persons served by the program;
415.22 	(2) while the program continues to operate pending an appeal of an order of revocation, 
415.23 	the commissioner identifies one or more subsequent violations of law or rule which may 
415.24 	adversely affect the health or safety of persons served by the program; or
415.25 	(3) the license holder or controlling individual is criminally charged in state or federal 
415.26 	court with an offense that involves fraud or theft against a program administered by the 
415.27 	commissioner a state or federal agency.
415.28 	(b) No state funds shall be made available or be expended by any agency or department 
415.29 	of state, county, or municipal government for use by a license holder regulated under this 
415.30 	chapter while a license issued under this chapter is under immediate suspension. A notice 
415.31 	stating the reasons for the immediate suspension and informing the license holder of the 
415.32 	right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 
415.33 	1400.8612, must be delivered by personal service to the address shown on the application 
416.1 	or the last known address of the license holder. The license holder may appeal an order 
416.2 	immediately suspending a license. The appeal of an order immediately suspending a license 
416.3 	must be made in writing by certified mail, personal service, or other means expressly set 
416.4 	forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the 
416.5 	commissioner within five calendar days after the license holder receives notice that the 
416.6 	license has been immediately suspended. If a request is made by personal service, it must 
416.7 	be received by the commissioner within five calendar days after the license holder received 
416.8 	the order. A license holder and any controlling individual shall discontinue operation of the 
416.9 	program upon receipt of the commissioner's order to immediately suspend the license.
416.10 	(c) The commissioner may act immediately to temporarily suspend a license issued 
416.11 	under this chapter if the license holder or controlling individual is the subject of a pending 
416.12 	administrative, civil, or criminal investigation or subject to an administrative or civil action 
416.13 	related to fraud against a program administered by a state or federal agency.

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

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

416.28 	Sec. 8. Minnesota Statutes 2024, section 256.983, subdivision 4, is amended to read:
416.29 		Subd. 4.Funding. (a) County and Tribal agency reimbursement shall be made through 
416.30 	the settlement provisions applicable to the Supplemental Nutrition Assistance Program 
416.31 	(SNAP), MFIP, child care assistance programs, the medical assistance program, and other 
416.32 	federal and state-funded programs.
417.1 	(b) The commissioners will maintain program compliance if for any three consecutive 
417.2 	month period quarter, a county or Tribal agency fails to comply with fraud prevention 
417.3 	investigation program guidelines, or fails to meet the cost-effectiveness standards developed 
417.4 	by the commissioners. This result is contingent on the commissioners providing written 
417.5 	notice, including an offer of technical assistance, within 30 days of the end of the third or 
417.6 	subsequent month quarter of noncompliance. The county or Tribal agency shall be required 
417.7 	to submit a corrective action plan to the commissioners within 30 days of receipt of a notice 
417.8 	of noncompliance. Failure to submit a corrective action plan or, continued deviation from 
417.9 	standards of more than ten percent after submission of a corrective action plan, will result 
417.10 	in denial of funding for each subsequent month, or billing the county or Tribal agency for 
417.11 	fraud prevention investigation (FPI) service provided by the commissioners, or reallocation 
417.12 	of program grant funds, or investigative resources, or both, to other counties or Tribal 
417.13 	agencies. The denial of funding shall apply to the general settlement received by the county 
417.14 	or Tribal agency on a quarterly basis and shall not reduce the grant amount applicable to 
417.15 	the FPI project.

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

417.17 	Sec. 9. Minnesota Statutes 2024, section 256B.04, subdivision 21, is amended to read:
417.18 		Subd. 21.Provider enrollment. (a) The commissioner shall enroll providers and conduct 
417.19 	screening activities as required by Code of Federal Regulations, title 42, section 455, subpart 
417.20 	E. A provider must enroll each provider-controlled location where direct services are 
417.21 	provided. The commissioner may deny a provider's incomplete application if a provider 
417.22 	fails to respond to the commissioner's request for additional information within 60 days of 
417.23 	the request. The commissioner must conduct a background study under chapter 245C, 
417.24 	including a review of databases in section 245C.08, subdivision 1, paragraph (a), clauses 
417.25 	(1) to (5), for a provider described in this paragraph. The background study requirement 
417.26 	may be satisfied if the commissioner conducted a fingerprint-based background study on 
417.27 	the provider that includes a review of databases in section 245C.08, subdivision 1, paragraph 
417.28 	(a), clauses (1) to (5).
417.29 	(b) The commissioner shall revalidate each:
417.30 	(1) each provider under this subdivision at least once every five years; and
417.31 	(2) each personal care assistance agency under this subdivision once every three years.; 
417.32 	and
418.1 	(3) at the commissioner's discretion, any other Medicaid-only provider type the 
418.2 	commissioner deems "high risk" under this subdivision once every three years.
418.3 	(c) The commissioner shall conduct revalidation as follows:
418.4 	(1) provide 30-day notice of the revalidation due date including instructions for 
418.5 	revalidation and a list of materials the provider must submit;
418.6 	(2) if a provider fails to submit all required materials by the due date, notify the provider 
418.7 	of the deficiency within 30 days after the due date and allow the provider an additional 30 
418.8 	days from the notification date to comply; and
418.9 	(3) if a provider fails to remedy a deficiency within the 30-day time period, give 60-day 
418.10 	notice of termination and immediately suspend the provider's ability to bill. The provider 
418.11 	does not have the right to appeal suspension of ability to bill.
418.12 	(d) If a provider fails to comply with any individual provider requirement or condition 
418.13 	of participation, the commissioner may suspend the provider's ability to bill until the provider 
418.14 	comes into compliance. The commissioner's decision to suspend the provider is not subject 
418.15 	to an administrative appeal.
418.16 	(e) Correspondence and notifications, including notifications of termination and other 
418.17 	actions, may be delivered electronically to a provider's MN-ITS mailbox. This paragraph 
418.18 	does not apply to correspondences and notifications related to background studies.
418.19 	(f) If the commissioner or the Centers for Medicare and Medicaid Services determines 
418.20 	that a provider is designated "high-risk," the commissioner may withhold payment from 
418.21 	providers within that category upon initial enrollment for a 90-day period. The withholding 
418.22 	for each provider must begin on the date of the first submission of a claim.
418.23 	(g) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
418.24 	is licensed as a home care provider by the Department of Health under chapter 144A, or is 
418.25 	licensed as an assisted living facility under chapter 144G and has a home and 
418.26 	community-based services designation on the home care license under section 144A.484, 
418.27 	must designate an individual as the entity's compliance officer. The compliance officer 
418.28 	must:
418.29 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
418.30 	regulations and to prevent inappropriate claims submissions;
418.31 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
418.32 	provider entity including billers, on the policies and procedures under clause (1);
419.1 	(3) respond to allegations of improper conduct related to the provision or billing of 
419.2 	medical assistance services, and implement action to remediate any resulting problems;
419.3 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
419.4 	regulations;
419.5 	(5) promptly report to the commissioner any identified violations of medical assistance 
419.6 	laws or regulations; and
419.7 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
419.8 	overpayment, report the overpayment to the commissioner and make arrangements with 
419.9 	the commissioner for the commissioner's recovery of the overpayment.
419.10 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
419.11 	provider within a particular industry sector or category establish a compliance program that 
419.12 	contains the core elements established by the Centers for Medicare and Medicaid Services.
419.13 	(h) The commissioner may revoke the enrollment of an ordering or rendering provider 
419.14 	for a period of not more than one year, if the provider fails to maintain and, upon request 
419.15 	from the commissioner, provide access to documentation relating to written orders or requests 
419.16 	for payment for durable medical equipment, certifications for home health services, or 
419.17 	referrals for other items or services written or ordered by such provider, when the 
419.18 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
419.19 	to maintain documentation or provide access to documentation on more than one occasion. 
419.20 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
419.21 	under the provisions of section 256B.064.
419.22 	(i) The commissioner shall terminate or deny the enrollment of any individual or entity 
419.23 	if the individual or entity has been terminated from participation in Medicare or under the 
419.24 	Medicaid program or Children's Health Insurance Program of any other state. The 
419.25 	commissioner may exempt a rehabilitation agency from termination or denial that would 
419.26 	otherwise be required under this paragraph, if the agency:
419.27 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
419.28 	to the Medicare program;
419.29 	(2) meets all other applicable Medicare certification requirements based on an on-site 
419.30 	review completed by the commissioner of health; and
419.31 	(3) serves primarily a pediatric population.
419.32 	(j) As a condition of enrollment in medical assistance, the commissioner shall require 
419.33 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
420.1 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
420.2 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
420.3 	designated contractors to conduct unannounced on-site inspections of any provider location. 
420.4 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
420.5 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
420.6 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
420.7 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
420.8 	The commissioner's designations are not subject to administrative appeal.
420.9 	(k) As a condition of enrollment in medical assistance, the commissioner shall require 
420.10 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
420.11 	provider of five percent or higher, consent to criminal background checks, including 
420.12 	fingerprinting, when required to do so under state law or by a determination by the 
420.13 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
420.14 	high-risk for fraud, waste, or abuse.
420.15 	(l)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
420.16 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
420.17 	meeting the durable medical equipment provider and supplier definition in clause (3), 
420.18 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
420.19 	annually renewed and designates the Minnesota Department of Human Services as the 
420.20 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
420.21 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
420.22 	federally qualified health center, a home health agency, the Indian Health Service, a 
420.23 	pharmacy, and a rural health clinic.
420.24 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
420.25 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
420.26 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
420.27 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
420.28 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
420.29 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
420.30 	fees in pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions 
420.31 	from a surety bond must occur within six years from the date the debt is affirmed by a final 
420.32 	agency decision. An agency decision is final when the right to appeal the debt has been 
420.33 	exhausted or the time to appeal has expired under section 256B.064.
420.34 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
420.35 	purchase medical equipment or supplies for sale or rental to the general public and is able 
421.1 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
421.2 	sale or rental.
421.3 	(m) The Department of Human Services may require a provider to purchase a surety 
421.4 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
421.5 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
421.6 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
421.7 	provider or category of providers is designated high-risk pursuant to paragraph (f) and as 
421.8 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
421.9 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
421.10 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
421.11 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
421.12 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
421.13 	maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

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

421.15 	Sec. 10. Minnesota Statutes 2024, section 256B.0659, subdivision 21, is amended to read:
421.16 		Subd. 21.Requirements for provider enrollment of personal care assistance provider 
421.17 	agencies. (a) All personal care assistance provider agencies must provide, at the time of 
421.18 	enrollment, reenrollment, and revalidation as a personal care assistance provider agency in 
421.19 	a format determined by the commissioner, information and documentation that includes, 
421.20 	but is not limited to, the following:
421.21 	(1) the personal care assistance provider agency's current contact information including 
421.22 	address, telephone number, and email address;
421.23 	(2) proof of surety bond coverage for each business location providing services. Upon 
421.24 	new enrollment, or if the provider's Medicaid revenue in the previous calendar year is up 
421.25 	to and including $300,000, the provider agency must purchase a surety bond of $50,000. If 
421.26 	the Medicaid revenue in the previous year is over $300,000, the provider agency must 
421.27 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
421.28 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
421.29 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
421.30 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
421.31 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
421.32 	or the time to appeal has expired under section 256B.064;
422.1 	(3) proof of fidelity bond coverage in the amount of $20,000 for each business location 
422.2 	providing service;
422.3 	(4) proof of workers' compensation insurance coverage identifying the business location 
422.4 	where personal care assistance services are provided;
422.5 	(5) proof of liability insurance coverage identifying the business location where personal 
422.6 	care assistance services are provided and naming the department as a certificate holder;
422.7 	(6) a copy of the personal care assistance provider agency's written policies and 
422.8 	procedures including: hiring of employees; training requirements; service delivery; and 
422.9 	employee and consumer safety including process for notification and resolution of consumer 
422.10 	grievances, identification and prevention of communicable diseases, and employee 
422.11 	misconduct;
422.12 	(7) copies of all other forms the personal care assistance provider agency uses in the 
422.13 	course of daily business including, but not limited to:
422.14 	(i) a copy of the personal care assistance provider agency's time sheet if the time sheet 
422.15 	varies from the standard time sheet for personal care assistance services approved by the 
422.16 	commissioner, and a letter requesting approval of the personal care assistance provider 
422.17 	agency's nonstandard time sheet;
422.18 	(ii) the personal care assistance provider agency's template for the personal care assistance 
422.19 	care plan; and
422.20 	(iii) the personal care assistance provider agency's template for the written agreement 
422.21 	in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
422.22 	(8) a list of all training and classes that the personal care assistance provider agency 
422.23 	requires of its staff providing personal care assistance services;
422.24 	(9) documentation that the personal care assistance provider agency and staff have 
422.25 	successfully completed all the training required by this section, including the requirements 
422.26 	under subdivision 11, paragraph (d), if enhanced personal care assistance services are 
422.27 	provided and submitted for an enhanced rate under subdivision 17a;
422.28 	(10) documentation of the agency's marketing practices;
422.29 	(11) disclosure of ownership, leasing, or management of all residential properties that 
422.30 	is used or could be used for providing home care services;
422.31 	(12) documentation that the agency will use the following percentages of revenue 
422.32 	generated from the medical assistance rate paid for personal care assistance services for 
423.1 	employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal 
423.2 	care assistance choice option and 72.5 percent of revenue from other personal care assistance 
423.3 	providers. The revenue generated by the qualified professional and the reasonable costs 
423.4 	associated with the qualified professional shall not be used in making this calculation; and
423.5 	(13) effective May 15, 2010, documentation that the agency does not burden recipients' 
423.6 	free exercise of their right to choose service providers by requiring personal care assistants 
423.7 	to sign an agreement not to work with any particular personal care assistance recipient or 
423.8 	for another personal care assistance provider agency after leaving the agency and that the 
423.9 	agency is not taking action on any such agreements or requirements regardless of the date 
423.10 	signed.
423.11 	(b) Personal care assistance provider agencies shall provide the information specified 
423.12 	in paragraph (a) to the commissioner at the time the personal care assistance provider agency 
423.13 	enrolls as a vendor or upon request from the commissioner. The commissioner shall collect 
423.14 	the information specified in paragraph (a) from all personal care assistance providers 
423.15 	beginning July 1, 2009.
423.16 	(c) All personal care assistance provider agencies shall require all employees in 
423.17 	management and supervisory positions and owners of the agency who are active in the 
423.18 	day-to-day management and operations of the agency to complete mandatory training as 
423.19 	determined by the commissioner before submitting an application for enrollment of the 
423.20 	agency as a provider. All personal care assistance provider agencies shall also require 
423.21 	qualified professionals to complete the training required by subdivision 13 before submitting 
423.22 	an application for enrollment of the agency as a provider. Employees in management and 
423.23 	supervisory positions and owners who are active in the day-to-day operations of an agency 
423.24 	who have completed the required training as an employee with a personal care assistance 
423.25 	provider agency do not need to repeat the required training if they are hired by another 
423.26 	agency, if they have completed the training within the past three years. By September 1, 
423.27 	2010, the required training must be available with meaningful access according to title VI 
423.28 	of the Civil Rights Act and federal regulations adopted under that law or any guidance from 
423.29 	the United States Health and Human Services Department. The required training must be 
423.30 	available online or by electronic remote connection. The required training must provide for 
423.31 	competency testing. Personal care assistance provider agency billing staff shall complete 
423.32 	training about personal care assistance program financial management. This training is 
423.33 	effective July 1, 2009. Any personal care assistance provider agency enrolled before that 
423.34 	date shall, if it has not already, complete the provider training within 18 months of July 1, 
423.35 	2009. Any new owners or employees in management and supervisory positions involved 
424.1 	in the day-to-day operations are required to complete mandatory training as a requisite of 
424.2 	working for the agency. Personal care assistance provider agencies certified for participation 
424.3 	in Medicare as home health agencies are exempt from the training required in this 
424.4 	subdivision. When available, Medicare-certified home health agency owners, supervisors, 
424.5 	or managers must successfully complete the competency test.
424.6 	(d) All surety bonds, fidelity bonds, workers' compensation insurance, and liability 
424.7 	insurance required by this subdivision must be maintained continuously. After initial 
424.8 	enrollment, a provider must submit proof of bonds and required coverages at any time at 
424.9 	the request of the commissioner. Services provided while there are lapses in coverage are 
424.10 	not eligible for payment. Lapses in coverage may result in sanctions, including termination. 
424.11 	The commissioner shall send instructions and a due date to submit the requested information 
424.12 	to the personal care assistance provider agency.

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

424.14 	Sec. 11. Minnesota Statutes 2024, section 256B.85, subdivision 12, is amended to read:
424.15 		Subd. 12.Requirements for enrollment of CFSS agency-providers. (a) All CFSS 
424.16 	agency-providers must provide, at the time of enrollment, reenrollment, and revalidation 
424.17 	as a CFSS agency-provider in a format determined by the commissioner, information and 
424.18 	documentation that includes but is not limited to the following:
424.19 	(1) the CFSS agency-provider's current contact information including address, telephone 
424.20 	number, and email address;
424.21 	(2) proof of surety bond coverage. Upon new enrollment, or if the agency-provider's 
424.22 	Medicaid revenue in the previous calendar year is less than or equal to $300,000, the 
424.23 	agency-provider must purchase a surety bond of $50,000. If the agency-provider's Medicaid 
424.24 	revenue in the previous calendar year is greater than $300,000, the agency-provider must 
424.25 	purchase a surety bond of $100,000. The surety bond must be in a form approved by the 
424.26 	commissioner, must be renewed annually, and must allow for recovery of costs and fees in 
424.27 	pursuing a claim on the bond. Any action to obtain monetary recovery or sanctions from a 
424.28 	surety bond must occur within six years from the date the debt is affirmed by a final agency 
424.29 	decision. An agency decision is final when the right to appeal the debt has been exhausted 
424.30 	or the time to appeal has expired under section 256B.064;
424.31 	(3) proof of fidelity bond coverage in the amount of $20,000 per provider location;
424.32 	(4) proof of workers' compensation insurance coverage;
424.33 	(5) proof of liability insurance;
425.1 	(6) a copy of the CFSS agency-provider's organizational chart identifying the names 
425.2 	and roles of all owners, managing employees, staff, board of directors, and additional 
425.3 	documentation reporting any affiliations of the directors and owners to other service 
425.4 	providers;
425.5 	(7) proof that the CFSS agency-provider has written policies and procedures including: 
425.6 	hiring of employees; training requirements; service delivery; and employee and consumer 
425.7 	safety, including the process for notification and resolution of participant grievances, incident 
425.8 	response, identification and prevention of communicable diseases, and employee misconduct;
425.9 	(8) proof that the CFSS agency-provider has all of the following forms and documents:
425.10 	(i) a copy of the CFSS agency-provider's time sheet; and
425.11 	(ii) a copy of the participant's individual CFSS service delivery plan;
425.12 	(9) a list of all training and classes that the CFSS agency-provider requires of its staff 
425.13 	providing CFSS services;
425.14 	(10) documentation that the CFSS agency-provider and staff have successfully completed 
425.15 	all the training required by this section;
425.16 	(11) documentation of the agency-provider's marketing practices;
425.17 	(12) disclosure of ownership, leasing, or management of all residential properties that 
425.18 	are used or could be used for providing home care services;
425.19 	(13) documentation that the agency-provider will use at least the following percentages 
425.20 	of revenue generated from the medical assistance rate paid for CFSS services for CFSS 
425.21 	support worker wages and benefits: 72.5 percent of revenue from CFSS providers, except 
425.22 	100 percent of the revenue generated by a medical assistance rate increase due to a collective 
425.23 	bargaining agreement under section 179A.54 must be used for support worker wages and 
425.24 	benefits. The revenue generated by the worker training and development services and the 
425.25 	reasonable costs associated with the worker training and development services shall not be 
425.26 	used in making this calculation; and
425.27 	(14) documentation that the agency-provider does not burden participants' free exercise 
425.28 	of their right to choose service providers by requiring CFSS support workers to sign an 
425.29 	agreement not to work with any particular CFSS participant or for another CFSS 
425.30 	agency-provider after leaving the agency and that the agency is not taking action on any 
425.31 	such agreements or requirements regardless of the date signed.
426.1 	(b) CFSS agency-providers shall provide to the commissioner the information specified 
426.2 	in paragraph (a).
426.3 	(c) All CFSS agency-providers shall require all employees in management and 
426.4 	supervisory positions and owners of the agency who are active in the day-to-day management 
426.5 	and operations of the agency to complete mandatory training as determined by the 
426.6 	commissioner. Employees in management and supervisory positions and owners who are 
426.7 	active in the day-to-day operations of an agency who have completed the required training 
426.8 	as an employee with a CFSS agency-provider do not need to repeat the required training if 
426.9 	they are hired by another agency and they have completed the training within the past three 
426.10 	years. CFSS agency-provider billing staff shall complete training about CFSS program 
426.11 	financial management. Any new owners or employees in management and supervisory 
426.12 	positions involved in the day-to-day operations are required to complete mandatory training 
426.13 	as a requisite of working for the agency.
426.14 	(d) Agency-providers shall submit all required documentation in this section within 30 
426.15 	days of notification from the commissioner. If an agency-provider fails to submit all the 
426.16 	required documentation, the commissioner may take action under subdivision 23a.

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

426.18 	ARTICLE 15
426.19 	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL 
426.20 	POLICY

426.21 	Section 1. Minnesota Statutes 2024, section 142E.51, subdivision 5, is amended to read:
426.22 		Subd. 5.Administrative disqualification of child care providers caring for children 
426.23 	receiving child care assistance. (a) The department shall pursue an administrative 
426.24 	disqualification, if the child care provider is accused of committing an intentional program 
426.25 	violation, in lieu of a criminal action when it has not been pursued. Intentional program 
426.26 	violations include intentionally making false or misleading statements; receiving or providing 
426.27 	a kickback, as defined in subdivision 6, paragraph (b); intentionally misrepresenting, 
426.28 	concealing, or withholding facts; and repeatedly and intentionally violating program 
426.29 	regulations under this chapter. Intent may be proven by demonstrating a pattern of conduct 
426.30 	that violates program rules under this chapter.
426.31 	(b) To initiate an administrative disqualification, the commissioner must send written 
426.32 	notice using a signature-verified confirmed delivery method to the provider against whom 
426.33 	the action is being taken. Unless otherwise specified under this chapter or Minnesota Rules, 
426.34 	chapter 3400, the commissioner must send the written notice at least 15 calendar days before 
427.1 	the adverse action's effective date. The notice shall state (1) the factual basis for the agency's 
427.2 	determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary 
427.3 	recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed 
427.4 	action.
427.5 	(c) The provider may appeal an administrative disqualification by submitting a written 
427.6 	request to the state agency. A provider's request must be received by the state agency no 
427.7 	later than 30 days after the date the commissioner mails the notice.
427.8 	(d) The provider's appeal request must contain the following:
427.9 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
427.10 	dollar amount involved for each disputed item;
427.11 	(2) the computation the provider believes to be correct, if applicable;
427.12 	(3) the statute or rule relied on for each disputed item; and
427.13 	(4) the name, address, and telephone number of the person at the provider's place of 
427.14 	business with whom contact may be made regarding the appeal.
427.15 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
427.16 	preponderance of the evidence that the provider committed an intentional program violation.
427.17 	(f) The hearing is subject to the requirements of section 142A.20. The human services 
427.18 	judge may combine a fair hearing and administrative disqualification hearing into a single 
427.19 	hearing if the factual issues arise out of the same or related circumstances and the provider 
427.20 	receives prior notice that the hearings will be combined.
427.21 	(g) A provider found to have committed an intentional program violation and is 
427.22 	administratively disqualified must be disqualified, for a period of three years for the first 
427.23 	offense and permanently for any subsequent offense, from receiving any payments from 
427.24 	any child care program under this chapter.
427.25 	(h) Unless a timely and proper appeal made under this section is received by the 
427.26 	department, the administrative determination of the department is final and binding.

427.27 	Sec. 2. Minnesota Statutes 2024, section 142E.51, subdivision 6, is amended to read:
427.28 		Subd. 6.Prohibited hiring practice practices. (a) It is prohibited to hire a child care 
427.29 	center employee when, as a condition of employment, the employee is required to have one 
427.30 	or more children who are eligible for or receive child care assistance, if:
428.1 	(1) the individual hiring the employee is, or is acting at the direction of or in cooperation 
428.2 	with, a child care center provider, center owner, director, manager, license holder, or other 
428.3 	controlling individual; and
428.4 	(2) the individual hiring the employee knows or has reason to know the purpose in hiring 
428.5 	the employee is to obtain child care assistance program funds.
428.6 	(b) Program applicants, participants, and providers are prohibited from receiving or 
428.7 	providing a kickback or payment in exchange for obtaining or attempting to obtain child 
428.8 	care assistance benefits for their own financial gain. This paragraph does not apply to:
428.9 	(1) marketing or promotional offerings that directly benefit an applicant or recipient's 
428.10 	child or dependent for whom the child care provider is providing child care services; or
428.11 	(2) child care provider discounts, scholarships, or other financial assistance allowed 
428.12 	under section 142E.17, subdivision 7.
428.13 	(c) An attempt to buy or sell access to a family's child care subsidy benefits to an 
428.14 	unauthorized person by an applicant, a participant, or a provider is a kickback, an intentional 
428.15 	program violation under subdivision 5, and wrongfully obtaining assistance under section 
428.16 	256.98.

428.17 	Sec. 3. Minnesota Statutes 2024, section 245A.04, subdivision 1, is amended to read:
428.18 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
428.19 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
428.20 	application must be made on the forms and in the manner prescribed by the commissioner. 
428.21 	The commissioner shall provide the applicant with instruction in completing the application 
428.22 	and provide information about the rules and requirements of other state agencies that affect 
428.23 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
428.24 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
428.25 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
428.26 	this chapter that is owned by another license holder must apply for a license under this 
428.27 	chapter and comply with the application procedures in this section and section 245A.043.
428.28 	The commissioner shall act on the application within 90 working days after a complete 
428.29 	application and any required reports have been received from other state agencies or 
428.30 	departments, counties, municipalities, or other political subdivisions. The commissioner 
428.31 	shall not consider an application to be complete until the commissioner receives all of the 
428.32 	required information.
429.1 	When the commissioner receives an application for initial licensure that is incomplete 
429.2 	because the applicant failed to submit required documents or that is substantially deficient 
429.3 	because the documents submitted do not meet licensing requirements, the commissioner 
429.4 	shall provide the applicant written notice that the application is incomplete or substantially 
429.5 	deficient. In the written notice to the applicant the commissioner shall identify documents 
429.6 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
429.7 	that is substantially complete. An applicant's failure to submit a substantially complete 
429.8 	application after receiving notice from the commissioner is a basis for license denial under 
429.9 	section 245A.043.
429.10 	(b) An application for licensure must identify all controlling individuals as defined in 
429.11 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
429.12 	agent. The application must be signed by the authorized agent and must include the authorized 
429.13 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
429.14 	application for licensure, the authorized agent consents to electronic communication with 
429.15 	the commissioner throughout the application process. The authorized agent must be 
429.16 	authorized to accept service on behalf of all of the controlling individuals. A government 
429.17 	entity that holds multiple licenses under this chapter may designate one authorized agent 
429.18 	for all licenses issued under this chapter or may designate a different authorized agent for 
429.19 	each license. Service on the authorized agent is service on all of the controlling individuals. 
429.20 	It is not a defense to any action arising under this chapter that service was not made on each 
429.21 	controlling individual. The designation of a controlling individual as the authorized agent 
429.22 	under this paragraph does not affect the legal responsibility of any other controlling individual 
429.23 	under this chapter.
429.24 	(c) An applicant or license holder must have a policy that prohibits license holders, 
429.25 	employees, subcontractors, and volunteers, when directly responsible for persons served 
429.26 	by the program, from abusing prescription medication or being in any manner under the 
429.27 	influence of a chemical that impairs the individual's ability to provide services or care. The 
429.28 	license holder must train employees, subcontractors, and volunteers about the program's 
429.29 	drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact, 
429.30 	as defined in section 245C.02, subdivision 11, with a person served by the program.
429.31 	(d) An applicant and license holder must have a program grievance procedure that permits 
429.32 	persons served by the program and their authorized representatives to bring a grievance to 
429.33 	the highest level of authority in the program.
429.34 	(e) The commissioner may limit communication during the application process to the 
429.35 	authorized agent or the controlling individuals identified on the license application and for 
430.1 	whom a background study was initiated under chapter 245C. Upon implementation of the 
430.2 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
430.3 	manner prescribed by the commissioner. The commissioner may require the applicant, 
430.4 	except for child foster care, to demonstrate competence in the applicable licensing 
430.5 	requirements by successfully completing a written examination. The commissioner may 
430.6 	develop a prescribed written examination format.
430.7 	(f) When an applicant is an individual, the applicant must provide:
430.8 	(1) the applicant's taxpayer identification numbers including the Social Security number 
430.9 	or Minnesota tax identification number, and federal employer identification number if the 
430.10 	applicant has employees;
430.11 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
430.12 	of state that includes the complete business name, if any;
430.13 	(3) if doing business under a different name, the doing business as (DBA) name, as 
430.14 	registered with the secretary of state;
430.15 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
430.16 	Minnesota Provider Identifier (UMPI) number; and
430.17 	(5) at the request of the commissioner, the notarized signature of the applicant or 
430.18 	authorized agent.
430.19 	(g) When an applicant is an organization, the applicant must provide:
430.20 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
430.21 	identification number and federal employer identification number;
430.22 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
430.23 	of state that includes the complete business name, and if doing business under a different 
430.24 	name, the doing business as (DBA) name, as registered with the secretary of state;
430.25 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
430.26 	individuals, including all officers, owners, and managerial officials as defined in section 
430.27 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
430.28 	for each controlling individual;
430.29 	(4) if applicable, the applicant's NPI number and UMPI number;
430.30 	(5) the documents that created the organization and that determine the organization's 
430.31 	internal governance and the relations among the persons that own the organization, have 
430.32 	an interest in the organization, or are members of the organization, in each case as provided 
431.1 	or authorized by the organization's governing statute, which may include a partnership 
431.2 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
431.3 	or comparable documents as provided in the organization's governing statute; and
431.4 	(6) the notarized signature of the applicant or authorized agent.
431.5 	(h) When the applicant is a government entity, the applicant must provide:
431.6 	(1) the name of the government agency, political subdivision, or other unit of government 
431.7 	seeking the license and the name of the program or services that will be licensed;
431.8 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
431.9 	identification number and federal employer identification number;
431.10 	(3) a letter signed by the manager, administrator, or other executive of the government 
431.11 	entity authorizing the submission of the license application; and
431.12 	(4) if applicable, the applicant's NPI number and UMPI number.
431.13 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
431.14 	applicant or license holder must acknowledge on the form provided by the commissioner 
431.15 	if the applicant or license holder elects to receive any public funding reimbursement from 
431.16 	the commissioner for services provided under the license that:
431.17 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
431.18 	or registration requirements for receipt of public funding may be monitored by the 
431.19 	commissioner as part of a licensing investigation or licensing inspection; and
431.20 	(2) noncompliance with the provider enrollment agreement or registration requirements 
431.21 	for receipt of public funding that is identified through a licensing investigation or licensing 
431.22 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
431.23 	reimbursement for a service, may result in:
431.24 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
431.25 	section 245A.07;
431.26 	(ii) nonpayment of claims submitted by the license holder for public program 
431.27 	reimbursement;
431.28 	(iii) recovery of payments made for the service;
431.29 	(iv) disenrollment in the public payment program; or
431.30 	(v) other administrative, civil, or criminal penalties as provided by law.

432.1 	Sec. 4. Minnesota Statutes 2024, section 245A.04, subdivision 7, is amended to read:
432.2 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
432.3 	the program complies with all applicable rules and laws, the commissioner shall issue a 
432.4 	license consistent with this section or, if applicable, a temporary change of ownership license 
432.5 	under section 245A.043. At minimum, the license shall state:
432.6 	(1) the name of the license holder;
432.7 	(2) the address of the program;
432.8 	(3) the effective date and expiration date of the license;
432.9 	(4) the type of license;
432.10 	(5) the maximum number and ages of persons that may receive services from the program; 
432.11 	and
432.12 	(6) any special conditions of licensure.
432.13 	(b) The commissioner may issue a license for a period not to exceed two years if:
432.14 	(1) the commissioner is unable to conduct the observation required by subdivision 4, 
432.15 	paragraph (a), clause (3), because the program is not yet operational;
432.16 	(2) certain records and documents are not available because persons are not yet receiving 
432.17 	services from the program; and
432.18 	(3) the applicant complies with applicable laws and rules in all other respects.
432.19 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
432.20 	or persons will be placed or cared for in the licensed program.
432.21 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
432.22 	license if the applicant, license holder, or an affiliated controlling individual has:
432.23 	(1) been disqualified and the disqualification was not set aside and no variance has been 
432.24 	granted;
432.25 	(2) been denied a license under this chapter or chapter 142B within the past two years;
432.26 	(3) had a license issued under this chapter or chapter 142B revoked within the past five 
432.27 	years; or
432.28 	(4) failed to submit the information required of an applicant under subdivision 1, 
432.29 	paragraph (f), (g), or (h), after being requested by the commissioner.
433.1 	When a license issued under this chapter or chapter 142B is revoked, the license holder 
433.2 	and each affiliated controlling individual with a revoked license may not hold any license 
433.3 	under chapter 245A for five years following the revocation, and other licenses held by the 
433.4 	applicant or license holder or licenses affiliated with each controlling individual shall also 
433.5 	be revoked.
433.6 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
433.7 	affiliated with a license holder or controlling individual that had a license revoked within 
433.8 	the past five years if the commissioner determines that (1) the license holder or controlling 
433.9 	individual is operating the program in substantial compliance with applicable laws and rules 
433.10 	and (2) the program's continued operation is in the best interests of the community being 
433.11 	served.
433.12 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
433.13 	to an application that is affiliated with an applicant, license holder, or controlling individual 
433.14 	that had an application denied within the past two years or a license revoked within the past 
433.15 	five years if the commissioner determines that (1) the applicant or controlling individual 
433.16 	has operated one or more programs in substantial compliance with applicable laws and rules 
433.17 	and (2) the program's operation would be in the best interests of the community to be served.
433.18 	(g) In determining whether a program's operation would be in the best interests of the 
433.19 	community to be served, the commissioner shall consider factors such as the number of 
433.20 	persons served, the availability of alternative services available in the surrounding 
433.21 	community, the management structure of the program, whether the program provides 
433.22 	culturally specific services, and other relevant factors.
433.23 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
433.24 	living in the household where the services will be provided as specified under section 
433.25 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
433.26 	and no variance has been granted.
433.27 	(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
433.28 	under this chapter has been suspended or revoked and the suspension or revocation is under 
433.29 	appeal, the program may continue to operate pending a final order from the commissioner. 
433.30 	If the license under suspension or revocation will expire before a final order is issued, a 
433.31 	temporary provisional license may be issued provided any applicable license fee is paid 
433.32 	before the temporary provisional license is issued.
433.33 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
433.34 	a controlling individual or license holder, and the controlling individual or license holder 
434.1 	is ordered under section 245C.17 to be immediately removed from direct contact with 
434.2 	persons receiving services or is ordered to be under continuous, direct supervision when 
434.3 	providing direct contact services, the program may continue to operate only if the program 
434.4 	complies with the order and submits documentation demonstrating compliance with the 
434.5 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
434.6 	if the disqualification is not set aside and no variance is granted, the order to immediately 
434.7 	remove the individual from direct contact or to be under continuous, direct supervision 
434.8 	remains in effect pending the outcome of a hearing and final order from the commissioner.
434.9 	(k) Unless otherwise specified by statute, all licenses issued under this chapter expire 
434.10 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
434.11 	apply for and be grantedcomply with the requirements in section 245A.10 and be reissued 
434.12 	a new license to operate the program or the program must not be operated after the expiration 
434.13 	date. Adult foster care, family adult day services, child foster residence setting, and 
434.14 	community residential services license holders must apply for and be granted a new license 
434.15 	to operate the program or the program must not be operated after the expiration date. Upon 
434.16 	implementation of the provider licensing and reporting hub, licenses may be issued each 
434.17 	calendar year.
434.18 	(l) The commissioner shall not issue or reissue a license under this chapter if it has been 
434.19 	determined that a Tribal licensing authority has established jurisdiction to license the program 
434.20 	or service.
434.21 	(m) The commissioner of human services may coordinate and share data with the 
434.22 	commissioner of children, youth, and families to enforce this section.

434.23 	Sec. 5. Minnesota Statutes 2024, section 245A.16, subdivision 1, is amended to read:
434.24 		Subdivision 1.Delegation of authority to agencies. (a) County agencies that have been 
434.25 	designated by the commissioner to perform licensing functions and activities under section 
434.26 	245A.04; to recommend denial of applicants under section 245A.05; to issue correction 
434.27 	orders, to issue variances, and recommend a conditional license under section 245A.06; or 
434.28 	to recommend suspending or revoking a license or issuing a fine under section 245A.07, 
434.29 	shall comply with rules and directives of the commissioner governing those functions and 
434.30 	with this section. The following variances are excluded from the delegation of variance 
434.31 	authority and may be issued only by the commissioner:
434.32 	(1) dual licensure of child foster residence setting and community residential setting;
435.1 	(2) until the responsibility for family child foster care transfers to the commissioner of 
435.2 	children, youth, and families under Laws 2023, chapter 70, article 12, section 30, dual 
435.3 	licensure of family child foster care and family adult foster care;
435.4 	(3) until the responsibility for family child care transfers to the commissioner of children, 
435.5 	youth, and families under Laws 2023, chapter 70, article 12, section 30, dual licensure of 
435.6 	family adult foster care and family child care;
435.7 	(4) adult foster care or community residential setting maximum capacity;
435.8 	(5) adult foster care or community residential setting minimum age requirement;
435.9 	(6) child foster care maximum age requirement;
435.10 	(7) variances regarding disqualified individuals;
435.11 	(8) the required presence of a caregiver in the adult foster care residence during normal 
435.12 	sleeping hours;
435.13 	(9) variances to requirements relating to chemical use problems of a license holder or a 
435.14 	household member of a license holder; and
435.15 	(10) variances to section 142B.46 for the use of a cradleboard for a cultural 
435.16 	accommodation.
435.17 	(b) Once the respective responsibilities transfer from the commissioner of human services 
435.18 	to the commissioner of children, youth, and families, under Laws 2023, chapter 70, article 
435.19 	12, section 30, the commissioners of human services and children, youth, and families must 
435.20 	both approve a variance for dual licensure of family child foster care and family adult foster 
435.21 	care or family adult foster care and family child care. Variances under this paragraph are 
435.22 	excluded from the delegation of variance authority and may be issued only by both 
435.23 	commissioners.
435.24 	(c) For family adult day services programs, the commissioner may authorize licensing 
435.25 	reviews every two years after a licensee has had at least one annual review.
435.26 	(d) A (c) An adult foster care, family adult day services, child foster residence setting, 
435.27 	or community residential services license issued under this section may be issued for up to 
435.28 	two years until implementation of the provider licensing and reporting hub. Upon 
435.29 	implementation of the provider licensing and reporting hub, licenses may be issued each 
435.30 	calendar year.
435.31 	(e) (d) During implementation of chapter 245D, the commissioner shall consider:
435.32 	(1) the role of counties in quality assurance;
436.1 	(2) the duties of county licensing staff; and
436.2 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
436.3 	through which some licensing duties under chapter 245D may be delegated by the 
436.4 	commissioner to the counties.
436.5 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
436.6 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
436.7 	(f) (e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
436.8 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
436.9 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
436.10 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county agencies.

436.11 	Sec. 6. Minnesota Statutes 2024, section 245A.242, subdivision 2, is amended to read:
436.12 		Subd. 2.Emergency overdose treatment. (a) A license holder must maintain a supply 
436.13 	of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency 
436.14 	treatment of opioid overdose and must have a written standing order protocol by a physician 
436.15 	who is licensed under chapter 147, advanced practice registered nurse who is licensed under 
436.16 	chapter 148, or physician assistant who is licensed under chapter 147A, that permits the 
436.17 	license holder to maintain a supply of opiate antagonists on site. A license holder must 
436.18 	require staff to undergo training in the specific mode of administration used at the program, 
436.19 	which may include intranasal administration, intramuscular injection, or both, before the 
436.20 	staff has direct contact, as defined in section 245C.02, subdivision 11, with a person served 
436.21 	by the program.
436.22 	(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960 
436.23 	and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
436.24 	(1) emergency opiate antagonist medications are not required to be stored in a locked 
436.25 	area and staff and adult clients may carry this medication on them and store it in an unlocked 
436.26 	location;
436.27 	(2) staff persons who only administer emergency opiate antagonist medications only 
436.28 	require the training required by paragraph (a), which any knowledgeable trainer may provide. 
436.29 	The trainer is not required to be a registered nurse or part of an accredited educational 
436.30 	institution; and
436.31 	(3) nonresidential substance use disorder treatment programs that do not administer 
436.32 	client medications beyond emergency opiate antagonist medications are not required to 
436.33 	have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and 
437.1 	must instead describe the program's procedures for administering opiate antagonist 
437.2 	medications in the license holder's description of health care services under section 245G.08, 
437.3 	subdivision 1.

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

437.9 	Sec. 8. Minnesota Statutes 2024, section 245C.08, subdivision 3, is amended to read:
437.10 		Subd. 3.Arrest and investigative information. (a) For any background study completed 
437.11 	under this section, if the commissioner has reasonable cause to believe the information is 
437.12 	pertinent to the disqualification of an individual, the commissioner also may review arrest 
437.13 	and investigative information from:
437.14 	(1) the Bureau of Criminal Apprehension;
437.15 	(2) the commissioners of children, youth, and families; health; and human services;
437.16 	(3) a county attorney prosecutor;
437.17 	(4) a county sheriff;
437.18 	(5) (4) a county agency;
437.19 	(6) (5) a local chief of police law enforcement agency;
437.20 	(7) (6) other states;
437.21 	(8) (7) the courts;
437.22 	(9) (8) the Federal Bureau of Investigation;
437.23 	(10) (9) the National Criminal Records Repository; and
437.24 	(11) (10) criminal records from other states.
437.25 	(b) Except when specifically required by law, the commissioner is not required to conduct 
437.26 	more than one review of a subject's records from the Federal Bureau of Investigation if a 
437.27 	review of the subject's criminal history with the Federal Bureau of Investigation has already 
437.28 	been completed by the commissioner and there has been no break in the subject's affiliation 
437.29 	with the entity that initiated the background study.
438.1 	(c) If the commissioner conducts a national criminal history record check when required 
438.2 	by law and uses the information from the national criminal history record check to make a 
438.3 	disqualification determination, the data obtained is private data and cannot be shared with 
438.4 	private agencies or prospective employers of the background study subject.
438.5 	(d) If the commissioner conducts a national criminal history record check when required 
438.6 	by law and uses the information from the national criminal history record check to make a 
438.7 	disqualification determination, the license holder or entity that submitted the study is not 
438.8 	required to obtain a copy of the background study subject's disqualification letter under 
438.9 	section 245C.17, subdivision 3.

438.10 	Sec. 9. Minnesota Statutes 2024, section 245C.22, subdivision 5, is amended to read:
438.11 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
438.12 	this section, the disqualified individual remains disqualified, but may hold a license and 
438.13 	have direct contact with or access to persons receiving services. Except as provided in 
438.14 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
438.15 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
438.16 	For personal care provider organizations, financial management services organizations, 
438.17 	community first services and supports organizations, unlicensed home and community-based 
438.18 	organizations, and consumer-directed community supports organizations, the commissioner's 
438.19 	set-aside may further be limited to a specific individual who is receiving services. For new 
438.20 	background studies required under section 245C.04, subdivision 1, paragraph (h), if an 
438.21 	individual's disqualification was previously set aside for the license holder's program and 
438.22 	the new background study results in no new information that indicates the individual may 
438.23 	pose a risk of harm to persons receiving services from the license holder, the previous 
438.24 	set-aside shall remain in effect.
438.25 	(b) If the commissioner has previously set aside an individual's disqualification for one 
438.26 	or more programs or agencies, and the individual is the subject of a subsequent background 
438.27 	study for a different program or agency, the commissioner shall determine whether the 
438.28 	disqualification is set aside for the program or agency that initiated the subsequent 
438.29 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
438.30 	working days if all of the following criteria are met:
438.31 	(1) the subsequent background study was initiated in connection with a program licensed 
438.32 	or regulated under the same provisions of law and rule for at least one program for which 
438.33 	the individual's disqualification was previously set aside by the commissioner;
439.1 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
439.2 	subdivision 1 or 2;
439.3 	(3) the commissioner has received no new information to indicate that the individual 
439.4 	may pose a risk of harm to any person served by the program; and
439.5 	(4) the previous set-aside was not limited to a specific person receiving services.
439.6 	(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the 
439.7 	substance use disorder field, if the commissioner has previously set aside an individual's 
439.8 	disqualification for one or more programs or agencies in the substance use disorder treatment 
439.9 	field, and the individual is the subject of a subsequent background study for a different 
439.10 	program or agency in the substance use disorder treatment field, the commissioner shall set 
439.11 	aside the disqualification for the program or agency in the substance use disorder treatment 
439.12 	field that initiated the subsequent background study when the criteria under paragraph (b), 
439.13 	clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified 
439.14 	in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued 
439.15 	within 15 working days.
439.16 	(d) When a disqualification is set aside under paragraph (b), the notice of background 
439.17 	study results issued under section 245C.17, in addition to the requirements under section 
439.18 	245C.17, shall state that the disqualification is set aside for the program or agency that 
439.19 	initiated the subsequent background study. The notice must inform the individual that the 
439.20 	individual may request reconsideration of the disqualification under section 245C.21 on the 
439.21 	basis that the information used to disqualify the individual is incorrect.

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

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

439.30 	Sec. 11. Minnesota Statutes 2024, section 256.98, subdivision 1, is amended to read:
439.31 		Subdivision 1.Wrongfully obtaining assistance. (a) A person who commits any of the 
439.32 	following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897, 
440.1 	the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program 
440.2 	formerly codified in sections 256.72 to 256.871, chapter 142G, 256B, 256D, 256I, 256K, 
440.3 	or 256L, child care assistance programs, and emergency assistance programs under section 
440.4 	256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses 
440.5 	(1) to (5):
440.6 	(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a 
440.7 	willfully false statement or representation, by intentional concealment of any material fact, 
440.8 	or by impersonation or other fraudulent device, assistance or the continued receipt of 
440.9 	assistance, to include child care assistance or food benefits produced according to sections 
440.10 	145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94, 
440.11 	and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that 
440.12 	to which the person is entitled;
440.13 	(2) knowingly aids or abets in buying or in any way disposing of the property of a 
440.14 	recipient or applicant of assistance without the consent of the county agency; or
440.15 	(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments 
440.16 	to which the individual is not entitled as a provider of subsidized child care, or by furnishing 
440.17 	or concurring in receiving or providing any prohibited payment, as defined in section 
440.18 	609.542, subdivision 2, including a kickback, or by submitting or aiding or abetting the 
440.19 	submission of a willfully false claim for child care assistance.
440.20 	(b) The continued receipt of assistance to which the person is not entitled or greater than 
440.21 	that to which the person is entitled as a result of any of the acts, failure to act, or concealment 
440.22 	described in this subdivision shall be deemed to be continuing offenses from the date that 
440.23 	the first act or failure to act occurred.

440.24 	Sec. 12. Minnesota Statutes 2024, section 256B.064, subdivision 1a, is amended to read:
440.25 		Subd. 1a.Grounds for sanctions. (a) The commissioner may impose sanctions against 
440.26 	any individual or entity that receives payments from medical assistance or provides goods 
440.27 	or services for which payment is made from medical assistance for any of the following: 
440.28 	(1) fraud, theft, or abuse in connection with the provision of goods and services to recipients 
440.29 	of public assistance for which payment is made from medical assistance; (2) a pattern of 
440.30 	presentment of false or duplicate claims or claims for services not medically necessary; (3) 
440.31 	a pattern of making false statements of material facts for the purpose of obtaining greater 
440.32 	compensation than that to which the individual or entity is legally entitled; (4) suspension 
440.33 	or termination as a Medicare vendor; (5) refusal to grant the state agency access during 
440.34 	regular business hours to examine all records necessary to disclose the extent of services 
441.1 	provided to program recipients and appropriateness of claims for payment; (6) failure to 
441.2 	repay an overpayment or a fine finally established under this section; (7) failure to correct 
441.3 	errors in the maintenance of health service or financial records for which a fine was imposed 
441.4 	or after issuance of a warning by the commissioner; (8) soliciting or receiving any 
441.5 	remuneration as defined in section 609.542, subdivision 3, or United States Code, title 42, 
441.6 	section 1320a-7b(b)(1), and a criminal conviction is not required; (9) paying or offering to 
441.7 	pay any remuneration as defined in section 609.542, subdivision 2, or United States Code, 
441.8 	title 42, section 1320a-7b(b)(2), and a criminal conviction is not required; and (8) (10) any 
441.9 	reason for which an individual or entity could be excluded from participation in the Medicare 
441.10 	program under section 1128, 1128A, or 1866(b)(2) of the Social Security Act. For the 
441.11 	purposes of this section, goods or services for which payment is made from medical 
441.12 	assistance includes but is not limited to care and services identified in section 256B.0625
441.13 	or provided pursuant to any federally approved waiver.
441.14 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
441.15 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
441.16 	(h).

441.17 	Sec. 13. Minnesota Statutes 2024, section 256B.12, is amended to read:
441.18 	256B.12 LEGAL REPRESENTATION.
441.19 	The attorney general or the appropriate county attorney appearing at the direction of the 
441.20 	attorney general shall be the attorney for the state agency, and the county attorney of the 
441.21 	appropriate county shall be the attorney for the localcounty agency in all matters pertaining 
441.22 	hereto. To prosecute under this chapter or sections 609.466and;609.52, subdivision 2,; and 
441.23 	609.542 or to recover payments wrongfully made under this chapter, the attorney general 
441.24 	or the appropriate county attorney, acting independently or at the direction of the attorney 
441.25 	general may institute a criminal or civil action.

441.26 	Sec. 14. [609.542] HUMAN SERVICES PROGRAMS CRIMES.
441.27 		Subdivision 1.Definition. For purposes of this section, "federal health care program" 
441.28 	has the meaning given in United States Code, title 42, section 1320a-7b(f).
441.29 		Subd. 2.Prohibited payments made relating to human services programs. A person 
441.30 	is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
441.31 	intentionally offers or pays any remuneration, including any kickback, bribe, or rebate, 
441.32 	directly or indirectly, overtly or covertly, in cash or in kind, to another person:
442.1 	(1) to induce that person to apply for, receive, or induce another person to apply for or 
442.2 	receive an item or service for which payment may be made in whole or in part under a 
442.3 	federal health care program, state behavioral health program under section 254B.04, or 
442.4 	family program under chapter 142E; or
442.5 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
442.6 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
442.7 	in whole or in part, or which is administered in whole or in part under a federal health care 
442.8 	program, state behavioral health program under section 254B.04, or family program under 
442.9 	chapter 142E.
442.10 		Subd. 3.Receipt of prohibited payments relating to human services programs. A 
442.11 	person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person 
442.12 	intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate, 
442.13 	directly or indirectly, overtly or covertly, in cash or in kind:
442.14 	(1) in return for applying for or receiving a human services benefit, service, or grant for 
442.15 	which payment may be made in whole or in part under a federal health care program, state 
442.16 	behavioral health program under section 254B.04, or family program under chapter 142E; 
442.17 	or
442.18 	(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing, 
442.19 	leasing, or ordering of any good, facility, service, or item for which payment may be made 
442.20 	in whole or in part under a federal health care program, state behavioral health program 
442.21 	under section 254B.04, or family program under chapter 142E.
442.22 		Subd. 4.Exemptions. (a) This section does not apply to remuneration exempted under 
442.23 	the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment 
442.24 	made under a federal health care program which is exempt from liability by United States 
442.25 	Code, title 42, section 1001.952.
442.26 	(b) This section does not apply to:
442.27 	(1) any amount paid by an employer to a bona fide employee for providing covered 
442.28 	items or services under chapter 142E while acting in the course and scope of employment; 
442.29 	or
442.30 	(2) child care provider discounts, scholarships, or other financial assistance to families 
442.31 	allowed under section 142E.17, subdivision 7.
442.32 		Subd. 5.Sentence. (a) A person convicted under subdivision 2 or 3 may be sentenced 
442.33 	pursuant to section 609.52, subdivision 3.
443.1 	(b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market 
443.2 	value of the good, facility, service, or item that was obtained as a direct or indirect result 
443.3 	of the prohibited payment.
443.4 	(c) For purposes of sentencing a violation of subdivision 3, "value" means the amount 
443.5 	of the prohibited payment solicited or received.
443.6 	(d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed 
443.7 	to have been rendered in violation of this section is noncompensable and unenforceable at 
443.8 	the time the claim is made.
443.9 		Subd. 6.Aggregation. In a prosecution under this section, the value of the money, 
443.10 	property, or benefit received or solicited by the defendant within a six-month period may 
443.11 	be aggregated and the defendant charged accordingly in applying the provisions of 
443.12 	subdivision 5.
443.13 		Subd. 7.False claims. In addition to the penalties provided for in this section, a claim, 
443.14 	as defined in section 15C.01, subdivision 2, that includes items or services resulting from 
443.15 	a violation of this section constitutes a false or fraudulent claim for purposes of section 
443.16 	15C.02.

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

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

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

443.23 	Sec. 16. MODIFICATION OF DEFINITIONS.
 443.24 	For the purposes of implementing the provider licensing and reporting hub, the 
443.25 	commissioner of human services may modify definitions in Minnesota Statutes, chapters 
443.26 	142B, 245A, 245D, 245F, 245G, and 245I, and Minnesota Rules, chapters 2960, 9502, 
443.27 	9520, 9530, 9543, 9555, and 9570. Definitions changed pursuant to this section do not affect 
443.28 	the rights, responsibilities, or duties of the commissioner; the Department of Human Services; 
443.29 	programs administered, licensed, certified, or funded by the commissioner; or the programs' 
443.30 	employees or clients. This section expires August 31, 2028.

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

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

444.4 	ARTICLE 16
444.5 	ECONOMIC SUPPORTS

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

444.13 	Sec. 2. [142F.141] PREPARED MEALS FOOD RELIEF GRANTS.
444.14 		Subdivision 1.Establishment The commissioner of children, youth, and families must 
444.15 	establish a prepared meals grant program to provide hunger relief to Minnesotans 
444.16 	experiencing food insecurity and who have difficulty preparing meals due to limited mobility, 
444.17 	disability, or limited resources.
444.18 		Subd. 2.Eligible grantees. (a) Eligible grantees are nonprofit organizations and 
444.19 	Minnesota Tribal governments, as defined in section 10.65, with a demonstrated history of 
444.20 	providing and distributing prepared meals that are customized for the population that the 
444.21 	organization or Tribal government serves, including tailoring meals to cultural, religious, 
444.22 	and dietary needs.
444.23 	(b) An individual or nonprofit organization affiliated with Feeding Our Future is 
444.24 	prohibited from receiving grant funds under this section.
444.25 		Subd. 3.Application. Eligible grantees applying for grant money under this section 
444.26 	must apply to the commissioner on the forms and in the time and manner established by 
444.27 	the commissioner.
444.28 		Subd. 4.Allowable uses of grant funds. (a) Eligible grantees must use grant money 
444.29 	awarded under this section to fund a prepared meals program that primarily targets individuals 
444.30 	18 years of age or older and under 61 years of age, and their dependents experiencing food 
445.1 	insecurity. Grantees must not receive funding from other state and federal meal programs 
445.2 	for activities funded under this section.
445.3 	(b) Grantees must prepare meals in a licensed commercial kitchen and distribute meals 
445.4 	according to ServSafe guidelines.
445.5 		Subd. 5.Duties of the commissioner. (a) The commissioner must develop a process 
445.6 	for determining eligible grantees under this section.
445.7 	(b) In granting money, the commissioner must prioritize applicants that:
445.8 	(1) have demonstrated the ability to provide prepared meals to racially, ethnically, and 
445.9 	geographically diverse populations who are at greater risk for food insecurity;
445.10 	(2) work with external community partners to distribute meals targeting nontraditional 
445.11 	meal sites to reach those most in need; and
445.12 	(3) have a demonstrated history of sourcing at least 50 percent of the prepared meal 
445.13 	ingredients from:
445.14 	(i) Minnesota food producers and processors; or
445.15 	(ii) food that is donated or would otherwise be waste.
445.16 	(c) The commissioner must consider geographic distribution to ensure statewide coverage 
445.17 	when awarding grants and must minimize the number of grantees to simplify administrative 
445.18 	burdens and costs.
445.19 		Subd. 6.Reporting. (a) Grantees receiving money under this section must retain records 
445.20 	documenting expenditure of the money and comply with any additional documentation 
445.21 	requirements imposed by the commissioner.
445.22 	(b) Grantees must report on the use of money received under this section to the 
445.23 	commissioner. The commissioner must determine the timing and form required for the 
445.24 	reports.
445.25 		Subd. 7.Ineligible expenditures. If the commissioner determines that ineligible 
445.26 	expenditures are made by a grantee under this section, the ineligible amount must be repaid 
445.27 	by the grantee to the commissioner and deposited in the general fund.

445.28 	Sec. 3. [142F.16] REGIONAL FOOD BANK GRANTS.
445.29 		Subdivision 1.Establishment. The commissioner of children, youth, and families must 
445.30 	establish regional food bank grants to increase the availability of food to individuals and 
445.31 	families in need.
446.1 		Subd. 2.Distribution of appropriation. The commissioner must distribute funds 
446.2 	appropriated under this section to regional food banks and Minnesota Tribal governments, 
446.3 	as defined in section 10.65. The commissioner must distribute the funds under this section 
446.4 	in accordance with the federal The Emergency Food Assistance Program (TEFAP) formula 
446.5 	and the guidelines of the United States Department of Agriculture. The commissioner may 
446.6 	increase or decrease a qualifying recipient's proportionate amount if the commissioner 
446.7 	determines the increase or decrease is necessary to meet community needs or demands for 
446.8 	food in Minnesota. Food banks and Minnesota Tribal governments  must be in compliance 
446.9 	with TEFAP regulations from the United States Department of Agriculture in order to 
446.10 	receive funding under this section, as applicable.
446.11 		Subd. 3.Allowable uses of funds. (a) Grant funds distributed to regional food banks 
446.12 	under this section must be used to purchase, transport, and coordinate the distribution of 
446.13 	food to TEFAP providers.
446.14 	(b) Grant funds distributed to Minnesota Tribal governments under this section must be 
446.15 	used to purchase, transport, and coordinate the distribution of food to individuals and families 
446.16 	in need.
446.17 	(c) Grant funds distributed under this section may also be used to purchase personal 
446.18 	hygiene products, including but not limited to diapers and toilet paper.
446.19 		Subd. 4.Reporting. (a) Food banks and Minnesota Tribal governments receiving grant 
446.20 	funds under this section must retain records documenting expenditures of the grant funds 
446.21 	and comply with any additional documentation requirements imposed by the commissioner.
446.22 	(b) Food banks and Minnesota Tribal governments must report on the use of grant funds 
446.23 	received under this section to the commissioner. The commissioner must determine the 
446.24 	timing and form required for the reports.
446.25 		Subd. 5.Ineligible expenditures. If the commissioner determines that ineligible 
446.26 	expenditures were made by a food bank or Minnesota Tribal government under this section, 
446.27 	the ineligible amount must be repaid by the food bank or Tribal government to the 
446.28 	commissioner and deposited in the general fund.

446.29 	Sec. 4. FAMILY SUPPORTIVE HOUSING GRANT PROGRAM.
 446.30 		Subdivision 1.Establishment; purpose. The commissioner of human services must 
446.31 	establish a family supportive housing grant program to award competitive grants to eligible 
446.32 	applicants operating supportive housing for families.
446.33 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
447.1 	(b) "Family" means a nontemporary household unit that includes at least one child and 
447.2 	one parent or legal guardian.
447.3 	(c) "Family permanent supportive housing" means housing that:
447.4 	(1) is not time limited;
447.5 	(2) is affordable for those at or below 30 percent of the area median income;
447.6 	(3) offers specialized support services to residents tailored to the needs of children and 
447.7 	families; and
447.8 	(4) is available to families with multiple barriers to obtaining and maintaining housing, 
447.9 	including but not limited to those who are homeless or at risk of homelessness; those with 
447.10 	mental illness, substance use disorders, and other disabilities; and those referred by child 
447.11 	protection services.
447.12 	(d) "Resident" means a resident of family permanent supportive housing.
447.13 		Subd. 3.Eligibility. To be eligible for a grant under this section, an applicant must be 
447.14 	currently operating family supportive housing and be a nonprofit organization or a Minnesota 
447.15 	Tribal government.
447.16 		Subd. 4.Application and administration. (a) When applying to the commissioner for 
447.17 	a grant under this section, each applicant must include the number of families they estimate 
447.18 	to serve.
447.19 	(b) Within available appropriations, the commissioner must award grant money to eligible 
447.20 	grantees based on the estimated number of families served. The commissioner must use 
447.21 	best efforts to ensure that 60 percent of the families served are within the seven-county 
447.22 	metropolitan area and 40 percent of the families served are outside the seven-county 
447.23 	metropolitan area. The commissioner must use best efforts to ensure that ten percent of the 
447.24 	overall families served are members of Minnesota's Tribal Nations.
447.25 	(c) By June 30, 2026, each grantee must provide a report to the commissioner on how 
447.26 	many families the grantee served and what services the grantee provided.
447.27 		Subd. 5.Eligible uses of grant money. An eligible applicant that receives grant money 
447.28 	under this section must use the money for the services described in subdivision 6.
447.29 		Subd. 6.Specialized family support services. Specialized family support services are 
447.30 	nonmandatory, trauma-informed, and culturally appropriate services designed to help family 
447.31 	residents maintain secure, dignified housing and provide a safe, stable environment for 
447.32 	children. Services provided may include but are not limited to:
448.1 	(1) age-appropriate child-centric services for education and enrichment;
448.2 	(2) stabilization services such as:
448.3 	(i) educational assessment and referrals to educational programs;
448.4 	(ii) career planning, work skills training, job placement, and employment retention;
448.5 	(iii) budgeting and money management;
448.6 	(iv) referral for counseling regarding violence and sexual exploitation;
448.7 	(v) referral for medical or psychiatric services or substance use disorder treatment;
448.8 	(vi) parenting skills training;
448.9 	(vii) self-sufficiency support services or life skills training, including tenant education 
448.10 	and support to sustain housing; and
448.11 	(viii) aftercare and follow-up services; and
448.12 	(3) 24-hour-a-day, seven-day-a-week on-site staffing, including but not limited to front 
448.13 	desk and security.

448.14 	ARTICLE 17
448.15 	CHILD PROTECTION AND WELFARE

448.16 	Section 1. Minnesota Statutes 2024, section 142A.03, subdivision 2, is amended to read:
448.17 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
448.18 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
448.19 	out the duties and responsibilities of the commissioner. Any money received under this 
448.20 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
448.21 	The commissioner must biennially report to the chairs and ranking minority members of 
448.22 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
448.23 	list of all grants and gifts received under this subdivision.
448.24 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
448.25 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
448.26 	commissioner.
448.27 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
448.28 	private agencies, for-profit and nonprofit organizations, and individuals using appropriated 
448.29 	money.
449.1 	(d) The commissioner must develop program objectives and performance measures for 
449.2 	evaluating progress toward achieving the objectives. The commissioner must identify the 
449.3 	objectives, performance measures, and current status of achieving the measures in a biennial 
449.4 	report to the chairs and ranking minority members of relevant legislative committees and 
449.5 	divisions. The report is due no later than January 15 each even-numbered year. The report 
449.6 	must include, when possible, the following objectives:
449.7 	(1) centering and including the lived experiences of children and youth, including those 
449.8 	with disabilities and mental illness and their families, in all aspects of the department's work;
449.9 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
449.10 	children and youth facing racial, economic, or geographic inequities;
449.11 	(3) increasing coordination and reducing inefficiencies among the department's programs 
449.12 	and the funding sources that support the programs;
449.13 	(4) increasing the alignment and coordination of family access to child care and early 
449.14 	learning programs and improving systems of support for early childhood and learning 
449.15 	providers and services;
449.16 	(5) improving the connection between the department's programs and the kindergarten 
449.17 	through grade 12 and higher education systems; and
449.18 	(6) minimizing and streamlining the effort required of youth and families to receive 
449.19 	services to which the youth and families are entitled.
449.20 	(e) The commissioner shall administer and supervise the forms of public assistance and 
449.21 	other activities or services that are vested in the commissioner. Administration and 
449.22 	supervision of activities or services includes but is not limited to assuring timely and accurate 
449.23 	distribution of benefits, completeness of service, and quality program management. In 
449.24 	addition to administering and supervising activities vested by law in the department, the 
449.25 	commissioner has the authority to:
449.26 	(1) require county agency participation in training and technical assistance programs to 
449.27 	promote compliance with statutes, rules, federal laws, regulations, and policies governing 
449.28 	the programs and activities administered by the commissioner;
449.29 	(2) monitor, on an ongoing basis, the performance of county agencies in the operation 
449.30 	and administration of activities and programs; enforce compliance with statutes, rules, 
449.31 	federal laws, regulations, and policies governing welfare services; and promote excellence 
449.32 	of administration and program operation;
450.1 	(3) develop a quality control program or other monitoring program to review county 
450.2 	performance and accuracy of benefit determinations;
450.3 	(4) require county agencies to make an adjustment to the public assistance benefits issued 
450.4 	to any individual consistent with federal law and regulation and state law and rule and to 
450.5 	issue or recover benefits as appropriate;
450.6 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
450.7 	administrative reimbursement according to the procedures set forth in section 142A.10;
450.8 	(6) make contracts with and grants to public and private agencies and organizations, 
450.9 	both for-profit and nonprofit, and individuals, using appropriated funds; and
450.10 	(7) enter into contractual agreements with federally recognized Indian Tribes with a 
450.11 	reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved 
450.12 	family assistance program or any other program under the supervision of the commissioner. 
450.13 	The commissioner shall consult with the affected county or counties in the contractual 
450.14 	agreement negotiations, if the county or counties wish to be included, in order to avoid the 
450.15 	duplication of county and Tribal assistance program services. The commissioner may 
450.16 	establish necessary accounts for the purposes of receiving and disbursing funds as necessary 
450.17 	for the operation of the programs.
450.18 	The commissioner shall work in conjunction with the commissioner of human services to 
450.19 	carry out the duties of this paragraph when necessary and feasible.
450.20 	(f) The commissioner shall inform county agencies, on a timely basis, of changes in 
450.21 	statute, rule, federal law, regulation, and policy necessary to county agency administration 
450.22 	of the programs and activities administered by the commissioner.
450.23 	(g) The commissioner shall administer and supervise child welfare activities, including 
450.24 	promoting the enforcement of laws preventing child maltreatment and protecting children 
450.25 	with a disability and children who are in need of protection or services, licensing and 
450.26 	supervising child care and child-placing agencies, and supervising the care of children in 
450.27 	foster care. The commissioner shall coordinate with the commissioner of human services 
450.28 	on activities impacting children overseen by the Department of Human Services, such as 
450.29 	disability services, behavioral health, and substance use disorder treatment.
450.30 	(h) The commissioner shall assist and cooperate with local, state, and federal departments, 
450.31 	agencies, and institutions.
451.1 	(i) The commissioner shall establish and maintain any administrative units reasonably 
451.2 	necessary for the performance of administrative functions common to all divisions of the 
451.3 	department.
451.4 	(j) The commissioner shall act as designated guardian of children pursuant to chapter 
451.5 	260C. For children under the guardianship of the commissioner or a Tribe in Minnesota 
451.6 	recognized by the Secretary of the Interior whose interests would be best served by adoptive 
451.7 	placement, the commissioner may contract with a licensed child-placing agency or a 
451.8 	Minnesota Tribal social services agency to provide adoption services. For children in 
451.9 	out-of-home care whose interests would be best served by a transfer of permanent legal and 
451.10 	physical custody to a relative under section 260C.515, subdivision 4, or equivalent in Tribal 
451.11 	code, the commissioner may contract with a licensed child-placing agency or a Minnesota 
451.12 	Tribal social services agency to provide permanency services. A contract with a licensed 
451.13 	child-placing agency must be designed to supplement existing county efforts and may not 
451.14 	replace existing county programs or Tribal social services, unless the replacement is agreed 
451.15 	to by the county board and the appropriate exclusive bargaining representative, Tribal 
451.16 	governing body, or the commissioner has evidence that child placements of the county 
451.17 	continue to be substantially below that of other counties. Funds encumbered and obligated 
451.18 	under an agreement for a specific child shall remain available until the terms of the agreement 
451.19 	are fulfilled or the agreement is terminated.
451.20 	(k) The commissioner has the authority to conduct and administer experimental projects 
451.21 	to test methods and procedures of administering assistance and services to recipients or 
451.22 	potential recipients of public benefits. To carry out the experimental projects, the 
451.23 	commissioner may waive the enforcement of existing specific statutory program 
451.24 	requirements, rules, and standards in one or more counties. The order establishing the waiver 
451.25 	must provide alternative methods and procedures of administration and must not conflict 
451.26 	with the basic purposes, coverage, or benefits provided by law. No project under this 
451.27 	paragraph shall exceed four years. No order establishing an experimental project as authorized 
451.28 	by this paragraph is effective until the following conditions have been met:
451.29 	(1) the United States Secretary of Health and Human Services has agreed, for the same 
451.30 	project, to waive state plan requirements relative to statewide uniformity; and
451.31 	(2) a comprehensive plan, including estimated project costs, has been approved by the 
451.32 	Legislative Advisory Commission and filed with the commissioner of administration.
451.33 	(l) The commissioner shall, according to federal requirements and in coordination with 
451.34 	the commissioner of human services, establish procedures to be followed by local welfare 
452.1 	boards in creating citizen advisory committees, including procedures for selection of 
452.2 	committee members.
452.3 	(m) The commissioner shall allocate federal fiscal disallowances or sanctions that are 
452.4 	based on quality control error rates for the aid to families with dependent children (AFDC) 
452.5 	program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition 
452.6 	Assistance Program (SNAP) in the following manner:
452.7 	(1) one-half of the total amount of the disallowance shall be borne by the county boards 
452.8 	responsible for administering the programs. For AFDC, disallowances shall be shared by 
452.9 	each county board in the same proportion as that county's expenditures to the total of all 
452.10 	counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county 
452.11 	board, with 50 percent of the sanction being distributed to each county in the same proportion 
452.12 	as that county's administrative costs for SNAP benefits are to the total of all SNAP 
452.13 	administrative costs for all counties, and 50 percent of the sanctions being distributed to 
452.14 	each county in the same proportion as that county's value of SNAP benefits issued are to 
452.15 	the total of all benefits issued for all counties. Each county shall pay its share of the 
452.16 	disallowance to the state of Minnesota. When a county fails to pay the amount due under 
452.17 	this paragraph, the commissioner may deduct the amount from reimbursement otherwise 
452.18 	due the county, or the attorney general, upon the request of the commissioner, may institute 
452.19 	civil action to recover the amount due; and
452.20 	(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing 
452.21 	noncompliance by one or more counties with a specific program instruction, and that knowing 
452.22 	noncompliance is a matter of official county board record, the commissioner may require 
452.23 	payment or recover from the county or counties, in the manner prescribed in clause (1), an 
452.24 	amount equal to the portion of the total disallowance that resulted from the noncompliance 
452.25 	and may distribute the balance of the disallowance according to clause (1).
452.26 	(n) The commissioner shall develop and implement special projects that maximize 
452.27 	reimbursements and result in the recovery of money to the state. For the purpose of recovering 
452.28 	state money, the commissioner may enter into contracts with third parties. Any recoveries 
452.29 	that result from projects or contracts entered into under this paragraph shall be deposited 
452.30 	in the state treasury and credited to a special account until the balance in the account reaches 
452.31 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
452.32 	transferred and credited to the general fund. All money in the account is appropriated to the 
452.33 	commissioner for the purposes of this paragraph.
453.1 	(o) The commissioner has the authority to establish and enforce the following county 
453.2 	reporting requirements:
453.3 	(1) the commissioner shall establish fiscal and statistical reporting requirements necessary 
453.4 	to account for the expenditure of funds allocated to counties for programs administered by 
453.5 	the commissioner. When establishing financial and statistical reporting requirements, the 
453.6 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
453.7 	the reports can be simplified or the number of reports can be reduced;
453.8 	(2) the county board shall submit monthly or quarterly reports to the department as 
453.9 	required by the commissioner. Monthly reports are due no later than 15 working days after 
453.10 	the end of the month. Quarterly reports are due no later than 30 calendar days after the end 
453.11 	of the quarter, unless the commissioner determines that the deadline must be shortened to 
453.12 	20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss 
453.13 	of federal funding. Only reports that are complete, legible, and in the required format shall 
453.14 	be accepted by the commissioner;
453.15 	(3) if the required reports are not received by the deadlines established in clause (2), the 
453.16 	commissioner may delay payments and withhold funds from the county board until the next 
453.17 	reporting period. When the report is needed to account for the use of federal funds and the 
453.18 	late report results in a reduction in federal funding, the commissioner shall withhold from 
453.19 	the county boards with late reports an amount equal to the reduction in federal funding until 
453.20 	full federal funding is received;
453.21 	(4) a county board that submits reports that are late, illegible, incomplete, or not in the 
453.22 	required format for two out of three consecutive reporting periods is considered 
453.23 	noncompliant. When a county board is found to be noncompliant, the commissioner shall 
453.24 	notify the county board of the reason the county board is considered noncompliant and 
453.25 	request that the county board develop a corrective action plan stating how the county board 
453.26 	plans to correct the problem. The corrective action plan must be submitted to the 
453.27 	commissioner within 45 days after the date the county board received notice of 
453.28 	noncompliance;
453.29 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after 
453.30 	the date the report was originally due. If the commissioner does not receive a report by the 
453.31 	final deadline, the county board forfeits the funding associated with the report for that 
453.32 	reporting period and the county board must repay any funds associated with the report 
453.33 	received for that reporting period;
454.1 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
454.2 	under clause (3) or (5) if the county demonstrates that the commissioner failed to provide 
454.3 	appropriate forms, guidelines, and technical assistance to enable the county to comply with 
454.4 	the requirements. If the county board disagrees with an action taken by the commissioner 
454.5 	under clause (3) or (5), the county board may appeal the action according to sections 14.57 
454.6 	to 14.69; and
454.7 	(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment 
454.8 	of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover 
454.9 	costs incurred due to actions taken by the commissioner under clause (3) or (5).
454.10 	(p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit 
454.11 	exceptions when federal fiscal disallowances or sanctions are based on a statewide random 
454.12 	sample in direct proportion to each county's claim for that period.
454.13 	(q) The commissioner is responsible for ensuring the detection, prevention, investigation, 
454.14 	and resolution of fraudulent activities or behavior by applicants, recipients, and other 
454.15 	participants in the programs administered by the department. The commissioner shall 
454.16 	cooperate with the commissioner of education to enforce the requirements for program 
454.17 	integrity and fraud prevention for investigation for child care assistance under chapter 142E.
454.18 	(r) The commissioner shall require county agencies to identify overpayments, establish 
454.19 	claims, and utilize all available and cost-beneficial methodologies to collect and recover 
454.20 	these overpayments in the programs administered by the department.
454.21 	(s) The commissioner shall develop recommended standards for child foster care homes 
454.22 	that address the components of specialized therapeutic services to be provided by child 
454.23 	foster care homes with those services.
454.24 	(t) The commissioner shall authorize the method of payment to or from the department 
454.25 	as part of the programs administered by the department. This authorization includes the 
454.26 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
454.27 	the programs administered by the department.
454.28 	(u) In coordination with the commissioner of human services, the commissioner shall 
454.29 	create and provide county and Tribal agencies with blank applications, affidavits, and other 
454.30 	forms as necessary for public assistance programs.
454.31 	(v) The commissioner shall cooperate with the federal government and its public welfare 
454.32 	agencies in any reasonable manner as may be necessary to qualify for federal aid for 
454.33 	temporary assistance for needy families and in conformity with Title I of Public Law 104-193, 
455.1 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
455.2 	amendments, including making reports that contain information required by the federal 
455.3 	Social Security Advisory Board and complying with any provisions the board may find 
455.4 	necessary to assure the correctness and verification of the reports.
455.5 	(w) On or before January 15 in each even-numbered year, the commissioner shall make 
455.6 	a biennial report to the governor concerning the activities of the agency.
455.7 	(x) The commissioner shall enter into agreements with other departments of the state as 
455.8 	necessary to meet all requirements of the federal government.
455.9 	(y) The commissioner may cooperate with other state agencies in establishing reciprocal 
455.10 	agreements in instances where a child receiving Minnesota family investment program 
455.11 	(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out 
455.12 	of the state, in order that the child may continue to receive MFIP or equivalent aid from the 
455.13 	state moved from until the child has resided for one year in the state moved to.
455.14 	(z) The commissioner shall provide appropriate technical assistance to county agencies 
455.15 	to develop methods to have county financial workers remind and encourage recipients of 
455.16 	aid to families with dependent children, the Minnesota family investment program, the 
455.17 	Minnesota family investment plan, family general assistance, or SNAP benefits whose 
455.18 	assistance unit includes at least one child under the age of five to have each young child 
455.19 	immunized against childhood diseases. The commissioner must examine the feasibility of 
455.20 	utilizing the capacity of a statewide computer system to assist county agency financial 
455.21 	workers in performing this function at appropriate intervals.
455.22 	(aa) The commissioner shall have the power and authority to accept on behalf of the 
455.23 	state contributions and gifts for the use and benefit of children under the guardianship or 
455.24 	custody of the commissioner. The commissioner may also receive and accept on behalf of 
455.25 	such children money due and payable to them as old age and survivors insurance benefits, 
455.26 	veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions, 
455.27 	and benefits under this paragraph must be deposited in and disbursed from the social welfare 
455.28 	fund provided for in sections 256.88 to 256.92.
455.29 	(bb) The specific enumeration of powers and duties in this section must not be construed 
455.30 	to be a limitation upon the general powers granted to the commissioner.

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

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

456.16 	Sec. 4. Minnesota Statutes 2024, section 260.821, subdivision 2, is amended to read:
456.17 		Subd. 2.Special focus grants. The amount available for grants established under section 
456.18 	260.785, subdivision 2, for child-placing agencies, Tribes, Indian organizations, and other 
456.19 	social services organizations is one-fifth of the total annual appropriation for Indian child 
456.20 	welfare grants. The maximum award under this subdivision is $100,000 a year for programs 
456.21 	approved by the commissioner.

456.22 	Sec. 5. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
456.23 	FAMILIES; CHILD WELFARE FISCAL ANALYSIS.
 456.24 		Subdivision 1.Child welfare fiscal analysis. The commissioner of children, youth, and 
456.25 	families must contract with a third-party consultant selected according to subdivision 2 to 
456.26 	conduct a fiscal analysis to identify and make recommendations on how to best utilize all 
456.27 	available child welfare funding streams and federal resources for supporting children, 
456.28 	families, and county and Tribal child welfare service providers across Minnesota.
456.29 		Subd. 2.Fiscal analysis consultant selection. The commissioner, with input from the 
456.30 	Association of Minnesota Counties, the Minnesota Indian Affairs Council, community 
456.31 	nonprofits, community providers, and other child welfare system stakeholders, must select 
457.1 	an independent third-party consultant to conduct the fiscal analysis required under this 
457.2 	section. The consultant must have expertise in and experience with child welfare systems 
457.3 	and conducting fiscal analyses.
457.4 		Subd. 3.Child welfare fiscal analysis requirements. When conducting the child welfare 
457.5 	fiscal analysis under this section, the third-party consultant must evaluate:
457.6 	(1) financial systems in Minnesota's child welfare system and funding sources available 
457.7 	to the child welfare system; and
457.8 	(2) state, county, and Tribal access to and use of funding or reimbursements for expenses 
457.9 	related to child welfare, including but not limited to legal representation, training, and 
457.10 	prevention services, under federal Title IV-E and Title IV-B, the federal Child Abuse 
457.11 	Prevention and Treatment Act, TANF, Medicaid, the federal Social Services Block Grant 
457.12 	Program, and other federal funds.
457.13 		Subd. 4.Stakeholder engagement. The third-party consultant conducting the fiscal 
457.14 	analysis under this section must engage with community child welfare service providers; 
457.15 	state, county, and Tribal social services agencies; and other individuals or organizations 
457.16 	with expertise in child welfare services, as the consultant determines to be appropriate.
457.17 		Subd. 5.Report on fiscal analysis. By June 30, 2027, the third-party consultant 
457.18 	conducting the child welfare fiscal analysis under this section must submit a report to the 
457.19 	commissioner of children, youth, and families and the chairs and ranking minority members 
457.20 	of the legislative committees with jurisdiction over the child welfare system. The report 
457.21 	must include the findings from the fiscal analysis required in this section and 
457.22 	recommendations on:
457.23 	(1) how to maximize the state's receipt and use of child welfare funding streams and 
457.24 	federal resources; and
457.25 	(2) legislative proposals for any statutory or funding changes necessary to maximize the 
457.26 	state's receipt and use of child welfare funding streams and federal resources.
457.27 		Subd. 6.Tribal participation. Each of Minnesota's 11 federally recognized Tribal 
457.28 	Nations may participate in the fiscal analysis required under this section. Tribal Nations 
457.29 	that choose to participate have sovereignty over data they choose to share with the consultant, 
457.30 	or other individuals or entities, and may request that their data not be included in any public 
457.31 	documents.

458.1 	Sec. 6. SCAN OF AND REPORT ON OUT-OF-SCHOOL AND YOUTH 
458.2 	PROGRAMMING.
 458.3 	(a) The commissioner of children, youth, and families must conduct a scan of 
458.4 	out-of-school and youth programming for youth under 21 years of age. The scan may include 
458.5 	a review of existing reports, targeted interviews, surveys, and other methodologies, as 
458.6 	determined by the commissioner.
458.7 	(b) When conducting the scan, the commissioner must collaborate with community 
458.8 	organizations and programming providers who provide out-of-school and youth 
458.9 	programming; parents, youth, and families who participate or have participated in 
458.10 	out-of-school and youth programming; and other individuals with expertise in out-of-school 
458.11 	and youth programming in order to:
458.12 	(1) identify different avenues for gathering information; and
458.13 	(2) collaborate in the outreach and facilitation of focused community engagement.
458.14 	(c) By July 1, 2026, the commissioner must prepare and submit a final report to the 
458.15 	chairs and ranking minority members of the legislative committees with jurisdiction over 
458.16 	children, youth, and families. The commissioner may contract with consultants to help with 
458.17 	the development of the report. The report must include:
458.18 	(1) information on current federal, state, Tribal, county, and city out-of-school and youth 
458.19 	programs;
458.20 	(2) school districts that offer enrichment activities;
458.21 	(3) information on availability and amount of funding sources, the costs to provide the 
458.22 	out-of-school and youth programs, and the costs of the programs for families;
458.23 	(4) any barriers and gaps for families to participate in the out-of-school and youth 
458.24 	programming, as identified by findings from the scan under paragraph (a) and in discussions 
458.25 	with community members and program providers;
458.26 	(5) information on the populations participating in out-of-school and youth programming;
458.27 	(6) differences in programming needs, opportunities, and accessibility between different 
458.28 	demographics and different regions of Minnesota; and
458.29 	(7) recommendations on policy and funding needs, including recommending potential 
458.30 	partners for program delivery to expand access to quality out-of-school and youth 
458.31 	programming.
459.1 	(d) By July 1, 2026, the commissioner must present the final report to the chairs and 
459.2 	ranking minority members of the legislative committees with jurisdiction over children, 
459.3 	youth, and families.

459.4 	ARTICLE 18
459.5 	CHILD PROTECTION AND WELFARE POLICY

459.6 	Section 1. Minnesota Statutes 2024, section 142B.01, subdivision 15, is amended to read:
459.7 		Subd. 15.Individual who is related. "Individual who is related" means a spouse, a 
459.8 	parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, 
459.9 	a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, or a legal guardian.
459.10 	For purposes of family child foster care, individual who is related also includes an individual 
459.11 	who, prior to the child's placement in the individual's home for foster care or adoption, is 
459.12 	an important individual of the child or of the child's parent or custodian. Important individual 
459.13 	means an individual with whom the child has previously resided or had significant contact 
459.14 	or who has a significant relationship to the child or the child's parent or custodian.

459.15 	Sec. 2. Minnesota Statutes 2024, section 142B.05, subdivision 3, is amended to read:
459.16 		Subd. 3.Foster care by an individual who is related to a child; license required. (a) 
459.17 	Notwithstanding subdivision 2, paragraph (a), clause (1), in order to provide foster care for 
459.18 	a child, an individual who is related to the child, other than a parent, or legal guardian, must 
459.19 	be licensed by the commissioner except as provided by section 142B.06.
459.20 	(b) If an individual who is related to a child is seeking licensure to provide foster care 
459.21 	for the child and the individual has a domestic partner but is not married to the domestic 
459.22 	partner, only the individual related to the child must be licensed to provide foster care. The 
459.23 	commissioner must conduct background studies on household members according to section 
459.24 	245C.03, subdivision 1.

459.25 	Sec. 3. Minnesota Statutes 2024, section 142B.30, is amended by adding a subdivision to 
459.26 	read:
459.27 		Subd. 13.Individual who is related; agency choice. An individual who is related to 
459.28 	the child may seek foster care licensure through the county agency or a private agency, 
459.29 	licensed and authorized by the commissioner. The child-placing agency, depending on 
459.30 	funding available, must provide information to all potential relative foster care providers 
459.31 	about this choice, including information about available private agencies for foster care 
459.32 	licensure.

460.1 	Sec. 4. Minnesota Statutes 2024, section 142B.47, is amended to read:
460.2 	142B.47 TRAINING ON RISK OF SUDDEN UNEXPECTED INFANT DEATH 
460.3 	AND ABUSIVE HEAD TRAUMA FOR CHILD FOSTER CARE PROVIDERS.
460.4 	(a) Licensed child foster care providers, except individuals related to the child who only 
460.5 	care for a relative child, that care for infants or children through five years of age must 
460.6 	document that before caregivers assist in the care of infants or children through five years 
460.7 	of age, they the caregivers are instructed on the standards in section 142B.46 and receive 
460.8 	training on reducing the risk of sudden unexpected infant death and abusive head trauma 
460.9 	from shaking infants and young children. Licensed child foster care providers who are 
460.10 	related to the child, and who only care for a relative child, must document completion of 
460.11 	the training required under this section within 30 days after licensure. This section does not 
460.12 	apply to emergency relative placement under section 142B.06. The training on reducing 
460.13 	the risk of sudden unexpected infant death and abusive head trauma may be provided as:
460.14 	(1) orientation training to child foster care providers who care for infants or children 
460.15 	through five years of age under Minnesota Rules, part 2960.3070, subpart 1; or
460.16 	(2) in-service training to child foster care providers who care for infants or children 
460.17 	through five years of age under Minnesota Rules, part 2960.3070, subpart 2.
460.18 	(b) Training required under this section must be at least one hour in length and must be 
460.19 	completed at least once every five years. At a minimum, the training must address the risk 
460.20 	factors related to sudden unexpected infant death and abusive head trauma, means of reducing 
460.21 	the risk of sudden unexpected infant death and abusive head trauma, and license holder 
460.22 	communication with parents regarding reducing the risk of sudden unexpected infant death 
460.23 	and abusive head trauma.
460.24 	(c) Training for child foster care providers must be approved by the county or private 
460.25 	licensing agency that is responsible for monitoring the child foster care provider under 
460.26 	section 142B.30. The approved training fulfills, in part, training required under Minnesota 
460.27 	Rules, part 2960.3070.

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

460.29 	Sec. 5. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
460.30 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
460.31 	licensed by the Department of Human Services under chapter 245A or the Department of 
460.32 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
461.1 	serve a child or children under eight years of age must document training that fulfills the 
461.2 	requirements in this subdivision.
461.3 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
461.4 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
461.5 	training on the proper use and installation of child restraint systems in motor vehicles. 
461.6 	Training completed under this section may be used to meet initial or ongoing training under 
461.7 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
461.8 	(c) Training required under this section must be completed at orientation or initial training 
461.9 	and repeated at least once every five years. At a minimum, the training must address the 
461.10 	proper use of child restraint systems based on the child's size, weight, and age, and the 
461.11 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
461.12 	holder to transport the child or children.
461.13 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
461.14 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
461.15 	holders may obtain a list of certified and approved trainers through the Department of Public 
461.16 	Safety website or by contacting the agency.
461.17 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
461.18 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
461.19 	for a relative who completes a child seat safety check up. The child seat safety check up 
461.20 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
461.21 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
461.22 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
461.23 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
461.24 	a license and may transport a relative foster child younger than eight years of age. A child 
461.25 	seat safety check up must be completed each time a child requires a different size car seat 
461.26 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
461.27 	complete training that meets the other requirements of this subdivision prior to placement 
461.28 	of another foster child younger than eight years of age in the home or prior to the renewal 
461.29 	of the child foster care license.
461.30 	(f) Notwithstanding paragraph (b), a child foster care license holder who is an individual 
461.31 	related to the child, and who only serves a relative child, must document completion of the 
461.32 	training required under this section within 30 days after licensure.

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

462.1 	Sec. 6. Minnesota Statutes 2024, section 142B.80, is amended to read:
462.2 	142B.80 CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL 
462.3 	HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING.
462.4 	Prior to a nonemergency placement of a child in a foster care home, the child foster care 
462.5 	license holder and caregivers in foster family and treatment foster care settings must complete 
462.6 	two hours of training that addresses the causes, symptoms, and key warning signs of mental 
462.7 	health disorders; cultural considerations; and effective approaches for dealing with a child's 
462.8 	behaviors. At least one hour of the annual training requirement for the foster family license 
462.9 	holder and caregivers must be on children's mental health issues and treatment. Except for 
462.10 	providers and services under chapter 245D and child foster care license holders who are 
462.11 	individuals related to the child who only serve a relative child who does not have fetal 
462.12 	alcohol spectrum disorder, the annual training must also include at least one hour of training 
462.13 	on fetal alcohol spectrum disorders, which must be counted toward the 12 hours of required 
462.14 	in-service training per year. Short-term substitute caregivers are exempt from these 
462.15 	requirements. Training curriculum shall be approved by the commissioner of children, 
462.16 	youth, and families.

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

462.18 	Sec. 7. [142B.81] CHILD FOSTER CARE TRAINING; RELATIVE CAREGIVERS.
462.19 	Notwithstanding the required hours under Minnesota Rules, part 2960.3070, subpart 2, 
462.20 	a child foster care license holder who is an individual related to the child must complete a 
462.21 	minimum of six hours of in-service training per year in one or more of the areas in Minnesota 
462.22 	Rules, part 2960.3070, subpart 2, or in other areas as agreed upon by the licensing agency 
462.23 	and the foster parent. The relative child foster care license holder must consult with the 
462.24 	licensing agency and complete training in areas that are most applicable to caring for the 
462.25 	relative children in foster care in the home. This section does not apply to a child foster care 
462.26 	license holder who is licensed to care for both a relative child and a nonrelative child.

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

462.28 	Sec. 8. Minnesota Statutes 2024, section 245C.02, is amended by adding a subdivision to 
462.29 	read:
462.30 		Subd. 16b.Relative. "Relative" has the meaning given in section 260C.007, subdivision 
462.31 	27. For purposes of background studies affiliated with child foster care licensure, a person 
463.1 	is a relative if the person was known to the child or the child's parent before the child is 
463.2 	placed in foster care.

463.3 	Sec. 9. Minnesota Statutes 2024, section 245C.15, subdivision 4a, is amended to read:
463.4 		Subd. 4a.Licensed family foster setting disqualifications. (a) Notwithstanding 
463.5 	subdivisions 1 to 4, for a background study affiliated with a licensed family foster setting, 
463.6 	regardless of how much time has passed, an individual is disqualified under section 245C.14 
463.7 	if the individual committed an act that resulted in a felony-level conviction for sections: 
463.8 	609.185 (murder in the first degree); 609.19 (murder in the second degree); 609.195 (murder 
463.9 	in the third degree); 609.20 (manslaughter in the first degree); 609.205 (manslaughter in 
463.10 	the second degree); 609.2112 (criminal vehicular homicide); 609.221 (assault in the first 
463.11 	degree);609.223, subdivision 2 (assault in the third degree, past pattern of child abuse); 
463.12 	609.223, subdivision 3 (assault in the third degree, victim under four); a felony offense 
463.13 	under sections 609.2242 and 609.2243 (domestic assault, spousal abuse, child abuse or 
463.14 	neglect, or a crime against children); 609.2247 (domestic assault by strangulation); 609.2325 
463.15 	(criminal abuse of a vulnerable adult resulting in the death of a vulnerable adult); 609.245 
463.16 	(aggravated robbery); 609.247, subdivision 2 or 3 (carjacking in the first or second degree); 
463.17 	609.25 (kidnapping); 609.255 (false imprisonment); 609.2661 (murder of an unborn child 
463.18 	in the first degree); 609.2662 (murder of an unborn child in the second degree); 609.2663 
463.19 	(murder of an unborn child in the third degree); 609.2664 (manslaughter of an unborn child 
463.20 	in the first degree); 609.2665 (manslaughter of an unborn child in the second degree); 
463.21 	609.267 (assault of an unborn child in the first degree); 609.2671 (assault of an unborn child 
463.22 	in the second degree); 609.268 (injury or death of an unborn child in the commission of a 
463.23 	crime); 609.322, subdivision 1 (solicitation, inducement, and promotion of prostitution; sex 
463.24 	trafficking in the first degree); 609.324, subdivision 1 (other prohibited acts; engaging in, 
463.25 	hiring, or agreeing to hire minor to engage in prostitution); 609.342 (criminal sexual conduct 
463.26 	in the first degree); 609.343 (criminal sexual conduct in the second degree); 609.344 (criminal 
463.27 	sexual conduct in the third degree); 609.345 (criminal sexual conduct in the fourth degree); 
463.28 	609.3451 (criminal sexual conduct in the fifth degree); 609.3453 (criminal sexual predatory 
463.29 	conduct); 609.3458 (sexual extortion); 609.352 (solicitation of children to engage in sexual 
463.30 	conduct); 609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of 
463.31 	a child); 609.561 (arson in the first degree); 609.582, subdivision 1 (burglary in the first 
463.32 	degree); 609.746 (interference with privacy); 617.23 (indecent exposure); 617.246 (use of 
463.33 	minors in sexual performance prohibited); or 617.247 (possession of pictorial representations 
463.34 	of minors).
464.1 	(b) Notwithstanding subdivisions 1 to 4, for the purposes of a background study affiliated 
464.2 	with a licensed family foster setting, an individual is disqualified under section 245C.14, 
464.3 	regardless of how much time has passed, if the individual:
464.4 	(1) committed an action under paragraph (e) that resulted in death or involved sexual 
464.5 	abuse, as defined in section 260E.03, subdivision 20;
464.6 	(2) committed an act that resulted in a gross misdemeanor-level conviction for section 
464.7 	609.3451 (criminal sexual conduct in the fifth degree);
464.8 	(3) committed an act against or involving a minor that resulted in a felony-level conviction 
464.9 	for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the 
464.10 	third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree); 
464.11 	or
464.12 	(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level 
464.13 	conviction for section 617.293 (dissemination and display of harmful materials to minors).
464.14 	(c) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
464.15 	family foster setting,:
464.16 	(1) an individual is disqualified under section 245C.14 if fewer than 20 years have passed 
464.17 	since the termination of the individual's parental rights under section 260C.301, subdivision 
464.18 	1, paragraph (b), or if the individual consented to a termination of parental rights under 
464.19 	section 260C.301, subdivision 1, paragraph (a), to settle a petition to involuntarily terminate 
464.20 	parental rights. An individual is disqualified under section 245C.14 if fewer than 20 years 
464.21 	have passed since the termination of the individual's parental rights in any other state or 
464.22 	country, where the conditions for the individual's termination of parental rights are 
464.23 	substantially similar to the conditions in section 260C.301, subdivision 1, paragraph (b); or
464.24 	(2) when an individual is a relative of the child in foster care, an individual is disqualified 
464.25 	under section 245C.14 if fewer than seven years have passed since the termination of the 
464.26 	individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or if the 
464.27 	individual consented to a termination of parental rights under section 260C.301, subdivision 
464.28 	1, paragraph (a), to settle a petition to involuntarily terminate parental rights. An individual 
464.29 	is disqualified under section 245C.14 if fewer than seven years have passed since the 
464.30 	termination of the individual's parental rights in any other state or country, where the 
464.31 	conditions for the individual's termination of parental rights are substantially similar to the 
464.32 	conditions in section 260C.301, subdivision 1, paragraph (b).
465.1 	(d) Notwithstanding subdivisions 1 to 4, for a background study affiliated with a licensed 
465.2 	family foster setting, an individual is disqualified under section 245C.14 if fewer than five 
465.3 	years have passed since a felony-level violation for sections: 152.021 (controlled substance 
465.4 	crime in the first degree); 152.022 (controlled substance crime in the second degree); 152.023 
465.5 	(controlled substance crime in the third degree); 152.024 (controlled substance crime in the 
465.6 	fourth degree); 152.025 (controlled substance crime in the fifth degree); 152.0261 (importing 
465.7 	controlled substances across state borders); 152.0262, subdivision 1, paragraph (b) 
465.8 	(possession of substance with intent to manufacture methamphetamine); 152.027, subdivision 
465.9 	6, paragraph (c) (sale or possession of synthetic cannabinoids); 152.096 (conspiracies 
465.10 	prohibited); 152.097 (simulated controlled substances); 152.136 (anhydrous ammonia; 
465.11 	prohibited conduct; criminal penalties; civil liabilities); 152.137 (methamphetamine-related 
465.12 	crimes involving children or vulnerable adults); 169A.24 (felony first-degree driving while 
465.13 	impaired); 243.166 (violation of predatory offender registration requirements); 609.2113 
465.14 	(criminal vehicular operation; bodily harm); 609.2114 (criminal vehicular operation; unborn 
465.15 	child); 609.221 (assault in the first degree); 609.228 (great bodily harm caused by distribution 
465.16 	of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in the death of a 
465.17 	vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure or facilitate 
465.18 	a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the third degree); 
465.19 	609.322, subdivision 1a (solicitation, inducement, and promotion of prostitution; sex 
465.20 	trafficking in the second degree); 609.498, subdivision 1 (tampering with a witness in the 
465.21 	first degree); 609.498, subdivision 1b (aggravated first-degree witness tampering); 609.562 
465.22 	(arson in the second degree); 609.563 (arson in the third degree); 609.582, subdivision 2 
465.23 	(burglary in the second degree); 609.66 (felony dangerous weapons); 609.687 (adulteration); 
465.24 	609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5 (felony-level harassment or 
465.25 	stalking); 609.855, subdivision 5 (shooting at or in a public transit vehicle or facility); or 
465.26 	624.713 (certain people not to possess firearms).
465.27 	(e) Notwithstanding subdivisions 1 to 4, except as provided in paragraph (a), for a 
465.28 	background study affiliated with a licensed family child foster care license, an individual 
465.29 	is disqualified under section 245C.14 if fewer than five years have passed since:
465.30 	(1) a felony-level violation for an act not against or involving a minor that constitutes: 
465.31 	section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third 
465.32 	degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the 
465.33 	fifth degree);
465.34 	(2) a violation of an order for protection under section 518B.01, subdivision 14;
466.1 	(3) a determination or disposition of the individual's failure to make required reports 
466.2 	under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition 
466.3 	under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment 
466.4 	was recurring or serious;
466.5 	(4) a determination or disposition of the individual's substantiated serious or recurring 
466.6 	maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or 
466.7 	serious or recurring maltreatment in any other state, the elements of which are substantially 
466.8 	similar to the elements of maltreatment under chapter 260E or section 626.557 and meet 
466.9 	the definition of serious maltreatment or recurring maltreatment;
466.10 	(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in 
466.11 	the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect); 
466.12 	609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child); 
466.13 	609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
466.14 	(6) committing an act against or involving a minor that resulted in a misdemeanor-level 
466.15 	violation of section 609.224, subdivision 1 (assault in the fifth degree).
466.16 	(f) For purposes of this subdivision, the disqualification begins from:
466.17 	(1) the date of the alleged violation, if the individual was not convicted;
466.18 	(2) the date of conviction, if the individual was convicted of the violation but not 
466.19 	committed to the custody of the commissioner of corrections; or
466.20 	(3) the date of release from prison, if the individual was convicted of the violation and 
466.21 	committed to the custody of the commissioner of corrections.
466.22 	Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation 
466.23 	of the individual's supervised release, the disqualification begins from the date of release 
466.24 	from the subsequent incarceration.
466.25 	(g) Notwithstanding paragraph (f), for purposes of paragraph (d), the disqualification 
466.26 	begins from the date of the alleged violation when the individual is a relative of the child 
466.27 	in foster care.
466.28 	(h) An individual's aiding and abetting, attempt, or conspiracy to commit any of the 
466.29 	offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota 
466.30 	Statutes, permanently disqualifies the individual under section 245C.14. An individual is 
466.31 	disqualified under section 245C.14 if fewer than five years have passed since the individual's 
466.32 	aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs 
466.33 	(d) and (e).
467.1 	(h) (i) An individual's offense in any other state or country, where the elements of the 
467.2 	offense are substantially similar to any of the offenses listed in paragraphs (a) and (b), 
467.3 	permanently disqualifies the individual under section 245C.14. An individual is disqualified 
467.4 	under section 245C.14 if fewer than five years have passed since an offense in any other 
467.5 	state or country, the elements of which are substantially similar to the elements of any 
467.6 	offense listed in paragraphs (d) and (e).

467.7 	Sec. 10. Minnesota Statutes 2024, section 260.65, is amended to read:
467.8 	260.65 NONCUSTODIAL PARENTS; RELATIVE PLACEMENT.
467.9 	(a) Prior to the removal of an African American or a disproportionately represented child 
467.10 	from the child's home, the responsible social services agency must make active efforts to 
467.11 	identify and locate the child's noncustodial or nonadjudicated parent and the child's relatives 
467.12 	to notify the child's parent and relatives that the child is or will be placed in foster care, and 
467.13 	provide the child's parent and relatives with a list of legal resources. The notice to the child's 
467.14 	noncustodial or nonadjudicated parent and relatives must also include the information 
467.15 	required under section 260C.221, subdivision 2, paragraph (b). The responsible social 
467.16 	services agency must maintain detailed records of the agency's efforts to notify parents and 
467.17 	relatives under this section.
467.18 	(b) Notwithstanding the provisions of section 260C.219, the responsible social services 
467.19 	agency must assess an African American or a disproportionately represented child's 
467.20 	noncustodial or nonadjudicated parent's ability to care for the child before placing the child 
467.21 	in foster care. If a child's noncustodial or nonadjudicated parent is willing and able to provide 
467.22 	daily care for the African American or disproportionately represented child temporarily or 
467.23 	permanently, the court shall order that the child be placed in into the home of the noncustodial 
467.24 	or nonadjudicated parent pursuant to section 260C.178 or 260C.201, subdivision 1. The 
467.25 	responsible social services agency must make active efforts to assist a noncustodial or 
467.26 	nonadjudicated parent with remedying any issues that may prevent the child from being 
467.27 	placed with the ordered into the home of a noncustodial or nonadjudicated parent.
467.28 	(c) The relative search, notice, engagement, and placement consideration requirements 
467.29 	under section 260C.221 apply under this act.

467.30 	Sec. 11. Minnesota Statutes 2024, section 260.66, subdivision 1, is amended to read:
467.31 		Subdivision 1.Emergency removal or placement permitted. Nothing in this section 
467.32 	shall be construed to prevent the emergency removal of an African American or a 
467.33 	disproportionately represented child's parent or custodian child or the emergency placement 
468.1 	of the child in a foster setting in order to prevent imminent physical damage or harm to the 
468.2 	child.

468.3 	Sec. 12. Minnesota Statutes 2024, section 260.691, subdivision 1, is amended to read:
468.4 		Subdivision 1.Establishment and duties. (a) The African American Child and Family 
468.5 	Well-Being Advisory Council is established for the Department of Children, Youth, and 
468.6 	Families.
468.7 	(b) The council shall consist of 31 members appointed by the commissioner and must 
468.8 	include representatives with lived personal or professional experience within African 
468.9 	American communities. Members may include but are not limited to youth who have exited 
468.10 	the child welfare system; parents; legal custodians; relative and kinship caregivers or foster 
468.11 	care providers; community service providers, advocates, and members; county and private 
468.12 	social services agency case managers; representatives from faith-based institutions; academic 
468.13 	professionals; a representative from the Council for Minnesotans of African Heritage; the 
468.14 	Ombudsperson for African American Families; and other individuals with experience and 
468.15 	knowledge of African American communities. Council members must be selected through 
468.16 	an open appointments process under section 15.0597. The terms, compensation, and removal 
468.17 	of council members are governed by section 15.059.
468.18 	(c) The African American Child Well-Being Advisory council must:
468.19 	(1) review annual reports related to African American children involved in the child 
468.20 	welfare system. These reports may include but are not limited to the maltreatment, 
468.21 	out-of-home placement, and permanency of African American children;
468.22 	(2) assist with and make recommendations to the commissioner for developing strategies 
468.23 	to reduce maltreatment determinations, prevent unnecessary out-of-home placement, promote 
468.24 	culturally appropriate foster care and shelter or facility placement decisions and settings for 
468.25 	African American children in need of out-of-home placement, ensure timely achievement 
468.26 	of permanency, and improve child welfare outcomes for African American children and 
468.27 	their families;
468.28 	(3) review summary reports on targeted case reviews prepared by the commissioner to 
468.29 	ensure that responsible social services agencies meet the needs of African American children 
468.30 	and their families. Based on data collected from those reviews, the council shall assist the 
468.31 	commissioner with developing strategies needed to improve any identified child welfare 
468.32 	outcomes, including but not limited to maltreatment, out-of-home placement, and permanency 
468.33 	for African American children;
469.1 	(4) assist the Cultural and Ethnic Communities Leadership Council with making make
469.2 	recommendations to the commissioner and the legislature for public policy and statutory 
469.3 	changes that specifically consider the needs of African American children and their families 
469.4 	involved in the child welfare system;
469.5 	(5) advise the commissioner on stakeholder engagement strategies and actions that the 
469.6 	commissioner and responsible social services agencies may take to improve child welfare 
469.7 	outcomes for African American children and their families;
469.8 	(6) assist the commissioner with developing strategies for public messaging and 
469.9 	communication related to racial disproportionality and disparities in child welfare outcomes 
469.10 	for African American children and their families;
469.11 	(7) assist the commissioner with identifying and developing internal and external 
469.12 	partnerships to support adequate access to services and resources for African American 
469.13 	children and their families, including but not limited to housing assistance, employment 
469.14 	assistance, food and nutrition support, health care, child care assistance, and educational 
469.15 	support and training; and
469.16 	(8) assist the commissioner with developing strategies to promote the development of 
469.17 	a culturally diverse and representative child welfare workforce in Minnesota that includes 
469.18 	professionals who are reflective of the community served and who have been directly 
469.19 	impacted by lived experiences within the child welfare system. The council must also assist 
469.20 	the commissioner with exploring strategies and partnerships to address education and training 
469.21 	needs, hiring, recruitment, retention, and professional advancement practices.

469.22 	Sec. 13. Minnesota Statutes 2024, section 260.692, is amended to read:
469.23 	260.692 AFRICAN AMERICAN CHILD AND FAMILY WELL-BEING UNIT.
469.24 		Subdivision 1.Duties. The African American Child and Family Well-Being Unit, 
469.25 	currently established by the commissioner, must:
469.26 	(1) assist with the development of African American cultural competency training and 
469.27 	review child welfare curriculum in the Minnesota Child Welfare Training Academy to 
469.28 	ensure that responsible social services agency staff and other child welfare professionals 
469.29 	are appropriately prepared to engage with African American children and their families and 
469.30 	to support family preservation and reunification;
469.31 	(2) provide technical assistance, including on-site technical assistance, and case 
469.32 	consultation to responsible social services agencies to assist agencies with implementing 
470.1 	and complying with the Minnesota African American Family Preservation and Child Welfare 
470.2 	Disproportionality Act;
470.3 	(3) monitor individual county and statewide disaggregated and nondisaggregated data 
470.4 	to identify trends and patterns in child welfare outcomes, including but not limited to 
470.5 	reporting, maltreatment, out-of-home placement, and permanency of African American 
470.6 	children and develop strategies to address disproportionality and disparities in the child 
470.7 	welfare system;
470.8 	(4) develop and implement a system for conducting case reviews when the commissioner 
470.9 	receives reports of noncompliance with the Minnesota African American Family Preservation 
470.10 	and Child Welfare Disproportionality Act or when requested by the parent or custodian of 
470.11 	an African American child. Case reviews may include but are not limited to a review of 
470.12 	placement prevention efforts, safety planning, case planning and service provision by the 
470.13 	responsible social services agency, relative placement consideration, and permanency 
470.14 	planning;
470.15 	(5) establish and administer a request for proposals process for African American and 
470.16 	disproportionately represented family preservation grants under section 260.693, monitor 
470.17 	grant activities, and provide technical assistance to grantees;
470.18 	(6) in coordination with the African American Child and Family Well-Being Advisory 
470.19 	Council, coordinate services and create internal and external partnerships to support adequate 
470.20 	access to services and resources for African American children and their families, including 
470.21 	but not limited to housing assistance, employment assistance, food and nutrition support, 
470.22 	health care, child care assistance, and educational support and training; and
470.23 	(7) develop public messaging and communication to inform the public about racial 
470.24 	disparities in child welfare outcomes, current efforts and strategies to reduce racial disparities, 
470.25 	and resources available to African American children and their families involved in the 
470.26 	child welfare system.
470.27 		Subd. 2.Case reviews. (a) The African American Child and Family Well-Being Unit 
470.28 	must conduct systemic case reviews to monitor targeted child welfare outcomes, including 
470.29 	but not limited to maltreatment, out-of-home placement, and permanency of African 
470.30 	American children.
470.31 	(b) The reviews under this subdivision must be conducted using a random sampling of 
470.32 	representative child welfare cases stratified for certain case related factors, including but 
470.33 	not limited to case type, maltreatment type, if the case involves out-of-home placement, 
470.34 	and other demographic variables. In conducting the reviews, unit staff may use court records 
471.1 	and documents, information from the social services information system, and other available 
471.2 	case file information to complete the case reviews.
471.3 	(c) The frequency of the reviews and the number of cases, child welfare outcomes, and 
471.4 	selected counties reviewed shall be determined by the unit in consultation with the African 
471.5 	American Child and Family Well-Being Advisory Council, with consideration given to the 
471.6 	availability of unit resources needed to conduct the reviews.
471.7 	(d) The unit must monitor all case reviews and use the collective case review information 
471.8 	and data to generate summary case review reports, ensure compliance with the Minnesota 
471.9 	African American Family Preservation and Child Welfare Disproportionality Act, and 
471.10 	identify trends or patterns in child welfare outcomes for African American children.
471.11 	(e) The unit must review information from members of the public received through the 
471.12 	compliance and feedback portal, including policy and practice concerns related to individual 
471.13 	child welfare cases. After assessing a case concern, the unit may determine if further 
471.14 	necessary action should be taken, which may include coordinating case remediation with 
471.15 	other relevant child welfare agencies in accordance with data privacy laws, including the 
471.16 	African American Child and Family Well-Being Advisory Council, and offering case 
471.17 	consultation and technical assistance to the responsible local social services agency as 
471.18 	needed or requested by the agency.
471.19 		Subd. 3.Reports. (a) The African American Child and Family Well-Being Unit must 
471.20 	provide regular updates on unit activities, including summary reports of case reviews, to 
471.21 	the African American Child and Family Well-Being Advisory Council, and must publish 
471.22 	an annual census of African American children in out-of-home placements statewide. The 
471.23 	annual census must include data on the types of placements, age and sex of the children, 
471.24 	how long the children have been in out-of-home placements, and other relevant demographic 
471.25 	information.
471.26 	(b) The African American Child and Family Well-Being Unit shall gather summary data 
471.27 	about the practice and policy inquiries and individual case concerns received through the 
471.28 	compliance and feedback portal under subdivision 2, paragraph (e). The unit shall provide 
471.29 	regular reports of the nonidentifying compliance and feedback portal summary data to the 
471.30 	African American Child and Family Well-Being Advisory Council to identify child welfare 
471.31 	trends and patterns to assist with developing policy and practice recommendations to support 
471.32 	eliminating disparity and disproportionality for African American children.

472.1 	Sec. 14. Minnesota Statutes 2024, section 260C.001, subdivision 2, is amended to read:
472.2 		Subd. 2.Juvenile protection proceedings. (a) The paramount consideration in all 
472.3 	juvenile protection proceedings is the health, safety, and best interests of the child. In 
472.4 	proceedings involving an American Indian child, as defined in section 260.755, subdivision 
472.5 	8, the best interests of the child must be determined consistent with sections 260.751 to 
472.6 	260.835 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 
472.7 	1923.
472.8 	(b) The purpose of the laws relating to juvenile protection proceedings is:
472.9 	(1) to secure for each child under the jurisdiction of the court, the care and guidance, 
472.10 	preferably in the child's own home, as will best serve the spiritual, emotional, mental, and 
472.11 	physical welfare of the child;
472.12 	(2) to provide judicial procedures that protect the welfare of the child;
472.13 	(3) to preserve and strengthen the child's family ties whenever possible and in the child's 
472.14 	best interests, removing the child from the custody of parents only when the child's welfare 
472.15 	or safety cannot be adequately safeguarded without removal;
472.16 	(4) to ensure that when removal from the child's own family is necessary and in the 
472.17 	child's best interests, the responsible social services agency has legal responsibility for the 
472.18 	child removal either:
472.19 	(i) pursuant to a voluntary placement agreement between the child's parent or guardian 
472.20 	or the child, when the child is over age 18, and the responsible social services agency; or
472.21 	(ii) by court order pursuant to section 260C.151, subdivision 6; 260C.178; 260C.201; 
472.22 	260C.325; or 260C.515;
472.23 	(5) to ensure that, when placement is pursuant to court order, the court order removing 
472.24 	the child or continuing the child in foster care contains an individualized determination that 
472.25 	placement is in the best interests of the child that coincides with the actual removal of the 
472.26 	child;
472.27 	(6) to ensure that when the child is removed, the child's care and discipline is, as nearly 
472.28 	as possible, equivalent to that which should have been given by the parents and is either in:
472.29 	(i) the home of a noncustodial parent pursuant to section 260C.178 or 260C.201, 
472.30 	subdivision 1, paragraph (a), clause (1);
472.31 	(ii) the home of a relative pursuant to emergency placement by the responsible social 
472.32 	services agency under chapter 245A; or
473.1 	(iii) foster care licensed under chapter 245A; and
473.2 	(7) to ensure appropriate permanency planning for children in foster care including:
473.3 	(i) unless reunification is not required under section 260.012, developing a permanency 
473.4 	plan for the child that includes a primary plan for reunification with the child's parent or 
473.5 	guardian and a secondary plan for an alternative, legally permanent home for the child in 
473.6 	the event reunification cannot be achieved in a timely manner;
473.7 	(ii) identifying, locating, and assessing both parents of the child as soon as possible and 
473.8 	offering reunification services to both parents of the child as required under sections 260.012
473.9 	and 260C.219;
473.10 	(iii) inquiring about the child's heritage, including the child's Tribal lineage pursuant to 
473.11 	section 260.761, and the child's race, culture, and ethnicity pursuant to section 260.63, 
473.12 	subdivision 10;
473.13 	(iii) (iv) identifying, locating, and notifying relatives of both parents of the child according 
473.14 	to section 260C.221;
473.15 	(iv) (v) making a placement with a family that will commit to being the legally permanent 
473.16 	home for the child in the event reunification cannot occur at the earliest possible time while 
473.17 	at the same time actively supporting the reunification plan; and
473.18 	(v) (vi) returning the child home with supports and services, as soon as return is safe for 
473.19 	the child, or when safe return cannot be timely achieved, moving to finalize another legally 
473.20 	permanent home for the child.

473.21 	Sec. 15. Minnesota Statutes 2024, section 260C.007, subdivision 19, is amended to read:
473.22 		Subd. 19.Habitual truant. (a) "Habitual truant" means a child under the age of 17 years 
473.23 	who is absent from attendance at school without lawful excuse for seven school days per 
473.24 	school year if the child is in elementary school or for one or more class periods on seven 
473.25 	school days per school year if the child is in middle school, junior high school, or high 
473.26 	school or a child who is 17 years of age who is absent from attendance at school without 
473.27 	lawful excuse for one or more class periods on seven school days per school year and who 
473.28 	has not lawfully withdrawn from school under section 120A.22, subdivision 8.
473.29 	(b) For the purposes of educational neglect under section 260C.163, subdivision 11, 
473.30 	habitual truant includes a child under 12 years of age who has been absent from school for 
473.31 	seven school days without lawful excuse where the presumption of educational neglect is 
473.32 	rebutted based on a showing by clear and convincing evidence that the child's absence is 
474.1 	not due to the failure of the child's parent, guardian, or custodian to comply with compulsory 
474.2 	instruction laws.

474.3 	Sec. 16. Minnesota Statutes 2024, section 260C.150, subdivision 3, is amended to read:
474.4 		Subd. 3.Identifying parents of child; diligent efforts; data. (a) The responsible social 
474.5 	services agency shall make diligent efforts to inquire about the child's heritage, including 
474.6 	the child's Tribal lineage pursuant to section 260.761 and the child's race, culture, and 
474.7 	ethnicity pursuant to section 260.63, subdivision 10, and to identify and locate both parents 
474.8 	of any child who is the subject of proceedings under this chapter. Diligent efforts include:
474.9 	(1) asking the custodial or known parent to identify any nonresident parent of the child 
474.10 	and provide information that can be used to verify the nonresident parent's identity including 
474.11 	the dates and locations of marriages and divorces; dates and locations of any legal 
474.12 	proceedings regarding paternity; date and place of the child's birth; nonresident parent's full 
474.13 	legal name; nonresident parent's date of birth, or if the nonresident parent's date of birth is 
474.14 	unknown, an approximate age; the nonresident parent's Social Security number; the 
474.15 	nonresident parent's whereabouts including last known whereabouts; and the whereabouts 
474.16 	of relatives of the nonresident parent. For purposes of this subdivision, "nonresident parent" 
474.17 	means a parent who does not reside in the same household as the child or did not reside in 
474.18 	the same household as the child at the time the child was removed when the child is in foster 
474.19 	care;
474.20 	(2) obtaining information that will identify and locate the nonresident parent from the 
474.21 	county and state of Minnesota child support enforcement information system;
474.22 	(3) requesting a search of the Minnesota Fathers' Adoption Registry 30 days after the 
474.23 	child's birth; and
474.24 	(4) using any other reasonable means to identify and locate the nonresident parent.
474.25 	(b) The agency may disclose data which is otherwise private under section 13.46 or 
474.26 	chapter 260E in order to carry out its duties under this subdivision.
474.27 	(c) Upon the filing of a petition alleging the child to be in need of protection or services, 
474.28 	the responsible social services agency may contact a putative father who registered with 
474.29 	the Minnesota Fathers' Adoption Registry more than 30 days after the child's birth. The 
474.30 	social service agency may consider a putative father for the day-to-day care of the child 
474.31 	under section 260C.219 if the putative father cooperates with genetic testing and there is a 
474.32 	positive test result under section 257.62, subdivision 5. Nothing in this paragraph:
475.1 	(1) relieves a putative father who registered with the Minnesota Fathers' Adoption 
475.2 	Registry more than 30 days after the child's birth of the duty to cooperate with paternity 
475.3 	establishment proceedings under section 260C.219;
475.4 	(2) gives a putative father who registered with the Minnesota Fathers' Adoption Registry 
475.5 	more than 30 days after the child's birth the right to notice under section 260C.151 unless 
475.6 	the putative father is entitled to notice under sections 259.24 and 259.49, subdivision 1, 
475.7 	paragraph (a) or (b), clauses (1) to (7); or
475.8 	(3) establishes a right to assert an interest in the child in a termination of parental rights 
475.9 	proceeding contrary to section 259.52, subdivision 6, unless the putative father is entitled 
475.10 	to notice under sections 259.24 and 259.49, subdivision 1, paragraph (a) or (b), clauses (1) 
475.11 	to (7).

475.12 	Sec. 17. Minnesota Statutes 2024, section 260C.202, subdivision 2, is amended to read:
475.13 		Subd. 2.Court review for a child placed in foster care. (a) If the court orders a child 
475.14 	placed in foster care, the court shall review the out-of-home placement plan and the child's 
475.15 	placement at least every 90 days as required in juvenile court rules to determine whether 
475.16 	continued out-of-home placement is necessary and appropriate or whether the child should 
475.17 	be returned home.
475.18 	(b) This review is not required if the court has returned the child home, ordered the child 
475.19 	permanently placed away from the parent under sections 260C.503 to 260C.521, or 
475.20 	terminated rights under section 260C.301. Court review for a child permanently placed 
475.21 	away from a parent, including where the child is under guardianship of the commissioner, 
475.22 	is governed by section 260C.607.
475.23 	(c) When a child is placed in a qualified residential treatment program setting as defined 
475.24 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
475.25 	evidence to the court as specified in section 260C.712.
475.26 	(d) No later than three months after the child's placement in foster care, the court shall 
475.27 	review agency efforts to search for and notify relatives pursuant to section 260C.221, and 
475.28 	order that the agency's efforts begin immediately, or continue, if the agency has failed to 
475.29 	perform, or has not adequately performed, the duties under that section. The court must 
475.30 	order the agency to continue to appropriately engage relatives who responded to the notice 
475.31 	under section 260C.221 in placement and case planning decisions and to consider relatives 
475.32 	for foster care placement consistent with section 260C.221. Notwithstanding a court's finding 
475.33 	that the agency has made reasonable efforts to search for and notify relatives under section 
476.1 	260C.221, the court may order the agency to continue making reasonable efforts to search 
476.2 	for, notify, engage, and consider relatives who came to the agency's attention after sending 
476.3 	the initial notice under section 260C.221.
476.4 	(e) The court shall review the out-of-home placement plan and may modify the plan as 
476.5 	provided under section 260C.201, subdivisions 6 and 7.
476.6 	(f) When the court transfers the custody of a child to a responsible social services agency 
476.7 	resulting in foster care or protective supervision with a noncustodial parent under subdivision 
476.8 	1, the court shall notify the parents of the provisions of sections 260C.204 and 260C.503 
476.9 	to 260C.521, as required under juvenile court rules.
476.10 	(g) When a child remains in or returns to foster care pursuant to section 260C.451 and 
476.11 	the court has jurisdiction pursuant to section 260C.193, subdivision 6, paragraph (c), the 
476.12 	court shall at least annually conduct the review required under section 260C.203.

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

476.19 	Sec. 19. Minnesota Statutes 2024, section 260C.204, is amended to read:
476.20 	260C.204 PERMANENCY PROGRESS REVIEW FOR CHILDREN IN FOSTER 
476.21 	CARE FOR SIX MONTHS.
476.22 	(a) When a child continues in placement out of the home of the parent or guardian from 
476.23 	whom the child was removed, no later than six months after the child's placement the court 
476.24 	shall conduct a permanency progress hearing to review:
476.25 	(1) the progress of the case, the parent's progress on the case plan or out-of-home 
476.26 	placement plan, whichever is applicable;
476.27 	(2) the agency's reasonable, or in the case of an Indian child, active efforts for 
476.28 	reunification and its provision of services;
476.29 	(3) the agency's reasonable efforts to finalize the permanent plan for the child under 
476.30 	section 260.012, paragraph (e), and to make a placement as required under section 260C.212, 
476.31 	subdivision 2, in a home that will commit to being the legally permanent family for the 
477.1 	child in the event the child cannot return home according to the timelines in this section; 
477.2 	and
477.3 	(4) in the case of an Indian child, active efforts to prevent the breakup of the Indian 
477.4 	family and to make a placement according to the placement preferences under United States 
477.5 	Code, title 25, chapter 21, section 1915.
477.6 	(b) When a child is placed in a qualified residential treatment program setting as defined 
477.7 	in section 260C.007, subdivision 26d, the responsible social services agency must submit 
477.8 	evidence to the court as specified in section 260C.712.
477.9 	(c) The court shall ensure that notice of the hearing is sent to any relative who:
477.10 	(1) responded to the agency's notice provided under section 260C.221, indicating an 
477.11 	interest in participating in planning for the child or being a permanency resource for the 
477.12 	child and who has kept the court apprised of the relative's address; or
477.13 	(2) asked to be notified of court proceedings regarding the child as is permitted in section 
477.14 	260C.152, subdivision 5.
477.15 	(d)(1) If the parent or guardian has maintained contact with the child and is complying 
477.16 	with the court-ordered out-of-home placement plan, and if the child would benefit from 
477.17 	reunification with the parent, the court may either:
477.18 	(i) return the child home, if the conditions that led to the out-of-home placement have 
477.19 	been sufficiently mitigated that it is safe and in the child's best interests to return home; or
477.20 	(ii) continue the matter up to a total of six additional months. If the child has not returned 
477.21 	home by the end of the additional six months, the court must conduct a hearing according 
477.22 	to sections 260C.503 to 260C.521.
477.23 	(2) If the court determines that the parent or guardian is not complying, is not making 
477.24 	progress with or engaging with services in the out-of-home placement plan, or is not 
477.25 	maintaining regular contact with the child as outlined in the visitation plan required as part 
477.26 	of the out-of-home placement plan under section 260C.212, the court may order the 
477.27 	responsible social services agency:
477.28 	(i) to develop a plan for legally permanent placement of the child away from the parent;
477.29 	(ii) to consider, identify, recruit, and support one or more permanency resources from 
477.30 	the child's relatives and foster parent, consistent with clause (3) and section 260C.212, 
477.31 	subdivision 2, paragraph (a), to be the legally permanent home in the event the child cannot 
477.32 	be returned to the parent. Any relative or the child's foster parent may ask the court to order 
478.1 	the agency to consider them for permanent placement of the child in the event the child 
478.2 	cannot be returned to the parent. A relative or foster parent who wants to be considered 
478.3 	under this item shall cooperate with the background study required under section 245C.08, 
478.4 	if the individual has not already done so, and with the home study process required under 
478.5 	chapter 142B for providing child foster care and for adoption under section 259.41. The 
478.6 	home study referred to in this item shall be a single-home study in the form required by the 
478.7 	commissioner of children, youth, and families or similar study required by the individual's 
478.8 	state of residence when the subject of the study is not a resident of Minnesota. The court 
478.9 	may order the responsible social services agency to make a referral under the Interstate 
478.10 	Compact on the Placement of Children when necessary to obtain a home study for an 
478.11 	individual who wants to be considered for transfer of permanent legal and physical custody 
478.12 	or adoption of the child; and
478.13 	(iii) to file a petition to support an order for the legally permanent placement plan.
478.14 	(3) Consistent with section 260C.223, subdivision 2, paragraph (b), the responsible social 
478.15 	services agency must not define a foster family as the permanent home for a child until:
478.16 	(i) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
478.17 	are satisfied;
478.18 	(ii) inquiry about the child's heritage, including the child's race, culture, and ethnicity 
478.19 	pursuant to section 260.63, subdivision 10, has been completed; and
478.20 	(iii) the court has determined that reasonable or active efforts toward completing the 
478.21 	relative search requirements in section 260C.221 have been made.
478.22 	(e) Following the review under this section:
478.23 	(1) if the court has either returned the child home or continued the matter up to a total 
478.24 	of six additional months, the agency shall continue to provide services to support the child's 
478.25 	return home or to make reasonable efforts to achieve reunification of the child and the parent 
478.26 	as ordered by the court under an approved case plan;
478.27 	(2) if the court orders the agency to develop a plan for the transfer of permanent legal 
478.28 	and physical custody of the child to a relative, a petition supporting the plan shall be filed 
478.29 	in juvenile court within 30 days of the hearing required under this section and a trial on the 
478.30 	petition held within 60 days of the filing of the pleadings; or
478.31 	(3) if the court orders the agency to file a termination of parental rights, unless the county 
478.32 	attorney can show cause why a termination of parental rights petition should not be filed, 
478.33 	a petition for termination of parental rights shall be filed in juvenile court within 30 days 
479.1 	of the hearing required under this section and a trial on the petition held within 60 days of 
479.2 	the filing of the petition.

479.3 	Sec. 20. Minnesota Statutes 2024, section 260C.221, subdivision 2, is amended to read:
479.4 		Subd. 2.Relative notice requirements. (a) The agency may provide oral or written 
479.5 	notice to a child's relatives. In the child's case record, the agency must document providing 
479.6 	the required notice to each of the child's relatives. The responsible social services agency 
479.7 	must notify relatives:
479.8 	(1) of the need for a foster home for the child, the option to become a placement resource 
479.9 	for the child, the order of placement that the agency will consider under section 260C.212, 
479.10 	subdivision 2, paragraph (a), and the possibility of the need for a permanent placement for 
479.11 	the child;
479.12 	(2) of their responsibility to keep the responsible social services agency and the court 
479.13 	informed of their current address in order to receive notice in the event that a permanent 
479.14 	placement is sought for the child and to receive notice of the permanency progress review 
479.15 	hearing under section 260C.204. A relative who fails to provide a current address to the 
479.16 	responsible social services agency and the court forfeits the right to receive notice of the 
479.17 	possibility of permanent placement and of the permanency progress review hearing under 
479.18 	section 260C.204, until the relative provides a current address to the responsible social 
479.19 	services agency and the court. A decision by a relative not to be identified as a potential 
479.20 	permanent placement resource or participate in planning for the child shall not affect whether 
479.21 	the relative is considered for placement of, or as a permanency resource for, the child with 
479.22 	that relative at any time in the case, and shall not be the sole basis for the court to rule out 
479.23 	the relative as the child's placement or permanency resource;
479.24 	(3) that the relative may participate in the care and planning for the child, as specified 
479.25 	in subdivision 3, including that the opportunity for such participation may be lost by failing 
479.26 	to respond to the notice sent under this subdivision;
479.27 	(4) of the family foster care licensing and adoption home study requirements, including:
479.28 	(i) how to complete an application and;
479.29 	(ii) how to request a variance from licensing standards that do not present a safety or 
479.30 	health risk to the child in the home under section 142B.10and;
479.31 	(iii) supports that are available for relatives and children who reside in a family foster 
479.32 	home, including how to access respite care, strategies for leveraging natural supports for 
480.1 	the child and family, and ways to include resource or substitute caregivers in the child's 
480.2 	case plan; and
480.3 	(iv) the relative's choice between county or private agency and services provided by that 
480.4 	agency under section 142B.30, depending on funding available;
480.5 	(5) of the relatives' right to ask to be notified of any court proceedings regarding the 
480.6 	child, to attend the hearings, and of a relative's right to be heard by the court as required 
480.7 	under section 260C.152, subdivision 5;
480.8 	(6) that regardless of the relative's response to the notice sent under this subdivision, the 
480.9 	agency is required to establish permanency for a child, including planning for alternative 
480.10 	permanency options if the agency's reunification efforts fail or are not required; and
480.11 	(7) that by responding to the notice, a relative may receive information about participating 
480.12 	in a child's family and permanency team if the child is placed in a qualified residential 
480.13 	treatment program as defined in section 260C.007, subdivision 26d; and
480.14 	(8) information advising a relative on access to legal services and support.
480.15 	(b) The responsible social services agency shall send the notice required under paragraph 
480.16 	(a) to relatives who become known to the responsible social services agency, except for 
480.17 	relatives that the agency does not contact due to safety reasons under subdivision 5, paragraph 
480.18 	(b). The responsible social services agency shall continue to send notice to relatives 
480.19 	notwithstanding a court's finding that the agency has made reasonable efforts to conduct a 
480.20 	relative search.
480.21 	(c) The responsible social services agency is not required to send the notice under 
480.22 	paragraph (a) to a relative who becomes known to the agency after an adoption placement 
480.23 	agreement has been fully executed under section 260C.613, subdivision 1. If the relative 
480.24 	wishes to be considered for adoptive placement of the child, the agency shall inform the 
480.25 	relative of the relative's ability to file a motion for an order for adoptive placement under 
480.26 	section 260C.607, subdivision 6.

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

480.28 	Sec. 21. Minnesota Statutes 2024, section 260C.223, subdivision 1, is amended to read:
480.29 		Subdivision 1.Program; goals. (a) The commissioner of children, youth, and families 
480.30 	shall establish a program for concurrent permanency planning for child protection services.
480.31 	(b) Concurrent permanency planning involves a planning process for children who are 
480.32 	placed out of the home of their parents pursuant to a court order, or who have been voluntarily 
481.1 	placed out of the home by the parents for 60 days or more and who are not developmentally 
481.2 	disabled or emotionally disabled under section 260C.212, subdivision 9. The responsible 
481.3 	social services agency shall develop an alternative permanency plan while making reasonable 
481.4 	efforts for reunification of the child with the family, if required by section 260.012. The 
481.5 	goals of concurrent permanency planning are to:
481.6 	(1) achieve early permanency for children;
481.7 	(2) decrease children's length of stay in foster care and reduce the number of moves 
481.8 	children experience in foster care; and
481.9 	(3) develop a group of families establish a foster parent for a child who will work towards 
481.10 	reunification and also serve as a permanent families family for children.

481.11 	Sec. 22. Minnesota Statutes 2024, section 260C.223, subdivision 2, is amended to read:
481.12 		Subd. 2.Development of guidelines and protocols. (a) The commissioner shall establish 
481.13 	guidelines and protocols for social services agencies involved in concurrent permanency 
481.14 	planning, including criteria for conducting concurrent permanency planning based on relevant 
481.15 	factors such as:
481.16 	(1) age of the child and duration of out-of-home placement;
481.17 	(2) prognosis for successful reunification with parents;
481.18 	(3) availability of relatives and other concerned individuals to provide support or a 
481.19 	permanent placement for the child; and
481.20 	(4) special needs of the child and other factors affecting the child's best interests.
481.21 	(b) In developing the guidelines and protocols, the commissioner shall consult with 
481.22 	interest groups within the child protection system, including child protection workers, child 
481.23 	protection advocates, county attorneys, law enforcement, community service organizations, 
481.24 	the councils of color, and the ombudsperson for families.
481.25 	(c) The responsible social services agency must not make a foster family the permanent 
481.26 	home for a child until:
481.27 	(1) inquiry and Tribal notice requirements under section 260.761, subdivisions 1 and 2, 
481.28 	are satisfied;
481.29 	(2) inquiry about the child's heritage, including the child's race, culture, and ethnicity 
481.30 	pursuant to section 260.63, subdivision 10, has been completed; and
482.1 	(3) the court has determined that reasonable or active efforts toward completing the 
482.2 	relative search requirements in section 260C.221 have been made.

482.3 	Sec. 23. Minnesota Statutes 2024, section 260C.452, subdivision 4, is amended to read:
482.4 		Subd. 4.Administrative or court review of placements. (a) When the youth is 14 years 
482.5 	of age or older, the court, in consultation with the youth, shall review the youth's independent 
482.6 	living plan according to section 260C.203, paragraph (d).
482.7 	(b) The responsible social services agency shall file a copy of the notification of foster 
482.8 	care benefits for a youth who is 18 years of age or older according to section 260C.451, 
482.9 	subdivision 1, with the court. If the responsible social services agency does not file the 
482.10 	notice by the time the youth is 17-1/2 years of age, the court shall require the responsible 
482.11 	social services agency to file the notice.
482.12 	(c) When a youth is 18 years of age or older, the court shall ensure that the responsible 
482.13 	social services agency assists the youth in obtaining the following documents before the 
482.14 	youth leaves foster care: a Social Security card; an official or certified copy of the youth's 
482.15 	birth certificate; a state identification card or driver's license, Tribal enrollment identification 
482.16 	card, green permanent resident card, or school visa; health insurance information; the youth's 
482.17 	school, medical, and dental records; a contact list of the youth's medical, dental, and mental 
482.18 	health providers; and contact information for the youth's siblings, if the siblings are in foster 
482.19 	care.
482.20 	(d) For a youth who will be discharged from foster care at 18 years of age or older 
482.21 	because the youth is not eligible for extended foster care benefits or chooses to leave foster 
482.22 	care, the responsible social services agency must develop a personalized transition plan as 
482.23 	directed by the youth during the 180-day period immediately prior to the expected date of 
482.24 	discharge. The transition plan must be as detailed as the youth elects and include specific 
482.25 	options, including but not limited to:
482.26 	(1) affordable housing with necessary supports that does not include a homeless shelter;
482.27 	(2) health insurance, including eligibility for medical assistance as defined in section 
482.28 	256B.055, subdivision 17;
482.29 	(3) education, including application to the Education and Training Voucher Program;
482.30 	(4) local opportunities for mentors and continuing support services;
482.31 	(5) workforce supports and employment services;
483.1 	(6) a copy of the youth's consumer credit report as defined in section 13C.001 and 
483.2 	assistance in interpreting and resolving any inaccuracies in the report, at no cost to the youth;
483.3 	(7) information on executing a health care directive under chapter 145C and on the 
483.4 	importance of designating another individual to make health care decisions on behalf of the 
483.5 	youth if the youth becomes unable to participate in decisions;
483.6 	(8) appropriate contact information through 21 years of age if the youth needs information 
483.7 	or help dealing with a crisis situation; and
483.8 	(9) official documentation that the youth was previously in foster care.

483.9 	Sec. 24. Minnesota Statutes 2024, section 260E.03, subdivision 15, is amended to read:
483.10 		Subd. 15.Neglect. (a) "Neglect" means the commission or omission of any of the acts 
483.11 	specified under clauses (1) to (8), other than by accidental means:
483.12 	(1) failure by a person responsible for a child's care to supply a child with necessary 
483.13 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
483.14 	mental health when reasonably able to do so;
483.15 	(2) failure to protect a child from conditions or actions that seriously endanger the child's 
483.16 	physical or mental health when reasonably able to do so, including a growth delay, which 
483.17 	may be referred to as a failure to thrive, that has been diagnosed by a physician and is due 
483.18 	to parental neglect;
483.19 	(3) failure to provide for necessary supervision or child care arrangements appropriate 
483.20 	for a child after considering factors as the child's age, mental ability, physical condition, 
483.21 	length of absence, or environment, when the child is unable to care for the child's own basic 
483.22 	needs or safety, or the basic needs or safety of another child in their care;
483.23 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
483.24 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
483.25 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 
483.26 	5;
483.27 	(5) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 
483.28 	2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in 
483.29 	the child at birth, results of a toxicology test performed on the mother at delivery or the 
483.30 	child at birth, medical effects or developmental delays during the child's first year of life 
483.31 	that medically indicate prenatal exposure to a controlled substance, or the presence of a 
483.32 	fetal alcohol spectrum disorder;
484.1 	(6) medical neglect, as defined in section 260C.007, subdivision 6, clause (5);
484.2 	(7) chronic and severe use of alcohol or a controlled substance by a person responsible 
484.3 	for the child's care that adversely affects the child's basic needs and safety; or
484.4 	(8) emotional harm from a pattern of behavior that contributes to impaired emotional 
484.5 	functioning of the child which may be demonstrated by a substantial and observable effect 
484.6 	in the child's behavior, emotional response, or cognition that is not within the normal range 
484.7 	for the child's age and stage of development, with due regard to the child's culture.
484.8 	(b) Nothing in this chapter shall be construed to mean that a child is neglected solely 
484.9 	because the child's parent, guardian, or other person responsible for the child's care in good 
484.10 	faith selects and depends upon spiritual means or prayer for treatment or care of disease or 
484.11 	remedial care of the child in lieu of medical care.
484.12 	(c) This chapter does not impose upon persons not otherwise legally responsible for 
484.13 	providing a child with necessary food, clothing, shelter, education, or medical care a duty 
484.14 	to provide that care.
484.15 	(d) Nothing in this chapter shall be construed to mean that a child who has a mental, 
484.16 	physical, or emotional condition is neglected solely because the child remains in an 
484.17 	emergency department or hospital setting because services, including residential treatment, 
484.18 	that are deemed necessary by the child's medical or mental health care professional or county 
484.19 	case manager are not available to the child's parent, guardian, or other person responsible 
484.20 	for the child's care, and the child cannot be safely discharged to the child's family.

484.21 	Sec. 25. Minnesota Statutes 2024, section 260E.09, is amended to read:
484.22 	260E.09 REPORTING REQUIREMENTS.
484.23 	(a) An oral report shall be made immediately by telephone or otherwise. An oral report 
484.24 	made by a person required under section 260E.06, subdivision 1, to report shall be followed 
484.25 	within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate 
484.26 	police department, the county sheriff, the agency responsible for assessing or investigating 
484.27 	the report, or the local welfare agency.
484.28 	(b) Any report shall be of sufficient content to identify the child, any person believed 
484.29 	to be responsible for the maltreatment of the child if the person is known, the nature and 
484.30 	extent of the maltreatment, and the name and address of the reporter. The local welfare 
484.31 	agency or agency responsible for assessing or investigating the report shall accept a report 
484.32 	made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's 
484.33 	name or address as long as the report is otherwise sufficient under this paragraph. The local 
485.1 	welfare agency or agency responsible for assessing or investigating the report shall ask the 
485.2 	reporter if the reporter is aware of the child's heritage, including the child's Tribal lineage 
485.3 	pursuant to section 260.761 and the child's race, culture, and ethnicity pursuant to section 
485.4 	260.63, subdivision 10.
485.5 	(c) Notwithstanding paragraph (a), upon implementation of the provider licensing and 
485.6 	reporting hub, an individual who has an account with the provider licensing and reporting 
485.7 	hub and is required to report suspected maltreatment at a licensed program under section 
485.8 	260E.06, subdivision 1, may submit a written report in the hub in a manner prescribed by 
485.9 	the commissioner and is not required to make an oral report. A report submitted through 
485.10 	the provider licensing and reporting hub must be made immediately.

485.11 	Sec. 26. Minnesota Statutes 2024, section 260E.20, subdivision 1, is amended to read:
485.12 		Subdivision 1.General duties. (a) The local welfare agency shall offer services to 
485.13 	prevent future maltreatment, safeguarding and enhancing the welfare of the maltreated child, 
485.14 	and supporting and preserving family life whenever possible.
485.15 	(b) If the report alleges a violation of a criminal statute involving maltreatment or child 
485.16 	endangerment under section 609.378, the local law enforcement agency and local welfare 
485.17 	agency shall coordinate the planning and execution of their respective investigation and 
485.18 	assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews. 
485.19 	Each agency shall prepare a separate report of the results of the agency's investigation or 
485.20 	assessment.
485.21 	(c) In cases of alleged child maltreatment resulting in death, the local agency may rely 
485.22 	on the fact-finding efforts of a law enforcement investigation to make a determination of 
485.23 	whether or not maltreatment occurred.
485.24 	(d) When necessary, the local welfare agency shall seek authority to remove the child 
485.25 	from the custody of a parent, guardian, or adult with whom the child is living.
485.26 	(e) In performing any of these duties, the local welfare agency shall maintain an 
485.27 	appropriate record.
485.28 	(f) In conducting a family assessment, noncaregiver human trafficking assessment, or 
485.29 	investigation, the local welfare agency shall gather information on the existence of substance 
485.30 	abuse and domestic violence.
485.31 	(g) If the family assessment, noncaregiver human trafficking assessment, or investigation 
485.32 	indicates there is a potential for abuse of alcohol or other drugs by the parent, guardian, or 
486.1 	person responsible for the child's care, the local welfare agency must coordinate a 
486.2 	comprehensive assessment pursuant to section 245G.05.
486.3 	(h) The agency may use either a family assessment or investigation to determine whether 
486.4 	the child is safe when responding to a report resulting from birth match data under section 
486.5 	260E.03, subdivision 23, paragraph (c). If the child subject of birth match data is determined 
486.6 	to be safe, the agency shall consult with the county attorney to determine the appropriateness 
486.7 	of filing a petition alleging the child is in need of protection or services under section 
486.8 	260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is 
486.9 	determined not to be safe, the agency and the county attorney shall take appropriate action 
486.10 	as required under section 260C.503, subdivision 2.
486.11 	(i) When conducting any family assessment, noncaregiver human trafficking assessment, 
486.12 	or investigation, the agency shall ask the child, if age appropriate; parents; extended family; 
486.13 	and reporter about the child's heritage, including the child's Tribal lineage pursuant to section 
486.14 	260.761 and the child's race, culture, and ethnicity pursuant to section 260.63, subdivision 
486.15 	10.

486.16 	Sec. 27. Minnesota Statutes 2024, section 260E.24, subdivision 1, is amended to read:
486.17 		Subdivision 1.Timing. The local welfare agency shall conclude the family assessment, 
486.18 	the noncaregiver human trafficking assessment, or the investigation within 45 days of the 
486.19 	receipt of a report. The conclusion of the assessment or investigation may be extended to 
486.20 	permit the completion of a criminal investigation or the receipt of expert information 
486.21 	requested within 45 days of the receipt of the report.

486.22 	Sec. 28. Minnesota Statutes 2024, section 260E.24, subdivision 2, is amended to read:
486.23 		Subd. 2.Determination after family assessment or a noncaregiver human trafficking 
486.24 	assessment. After conducting a family assessment or a noncaregiver human trafficking 
486.25 	assessment, the local welfare agency shall determine whether child protective services are 
486.26 	needed to address the safety of the child and other family members and the risk of subsequent 
486.27 	maltreatment. The local welfare agency must document the information collected under 
486.28 	section 260E.20, subdivision 3, related to the completed family assessment or noncaregiver 
486.29 	human trafficking assessment in the child's or family's case notes.

486.30 	Sec. 29. [260E.291] REPORTING OF SCHOOL ATTENDANCE CONCERNS.
486.31 		Subdivision 1.Reports required. (a) A person mandated to report under this chapter 
486.32 	must immediately report to the local welfare agency, Tribal social services agency, or 
487.1 	designated partner if the person knows or has reason to believe that a child required to be 
487.2 	enrolled in school under section 120A.22 has at least seven unexcused absences in the 
487.3 	current school year and is at risk of educational neglect under section 260C.163, subdivision 
487.4 	11.
487.5 	(b) Any person may voluntarily report to the local welfare agency, Tribal social services 
487.6 	agency, or designated partner if the person knows or has reason to believe that a child 
487.7 	required to be enrolled in school under section 120A.22 has at least seven unexcused absences 
487.8 	in the current school year and is at risk of educational neglect under section 260C.163, 
487.9 	subdivision 11.
487.10 	(c) An oral report must be made immediately by telephone or otherwise. An oral report 
487.11 	made by a person required to report under paragraph (a) must be followed within 72 hours, 
487.12 	exclusive of weekends and holidays, by a report in writing to the local welfare agency. A 
487.13 	report must sufficiently identify the child and the child's parent or guardian, the actual or 
487.14 	estimated number of the child's unexcused absences in the current school year, the efforts 
487.15 	made by school officials to resolve attendance concerns with the family, and the name and 
487.16 	address of the reporter. A voluntary reporter under paragraph (b) may refuse to provide 
487.17 	their name or address if the report is otherwise sufficient, and such a report must be accepted 
487.18 	by the local welfare agency.
487.19 		Subd. 2.Local welfare agency. (a) The local welfare agency or partner designated to 
487.20 	provide child welfare services must provide a child welfare response for a report that alleges 
487.21 	a child enrolled in school has seven or more unexcused absences. When providing a child 
487.22 	welfare response under this paragraph, the local welfare agency or designated partner must 
487.23 	offer services to the child and the child's family to address school attendance concerns or 
487.24 	may partner with a county attorney's office, a community-based organization, or other 
487.25 	community partner to provide the services. The services must be culturally and linguistically 
487.26 	appropriate and tailored to the needs of the child and the child's family. This section is 
487.27 	subject to all requirements of the Minnesota Indian Family Preservation Act under sections 
487.28 	260.751 to 260.835, and the Minnesota African American Family Preservation and Child 
487.29 	Welfare Disproportionality Act under sections 260.61 to 260.693.
487.30 	(b) If the child's unexcused absences continue and the family has not engaged with 
487.31 	services under paragraph (a) after the local welfare agency, Tribal social services agency, 
487.32 	or partner designated to provide child welfare services has made multiple varied attempts 
487.33 	to engage the child's family, a report of educational neglect must be made regardless of the 
487.34 	number of unexcused absences the child has accrued. The local welfare agency must 
488.1 	determine the response path assignment pursuant to section 260E.17 and may proceed with 
488.2 	the process outlined in section 260C.141.

488.3 	Sec. 30. REVISOR INSTRUCTION.
 488.4 	The revisor of statutes shall change paragraphs to subdivisions, clauses to paragraphs, 
488.5 	and items to clauses in Minnesota Statutes, sections 260C.203 and 260C.204. The revisor 
488.6 	shall make any necessary grammatical changes or changes to sentence structure necessary 
488.7 	to preserve the meaning of the text as a result of the changes. The revisor of statutes must 
488.8 	correct any statutory cross-references consistent with the changes in this section.

488.9 	ARTICLE 19
488.10 	EARLY CARE AND LEARNING

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

488.15 	Sec. 2. Minnesota Statutes 2024, section 142A.76, subdivision 3, is amended to read:
488.16 		Subd. 3.Director; other staff. (a) The commissioner of public safety children, youth, 
488.17 	and families shall appoint a director of the Office of Restorative Practices. The director 
488.18 	should have qualifications that include or are similar to the following:
488.19 	(1) experience in the many facets of restorative justice and practices such as peacemaking 
488.20 	circles, sentencing circles, community conferencing, community panels, and family group 
488.21 	decision making;
488.22 	(2) experience in victim-centered and trauma-informed practices;
488.23 	(3) knowledge of the range of social problems that bring children and families to points 
488.24 	of crisis such as poverty, racism, unemployment, and unequal opportunity;
488.25 	(4) knowledge of the many ways youth become involved in other systems such as truancy, 
488.26 	juvenile delinquency, and child protection; and
488.27 	(5) understanding of educational barriers.
488.28 	(b) The director shall hire additional staff to perform the duties of the Office of 
488.29 	Restorative Practices. The staff shall be in the classified service of the state and their 
488.30 	compensation shall be established pursuant to chapter 43A.

489.1 	Sec. 3. Minnesota Statutes 2024, section 142B.16, subdivision 2, is amended to read:
489.2 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
489.3 	believes that the contents of the commissioner's correction order are in error, the applicant 
489.4 	or license holder may ask the Department of Children, Youth, and Families to reconsider 
489.5 	the parts of the correction order that are alleged to be in error. The request for reconsideration 
489.6 	must be made in writing and must be postmarked and sent to the commissioner within 20 
489.7 	calendar days after receipt of the correction order by the applicant or license holder or 
489.8 	submitted in the provider licensing and reporting hub within 20 calendar days from the date 
489.9 	the commissioner issued the order through the hub, and:
489.10 	(1) specify the parts of the correction order that are alleged to be in error;
489.11 	(2) explain why they are in error; and
489.12 	(3) include documentation to support the allegation of error.
489.13 	(b) Upon implementation of the provider licensing and reporting hub, the provider must 
489.14 	use the hub to request reconsideration. A request for reconsideration does not stay any 
489.15 	provisions or requirements of the correction order. The commissioner's disposition of a 
489.16 	request for reconsideration is final and not subject to appeal under chapter 14.
489.17 	(b) (c) This paragraph applies only to licensed family child care providers. A licensed 
489.18 	family child care provider who requests reconsideration of a correction order under paragraph 
489.19 	(a) may also request, on a form and in the manner prescribed by the commissioner, that the 
489.20 	commissioner expedite the review if:
489.21 	(1) the provider is challenging a violation and provides a description of how complying 
489.22 	with the corrective action for that violation would require the substantial expenditure of 
489.23 	funds or a significant change to their program; and
489.24 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
489.25 	to ensure the health and safety of children in care pending the commissioner's review of the 
489.26 	correction order.
489.27 	(d) The commissioner must not publicly post the correction order for licensed child care 
489.28 	centers or licensed family child care providers on the department's website until:
489.29 	(1) after the 20-calendar-day period for requesting reconsideration; or
489.30 	(2) if the applicant or license holder requested reconsideration, after the commissioner's 
489.31 	disposition of a request for reconsideration is provided to the applicant or license holder.

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

490.4 	Sec. 4. [142B.181] POSTING LICENSING ACTIONS ON DEPARTMENT 
490.5 	WEBSITE.
490.6 	(a) The commissioner must post a summary document for each licensing action issued 
490.7 	to a licensed child care center and family child care provider on the Licensing Information 
490.8 	Lookup public website maintained by the Department of Children, Youth, and Families. 
490.9 	The commissioner must not post any communication, including letters, from the 
490.10 	commissioner to the center or provider.
490.11 	(b) The commissioner must remove a summary document from the Licensing Information 
490.12 	Lookup public website within ten days of the length of time that the document is required 
490.13 	to be posted under Code of Federal Regulations, title 45, section 98.33.

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

490.17 	Sec. 5. Minnesota Statutes 2024, section 142D.31, subdivision 2, is amended to read:
490.18 		Subd. 2.Program components. (a) The nonprofit organization must use the grant for:
490.19 	(1) tuition scholarships up to $10,000 per year in amounts per year consistent with the 
490.20 	national TEACH early childhood program requirements for courses leading to the nationally 
490.21 	recognized child development associate credential or college-level courses leading to an 
490.22 	associate's degree or bachelor's degree in early childhood development and school-age care; 
490.23 	and
490.24 	(2) education incentives of a minimum of $250 to participants in the tuition scholarship 
490.25 	program if they complete a year of working in the early care and education field.
490.26 	(b) Applicants for the scholarship must be employed by a licensed or certified early 
490.27 	childhood or child care program and working directly with children, a licensed family child 
490.28 	care provider, employed by a public prekindergarten program, employed by a Head Start 
490.29 	program, or an employee in a school-age program exempt from licensing under section 
490.30 	142B.05, subdivision 2, paragraph (a), clause (8). Lower wage earners must be given priority 
490.31 	in awarding the tuition scholarships. Scholarship recipients must contribute at least ten 
490.32 	percent of the total scholarship and must be sponsored by their employers, who must also 
491.1 	contribute at least five percent of the total scholarship. Scholarship recipients who are 
491.2 	self-employed work in licensed family child care under Minnesota Rules, chapter 9502,
491.3 	must contribute 20 at least ten percent of the total scholarship and are not required to receive 
491.4 	employer sponsorship or employer match.

491.5 	Sec. 6. Minnesota Statutes 2024, section 142E.03, subdivision 3, is amended to read:
491.6 		Subd. 3.Redeterminations. (a) Notwithstanding Minnesota Rules, part 3400.0180, item 
491.7 	A, the county shall conduct a redetermination according to paragraphs (b) and (c).
491.8 	(b) The county shall use the redetermination form developed by the commissioner. The 
491.9 	county must verify the factors listed in subdivision 1, paragraph (a), as part of the 
491.10 	redetermination.
491.11 	(c) An applicant's eligibility must be redetermined no more frequently than every 12 
491.12 	months. The following criteria apply:
491.13 	(1) a family meets the eligibility redetermination requirements if a complete 
491.14 	redetermination form and all required verifications are received within 30 days after the 
491.15 	date the form was due;
491.16 	(2) if the 30th day after the date the form was due falls on a Saturday, Sunday, or holiday, 
491.17 	the 30-day time period is extended to include the next day that is not a Saturday, Sunday, 
491.18 	or holiday. Assistance shall be payable retroactively from the redetermination due date;
491.19 	(3) for a family where at least one parent is younger than 21 years of age, does not have 
491.20 	a high school degree or commissioner of education-selected high school equivalency 
491.21 	certification, and is a student in a school district or another similar program that provides 
491.22 	or arranges for child care, parenting, social services, career and employment supports, and 
491.23 	academic support to achieve high school graduation, the redetermination of eligibility may 
491.24 	be deferred beyond 12 months, to the end of the student's school year; and
491.25 	(4) starting May 25, 2026, if a new eligible child is added to the family and has care 
491.26 	authorized, the redetermination of eligibility must be extended 12 months from the eligible 
491.27 	child's arrival date; and
491.28 	(4) (5) a family and the family's providers must be notified that the family's 
491.29 	redetermination is due at least 45 days before the end of the family's 12-month eligibility 
491.30 	period.

492.1 	Sec. 7. Minnesota Statutes 2024, section 142E.11, subdivision 1, is amended to read:
492.2 		Subdivision 1.General authorization requirements. (a) When authorizing the amount 
492.3 	of child care, the county agency must consider the amount of time the parent reports on the 
492.4 	application or redetermination form that the child attends preschool, a Head Start program, 
492.5 	or school while the parent is participating in an authorized activity.
492.6 	(b) Care must be authorized and scheduled with a provider based on the applicant's or 
492.7 	participant's verified activity schedule when:
492.8 	(1) the family requests care from more than one provider per child;
492.9 	(2) the family requests care from a legal nonlicensed provider; or
492.10 	(3) an applicant or participant is employed by any child care center that is licensed by 
492.11 	the Department of Children, Youth, and Families or has been identified as a high-risk 
492.12 	Medicaid-enrolled provider.
492.13 	This paragraph expires March 2, 2026.
492.14 	(c) If the family remains eligible at redetermination, a new authorization with fewer 
492.15 	hours, the same hours, or increased hours may be determined.

492.16 	Sec. 8. Minnesota Statutes 2024, section 142E.11, subdivision 2, is amended to read:
492.17 		Subd. 2.Maintain steady child care authorizations. (a) Notwithstanding Minnesota 
492.18 	Rules, chapter 3400, the amount of child care authorized under section 142E.12 for 
492.19 	employment, education, or an MFIP employment plan shall continue at the same number 
492.20 	of hours or more hours until redetermination, including:
492.21 	(1) when the other parent moves in and is employed or has an education plan under 
492.22 	section 142E.12, subdivision 3, or has an MFIP employment plan; or
492.23 	(2) when the participant's work hours are reduced or a participant temporarily stops 
492.24 	working or attending an approved education program. Temporary changes include, but are 
492.25 	not limited to, a medical leave, seasonal employment fluctuations, or a school break between 
492.26 	semesters.
492.27 	(b) The county may increase the amount of child care authorized at any time if the 
492.28 	participant verifies the need for increased hours for authorized activities.
492.29 	(c) The county may reduce the amount of child care authorized if a parent requests a 
492.30 	reduction or because of a change in:
492.31 	(1) the child's school schedule;
493.1 	(2) the custody schedule; or
493.2 	(3) the provider's availability.
493.3 	(d) The amount of child care authorized for a family subject to subdivision 1, paragraph 
493.4 	(b), must change when the participant's activity schedule changes. Paragraph (a) does not 
493.5 	apply to a family subject to subdivision 1, paragraph (b). This paragraph expires March 2, 
493.6 	2026.
493.7 	(e) When a child reaches 13 years of age or a child with a disability reaches 15 years of 
493.8 	age, the amount of child care authorized shall continue at the same number of hours or more 
493.9 	hours until redetermination.

493.10 	Sec. 9. Minnesota Statutes 2024, section 142E.13, subdivision 2, is amended to read:
493.11 		Subd. 2.Extended eligibility and redetermination. (a) If the family received three 
493.12 	months of extended eligibility and redetermination is not due, to continue receiving child 
493.13 	care assistance the participant must be employed or have an education plan that meets the 
493.14 	requirements of section 142E.12, subdivision 3, or have an MFIP employment plan. 
493.15 	Notwithstanding Minnesota Rules, part 3400.0110, if child care assistance continues, the 
493.16 	amount of child care authorized shall continue at the same number or more hours until 
493.17 	redetermination, unless a condition in section 142E.11, subdivision 2, paragraph (c), applies. 
493.18 	A family subject to section 142E.11, subdivision 1, paragraph (b), shall have child care 
493.19 	authorized based on a verified activity schedule.
493.20 	(b) If the family's redetermination occurs before the end of the three-month extended 
493.21 	eligibility period to continue receiving child care assistance, the participant must verify that 
493.22 	the participant meets eligibility and activity requirements for child care assistance under 
493.23 	this chapter. Notwithstanding Minnesota Rules, part 3400.0010, if child care assistance 
493.24 	continues, the amount of child care authorized is based on section 142E.12. A family subject 
493.25 	to section 142E.11, subdivision 1, paragraph (b), shall have child care authorized based on 
493.26 	a verified activity schedule.

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

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

494.1
494.2
494.3	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)
	
494.4
494.5	0-74.99% 0-99.99% of federal poverty 
guidelines
	$0/biweekly
	
494.6	75.00-99.99% of federal poverty guidelines
	$2/biweekly
	
494.7
494.8	100.00% of federal poverty 
guidelines-27.72% 27.99%
	2.61% 2.6%
	
494.9	27.73-29.04%
	2.61%
	
494.10	29.05-30.36%
	2.61%
	
494.11	30.37-31.68%
	2.61%
	
494.12	31.69-33.00%
	2.91%
	
494.13	33.01-34.32%
	2.91%
	
494.14	34.33-35.65%
	2.91%
	
494.15	35.66-36.96%
	2.91%
	
494.16	36.97-38.29%
	3.21%
	
494.17	38.30-39.61%
	3.21%
	
494.18	39.62-40.93%
	3.21%
	
494.19	40.94-42.25%
	3.84%
	
494.20	42.26-43.57%
	3.84%
	
494.21	43.58-44.89%
	4.46%
	
494.22	44.90-46.21%
	4.76%
	
494.23	46.22-47.53%
	5.05%
	
494.24	47.54-48.85%
	5.65%
	
494.25	48.86-50.17%
	5.95%
	
494.26	50.18-51.49%
	6.24%
	
494.27	51.50-52.81%
	6.84%
	
494.28	52.82-54.13%
	7.58%
	
494.29	54.14-55.45%
	8.33%
	
494.30	55.46-56.77%
	9.20%
	
494.31	56.78-58.09%
	10.07%
	
494.32	58.10-59.41%
	10.94%
	
494.33	59.42-60.73%
	11.55%
	
494.34	60.74-62.06%
	12.16%
	
494.35	62.07-63.38%
	12.77%
	
494.36	63.39-64.70%
	13.38%
	
494.37	64.71-67.00%
	14.00%
	
494.38	28.00-30.99%
	2.6%
	
494.39	31.00-33.99%
	2.6%
	
495.1	34.00-36.99%
	2.9%
	
495.2	37.00-39.99%
	3.2%
	
495.3	40.00-42.99%
	3.8%
	
495.4	43.00-45.99%
	4.4%
	
495.5	46.00-48.99%
	5.0%
	
495.6	49.00-51.99%
	5.6%
	
495.7	52.00-54.99%
	6.2%
	
495.8	55.00-57.99%
	6.8%
	
495.9	58.00-60.99%
	6.9%
	
495.10	61.00-63.99%
	6.9%
	
495.11	64.00-67.00%
	6.9%
	
495.12	Greater than 67.00%
	ineligible
	
495.13 	A family's biweekly co-payment fee is the fixed percentage established for the income 
495.14 	range multiplied by the highest lowest possible income within that income range.

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

495.16 	Sec. 11. Minnesota Statutes 2024, section 142E.16, subdivision 3, is amended to read:
495.17 		Subd. 3.Training required. (a) Prior to initial authorization as required in subdivision 
495.18 	1, a legal nonlicensed family child care provider must complete first aid and CPR training 
495.19 	and provide the verification of first aid and CPR training to the commissioner. The training 
495.20 	documentation must have valid effective dates as of the date the registration request is 
495.21 	submitted to the commissioner. The training must have been provided by an individual 
495.22 	approved to provide first aid and CPR instruction and have included CPR techniques for 
495.23 	infants and children.
495.24 	(b) Upon each reauthorization after the authorization period when the initial first aid 
495.25 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
495.26 	provide verification of at least eight hours of additional training listed in the Minnesota 
495.27 	Center for Professional Development Registry.
495.28 	(c) Every 12 months, a legal nonlicensed family child care provider who is unrelated to 
495.29 	the child they care for must complete two hours of training in caring for children approved 
495.30 	by the commissioner.
495.31 	(c) (d) This subdivision only applies to legal nonlicensed family child care providers.

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

496.1 	Sec. 12. Minnesota Statutes 2024, section 142E.16, subdivision 7, is amended to read:
496.2 		Subd. 7.Record-keeping requirement. (a) As a condition of payment, all providers 
496.3 	receiving child care assistance payments must:
496.4 	(1) keep accurate and legible daily attendance records at the site where services are 
496.5 	delivered for children receiving child care assistance; and
496.6 	(2) make those records available immediately to the county or the commissioner upon 
496.7 	request. Any records not provided to a county or the commissioner at the date and time of 
496.8 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
496.9 	to contest an overpayment or disqualification of the provider.; and
496.10 	(3) submit data on child enrollment and attendance in the form and manner specified by 
496.11 	the commissioner.
496.12 	(b) As a condition of payment, attendance records must be completed daily and include 
496.13 	the date, the first and last name of each child in attendance, and the times when each child 
496.14 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
496.15 	off to and picked up from the child care provider must be entered by the person dropping 
496.16 	off or picking up the child. The daily attendance records must be retained at the site where 
496.17 	services are delivered for six years after the date of service.
496.18 	(c) When the county or the commissioner knows or has reason to believe that a current 
496.19 	or former provider has not complied with the record-keeping requirement in this subdivision:
496.20 	(1) the commissioner may:
496.21 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
496.22 	under section 142E.17, subdivision 9, paragraph (d);
496.23 	(ii) pursue an administrative disqualification under sections 142E.51, subdivision 5, and 
496.24 	256.98; or
496.25 	(iii) take an action against the provider under sections 142E.50 to 142E.58 section 
496.26 	142E.51; or
496.27 	(2) a county or the commissioner may establish an attendance record overpayment under 
496.28 	paragraph (d).
496.29 	(d) To calculate an attendance record overpayment under this subdivision, the 
496.30 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
496.31 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
496.32 	incomplete, inaccurate, or otherwise inadequate.
497.1 	(e) The commissioner shall develop criteria for a county to determine an attendance 
497.2 	record overpayment under this subdivision.

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

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

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

497.17 	Sec. 15. Laws 2021, First Special Session chapter 7, article 2, section 81, is amended to 
497.18 	read:
497.19 	Sec. 81. FAMILY CHILD CARE REGULATION MODERNIZATION.
 497.20 	(a) The commissioner of human services shall children, youth, and families must contract 
497.21 	with an experienced and independent organization or individual consultant to conduct the 
497.22 	work outlined in this section. If practicable, the commissioner must contract with the National 
497.23 	Association for Regulatory Administration.
497.24 	(b) The consultant must develop a proposal for updated family child care licensing 
497.25 	standards and solicit input from stakeholders as described in paragraph (d). The proposed 
497.26 	new standards must protect the health and safety of children in family child care programs 
497.27 	and be child centered, family friendly, and fair to providers.
497.28 	(c) The consultant must work with stakeholders and the Department of Children, Youth, 
497.29 	and Families, as described in paragraph (d), to develop a proposal for a risk-based model 
497.30 	for monitoring compliance with family child care licensing standards, grounded in national 
497.31 	regulatory best practices. Violations in the new model must be weighted to reflect the 
498.1 	potential risk they pose to children's health and safety, and licensing sanctions must be tied 
498.2 	to the potential risk. The proposed new model must protect the health and safety of children 
498.3 	in family child care programs and be child-centered, family-friendly, and fair to providers.
498.4 	(d) The consultant shall must develop and implement a stakeholder engagement process 
498.5 	that solicits input from parents, licensed family child care providers, county licensors, staff 
498.6 	of the Department of Human Services Children, Youth, and Families, and experts in child 
498.7 	development about licensing standards, tiers for violations of the standards based on the 
498.8 	potential risk of harm that each violation poses, and licensing sanctions for each tier. The 
498.9 	consultant and commissioner must engage with working groups of licensed family child 
498.10 	care providers at least five times throughout the stakeholder engagement process, and include 
498.11 	both daytime and evening engagement opportunities as needed.
498.12 	(e) The consultant shall solicit input from parents, licensed family child care providers, 
498.13 	county licensors, and staff of the Department of Human Services Children, Youth, and 
498.14 	Families about which family child care providers should be eligible for abbreviated 
498.15 	inspections that predict compliance with other licensing standards for licensed family child 
498.16 	care providers using key indicators previously identified by an empirically based statistical 
498.17 	methodology developed by the National Association for Regulatory Administration and the 
498.18 	Research Institute for Key Indicators.
498.19 	(f) No later than February December 1, 2024 2025, the commissioner shall must submit 
498.20 	a report and proposed legislation required to implement the new licensing model and the 
498.21 	new licensing standards to the chairs and ranking minority members of the legislative 
498.22 	committees with jurisdiction over child care regulation. Throughout the drafting of the 
498.23 	report and proposed legislation required under this paragraph, the commissioner must engage 
498.24 	providers whose primary language is not English to have those providers review translated 
498.25 	drafts of the report and written materials provided at engagement sessions to provide feedback 
498.26 	on the draft standards. This engagement must occur within focus groups or meetings that 
498.27 	are held at convenient times for the providers, including both daytime and evening sessions.
498.28 	(g) The proposals developed under paragraphs (b) and (c); any presentations, summary 
498.29 	documents, engagement invitations, surveys, and drafts of the report used in the stakeholder 
498.30 	engagement process under paragraph (d) or when soliciting input under paragraph (e); and 
498.31 	the report required under paragraph (f) must also be made available in Hmong, Somali, and 
498.32 	Spanish.
499.1 	(h) The updated family child care licensing standards proposed under paragraph (b) and 
499.2 	the risk-based model for monitoring compliance with family child care licensing standards 
499.3 	proposed under paragraph (c) must not be implemented any earlier than January 1, 2027.

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

499.12 	Sec. 17. REVISOR INSTRUCTION.
 499.13 	The revisor of statutes shall renumber Minnesota Statutes, section 245.0962, as Minnesota 
499.14 	Statutes, section 142A.47. The revisor shall also make necessary cross-reference changes 
499.15 	consistent with the renumbering.

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

499.17 	Sec. 18. REVISOR INSTRUCTION.
 499.18 	The revisor of statutes shall renumber Minnesota Statutes, section 142D.12, subdivision 
499.19 	3, as Minnesota Statutes, section 120B.121. The revisor shall also make necessary 
499.20 	cross-reference changes consistent with the renumbering.

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

499.25 	ARTICLE 20
499.26 	CHILDREN AND FAMILIES LICENSING POLICY

499.27 	Section 1. Minnesota Statutes 2024, section 142B.10, subdivision 14, is amended to read:
499.28 		Subd. 14.Grant of license; license extension. (a) If the commissioner determines that 
499.29 	the program complies with all applicable rules and laws, the commissioner shall issue a 
500.1 	license consistent with this section or, if applicable, a temporary change of ownership license 
500.2 	under section 142B.11. At minimum, the license shall state:
500.3 	(1) the name of the license holder;
500.4 	(2) the address of the program;
500.5 	(3) the effective date and expiration date of the license;
500.6 	(4) the type of license;
500.7 	(5) the maximum number and ages of persons that may receive services from the program; 
500.8 	and
500.9 	(6) any special conditions of licensure.
500.10 	(b) The commissioner may issue a license for a period not to exceed two years if:
500.11 	(1) the commissioner is unable to conduct the observation required by subdivision 11, 
500.12 	paragraph (a), clause (3), because the program is not yet operational;
500.13 	(2) certain records and documents are not available because persons are not yet receiving 
500.14 	services from the program; and
500.15 	(3) the applicant complies with applicable laws and rules in all other respects.
500.16 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
500.17 	or persons will be placed or cared for in the licensed program.
500.18 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
500.19 	license if the applicant, license holder, or an affiliated controlling individual has:
500.20 	(1) been disqualified and the disqualification was not set aside and no variance has been 
500.21 	granted;
500.22 	(2) been denied a license under this chapter or chapter 245A within the past two years;
500.23 	(3) had a license issued under this chapter or chapter 245A revoked within the past five 
500.24 	years; or
500.25 	(4) failed to submit the information required of an applicant under subdivision 1, 
500.26 	paragraph (f), (g), or (h), after being requested by the commissioner.
500.27 	When a license issued under this chapter or chapter 245A is revoked, the license holder 
500.28 	and each affiliated controlling individual with a revoked license may not hold any license 
500.29 	under chapter 142B for five years following the revocation, and other licenses held by the 
501.1 	applicant or license holder or licenses affiliated with each controlling individual shall also 
501.2 	be revoked.
501.3 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
501.4 	affiliated with a license holder or controlling individual that had a license revoked within 
501.5 	the past five years if the commissioner determines that (1) the license holder or controlling 
501.6 	individual is operating the program in substantial compliance with applicable laws and rules 
501.7 	and (2) the program's continued operation is in the best interests of the community being 
501.8 	served.
501.9 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
501.10 	to an application that is affiliated with an applicant, license holder, or controlling individual 
501.11 	that had an application denied within the past two years or a license revoked within the past 
501.12 	five years if the commissioner determines that (1) the applicant or controlling individual 
501.13 	has operated one or more programs in substantial compliance with applicable laws and rules 
501.14 	and (2) the program's operation would be in the best interests of the community to be served.
501.15 	(g) In determining whether a program's operation would be in the best interests of the 
501.16 	community to be served, the commissioner shall consider factors such as the number of 
501.17 	persons served, the availability of alternative services available in the surrounding 
501.18 	community, the management structure of the program, whether the program provides 
501.19 	culturally specific services, and other relevant factors.
501.20 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
501.21 	living in the household where the services will be provided as specified under section 
501.22 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
501.23 	and no variance has been granted.
501.24 	(i) Pursuant to section 142B.18, subdivision 1, paragraph (b), when a license issued 
501.25 	under this chapter has been suspended or revoked and the suspension or revocation is under 
501.26 	appeal, the program may continue to operate pending a final order from the commissioner. 
501.27 	If the license under suspension or revocation will expire before a final order is issued, a 
501.28 	temporary provisional license may be issued provided any applicable license fee is paid 
501.29 	before the temporary provisional license is issued.
501.30 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
501.31 	a controlling individual or license holder, and the controlling individual or license holder 
501.32 	is ordered under section 245C.17 to be immediately removed from direct contact with 
501.33 	persons receiving services or is ordered to be under continuous, direct supervision when 
501.34 	providing direct contact services, the program may continue to operate only if the program 
502.1 	complies with the order and submits documentation demonstrating compliance with the 
502.2 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
502.3 	if the disqualification is not set aside and no variance is granted, the order to immediately 
502.4 	remove the individual from direct contact or to be under continuous, direct supervision 
502.5 	remains in effect pending the outcome of a hearing and final order from the commissioner.
502.6 	(k) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
502.7 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
502.8 	relocation within the same county by a licensed family day care provider, shall be considered 
502.9 	an extension of the license for a period of no more than 30 calendar days or until the new 
502.10 	license is issued, whichever occurs first, provided the county agency has determined the 
502.11 	family day care provider meets licensure requirements at the new location.
502.12 	(l) Unless otherwise specified by statute, all licenses issued under this chapter expire at 
502.13 	12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
502.14 	apply for and be granted comply with the requirements in section 142B.12 and be reissued
502.15 	a new license to operate the program or the program must not be operated after the expiration 
502.16 	date. Child foster care license holders must apply for and be granted a new license to operate 
502.17 	the program or the program must not be operated after the expiration date. Upon 
502.18 	implementation of the provider licensing and reporting hub, licenses may be issued each 
502.19 	calendar year.
502.20 	(m) The commissioner shall not issue or reissue a license under this chapter if it has 
502.21 	been determined that a tribal licensing authority has established jurisdiction to license the 
502.22 	program or service.
502.23 	(n) The commissioner of children, youth, and families shall coordinate and share data 
502.24 	with the commissioner of human services to enforce this section.

502.25 	Sec. 2. Minnesota Statutes 2024, section 142B.171, subdivision 2, is amended to read:
502.26 		Subd. 2.Documented technical assistance.  (a) In lieu of a correction order under section 
502.27 	142B.16, the commissioner shall provide documented technical assistance to a family child 
502.28 	care or child care center license holder if the commissioner finds that:
502.29 	(1) the license holder has failed to comply with a requirement in this chapter or Minnesota 
502.30 	Rules, chapter 9502 or 9503, that the commissioner determines to be low risk as determined 
502.31 	by the child care weighted risk system;
502.32 	(2) the noncompliance does not imminently endanger the health, safety, or rights of the 
502.33 	persons served by the program; and
503.1 	(3) the license holder did not receive documented technical assistance or a correction 
503.2 	order for the same violation at the license holder's most recent annual licensing inspection.
503.3 	(b) Documented technical assistance must include communication from the commissioner 
503.4 	to the license holder that:
503.5 	(1) states the conditions that constitute a violation of a law or rule;
503.6 	(2) references the specific law or rule violated; and
503.7 	(3) explains remedies for correcting the violation.
503.8 	(c) The commissioner shall not publicly publish documented technical assistance on the 
503.9 	department's website.

503.10 	Sec. 3. Minnesota Statutes 2024, section 142B.30, subdivision 1, is amended to read:
503.11 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
503.12 	agencies that have been designated or licensed by the commissioner to perform licensing 
503.13 	functions and activities under section 142B.10; to recommend denial of applicants under 
503.14 	section 142B.15; to issue correction orders, to issue variances, and to recommend a 
503.15 	conditional license under section 142B.16; or to recommend suspending or revoking a 
503.16 	license or issuing a fine under section 142B.18, shall comply with rules and directives of 
503.17 	the commissioner governing those functions and with this section. The following variances 
503.18 	are excluded from the delegation of variance authority and may be issued only by the 
503.19 	commissioner:
503.20 	(1) dual licensure of family child care and family child foster care;
503.21 	(2) child foster care maximum age requirement;
503.22 	(3) variances regarding disqualified individuals;
503.23 	(4) variances to requirements relating to chemical use problems of a license holder or a 
503.24 	household member of a license holder; and
503.25 	(5) variances to section 142B.74 for a time-limited period. If the commissioner grants 
503.26 	a variance under this clause, the license holder must provide notice of the variance to all 
503.27 	parents and guardians of the children in care.
503.28 	(b) The commissioners of human services and children, youth, and families must both 
503.29 	approve a variance for dual licensure of family child foster care and family adult foster care 
503.30 	or family adult foster care and family child care. Variances under this paragraph are excluded 
503.31 	from the delegation of variance authority and may be issued only by both commissioners.
504.1 	(c) Except as provided in section 142B.41, subdivision 4, paragraph (e), a county agency 
504.2 	must not grant a license holder a variance to exceed the maximum allowable family child 
504.3 	care license capacity of 14 children.
504.4 	(d) A county agency that has been designated by the commissioner to issue family child 
504.5 	care variances must:
504.6 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
504.7 	public website and update the policies as necessary; and
504.8 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
504.9 	all family child care license holders in the county.
504.10 	(e) Before the implementation of NETStudy 2.0, county agencies must report information 
504.11 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
504.12 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
504.13 	commissioner at least monthly in a format prescribed by the commissioner.
504.14 	(f) For family child care programs, the commissioner shall require a county agency to 
504.15 	conduct one unannounced licensing review at least annually.
504.16 	(g) A child foster care license issued under this section may be issued for up to two years
504.17 	until implementation of the provider licensing and reporting hub. Upon implementation of 
504.18 	the provider licensing and reporting hub, licenses may be issued each calendar year.
504.19 	(h) A county agency shall report to the commissioner, in a manner prescribed by the 
504.20 	commissioner, the following information for a licensed family child care program:
504.21 	(1) the results of each licensing review completed, including the date of the review, and 
504.22 	any licensing correction order issued;
504.23 	(2) any death, serious injury, or determination of substantiated maltreatment; and
504.24 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
504.25 	information under this clause must also be reported to the state fire marshal within two 
504.26 	business days of receiving notice from a licensed family child care provider.

504.27 	Sec. 4. Minnesota Statutes 2024, section 142B.41, is amended by adding a subdivision to 
504.28 	read:
504.29 		Subd. 14.Staff distribution. Notwithstanding Minnesota Rules, part 9503.0040, subpart 
504.30 	2, item B, a child care aide in a licensed child care center may be substituted for a teacher 
504.31 	during morning arrival and afternoon departure times if the total arrival and departure time 
505.1 	does not exceed 25 percent of the center's daily hours of operation. For a child care aide to 
505.2 	be substituted for a teacher under this subdivision, the child care aide must:
505.3 	(1) be 18 years of age or older;
505.4 	(2) have been employed by the child care center for a minimum of 30 days; and
505.5 	(3) have completed the training required under section 142B.65, including orientation 
505.6 	training and the training required within the first 90 days of employment.

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

505.8 	Sec. 5. Minnesota Statutes 2024, section 142B.51, subdivision 2, is amended to read:
505.9 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
505.10 	licensed by the Department of Human Services under chapter 245A or the Department of 
505.11 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
505.12 	serve a child or children under eight nine years of age must document training that fulfills 
505.13 	the requirements in this subdivision.
505.14 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
505.15 	age eight nine in a motor vehicle, the person transporting the child must satisfactorily 
505.16 	complete training on the proper use and installation of child restraint systems in motor 
505.17 	vehicles. Training completed under this section may be used to meet initial or ongoing 
505.18 	training under Minnesota Rules, part 2960.3070, subparts 1 and 2.
505.19 	(c) Training required under this section must be completed at orientation or initial training 
505.20 	and repeated at least once every five years. At a minimum, the training must address the 
505.21 	proper use of child restraint systems based on the child's size, weight, and age, and the 
505.22 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
505.23 	holder to transport the child or children.
505.24 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
505.25 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
505.26 	holders may obtain a list of certified and approved trainers through the Department of Public 
505.27 	Safety website or by contacting the agency.
505.28 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
505.29 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
505.30 	for a relative who completes a child seat safety check up. The child seat safety check up 
505.31 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
505.32 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
506.1 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
506.2 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
506.3 	a license and may transport a relative foster child younger than eight years of age. A child 
506.4 	seat safety check up must be completed each time a child requires a different size car seat 
506.5 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
506.6 	complete training that meets the other requirements of this subdivision prior to placement 
506.7 	of another foster child younger than eight years of age in the home or prior to the renewal 
506.8 	of the child foster care license.

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

506.10 	Sec. 6. Minnesota Statutes 2024, section 142B.65, subdivision 8, is amended to read:
506.11 		Subd. 8.Child passenger restraint systems; training requirement.  (a) Before a license 
506.12 	holder transports a child or children under age eight nine in a motor vehicle, the person 
506.13 	placing the child or children in a passenger restraint must satisfactorily complete training 
506.14 	on the proper use and installation of child restraint systems in motor vehicles.
506.15 	(b) Training required under this subdivision must be repeated at least once every five 
506.16 	years. At a minimum, the training must address the proper use of child restraint systems 
506.17 	based on the child's size, weight, and age, and the proper installation of a car seat or booster 
506.18 	seat in the motor vehicle used by the license holder to transport the child or children.
506.19 	(c) Training required under this subdivision must be provided by individuals who are 
506.20 	certified and approved by the Department of Public Safety, Office of Traffic Safety. License 
506.21 	holders may obtain a list of certified and approved trainers through the Department of Public 
506.22 	Safety website or by contacting the agency.
506.23 	(d) Child care providers that only transport school-age children as defined in section 
506.24 	142B.01, subdivision 25, in child care buses as defined in section 169.448, subdivision 1, 
506.25 	paragraph (e), are exempt from this subdivision.
506.26 	(e) Training completed under this subdivision may be used to meet in-service training 
506.27 	requirements under subdivision 9. Training completed within the previous five years is 
506.28 	transferable upon a staff person's change in employment to another child care center.

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

507.1 	Sec. 7. Minnesota Statutes 2024, section 142B.65, subdivision 9, is amended to read:
507.2 		Subd. 9.In-service training. (a) A license holder must ensure that the center director, 
507.3 	staff persons, substitutes, and unsupervised volunteers complete in-service training each 
507.4 	calendar year.
507.5 	(b) The center director and staff persons who work more than 20 hours per week must 
507.6 	complete 24 hours of in-service training each calendar year. Staff persons who work 20 
507.7 	hours or less per week must complete 12 hours of in-service training each calendar year. 
507.8 	Substitutes and unsupervised volunteers must complete at least two hours of training each 
507.9 	year, and the training must include the requirements of paragraphs (d) to (g) and do not 
507.10 	otherwise have a minimum number of hours of training to complete.
507.11 	(c) The number of in-service training hours may be prorated for individuals center 
507.12 	directors and staff persons not employed for an entire year.
507.13 	(d) Each year, in-service training must include:
507.14 	(1) the center's procedures for maintaining health and safety according to section 142B.66 
507.15 	and Minnesota Rules, part 9503.0140, and handling emergencies and accidents according 
507.16 	to Minnesota Rules, part 9503.0110;
507.17 	(2) the reporting responsibilities under chapter 260E and Minnesota Rules, part 
507.18 	9503.0130;
507.19 	(3) at least one-half hour of training on the standards under section 142B.46 and on 
507.20 	reducing the risk of sudden unexpected infant death as required under subdivision 6, if 
507.21 	applicable; and
507.22 	(4) at least one-half hour of training on the risk of abusive head trauma from shaking 
507.23 	infants and young children as required under subdivision 7, if applicable.
507.24 	(e) Each year, or when a change is made, whichever is more frequent, in-service training 
507.25 	must be provided on: (1) the center's risk reduction plan under section 142B.54, subdivision 
507.26 	2; and (2) a child's individual child care program plan as required under Minnesota Rules, 
507.27 	part 9503.0065, subpart 3.
507.28 	(f) At least once every two calendar years, the in-service training must include:
507.29 	(1) child development and learning training under subdivision 3;
507.30 	(2) pediatric first aid that meets the requirements of subdivision 4;
507.31 	(3) pediatric cardiopulmonary resuscitation training that meets the requirements of 
507.32 	subdivision 5;
508.1 	(4) cultural dynamics training to increase awareness of cultural differences; and
508.2 	(5) disabilities training to increase awareness of differing abilities of children.
508.3 	(g) At least once every five years, in-service training must include child passenger 
508.4 	restraint training that meets the requirements of subdivision 8, if applicable.
508.5 	(h) The remaining hours of the in-service training requirement must be met by completing 
508.6 	training in the following content areas of the Minnesota Knowledge and Competency 
508.7 	Framework:
508.8 	(1) Content area I: child development and learning;
508.9 	(2) Content area II: developmentally appropriate learning experiences;
508.10 	(3) Content area III: relationships with families;
508.11 	(4) Content area IV: assessment, evaluation, and individualization;
508.12 	(5) Content area V: historical and contemporary development of early childhood 
508.13 	education;
508.14 	(6) Content area VI: professionalism;
508.15 	(7) Content area VII: health, safety, and nutrition; and
508.16 	(8) Content area VIII: application through clinical experiences.
508.17 	(i) For purposes of this subdivision, the following terms have the meanings given them.
508.18 	(1) "Child development and learning training" means training in understanding how 
508.19 	children develop physically, cognitively, emotionally, and socially and learn as part of the 
508.20 	children's family, culture, and community.
508.21 	(2) "Developmentally appropriate learning experiences" means creating positive learning 
508.22 	experiences, promoting cognitive development, promoting social and emotional development, 
508.23 	promoting physical development, and promoting creative development.
508.24 	(3) "Relationships with families" means training on building a positive, respectful 
508.25 	relationship with the child's family.
508.26 	(4) "Assessment, evaluation, and individualization" means training in observing, 
508.27 	recording, and assessing development; assessing and using information to plan; and assessing 
508.28 	and using information to enhance and maintain program quality.
509.1 	(5) "Historical and contemporary development of early childhood education" means 
509.2 	training in past and current practices in early childhood education and how current events 
509.3 	and issues affect children, families, and programs.
509.4 	(6) "Professionalism" means training in knowledge, skills, and abilities that promote 
509.5 	ongoing professional development.
509.6 	(7) "Health, safety, and nutrition" means training in establishing health practices, ensuring 
509.7 	safety, and providing healthy nutrition.
509.8 	(8) "Application through clinical experiences" means clinical experiences in which a 
509.9 	person applies effective teaching practices using a range of educational programming models.
509.10 	(j) The license holder must ensure that documentation, as required in subdivision 10, 
509.11 	includes the number of total training hours required to be completed, name of the training, 
509.12 	the Minnesota Knowledge and Competency Framework content area, number of hours 
509.13 	completed, and the director's approval of the training.
509.14 	(k) In-service training completed by a staff person that is not specific to that child care 
509.15 	center is transferable upon a staff person's change in employment to another child care 
509.16 	program.

509.17 	Sec. 8. Minnesota Statutes 2024, section 142B.66, subdivision 3, is amended to read:
509.18 		Subd. 3.Emergency preparedness. (a) A licensed child care center must have a written 
509.19 	emergency plan for emergencies that require evacuation, sheltering, or other protection of 
509.20 	a child, such as fire, natural disaster, intruder, or other threatening situation that may pose 
509.21 	a health or safety hazard to a child. The plan must be written on a form developed by the 
509.22 	commissioner and must include:
509.23 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
509.24 	(2) a designated relocation site and evacuation route;
509.25 	(3) procedures for notifying a child's parent or legal guardian of the evacuation, relocation, 
509.26 	shelter-in-place, or lockdown, including procedures for reunification with families;
509.27 	(4) accommodations for a child with a disability or a chronic medical condition;
509.28 	(5) procedures for storing a child's medically necessary medicine that facilitates easy 
509.29 	removal during an evacuation or relocation;
509.30 	(6) procedures for continuing operations in the period during and after a crisis;
510.1 	(7) procedures for communicating with local emergency management officials, law 
510.2 	enforcement officials, or other appropriate state or local authorities; and
510.3 	(8) accommodations for infants and toddlers.
510.4 	(b) The license holder must train staff persons on the emergency plan at orientation, 
510.5 	when changes are made to the plan, and at least once each calendar year. Training must be 
510.6 	documented in each staff person's personnel file.
510.7 	(c) The license holder must conduct drills according to the requirements in Minnesota 
510.8 	Rules, part 9503.0110, subpart 3. The date and time of the drills must be documented.
510.9 	(d) The license holder must review and update the emergency plan annually each calendar 
510.10 	year. Documentation of the annual yearly emergency plan review shall be maintained in 
510.11 	the program's administrative records.
510.12 	(e) The license holder must include the emergency plan in the program's policies and 
510.13 	procedures as specified under section 142B.10, subdivision 21. The license holder must 
510.14 	provide a physical or electronic copy of the emergency plan to the child's parent or legal 
510.15 	guardian upon enrollment.
510.16 	(f) The relocation site and evacuation route must be posted in a visible place as part of 
510.17 	the written procedures for emergencies and accidents in Minnesota Rules, part 9503.0140, 
510.18 	subpart 21.

510.19 	Sec. 9. Minnesota Statutes 2024, section 142B.70, subdivision 7, is amended to read:
510.20 		Subd. 7.Child passenger restraint systems; training requirement. (a) A license 
510.21 	holder must comply with all seat belt and child passenger restraint system requirements 
510.22 	under section 169.685.
510.23 	(b) Family and group family child care programs licensed by the Department of Children, 
510.24 	Youth, and Families that serve a child or children under eight nine years of age must 
510.25 	document training that fulfills the requirements in this subdivision.
510.26 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
510.27 	child or children under age eight nine in a motor vehicle, the person placing the child or 
510.28 	children in a passenger restraint must satisfactorily complete training on the proper use and 
510.29 	installation of child restraint systems in motor vehicles. Training completed under this 
510.30 	subdivision may be used to meet initial training under subdivision 1 or ongoing training 
510.31 	under subdivision 8.
511.1 	(2) Training required under this subdivision must be at least one hour in length, completed 
511.2 	at initial training, and repeated at least once every five years. At a minimum, the training 
511.3 	must address the proper use of child restraint systems based on the child's size, weight, and 
511.4 	age, and the proper installation of a car seat or booster seat in the motor vehicle used by the 
511.5 	license holder to transport the child or children.
511.6 	(3) Training under this subdivision must be provided by individuals who are certified 
511.7 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
511.8 	may obtain a list of certified and approved trainers through the Department of Public Safety 
511.9 	website or by contacting the agency.
511.10 	(c) Child care providers that only transport school-age children as defined in section 
511.11 	142B.01, subdivision 13, paragraph (f), in child care buses as defined in section 169.448, 
511.12 	subdivision 1, paragraph (e), are exempt from this subdivision.

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

511.14 	Sec. 10. Minnesota Statutes 2024, section 142B.70, subdivision 8, is amended to read:
511.15 		Subd. 8.Training requirements for family and group family child care. (a) For 
511.16 	purposes of family and group family child care, the license holder and each second adult 
511.17 	caregiver must complete 16 hours of ongoing training each year. Repeat of topical training 
511.18 	requirements in subdivisions 3 to 9 shall count toward the annual 16-hour training 
511.19 	requirement. Additional ongoing training subjects to meet the annual 16-hour training 
511.20 	requirement must be selected from the following areas:
511.21 	(1) child development and learning training in understanding how a child develops 
511.22 	physically, cognitively, emotionally, and socially, and how a child learns as part of the 
511.23 	child's family, culture, and community;
511.24 	(2) developmentally appropriate learning experiences, including training in creating 
511.25 	positive learning experiences, promoting cognitive development, promoting social and 
511.26 	emotional development, promoting physical development, promoting creative development; 
511.27 	and behavior guidance;
511.28 	(3) relationships with families, including training in building a positive, respectful 
511.29 	relationship with the child's family;
511.30 	(4) assessment, evaluation, and individualization, including training in observing, 
511.31 	recording, and assessing development; assessing and using information to plan; and assessing 
511.32 	and using information to enhance and maintain program quality;
512.1 	(5) historical and contemporary development of early childhood education, including 
512.2 	training in past and current practices in early childhood education and how current events 
512.3 	and issues affect children, families, and programs;
512.4 	(6) professionalism, including training in knowledge, skills, and abilities that promote 
512.5 	ongoing professional development; and
512.6 	(7) health, safety, and nutrition, including training in establishing healthy practices; 
512.7 	ensuring safety; and providing healthy nutrition.
512.8 	(b) A provider who is approved as a trainer through the Develop data system may count 
512.9 	up to two hours of training instruction toward the annual 16-hour training requirement in 
512.10 	paragraph (a). The provider may only count training instruction hours for the first instance 
512.11 	in which they deliver a particular content-specific training during each licensing year. Hours 
512.12 	counted as training instruction must be approved through the Develop data system with 
512.13 	attendance verified on the trainer's individual learning record and must be in Knowledge 
512.14 	and Competency Framework content area VII A (Establishing Healthy Practices) or B 
512.15 	(Ensuring Safety).
512.16 	(c) Substitutes and adult caregivers who provide care for 500 or fewer hours per year 
512.17 	must complete a minimum of one hour of training each calendar year, and the training must 
512.18 	include the requirements in subdivisions 3, 4, 5, 6, and 9.

512.19 	Sec. 11. Minnesota Statutes 2024, section 142C.06, is amended by adding a subdivision 
512.20 	to read:
512.21 		Subd. 4.Requirement to post conditional certification. Upon receipt of any order of 
512.22 	conditional certification issued by the commissioner under this section, and notwithstanding 
512.23 	a pending request for reconsideration of the order of conditional certification by the 
512.24 	certification holder, the certification holder shall post the order of conditional certification 
512.25 	in a place that is conspicuous to the people receiving services and all visitors to the facility 
512.26 	for the duration of the conditional certification. When the order of conditional certification 
512.27 	is accompanied by a maltreatment investigation memorandum prepared under chapter 260E, 
512.28 	the investigation memoranda must be posted with the order of conditional certification.

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

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

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

513.18 	Sec. 14. Minnesota Statutes 2024, section 142C.12, subdivision 6, is amended to read:
513.19 		Subd. 6.In-service training. (a) The certified center must ensure that the director and 
513.20 	all staff persons, including substitutes and unsupervised volunteers, are trained at least once 
513.21 	each calendar year on health and safety requirements in this section and sections 142C.10, 
513.22 	142C.11, and 142C.13.
513.23 	(b) The director and each staff person, not including substitutes, must complete at least 
513.24 	six hours of training each calendar year. Substitutes must complete at least two hours of 
513.25 	training each calendar year. Training required under paragraph (a) may be used toward the 
513.26 	hourly training requirements of this subdivision.

513.27 	Sec. 15. Minnesota Statutes 2024, section 245A.18, subdivision 1, is amended to read:
513.28 		Subdivision 1.Seat belt and child passenger restraint system use. All license holders 
513.29 	that transport children must comply with the requirements of section 142B.51, subdivision 
513.30 	1, and license holders that transport a child or children under eight nine years of age must 
513.31 	document training that fulfills the requirements in section 142B.51, subdivision 2.

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

514.1 	ARTICLE 21
514.2 	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES RECODIFICATION 
514.3 	CONFORMING CHANGES

514.4 	Section 1. Minnesota Statutes 2024, section 3.922, subdivision 1, is amended to read:
514.5 		Subdivision 1.Creation, membership.  The state Indian Affairs Council is created to 
514.6 	consist of the following members:
514.7 	(1) one member of each of the following federally recognized tribes, designated by the 
514.8 	elected tribal president or chairperson of the governing bodies of:
514.9 	the Fond du Lac Band;
514.10 	the Grand Portage Band;
514.11 	the Mille Lacs Band;
514.12 	the White Earth Band;
514.13 	the Bois Forte (Nett Lake) Band;
514.14 	the Leech Lake Band;
514.15 	the Red Lake Nation;
514.16 	the Upper Sioux Community;
514.17 	the Lower Sioux Community;
514.18 	the Shakopee Mdewakanton Sioux Community;
514.19 	the Prairie Island Mdewakanton Dakota Community;
514.20 	(2) a member of the governor's official staff designated by the governor;
514.21 	the commissioner of education;
514.22 	the commissioner of human services;
514.23 	the commissioner of natural resources;
514.24 	the commissioner of human rights;
514.25 	the commissioner of employment and economic development;
514.26 	the commissioner of corrections;
514.27 	the commissioner of the Minnesota Housing Finance Agency;
514.28 	the commissioner of Iron Range resources and rehabilitation;
515.1 	the commissioner of health;
515.2 	the commissioner of transportation;
515.3 	the commissioner of veterans affairs;
515.4 	the commissioner of administration;
515.5 	the commissioner of children, youth, and families;
515.6 	Each of the commissioners listed in this clause may designate a staff member to serve 
515.7 	on the council instead of the commissioner;
515.8 	(3) two members of the house of representatives, appointed by the speaker; and
515.9 	(4) two members of the senate, appointed by its Subcommittee on Committees.
515.10 	Members appointed to represent the house of representatives or the senate shall no longer 
515.11 	serve on the council when they are no longer members of the bodies which they represent 
515.12 	and their offices shall be vacant. A member who is a designee of a tribal president or 
515.13 	chairperson shall cease to be a member at the end of the term of the designating tribal 
515.14 	president or chairperson. Only members of the council designated under clause (1) shall 
515.15 	vote.

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

515.24 	Sec. 3. Minnesota Statutes 2024, section 13.46, subdivision 3, is amended to read:
515.25 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
515.26 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
515.27 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
515.28 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
515.29 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
515.30 	shall not be disclosed except:
515.31 	(1) pursuant to section 13.05;
516.1 	(2) pursuant to statute or valid court order;
516.2 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
516.3 	preparation of defense;
516.4 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
516.5 	state, or federal government, including a law enforcement officer or attorney in the 
516.6 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
516.7 	commissioner of human services or the commissioner of children, youth, and families 
516.8 	determines that disclosure may compromise a Department of Human Services or Department 
516.9 	of Children, Youth, and Families ongoing investigation; or
516.10 	(5) to provide notices required or permitted by statute.
516.11 	The data referred to in this subdivision shall be classified as public data upon submission 
516.12 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
516.13 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
516.14 	(b) Notwithstanding any other provision in law, the commissioner of human services or 
516.15 	the commissioner of children, youth, and families shall provide all active and inactive 
516.16 	investigative data, including the name of the reporter of alleged maltreatment under section 
516.17 	626.557 or chapter 260E, to the ombudsman for mental health and developmental disabilities 
516.18 	upon the request of the ombudsman.
516.19 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
516.20 	by the commissioner of human services or the commissioner of children, youth, and families
516.21 	of possible overpayments of public funds to a service provider or recipient may be disclosed 
516.22 	if the commissioner determines that it will not compromise the investigation.

516.23 	Sec. 4. Minnesota Statutes 2024, section 13.46, subdivision 4, is amended to read:
516.24 		Subd. 4.Licensing data. (a) As used in this subdivision:
516.25 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
516.26 	welfare system pertaining to persons licensed or registered or who apply for licensure or 
516.27 	registration or who formerly were licensed or registered under the authority of the 
516.28 	commissioner of human services or the commissioner of children, youth, and families;
516.29 	(2) "client" means a person who is receiving services from a licensee or from an applicant 
516.30 	for licensure; and
517.1 	(3) "personal and personal financial data" are Social Security numbers, identity of and 
517.2 	letters of reference, insurance information, reports from the Bureau of Criminal 
517.3 	Apprehension, health examination reports, and social/home studies.
517.4 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license 
517.5 	holders, certification holders, and former licensees are public: name, address, telephone 
517.6 	number of licensees, email addresses except for family child foster care, date of receipt of 
517.7 	a completed application, dates of licensure, licensed capacity, type of client preferred, 
517.8 	variances granted, record of training and education in child care and child development, 
517.9 	type of dwelling, name and relationship of other family members, previous license history, 
517.10 	class of license, the existence and status of complaints, and the number of serious injuries 
517.11 	to or deaths of individuals in the licensed program as reported to the commissioner of human 
517.12 	services; the commissioner of children, youth, and families; the local social services agency; 
517.13 	or any other county welfare agency. For purposes of this clause, a serious injury is one that 
517.14 	is treated by a physician.
517.15 	(ii) Except as provided in item (v), when a correction order, an order to forfeit a fine, 
517.16 	an order of license suspension, an order of temporary immediate suspension, an order of 
517.17 	license revocation, an order of license denial, or an order of conditional license has been 
517.18 	issued, or a complaint is resolved, the following data on current and former licensees and 
517.19 	applicants are public: the general nature of the complaint or allegations leading to the 
517.20 	temporary immediate suspension; the substance and investigative findings of the licensing 
517.21 	or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence 
517.22 	of settlement negotiations; the record of informal resolution of a licensing violation; orders 
517.23 	of hearing; findings of fact; conclusions of law; specifications of the final correction order, 
517.24 	fine, suspension, temporary immediate suspension, revocation, denial, or conditional license 
517.25 	contained in the record of licensing action; whether a fine has been paid; and the status of 
517.26 	any appeal of these actions.
517.27 	(iii) When a license denial under section 142A.15 or 245A.05 or a sanction under section 
517.28 	142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling 
517.29 	individual is responsible for maltreatment under section 626.557 or chapter 260E, the identity 
517.30 	of the applicant, license holder, or controlling individual as the individual responsible for 
517.31 	maltreatment is public data at the time of the issuance of the license denial or sanction.
517.32 	(iv) When a license denial under section 142A.15 or 245A.05 or a sanction under section 
517.33 	142B.18 or 245A.07 is based on a determination that a license holder, applicant, or controlling 
517.34 	individual is disqualified under chapter 245C, the identity of the license holder, applicant, 
517.35 	or controlling individual as the disqualified individual is public data at the time of the 
518.1 	issuance of the licensing sanction or denial. If the applicant, license holder, or controlling 
518.2 	individual requests reconsideration of the disqualification and the disqualification is affirmed, 
518.3 	the reason for the disqualification and the reason to not set aside the disqualification are 
518.4 	private data.
518.5 	(v) A correction order or fine issued to a child care provider for a licensing violation is 
518.6 	private data on individuals under section 13.02, subdivision 12, or nonpublic data under 
518.7 	section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
518.8 	(2) For applicants who withdraw their application prior to licensure or denial of a license, 
518.9 	the following data are public: the name of the applicant, the city and county in which the 
518.10 	applicant was seeking licensure, the dates of the commissioner's receipt of the initial 
518.11 	application and completed application, the type of license sought, and the date of withdrawal 
518.12 	of the application.
518.13 	(3) For applicants who are denied a license, the following data are public: the name and 
518.14 	address of the applicant, the city and county in which the applicant was seeking licensure, 
518.15 	the dates of the commissioner's receipt of the initial application and completed application, 
518.16 	the type of license sought, the date of denial of the application, the nature of the basis for 
518.17 	the denial, the existence of settlement negotiations, the record of informal resolution of a 
518.18 	denial, orders of hearings, findings of fact, conclusions of law, specifications of the final 
518.19 	order of denial, and the status of any appeal of the denial.
518.20 	(4) When maltreatment is substantiated under section 626.557 or chapter 260E and the 
518.21 	victim and the substantiated perpetrator are affiliated with a program licensed under chapter 
518.22 	142B or 245A; the commissioner of human services; commissioner of children, youth, and 
518.23 	families; local social services agency; or county welfare agency may inform the license 
518.24 	holder where the maltreatment occurred of the identity of the substantiated perpetrator and 
518.25 	the victim.
518.26 	(5) Notwithstanding clause (1), for child foster care, only the name of the license holder 
518.27 	and the status of the license are public if the county attorney has requested that data otherwise 
518.28 	classified as public data under clause (1) be considered private data based on the best interests 
518.29 	of a child in placement in a licensed program.
518.30 	(c) The following are private data on individuals under section 13.02, subdivision 12, 
518.31 	or nonpublic data under section 13.02, subdivision 9: personal and personal financial data 
518.32 	on family day care program and family foster care program applicants and licensees and 
518.33 	their family members who provide services under the license.
519.1 	(d) The following are private data on individuals: the identity of persons who have made 
519.2 	reports concerning licensees or applicants that appear in inactive investigative data, and the 
519.3 	records of clients or employees of the licensee or applicant for licensure whose records are 
519.4 	received by the licensing agency for purposes of review or in anticipation of a contested 
519.5 	matter. The names of reporters of complaints or alleged violations of licensing standards 
519.6 	under chapters 142B, 245A, 245B, 245C, and 245D, and applicable rules and alleged 
519.7 	maltreatment under section 626.557 and chapter 260E, are confidential data and may be 
519.8 	disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557, 
519.9 	subdivision 12b.
519.10 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this 
519.11 	subdivision become public data if submitted to a court or administrative law judge as part 
519.12 	of a disciplinary proceeding in which there is a public hearing concerning a license which 
519.13 	has been suspended, immediately suspended, revoked, or denied.
519.14 	(f) Data generated in the course of licensing investigations that relate to an alleged 
519.15 	violation of law are investigative data under subdivision 3.
519.16 	(g) Data that are not public data collected, maintained, used, or disseminated under this 
519.17 	subdivision that relate to or are derived from a report as defined in section 260E.03, or 
519.18 	626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35, 
519.19 	subdivision 6, and 626.557, subdivision 12b.
519.20 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
519.21 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
519.22 	defined in section 626.557 or chapter 260E may be exchanged with the Department of 
519.23 	Health for purposes of completing background studies pursuant to section 144.057 and with 
519.24 	the Department of Corrections for purposes of completing background studies pursuant to 
519.25 	section 241.021.
519.26 	(i) Data on individuals collected according to licensing activities under chapters 142B, 
519.27 	245A, and 245C, and data on individuals collected by the commissioner of human services
519.28 	or the commissioner of children, youth, and families according to investigations under 
519.29 	section 626.557 and chapters 142B, 245A, 245B, 245C, 245D, and 260E may be shared 
519.30 	with the Department of Human Rights, the Department of Health, the Department of 
519.31 	Corrections, the ombudsman for mental health and developmental disabilities, and the 
519.32 	individual's professional regulatory board and between the commissioners of human services 
519.33 	and children, youth, and families when there is reason to believe that laws or standards 
519.34 	under the jurisdiction of those agencies may have been violated or the information may 
520.1 	otherwise be relevant to the board's regulatory jurisdiction. Background study data on an 
520.2 	individual who is the subject of a background study under chapter 245C for a licensed 
520.3 	service for which the commissioner of human services or children, youth, and families is 
520.4 	the license holder may be shared with the commissioner and the commissioner's delegate 
520.5 	by the licensing division. Unless otherwise specified in this chapter, the identity of a reporter 
520.6 	of alleged maltreatment or licensing violations may not be disclosed.
520.7 	(j) In addition to the notice of determinations required under sections 260E.24, 
520.8 	subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the 
520.9 	commissioner of human services; commissioner of children, youth, and families; or the 
520.10 	local social services agency has determined that an individual is a substantiated perpetrator 
520.11 	of maltreatment of a child based on sexual abuse, as defined in section 260E.03, and the 
520.12 	commissioner of human services; commissioner of children, youth, and families; or local 
520.13 	social services agency knows that the individual is a person responsible for a child's care 
520.14 	in another facility, the commissioner of human services; commissioner of children, youth, 
520.15 	and families; or local social services agency shall notify the head of that facility of this 
520.16 	determination. The notification must include an explanation of the individual's available 
520.17 	appeal rights and the status of any appeal. If a notice is given under this paragraph, the 
520.18 	government entity making the notification shall provide a copy of the notice to the individual 
520.19 	who is the subject of the notice.
520.20 	(k) All not public data collected, maintained, used, or disseminated under this subdivision 
520.21 	and subdivision 3 may be exchanged between the Department of Human Services, Licensing 
520.22 	Division, and the Department of Corrections for purposes of regulating services for which 
520.23 	the Department of Human Services and the Department of Corrections have regulatory 
520.24 	authority.

520.25 	Sec. 5. Minnesota Statutes 2024, section 13.46, subdivision 9, is amended to read:
520.26 		Subd. 9.Fraud. In cases of suspected fraud, in which access to mental health data 
520.27 	maintained by public or private community mental health centers or mental health divisions 
520.28 	of counties and other providers under contract to deliver mental health services is necessary 
520.29 	to a proper investigation, the county board or the appropriate prosecutorial authority shall 
520.30 	refer the matter to the commissioner of human services or the commissioner of children, 
520.31 	youth, and families. The commissioner and agents of the commissioner, while maintaining 
520.32 	the privacy rights of individuals and families, shall have access to mental health data to 
520.33 	conduct an investigation. Upon deeming it appropriate as a result of the investigation, the 
520.34 	commissioner shall refer the matter to the appropriate legal authorities and may disseminate 
521.1 	to those authorities whatever mental health data are necessary to properly prosecute the 
521.2 	case.

521.3 	Sec. 6. Minnesota Statutes 2024, section 13.46, subdivision 10, is amended to read:
521.4 		Subd. 10.Responsible authority. (a) Notwithstanding any other provision of this chapter 
521.5 	to the contrary, the responsible authority for each component of the welfare system listed 
521.6 	in subdivision 1, clause (c), shall be as follows:
521.7 	(1) the responsible authority for the Department of Human Services is the commissioner 
521.8 	of human services;
521.9 	(2) the responsible authority of a county welfare agency is the director of the county 
521.10 	welfare agency;
521.11 	(3) the responsible authority for a local social services agency, human services board, 
521.12 	or community mental health center board is the chair of the board;
521.13 	(4) the responsible authority of any person, agency, institution, organization, or other 
521.14 	entity under contract to any of the components of the welfare system listed in subdivision 
521.15 	1, clause (c), is the person specified in the contract;
521.16 	(5) the responsible authority of the public authority for child support enforcement is the 
521.17 	head of the public authority for child support enforcement;
521.18 	(6) the responsible authority for county veteran services is the county veterans service 
521.19 	officer pursuant to section 197.603, subdivision 2; and
521.20 	(7) the responsible authority for Direct Care and Treatment is the chief executive officer 
521.21 	of Direct Care and Treatment.; and
521.22 	(8) the responsible authority for the Department of Children, Youth, and Families is the 
521.23 	commissioner of children, youth, and families.
521.24 	(b) A responsible authority shall allow another responsible authority in the welfare 
521.25 	system access to data classified as not public data when access is necessary for the 
521.26 	administration and management of programs, or as authorized or required by statute or 
521.27 	federal law.

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

522.3 	Sec. 8. Minnesota Statutes 2024, section 14.03, subdivision 3, is amended to read:
522.4 		Subd. 3.Rulemaking procedures. (a) The definition of a rule in section 14.02, 
522.5 	subdivision 4, does not include:
522.6 	(1) rules concerning only the internal management of the agency or other agencies that 
522.7 	do not directly affect the rights of or procedures available to the public;
522.8 	(2) an application deadline on a form; and the remainder of a form and instructions for 
522.9 	use of the form to the extent that they do not impose substantive requirements other than 
522.10 	requirements contained in statute or rule;
522.11 	(3) the curriculum adopted by an agency to implement a statute or rule permitting or 
522.12 	mandating minimum educational requirements for persons regulated by an agency, provided 
522.13 	the topic areas to be covered by the minimum educational requirements are specified in 
522.14 	statute or rule;
522.15 	(4) procedures for sharing data among government agencies, provided these procedures 
522.16 	are consistent with chapter 13 and other law governing data practices.
522.17 	(b) The definition of a rule in section 14.02, subdivision 4, does not include:
522.18 	(1) rules of the commissioner of corrections relating to the release, placement, term, and 
522.19 	supervision of inmates serving a supervised release or conditional release term, the internal 
522.20 	management of institutions under the commissioner's control, and rules adopted under 
522.21 	section 609.105 governing the inmates of those institutions;
522.22 	(2) rules relating to weight limitations on the use of highways when the substance of the 
522.23 	rules is indicated to the public by means of signs;
522.24 	(3) opinions of the attorney general;
522.25 	(4) the data element dictionary and the annual data acquisition calendar of the Department 
522.26 	of Education to the extent provided by section 125B.07;
522.27 	(5) the occupational safety and health standards provided in section 182.655;
522.28 	(6) revenue notices and tax information bulletins of the commissioner of revenue;
522.29 	(7) uniform conveyancing forms adopted by the commissioner of commerce under 
522.30 	section 507.09;
523.1 	(8) standards adopted by the Electronic Real Estate Recording Commission established 
523.2 	under section 507.0945; or
523.3 	(9) the interpretive guidelines developed by the commissioner of human services to the 
523.4 	extent provided in chapter 245A.; or
523.5 	(10) the interpretive guidelines developed by the commissioner of children, youth, and 
523.6 	families to the extent provided in chapter 142B.

523.7 	Sec. 9. Minnesota Statutes 2024, section 116L.881, is amended to read:
523.8 	116L.881 INDIAN TRIBE PLANS.
523.9 	(a) The commissioner, in consultation with the commissioner commissioners of human 
523.10 	services and children, youth, and families, shall review and comment on Indian tribe plans 
523.11 	submitted to the commissioner for provision of employment and training services. Beginning 
523.12 	April 15, 1991, and by April 15 of each second year thereafter, the Indian tribe shall prepare 
523.13 	and submit to the commissioner a plan that covers the next two state fiscal years. Beginning 
523.14 	April 15, 1992, and by April 15 of each second year thereafter, the Indian tribe shall prepare 
523.15 	and submit to the commissioner an interim year plan update that deals with performance 
523.16 	during the past state fiscal year and that covers changes anticipated for the second year of 
523.17 	the biennium. The commissioner shall notify the Indian tribe of approval or disapproval of 
523.18 	the plans and updates for existing programs within 60 days of submission.
523.19 	(b) A plan for a new tribal program must be submitted at least 45 days before the program 
523.20 	is to commence. The commissioner shall approve or disapprove the plan for new programs 
523.21 	within 30 days of receipt.
523.22 	(c) The tribal plan and update must contain information that has been established by the 
523.23 	commissioner and the commissioner commissioners of human services and children, youth, 
523.24 	and families for the tribal employment and training service program.
523.25 	(d) The commissioner may recommend to the commissioner commissioners of human 
523.26 	services and children, youth, and families withholding the distribution of employment and 
523.27 	training money from a tribe whose plan or update is disapproved by the commissioner or a 
523.28 	tribe that does not submit a plan or update by the date established in this section.

524.1 	Sec. 10. Minnesota Statutes 2024, section 125A.15, is amended to read:
524.2 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
524.3 	The responsibility for special instruction and services for a child with a disability 
524.4 	temporarily placed in another district for care and treatment shall be determined in the 
524.5 	following manner:
524.6 	(a) The district of residence of a child shall be the district in which the child's parent 
524.7 	resides, if living, or the child's guardian. If there is a dispute between school districts 
524.8 	regarding residency, the district of residence is the district designated by the commissioner.
524.9 	(b) If a district other than the resident district places a pupil for care and treatment, the 
524.10 	district placing the pupil must notify and give the resident district an opportunity to participate 
524.11 	in the placement decision. When an immediate emergency placement of a pupil is necessary 
524.12 	and time constraints foreclose a resident district from participating in the emergency 
524.13 	placement decision, the district in which the pupil is temporarily placed must notify the 
524.14 	resident district of the emergency placement within 15 days. The resident district has up to 
524.15 	five business days after receiving notice of the emergency placement to request an 
524.16 	opportunity to participate in the placement decision, which the placing district must then 
524.17 	provide.
524.18 	(c) When a child is temporarily placed for care and treatment in a day program located 
524.19 	in another district and the child continues to live within the district of residence during the 
524.20 	care and treatment, the district of residence is responsible for providing transportation to 
524.21 	and from the care and treatment program and an appropriate educational program for the 
524.22 	child. The resident district may establish reasonable restrictions on transportation, except 
524.23 	if a Minnesota court or agency orders the child placed at a day care and treatment program 
524.24 	and the resident district receives a copy of the order, then the resident district must provide 
524.25 	transportation to and from the program unless the court or agency orders otherwise. 
524.26 	Transportation shall only be provided by the resident district during regular operating hours 
524.27 	of the resident district. The resident district may provide the educational program at a school 
524.28 	within the district of residence, at the child's residence, or in the district in which the day 
524.29 	treatment center is located by paying tuition to that district. If a child's district of residence, 
524.30 	district of open enrollment under section 124D.03, or charter school of enrollment under 
524.31 	section 124E.11 is authorized to provide online learning instruction under state statutes, the 
524.32 	child's district of residence may utilize that online learning program in fulfilling its 
524.33 	educational program responsibility under this section if the child, or the child's parent or 
524.34 	guardian for a pupil under the age of 18, agrees to that form of instruction.
525.1 	(d) When a child is temporarily placed in a residential program for care and treatment, 
525.2 	the nonresident district in which the child is placed is responsible for providing an appropriate 
525.3 	educational program for the child and necessary transportation while the child is attending 
525.4 	the educational program; and must bill the district of the child's residence for the actual cost 
525.5 	of providing the program, as outlined in section 125A.11, except as provided in paragraph 
525.6 	(e). However, the board, lodging, and treatment costs incurred in behalf of a child with a 
525.7 	disability placed outside of the school district of residence by the commissioner of human 
525.8 	services; the commissioner of children, youth, and families; or the commissioner of 
525.9 	corrections or their agents, for reasons other than providing for the child's special educational 
525.10 	needs must not become the responsibility of either the district providing the instruction or 
525.11 	the district of the child's residence. For the purposes of this section, the state correctional 
525.12 	facilities operated on a fee-for-service basis are considered to be residential programs for 
525.13 	care and treatment. If a child's district of residence, district of open enrollment under section 
525.14 	124D.03, or charter school of enrollment under section 124E.11 is authorized to provide 
525.15 	online learning instruction under state statutes, the nonresident district may utilize that 
525.16 	online learning program in fulfilling its educational program responsibility under this section 
525.17 	if the child, or the child's parent or guardian for a pupil under the age of 18, agrees to that 
525.18 	form of instruction.
525.19 	(e) A privately owned and operated residential facility may enter into a contract to obtain 
525.20 	appropriate educational programs for special education children and services with a joint 
525.21 	powers entity. The entity with which the private facility contracts for special education 
525.22 	services shall be the district responsible for providing students placed in that facility an 
525.23 	appropriate educational program in place of the district in which the facility is located. If a 
525.24 	privately owned and operated residential facility does not enter into a contract under this 
525.25 	paragraph, then paragraph (d) applies.
525.26 	(f) The district of residence shall pay tuition and other program costs, not including 
525.27 	transportation costs, to the district providing the instruction and services. The district of 
525.28 	residence may claim general education aid for the child as provided by law. Transportation 
525.29 	costs must be paid by the district responsible for providing the transportation and the state 
525.30 	must pay transportation aid to that district.

525.31 	Sec. 11. Minnesota Statutes 2024, section 125A.744, subdivision 2, is amended to read:
525.32 		Subd. 2.Statewide data management system. The commissioner of education, in 
525.33 	cooperation with the commissioner commissioners of human services and children, youth, 
525.34 	and families, shall develop a statewide data management system using the educational data 
526.1 	reporting system or other existing data management system for school districts and 
526.2 	cooperative units to use to maximize medical assistance reimbursement for health and 
526.3 	health-related services provided under individualized education programs and individual 
526.4 	family service plans. The system must be appropriately integrated with state and local 
526.5 	existing and developing human services and education data systems. The statewide data 
526.6 	management system must enable school district and cooperative unit staff to:
526.7 	(1) establish medical assistance billing systems or improve existing systems;
526.8 	(2) understand the appropriate medical assistance billing codes for services provided 
526.9 	under individualized education programs and individual family service plans;
526.10 	(3) comply with the Individuals with Disabilities Education Act, Public Law 105-17;
526.11 	(4) contract with billing agents; and
526.12 	(5) carry out other activities necessary to maximize medical assistance reimbursement.

526.13 	Sec. 12. Minnesota Statutes 2024, section 127A.11, is amended to read:
526.14 	127A.11 MONITOR MEDICAL ASSISTANCE SERVICES FOR DISABLED 
526.15 	STUDENTS.
526.16 	The commissioner of education, in cooperation with the commissioner commissioners
526.17 	of human services and children, youth, and families, shall monitor the costs of health-related, 
526.18 	special education services provided by public schools.

526.19 	Sec. 13. Minnesota Statutes 2024, section 127A.70, subdivision 2, is amended to read:
526.20 		Subd. 2.Powers and duties; report. (a) The partnership shall develop recommendations 
526.21 	to the governor and the legislature designed to maximize the achievement of all P-20 students 
526.22 	while promoting the efficient use of state resources, thereby helping the state realize the 
526.23 	maximum value for its investment. These recommendations may include, but are not limited 
526.24 	to, strategies, policies, or other actions focused on:
526.25 	(1) improving the quality of and access to education at all points from preschool through 
526.26 	graduate education;
526.27 	(2) improving preparation for, and transitions to, postsecondary education and work;
526.28 	(3) ensuring educator quality by creating rigorous standards for teacher recruitment, 
526.29 	teacher preparation, induction and mentoring of beginning teachers, and continuous 
526.30 	professional development for career teachers; and
527.1 	(4) realigning the governance and administrative structures of early education, 
527.2 	kindergarten through grade 12, and postsecondary systems in Minnesota.
527.3 	(b) Under the direction of the P-20 Education Partnership Statewide Longitudinal 
527.4 	Education Data System Governance Committee, the Office of Higher Education and the 
527.5 	Departments of Education; Children, Youth, and Families; and Employment and Economic 
527.6 	Development shall improve and expand the Statewide Longitudinal Education Data System 
527.7 	(SLEDS) and the Early Childhood Longitudinal Data System (ECLDS) to provide 
527.8 	policymakers, education and workforce leaders, researchers, and members of the public 
527.9 	with data, research, and reports to:
527.10 	(1) expand reporting on students' educational outcomes for diverse student populations 
527.11 	including at-risk students, children with disabilities, English learners, and gifted students, 
527.12 	among others, and include formative and summative evaluations based on multiple measures 
527.13 	of child well-being, early childhood development, and student progress toward career and 
527.14 	college readiness;
527.15 	(2) evaluate the effectiveness of early care, educational, and workforce programs; and
527.16 	(3) evaluate the relationships among early care, education, and workforce outcomes, 
527.17 	consistent with section 124D.49.
527.18 	To the extent possible under federal and state law, research and reports should be 
527.19 	accessible to the public on the Internet, and disaggregated by demographic characteristics, 
527.20 	organization or organization characteristics, and geography.
527.21 	It is the intent of the legislature that the Statewide Longitudinal Education Data System 
527.22 	and the Early Childhood Longitudinal Data System inform public policy and 
527.23 	decision-making. The SLEDS governance committee and ECLDS governance committee, 
527.24 	with assistance from staff of the Office of Higher Education,; the Department of Education,; 
527.25 	the Department of Children, Youth, and Families; and the Department of Employment and 
527.26 	Economic Development, shall respond to legislative committee and agency requests on 
527.27 	topics utilizing data made available through the Statewide Longitudinal Education Data 
527.28 	System and the Early Childhood Longitudinal Data System as resources permit. Any analysis 
527.29 	of or report on the data must contain only summary data.
527.30 	(c) By January 15 of each year, the partnership shall submit a report to the governor and 
527.31 	to the chairs and ranking minority members of the legislative committees and divisions with 
527.32 	jurisdiction over P-20 education policy and finance that summarizes the partnership's progress 
527.33 	in meeting its goals and identifies the need for any draft legislation when necessary to further 
528.1 	the goals of the partnership to maximize student achievement while promoting efficient use 
528.2 	of resources.

528.3 	Sec. 14. Minnesota Statutes 2024, section 142A.607, subdivision 14, is amended to read:
528.4 		Subd. 14.Notice for caregiver. (a) The agency as defined in subdivision 7 or 12 that 
528.5 	is responsible for completing the initial assessment or reassessment must provide the child's 
528.6 	caregiver with written notice of the initial assessment or reassessment.
528.7 	(b) Initial assessment notices must be sent within 15 days of completion of the initial 
528.8 	assessment and must minimally include the following:
528.9 	(1) a summary of the child's completed individual assessment used to determine the 
528.10 	initial rating;
528.11 	(2) statement of rating and benefit level;
528.12 	(3) statement of the circumstances under which the agency must reassess the child;
528.13 	(4) procedure to seek reassessment;
528.14 	(5) notice that the caregiver has the right to a fair hearing review of the assessment and 
528.15 	how to request a fair hearing, consistent with section sections 142A.20 and256.045, 
528.16 	subdivision 3; and
528.17 	(6) the name, telephone number, and email, if available, of a contact person at the agency 
528.18 	completing the assessment.
528.19 	(c) Reassessment notices must be sent within 15 days after the completion of the 
528.20 	reassessment and must minimally include the following:
528.21 	(1) a summary of the child's individual assessment used to determine the new rating;
528.22 	(2) any change in rating and its effective date;
528.23 	(3) procedure to seek reassessment;
528.24 	(4) notice that if a change in rating results in a reduction of benefits, the caregiver has 
528.25 	the right to a fair hearing review of the assessment and how to request a fair hearing 
528.26 	consistent with section sections 142A.20 and256.045, subdivision 3;
528.27 	(5) notice that a caregiver who requests a fair hearing of the reassessed rating within ten 
528.28 	days may continue at the current rate pending the hearing, but the agency may recover any 
528.29 	overpayment; and
529.1 	(6) name, telephone number, and email, if available, of a contact person at the agency 
529.2 	completing the reassessment.
529.3 	(d) Notice is not required for special assessments since the notice is part of the Northstar 
529.4 	kinship assistance or adoption assistance negotiated agreement completed according to 
529.5 	section 142A.608.

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

529.18 	Sec. 16. Minnesota Statutes 2024, section 142B.41, subdivision 9, is amended to read:
529.19 		Subd. 9.Swimming pools; family day care and group family day care providers. (a) 
529.20 	This subdivision governs swimming pools located at family day care or group family day 
529.21 	care homes licensed under Minnesota Rules, chapter 9502. This subdivision does not apply 
529.22 	to portable wading pools or whirlpools located at family day care or group family day care 
529.23 	homes licensed under Minnesota Rules, chapter 9502. For a provider to be eligible to allow 
529.24 	a child cared for at the family day care or group family day care home to use the swimming 
529.25 	pool located at the home, the provider must not have had a licensing sanction under section 
529.26 	142B.18 or 245A.07 or a correction order or conditional license under section 142B.16 or 
529.27 	245A.06 relating to the supervision or health and safety of children during the prior 24 
529.28 	months, and must satisfy the following requirements:
529.29 	(1) notify the county agency before initial use of the swimming pool and annually, 
529.30 	thereafter;
530.1 	(2) obtain written consent from a child's parent or legal guardian allowing the child to 
530.2 	use the swimming pool and renew the parent or legal guardian's written consent at least 
530.3 	annually. The written consent must include a statement that the parent or legal guardian has 
530.4 	received and read materials provided by the Department of Health to the Department of 
530.5 	Children, Youth, and Families for distribution to all family day care or group family day 
530.6 	care homes and the general public on the human services Internet website related to the risk 
530.7 	of disease transmission as well as other health risks associated with swimming pools. The 
530.8 	written consent must also include a statement that the Department of Health, Department 
530.9 	of Children, Youth, and Families, and county agency will not monitor or inspect the provider's 
530.10 	swimming pool to ensure compliance with the requirements in this subdivision;
530.11 	(3) enter into a written contract with a child's parent or legal guardian and renew the 
530.12 	written contract annually. The terms of the written contract must specify that the provider 
530.13 	agrees to perform all of the requirements in this subdivision;
530.14 	(4) attend and successfully complete a swimming pool operator training course once 
530.15 	every five years. Acceptable training courses are:
530.16 	(i) the National Swimming Pool Foundation Certified Pool Operator course;
530.17 	(ii) the National Spa and Pool Institute Tech I and Tech II courses (both required); or
530.18 	(iii) the National Recreation and Park Association Aquatic Facility Operator course;
530.19 	(5) require a caregiver trained in first aid and adult and child cardiopulmonary 
530.20 	resuscitation to supervise and be present at the swimming pool with any children in the 
530.21 	pool;
530.22 	(6) toilet all potty-trained children before they enter the swimming pool;
530.23 	(7) require all children who are not potty-trained to wear swim diapers while in the 
530.24 	swimming pool;
530.25 	(8) if fecal material enters the swimming pool water, add three times the normal shock 
530.26 	treatment to the pool water to raise the chlorine level to at least 20 parts per million, and 
530.27 	close the pool to swimming for the 24 hours following the entrance of fecal material into 
530.28 	the water or until the water pH and disinfectant concentration levels have returned to the 
530.29 	standards specified in clause (10), whichever is later;
530.30 	(9) prevent any person from entering the swimming pool who has an open wound or 
530.31 	any person who has or is suspected of having a communicable disease;
531.1 	(10) maintain the swimming pool water at a pH of not less than 7.2 and not more than 
531.2 	8.0, maintain the disinfectant concentration between two and five parts per million for 
531.3 	chlorine or between 2.3 and 4.5 parts per million for bromine, and maintain a daily record 
531.4 	of the swimming pool's operation with pH and disinfectant concentration readings on days 
531.5 	when children cared for at the family day care or group family day care home are present;
531.6 	(11) have a disinfectant feeder or feeders;
531.7 	(12) have a recirculation system that will clarify and disinfect the swimming pool volume 
531.8 	of water in ten hours or less;
531.9 	(13) maintain the swimming pool's water clarity so that an object on the pool floor at 
531.10 	the pool's deepest point is easily visible;
531.11 	(14) comply with the provisions of the Abigail Taylor Pool Safety Act in section 
531.12 	144.1222, subdivisions 1c and 1d;
531.13 	(15) have in place and enforce written safety rules and swimming pool policies;
531.14 	(16) have in place at all times a safety rope that divides the shallow and deep portions 
531.15 	of the swimming pool;
531.16 	(17) satisfy any existing local ordinances regarding swimming pool installation, decks, 
531.17 	and fencing;
531.18 	(18) maintain a water temperature of not more than 104 degrees Fahrenheit and not less 
531.19 	than 70 degrees Fahrenheit; and
531.20 	(19) for lifesaving equipment, have a United States Coast Guard-approved life ring 
531.21 	attached to a rope, an exit ladder, and a shepherd's hook available at all times to the caregiver 
531.22 	supervising the swimming pool.
531.23 	The requirements of clauses (5), (16), and (18) only apply at times when children cared 
531.24 	for at the family day care or group family day care home are present.
531.25 	(b) A violation of paragraph (a), clauses (1) to (3), is grounds for a sanction under section 
531.26 	142B.18 or a correction order or conditional license under section 142B.16.
531.27 	(c) If a provider under this subdivision receives a licensing sanction under section 
531.28 	142B.18 or 245A.07 or a correction order or a conditional license under section 142B.16
531.29 	or 245A.06 relating to the supervision or health and safety of children, the provider is 
531.30 	prohibited from allowing a child cared for at the family day care or group family day care 
531.31 	home to continue to use the swimming pool located at the home.

532.1 	Sec. 17. Minnesota Statutes 2024, section 144.061, is amended to read:
532.2 	144.061 EARLY DENTAL PREVENTION INITIATIVE.
532.3 	(a) The commissioner of health, in collaboration with the commissioner commissioners
532.4 	of human services and children, youth, and families, shall implement a statewide initiative 
532.5 	to increase awareness among communities of color and recent immigrants on the importance 
532.6 	of early preventive dental intervention for infants and toddlers before and after primary 
532.7 	teeth appear.
532.8 	(b) The commissioner shall develop educational materials and information for expectant 
532.9 	and new parents within the targeted communities that include the importance of early dental 
532.10 	care to prevent early cavities, including proper cleaning techniques and feeding habits, 
532.11 	before and after primary teeth appear.
532.12 	(c) The commissioner shall develop a distribution plan to ensure that the materials are 
532.13 	distributed to expectant and new parents within the targeted communities, including, but 
532.14 	not limited to, making the materials available to health care providers, community clinics, 
532.15 	WIC sites, and other relevant sites within the targeted communities.
532.16 	(d) In developing these materials and distribution plan, the commissioner shall work 
532.17 	collaboratively with members of the targeted communities, dental providers, pediatricians, 
532.18 	child care providers, and home visiting nurses.
532.19 	(e) The commissioner shall, with input from stakeholders listed in paragraph (d), develop 
532.20 	and pilot incentives to encourage early dental care within one year of an infant's teeth 
532.21 	erupting.

532.22 	Sec. 18. Minnesota Statutes 2024, section 144.225, subdivision 2a, is amended to read:
532.23 		Subd. 2a.Health data associated with birth registration. (a) Information from which 
532.24 	an identification of risk for disease, disability, or developmental delay in a mother or child 
532.25 	can be made, that is collected in conjunction with birth registration or fetal death reporting, 
532.26 	is private data as defined in section 13.02, subdivision 12.
532.27 	(b) The commissioner may disclose to a tribal health department or community health 
532.28 	board, as defined in section 145A.02, subdivision 5, health data associated with birth 
532.29 	registration which identifies a mother or child at high risk for serious disease, disability, or 
532.30 	developmental delay in order to assure access to appropriate health, social, or educational 
532.31 	services.
533.1 	(c) Notwithstanding the designation of the private data, the commissioner of human 
533.2 	services shall have access to health data associated with birth registration for:
533.3 	(1) purposes of administering medical assistance and the MinnesotaCare program; and
533.4 	(2) for other public health purposes as determined by the commissioner of health.
533.5 	(d) Notwithstanding the designation of the private data, the commissioner of children, 
533.6 	youth, and families shall have access to health data associated with birth registration for 
533.7 	other public health purposes as determined by the commissioner of health.

533.8 	Sec. 19. Minnesota Statutes 2024, section 145.895, is amended to read:
533.9 	145.895 DEPARTMENT OF HUMAN SERVICES.
533.10 	The commissioner of human services shall cooperate with the commissioner
533.11 	commissioners of health and children, youth, and families in identifying eligible individuals. 
533.12 	The commissioner of human services shall provide a procedure for the notification of 
533.13 	pregnant or lactating women, infants and children receiving any form of public assistance 
533.14 	of eligibility for benefits under this program.

533.15 	Sec. 20. Minnesota Statutes 2024, section 145.901, subdivision 2, is amended to read:
533.16 		Subd. 2.Access to data. (a) The commissioner of health has access to medical data as 
533.17 	defined in section 13.384, subdivision 1, paragraph (b), medical examiner data as defined 
533.18 	in section 13.83, subdivision 1, and health records created, maintained, or stored by providers 
533.19 	as defined in section 144.291, subdivision 2, paragraph (c), without the consent of the subject 
533.20 	of the data, and without the consent of the parent, spouse, other guardian, or legal 
533.21 	representative of the subject of the data, when the subject of the data is a woman who died 
533.22 	during a pregnancy or within 12 months of a fetal death, a live birth, or other termination 
533.23 	of a pregnancy.
533.24 	The commissioner has access only to medical data and health records related to deaths 
533.25 	that occur on or after July 1, 2000, including the names of the providers, clinics, or other 
533.26 	health services such as family home visiting programs; the women, infants, and children 
533.27 	(WIC) program; prescription monitoring programs; and behavioral health services, where 
533.28 	care was received before, during, or related to the pregnancy or death. The commissioner 
533.29 	has access to records maintained by a medical examiner, a coroner, or hospitals or to hospital 
533.30 	discharge data, for the purpose of providing the name and location of any pre-pregnancy, 
533.31 	prenatal, or other care received by the subject of the data up to one year after the end of the 
533.32 	pregnancy.
534.1 	(b) The provider or responsible authority that creates, maintains, or stores the data shall 
534.2 	furnish the data upon the request of the commissioner. The provider or responsible authority 
534.3 	may charge a fee for providing the data, not to exceed the actual cost of retrieving and 
534.4 	duplicating the data.
534.5 	(c) The commissioner shall make a good faith reasonable effort to notify the parent, 
534.6 	spouse, other guardian, or legal representative of the subject of the data before collecting 
534.7 	data on the subject. For purposes of this paragraph, "reasonable effort" means one notice 
534.8 	is sent by certified mail to the last known address of the parent, spouse, guardian, or legal 
534.9 	representative informing the recipient of the data collection and offering a public health 
534.10 	nurse support visit if desired.
534.11 	(d) The commissioner does not have access to coroner or medical examiner data that 
534.12 	are part of an active investigation as described in section 13.83.
534.13 	(e) The commissioner may request and receive from a coroner or medical examiner the 
534.14 	name of the health care provider that provided prenatal, postpartum, or other health services 
534.15 	to the subject of the data.
534.16 	(f) The commissioner may access Department of Human Services and Department of 
534.17 	Children, Youth, and Families data to identify sources of care and services to assist with 
534.18 	the evaluation of welfare systems, including housing, to reduce preventable maternal deaths.
534.19 	(g) The commissioner may request and receive law enforcement reports or incident 
534.20 	reports related to the subject of the data.

534.21 	Sec. 21. Minnesota Statutes 2024, section 145.901, subdivision 4, is amended to read:
534.22 		Subd. 4.Classification of data. (a) Data provided to the commissioner from source 
534.23 	records under subdivision 2, including identifying information on individual providers, data 
534.24 	subjects, or their children, and data derived by the commissioner under subdivision 3 for 
534.25 	the purpose of carrying out maternal death studies, are classified as confidential data on 
534.26 	individuals or confidential data on decedents, as defined in sections 13.02, subdivision 3, 
534.27 	and 13.10, subdivision 1, paragraph (a).
534.28 	(b) Information classified under paragraph (a) shall not be subject to discovery or 
534.29 	introduction into evidence in any administrative, civil, or criminal proceeding. Such 
534.30 	information otherwise available from an original source shall not be immune from discovery 
534.31 	or barred from introduction into evidence merely because it was utilized by the commissioner 
534.32 	in carrying out maternal death studies.
535.1 	(c) Summary data on maternal death studies created by the commissioner, which does 
535.2 	not identify individual data subjects or individual providers, shall be public in accordance 
535.3 	with section 13.05, subdivision 7.
535.4 	(d) Data provided by the commissioner of human services or the commissioner of 
535.5 	children, youth, and families to the commissioner of health under this section retain the 
535.6 	same classification the data held when retained by the commissioner of human services or 
535.7 	the commissioner of children, youth, and families, as required under section 13.03, 
535.8 	subdivision 4, paragraph (c).

535.9 	Sec. 22. Minnesota Statutes 2024, section 145.9255, subdivision 1, is amended to read:
535.10 		Subdivision 1.Establishment. To the extent funds are available for the purposes of this 
535.11 	subdivision, the commissioner of health, in consultation with a representative from Minnesota 
535.12 	planning,; the commissioner of human services,; the commissioner of children, youth, and 
535.13 	families; and the commissioner of education, shall develop and implement the Minnesota 
535.14 	education now and babies later (MN ENABL) program, targeted to adolescents ages 12 to 
535.15 	14, with the goal of reducing the incidence of adolescent pregnancy in the state and promoting 
535.16 	abstinence until marriage. The program must provide a multifaceted, primary prevention, 
535.17 	community health promotion approach to educating and supporting adolescents in the 
535.18 	decision to postpone sexual involvement modeled after the ENABL program in California. 
535.19 	The commissioner of health shall consult with the chief of the health education section of 
535.20 	the California Department of Health Services for general guidance in developing and 
535.21 	implementing the program.

535.22 	Sec. 23. Minnesota Statutes 2024, section 145.9265, is amended to read:
535.23 	145.9265 FETAL ALCOHOL SYNDROME EFFECTS; DRUG-EXPOSED 
535.24 	INFANT.
535.25 	The commissioner of health, in coordination with the commissioner of education; the 
535.26 	commissioner of children, youth, and families; and the commissioner of human services, 
535.27 	shall design and implement a coordinated prevention effort to reduce the rates of fetal alcohol 
535.28 	syndrome and fetal alcohol effects, and reduce the number of drug-exposed infants. The 
535.29 	commissioner shall:
535.30 	(1) conduct research to determine the most effective methods of preventing fetal alcohol 
535.31 	syndrome, fetal alcohol effects, and drug-exposed infants and to determine the best methods 
535.32 	for collecting information on the incidence and prevalence of these problems in Minnesota;
536.1 	(2) provide training on effective prevention methods to health care professionals and 
536.2 	human services workers; and
536.3 	(3) operate a statewide media campaign focused on reducing the incidence of fetal 
536.4 	alcohol syndrome and fetal alcohol effects, and reducing the number of drug-exposed infants.

536.5 	Sec. 24. Minnesota Statutes 2024, section 174.285, subdivision 4, is amended to read:
536.6 		Subd. 4.Membership. (a) The council is composed of the following 13 14 members:
536.7 	(1) one representative from the Office of the Governor;
536.8 	(2) one representative from the Council on Disability;
536.9 	(3) one representative from the Minnesota Public Transit Association;
536.10 	(4) the commissioner of transportation or a designee;
536.11 	(5) the commissioner of human services or a designee;
536.12 	(6) the commissioner of health or a designee;
536.13 	(7) the chair of the Metropolitan Council or a designee;
536.14 	(8) the commissioner of education or a designee;
536.15 	(9) the commissioner of veterans affairs or a designee;
536.16 	(10) one representative from the Board on Aging;
536.17 	(11) the commissioner of employment and economic development or a designee;
536.18 	(12) the commissioner of commerce or a designee; and
536.19 	(13) the commissioner of management and budget or a designee.; and
536.20 	(14) the commissioner of children, youth, and families or a designee.
536.21 	(b) All appointments required by paragraph (a) must be completed by August 1, 2010.
536.22 	(c) The commissioner of transportation or a designee shall convene the first meeting of 
536.23 	the council within two weeks after the members have been appointed to the council. The 
536.24 	members shall elect a chair from their membership at the first meeting.
536.25 	(d) The Department of Transportation and the Department of Human Services shall 
536.26 	provide necessary staff support for the council.

537.1 	Sec. 25. Minnesota Statutes 2024, section 214.104, is amended to read:
537.2 	214.104 HEALTH-RELATED LICENSING BOARDS; SUBSTANTIATED 
537.3 	MALTREATMENT.
537.4 	(a) A health-related licensing board shall make determinations as to whether regulated 
537.5 	persons who are under the board's jurisdiction should be the subject of disciplinary or 
537.6 	corrective action because of substantiated maltreatment under section 626.557 or chapter 
537.7 	260E. The board shall make a determination upon receipt, and after the review, of an 
537.8 	investigation memorandum or other notice of substantiated maltreatment under section 
537.9 	626.557, or chapter 260E, or of a notice from the commissioner of human services or the 
537.10 	commissioner of children, youth, and families that a background study of a regulated person 
537.11 	shows substantiated maltreatment.
537.12 	(b) Upon completion of its review of a report of substantiated maltreatment, the board 
537.13 	shall notify the commissioner commissioners of human services and children, youth, and 
537.14 	families of its determination. The board shall notify the commissioner of human services 
537.15 	if, following a review of the report of substantiated maltreatment, the board determines that 
537.16 	it does not have jurisdiction in the matter and the commissioner shall make the appropriate 
537.17 	disqualification decision regarding the regulated person as otherwise provided in chapter 
537.18 	245C. The board shall also notify the commissioner of health or; the commissioner of human 
537.19 	services; or the commissioner of children, youth, and families immediately upon receipt of 
537.20 	knowledge of a facility or program allowing a regulated person to provide direct contact 
537.21 	services at the facility or program while not complying with requirements placed on the 
537.22 	regulated person.
537.23 	(c) In addition to any other remedy provided by law, the board may, through its designated 
537.24 	board member, temporarily suspend the license of a licensee; deny a credential to an 
537.25 	applicant; or require the regulated person to be continuously supervised, if the board finds 
537.26 	there is probable cause to believe the regulated person referred to the board according to 
537.27 	paragraph (a) poses an immediate risk of harm to vulnerable persons. The board shall 
537.28 	consider all relevant information available, which may include but is not limited to:
537.29 	(1) the extent the action is needed to protect persons receiving services or the public;
537.30 	(2) the recency of the maltreatment;
537.31 	(3) the number of incidents of maltreatment;
537.32 	(4) the intrusiveness or violence of the maltreatment; and
537.33 	(5) the vulnerability of the victim of maltreatment.
538.1 	The action shall take effect upon written notice to the regulated person, served by certified 
538.2 	mail, specifying the statute violated. The board shall notify the commissioner of health or;
538.3 	the commissioner of human services; or the commissioner of children, youth, and families
538.4 	of the suspension or denial of a credential. The action shall remain in effect until the board 
538.5 	issues a temporary stay or a final order in the matter after a hearing or upon agreement 
538.6 	between the board and the regulated person. At the time the board issues the notice, the 
538.7 	regulated person shall inform the board of all settings in which the regulated person is 
538.8 	employed or practices. The board shall inform all known employment and practice settings 
538.9 	of the board action and schedule a disciplinary hearing to be held under chapter 14. The 
538.10 	board shall provide the regulated person with at least 30 days' notice of the hearing, unless 
538.11 	the parties agree to a hearing date that provides less than 30 days' notice, and shall schedule 
538.12 	the hearing to begin no later than 90 days after issuance of the notice of hearing.

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

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

538.26 	Sec. 28. Minnesota Statutes 2024, section 241.021, subdivision 2, is amended to read:
538.27 		Subd. 2.Facilities for delinquent children and youth; licenses; 
538.28 	supervision. Notwithstanding any provisions in sections 256.01, subdivision 2, paragraph 
538.29 	(a), clause (2),; 142B.05; 142B.10;245A.03,; and 245A.04, and chapter 245C, to the contrary, 
538.30 	but subject to the municipality notification requirements of subdivision 2a, the commissioner 
538.31 	of corrections shall review all county, municipal, or other publicly established and operated 
538.32 	facilities for the detention, care and training of delinquent children and youth at least once 
538.33 	every biennium, and if such facility conforms to reasonable standards established by the 
539.1 	commissioner or in the commissioner's judgment is making satisfactory progress toward 
539.2 	substantial conformity therewith, and the commissioner is satisfied that the interests and 
539.3 	well-being of children and youth received therein are protected, the commissioner shall 
539.4 	grant a license to the county, municipality or agency thereof operating such facility. The 
539.5 	commissioner may grant licensure up to two years. Each such facility shall cooperate with 
539.6 	the commissioner to make available all facts regarding its operation and services as the 
539.7 	commissioner requires to determine its conformance to standards and its competence to 
539.8 	give the services needed and which it purports to give. Every such facility as herein described 
539.9 	is subject to visitation and supervision by the commissioner and shall receive from the 
539.10 	commissioner consultation as needed to strengthen services to the children and youth received 
539.11 	therein.

539.12 	Sec. 29. Minnesota Statutes 2024, section 242.09, is amended to read:
539.13 	242.09 COOPERATION; OTHER AGENCIES.
539.14 	The commissioner of human services,; the commissioner of education,; the commissioner 
539.15 	of children, youth, and families; and the state commissioner of health shall advise, cooperate 
539.16 	with and assist the commissioner of corrections in carrying out the duties and responsibilities 
539.17 	assigned by this chapter, and for these purposes may attend meetings. Their facilities and 
539.18 	services and those of other state agencies, particularly of the Department of Human Services
539.19 	and Department of Children, Youth, and Families, shall be made available to the 
539.20 	commissioner of corrections upon the terms the governor directs.

539.21 	Sec. 30. Minnesota Statutes 2024, section 242.21, is amended to read:
539.22 	242.21 COOPERATION; STATE INSTITUTIONS, LOCAL POLICE OFFICERS.
539.23 	The commissioner of corrections may enter into agreement with the Direct Care and 
539.24 	Treatment executive board, with; the commissioner of children, youth, and families; the 
539.25 	commissioner of human services; local probation officers or other public officials; and with
539.26 	public or private agencies, schools, or institutions, for custody, separate care, special 
539.27 	treatment, training, or diagnostic services of persons committed to the care or subject to the 
539.28 	control of the commissioner of corrections. The commissioner of corrections may pay any 
539.29 	costs incurred by such agreements to the extent that funds for such purposes are made 
539.30 	available to the commissioner by the legislature.

540.1 	Sec. 31. Minnesota Statutes 2024, section 242.32, subdivision 1, is amended to read:
540.2 		Subdivision 1.Community-based programming. The commissioner of corrections 
540.3 	shall be charged with the duty of developing constructive programs for the prevention and 
540.4 	decrease of delinquency and crime among youth. To that end, the commissioner shall 
540.5 	cooperate with counties and existing agencies to encourage the establishment of new 
540.6 	programming, both local and statewide, to provide a continuum of services for serious and 
540.7 	repeat juvenile offenders who do not require secure placement. The commissioner shall 
540.8 	work jointly with the commissioner of human services; the commissioner of children, youth, 
540.9 	and families; and counties and municipalities to develop and provide community-based 
540.10 	services for residential placement of juvenile offenders and community-based services for 
540.11 	nonresidential programming for juvenile offenders and their families.
540.12 	Notwithstanding any law to the contrary, the commissioner of corrections is authorized 
540.13 	to contract with counties placing juveniles in the serious/chronic program at the Minnesota 
540.14 	Correctional Facility-Red Wing to provide necessary extended community transition 
540.15 	programming. Funds resulting from the contracts shall be deposited in the state treasury 
540.16 	and are appropriated to the commissioner for juvenile correctional purposes.

540.17 	Sec. 32. Minnesota Statutes 2024, section 245.697, subdivision 1, is amended to read:
540.18 		Subdivision 1.Creation. (a) A State Advisory Council on Mental Health is created. The 
540.19 	council must have members appointed by the governor in accordance with federal 
540.20 	requirements. In making the appointments, the governor shall consider appropriate 
540.21 	representation of communities of color. The council must be composed of:
540.22 	(1) the assistant commissioner of the Department of Human Services who oversees 
540.23 	behavioral health policy;
540.24 	(2) a representative of the Department of Human Services responsible for the medical 
540.25 	assistance program;
540.26 	(3) a representative of Direct Care and Treatment;
540.27 	(4) a representative of the Department of Health;
540.28 	(5) a representative of the Department of Children, Youth, and Families;
540.29 	(5) (6) one member of each of the following professions:
540.30 	(i) psychiatry;
540.31 	(ii) psychology;
541.1 	(iii) social work;
541.2 	(iv) nursing;
541.3 	(v) marriage and family therapy; and
541.4 	(vi) professional clinical counseling;
541.5 	(6) (7) one representative from each of the following advocacy groups: Mental Health 
541.6 	Association of Minnesota, NAMI-MN, Minnesota Disability Law Center, American Indian 
541.7 	Mental Health Advisory Council, and a consumer-run mental health advocacy group;
541.8 	(7) (8) providers of mental health services;
541.9 	(8) (9) consumers of mental health services;
541.10 	(9) (10) family members of persons with mental illnesses;
541.11 	(10) (11) legislators;
541.12 	(11) (12) social service agency directors;
541.13 	(12) (13) county commissioners; and
541.14 	(13) (14) other members reflecting a broad range of community interests, including 
541.15 	family physicians, or members as the United States Secretary of Health and Human Services 
541.16 	may prescribe by regulation or as may be selected by the governor.
541.17 	(b) The council shall select a chair. Terms, compensation, and removal of members and 
541.18 	filling of vacancies are governed by section 15.059. Notwithstanding provisions of section 
541.19 	15.059, the council and its subcommittee on children's mental health do not expire. The 
541.20 	commissioner of human services shall provide staff support and supplies to the council.

541.21 	Sec. 33. Minnesota Statutes 2024, section 245.697, subdivision 2a, is amended to read:
541.22 		Subd. 2a.Subcommittee on Children's Mental Health. The State Advisory Council 
541.23 	on Mental Health (the "advisory council") must have a Subcommittee on Children's Mental 
541.24 	Health. The subcommittee must make recommendations to the advisory council on policies, 
541.25 	laws, regulations, and services relating to children's mental health. Members of the 
541.26 	subcommittee must include:
541.27 	(1) the commissioners or designees of the commissioners of the Departments of Human 
541.28 	Services,; Children, Youth, and Families; Health,; Education,; State Planning,; and 
541.29 	Corrections;
541.30 	(2) a designee of the Direct Care and Treatment executive board;
542.1 	(3) the commissioner of commerce or a designee of the commissioner who is 
542.2 	knowledgeable about medical insurance issues;
542.3 	(4) at least one representative of an advocacy group for children with emotional 
542.4 	disturbances;
542.5 	(5) providers of children's mental health services, including at least one provider of 
542.6 	services to preadolescent children, one provider of services to adolescents, and one 
542.7 	hospital-based provider;
542.8 	(6) parents of children who have emotional disturbances;
542.9 	(7) a present or former consumer of adolescent mental health services;
542.10 	(8) educators currently working with emotionally disturbed children;
542.11 	(9) people knowledgeable about the needs of emotionally disturbed children of minority 
542.12 	races and cultures;
542.13 	(10) people experienced in working with emotionally disturbed children who have 
542.14 	committed status offenses;
542.15 	(11) members of the advisory council;
542.16 	(12) one person from the local corrections department and one representative of the 
542.17 	Minnesota District Judges Association Juvenile Committee; and
542.18 	(13) county commissioners and social services agency representatives.
542.19 	The chair of the advisory council shall appoint subcommittee members described in 
542.20 	clauses (4) to (12) through the process established in section 15.0597. The chair shall appoint 
542.21 	members to ensure a geographical balance on the subcommittee. Terms, compensation, 
542.22 	removal, and filling of vacancies are governed by subdivision 1, except that terms of 
542.23 	subcommittee members who are also members of the advisory council are coterminous with 
542.24 	their terms on the advisory council. The subcommittee shall meet at the call of the 
542.25 	subcommittee chair who is elected by the subcommittee from among its members. The 
542.26 	subcommittee expires with the expiration of the advisory council.

542.27 	Sec. 34. Minnesota Statutes 2024, section 245.814, subdivision 1, is amended to read:
542.28 		Subdivision 1.Insurance for foster home providers. (a) The commissioner of human 
542.29 	services or the commissioner of children, youth, and families shall within the appropriation 
542.30 	provided purchase and provide insurance to individuals licensed as foster home providers 
542.31 	to cover their liability for:
543.1 	(1) injuries or property damage caused or sustained by persons in foster care in their 
543.2 	home; and
543.3 	(2) actions arising out of alienation of affections sustained by the birth parents of a foster 
543.4 	child or birth parents or children of a foster adult.
543.5 	(b) Each commissioner shall provide insurance for the providers the commissioner 
543.6 	licenses.
543.7 	(c) For purposes of this subdivision, insurance for homes licensed to provide adult foster 
543.8 	care shall be limited to family adult foster care homes as defined in section 245A.02, 
543.9 	subdivision 6f, and family adult day services licensed under section 245A.143.

543.10 	Sec. 35. Minnesota Statutes 2024, section 245.814, subdivision 2, is amended to read:
543.11 		Subd. 2.Application of coverage. Coverage shall apply to all foster homes licensed by 
543.12 	the Department of Human Services or the Department of Children, Youth, and Families, 
543.13 	licensed by a federally recognized tribal government, or established by the juvenile court 
543.14 	and certified by the commissioner of corrections pursuant to section 260B.198, subdivision 
543.15 	1, paragraph (a), clause (3), item (v), to the extent that the liability is not covered by the 
543.16 	provisions of the standard homeowner's or automobile insurance policy. The insurance shall 
543.17 	not cover property owned by the individual foster home provider, damage caused 
543.18 	intentionally by a person over 12 years of age, or property damage arising out of business 
543.19 	pursuits or the operation of any vehicle, machinery, or equipment.

543.20 	Sec. 36. Minnesota Statutes 2024, section 245.814, subdivision 3, is amended to read:
543.21 		Subd. 3.Compensation provisions. If the commissioner of human services or the 
543.22 	commissioner of children, youth, and families is unable to obtain insurance through ordinary 
543.23 	methods for coverage of foster home providers, the appropriation shall be returned to the 
543.24 	general fund and the state shall pay claims subject to the following limitations.
543.25 	(a) Compensation shall be provided only for injuries, damage, or actions set forth in 
543.26 	subdivision 1.
543.27 	(b) Compensation shall be subject to the conditions and exclusions set forth in subdivision 
543.28 	2.
543.29 	(c) The state shall provide compensation for bodily injury, property damage, or personal 
543.30 	injury resulting from the foster home providers activities as a foster home provider while 
543.31 	the foster child or adult is in the care, custody, and control of the foster home provider in 
543.32 	an amount not to exceed $250,000 for each occurrence.
544.1 	(d) The state shall provide compensation for damage or destruction of property caused 
544.2 	or sustained by a foster child or adult in an amount not to exceed $250 for each occurrence.
544.3 	(e) The compensation in paragraphs (c) and (d) is the total obligation for all damages 
544.4 	because of each occurrence regardless of the number of claims made in connection with 
544.5 	the same occurrence, but compensation applies separately to each foster home. The state 
544.6 	shall have no other responsibility to provide compensation for any injury or loss caused or 
544.7 	sustained by any foster home provider or foster child or foster adult.
544.8 	This coverage is extended as a benefit to foster home providers to encourage care of 
544.9 	persons who need out-of-home care. Nothing in this section shall be construed to mean that 
544.10 	foster home providers are agents or employees of the state nor does the state accept any 
544.11 	responsibility for the selection, monitoring, supervision, or control of foster home providers 
544.12 	which is exclusively the responsibility of the counties which shall regulate foster home 
544.13 	providers in the manner set forth in the rules of the commissioner commissioners of human 
544.14 	services and children, youth, and families.

544.15 	Sec. 37. Minnesota Statutes 2024, section 245.814, subdivision 4, is amended to read:
544.16 		Subd. 4.Liability insurance; risk pool. If the commissioner that licenses a program
544.17 	determines that appropriate commercial liability insurance coverage is not available for a 
544.18 	licensed foster home, group home, developmental achievement center, or day care provider, 
544.19 	and that coverage available through the joint underwriting authority of the commissioner 
544.20 	of commerce or other public entity is not appropriate for the provider or a class of providers, 
544.21 	the commissioner of human services; the commissioner of children, youth, and families;
544.22 	and the commissioner of commerce may jointly establish a risk pool to provide coverage 
544.23 	for licensed providers out of premiums or fees paid by providers. The commissioners may 
544.24 	set limits on coverage, establish premiums or fees, determine the proportionate share of 
544.25 	each provider to be collected in a premium or fee based on the provider's claim experience 
544.26 	and other factors the commissioners consider appropriate, establish eligibility and application 
544.27 	requirements for coverage, and take other action necessary to accomplish the purposes of 
544.28 	this subdivision. A human services risk pool fund is created for the purposes of this 
544.29 	subdivision. Fees and premiums collected from providers for risk pool coverage are 
544.30 	appropriated to the risk pool fund. Interest earned from the investment of money in the fund 
544.31 	must be credited to the fund and money in the fund is appropriated to the commissioner
544.32 	commissioners of human services and children, youth, and families in proportion to the 
544.33 	amounts insured by each commissioner to pay administrative costs and covered claims for 
544.34 	participating providers. In the event that money in the fund is insufficient to pay outstanding 
545.1 	claims and associated administrative costs, the commissioner commissioners of human 
545.2 	services and children, youth, and families may assess providers participating in the risk pool 
545.3 	amounts sufficient to pay the costs. The commissioner commissioners of human services
545.4 	and children, youth, and families may not assess a provider an amount exceeding one year's 
545.5 	premiums collected from that provider.

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

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

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

545.20 	Sec. 41. Minnesota Statutes 2024, section 245C.031, subdivision 9, is amended to read:
545.21 		Subd. 9.Guardians ad litem; required checks. (a) An alternative background study 
545.22 	for a guardian ad litem under subdivision 8 must include:
545.23 	(1) criminal history data from the Bureau of Criminal Apprehension and other criminal 
545.24 	history data obtained by the commissioner of human services; and
545.25 	(2) data regarding whether the person has been a perpetrator of substantiated maltreatment 
545.26 	of a minor or a vulnerable adult. If the study subject has been determined by the Department 
545.27 	of Human Services; the Department of Children, Youth, and Families; or the Department 
545.28 	of Health to be the perpetrator of substantiated maltreatment of a minor or a vulnerable 
545.29 	adult in a licensed facility, the response must include a copy of the public portion of the 
545.30 	investigation memorandum under section 260E.30 or the public portion of the investigation 
545.31 	memorandum under section 626.557, subdivision 12b. When the background study shows 
546.1 	that the subject has been determined by a county adult protection or child protection agency 
546.2 	to have been responsible for maltreatment, the court shall be informed of the county, the 
546.3 	date of the finding, and the nature of the maltreatment that was substantiated.
546.4 	(b) For checks of records under paragraph (a), clauses (1) and (2), the commissioner 
546.5 	shall provide the records within 15 working days of receiving the request. The information 
546.6 	obtained under sections 245C.05 and 245C.08 from a national criminal history records 
546.7 	check shall be provided within three working days of the commissioner's receipt of the data.
546.8 	(c) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
546.9 	or county lead agency or lead investigative agency has information that a person of whom 
546.10 	a background study was previously completed under this section has been determined to 
546.11 	be a perpetrator of maltreatment of a minor or vulnerable adult, the commissioner or the 
546.12 	county may provide this information to the court that requested the background study.

546.13 	Sec. 42. Minnesota Statutes 2024, section 245C.033, subdivision 2, is amended to read:
546.14 		Subd. 2.State licensing agency data. (a) Requests for state licensing agency data 
546.15 	submitted pursuant to section 524.5-118 must include information from a check of state 
546.16 	licensing agency records.
546.17 	(b) The commissioner shall provide the court with licensing agency data for licenses 
546.18 	directly related to the responsibilities of a guardian or conservator if the guardian or 
546.19 	conservator has a current or prior affiliation with the:
546.20 	(1) Lawyers Responsibility Board;
546.21 	(2) State Board of Accountancy;
546.22 	(3) Board of Social Work;
546.23 	(4) Board of Psychology;
546.24 	(5) Board of Nursing;
546.25 	(6) Board of Medical Practice;
546.26 	(7) Department of Education;
546.27 	(8) Department of Commerce;
546.28 	(9) Board of Chiropractic Examiners;
546.29 	(10) Board of Dentistry;
546.30 	(11) Board of Marriage and Family Therapy;
547.1 	(12) Department of Human Services;
547.2 	(13) Department of Children, Youth, and Families;
547.3 	(13) (14) Peace Officer Standards and Training (POST) Board; or
547.4 	(14) (15) Professional Educator Licensing and Standards Board.
547.5 	(c) The commissioner shall provide to the court the electronically available data 
547.6 	maintained in the agency's database, including whether the guardian or conservator is or 
547.7 	has been licensed by the agency and whether a disciplinary action or a sanction against the 
547.8 	individual's license, including a condition, suspension, revocation, or cancellation, is in the 
547.9 	licensing agency's database.

547.10 	Sec. 43. Minnesota Statutes 2024, section 245C.05, subdivision 7, is amended to read:
547.11 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or corrections 
547.12 	agent shall notify the commissioner of an individual's conviction if the individual:
547.13 	(1) has been affiliated with a program or facility regulated by the Department of Human 
547.14 	Services; Department of Children, Youth, and Families; or Department of Health, a facility 
547.15 	serving children or youth licensed by the Department of Corrections, or any type of home 
547.16 	care agency or provider of personal care assistance services within the preceding year; and
547.17 	(2) has been convicted of a crime constituting a disqualification under section 245C.14.
547.18 	(b) For the purpose of this subdivision, "conviction" has the meaning given it in section 
547.19 	609.02, subdivision 5.
547.20 	(c) The commissioner, in consultation with the commissioner of corrections, shall develop 
547.21 	forms and information necessary to implement this subdivision and shall provide the forms 
547.22 	and information to the commissioner of corrections for distribution to local probation officers 
547.23 	and corrections agents.
547.24 	(d) The commissioner shall inform individuals subject to a background study that criminal 
547.25 	convictions for disqualifying crimes shall be reported to the commissioner by the corrections 
547.26 	system.
547.27 	(e) A probation officer, corrections agent, or corrections agency is not civilly or criminally 
547.28 	liable for disclosing or failing to disclose the information required by this subdivision.
547.29 	(f) Upon receipt of disqualifying information, the commissioner shall provide the notice 
547.30 	required under section 245C.17, as appropriate, to agencies on record as having initiated a 
548.1 	background study or making a request for documentation of the background study status 
548.2 	of the individual.
548.3 	(g) This subdivision does not apply to family child care programs or legal nonlicensed 
548.4 	child care programs for individuals whose background study was completed in NETStudy 
548.5 	2.0.

548.6 	Sec. 44. Minnesota Statutes 2024, section 245C.07, is amended to read:
548.7 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
548.8 	(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other 
548.9 	entity owns multiple programs or services that are licensed by the Department of Human 
548.10 	Services,; Department of Children, Youth, and Families; Department of Health,; or 
548.11 	Department of Corrections, only one background study is required for an individual who 
548.12 	provides direct contact services in one or more of the licensed programs or services if:
548.13 	(1) the license holder designates one individual with one address and telephone number 
548.14 	as the person to receive sensitive background study information for the multiple licensed 
548.15 	programs or services that depend on the same background study; and
548.16 	(2) the individual designated to receive the sensitive background study information is 
548.17 	capable of determining, upon request of the department, whether a background study subject 
548.18 	is providing direct contact services in one or more of the license holder's programs or services 
548.19 	and, if so, at which location or locations.
548.20 	(b) When a license holder maintains background study compliance for multiple licensed 
548.21 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
548.22 	license holder shall immediately notify the commissioner which staff must be transferred 
548.23 	to an active license so that the background studies can be electronically paired with the 
548.24 	license holder's active program.
548.25 	(c) When a background study is being initiated by a licensed program or service or a 
548.26 	foster care provider that is also licensed under chapter 144G, a study subject affiliated with 
548.27 	multiple licensed programs or services may attach to the background study form a cover 
548.28 	letter indicating the additional names of the programs or services, addresses, and background 
548.29 	study identification numbers.
548.30 	When the commissioner receives a notice, the commissioner shall notify each program 
548.31 	or service identified by the background study subject of the study results.
549.1 	The background study notice the commissioner sends to the subsequent agencies shall 
549.2 	satisfy those programs' or services' responsibilities for initiating a background study on that 
549.3 	individual.
549.4 	(d) If a background study was conducted on an individual related to child foster care 
549.5 	and the requirements under paragraph (a) are met, the background study is transferable 
549.6 	across all licensed programs. If a background study was conducted on an individual under 
549.7 	a license other than child foster care and the requirements under paragraph (a) are met, the 
549.8 	background study is transferable to all licensed programs except child foster care.
549.9 	(e) The provisions of this section that allow a single background study in one or more 
549.10 	licensed programs or services do not apply to background studies submitted by adoption 
549.11 	agencies, supplemental nursing services agencies, personnel pool agencies, educational 
549.12 	programs, professional services agencies, temporary personnel agencies, and unlicensed 
549.13 	personal care provider organizations.
549.14 	(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
549.15 	system used to document when a background study subject is affiliated with multiple entities. 
549.16 	For a background study to be transferable:
549.17 	(1) the background study subject must be on and moving to a roster for which the person 
549.18 	designated to receive sensitive background study information is the same; and
549.19 	(2) the same entity must own or legally control both the roster from which the transfer 
549.20 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
549.21 	controls multiple licenses, or unlicensed personal care provider organizations, there must 
549.22 	be a common highest level entity that has a legally identifiable structure that can be verified 
549.23 	through records available from the secretary of state.

549.24 	Sec. 45. Minnesota Statutes 2024, section 256.88, is amended to read:
549.25 	256.88 SOCIAL WELFARE FUND ESTABLISHED.
549.26 	Except as otherwise expressly provided, all moneys and funds held by the commissioner 
549.27 	of human services,; the commissioner of children, youth, and families; the Direct Care and 
549.28 	Treatment executive board,; and the local social services agencies of the several counties 
549.29 	in trust or for the benefit of children with a disability and children who are dependent, 
549.30 	neglected, or delinquent,; children born to mothers who were not married to the children's 
549.31 	fathers at the times of the conception nor at the births of the children,; persons determined 
549.32 	to have developmental disability, mental illness, or substance use disorder,; or other wards 
549.33 	or beneficiaries, under any law, shall be kept in a single fund to be known as the "social 
550.1 	welfare fund" which shall be deposited at interest, held, or disbursed as provided in sections 
550.2 	256.89 to 256.92.

550.3 	Sec. 46. Minnesota Statutes 2024, section 256.89, is amended to read:
550.4 	256.89 FUND DEPOSITED IN STATE TREASURY.
550.5 	The social welfare fund and all accretions thereto shall be deposited in the state treasury, 
550.6 	as a separate and distinct fund, to the credit of the commissioner of human services; the 
550.7 	commissioner of children, youth, and families; and the Direct Care and Treatment executive 
550.8 	board as trustees for their respective beneficiaries in proportion to the beneficiaries' several 
550.9 	interests. The commissioner of management and budget shall be responsible only to the 
550.10 	commissioner of human services; the commissioner of children, youth, and families; and 
550.11 	the Direct Care and Treatment executive board for the sum total of the fund, and shall have 
550.12 	no duties nor direct obligations toward the beneficiaries thereof individually. Subject to the 
550.13 	applicable rules of the commissioner of human services; the commissioner of children, 
550.14 	youth, and families; or the Direct Care and Treatment executive board, money so received 
550.15 	by a local social services agency may be deposited by the executive secretary of the local 
550.16 	social services agency in a local bank carrying federal deposit insurance, designated by the 
550.17 	local social services agency for this purpose. The amount of such deposit in each such bank 
550.18 	at any one time shall not exceed the amount protected by federal deposit insurance.

550.19 	Sec. 47. Minnesota Statutes 2024, section 256.90, is amended to read:
550.20 	256.90 SOCIAL WELFARE FUND; USE; DISPOSITION; DEPOSITORIES.
550.21 	The commissioner of human services, in consultation with the commissioner of children, 
550.22 	youth, and families and the Direct Care and Treatment executive board, at least 30 days 
550.23 	before the first day of January and the first day of July in each year shall file with the 
550.24 	commissioner of management and budget an estimate of the amount of the social welfare 
550.25 	fund to be held in the treasury during the succeeding six-month period, subject to current 
550.26 	disbursement. Such portion of the remainder thereof as may be at any time designated by 
550.27 	the request of the commissioner of human services may be invested by the commissioner 
550.28 	of management and budget in bonds in which the permanent trust funds of the state of 
550.29 	Minnesota may be invested, upon approval by the State Board of Investment. The portion 
550.30 	of such remainder not so invested shall be placed by the commissioner of management and 
550.31 	budget at interest for the period of six months, or when directed by the commissioner of 
550.32 	human services, for the period of 12 months thereafter at the highest rate of interest obtainable 
550.33 	in a bank, or banks, designated by the board of deposit as a suitable depository therefor. All 
551.1 	the provisions of law relative to the designation and qualification of depositories of other 
551.2 	state funds shall be applicable to sections 256.88 to 256.92, except as herein otherwise 
551.3 	provided. Any bond given, or collateral assigned or both, to secure a deposit hereunder may 
551.4 	be continuous in character to provide for the repayment of any moneys belonging to the 
551.5 	fund theretofore or thereafter at any time deposited in such bank until its designation as 
551.6 	such depository is revoked and the security thereof shall be not impaired by any subsequent 
551.7 	agreement or understanding as to the rate of interest to be paid upon such deposit, or as to 
551.8 	time for its repayment. The amount of money belonging to the fund deposited in any bank, 
551.9 	including other state deposits, shall not at any time exceed the amount of the capital stock 
551.10 	thereof. In the event of the closing of the bank any sum deposited therein shall immediately 
551.11 	become due and payable.

551.12 	Sec. 48. Minnesota Statutes 2024, section 256.91, is amended to read:
551.13 	256.91 PURPOSES.
551.14 	From that part of the social welfare fund held in the state treasury subject to disbursement 
551.15 	as provided in section 256.90, the commissioner of human services; the commissioner of 
551.16 	children, youth, and families; or the Direct Care and Treatment executive board at any time 
551.17 	may pay out such amounts as the commissioner commissioners or executive board deems 
551.18 	proper for the support, maintenance, or other legal benefit of any of the children with a 
551.19 	disability and children who are dependent, neglected, or delinquent,; children born to mothers 
551.20 	who were not married to the children's fathers at the times of the conception nor at the births 
551.21 	of the children,; persons with developmental disability, substance use disorder, or mental 
551.22 	illness,; or other wards or persons entitled thereto, not exceeding in the aggregate to or for 
551.23 	any person the principal amount previously received for the benefit of the person, together 
551.24 	with the increase in it from an equitable apportionment of interest realized from the social 
551.25 	welfare fund.
551.26 	When any such person dies or is finally discharged from the guardianship, care, custody, 
551.27 	and control of the commissioner of human services; the commissioner of children, youth, 
551.28 	and families; or the Direct Care and Treatment executive board, the amount then remaining 
551.29 	subject to use for the benefit of the person shall be paid as soon as may be from the social 
551.30 	welfare fund to the persons thereto entitled by law.

552.1 	Sec. 49. Minnesota Statutes 2024, section 256.92, is amended to read:
552.2 	256.92 COMMISSIONER OF HUMAN SERVICES AND DIRECT CARE AND 
552.3 	TREATMENT COMMISSIONERS AND EXECUTIVE BOARD, ACCOUNTS.
552.4 	It shall be the duty of the commissioner of human services,; the commissioner of children, 
552.5 	youth, and families; the Direct Care and Treatment executive board,; and the local social 
552.6 	services agencies of the several counties of this state to cause to be deposited with the 
552.7 	commissioner of management and budget all moneys and funds in their possession or under 
552.8 	their control and designated by section 256.91 as and for the social welfare fund; and all 
552.9 	such moneys and funds shall be so deposited in the state treasury as soon as received. The 
552.10 	commissioner of human services, in consultation with the commissioner of children, youth, 
552.11 	and families and the Direct Care and Treatment executive board, shall keep books of account 
552.12 	or other records showing separately the principal amount received and deposited in the 
552.13 	social welfare fund for the benefit of any person, together with the name of such person, 
552.14 	and the name and address, if known to the commissioner of human services; the 
552.15 	commissioner of children, youth, and families; or the Direct Care and Treatment executive 
552.16 	board, of the person from whom such money was received; and, at least once every two 
552.17 	years, the amount of interest, if any, which the money has earned in the social welfare fund 
552.18 	shall be apportioned thereto and posted in the books of account or records to the credit of 
552.19 	such beneficiary.
552.20 	The provisions of sections 256.88 to 256.92 shall not apply to any fund or money now 
552.21 	or hereafter deposited or otherwise disposed of pursuant to the lawful orders, decrees, 
552.22 	judgments, or other directions of any district court having jurisdiction thereof.

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

552.30 	Sec. 51. Minnesota Statutes 2024, section 256G.01, subdivision 3, is amended to read:
552.31 		Subd. 3.Program coverage. This chapter applies to all social service programs 
552.32 	administered by the commissioner of human services; the commissioner of children, youth, 
552.33 	and families; or the Direct Care and Treatment executive board in which residence is the 
553.1 	determining factor in establishing financial responsibility. These include, but are not limited 
553.2 	to: commitment proceedings, including voluntary admissions; emergency holds; poor relief 
553.3 	funded wholly through local agencies; social services, including title XX, IV-E and section 
553.4 	256K.10; social services programs funded wholly through the resources of county agencies; 
553.5 	social services provided under the Minnesota Indian Family Preservation Act, sections 
553.6 	260.751 to 260.781; costs for delinquency confinement under section 393.07, subdivision 
553.7 	2; service responsibility for these programs; and housing support under chapter 256I.

553.8 	Sec. 52. Minnesota Statutes 2024, section 256G.03, subdivision 2, is amended to read:
553.9 		Subd. 2.No durational test. Except as otherwise provided in sections 142G.12; 142G.78; 
553.10 	256B.056, subdivision 1; and 256D.02, subdivision 12a for purposes of this chapter, no 
553.11 	waiting period is required before securing county or state residence. A person cannot, 
553.12 	however, gain residence while physically present in an excluded time facility unless otherwise 
553.13 	specified in this chapter or in a federal regulation controlling a federally funded human 
553.14 	service; children, youth, and families; or direct care and treatment program. Interstate 
553.15 	migrants who enter a shelter for battered women directly from another state can gain 
553.16 	residency while in the facility provided the person can provide documentation that the person 
553.17 	is a victim of domestic abuse and the county determines that the placement is appropriate.

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

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

554.13 	Sec. 55. Minnesota Statutes 2024, section 256G.09, subdivision 3, is amended to read:
554.14 		Subd. 3.Commissioner of human services obligations. (a) Except as provided in 
554.15 	paragraph (b) for matters solely under the jurisdiction of the Direct Care and Treatment 
554.16 	executive board or the commissioner of children, youth, and families, the commissioner of 
554.17 	human services shall then promptly decide any question of financial responsibility as outlined 
554.18 	in this chapter and make an order referring the application to the local agency of the proper 
554.19 	county for further action. Further action may include reimbursement by that county of 
554.20 	assistance that another county has provided to the applicant under this subdivision. The 
554.21 	commissioner shall decide disputes within 60 days of the last county evidentiary submission 
554.22 	and shall issue an immediate opinion.
554.23 	(b) For disputes regarding financial responsibility relating to matters solely under the 
554.24 	jurisdiction of the Direct Care and Treatment executive board or the commissioner of 
554.25 	children, youth, and families, the commissioner of human services shall promptly issue an 
554.26 	advisory opinion on any question of financial responsibility as outlined in this chapter and 
554.27 	recommend to the executive board or commissioner of children, youth, and families an 
554.28 	order referring the application to the local agency of the proper county for further action. 
554.29 	Further action may include reimbursement by that county of assistance that another county 
554.30 	has provided to the applicant under this subdivision. The commissioner of human services
554.31 	shall provide an advisory opinion and recommended order to the executive board or 
554.32 	commissioner of children, youth, and families within 30 days of the last county evidentiary 
554.33 	submission. The executive board or commissioner of children, youth, and families shall 
554.34 	decide to accept or reject the commissioner's advisory opinion and recommended order 
555.1 	within 60 days of the last county evidentiary submission and shall issue an immediate 
555.2 	opinion stating the reasons for accepting or rejecting the commissioner's recommendation
555.3 	of the commissioner of human services.
555.4 	(c) The commissioner of human services may make any investigation it considers proper 
555.5 	before making a decision or a recommendation to the executive board or commissioner of 
555.6 	children, youth, and families. The commissioner of human services may prescribe rules it 
555.7 	considers necessary to carry out this subdivision except that the commissioner of human 
555.8 	services must not create rules purporting to bind the executive board's decision of the 
555.9 	executive board or commissioner of children, youth, and families on any advisory opinion 
555.10 	or recommended order under paragraph (b).
555.11 	(d) Except as provided in paragraph (e) for matters solely under the jurisdiction of the 
555.12 	executive board or the commissioner of children, youth, and families, the order of the 
555.13 	commissioner of human services binds the local agency involved and the applicant or 
555.14 	recipient. That agency shall comply with the order unless reversed on appeal as provided 
555.15 	in section 256.045, subdivision 7. The agency shall comply with the order pending the 
555.16 	appeal.
555.17 	(e) For disputes regarding financial responsibility relating to matters solely under the 
555.18 	jurisdiction of the Direct Care and Treatment executive board or the commissioner of 
555.19 	children, youth, and families, the order of the executive board or the commissioner of 
555.20 	children, youth, and families binds the local agency involved and the applicant or recipient. 
555.21 	That agency shall comply with the order of the executive board or the commissioner of 
555.22 	children, youth, and families unless the order is reversed on appeal as provided in section
555.23 	142A.20, subdivision 5, or256.045, subdivision 7. The agency shall comply with the order 
555.24 	of the executive board or the commissioner of children, youth, and families pending the 
555.25 	appeal.

555.26 	Sec. 56. Minnesota Statutes 2024, section 256G.09, subdivision 4, is amended to read:
555.27 		Subd. 4.Appeals. A local agency that is aggrieved by the order of the department
555.28 	commissioner of human services, executive board, or commissioner of children, youth, and 
555.29 	families under subdivision 3, paragraph (e), may appeal the opinion to the district court of 
555.30 	the county responsible for furnishing assistance or services by serving a written copy of a 
555.31 	notice of appeal on the commissioner of human services and any adverse party of record 
555.32 	within 30 days after the date the department issued the opinion, and by filing the original 
555.33 	notice and proof of service with the court administrator of district court. Service may be 
555.34 	made personally or by mail. Service by mail is complete upon mailing.
556.1 	The commissioner of human services; the commissioner of children, youth, and families; 
556.2 	or the executive board may elect to become a party to the proceedings in district court. The 
556.3 	court may consider the matter in or out of chambers and shall take no new or additional 
556.4 	evidence.

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

556.11 	Sec. 58. Minnesota Statutes 2024, section 256G.10, is amended to read:
556.12 	256G.10 DERIVATIVE SETTLEMENT.
556.13 	(a) The residence of the parent of a minor child, with whom that child last lived in a 
556.14 	nonexcluded time setting, or guardian of a ward shall determine the residence of the child 
556.15 	or ward for all social services governed by this chapter.
556.16 	(b) For purposes of this chapter, a minor child is defined as being under 18 years of age 
556.17 	unless otherwise specified in a program administered by the commissioner of human services; 
556.18 	the commissioner of children, youth, and families; or the Direct Care and Treatment executive 
556.19 	board.
556.20 	(c) Physical or legal custody has no bearing on residence determinations. This section 
556.21 	does not, however, apply to situations involving another state, limit the application of an 
556.22 	interstate compact, or apply to situations involving state wards where the commissioner of 
556.23 	human services or children, youth, and families is defined by law as the guardian.

556.24 	Sec. 59. Minnesota Statutes 2024, section 256G.11, is amended to read:
556.25 	256G.11 NO RETROACTIVE EFFECT.
556.26 	(a) This chapter is not retroactive and does not require redetermination of financial 
556.27 	responsibility for cases existing on January 1, 1988. This chapter applies only to applications 
556.28 	and redeterminations of eligibility taken or routinely made after January 1, 1988.
556.29 	(b) Notwithstanding this section, existing social services cases shall be treated in the 
556.30 	same manner as cases for those programs outlined in section 256G.02, subdivision 4, 
557.1 	paragraph (g), for which an application is taken or a redetermination is made after January 
557.2 	1, 1988.
557.3 	(c) The requirement under section 256G.09, subdivision 3, for the Direct Care and 
557.4 	Treatment executive board or the commissioner of children, youth, and families to accept 
557.5 	or reject the recommendation of the commissioner of humans services regarding the county 
557.6 	of financial responsibility for matters solely under the jurisdiction of the executive board
557.7 	or the commissioner of children, youth, and families is not retroactive and does not require 
557.8 	redetermination of financial responsibility for cases existing prior to the effective date of 
557.9 	the transfer of all authorities and responsibilities from the Department of Human Services 
557.10 	to Direct Care and Treatment.
557.11 	(d) Notwithstanding paragraph (c), existing cases relating to matters under the jurisdiction 
557.12 	of the executive board must be treated in the same manner as cases relating to matters under 
557.13 	the jurisdiction of the executive board opened or redetermined after the effective date of 
557.14 	the transfer of all authorities and responsibilities from the Department of Human Services 
557.15 	to Direct Care and Treatment or the Department of Children, Youth, and Families.

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

557.22 	Sec. 61. Minnesota Statutes 2024, section 260.762, subdivision 2a, is amended to read:
557.23 		Subd. 2a.Required findings that active efforts were provided. (a) A court shall not 
557.24 	order a child placement, termination of parental rights, guardianship to the commissioner 
557.25 	of children, youth, and families under section 260C.325, or temporary or permanent change 
557.26 	in custody of an Indian child unless the court finds that the child-placing agency or petitioner 
557.27 	demonstrated that active efforts were made to preserve the Indian child's family. Active 
557.28 	efforts to preserve the Indian child's family include efforts to prevent placement of the Indian 
557.29 	child to correct the conditions that led to the placement by ensuring remedial services and 
557.30 	rehabilitative programs designed to prevent the breakup of the family were provided in a 
557.31 	manner consistent with the prevailing social and cultural conditions of the Indian child's 
557.32 	Tribe and in partnership with the Indian child, the Indian child's parents, the Indian custodian, 
557.33 	extended family members, and Tribe, and that these efforts have proved unsuccessful.
558.1 	(b) The court, in determining whether active efforts were made to preserve the Indian 
558.2 	child's family for purposes of child placement or permanency, shall ensure the provision of 
558.3 	active efforts designed to correct the conditions that led to the placement of the Indian child 
558.4 	and shall make findings regarding whether the following activities were appropriate and 
558.5 	necessary, and whether the child-placing agency or petitioner ensured appropriate and 
558.6 	meaningful services were available based upon the family's specific needs, whether listed 
558.7 	in this paragraph or not:
558.8 	(1) whether active efforts were made at the earliest point possible to inquire into the 
558.9 	child's heritage, to identify any federally recognized Indian Tribe the child may be affiliated 
558.10 	with, to notify all potential Tribes at the earliest point possible, and to request participation 
558.11 	of the Indian child's Tribe;
558.12 	(2) whether a Tribally designated representative with substantial knowledge of the 
558.13 	prevailing social and cultural standards and child-rearing practices within the Tribal 
558.14 	community was provided an opportunity to consult with and be involved in any investigations 
558.15 	or assessments of the family's circumstances, participate in identifying the family's needs, 
558.16 	and participate in development of any plan to keep the Indian child safely in the home, 
558.17 	identify services designed to prevent the breakup of the Indian child's family, and to reunify 
558.18 	the Indian child's family as soon as safety can be assured if out-of-home placement has 
558.19 	occurred;
558.20 	(3) whether the Tribal representative was provided with all information available 
558.21 	regarding the proceeding, and whether it was requested that the Tribal representative assist 
558.22 	in identifying services designed to prevent the breakup of the Indian child's family and to 
558.23 	reunify the Indian child's family as soon as safety can be assured if out-of-home placement 
558.24 	has occurred;
558.25 	(4) whether, before making a decision that may affect an Indian child's safety and 
558.26 	well-being or when contemplating placement of an Indian child, guidance from the Indian 
558.27 	child's Tribe was sought regarding family structure, how the family can seek help, what 
558.28 	family and Tribal resources are available, and what barriers the family faces that could 
558.29 	threaten the family's preservation;
558.30 	(5) whether a Tribal representative was consulted to determine and arrange for visitation 
558.31 	in the most natural setting that ensures the Indian child's safety, when the Indian child's 
558.32 	safety requires supervised visitation;
558.33 	(6) whether early and ongoing efforts occurred to identify, locate, and include extended 
558.34 	family members as supports for the Indian child and the Indian child's family;
559.1 	(7) whether continued active efforts were made to identify and place the Indian child in 
559.2 	a home that is compliant with the placement preferences in sections 260.751 to 260.835, 
559.3 	including whether extended family members were consulted to provide support to the Indian 
559.4 	child and Indian child's parents; to inform the child-placing agency, petitioner, and court 
559.5 	as to cultural connections and family structure; to assist in identifying appropriate cultural 
559.6 	services and supports for the Indian child and Indian child's parents; and to identify and 
559.7 	serve as placement and permanency resources for the Indian child. If there was difficulty 
559.8 	contacting or engaging extended family members, whether assistance was sought from the 
559.9 	Tribe,; the Department of Human Services,; the Department of Children, Youth, and Families;
559.10 	or other agencies with expertise in working with Indian families;
559.11 	(8) whether services and resources were provided to extended family members who are 
559.12 	considered the primary placement option for an Indian child, as agreed upon by the 
559.13 	child-placing agency or petitioner and the Tribe, to overcome licensing and other barriers 
559.14 	to providing care to an Indian child. The need for services or resources shall not be a basis 
559.15 	to exclude an extended family member from consideration as a primary placement. Services 
559.16 	and resources include but are not limited to child care assistance, financial assistance, 
559.17 	housing resources, emergency resources, and foster care licensing assistance and resources;
559.18 	(9) whether concrete services and access to both Tribal and non-Tribal services were 
559.19 	provided to the Indian child's parents and Indian custodian and, where necessary, members 
559.20 	of the Indian child's extended family members who provide support to the Indian child and 
559.21 	the Indian child's parents; and whether these services were provided in an ongoing manner 
559.22 	throughout the child-placing agency or petitioner's involvement with the Indian family to 
559.23 	directly assist the Indian family in accessing and utilizing services to maintain the Indian 
559.24 	family, or to reunify the Indian family as soon as safety can be assured if out-of-home 
559.25 	placement has occurred. Services include but are not limited to financial assistance, food, 
559.26 	housing, health care, transportation, in-home services, community support services, and 
559.27 	specialized services; and
559.28 	(10) whether visitation occurred whenever possible in the home of the Indian child's 
559.29 	parent, Indian custodian, or extended family member or in another noninstitutional setting 
559.30 	in order to keep the Indian child in close contact with the Indian child's parents, siblings, 
559.31 	and other relatives regardless of the Indian child's age and to allow the Indian child and 
559.32 	those with whom the Indian child visits to have natural, unsupervised interaction when 
559.33 	consistent with protecting the child's safety.

560.1 	Sec. 62. Minnesota Statutes 2024, section 260B.171, subdivision 4, is amended to read:
560.2 		Subd. 4.Public inspection of records. (a) Legal records arising from proceedings or 
560.3 	portions of proceedings that are public under section 260B.163, subdivision 1, are open to 
560.4 	public inspection.
560.5 	(b) Except as otherwise provided by this section, none of the records of the juvenile 
560.6 	court and none of the records relating to an appeal from a nonpublic juvenile court 
560.7 	proceeding, except the written appellate opinion, shall be open to public inspection or their 
560.8 	contents disclosed except:
560.9 	(1) by order of a court; or
560.10 	(2) as required by chapter 245C or sections 142B.10,245A.04, 611A.03, 611A.04, 
560.11 	611A.06, and 629.73.
560.12 	(c) The victim of any alleged delinquent act may, upon the victim's request, obtain the 
560.13 	following information, unless it reasonably appears that the request is prompted by a desire 
560.14 	on the part of the requester to engage in unlawful activities:
560.15 	(1) the name and age of the juvenile;
560.16 	(2) the act for which the juvenile was petitioned and date of the offense; and
560.17 	(3) the disposition, including, but not limited to, dismissal of the petition, diversion, 
560.18 	probation and conditions of probation, detention, fines, or restitution.
560.19 	(d) The records of juvenile probation officers and county home schools are records of 
560.20 	the court for the purposes of this subdivision. Court services data relating to delinquent acts 
560.21 	that are contained in records of the juvenile court may be released as allowed under section 
560.22 	13.84, subdivision 6. This subdivision applies to all proceedings under this chapter, including 
560.23 	appeals from orders of the juvenile court, except that this subdivision does not apply to 
560.24 	proceedings under section 260B.335 or 260B.425 when the proceeding involves an adult 
560.25 	defendant. The court shall maintain the confidentiality of adoption files and records in 
560.26 	accordance with the provisions of laws relating to adoptions. In juvenile court proceedings 
560.27 	any report or social history furnished to the court shall be open to inspection by the attorneys 
560.28 	of record and the guardian ad litem a reasonable time before it is used in connection with 
560.29 	any proceeding before the court.
560.30 	(e) When a judge of a juvenile court, or duly authorized agent of the court, determines 
560.31 	under a proceeding under this chapter that a child has violated a state or local law, ordinance, 
560.32 	or regulation pertaining to the operation of a motor vehicle on streets and highways, except 
560.33 	parking violations, the judge or agent shall immediately report the violation to the 
561.1 	commissioner of public safety. The report must be made on a form provided by the 
561.2 	Department of Public Safety and must contain the information required under section 169.95.
561.3 	(f) A county attorney may give a law enforcement agency that referred a delinquency 
561.4 	matter to the county attorney a summary of the results of that referral, including the details 
561.5 	of any juvenile court disposition.

561.6 	Sec. 63. Minnesota Statutes 2024, section 260E.03, subdivision 6, is amended to read:
561.7 		Subd. 6.Facility. "Facility" means:
561.8 	(1) a licensed or unlicensed day care facility, certified license-exempt child care center, 
561.9 	residential facility, agency, hospital, sanitarium, or other facility or institution required to 
561.10 	be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter
561.11 	142B,142C, 144H, or 245D;
561.12 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; 
561.13 	or
561.14 	(3) a nonlicensed personal care provider organization as defined in section 256B.0625, 
561.15 	subdivision 19a.

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

561.22 	Sec. 65. Minnesota Statutes 2024, section 260E.30, subdivision 4, is amended to read:
561.23 		Subd. 4.Mitigating factors in investigating facilities. (a) When determining whether 
561.24 	the facility or individual is the responsible party or whether both the facility and the individual 
561.25 	are responsible for determined maltreatment in a facility, the investigating agency shall 
561.26 	consider at least the following mitigating factors:
561.27 	(1) whether the actions of the facility or the individual caregivers were according to, 
561.28 	and followed the terms of, an erroneous physician order, prescription, individual care plan, 
561.29 	or directive; however, this is not a mitigating factor when the facility or caregiver was 
561.30 	responsible for the issuance of the erroneous order, prescription, individual care plan, or 
562.1 	directive or knew or should have known of the errors and took no reasonable measures to 
562.2 	correct the defect before administering care;
562.3 	(2) comparative responsibility between the facility, other caregivers, and requirements 
562.4 	placed upon an employee, including the facility's compliance with related regulatory standards 
562.5 	and the adequacy of facility policies and procedures, facility training, an individual's 
562.6 	participation in the training, the caregiver's supervision, and facility staffing levels and the 
562.7 	scope of the individual employee's authority and discretion; and
562.8 	(3) whether the facility or individual followed professional standards in exercising 
562.9 	professional judgment.
562.10 	(b) The evaluation of the facility's responsibility under paragraph (a), clause (2), must 
562.11 	not be based on the completeness of the risk assessment or risk reduction plan required 
562.12 	under section 245A.66 142B.54, but must be based on the facility's compliance with the 
562.13 	regulatory standards for policies and procedures, training, and supervision as cited in 
562.14 	Minnesota Statutes and Minnesota Rules.
562.15 	(c) Notwithstanding paragraphs (a) and (b), when maltreatment is determined to have 
562.16 	been committed by an individual who is also the facility license holder, both the individual 
562.17 	and the facility must be determined responsible for the maltreatment, and both the background 
562.18 	study disqualification standards under section 245C.15, subdivision 4, and the licensing or 
562.19 	certification actions under section 142B.16, 142B.18, 142C.06, 142C.07, 245A.06, or 
562.20 	245A.07 apply.

562.21 	Sec. 66. Minnesota Statutes 2024, section 260E.33, subdivision 6, is amended to read:
562.22 		Subd. 6.Contested case hearing. If a maltreatment determination or a disqualification 
562.23 	based on serious or recurring maltreatment is the basis for a denial of a license under section
562.24 	142B.15 or245A.05 or a licensing sanction under section 142B.18 or245A.07, the license 
562.25 	holder has the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
562.26 	1400.8505 to 1400.8612. As provided for under section 142B.20, subdivision 3, or245A.08, 
562.27 	subdivision 2a, the scope of the contested case hearing shall include the maltreatment 
562.28 	determination, disqualification, and licensing sanction or denial of a license. In such cases, 
562.29 	a fair hearing regarding the maltreatment determination and disqualification shall not be 
562.30 	conducted under section 256.045. Except for family child care and child foster care, 
562.31 	reconsideration of a maltreatment determination as provided under this subdivision and 
562.32 	reconsideration of a disqualification as provided under section 245C.22 shall also not be 
562.33 	conducted when:
563.1 	(1) a denial of a license under section 142B.15 or245A.05 or a licensing sanction under 
563.2 	section 142B.18 or245A.07 is based on a determination that the license holder is responsible 
563.3 	for maltreatment or the disqualification of a license holder based on serious or recurring 
563.4 	maltreatment;
563.5 	(2) the denial of a license or licensing sanction is issued at the same time as the 
563.6 	maltreatment determination or disqualification; and
563.7 	(3) the license holder appeals the maltreatment determination or disqualification and 
563.8 	denial of a license or licensing sanction.
563.9 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
563.10 	determination or disqualification but does not appeal the denial of a license or a licensing 
563.11 	sanction, reconsideration of the maltreatment determination shall be conducted under 
563.12 	subdivision 2 and section 626.557, subdivision 9d, and reconsideration of the disqualification 
563.13 	shall be conducted under section 245C.22. In such cases, a fair hearing shall also be 
563.14 	conducted as provided under subdivision 2 and sections 245C.27 and 626.557, subdivision 
563.15 	9d.
563.16 	If the disqualified subject is an individual other than the license holder and upon whom 
563.17 	a background study must be conducted under chapter 245C, the hearings of all parties may 
563.18 	be consolidated into a single contested case hearing upon consent of all parties and the 
563.19 	administrative law judge.

563.20 	Sec. 67. Minnesota Statutes 2024, section 261.232, is amended to read:
563.21 	261.232 DUTIES OF COMMISSIONER COMMISSIONERS OF HUMAN 
563.22 	SERVICES AND CHILDREN, YOUTH, AND FAMILIES.
563.23 	The commissioner commissioners of human services and children, youth, and families
563.24 	shall promulgate rules to establish administrative and fiscal procedures for payment of the 
563.25 	state share of the costs incurred by the counties under sections 261.21 to 261.231. The rules 
563.26 	may include:
563.27 	(a) procedures by which state liability for the costs of hospitalization of indigent persons 
563.28 	may be deducted from county liability to the state under any other public assistance program 
563.29 	authorized by law;
563.30 	(b) procedures for processing claims of counties for reimbursement by the state for 
563.31 	expenditures made by the counties for the hospitalization of indigent persons; and
563.32 	(c) standards for eligibility and utilization of medical care.

564.1 	Sec. 68. Minnesota Statutes 2024, section 270B.14, subdivision 1, is amended to read:
564.2 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
564.3 	the commissioner of human services, the commissioner shall disclose return information 
564.4 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
564.5 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
564.6 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
564.7 	employment, income, and property of a person owing or alleged to be owing an obligation 
564.8 	of child support.
564.9 	(c) The commissioner of human services may request data only for the purposes of 
564.10 	carrying out the child support enforcement program and to assist in the location of parents 
564.11 	who have, or appear to have, deserted their children. Data received may be used only as set 
564.12 	forth in section 518A.83.
564.13 	(d) (a) The commissioner shall provide the records and information necessary to 
564.14 	administer the supplemental housing allowance to the commissioner of human services.
564.15 	(e) (b) At the request of the commissioner of human services, the commissioner of 
564.16 	revenue shall electronically match the Social Security or individual taxpayer identification 
564.17 	numbers and names of participants in the telephone assistance plan operated under sections 
564.18 	237.69 to 237.71, with those of property tax refund filers under chapter 290A or renter's 
564.19 	credit filers under section 290.0693, and determine whether each participant's household 
564.20 	income is within the eligibility standards for the telephone assistance plan.
564.21 	(f) (c) The commissioner may provide records and information collected under sections 
564.22 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
564.23 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
564.24 	102-234. Upon the written agreement by the United States Department of Health and Human 
564.25 	Services to maintain the confidentiality of the data, the commissioner may provide records 
564.26 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
564.27 	Medicaid Services section of the United States Department of Health and Human Services 
564.28 	for purposes of meeting federal reporting requirements.
564.29 	(g) (d) The commissioner may provide records and information to the commissioner of 
564.30 	human services as necessary to administer the early refund of refundable tax credits.
564.31 	(h) (e) The commissioner may disclose information to the commissioner of human 
564.32 	services as necessary for income verification for eligibility and premium payment under 
565.1 	the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical 
565.2 	assistance program under chapter 256B.
565.3 	(i) (f) The commissioner may disclose information to the commissioner of human services 
565.4 	necessary to verify whether applicants or recipients for the Minnesota family investment 
565.5 	program, general assistance, the Supplemental Nutrition Assistance Program (SNAP), and 
565.6 	the Minnesota supplemental aid program, and child care assistance have claimed refundable 
565.7 	tax credits under chapter 290 and the property tax refund under chapter 290A, and the 
565.8 	amounts of the credits.
565.9 	(j) (g) At the request of the commissioner of human services and when authorized in 
565.10 	writing by the taxpayer, the commissioner of revenue may match the business legal name 
565.11 	or individual legal name, and the Minnesota tax identification number, federal Employer 
565.12 	Identification Number, or Social Security number of the applicant under section 142C.03; 
565.13 	245A.04, subdivision 1; or 245I.20; or license or certification holder. The commissioner of 
565.14 	revenue may share the matching with the commissioner of human services. The matching 
565.15 	may only be used by the commissioner of human services to determine eligibility for provider 
565.16 	grant programs and to facilitate the regulatory oversight of license and certification holders 
565.17 	as it relates to ownership and public funds program integrity. This paragraph applies only 
565.18 	if the commissioner of human services and the commissioner of revenue enter into an 
565.19 	interagency agreement for the purposes of this paragraph.

565.20 	Sec. 69. Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision 
565.21 	to read:
565.22 		Subd. 24.Disclosure to commissioner of children, youth, and families.  (a) On the 
565.23 	request of the commissioner of children, youth, and families, the commissioner shall disclose 
565.24 	return information regarding taxes imposed by chapter 290, and claims for refunds under 
565.25 	chapter 290A, to the extent provided in paragraph (b) and for the purposes set forth in 
565.26 	paragraph (c).
565.27 	(b) Data may be disclosed relating to the identity, whereabouts, employment, income, 
565.28 	and property of a person owing or alleged to be owing an obligation of child support.
565.29 	(c) The commissioner of children, youth, and families may request data for the purposes 
565.30 	of carrying out the child support program and to assist in the location of parents who have, 
565.31 	or appear to have, deserted their children. Data received may be used only as set forth in 
565.32 	section 518A.83.
566.1 	(d) The commissioner may disclose information to the commissioner of children, youth, 
566.2 	and families necessary to verify whether applicants or recipients for the Minnesota family 
566.3 	investment program, the Supplemental Nutrition Assistance Program, and child care 
566.4 	assistance have claimed refundable tax credits under chapter 290 and the property tax refund 
566.5 	under chapter 290A, and the amounts of the credits.

566.6 	Sec. 70. Minnesota Statutes 2024, section 299C.76, subdivision 1, is amended to read:
566.7 		Subdivision 1.Definitions. (a) For the purposes of this section, the following definitions 
566.8 	apply.
566.9 	(b) "Federal tax information" means federal tax returns and return information or 
566.10 	information derived or created from federal tax returns, in possession of or control by the 
566.11 	requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of 
566.12 	the Internal Revenue Code.
566.13 	(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that 
566.14 	provides guidance and requirements for the protection and confidentiality of federal tax 
566.15 	information as required in section 6103(p)(4) of the Internal Revenue Code.
566.16 	(d) "National criminal history record information" means the Federal Bureau of 
566.17 	Investigation identification records as defined in Code of Federal Regulations, title 28, 
566.18 	section 20.3(d).
566.19 	(e) "Requesting agency" means the Department of Revenue,; Department of Employment 
566.20 	and Economic Development,; Department of Human Services; Department of Children, 
566.21 	Youth, and Families,; board of directors of MNsure,; Department of Information Technology 
566.22 	Services,; attorney general,; and counties.

566.23 	Sec. 71. Minnesota Statutes 2024, section 299F.011, subdivision 4a, is amended to read:
566.24 		Subd. 4a.Day care home regulation. (a) Notwithstanding any contrary provision of 
566.25 	this section, the fire marshal shall not adopt or enforce a rule:
566.26 	(1) establishing staff ratios, age distribution requirements, and limitations on the number 
566.27 	of children in care;
566.28 	(2) regulating the means of egress from family or group family day care homes in addition 
566.29 	to the egress rules that apply to the home as a single family dwelling; or
566.30 	(3) confining family or group family day care home activities to the floor of exit 
566.31 	discharge.
567.1 	(b) For purposes of this subdivision, "family or group family day care home" means a 
567.2 	dwelling unit in which the day care provider provides the services referred to in section 
567.3 	142B.01, subdivision 18, to one or more persons.
567.4 	(c) Nothing in this subdivision prohibits the Department of Children, Youth, and Families 
567.5 	from adopting or enforcing rules regulating day care, including the subjects in paragraph 
567.6 	(a), clauses (1) and (3). The department may not, however, adopt or enforce a rule stricter 
567.7 	than paragraph (a), clause (2).
567.8 	(d) The Department of Human Services Children, Youth, and Families may by rule adopt 
567.9 	procedures for requesting the state fire marshal or a local fire marshal to conduct an 
567.10 	inspection of day care homes to ensure compliance with state or local fire codes.
567.11 	(e) The commissioners of public safety; children, youth, and families; and human services 
567.12 	may enter into an agreement for the commissioner commissioners of human services and 
567.13 	children, youth, and families to perform follow-up inspections of programs, subject to 
567.14 	licensure under chapter 142B or 245A, to determine whether certain violations cited by the 
567.15 	state fire marshal have been corrected. The agreement shall identify specific items the 
567.16 	commissioner of human services is permitted to inspect. The list of items is not subject to 
567.17 	rulemaking and may be changed by mutual agreement between the state fire marshal and 
567.18 	the commissioner. The agreement shall provide for training of individuals who will conduct 
567.19 	follow-up inspections. The agreement shall contain procedures for the commissioner of 
567.20 	human services to follow when the commissioner requires assistance from the state fire 
567.21 	marshal to carry out the duties of the agreement.
567.22 	(f) No tort liability is transferred to the commissioner of human services or the 
567.23 	commissioner of children, youth, and families as a result of the commissioner of human 
567.24 	services commissioners performing activities within the limits of the agreement.

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

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

568.4 	Sec. 74. Minnesota Statutes 2024, section 402A.10, subdivision 4c, is amended to read:
568.5 		Subd. 4c.Performance improvement plan. A "performance improvement plan" means 
568.6 	a plan developed by a county or service delivery authority that describes steps the county 
568.7 	or service delivery authority must take to improve performance on a specific measure or 
568.8 	set of measures. The performance improvement plan must be negotiated with and approved 
568.9 	by the each commissioner who oversees a program affected by the plan. The performance 
568.10 	improvement plan must require a specific numerical improvement in the measure or measures 
568.11 	on which the plan is based and may include specific programmatic best practices or specific 
568.12 	performance management practices that the county must implement.

568.13 	Sec. 75. Minnesota Statutes 2024, section 402A.12, is amended to read:
568.14 	402A.12 ESTABLISHMENT OF A PERFORMANCE MANAGEMENT SYSTEM 
568.15 	FOR HUMAN SERVICES.
568.16 	By January 1, 2014, the commissioner of human services shall implement a performance 
568.17 	management system for essential human services as described in sections 402A.16 and 
568.18 	402A.18 that includes initial performance measures and thresholds consistent with the 
568.19 	recommendations of the Steering Committee on Performance and Outcome Reforms in the 
568.20 	December 2012 report to the legislature.

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

568.26 	Sec. 77. Minnesota Statutes 2024, section 402A.16, subdivision 2, is amended to read:
568.27 		Subd. 2.Duties. The Human Services Performance Council shall:
568.28 	(1) hold meetings at least quarterly that are in compliance with Minnesota's Open Meeting 
568.29 	Law under chapter 13D;
569.1 	(2) annually review the annual performance data submitted by counties or service delivery 
569.2 	authorities;
569.3 	(3) review and advise the commissioner commissioners on department procedures related 
569.4 	to the implementation of the performance management system and system process 
569.5 	requirements and on barriers to process improvement in human services delivery;
569.6 	(4) advise the commissioner commissioners on the training and technical assistance 
569.7 	needs of county or service delivery authority and department personnel;
569.8 	(5) review instances in which a county or service delivery authority has not made adequate 
569.9 	progress on a performance improvement plan and make recommendations to the 
569.10 	commissioner commissioners under section 402A.18;
569.11 	(6) consider appeals from counties or service delivery authorities that are in the remedies 
569.12 	process and make recommendations to the commissioner commissioners on resolving the 
569.13 	issue;
569.14 	(7) convene working groups to update and develop outcomes, measures, and performance 
569.15 	thresholds for the performance management system and, on an annual basis, present these 
569.16 	recommendations to the commissioner commissioners, including recommendations on when 
569.17 	a particular essential human services program has a balanced set of program measures in 
569.18 	place;
569.19 	(8) make recommendations on human services administrative rules or statutes that could 
569.20 	be repealed in order to improve service delivery; and
569.21 	(9) provide information to stakeholders on the council's role and regularly collect 
569.22 	stakeholder input on performance management system performance.

569.23 	Sec. 78. Minnesota Statutes 2024, section 402A.16, subdivision 3, is amended to read:
569.24 		Subd. 3.Membership. (a) Human Services Performance Council membership shall be 
569.25 	equally balanced among the following five stakeholder groups: the Association of Minnesota 
569.26 	Counties,; the Minnesota Association of County Social Service Administrators,; the 
569.27 	Department of Human Services, and the Department of Children, Youth, and Families, 
569.28 	jointly; tribes and communities of color,; and service providers and advocates for persons 
569.29 	receiving human services. The Association of Minnesota Counties and the Minnesota 
569.30 	Association of County Social Service Administrators shall appoint their own respective 
569.31 	representatives. The commissioner of human services commissioners shall each appoint
569.32 	two representatives of the Department of Human Services, their respective department. The 
569.33 	commissioners shall each appoint two representatives from (1) tribes and communities of 
570.1 	color, and (2) social services providers and advocates. Minimum Council membership shall 
570.2 	be 15 20 members, with at least three four representatives from each nondepartmental 
570.3 	stakeholder group, and maximum council membership shall be 20 members, with four 
570.4 	representatives from each stakeholder group.
570.5 	(b) Notwithstanding section 15.059, Human Services Performance Council members 
570.6 	shall be appointed for a minimum of two years, but may serve longer terms at the discretion 
570.7 	of their appointing authority.
570.8 	(c) Notwithstanding section 15.059, members of the council shall receive no compensation 
570.9 	for their services.
570.10 	(d) A commissioner's representative from each commissioner and a county representative 
570.11 	from either the Association of Minnesota Counties or the Minnesota Association of County 
570.12 	Social Service Administrators shall serve as Human Services Performance Council cochairs.

570.13 	Sec. 79. Minnesota Statutes 2024, section 402A.16, subdivision 4, is amended to read:
570.14 		Subd. 4.Commissioner Commissioners' duties. For essential human services 
570.15 	administered by each agency, the commissioner commissioners shall:
570.16 	(1) implement and maintain the performance management system for human services;
570.17 	(2) establish and regularly update the system's outcomes, measures, and thresholds, 
570.18 	including the minimum performance threshold for each performance measure;
570.19 	(3) determine when a particular program has a balanced set of measures;
570.20 	(4) receive reports from counties or service delivery authorities at least annually on their 
570.21 	performance against system measures, provide counties with data needed to assess 
570.22 	performance and monitor progress, and provide timely feedback to counties or service 
570.23 	delivery authorities on their performance;
570.24 	(5) implement and monitor the remedies process in section 402A.18;
570.25 	(6) report to the Human Services Performance Council on county or service delivery 
570.26 	authority performance on a semiannual basis;
570.27 	(7) provide general training and technical assistance to counties or service delivery 
570.28 	authorities on topics related to performance measurement and performance improvement;
570.29 	(8) provide targeted training and technical assistance to counties or service delivery 
570.30 	authorities that supports their performance improvement plans; and
570.31 	(9) provide staff support for the Human Services Performance Council.

571.1 	Sec. 80. Minnesota Statutes 2024, section 402A.18, subdivision 2, is amended to read:
571.2 		Subd. 2.Underperforming county; more than one-half of services. If the commissioner 
571.3 	determines commissioners determine that a county or service delivery authority is deficient 
571.4 	in achieving minimum performance thresholds for more than one-half of the defined essential 
571.5 	human services programs, the commissioner commissioners may impose the following 
571.6 	remedies:
571.7 	(1) voluntary incorporation of the administration and operation of essential human 
571.8 	services programs with an existing service delivery authority or another county. A service 
571.9 	delivery authority or county incorporating an underperforming county shall not be financially 
571.10 	liable for the costs associated with remedying performance outcome deficiencies;
571.11 	(2) mandatory incorporation of the administration and operation of essential human 
571.12 	services programs with an existing service delivery authority or another county. A service 
571.13 	delivery authority or county incorporating an underperforming county shall not be financially 
571.14 	liable for the costs associated with remedying performance outcome deficiencies; or
571.15 	(3) transfer of authority for administration and operation of essential human services 
571.16 	programs to the commissioner that oversees each program.

571.17 	Sec. 81. Minnesota Statutes 2024, section 402A.18, subdivision 3, is amended to read:
571.18 		Subd. 3.Conditions prior to imposing remedies. (a) The commissioner shall notify a 
571.19 	county or service delivery authority that it must submit a performance improvement plan 
571.20 	if:
571.21 	(1) the county or service delivery authority does not meet the minimum performance 
571.22 	threshold for a measure; or
571.23 	(2) the county or service delivery authority has a performance disparity for a racial or 
571.24 	ethnic subgroup, even if the county or service delivery authority met the threshold for the 
571.25 	overall population. The council shall make recommendations on performance disparities, 
571.26 	and the commissioner shall make the final determination.
571.27 	(b) When the department commissioner determines that a county or service delivery 
571.28 	authority does not meet the minimum performance threshold for a given measure, the 
571.29 	commissioner must advise the county or service delivery authority that fiscal penalties may 
571.30 	result if the performance does not improve. The department commissioner must offer 
571.31 	technical assistance to the county or service delivery authority. Within 30 days of the initial 
571.32 	advisement from the department commissioner, the county or service delivery authority 
571.33 	may claim and the department commissioner may approve an extenuating circumstance 
572.1 	that relieves the county or service delivery authority of any further remedy. If a county or 
572.2 	service delivery authority has a small number of participants in an essential human services 
572.3 	program such that reliable measurement is not possible, the commissioner may approve 
572.4 	extenuating circumstances.
572.5 	(c) If there are no extenuating circumstances, the county or service delivery authority 
572.6 	must submit a performance improvement plan to the commissioner within 60 days of the 
572.7 	initial advisement from the department commissioner. The term of the performance 
572.8 	improvement plan must be two years, starting with the date the plan is approved by the 
572.9 	commissioner. This plan must include a target level for improvement for each measure that 
572.10 	did not meet the minimum performance threshold. The commissioner must approve the 
572.11 	performance improvement plan within 60 days of submittal.
572.12 	(d) The department commissioner must monitor the performance improvement plan for 
572.13 	two years. After two years, if the county or service delivery authority meets the minimum 
572.14 	performance threshold, there is no further remedy. If the county or service delivery authority 
572.15 	fails to meet the minimum performance threshold, but meets the improvement target in the 
572.16 	performance improvement plan, the county or service delivery authority shall modify the 
572.17 	performance improvement plan for further improvement and the department commissioner
572.18 	shall continue to monitor the plan.
572.19 	(e) If, after two years of monitoring, the county or service delivery authority fails to 
572.20 	meet both the minimum performance threshold and the improvement target identified in 
572.21 	the performance improvement plan, the next step of the remedies process shall be invoked 
572.22 	by the commissioner. This phase of the remedies process may include:
572.23 	(1) fiscal penalties for the county or service delivery authority that do not exceed one 
572.24 	percent of the county's human services expenditures and that are negotiated in the 
572.25 	performance improvement plan, based on what is needed to improve outcomes. Counties 
572.26 	or service delivery authorities must reinvest the amount of the fiscal penalty into the essential 
572.27 	human services program that was underperforming. A county or service delivery authority 
572.28 	shall not be required to pay more than three fiscal penalties in a year; and
572.29 	(2) the department's commissioner's provision of technical assistance to the county or 
572.30 	service delivery authority that is targeted to address the specific performance issues.
572.31 	The commissioner shall continue monitoring the performance improvement plan for a third 
572.32 	year.
572.33 	(f) If, after the third year of monitoring, the county or service delivery authority meets 
572.34 	the minimum performance threshold, there is no further remedy. If the county or service 
573.1 	delivery authority fails to meet the minimum performance threshold, but meets the 
573.2 	improvement target for the performance improvement plan, the county or service delivery 
573.3 	authority shall modify the performance improvement plan for further improvement and the 
573.4 	department commissioner shall continue to monitor the plan.
573.5 	(g) If, after the third year of monitoring, the county or service delivery authority fails to 
573.6 	meet the minimum performance threshold and the improvement target identified in the 
573.7 	performance improvement plan, the Human Services Performance Council shall review the 
573.8 	situation and recommend a course of action to the commissioner.
573.9 	(h) If the commissioner has determined that a program has a balanced set of program 
573.10 	measures and a county or service delivery authority is subject to fiscal penalties for more 
573.11 	than one-half of the measures for that program, the commissioner may apply further remedies 
573.12 	as described in subdivisions 1 and 2.

573.13 	Sec. 82. Minnesota Statutes 2024, section 402A.18, is amended by adding a subdivision 
573.14 	to read:
573.15 		Subd. 4.Commissioner jurisdiction. For purposes of this section, "commissioner" 
573.16 	means the commissioner of human services or the commissioner of children, youth, and 
573.17 	families, whichever oversees the program or service at issue. If programs or services overseen 
573.18 	by both commissioners are at issue, commissioner means both commissioners jointly. A 
573.19 	commissioner must not take action under this section for a program or service that the 
573.20 	commissioner does not oversee.

573.21 	Sec. 83. Minnesota Statutes 2024, section 402A.35, subdivision 1, is amended to read:
573.22 		Subdivision 1.Requirements for establishing a service delivery authority. (a) A 
573.23 	county, tribe, or consortium of counties is eligible to establish a service delivery authority 
573.24 	if:
573.25 	(1) the county, tribe, or consortium of counties is:
573.26 	(i) a single county with a population of 55,000 or more;
573.27 	(ii) a consortium of counties with a total combined population of 55,000 or more;
573.28 	(iii) a consortium of four or more counties in reasonable geographic proximity without 
573.29 	regard to population; or
573.30 	(iv) one or more tribes with a total combined population of 25,000 or more.
574.1 	The council may recommend that the commissioner of human services commissioners
574.2 	exempt a single county, tribe, or consortium of counties from the minimum population 
574.3 	standard if the county, tribe, or consortium of counties can demonstrate that it can otherwise 
574.4 	meet the requirements of this chapter.
574.5 	(b) A service delivery authority shall:
574.6 	(1) comply with current state and federal law, including any existing federal or state 
574.7 	performance measures when they are enacted into law, except where waivers are approved 
574.8 	by the commissioner commissioners;
574.9 	(2) define the scope of essential services over which the service delivery authority has 
574.10 	jurisdiction;
574.11 	(3) designate a single administrative structure to oversee the delivery of those services 
574.12 	included in a proposal for a redesigned service or services and identify a single administrative 
574.13 	agent for purposes of contact and communication with the department;
574.14 	(4) identify the waivers from statutory or rule program requirements that are needed to 
574.15 	ensure greater local control and flexibility to determine the most cost-effective means of 
574.16 	achieving specified measurable goals that the participating service delivery authority is 
574.17 	expected to achieve;
574.18 	(5) set forth a reasonable level of targeted reductions in overhead and administrative 
574.19 	costs for each service delivery authority participating in the service delivery redesign;
574.20 	(6) set forth the terms under which a county, tribe, or consortium of counties may 
574.21 	withdraw from participation. In the case of withdrawal of any or all parties or the dissolution 
574.22 	of the service delivery authority, the employees shall continue to be represented by the same 
574.23 	exclusive representative or representatives and continue to be covered by the same collective 
574.24 	bargaining union agreement until a new agreement is negotiated or the collective bargaining 
574.25 	agreement term ends; and
574.26 	(7) set forth a structure for managing the terms and conditions of employment of the 
574.27 	employees as provided in section 402A.40.
574.28 	(c) Once a county, tribe, or consortium of counties establishes a service delivery authority, 
574.29 	no county, tribe, or consortium of counties that is a member of the service delivery authority 
574.30 	may participate as a member of any other service delivery authority. The service delivery 
574.31 	authority may allow an additional county, a tribe, or a consortium of counties to join the 
574.32 	service delivery authority subject to the approval of the council and the commissioner
574.33 	commissioners.
575.1 	(d) Nothing in this chapter precludes local governments from using sections 465.81 and 
575.2 	465.82 to establish procedures for local governments to merge, with the consent of the 
575.3 	voters. Nothing in this chapter limits the authority of a county board or tribal council to 
575.4 	enter into contractual agreements for services not covered by the provisions of a 
575.5 	memorandum of understanding establishing a service delivery authority with other agencies 
575.6 	or with other units of government.

575.7 	Sec. 84. Minnesota Statutes 2024, section 402A.35, subdivision 4, is amended to read:
575.8 		Subd. 4.Process for establishing a service delivery authority. (a) The county, tribe, 
575.9 	or consortium of counties meeting the requirements of this section and proposing to establish 
575.10 	a service delivery authority shall present to the council:
575.11 	(1) in conjunction with the commissioner commissioners, a proposed memorandum of 
575.12 	understanding meeting the requirements of subdivision 1, paragraph (b), and outlining:
575.13 	(i) the details of the proposal;
575.14 	(ii) the state, tribal, and local resources, which may include, but are not limited to, 
575.15 	funding, administrative and technology support, and other requirements necessary for the 
575.16 	service delivery authority; and
575.17 	(iii) the relief available to the service delivery authority if the resource commitments 
575.18 	identified in item (ii) are not met; and
575.19 	(2) a board resolution from the board of commissioners of each participating county 
575.20 	stating the county's intent to participate, or in the case of a tribe, a resolution from tribal 
575.21 	government, stating the tribe's intent to participate.
575.22 	(b) After the council has considered and recommended approval of a proposed 
575.23 	memorandum of understanding, the commissioner commissioners may finalize and execute 
575.24 	the memorandum of understanding.

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

576.1 	Sec. 86. Minnesota Statutes 2024, section 462A.2095, subdivision 6, is amended to read:
576.2 		Subd. 6.Rent assistance not income. (a) Notwithstanding any law to the contrary, 
576.3 	payments under this section must not be considered income, assets, or personal property 
576.4 	for purposes of determining eligibility or recertifying eligibility for state public assistance, 
576.5 	including but not limited to:
576.6 	(1) child care assistance programs under chapter 142E;
576.7 	(2) food support under chapter 142F;
576.8 	(2) (3) general assistance, and Minnesota supplemental aid, and food support under 
576.9 	chapter 256D;
576.10 	(3) (4) housing support under chapter 256I;
576.11 	(4) (5) Minnesota family investment program and diversionary work program under 
576.12 	chapter 142G; and
576.13 	(5) (6) economic assistance programs under chapter 256P.
576.14 	(b) The commissioner of human services must not consider rent assistance grant money 
576.15 	under this section as income or assets under section 256B.056, subdivision 1a, paragraph 
576.16 	(a); subdivision 3; or subdivision 3c, or for persons with eligibility determined under section 
576.17 	256B.057, subdivision 3, 3a, or 3b.

576.18 	Sec. 87. Minnesota Statutes 2024, section 466.131, is amended to read:
576.19 	466.131 INDEMNIFICATION BY STATE.
576.20 	Until July 1, 1987, a municipality is an employee of the state for purposes of the 
576.21 	indemnification provisions of section 3.736, subdivision 9, when the municipality is required 
576.22 	by the Public Welfare Licensing Act and rules promulgated under it to inspect or investigate 
576.23 	a provider. After July 1, 1987, a municipality is an employee of the state for purposes of 
576.24 	the indemnification provisions of section 3.736, subdivision 9, when the municipality is 
576.25 	required by sections 245A.01 to 245A.16, the Human Services Licensing Act, or chapter 
576.26 	142B and rules adopted under it to inspect or investigate a provider, and the municipality 
576.27 	has been duly certified under standards for certification developed by the commissioner
576.28 	commissioners of human services and children, youth, and families.

576.29 	Sec. 88. Minnesota Statutes 2024, section 518.165, subdivision 5, is amended to read:
576.30 		Subd. 5.Procedure, criminal history, and maltreatment records background 
576.31 	study. (a) When the court requests a background study under subdivision 4, paragraph (a), 
577.1 	the request shall be submitted to the Department of Human Services through the department's 
577.2 	electronic online background study system.
577.3 	(b) When the court requests a search of the National Criminal Records Repository, the 
577.4 	court must provide a set of classifiable fingerprints of the subject of the study on a fingerprint 
577.5 	card provided by the commissioner of human services.
577.6 	(c) The commissioner of human services shall provide the court with criminal history 
577.7 	data as defined in section 13.87 from the Bureau of Criminal Apprehension in the Department 
577.8 	of Public Safety, other criminal history data held by the commissioner of human services, 
577.9 	and data regarding substantiated maltreatment of a minor under chapter 260E, and 
577.10 	substantiated maltreatment of a vulnerable adult under section 626.557, within 15 working 
577.11 	days of receipt of a request. If the subject of the study has been determined by the Department 
577.12 	of Human Services; the Department of Children, Youth, and Families; or the Department 
577.13 	of Health to be the perpetrator of substantiated maltreatment of a minor or vulnerable adult 
577.14 	in a licensed facility, the response must include a copy of the public portion of the 
577.15 	investigation memorandum under section 260E.30 or the public portion of the investigation 
577.16 	memorandum under section 626.557, subdivision 12b. When the background study shows 
577.17 	that the subject has been determined by a county adult protection or child protection agency 
577.18 	to have been responsible for maltreatment, the court shall be informed of the county, the 
577.19 	date of the finding, and the nature of the maltreatment that was substantiated. The 
577.20 	commissioner shall provide the court with information from the National Criminal Records 
577.21 	Repository within three working days of the commissioner's receipt of the data. When the 
577.22 	commissioner finds no criminal history or substantiated maltreatment on a background 
577.23 	study subject, the commissioner shall make these results available to the court electronically 
577.24 	through the secure online background study system.
577.25 	(d) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
577.26 	or county lead agency or lead investigative agency has information that a person on whom 
577.27 	a background study was previously done under this section has been determined to be a 
577.28 	perpetrator of maltreatment of a minor or vulnerable adult, the commissioner or the county 
577.29 	may provide this information to the court that requested the background study.

577.30 	Sec. 89. Minnesota Statutes 2024, section 524.5-106, is amended to read:
577.31 	524.5-106 SUBJECT-MATTER JURISDICTION.
577.32 	This article applies to, and the court has jurisdiction over, guardianship and related 
577.33 	proceedings for individuals domiciled or present in this state, protective proceedings for 
577.34 	individuals domiciled in or having property located in this state, and property coming into 
578.1 	the control of a guardian or conservator who is subject to the laws of this state. This article 
578.2 	does not apply to any matters or proceedings arising under or governed by chapters 252A, 
578.3 	259, and 260C. Notwithstanding anything else to the contrary, chapters 252A, 259, and 
578.4 	260C exclusively govern the rights, duties, and powers of social service agencies,; the 
578.5 	commissioner of human services,; the commissioner of children, youth, and families; licensed 
578.6 	child placing agencies,; and parties with respect to all matters and proceedings arising under 
578.7 	those chapters.

578.8 	Sec. 90. Minnesota Statutes 2024, section 524.5-118, subdivision 2, is amended to read:
578.9 		Subd. 2.Procedure; maltreatment and state licensing agency checks and criminal 
578.10 	history check. (a) The guardian or conservator shall request the Bureau of Criminal 
578.11 	Apprehension to complete a criminal history check. The request must be accompanied by 
578.12 	the applicable fee and acknowledgment that the guardian or conservator received a privacy 
578.13 	notice. The Bureau of Criminal Apprehension shall conduct a national criminal history 
578.14 	record check. The guardian or conservator shall submit a set of classifiable fingerprints. 
578.15 	The fingerprints must be recorded on a fingerprint card provided by the Bureau of Criminal 
578.16 	Apprehension.
578.17 	(b) The Bureau of Criminal Apprehension shall provide the court with criminal history 
578.18 	data as defined in section 13.87 and criminal history information from other states or 
578.19 	jurisdictions as indicated from a national criminal history record check within 20 working 
578.20 	days of receipt of a request.
578.21 	(c) In accordance with section 245C.033, the commissioner of human services shall 
578.22 	provide the court with data regarding substantiated maltreatment of vulnerable adults under 
578.23 	section 626.557 and substantiated maltreatment of minors under chapter 260E within 25 
578.24 	working days of receipt of a request. If the guardian or conservator has been the perpetrator 
578.25 	of substantiated maltreatment of a vulnerable adult or minor, the response must include a 
578.26 	copy of any available public portion of the investigation memorandum under section 626.557, 
578.27 	subdivision 12b, or any available public portion of the investigation memorandum under 
578.28 	section 260E.30.
578.29 	(d) Notwithstanding section 260E.30 or 626.557, subdivision 12b, if the commissioner 
578.30 	of human services; the commissioner of children, youth, and families; or a county lead 
578.31 	agency or lead investigative agency has information that a person under this section has 
578.32 	been determined to be a perpetrator of maltreatment of a vulnerable adult or minor, the 
578.33 	commissioner or the county may provide this information to the court that is determining 
578.34 	eligibility for the guardian or conservator.

579.1 	Sec. 91. Minnesota Statutes 2024, section 595.02, subdivision 2, is amended to read:
579.2 		Subd. 2.Exceptions. (a) The exception provided by paragraphs (d) and (g) of subdivision 
579.3 	1 shall not apply to any testimony, records, or other evidence relating to the abuse or neglect 
579.4 	of a minor in any proceeding under chapter 260 or any proceeding under section 142B.20 
579.5 	or245A.08, to revoke a day care or foster care license, arising out of the neglect or physical 
579.6 	or sexual abuse of a minor, as defined in section 260E.03.
579.7 	(b) The exception provided by paragraphs (d) and (g) of subdivision 1 shall not apply 
579.8 	to criminal proceedings arising out of the neglect or physical or sexual abuse of a minor, 
579.9 	as defined in section 260E.03, if the court finds that:
579.10 	(1) there is a reasonable likelihood that the records in question will disclose material 
579.11 	information or evidence of substantial value in connection with the investigation or 
579.12 	prosecution; and
579.13 	(2) there is no other practicable way of obtaining the information or evidence. This 
579.14 	clause shall not be construed to prohibit disclosure of the patient record when it supports 
579.15 	the otherwise uncorroborated statements of any material fact by a minor alleged to have 
579.16 	been abused or neglected by the patient; and
579.17 	(3) the actual or potential injury to the patient-health professional relationship in the 
579.18 	treatment program affected, and the actual or potential harm to the ability of the program 
579.19 	to attract and retain patients, is outweighed by the public interest in authorizing the disclosure 
579.20 	sought.
579.21 	No records may be disclosed under this paragraph other than the records of the specific 
579.22 	patient suspected of the neglect or abuse of a minor. Disclosure and dissemination of any 
579.23 	information from a patient record shall be limited under the terms of the order to assure that 
579.24 	no information will be disclosed unnecessarily and that dissemination will be no wider than 
579.25 	necessary for purposes of the investigation or prosecution.

579.26 	Sec. 92. Minnesota Statutes 2024, section 626.5533, is amended to read:
579.27 	626.5533 REPORTING POTENTIAL WELFARE FRAUD.
579.28 		Subdivision 1.Reports required. A peace officer must report to the head of the officer's 
579.29 	department every arrest where the person arrested possesses more than one welfare electronic 
579.30 	benefit transfer card. Each report must include all of the following:
579.31 	(1) the name of the suspect;
579.32 	(2) the suspect's driver's license or state identification card number, where available;
580.1 	(3) the suspect's home address;
580.2 	(4) the number on each card;
580.3 	(5) the name on each electronic benefit card in the possession of the suspect, in cases 
580.4 	where the card has a name printed on it;
580.5 	(6) the date of the alleged offense;
580.6 	(7) the location of the alleged offense;
580.7 	(8) the alleged offense; and
580.8 	(9) any other information the commissioner of human services or the commissioner of 
580.9 	children, youth, and families deems necessary.
580.10 		Subd. 2.Use of information collected. The head of a local law enforcement agency or 
580.11 	state law enforcement department that employs peace officers licensed under section 626.843
580.12 	must forward the report required under subdivision 1 to the commissioner commissioners
580.13 	of human services and children, youth, and families within 30 days of receiving the report. 
580.14 	The commissioner commissioners of human services and children, youth, and families shall 
580.15 	use the report to determine whether the suspect is authorized to possess any of the electronic 
580.16 	benefit cards found in the suspect's possession.
580.17 		Subd. 3.Reporting forms. The commissioner commissioners of human services and 
580.18 	children, youth, and families, in consultation with the superintendent of the Bureau of 
580.19 	Criminal Apprehension, shall adopt reporting forms to be used by law enforcement agencies 
580.20 	in making the reports required under this section.

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

580.25 	Sec. 94. REVISOR INSTRUCTION.
 580.26 	The revisor of statutes must move the subdivisions in Minnesota Statutes, section 
580.27 	142E.50, into Minnesota Statutes, section 142E.01, renumber in alphabetical order, and 
580.28 	make any necessary changes to statutory cross-references to reflect these changes.

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

581.4 	ARTICLE 22
581.5 	MISCELLANEOUS

581.6 	Section 1. Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
581.7 		Subdivision 1.Administration of plan. (a) The association is Minnesota's reinsurance 
581.8 	entity to administer the state-based reinsurance program referred to as the Minnesota premium 
581.9 	security plan.
581.10 	(b) The association may apply for any available federal funding for the plan. All funds 
581.11 	received by or appropriated to the association shall be deposited in the premium security 
581.12 	plan account in section 62E.25, subdivision 1. The association shall notify the chairs and 
581.13 	ranking minority members of the legislative committees with jurisdiction over health and 
581.14 	human services and insurance within ten days of receiving any federal funds.
581.15 	(c) The association must collect or access data from an eligible health carrier that are 
581.16 	necessary to determine reinsurance payments, according to the data requirements under 
581.17 	subdivision 5, paragraph (c).
581.18 	(d) The board must not use any funds allocated to the plan for staff retreats, promotional 
581.19 	giveaways, excessive executive compensation, or promotion of federal or state legislative 
581.20 	or regulatory changes.
581.21 	(e) For each applicable benefit year, the association must notify eligible health carriers 
581.22 	of reinsurance payments to be made for the applicable benefit year no later than June 30 of 
581.23 	the year following the applicable benefit year.
581.24 	(f) On a quarterly basis during the applicable benefit year, the association must provide 
581.25 	each eligible health carrier with the calculation of total reinsurance payment requests.
581.26 	(g) By August 15 of the year following the applicable benefit year, through August 15, 
581.27 	2026, the association must disburse all applicable reinsurance payments to an eligible health 
581.28 	carrier.
581.29 	(h) The association must disburse applicable reinsurance payments for claims costs 
581.30 	incurred by eligible health carriers through December 31, 2025. Reinsurance payments are 
581.31 	not available to eligible health carriers for claims costs incurred after December 31, 2025.

582.1 	Sec. 2. [62V.15] DEFINITIONS; PREMIUM SUBSIDY PROGRAM.
582.2 		Subdivision 1.Scope. For purposes of sections 62V.15 to 62V.18, the following terms 
582.3 	have the meanings given.
582.4 		Subd. 2.Assessment. "Assessment" means the amount a health plan company must pay 
582.5 	for operational costs, administrative costs, and premium subsidy payments for the premium 
582.6 	subsidy program established under section 62V.16.
582.7 		Subd. 3.Commissioner. "Commissioner" means the commissioner of management and 
582.8 	budget.
582.9 		Subd. 4.Eligible individual. (a) "Eligible individual" means a Minnesota resident who:
582.10 	(1) is not eligible for an advance premium tax credit under Code of Federal Regulations, 
582.11 	title 26, part 1.36B-2, in a month in which the eligible individual's coverage is effective;
582.12 	(2) is not enrolled in public program coverage under chapters 256B and 256L; and
582.13 	(3) purchased an individual health plan, as defined in section 62A.011.
582.14 	(b) "Eligible individual" includes a person required to repay an advanced premium tax 
582.15 	credit because the person's income was subsequently determined to exceed the maximum 
582.16 	permissible amount to qualify as an applicable taxpayer under Code of Federal Regulations, 
582.17 	title 26, part 1.36B-2.
582.18 		Subd. 5.Gross premium. "Gross premium" means the amount billed for a health plan 
582.19 	purchased by an eligible individual prior to a premium subsidy in a calendar year.
582.20 		Subd. 6.Health plan company. "Health plan company" has the meaning given in section 
582.21 	62Q.01.
582.22 		Subd. 7.Net premium. "Net premium" means the gross premium less the premium 
582.23 	subsidy.
582.24 		Subd. 8.Premium subsidy. "Premium subsidy" means a payment (1) made on behalf 
582.25 	of an eligible individual to promote general welfare, and (2) that is not compensation for a 
582.26 	service rendered.

582.27 	Sec. 3. [62V.16] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE 
582.28 	INDIVIDUALS.
582.29 		Subdivision 1.Program established. Beginning January 1, 2026, the board of directors 
582.30 	of MNsure, in consultation with the commissioners of commerce and human services, must 
583.1 	establish and administer the premium subsidy program authorized by this section to help 
583.2 	eligible individuals pay for coverage in the individual market.
583.3 		Subd. 2.Premium subsidy provided. (a) A health carrier must provide a premium 
583.4 	subsidy to each eligible individual who purchases an individual health plan from the health 
583.5 	carrier. The premium subsidy must be provided for each month the net premium is paid. 
583.6 	An eligible individual must pay the net premium amount to the health carrier.
583.7 	(b) Each premium subsidy must be equal to 20 percent of the monthly gross premium 
583.8 	otherwise paid by or on behalf of the eligible individual for coverage purchased in the 
583.9 	individual market that covers the eligible individual and the eligible individual's spouse and 
583.10 	dependents.
583.11 	(c) The premium subsidy must be excluded from a calculation used to determine eligibility 
583.12 	for a Department of Human Services or Department of Children, Youth, and Families 
583.13 	program.
583.14 		Subd. 3.Payments to health carriers. (a) The commissioner must make payments by 
583.15 	September 30 to health carriers on behalf of eligible individuals for the months during the 
583.16 	prior calendar year for which the individual has paid the net premium amount to the health 
583.17 	carrier. The amount of the commissioner's payments to health carriers must be in the amounts 
583.18 	provided to the commissioner by the board under paragraph (c). The commissioner must 
583.19 	not withhold payment because a health carrier cannot prove an enrollee is an eligible 
583.20 	individual.
583.21 	(b) In order to be eligible for payment, a health carrier seeking reimbursement from the 
583.22 	board must submit an invoice and supporting information to the board, using a form 
583.23 	developed by the board. The form must require the health carrier to identify the number of 
583.24 	eligible individuals for which the health carrier is seeking reimbursement, the average gross 
583.25 	premium for eligible individuals, and the aggregate amount of reimbursement claimed by 
583.26 	the health carrier for premium subsidies under this section. The board must finalize the form 
583.27 	by November 1, 2025.
583.28 	(c) The board must provide the commissioner, based on the information received by the 
583.29 	board from the health carriers pursuant to paragraph (b), the payment amount owed to each 
583.30 	health carrier.
583.31 	(d) The board must consider a health carrier as a vendor under section 16A.124, 
583.32 	subdivision 3, and each monthly invoice must represent the services that have been completed 
583.33 	or delivered.
584.1 	(e) The commissioner, in consultation with the board, may withhold payments and charge 
584.2 	back payments to recover from health carriers premium subsidies provided but that do not 
584.3 	comply with the applicable legal requirements of this section.
584.4 		Subd. 4.Assessment. (a) An annual assessment is imposed on health plan companies 
584.5 	for each calendar year beginning in calendar year 2026. The commissioner of commerce 
584.6 	must establish the annual assessment for each health plan company in an amount such that 
584.7 	the aggregate assessment amount collected from health plan companies under this subdivision 
584.8 	equals the amount necessary for the premium subsidy program established under subdivision 
584.9 	1.
584.10 	(b) By March 1 each year, the commissioner of commerce must consult with the board 
584.11 	of directors of MNsure and provide each health plan company with an estimate of the 
584.12 	company assessment for the current calendar year.
584.13 	(c) By May 31 each year, the commissioner of commerce, in consultation with the board 
584.14 	of directors of MNsure, must notify each health plan company of the company's assessment 
584.15 	for the current calendar year.
584.16 	(d) By June 30 each year, the commissioner of commerce must collect assessments from 
584.17 	health plan companies to pay for the premium subsidy program established under this 
584.18 	section.
584.19 		Subd. 5.Data practices. (a) The definitions in section 13.02 apply to this subdivision.
584.20 	(b) Government data on an enrollee or health carrier under this section are private data 
584.21 	on individuals or nonpublic data, except that the total reimbursement requested by a health 
584.22 	carrier and the total state payment to the health carrier are public data.

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

584.27 	Sec. 5. [62V.18] PREMIUM SUBSIDY PROGRAM ACCOUNT.
584.28 		Subdivision 1.Account established. The premium subsidy program account is created 
584.29 	in the special revenue fund in the state treasury.
585.1 		Subd. 2.Collected assessments. The commissioner of commerce must deposit the 
585.2 	assessments collected under section 62V.16, subdivision 4, in the premium subsidy program 
585.3 	account created under subdivision 1.
585.4 		Subd. 3.Appropriations. Money in the premium subsidy program account is annually 
585.5 	appropriated:
585.6 	(1) to the commissioner of management and budget for the payments to health carriers 
585.7 	on behalf of eligible individuals under section 62V.16, subdivision 3; and
585.8 	(2) to the board of directors of MNsure for operational and administrative costs for the 
585.9 	premium subsidy program established under section 62V.16.

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

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

585.18 	Sec. 7. Minnesota Statutes 2024, section 151.741, subdivision 5, is amended to read:
585.19 		Subd. 5.Insulin repayment account; annual transfer from health care access fund. (a) 
585.20 	The insulin repayment account is established in the special revenue fund in the state treasury. 
585.21 	Money in the account is appropriated each fiscal year to the commissioner of administration 
585.22 	to reimburse manufacturers for insulin dispensed under the insulin safety net program in 
585.23 	section 151.74, in accordance with section 151.74, subdivisions 3, paragraph (h), and 6, 
585.24 	paragraph (h), and to cover costs incurred by the commissioner in providing these 
585.25 	reimbursement payments.
585.26 	(b) By June 30, 2025, and each June 30 thereafter, the commissioner of administration 
585.27 	shall certify to the commissioner of management and budget the total amount expended in 
585.28 	the prior fiscal year for:
585.29 	(1) reimbursement to manufacturers for insulin dispensed under the insulin safety net 
585.30 	program in section 151.74, in accordance with section 151.74, subdivisions 3, paragraph 
585.31 	(h), and 6, paragraph (h); and
586.1 	(2) costs incurred by the commissioner of administration in providing the reimbursement 
586.2 	payments described in clause (1).
586.3 	(c) The commissioner of management and budget shall transfer from the health care 
586.4 	access fund to the special revenue fund insulin repayment account, beginning July 1, 2025, 
586.5 	and each July 1 thereafter, an amount equal to the amount to which the commissioner of 
586.6 	administration certified pursuant to paragraph (b).

586.7 	Sec. 8. Minnesota Statutes 2024, section 256.01, is amended by adding a subdivision to 
586.8 	read:
586.9 		Subd. 44.Notification of federal approval; report. (a) For any provision over which 
586.10 	the commissioner has jurisdiction and that has an effective date contingent upon federal 
586.11 	approval, whether the contingency is expressed in an effective date, in the text of a statutory 
586.12 	provision, or in the text of an uncodified section of session law, the commissioner must 
586.13 	notify the revisor of statutes of which enacted provisions contain such contingent federal 
586.14 	approval and when federal approval is obtained for any such provision according to 
586.15 	paragraphs (b) and (c).
586.16 	(b) By July 1 of each year, the commissioner must provide the revisor of statutes; the 
586.17 	director of the House Research Department; and the director of Senate Counsel, Research 
586.18 	and Fiscal Analysis with a report containing a complete list of all provisions enacted since 
586.19 	the preceding July 1 with an effective date contingent on federal approval.
586.20 	(c) By September 1 of each year, the commissioner must provide the revisor of statutes; 
586.21 	the director of the House Research Department; and the director of Senate Counsel, Research 
586.22 	and Fiscal Analysis with a report containing a complete list of all statutory provisions 
586.23 	previously enacted with an effective date contingent on federal approval. The commissioner 
586.24 	must identify in the report which, if any, provisions received federal approval since the 
586.25 	preceding September 1 and the date that federal approval for each provision was received. 
586.26 	If no provisions have received federal approval since the preceding September 1, the report 
586.27 	must state that fact. The revisor of statutes may authorize the commissioner to remove 
586.28 	federally approved provisions from subsequent reports submitted.
586.29 	(d) The reports in paragraphs (b) and (c) must be provided in a form prescribed by the 
586.30 	revisor of statutes.
586.31 	(e) An employee in the Department of Human Services who is responsible for identifying 
586.32 	and tracking federal approval of provisions must attest to the accuracy of the reports in a 
586.33 	manner prescribed by the revisor of statutes.

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

587.2 	Sec. 9. Minnesota Statutes 2024, section 256B.051, subdivision 3, is amended to read:
587.3 		Subd. 3.Eligibility. An individual with a disability is eligible for housing stabilization 
587.4 	services if the individual:
587.5 	(1) is 18 years of age or older;
587.6 	(2) is enrolled in medical assistance;
587.7 	(3) has income at or below 150 percent of the federal poverty level;
587.8 	(4) has an assessment of functional need that determines a need for services due to 
587.9 	limitations caused by the individual's disability;
587.10 	(4) (5) resides in or plans to transition to a community-based setting as defined in Code 
587.11 	of Federal Regulations, title 42, section 441.301 (c); and
587.12 	(5) (6) has housing instability evidenced by:
587.13 	(i) being homeless or at-risk of homelessness;
587.14 	(ii) being in the process of transitioning from, or having transitioned in the past six 
587.15 	months from, an institution or licensed or registered setting;
587.16 	(iii) being eligible for waiver services under chapter 256S or section 256B.092 or 
587.17 	256B.49; or
587.18 	(iv) having been identified by a long-term care consultation under section 256B.0911 
587.19 	as at risk of institutionalization.

587.20 	Sec. 10. [306.991] GREEN BURIALS IN PUBLIC CEMETERIES.
587.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
587.22 	the meanings given.
587.23 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
587.24 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
587.25 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
587.26 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
587.27 	14.
587.28 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
588.1 		Subd. 2.Green burial requirements. A municipality, town, or other cemetery governed 
588.2 	by this chapter that allows for green burials must comply with the requirements of this 
588.3 	section.
588.4 		Subd. 3.Green burial plot locations. (a) Green burial plots must meet the following 
588.5 	criteria:
588.6 	(1) be set back 50 feet from property lines;
588.7 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
588.8 	level;
588.9 	(3) not be in standing water;
588.10 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
588.11 	supply well, or a shaft drilled into the ground meant to extract water; and
588.12 	(5) not be within flood-prone areas.
588.13 	(b) Green burial plot locations must be a certain distance from water sources. Green 
588.14 	burial plot locations must be:
588.15 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
588.16 	water;
588.17 	(2) 100 feet from other springs or watercourses; and
588.18 	(3) 33 feet from drainage systems.
588.19 		Subd. 4.Exception. A property with green burial plots in a designated location on or 
588.20 	before July 1, 2025, does not need to comply with the requirement of subdivision 3, paragraph 
588.21 	(a), clause (1).
588.22 		Subd. 5.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
588.23 	one-half feet from the base of the grave to the soil horizon.
588.24 	(b) Green burials must have three and one-half feet of cover.
588.25 		Subd. 6.Burial density. Green burial plots must be a maximum of 300 burials per acre 
588.26 	over a 100 year period.

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

588.28 	Sec. 11. [306.992] SCATTERING OF HYDROLYZED OR CREMATED REMAINS.
588.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
588.30 	the meanings given.
589.1 	(b) "Cremated remains" has the meaning given in section 149A.02, subdivision 7.
589.2 	(c) "Hydrolyzed remains" has the meaning given in section 149A.02, subdivision 24a.
589.3 		Subd. 2.Designated location. A municipality, town, or other cemetery governed by 
589.4 	this chapter that allows for scattering of hydrolyzed remains or cremated remains must 
589.5 	designate a location within the cemetery for the scattering of hydrolyzed remains or cremated 
589.6 	remains.

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

589.8 	Sec. 12. [307.14] GREEN BURIALS IN PRIVATE CEMETERIES.
589.9 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
589.10 	the meanings given.
589.11 	(b) "Drainage system" has the meaning given in section 103E.005, subdivision 12.
589.12 	(c) "Green burial" has the meaning given in section 149A.02, subdivision 42.
589.13 	(d) "Natural watercourse" has the meaning given in section 103G.005, subdivision 13.
589.14 	(e) "Ordinary high-water level" has the meaning given in section 103G.005, subdivision 
589.15 	14.
589.16 	(f) "Water supply well" has the meaning given in section 103I.005, subdivision 20a.
589.17 		Subd. 2.Green burial requirements. A person who owns a cemetery governed by this 
589.18 	chapter that allows for green burials must comply with the requirements of this section.
589.19 		Subd. 3.Green burial plot locations. (a) Green burial plots must meet the following 
589.20 	criteria:
589.21 	(1) be set back 50 feet from property lines;
589.22 	(2) maintain at least three and one-half feet clearance above the ordinary high-water 
589.23 	level;
589.24 	(3) not be in standing water;
589.25 	(4) not be within zone 1 groundwater source protection zones around a spring, water 
589.26 	supply well, or a shaft drilled into the ground meant to extract water; and
589.27 	(5) not be within flood-prone areas.
589.28 	(b) Green burial plot locations must be a certain distance from water sources. Green 
589.29 	burial plot locations must be:
590.1 	(1) 50 feet from water supply wells and shafts drilled into the ground used to extract 
590.2 	water;
590.3 	(2) 100 feet from other springs or watercourses; and
590.4 	(3) 33 feet from drainage systems.
590.5 		Subd. 4.Exception. A property with green burial plots in a designated location on or 
590.6 	before July 1, 2025, does not need to comply with the requirement of subdivision 3, paragraph 
590.7 	(a), clause (1).
590.8 		Subd. 5.Burial depth. (a) Green burial plots must be at a minimum depth of three and 
590.9 	one-half feet from the base of the grave to the soil horizon.
590.10 	(b) Green burials must have three and one-half feet of cover.
590.11 		Subd. 6.Burial density. Green burial plots must be a maximum of 300 burials per acre 
590.12 	over a 100 year period.

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

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

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

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

590.24
590.25	Sec. 6. COMMISSIONER OF MANAGEMENT 
AND BUDGET

590.26	Appropriations by Fund
	
590.27		2024
	2025
	
590.28	General
	-0-
	(232,000)
	
590.29	Health Care Access
	-0-
	100,000
	
591.1 	(a) Insulin safety net program. $100,000 in 
591.2 	fiscal year 2025 is from the health care access 
591.3 	fund for the insulin safety net program in 
591.4 	Minnesota Statutes, section 151.74.
591.5 	(b) Transfer. The commissioner must transfer 
591.6 	from the health care access fund to the insulin 
591.7 	safety net program repayment account in the 
591.8 	special revenue fund the amount certified by 
591.9 	the commissioner of administration under 
591.10 	Minnesota Statutes, section 151.741, 
591.11 	subdivision 5, paragraph (b), estimated to be 
591.12 	$100,000 in fiscal year 2025, for 
591.13 	reimbursement to manufacturers for insulin 
591.14 	dispensed under the insulin safety net program 
591.15 	in Minnesota Statutes, section 151.74. The 
591.16 	base for this transfer is estimated to be 
591.17 	$100,000 in fiscal year 2026 and $100,000 in 
591.18 	fiscal year 2027.
591.19 	(c) Base Level Adjustment. The health care 
591.20 	access fund base is increased by $100,000 in 
591.21 	fiscal year 2026 and increased by $100,000 in 
591.22 	fiscal year 2027.

591.23 	Sec. 15. TRANSFERS TO THE DEPARTMENT OF CHILDREN, YOUTH, AND 
591.24 	FAMILIES IN UNCODIFIED LAW.
 591.25 	Any power, duty, or responsibility given to the commissioner of human services or the 
591.26 	Department of Human Services in an uncodified section of Laws of Minnesota that is a part 
591.27 	of, necessary for, or in service of a power, duty, or responsibility transferred in Laws 2023, 
591.28 	chapter 70, article 12, section 30, or Laws 2024, chapter 80, transfers to the commissioner 
591.29 	of children, youth, and families or the Department of Children, Youth, and Families upon 
591.30 	the notice of transfer of the underlying power, duty, or responsibility required in Laws 2023, 
591.31 	chapter 70, article 12, section 30, subdivision 1. This section applies to uncodified sections 
591.32 	of Laws of Minnesota enacted before and after Laws 2023, chapter 70, including but not 
591.33 	limited to Laws 2024, chapter 117, sections 16 to 22.

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

592.6 	Sec. 17. DIRECTION TO THE COMMISSIONER OF CHILDREN, YOUTH, AND 
592.7 	FAMILIES; CHILD CARE AND DEVELOPMENT BLOCK GRANT 
592.8 	ALLOCATIONS.
 592.9 	(a) The commissioner of children, youth, and families shall allocate $1,000,000 in fiscal 
592.10 	year 2026 and $1,000,000 in fiscal year 2027 from the child care and development block 
592.11 	grant for child care improvement grants under Minnesota Statutes, section 142D.20, 
592.12 	subdivision 3, paragraph (a), clause (7). This is a onetime allocation.
592.13 	(b) The commissioner of children, youth, and families shall allocate $55,000 in fiscal 
592.14 	year 2026, $639,000 in fiscal year 2027, $1,639,000 in fiscal year 2028, and $1,638,000 in 
592.15 	fiscal year 2029 from the child care and development block grant for the development of a 
592.16 	statewide electronic attendance and record keeping system for the child care assistance 
592.17 	program.
592.18 	(c) The commissioner of children, youth, and families shall allocate $1,419,000 in fiscal 
592.19 	year 2026, $4,221,000 in fiscal year 2027, $4,791,000 in fiscal year 2028, and $4,885,000 
592.20 	in fiscal year 2029 from the child care and development block grant for MFIP child care 
592.21 	assistance to comply with federal requirements.
592.22 	(d) The commissioner of children, youth, and families shall allocate $2,662,000 in fiscal 
592.23 	year 2026, $5,479,000 in fiscal year 2027, $5,482,000 in fiscal year 2028, and $5,196,000 
592.24 	in fiscal year 2029 from the child care and development block grant for basic sliding fee 
592.25 	child care assistance to comply with federal requirements.

592.26 	Sec. 18. DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND 
592.27 	FAMILIES; ALLOCATION OF TANF-ELIGIBLE GENERAL FUND 
592.28 	EXPENDITURES.
 592.29 	The commissioner of children, youth, and families must identify $4,000,000 in fiscal 
592.30 	year 2026, $4,000,000 in fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 
592.31 	in fiscal year 2029 of general fund expenditures attributable to eligible activities under 
592.32 	Minnesota Statutes, chapter 142G, and reduce general fund expenditures by the same 
593.1 	amounts. The commissioner must allocate $4,000,000 in fiscal year 2026, $4,000,000 in 
593.2 	fiscal year 2027, $4,000,000 in fiscal year 2028, and $4,000,000 in fiscal year 2029 to 
593.3 	eligible activities under Minnesota Statutes, chapter 142G, to the TANF fund.

593.4 	Sec. 19. DIRECTION TO THE COMMISSIONERS OF HEALTH; HUMAN 
593.5 	SERVICES; AND CHILDREN, YOUTH, AND FAMILIES; REPORTS ON GRANT 
593.6 	FUNDING.
 593.7 	(a) Beginning January 15, 2026, and each odd-numbered year thereafter, the 
593.8 	commissioners of health; human services; and children, youth, and families must each 
593.9 	submit a report that contains an accurate list of all grants with money appropriated in the 
593.10 	preceding fiscal year and appropriated for the current biennium and the following biennium 
593.11 	that are administered by each commissioner and must include for each grant:
593.12 	(1) the name of the grant;
593.13 	(2) a description of the grant, including the eligibility criteria of grantees and the purpose 
593.14 	of the grant;
593.15 	(3) the amount appropriated in each fiscal year that supports the total appropriation for 
593.16 	each grant budget activity for the November forecast in each even-numbered year; and
593.17 	(4) the accurate and complete statutory or Minnesota Laws citation for the authority for 
593.18 	the grant.
593.19 	(b) The commissioner of health must submit the report in paragraph (a) to the chairs and 
593.20 	ranking minority members of the legislative committees with jurisdiction over health, and 
593.21 	to the director of the House Research Department, the chief fiscal analyst of the House 
593.22 	Fiscal Analysis Department, and the director and principal fiscal analyst of Senate Counsel, 
593.23 	Research and Fiscal Analysis.
593.24 	(c) The commissioner of human services must submit the report in paragraph (a) to the 
593.25 	chairs and ranking minority members of the legislative committees with jurisdiction over 
593.26 	human services, and to the director of the House Research Department, the chief fiscal 
593.27 	analyst of the House Fiscal Analysis Department, and the director and principal fiscal analyst 
593.28 	of Senate Counsel, Research and Fiscal Analysis.
593.29 	(d) The commissioner of children, youth, and families must submit the report in paragraph 
593.30 	(a) to the chairs and ranking minority members of the legislative committees with jurisdiction 
593.31 	over children, youth, and families, and to the director of the House Research Department, 
593.32 	the chief fiscal analyst of the House Fiscal Analysis Department, and the director and 
593.33 	principal fiscal analyst of Senate Counsel, Research and Fiscal Analysis.

594.1 	Sec. 20. REVISOR INSTRUCTION.
 594.2 	By February 1, 2026, the revisor of statutes must identify any changes to Minnesota 
594.3 	Statutes and Minnesota Rules necessary to reflect the expiration of the Minnesota premium 
594.4 	security plan and the premium security account. The revisor of statutes may submit to the 
594.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
594.6 	commerce finance and policy draft legislation with the statutory changes necessary to 
594.7 	implement the identified changes.

594.8 	Sec. 21. REPEALER.
 594.9 	Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; and 62E.25, are 
594.10 	repealed.

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

594.12 	ARTICLE 23
594.13 	FORECAST ADJUSTMENTS

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

594.21				APPROPRIATIONS
	
594.22				Available for the Year
	
594.23				Ending June 30
	
594.24					2025

594.25
594.26	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

594.27	Subdivision 1.Total Appropriation
 	$
	(224,693,000)

594.28	Appropriations by Fund
	
594.29		2025
		
594.30	General
	(202,264,000)
		
594.31	Health Care Access
	(17,144,000)
		
594.32	Federal TANF
	(5,285,000)

595.1	Subd. 2.Forecasted Programs
 					
595.2
595.3
595.4
595.5	(a) Minnesota Family 
Investment Program 
(MFIP)/Diversionary Work 
Program (DWP)

595.6	Appropriations by Fund
	
595.7		2025
		
595.8	General
	(5,238,000)
		
595.9	Federal TANF
	(5,285,000)

595.10	(b) MFIP Child Care Assistance
		(57,918,000)

595.11	(c) General Assistance
		1,932,000

595.12	(d) Minnesota Supplemental Aid
		3,278,000

595.13	(e) Housing Support
		9,569,000

595.14	(f) Northstar Care for Children
		(9,006,000)

595.15	(g) MinnesotaCare
		(16,701,000)
			
595.16 	This appropriation is from the health care 
595.17 	access fund.

595.18	(h) Medical Assistance

595.19	Appropriations by Fund
	
595.20		2025
		
595.21	General
	(155,544,000)
		
595.22	Health Care Access
	(443,000)

595.23	(i) Behavioral Health Fund
		10,633,000

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

595.26 	ARTICLE 24
595.27 	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS

595.28	Section 1. HUMAN SERVICES APPROPRIATIONS.
 	
595.29 	The sums shown in the columns marked "Appropriations" are appropriated to the 
595.30 	commissioner of human services for the purposes specified in this article. The appropriations 
595.31 	are from the general fund, or another named fund, and are available for the fiscal years 
595.32 	indicated for each purpose. The figures "2026" and "2027" used in this article mean that 
596.1 	the appropriations listed under them are available for the fiscal year ending June 30, 2026, 
596.2 	or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is 
596.3 	fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

596.4				APPROPRIATIONS
	
596.5				Available for the Year
	
596.6				Ending June 30
	
596.7					2026
		2027

596.8
596.9	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES
 	$
	3,270,735,000
	$
	3,436,450,000

596.10	Subdivision 1.Total Appropriation

596.11	Appropriations by Fund
	
596.12		2026
	2027
	
596.13	General
	1,954,922,000
	2,172,448,000
	
596.14
596.15	State Government 
Special Revenue
	4,273,000
	4,273,000
	
596.16	Health Care Access
	1,311,183,000
	1,259,372,000
	
596.17	Lottery Prize
	163,000
	163,000
	
596.18
596.19	Family and Medical 
Benefit Insurance
	194,000
	194,000
	
596.20 	The amounts that may be spent for each 
596.21 	purpose are specified in this article.

596.22	Subd. 2.Information Technology Appropriations
 					
596.23 	(a) IT appropriations generally. This 
596.24 	appropriation includes money for information 
596.25 	technology projects, services, and support. 
596.26 	Funding for information technology project 
596.27 	costs must be incorporated into the 
596.28 	service-level agreement and paid to Minnesota 
596.29 	IT Services by the Department of Human 
596.30 	Services under the rates and mechanism 
596.31 	specified in that agreement.
596.32 	(b) Receipts for systems project.
596.33 	Appropriations and federal receipts for 
597.1 	information technology systems projects for 
597.2 	MMIS and METS must be deposited in the 
597.3 	state systems account authorized in Minnesota 
597.4 	Statutes, section 256.014. Money appropriated 
597.5 	for information technology projects approved 
597.6 	by the commissioner of Minnesota IT 
597.7 	Services, funded by the legislature, and 
597.8 	approved by the commissioner of management 
597.9 	and budget may be transferred from one 
597.10 	project to another and from development to 
597.11 	operations as the commissioner of human 
597.12 	services deems necessary. Any unexpended 
597.13 	balance in the appropriation for these projects 
597.14 	does not cancel and is available for ongoing 
597.15 	development and operations.

597.16	Sec. 3. CENTRAL OFFICE; OPERATIONS

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

597.18	Appropriations by Fund
	
597.19	General
	145,200,000
	148,935,000
	
597.20
597.21	State Government 
Special Revenue
	248,000
	248,000
	
597.22	Health Care Access
	21,408,000
	22,935,000
	
597.23
597.24	Family and Medical 
Benefits Insurance
	194,000
	194,000

597.25	Subd. 2.Administrative Recovery; Set-Aside
 					
597.26 	The commissioner may invoice local entities 
597.27 	through the SWIFT accounting system as an 
597.28 	alternative means to recover the actual cost of 
597.29 	administering the following provisions:
597.30 	(1) the statewide data management system 
597.31 	authorized in Minnesota Statutes, section 
597.32 	125A.744, subdivision 3;
597.33 	(2) repayment of the special revenue 
597.34 	maximization account as provided under 
598.1 	Minnesota Statutes, section 245.495, 
598.2 	paragraph (b);
598.3 	(3) repayment of the special revenue 
598.4 	maximization account as provided under 
598.5 	Minnesota Statutes, section 256B.0625, 
598.6 	subdivision 20, paragraph (k);
598.7 	(4) targeted case management under 
598.8 	Minnesota Statutes, section 256B.0924, 
598.9 	subdivision 6, paragraph (g);
598.10 	(5) residential services for children with severe 
598.11 	emotional disturbance under Minnesota 
598.12 	Statutes, section 256B.0945, subdivision 4, 
598.13 	paragraph (d); and
598.14 	(6) repayment of the special revenue 
598.15 	maximization account as provided under 
598.16 	Minnesota Statutes, section 256F.10, 
598.17 	subdivision 6, paragraph (b).

598.18	Subd. 3.Family and Medical Benefit Insurance
 					
598.19 	$194,000 in fiscal year 2026 and $194,000 in 
598.20 	fiscal year 2027 are from the family and 
598.21 	medical benefit insurance fund for systems 
598.22 	costs to administer Minnesota Statutes, chapter 
598.23 	268B.

598.24	Subd. 4.Base Level Adjustment
 					
598.25 	The general fund base for this section is 
598.26 	$149,621,000 in fiscal year 2028 and 
598.27 	$150,581,000 in fiscal year 2029.

598.28	Sec. 4. CENTRAL OFFICE; HEALTH CARE

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

598.30	Appropriations by Fund
	
598.31	General
	38,659,000
	34,612,000
	
598.32	Health Care Access
	28,168,000
	28,168,000

599.1	Subd. 2.Base Level Adjustment
 					
599.2 	The general fund base for this section is 
599.3 	$34,639,000 in fiscal year 2028 and 
599.4 	$34,639,000 in fiscal year 2029.

599.5
599.6	Sec. 5. CENTRAL OFFICE; AGING AND 
DISABILITY SERVICES
 	$
	49,290,000
	$
	49,194,000

599.7	Appropriations by Fund
	
599.8	General
	49,165,000
	49,069,000
	
599.9599.10
	State Government 
Special Revenue
	125,000
	125,000

599.11
599.12	Sec. 6. CENTRAL OFFICE; BEHAVIORAL 
HEALTH

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

599.14	Appropriations by Fund
	
599.15	General
	22,400,000
	21,996,000
	
599.16	Lottery Prize
	163,000
	163,000

599.17
599.18	Subd. 2.Psychiatric Residential Treatment 
Facility Report
 					
599.19 	$288,000 in fiscal year 2026 is from the 
599.20 	general fund for the development of the 
599.21 	psychiatric residential treatment facility report 
599.22 	and proposed legislation. This is a onetime 
599.23 	appropriation and is available until June 30, 
599.24 	2027.

599.25
599.26	Subd. 3.Online Behavioral Health Program 
Locator
 					
599.27 	(a) $959,000 in fiscal year 2026 and $959,000 
599.28 	in fiscal year 2027 are from the general fund 
599.29 	for an online behavioral health program 
599.30 	locator.
599.31 	(b) Any vendor selected to administer the 
599.32 	online behavioral health program locator under 
599.33 	paragraph (a) must be based in Minnesota. 
599.34 	Notwithstanding section 25, this paragraph 
599.35 	does not expire.

600.1
600.2	Sec. 7. CENTRAL OFFICE; HOMELESSNESS, 
HOUSING, AND SUPPORT SERVICES
 	$
	7,065,000
	$
	6,421,000

600.3
600.4	Sec. 8. CENTRAL OFFICE; OFFICE OF 
INSPECTOR GENERAL

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

600.6	Appropriations by Fund
	
600.7	General
	31,421,000
	32,615,000
	
600.8
600.9	State Government 
Special Revenue
	3,900,000
	3,900,000
	
600.10	Health Care Access
	941,000
	941,000

600.11	Subd. 2.Base Level Adjustment
 					
600.12 	The general fund base for this section is 
600.13 	$32,671,000 in fiscal year 2028 and 
600.14 	$32,617,000 in fiscal year 2029.

600.15
600.16	Sec. 9. FORECASTED PROGRAMS; 
GENERAL ASSISTANCE
 	$
	84,138,000
	$
	86,462,000
	
600.17 	Emergency General Assistance
600.18 	(a) The amount appropriated for emergency 
600.19 	general assistance is up to $6,729,812 in fiscal 
600.20 	year 2026 and up to $6,729,812 in fiscal year 
600.21 	2027.
600.22 	(b) Money to counties for emergency general 
600.23 	assistance shall be allocated by the 
600.24 	commissioner using the allocation method 
600.25 	under Minnesota Statutes, section 256D.06, 
600.26 	subdivision 2, paragraph (c).

600.27
600.28
600.29	Sec. 10. FORECASTED PROGRAMS; 
MINNESOTA SUPPLEMENTAL 
ASSISTANCE
 	$
	67,113,000
	$
	69,089,000

600.30
600.31	Sec. 11. FORECASTED PROGRAMS; 
HOUSING SUPPORT
 	$
	269,258,000
	$
	279,703,000

600.32
600.33	Sec. 12. FORECASTED PROGRAMS; 
MINNESOTACARE
 	$
	106,426,000
	$
	170,050,000
	
600.34 	This appropriation is from the health care 
600.35 	access fund.

601.1
601.2	Sec. 13. FORECASTED PROGRAMS; 
MEDICAL ASSISTANCE
 	$
	2,138,140,000
	$
	2,222,830,000

601.3	Appropriations by Fund
	
601.4	General
	987,365,000
	1,189,017,000
	
601.5	Health Care Access
	1,150,775,000
	1,033,813,000
	
601.6 	The health care access fund base for this 
601.7 	section is $1,005,182,000 in fiscal year 2028 
601.8 	and $1,007,298,000 in fiscal year 2029.

601.9601.10
	Sec. 14. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICES GRANTS
 	$
	5,655,000
	$
	5,655,000

601.11
601.12	Sec. 15. GRANT PROGRAMS; REFUGEE 
SERVICES GRANTS
 	$
	100,000
	$
	100,000

601.13
601.14	Sec. 16. GRANT PROGRAMS; HEALTH 
CARE GRANTS
 	$
	8,176,000
	$
	8,176,000

601.15	Appropriations by Fund
	
601.16	General
	4,711,000
	4,711,000
	
601.17	Health Care Access
	3,465,000
	3,465,000

601.18
601.19	Sec. 17. GRANT PROGRAMS; DISABILITIES 
GRANTS
 	$
	(2,220,000)
	$
	(2,220,000)

601.20
601.21	Sec. 18. GRANT PROGRAMS; HOUSING AND 
SUPPORT SERVICES GRANTS
 	$
	89,570,000
	$
	92,911,000

601.22
601.23	Subdivision 1.Family Supportive Housing Grant 
Program
 					
601.24 	$700,000 in fiscal year 2026 is for the family 
601.25 	supportive housing grant program. This is a 
601.26 	onetime appropriation and is available until 
601.27 	June 30, 2027.

601.28
601.29	Subd. 2.Grant for Catholic Charities Homeless 
Elders Program
 					
601.30 	$959,000 in fiscal year 2026 is for a grant to 
601.31 	Catholic Charities of St. Paul and Minneapolis 
601.32 	for the homeless elders program that helps 
601.33 	homeless, isolated, and low-income older 
601.34 	adults to move into stable housing. This is a 
601.35 	onetime appropriation and is available until 
601.36 	June 30, 2027.

602.1
602.2	Sec. 19. GRANT PROGRAMS; ADULT 
MENTAL HEALTH GRANTS
 	$
	110,977,000
	$
	110,977,000
	
602.3 	Early Episode of Bipolar Disorder Grants.
602.4 	$125,000 in fiscal year 2026 and $125,000 in 
602.5 	fiscal year 2027 are for early episode of 
602.6 	bipolar disorder grants under Minnesota 
602.7 	Statutes, section 245.4905.

602.8
602.9	Sec. 20. GRANT PROGRAMS; CHILD 
MENTAL HEALTH GRANTS
 	$
	37,625,000
	$
	35,675,000

602.10
602.11	Subdivision 1.Grant to Mental Health 
Collaboration Hub Innovation Pilot Program
 					
602.12 	$750,000 in fiscal year 2026 is for a grant to 
602.13 	the Mental Health Collaboration Hub for the 
602.14 	Mental Health Collaboration Hub innovation 
602.15 	pilot program. This is a onetime appropriation 
602.16 	and is available until June 30, 2027.

602.17
602.18	Subd. 2.Psychiatric Residential Treatment 
Start-Up and Capacity-Building Grants
 					
602.19 	$200,000 in fiscal year 2026 is for a grant to 
602.20 	Clay County under Minnesota Statutes, section 
602.21 	256B.0941, subdivision 5, for a new 18-bed 
602.22 	psychiatric residential treatment facility in 
602.23 	Clay County. This is a onetime appropriation 
602.24 	and is available until June 30, 2029.

602.25
602.26	Subd. 3.Grant to Clay County for Psychiatric 
Residential Treatment Facility
 					
602.27 	$1,000,000 in fiscal year 2026 is for a grant 
602.28 	to Clay County for the purchase of equipment 
602.29 	and final redesign and remodeling for the 
602.30 	conversion of the West Central Regional 
602.31 	Juvenile Center nonsecure unit into an 18-bed 
602.32 	psychiatric residential treatment facility for 
602.33 	persons younger than 21 years of age, under 
602.34 	Minnesota Statutes, section 256B.0941. This 
602.35 	is a onetime appropriation.

603.1
603.2	Subd. 4.School-Linked Behavioral Health 
Grants
 					
603.3 	$22,576,000 in fiscal year 2026 and 
603.4 	$22,576,000 in fiscal year 2027 are from the 
603.5 	general fund for school-linked behavioral 
603.6 	health grants under Minnesota Statutes, section 
603.7 	245.4901.

603.8	Sec. 21. GRANT PROGRAMS; HIV GRANTS
 	$
	6,720,000
	$
	6,720,000
	
603.9 	Grants to Community-Based HIV/AIDS 
603.10 	Support Services Providers. $4,500,000 in 
603.11 	fiscal year 2026 and $4,500,000 in fiscal year 
603.12 	2027 are for grants to community-based 
603.13 	HIV/AIDS support services providers.

603.14 	Sec. 22. TRANSFERS.
 603.15 		Subdivision 1.Grants. The commissioner of human services, with the advance approval 
603.16 	of the commissioner of management and budget, may transfer unencumbered appropriation 
603.17 	balances for the biennium ending June 30, 2027, within fiscal years among general assistance, 
603.18 	medical assistance, MinnesotaCare, the Minnesota supplemental aid program, the housing 
603.19 	support program, and the entitlement portion of the behavioral health fund between fiscal 
603.20 	years of the biennium. The commissioner shall report to the chairs and ranking minority 
603.21 	members of the legislative committees with jurisdiction over health and human services 
603.22 	quarterly about transfers made under this subdivision.
603.23 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
603.24 	may be transferred within the Department of Human Services as the commissioner deems 
603.25 	necessary, with the advance approval of the commissioner of management and budget. The 
603.26 	commissioner shall report to the chairs and ranking minority members of the legislative 
603.27 	committees with jurisdiction over health and human services finance quarterly about transfers 
603.28 	made under this section.
603.29 		Subd. 3.Temporary authority for interagency transfers with Department of 
603.30 	Children, Youth, and Families. Beginning July 1, 2025, and until September 30, 2025, 
603.31 	administrative money may be transferred between the Department of Human Services and 
603.32 	Department of Children, Youth, and Families as the commissioners deem necessary, with 
603.33 	the advance approval of the commissioner of management and budget. The commissioners 
604.1 	shall report to the chairs and ranking minority members of the legislative committees with 
604.2 	jurisdiction over children and families quarterly about transfers made under this section.

604.3 	Sec. 23. CANCELLATIONS.
 604.4 		Subdivision 1.School-linked behavioral health grants. $3,000,000 of the fiscal year 
604.5 	2025 general fund appropriation in Laws 2024, chapter 127, article 67, section 2, subdivision 
604.6 	9, paragraph (a), is canceled to the general fund.
604.7 		Subd. 2.New American legal, social services, and long-term care workforce grant 
604.8 	program. $7,000,000 of the fiscal year 2024 general fund appropriation in Laws 2023, 
604.9 	chapter 70, article 20, section 2, subdivision 25, is canceled to the general fund.
604.10 		Subd. 3.Mobile crisis grants. $1,672,000 of the fiscal year 2025 general fund 
604.11 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 29, paragraph (e), 
604.12 	is canceled to the general fund.
604.13 		Subd. 4.Child mental health grants. $250,000 of the fiscal year 2025 general fund 
604.14 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 30, is canceled to 
604.15 	the general fund.
604.16 		Subd. 5.Emergency medical assistance legal referral costs. $100,000 of the 2025 
604.17 	general fund appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 26, 
604.18 	is canceled to the general fund.
604.19 		Subd. 6.Grants to navigators. $800,000 of the fiscal year 2024 health care access fund 
604.20 	appropriation in Laws 2023, chapter 22, section 4, subdivision 2, is canceled to the health 
604.21 	care access fund.
604.22 		Subd. 7.Mille Lacs Band of Ojibwe American Indian child welfare 
604.23 	initiative. $5,294,000 of the fiscal year 2025 general fund appropriation in Laws 2023, 
604.24 	chapter 70, article 20, section 2, subdivision 22, paragraph (b), is canceled to the general 
604.25 	fund.
604.26 		Subd. 8.Transition grant program. $293,000 of the fiscal year 2024 general fund 
604.27 	appropriation in Laws 2023, chapter 70, article 20, section 2, subdivision 20, paragraph (b), 
604.28 	is canceled to the general fund.
604.29 		Subd. 9.Grant to administer pool of qualified individuals for assessments. $250,000 
604.30 	of the fiscal year 2025 general fund appropriation in Laws 2023, chapter 70, article 20, 
604.31 	section 2, subdivision 22, paragraph (k), is canceled to the general fund.
605.1 		Subd. 10.IT systems improvements for children and families. $10,000,000 of the 
605.2 	fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, article 20, section 2, 
605.3 	subdivision 4, paragraph (g), is canceled to the general fund.

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

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

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

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

605.13
605.14	Subd. 30.Grant Programs; Child Mental Health 
Grants
 		44,487,000
		37,934,000
37,734,000
	
605.15 	(a) Psychiatric residential treatment facility 
605.16 	start-up grants. $1,000,000 in fiscal year 
605.17 	2024 and $1,000,000 $800,000 in fiscal year 
605.18 	2025 are for psychiatric residential treatment 
605.19 	facility start-up grants under Minnesota 
605.20 	Statutes, section 256B.0941, subdivision 5. 
605.21 	This is a onetime appropriation and is 
605.22 	available until June 30, 2027.
605.23 	(b) African American Child Wellness 
605.24 	Institute. $2,000,000 in fiscal year 2024 is 
605.25 	for a grant to the African American Child 
605.26 	Wellness Institute to provide culturally 
605.27 	specific mental health and substance use 
605.28 	disorder services under Minnesota Statutes, 
605.29 	section 245.0961. This is a onetime 
605.30 	appropriation and is available until June 30, 
605.31 	2027.
606.1 	(c) Base level adjustment. The general fund 
606.2 	base is $34,648,000 in fiscal year 2026 and 
606.3 	$34,648,000 in fiscal year 2027.

606.4 	ARTICLE 25
606.5 	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS

606.6	Section 1. CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS.
 	
606.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
606.8 	and for the purposes specified in this article. The appropriations are from the general fund, 
606.9 	or another named fund, and are available for the fiscal years indicated for each purpose. 
606.10 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
606.11 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
606.12 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
606.13 	is fiscal years 2026 and 2027.

606.14				APPROPRIATIONS
	
606.15				Available for the Year
	
606.16				Ending June 30
	
606.17					2026
		2027

606.18
606.19	Sec. 2. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES
 	$
	1,353,351,000
	$
	1,419,413,000

606.20	Appropriations by Fund
	
606.21		2026
	2027
	
606.22	General
	1,049,362,000
	1,094,962,000
	
606.23
606.24	State Government 
Special Revenue
	732,000
	732,000
	
606.25	Federal TANF
	302,921,000
	323,383,000
	
606.26
606.27	Family and Medical 
Benefit Insurance
	336,000
	336,000
	
606.28 	The amounts that may be spent for each 
606.29 	purpose are specified in the following sections.

606.30	Sec. 3. TANF MAINTENANCE OF EFFORT

606.31	Subdivision 1.Nonfederal Expenditures
 					
606.32 	The commissioner shall ensure that sufficient 
606.33 	qualified nonfederal expenditures are made 
607.1 	each year to meet the state's maintenance of 
607.2 	effort requirements of the TANF block grant 
607.3 	specified under Code of Federal Regulations, 
607.4 	title 45, section 263.1. In order to meet these 
607.5 	basic TANF maintenance of effort 
607.6 	requirements, the commissioner may report 
607.7 	as TANF maintenance of effort expenditures 
607.8 	only nonfederal money expended for allowable 
607.9 	activities listed in the following clauses:
607.10 	(1) MFIP cash, diversionary work program, 
607.11 	and food assistance benefits under Minnesota 
607.12 	Statutes, chapter 142G;
607.13 	(2) the child care assistance programs under 
607.14 	Minnesota Statutes, sections 142E.04 and 
607.15 	142E.08, and county child care administrative 
607.16 	costs under Minnesota Statutes, section 
607.17 	142E.02, subdivision 9;
607.18 	(3) state and county MFIP administrative costs 
607.19 	under Minnesota Statutes, chapters 142G and 
607.20 	256K;
607.21 	(4) state, county, and Tribal MFIP 
607.22 	employment services under Minnesota 
607.23 	Statutes, chapters 142G and 256K;
607.24 	(5) expenditures made on behalf of legal 
607.25 	noncitizen MFIP recipients who qualify for 
607.26 	the MinnesotaCare program under Minnesota 
607.27 	Statutes, chapter 256L;
607.28 	(6) qualifying working family credit 
607.29 	expenditures under Minnesota Statutes, section 
607.30 	290.0671, and child tax credit expenditures 
607.31 	under Minnesota Statutes, section 290.0661;
607.32 	(7) qualifying Minnesota education credit 
607.33 	expenditures under Minnesota Statutes, section 
607.34 	290.0674; and
608.1 	(8) qualifying Head Start expenditures under 
608.2 	Minnesota Statutes, section 142D.12.

608.3	Subd. 2.Nonfederal Expenditures; Reporting
 					
608.4 	For the activities listed in subdivision 1, 
608.5 	clauses (2) to (8), the commissioner may 
608.6 	report only expenditures that are excluded 
608.7 	from the definition of assistance under Code 
608.8 	of Federal Regulations, title 45, section 
608.9 	260.31.

608.10	Subd. 3.Supplemental Expenditures
 					
608.11 	The commissioner may supplement the 
608.12 	maintenance of effort claim with working 
608.13 	family credit expenditures or other qualified 
608.14 	expenditures to the extent such expenditures 
608.15 	are otherwise available after considering the 
608.16 	expenditures allowed in this section.

608.17	Subd. 4.Reduction of Appropriations; Exception
 					
608.18 	The requirement in Minnesota Statutes, section 
608.19 	142A.06, subdivision 3, that federal grants or 
608.20 	aids secured or obtained under that subdivision 
608.21 	be used to reduce any direct appropriations 
608.22 	provided by law does not apply if the grants 
608.23 	or aids are federal TANF funds.

608.24	Subd. 5.IT Appropriations Generally
 					
608.25 	This appropriation includes funds for 
608.26 	information technology projects, services, and 
608.27 	support. Funding for information technology 
608.28 	project costs must be incorporated into the 
608.29 	service level agreement and paid to Minnesota 
608.30 	IT Services by the Department of Children, 
608.31 	Youth, and Families under the rates and 
608.32 	mechanism specified in that agreement.

609.1	Subd. 6.Receipts for Systems Project
 					
609.2 	Appropriations and federal receipts for 
609.3 	information technology systems projects for 
609.4 	MAXIS, PRISM, ISDS, and SSIS must be 
609.5 	deposited in the state systems account 
609.6 	authorized in Minnesota Statutes, section 
609.7 	142A.04. Money appropriated for information 
609.8 	technology projects approved by the 
609.9 	commissioner of Minnesota IT Services, 
609.10 	funded by the legislature, and approved by the 
609.11 	commissioner of management and budget may 
609.12 	be transferred from one project to another and 
609.13 	from development to operations as the 
609.14 	commissioner of children, youth, and families 
609.15 	considers necessary. Any unexpended balance 
609.16 	in the appropriation for these projects does not 
609.17 	cancel and is available for ongoing 
609.18 	development and operations.

609.19
609.20	Subd. 7.Federal SNAP Education and Training 
Grants
 					
609.21 	Federal funds available during fiscal years 
609.22 	2026 and 2027 for Supplemental Nutrition 
609.23 	Assistance Program Education and Training 
609.24 	and SNAP Quality Control Performance 
609.25 	Bonus grants are appropriated to the 
609.26 	commissioner of human services for the 
609.27 	purposes allowable under the terms of the 
609.28 	federal award. This subdivision is effective 
609.29 	the day following final enactment.

609.30
609.31
609.32	Sec. 4. OPERATIONS AND 
ADMINISTRATION; AGENCY-WIDE 
SUPPORTS

609.33	Subdivision 1.Total Appropriation
 	$
	110,319,000
	$
	103,807,000

609.34	Appropriations by Fund
	
609.35		2026
	2027
	
610.1	General
	109,151,000
	102,639,000
	
610.2
610.3	State Government 
Special Revenue
	732,000
	732,000
	
610.4	Federal TANF
	100,000
	100,000
	
610.5
610.6	Family and Medical 
Benefit Insurance
	336,000
	336,000

610.7	Subd. 2.Information Technology
 					
610.8 	$10,000,000 in fiscal year 2026 is from the 
610.9 	general fund for information technology 
610.10 	improvements to SSIS. This is a onetime 
610.11 	appropriation.

610.12	Subd. 3.Child Welfare Fiscal Analysis
 					
610.13 	$250,000 in fiscal year 2026 is from the 
610.14 	general fund to contract with a third-party 
610.15 	consultant to conduct an independent fiscal 
610.16 	analysis of the child welfare system in 
610.17 	Minnesota. This is a onetime appropriation 
610.18 	and is available until June 30, 2029.

610.19	Subd. 4.Family and Medical Benefit Insurance
 					
610.20 	$336,000 in fiscal year 2026 and $336,000 in 
610.21 	fiscal year 2027 are from the family and 
610.22 	medical benefit insurance fund for systems 
610.23 	costs to administer Minnesota Statutes, chapter 
610.24 	268B.

610.25	Subd. 5.Base Level Adjustment
 					
610.26 	The general fund base for this section is 
610.27 	$102,534,000 in fiscal year 2028 and 
610.28 	$102,172,000 in fiscal year 2029.

610.29
610.30
610.31	Sec. 5. OPERATIONS AND 
ADMINISTRATION; CHILD SAFETY AND 
PERMANENCY
 	$
	17,232,000
	$
	16,945,000

610.32
610.33	Sec. 6. OPERATIONS AND 
ADMINISTRATION; EARLY CHILDHOOD
 	$
	17,166,000
	$
	12,698,000

611.1
611.2	Subdivision 1.Child Care Attendance and 
Record-Keeping System
 					
611.3 	$5,500,000 in fiscal year 2026 and $1,000,000 
611.4 	in fiscal year 2027 are to develop a statewide 
611.5 	electronic attendance and record-keeping 
611.6 	system for the child care assistance program. 
611.7 	This is a onetime appropriation.

611.8	Subd. 2.Base Level Adjustment
 					
611.9 	The general fund base for this section is 
611.10 	$11,698,000 in fiscal year 2028 and 
611.11 	$11,698,000 in fiscal year 2029.

611.12
611.13
611.14	Sec. 7. OPERATIONS AND 
ADMINISTRATION; ECONOMIC 
OPPORTUNITY AND YOUTH SERVICES
 	$
	4,182,000
	$
	3,646,000

611.15
611.16	Subdivision 1.Scan of and Report on 
Out-of-School and Youth Programming
 					
611.17 	$402,000 in fiscal year 2026 is to conduct the 
611.18 	scan of and prepare the out-of-school and 
611.19 	youth programming report. This is a onetime 
611.20 	appropriation.

611.21
611.22	Subd. 2.Youth Intervention Programs 
Association Grant
 					
611.23 	Notwithstanding the percentage requirement 
611.24 	under Minnesota Statutes, section 142A.43, 
611.25 	subdivision 3, $355,000 in fiscal year 2026 
611.26 	and $355,000 in fiscal year 2027 are for a 
611.27 	grant to the Minnesota Youth Intervention 
611.28 	Programs Association for collaboration, 
611.29 	program development, professional 
611.30 	development training, technical assistance, 
611.31 	tracking, and analyzing and reporting outcome 
611.32 	data for the community-based grantees of the 
611.33 	program.

612.1	Subd. 3.Base Level Adjustment
 					
612.2 	The general fund base for this section is 
612.3 	$3,562,000 in fiscal year 2028 and $3,562,000 
612.4 	in fiscal year 2029.

612.5
612.6	Sec. 8. OPERATIONS AND 
ADMINISTRATION; FAMILY WELL-BEING
 	$
	14,147,000
	$
	14,147,000

612.7	Appropriations by Fund
	
612.8		2026
	2027
	
612.9	General
	10,471,000
	10,471,000
	
612.10	Federal TANF
	3,676,000
	3,676,000

612.11
612.12	Sec. 9. FORECASTED PROGRAMS; 
MFIP/DWP
 	$
	230,473,000
	$
	268,167,000

612.13	Appropriations by Fund
	
612.14		2026
	2027
	
612.15	General
	99,272,000
	116,504,000
	
612.16	Federal TANF
	131,201,000
	151,663,000

612.17
612.18	Sec. 10. FORECASTED PROGRAMS; MFIP 
CHILD CARE ASSISTANCE
 	$
	100,244,000
	$
	137,333,000

612.19
612.20	Sec. 11. FORECASTED PROGRAMS; 
NORTHSTAR CARE FOR CHILDREN
 	$
	110,214,000
	$
	116,160,000

612.21
612.22	Sec. 12. GRANT PROGRAMS; SUPPORT 
SERVICES GRANTS
 	$
	111,359,000
	$
	111,359,000

612.23	Appropriations by Fund
	
612.24		2026
	2027
	
612.25	General
	14,908,000
	14,908,000
	
612.26	Federal TANF
	96,451,000
	96,451,000

612.27
612.28
612.29	Sec. 13. GRANT PROGRAMS; BASIC 
SLIDING FEE CHILD ASSISTANCE CARE 
GRANTS
 	$
	137,768,000
	$
	135,212,000

612.30
612.31	Sec. 14. GRANT PROGRAMS; CHILD CARE 
DEVELOPMENT GRANTS
 	$
	139,120,000
	$
	138,819,000

612.32
612.33	Subdivision 1.St. Cloud Area School District 
Preschool Programs Grant
 					
612.34 	$301,000 in fiscal year 2026 is for a grant to 
612.35 	Independent School District No. 742 for the 
612.36 	Preschool 4 Success program operated with 
613.1 	the Rotary Club of St. Cloud. This is a onetime 
613.2 	appropriation and is available until June 30, 
613.3 	2027.

613.4
613.5	Subd. 2.Great Start Compensation Support 
Payments
 					
613.6 	$129,887,000 in fiscal year 2026 and 
613.7 	$129,887,000 in fiscal year 2027 are for the 
613.8 	Great Start Compensation Support Payments 
613.9 	under Minnesota Statutes, section 142D.21.

613.10
613.11	Sec. 15. GRANT PROGRAMS; CHILD 
SUPPORT ENFORCEMENT GRANTS
 	$
	50,000
	$
	50,000

613.12
613.13	Sec. 16. GRANT PROGRAMS; CHILDREN'S 
SERVICES GRANTS
 	$
	41,704,000
	$
	41,705,000

613.14
613.15	Subdivision 1.Restorative Practices Initiatives 
Grants
 					
613.16 	The base funding for restorative practices 
613.17 	initiatives grants under Minnesota Statutes, 
613.18 	section 142A.76, subdivision 5, is reduced by 
613.19 	$1,500,000 in fiscal year 2026 and $1,500,000 
613.20 	in fiscal year 2027.

613.21
613.22	Subd. 2.Fostering Connections to Success and 
Increasing Adoptions Act
 					
613.23 	The commissioner shall allocate funds from 
613.24 	the state's savings from the Fostering 
613.25 	Connections to Success and Increasing 
613.26 	Adoptions Act's expanded eligibility for Title 
613.27 	IV-E adoption assistance as required in 
613.28 	Minnesota Statutes, section 142A.61, and as 
613.29 	allowable under federal law. Additional 
613.30 	savings to the state as a result of the Fostering 
613.31 	Connections to Success and Increasing 
613.32 	Adoptions Act's expanded eligibility for Title 
613.33 	IV-E adoption assistance is for postadoption, 
613.34 	foster care, adoption, and kinship services, 
614.1 	including a parent-to-parent support network 
614.2 	and as allowable under federal law.

614.3
614.4	Sec. 17. GRANT PROGRAMS; CHILD AND 
COMMUNITY SERVICE GRANTS
 	$
	87,984,000
	$
	87,984,000

614.5
614.6	Sec. 18. GRANT PROGRAMS; CHILD AND 
ECONOMIC SUPPORT GRANTS
 	$
	18,167,000
	$
	18,159,000

614.7	Subdivision 1.Regional Food Bank Grants
 					
614.8 	$2,980,000 in fiscal year 2026 and $2,977,000 
614.9 	in fiscal year 2027 are for regional food bank 
614.10 	grants under Minnesota Statutes, section 
614.11 	142F.16. This is a onetime appropriation and 
614.12 	is available until June 30, 2027.

614.13	Subd. 2.Minnesota Food Shelf Programs
 					
614.14 	$2,000,000 in fiscal year 2026 and $2,000,000 
614.15 	in fiscal year 2027 are for food shelf programs 
614.16 	grants under Minnesota Statutes, section 
614.17 	142F.14. This is a onetime appropriation and 
614.18 	is available until June 30, 2027.

614.19	Subd. 3.Prepared Meals Food Relief Grants
 					
614.20 	$971,000 in fiscal year 2026 and $966,000 in 
614.21 	fiscal year 2027 are for prepared meals food 
614.22 	relief grants under Minnesota Statutes, section 
614.23 	142F.141. This is a onetime appropriation and 
614.24 	is available until June 30, 2027.

614.25	Subd. 4.Base Level Adjustment
 					
614.26 	The general fund base for this section is 
614.27 	$12,216,000 in fiscal year 2028 and 
614.28 	$12,216,000 in fiscal year 2029.

614.29
614.30	Sec. 19. GRANT PROGRAMS; EARLY 
LEARNING GRANTS
 	$
	132,838,000
	$
	132,838,000

614.31
614.32	Subdivision 1.Early Childhood Literacy 
Programs
 					
614.33 	The base funding for early childhood literacy 
614.34 	programs under Minnesota Statutes, section 
615.1 	142D.12, subdivision 3, is reduced by 
615.2 	$7,950,000 in fiscal year 2026 and $7,950,000 
615.3 	in fiscal year 2027.

615.4	Subd. 2.Grants for Early Learning Scholarships
 					
615.5 	$97,290,000 in fiscal year 2026 and 
615.6 	$97,290,000 in fiscal year 2027 are from the 
615.7 	general fund for early learning scholarships 
615.8 	grants under Minnesota Statutes, section 
615.9 	142D.25.

615.10	Subd. 3.Head Start Program Grants
 					
615.11 	$34,398,000 in fiscal year 2026 and 
615.12 	$34,398,000 in fiscal year 2027 are from the 
615.13 	general fund for head start program grants 
615.14 	under Minnesota Statutes, section 142D.12.

615.15	Subd. 4.School Readiness Plus Program Grants
 					
615.16 	$900,000 in fiscal year 2026 and $900,000 in 
615.17 	fiscal year 2027 are from the general fund for 
615.18 	school readiness plus program grants under 
615.19 	Minnesota Statutes, section 142D.07.

615.20	Subd. 5.Reach Out and Read Minnesota Grant
 					
615.21 	$250,000 in fiscal year 2026 and $250,000 in 
615.22 	fiscal year 2027 are for a grant to Reach Out 
615.23 	and Read Minnesota to establish a statewide 
615.24 	plan that encourages early childhood 
615.25 	development through a network of health care 
615.26 	clinics under Laws 2023, chapter 54, section 
615.27 	20, subdivision 20.

615.28
615.29	Sec. 20. GRANT PROGRAMS; YOUTH 
SERVICES GRANTS
 	$
	8,891,000
	$
	8,891,000

615.30
615.31	Subdivision 1.Grants-in-Aid to Youth 
Intervention Programs
 					
615.32 	$6,391,000 in fiscal year 2026 and $6,391,000 
615.33 	in fiscal year 2027 are from the general fund 
616.1 	for grants to youth intervention programs 
616.2 	under Minnesota Statutes, section 142A.43. 
616.3 	Notwithstanding Minnesota Statutes, section 
616.4 	142A.43, subdivision 5, this amount is only 
616.5 	for grants under Minnesota Statutes, section 
616.6 	142A.43, subdivision 1.

616.7	Subd. 2.Office of Restorative Practices
 					
616.8 	$2,500,000 in fiscal year 2026 and $2,500,000 
616.9 	in fiscal year 2027 are from the general fund 
616.10 	for the Office of Restorative Practices under 
616.11 	Minnesota Statutes, section 142A.76.

616.12	Sec. 21. TECHNICAL ACTIVITIES
 	$
	71,493,000
	$
	71,493,000
	
616.13 	This appropriation is from the federal TANF 
616.14 	fund.

616.15 	Sec. 22. TRANSFERS.
 616.16 		Subdivision 1.Programs and grants. The commissioner of children, youth, and families, 
616.17 	with the advance approval of the commissioner of management and budget, may transfer 
616.18 	unencumbered appropriation balances for the biennium ending June 30, 2027, within fiscal 
616.19 	years among MFIP; MFIP child care assistance under Minnesota Statutes, section 142E.08; 
616.20 	the entitlement portion of Northstar Care for Children under Minnesota Statutes, sections 
616.21 	142A.60 to 142A.612; and early childhood family education under Minnesota Statutes, 
616.22 	section 142D.11, between fiscal years of the biennium. The commissioner shall inform the 
616.23 	chairs and ranking minority members of the legislative committees with jurisdiction over 
616.24 	children and families finance and policy quarterly about transfers made under this 
616.25 	subdivision.
616.26 		Subd. 2.Administration. Positions, salary money, and nonsalary administrative money 
616.27 	may be transferred within the Department of Children, Youth, and Families as the 
616.28 	commissioner deems necessary, with the advance approval of the commissioner of 
616.29 	management and budget. The commissioner shall report to the chairs and ranking minority 
616.30 	members of the legislative committees with jurisdiction over children and families finance 
616.31 	quarterly about transfers made under this subdivision.
616.32 		Subd. 3.Temporary authority for interagency transfers with Department of Human 
616.33 	Services. Beginning July 1, 2025, and until September 30, 2025, administrative money may 
617.1 	be transferred between the Department of Children, Youth, and Families and the Department 
617.2 	of Human Services or the Department of Education as the commissioners deem necessary, 
617.3 	with the advance approval of the commissioner of management and budget. The 
617.4 	commissioners shall report to the chairs and ranking minority members of the legislative 
617.5 	committees with jurisdiction over children and families finance and policy quarterly about 
617.6 	transfers made under this subdivision.

617.7 	Sec. 23. CANCELLATION; ESTABLISHING THE DEPARTMENT OF CHILDREN, 
617.8 	YOUTH, AND FAMILIES.
 617.9 	$8,500,000 of the fiscal year 2024 general fund appropriation in Laws 2023, chapter 70, 
617.10 	article 20, section 12, paragraph (b), is canceled to the general fund.

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

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

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

617.19 	ARTICLE 26
617.20 	DEPARTMENT OF HEALTH APPROPRIATIONS

617.21	Section 1. HEALTH APPROPRIATIONS.
 	
617.22 	The sums shown in the columns marked "Appropriations" are appropriated to the 
617.23 	commissioner of health for the purposes specified in this article. The appropriations are 
617.24 	from the general fund, or another named fund, and are available for the fiscal years indicated 
617.25 	for each purpose. The figures "2026" and "2027" used in this article mean that the 
617.26 	appropriations listed under them are available for the fiscal year ending June 30, 2026, or 
617.27 	June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal 
617.28 	year 2027. "The biennium" is fiscal years 2026 and 2027.

617.29				APPROPRIATIONS
	
617.30				Available for the Year
	
618.1				Ending June 30
	
618.2					2026
		2027

618.3	Sec. 2. COMMISSIONER OF HEALTH
 	$
	434,610,000
	$
	430,946,000

618.4	Appropriations by Fund
	
618.5		2026
	2027
	
618.6	General
	271,895,000
	269,645,000
	
618.7
618.8	State Government 
Special Revenue
	96,237,000
	95,769,000
	
618.9	Health Care Access
	54,765,000
	53,819,000
	
618.10	Federal TANF
	11,713,000
	11,713,000
	
618.11 	The amounts that may be spent for each 
618.12 	purpose are specified in this article.

618.13	Sec. 3. HEALTH IMPROVEMENT

618.14	Subdivision 1.Total Appropriation
 	$
	291,627,000
	$
	286,428,000

618.15	Appropriations by Fund
	
618.16	General
	217,302,000
	214,495,000
	
618.17
618.18	State Government 
Special Revenue
	9,258,000
	9,258,000
	
618.19	Health Care Access
	53,354,000
	50,962,000
	
618.20	Federal TANF
	11,713,000
	11,713,000

618.21
618.22	Subd. 2.Substance Use Treatment, Recovery, 
and Prevention Grants
 					
618.23 	$3,000,000 in fiscal year 2026 and $3,000,000 
618.24 	in fiscal year 2027 are from the general fund 
618.25 	for substance use treatment, recovery, and 
618.26 	prevention grants under Minnesota Statutes, 
618.27 	section 342.72.

618.28
618.29	Subd. 3.Local and Tribal Public Health 
Cannabis Grants
 					
618.30 	$6,256,000 in fiscal year 2026 and $6,256,000 
618.31 	in fiscal year 2027 are from the general fund 
618.32 	for grants under Minnesota Statutes, section 
618.33 	144.197, subdivision 4.

619.1
619.2
619.3	Subd. 4.Cannabis and Substance Misuse 
Prevention and Education Programs; Youth 
Prevention and Education Program
 					
619.4 	$5,000,000 in fiscal year 2026 and $5,000,000 
619.5 	in fiscal year 2027 are from the general fund 
619.6 	for the youth prevention and education 
619.7 	program under the cannabis and substance 
619.8 	misuse prevention and education programs 
619.9 	under Minnesota Statutes, section 144.197, 
619.10 	subdivision 1.

619.11
619.12
619.13
619.14
619.15	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
 					
619.16 	$2,000,000 in fiscal year 2026 and $2,000,000 
619.17 	in fiscal year 2027 are from the general fund 
619.18 	for the prevention and education program for 
619.19 	pregnant and breastfeeding individuals and 
619.20 	individuals who may become pregnant under 
619.21 	the cannabis and substance misuse prevention 
619.22 	and education programs under Minnesota 
619.23 	Statutes, section 144.197, subdivision 2.

619.24
619.25
619.26	Subd. 6.Cannabis and Substance Misuse 
Prevention and Education Programs; Local and 
Tribal Health Departments
 					
619.27 	$10,000,000 in fiscal year 2026 and 
619.28 	$10,000,000 in fiscal year 2027 are from the 
619.29 	general fund for the local and Tribal health 
619.30 	departments under the cannabis and substance 
619.31 	misuse prevention and education programs 
619.32 	under Minnesota Statutes, section 144.197, 
619.33 	subdivision 4.

619.34
619.35	Subd. 7.Cannabis Data Collection and Biennial 
Reports
 					
619.36 	$493,000 in fiscal year 2026 and $493,000 in 
619.37 	fiscal year 2027 are from the general fund for 
620.1 	cannabis data collection and biennial reports 
620.2 	under Minnesota Statutes, section 144.196.

620.3	Subd. 8.Administration of Expungement Orders
 					
620.4 	$71,000 in fiscal year 2026 and $71,000 in 
620.5 	fiscal year 2027 are from the general fund for 
620.6 	the administration of expungement orders 
620.7 	under Laws 2023, chapter 63, article 9, section 
620.8 	10, subdivision 6.

620.9	Subd. 9.Testing of Edible Cannabinoid Products
 					
620.10 	$690,000 in fiscal year 2026 and $690,000 in 
620.11 	fiscal year 2027 are from the general fund for 
620.12 	testing under Laws 2023, chapter 63, article 
620.13 	9, section 10, subdivision 9.

620.14
620.15	Subd. 10.Grant for "Treat Yourself First" 
Campaign
 					
620.16 	$237,000 is from the general fund for a grant 
620.17 	to the Minnesota Medical Association for the 
620.18 	"Treat Yourself First" campaign. The 
620.19 	campaign must be an awareness and education 
620.20 	campaign focused on burnout and well-being 
620.21 	of health care workers designed to:
620.22 	(1) reduce the stigma of receiving mental 
620.23 	health services;
620.24 	(2) encourage health care workers who are 
620.25 	experiencing workplace-related fatigue to 
620.26 	receive the care they need; and
620.27 	(3) normalize the process for seeking help.
620.28 	The campaign must be targeted to health care 
620.29 	professionals, including but not limited to 
620.30 	physicians, nurses, dentists, pharmacists, and 
620.31 	other members of the health care team. The 
620.32 	campaign must include resources for health 
620.33 	care professionals seeking help to address 
621.1 	burnout and well-being. This is a onetime 
621.2 	appropriation and is available until June 30, 
621.3 	2029.

621.4
621.5	Subd. 11.Grant for African American-Focused 
Homeplace Program
 					
621.6 	$475,000 in fiscal year 2026 is from the 
621.7 	general fund for a grant to the Birth Justice 
621.8 	Collaborative to strengthen and implement the 
621.9 	current model of the African 
621.10 	American-focused Homeplace in Hennepin 
621.11 	County. This is a onetime appropriation and 
621.12 	is available until June 30, 2029.

621.13	Subd. 12.TANF Appropriations
 					
621.14 	TANF funds must be used as follows:
621.15 	(1) $3,579,000 in fiscal year 2026 and 
621.16 	$3,579,000 in fiscal year 2027 are from the 
621.17 	TANF fund for home visiting and nutritional 
621.18 	services listed under Minnesota Statutes, 
621.19 	section 145.882, subdivision 7, clauses (6) and 
621.20 	(7). Funds must be distributed to community 
621.21 	health boards according to Minnesota Statutes, 
621.22 	section 145A.131, subdivision 1;
621.23 	(2) $2,000,000 in fiscal year 2026 and 
621.24 	$2,000,000 in fiscal year 2027 are from the 
621.25 	TANF fund for decreasing racial and ethnic 
621.26 	disparities in infant mortality rates under 
621.27 	Minnesota Statutes, section 145.928, 
621.28 	subdivision 7;
621.29 	(3) $4,978,000 in fiscal year 2026 and 
621.30 	$4,978,000 in fiscal year 2027 are from the 
621.31 	TANF fund for the family home visiting grant 
621.32 	program under Minnesota Statutes, section 
621.33 	145A.17. Of these amounts, $4,000,000 in 
621.34 	fiscal year 2026 and $4,000,000 in fiscal year 
622.1 	2027 must be distributed to community health 
622.2 	boards under Minnesota Statutes, section 
622.3 	145A.131, subdivision 1; and $978,000 in 
622.4 	fiscal year 2026 and $978,000 in fiscal year 
622.5 	2027 must be distributed to Tribal 
622.6 	governments under Minnesota Statutes, section 
622.7 	145A.14, subdivision 2a;
622.8 	(4) $1,156,000 in fiscal year 2026 and 
622.9 	$1,156,000 in fiscal year 2027 are from the 
622.10 	TANF fund for sexual and reproductive health 
622.11 	services grants under Minnesota Statutes, 
622.12 	section 145.925; and
622.13 	(5) the commissioner may use up to 6.23 
622.14 	percent of the funds appropriated from the 
622.15 	TANF fund each fiscal year to conduct the 
622.16 	ongoing evaluations required under Minnesota 
622.17 	Statutes, section 145A.17, subdivision 7, and 
622.18 	training and technical assistance required 
622.19 	under Minnesota Statutes, section 145A.17, 
622.20 	subdivisions 4 and 5.

622.21	Subd. 13.TANF Carryforward
 					
622.22 	Any unexpended balance of the TANF 
622.23 	appropriation in the first year does not cancel 
622.24 	but is available in the second year.

622.25	Subd. 14.Base Level Adjustment
 					
622.26 	The general fund base for this section is 
622.27 	$213,562,000 in fiscal year 2028 and 
622.28 	$213,562,000 in fiscal year 2029.

622.29	Sec. 4. HEALTH PROTECTION

622.30	Subdivision 1.Total Appropriation
 	$
	121,207,000
	$
	120,269,000

622.31	Appropriations by Fund
	
622.32	General
	34,228,000
	33,758,000
	
622.33
622.34	State Government 
Special Revenue
	86,979,000
	86,511,000

623.1
623.2	Subd. 2.Speech Language Pathology Assistants 
Fee Adjustment
 					
623.3 	$95,000 in fiscal year 2026 is from the general 
623.4 	fund for onetime costs incurred in fiscal year 
623.5 	2025 to implement Minnesota Statutes, 
623.6 	sections 148.511 to 148.5198.

623.7
623.8	Subd. 3.Infectious Disease Prevention, Early 
Detection, and Outbreak Response
 					
623.9 	$1,300,000 in fiscal year 2026 and $1,300,000 
623.10 	in fiscal year 2027 are from the general fund 
623.11 	for infectious disease prevention, early 
623.12 	detection, and outbreak response activities 
623.13 	under Minnesota Statutes, section 144.05, 
623.14 	subdivision 1.

623.15	Subd. 4.Asbestos Abatement
 					
623.16 	$176,000 in fiscal year 2026 and $176,000 in 
623.17 	fiscal year 2027 are from the state government 
623.18 	special revenue fund for asbestos abatement 
623.19 	under Minnesota Statutes, section 326.75.

623.20	Subd. 5.Food, Pools, and Lodging Services
 					
623.21 	$5,483,000 in fiscal year 2026 and $5,483,000 
623.22 	in fiscal year 2027 are from the state 
623.23 	government special revenue fund for food, 
623.24 	pools, and lodging services program activities 
623.25 	under Minnesota Statutes, chapters 144, 157, 
623.26 	and 327.

623.27	Subd. 6.Public Water Supply
 					
623.28 	$7,827,000 in fiscal year 2026 and $7,827,000 
623.29 	in fiscal year 2027 are from the state 
623.30 	government special revenue fund to administer 
623.31 	the drinking water protection program, 
623.32 	including implementing the Safe Drinking 
623.33 	Water Act and providing services to regulated 
623.34 	parties, partners, and the public under 
624.1 	Minnesota Statutes, sections 144.381 to 
624.2 	144.383.

624.3	Subd. 7.Radioactive Materials
 					
624.4 	$200,000 in fiscal year 2026 and $200,000 in 
624.5 	fiscal year 2027 are from the state government 
624.6 	special revenue fund for radioactive materials 
624.7 	program activities under Minnesota Statutes, 
624.8 	section 144.1205.

624.9	Subd. 8.Ionizing Radiation
 					
624.10 	$993,000 in fiscal year 2026 and $828,000 in 
624.11 	fiscal year 2027 are from the state government 
624.12 	special revenue fund to administer new 
624.13 	regulatory activities for x-ray service 
624.14 	providers, ongoing inspections of licensed 
624.15 	facilities, and data analysis for program 
624.16 	planning and implementation under Minnesota 
624.17 	Statutes, section 144.121.

624.18	Subd. 9.Engineering Plan Reviews
 					
624.19 	$224,000 in fiscal year 2026 and $224,000 in 
624.20 	fiscal year 2027 are from the state government 
624.21 	special revenue fund to conduct engineering 
624.22 	plan reviews under Minnesota Statutes, section 
624.23 	144.554.

624.24
624.25	Subd. 10.Spoken Language Health Care 
Interpreter Workgroup
 					
624.26 	$186,000 in fiscal year 2026 and $49,000 in 
624.27 	fiscal year 2027 are from the state government 
624.28 	special revenue fund for a request for 
624.29 	proposals for the spoken language health care 
624.30 	interpreter work group. This is a onetime 
624.31 	appropriation and is available until June 30, 
624.32 	2029.

625.1	Subd. 11.Base Level Adjustments
 					
625.2 	The state government special revenue fund 
625.3 	base is $86,794,000 in fiscal year 2028 and 
625.4 	$86,806,000 in fiscal year 2029.

625.5	Sec. 5. HEALTH OPERATIONS
 	$
	21,776,000
	$
	24,249,000

625.6	Appropriations by Fund
	
625.7	General
	20,365,000
	21,392,000
	
625.8	Health Care Access
	1,411,000
	2,857,000

625.9 	Sec. 6. TRANSFERS.
 625.10 	Positions, salary money, and nonsalary administrative money may be transferred within 
625.11 	the Department of Health as the commissioner deems necessary with the advance approval 
625.12 	of the commissioner of management and budget. The commissioner shall report to the chairs 
625.13 	and ranking minority members of the legislative committees with jurisdiction over health 
625.14 	finance quarterly about transfers made under this section.

625.15 	Sec. 7. INDIRECT COSTS NOT TO FUND PROGRAMS.
 625.16 	The commissioner of health shall not use indirect cost allocations to pay for the 
625.17 	operational costs of any program for which the commissioner is responsible.

625.18 	Sec. 8. GRANT ADMINISTRATION COSTS.
 625.19 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
625.20 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

625.21 	Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
 625.22 	All uncodified language contained in this article expires on June 30, 2027, unless a 
625.23 	different expiration date is explicit or an appropriation is made available after June 30, 2027.

625.24 	ARTICLE 27
625.25 	OTHER AGENCY APPROPRIATIONS

625.26	Section 1. OTHER AGENCY APPROPRIATIONS.
 	
625.27 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
625.28 	and for the purposes specified in this article. The appropriations are from the general fund, 
625.29 	or another named fund, and are available for the fiscal years indicated for each purpose. 
625.30 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
626.1 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
626.2 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
626.3 	is fiscal years 2026 and 2027.

626.4				APPROPRIATIONS
	
626.5				Available for the Year
	
626.6				Ending June 30
	
626.7					2026
		2027

626.8	Sec. 2. HEALTH-RELATED BOARDS

626.9	Subdivision 1.Total Appropriation
 	$
	35,374,000
	$
	35,255,000

626.10	Appropriations by Fund
	
626.11		2026
	2027
	
626.12	General
	1,387,000
	1,387,000
	
626.13
626.14	State Government 
Special Revenue
	33,987,000
	33,868,000
	
626.15 	These amounts are appropriated from the state 
626.16 	government special revenue fund, unless 
626.17 	specified otherwise, for the purposes specified 
626.18 	in the following subdivisions.

626.19
626.20	Subd. 2.Board of Behavioral Health and 
Therapy
 		1,289,000
		1,289,000

626.21	Subd. 3.Board of Chiropractic Examiners
 		890,000
		890,000

626.22	Subd. 4.Board of Dentistry
 		4,308,000
		4,310,000
	
626.23 	(a) Administrative services unit; operating 
626.24 	costs. Of this appropriation, $1,936,000 in 
626.25 	fiscal year 2026 and $1,936,000 in fiscal year 
626.26 	2027 are for operating costs of the 
626.27 	administrative services unit. The 
626.28 	administrative services unit may receive and 
626.29 	expend reimbursements for services it 
626.30 	performs for other agencies.
626.31 	(b) Administrative services unit; volunteer 
626.32 	health care provider program. Of this 
627.1 	appropriation, $150,000 in fiscal year 2026 
627.2 	and $150,000 in fiscal year 2027 are to pay 
627.3 	for medical professional liability coverage 
627.4 	required under Minnesota Statutes, section 
627.5 	214.40.
627.6 	(c) Administrative services unit; retirement 
627.7 	costs. Of this appropriation, $237,000 in fiscal 
627.8 	year 2026 and $237,000 in fiscal year 2027 
627.9 	are for the administrative services unit to pay 
627.10 	for the retirement costs of health-related board 
627.11 	employees. This funding may be transferred 
627.12 	to the health board incurring retirement costs. 
627.13 	Any board that has an unexpended balance for 
627.14 	an amount transferred under this paragraph 
627.15 	shall transfer the unexpended amount to the 
627.16 	administrative services unit. If the amount 
627.17 	appropriated in the first year of the biennium 
627.18 	is not sufficient, the amount from the second 
627.19 	year of the biennium is available.
627.20 	(d) Administrative services unit; contested 
627.21 	cases and other legal proceedings. Of this 
627.22 	appropriation, $200,000 in fiscal year 2026 
627.23 	and $200,000 in fiscal year 2027 are for costs 
627.24 	of contested case hearings and other 
627.25 	unanticipated costs of legal proceedings 
627.26 	involving health-related boards under this 
627.27 	section. Upon certification by a health-related 
627.28 	board to the administrative services unit that 
627.29 	unanticipated costs for legal proceedings will 
627.30 	be incurred and that available appropriations 
627.31 	are insufficient to pay for the unanticipated 
627.32 	costs for that board, the administrative services 
627.33 	unit is authorized to transfer money from this 
627.34 	appropriation to the board for payment of costs 
627.35 	for contested case hearings and other 
628.1 	unanticipated costs of legal proceedings with 
628.2 	the approval of the commissioner of 
628.3 	management and budget. The commissioner 
628.4 	of management and budget must require any 
628.5 	board that has an unexpended balance or an 
628.6 	amount transferred under this paragraph to 
628.7 	transfer the unexpended amount to the 
628.8 	administrative services unit to be deposited in 
628.9 	the state government special revenue fund.

628.10
628.11	Subd. 5.Board of Dietetics and Nutrition 
Practice
 		277,000
		277,000

628.12
628.13	Subd. 6.Board of Executives for Long-term 
Services and Supports
 		736,000
		736,000

628.14	Subd. 7.Board of Marriage and Family Therapy
 		457,000
		457,000

628.15	Subd. 8.Board of Medical Practice
 		6,196,000
		6,141,000
	
628.16 	Base Level Adjustment. The state 
628.17 	government special revenue fund base for this 
628.18 	subdivision is $6,121,000 in fiscal year 2028 
628.19 	and $6,121,000 in fiscal year 2029.

628.20	Subd. 9.Board of Nursing
 		6,275,000
		6,275,000

628.21
628.22	Subd. 10.Board of Occupational Therapy 
Practice
 		560,000
		560,000

628.23	Subd. 11.Board of Optometry
 		280,000
		280,000

628.24	Subd. 12.Board of Pharmacy

628.25	Appropriations by Fund
	
628.26	General
	1,387,000
	1,387,000
	
628.27
628.28	State Government 
Special Revenue
	6,280,000
	6,280,000
	
628.29 	Medication Repository Program. $900,000 
628.30 	in fiscal year 2026 and $900,000 in fiscal year 
628.31 	2027 are from the general fund for the 
628.32 	medication repository program to purchase 
628.33 	prescription drugs under Minnesota Statutes, 
628.34 	section 151.555, subdivision 6, paragraph (g).

629.1	Subd. 13.Board of Physical Therapy
 		789,000
		789,000

629.2	Subd. 14.Board of Podiatric Medicine
 		257,000
		257,000

629.3	Subd. 15.Board of Psychology
 		2,781,000
		2,781,000
	
629.4 	Health Professional Service Program.
629.5 	$1,324,000 in fiscal year 2026 and $1,324,000 
629.6 	in fiscal year 2027 are for the health 
629.7 	professionals services program.

629.8	Subd. 16.Board of Social Work
 		2,068,000
		2,002,000

629.9	Subd. 17.Board of Veterinary Medicine
 		544,000
		544,000

629.10
629.11	Sec. 3. OFFICE OF EMERGENCY MEDICAL 
SERVICES
 	$
	25,613,000
	$
	6,048,000

629.12
629.13	Subdivision 1.Ambulance Service Training and 
Staffing Grant Program
 					
629.14 	$500,000 in fiscal year 2026 and $500,000 in 
629.15 	fiscal year 2027 are for the ambulance service 
629.16 	training and staffing grant program under 
629.17 	Minnesota Statutes, section 144E.38.

629.18	Subd. 2.EMR/EMT Education Reimbursement
 					
629.19 	$100,000 in fiscal year 2026 and $100,000 in 
629.20 	fiscal year 2027 are for EMR/EMT education 
629.21 	reimbursements under Minnesota Statutes, 
629.22 	section 144E.35.

629.23
629.24	Subd. 3.Ambulance Operating Deficit Grant 
Program
 					
629.25 	$18,000,000 in fiscal year 2026 is for 
629.26 	ambulance operating deficit grants under 
629.27 	Minnesota Statutes, section 144E.54. This is 
629.28 	a onetime appropriation and is available until 
629.29 	June 30, 2029.

629.30	Sec. 4. OMBUDSPERSON FOR FAMILIES
 	$
	792,000
	$
	808,000

629.31
629.32	Sec. 5. OMBUDSPERSON FOR AMERICAN 
INDIAN FAMILIES
 	$
	344,000
	$
	347,000

630.1
630.2	Sec. 6. RARE DISEASE ADVISORY 
COUNCIL
 	$
	674,000
	$
	679,000

630.3
630.4	Sec. 7. OFFICE OF THE FOSTER YOUTH 
OMBUDSPERSON
 	$
	1,012,000
	$
	1,025,000

630.5	Sec. 8. BOARD OF DIRECTORS OF MNSURE
 	$
	70,000
	$
	70,000

630.6	Sec. 9. COMMISSIONER OF EDUCATION
 	$
	7,950,000
	$
	7,950,000
	
630.7 	Early Childhood Literacy Programs.
630.8 	$7,950,000 in fiscal year 2026 and $7,950,000 
630.9 	in fiscal year 2027 are for early childhood 
630.10 	literacy grants under Minnesota Statutes, 
630.11 	section 142D.12, subdivision 3.

630.12 	Sec. 10. GRANT ADMINISTRATION COSTS.
 630.13 	The administrative costs retention requirement under Minnesota Statutes, section 16B.98, 
630.14 	subdivision 14, is inapplicable to any appropriation in this article for a grant.

630.15 	Sec. 11. EXPIRATION OF UNCODIFIED LANGUAGE.
 630.16 	All uncodified language contained in this article expires June 30, 2027, unless a different 
630.17 	expiration date is explicit or an appropriation is made available after June 30, 2027.

630.18 	Sec. 12. Laws 2024, chapter 127, article 67, section 4, is amended to read:

630.19	Sec. 4. BOARD OF PHARMACY

630.20	Appropriations by Fund
	
630.21	General
	1,500,000
	-0-
	
630.22
630.23	State Government 
Special Revenue
	-0-
	27,000
	
630.24 	(a) Legal Costs. $1,500,000 in fiscal year 
630.25 	2024 is from the general fund for legal costs. 
630.26 	This is a onetime appropriation and is 
630.27 	available until June 30, 2027.
630.28 	(b) Base Level Adjustment. The state 
630.29 	government special revenue fund base is 
630.30 	increased by $27,000 in fiscal year 2026 and 
630.31 	increased by $27,000 in fiscal year 2027.

631.1 	EFFECTIVE DATE. This section is effective June 30, 2025.

	ARTICLE 1	DEPARTMENT OF HEALTH FINANCE........	Page.Ln 3.43	
	ARTICLE 2	DEPARTMENT OF HEALTH POLICY........	Page.Ln 63.25	
	ARTICLE 3	HEALTH LICENSING BOARDS........	Page.Ln 97.16	
	ARTICLE 4	MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY........	Page.Ln 170.6	
	ARTICLE 5	PHARMACY BENEFITS........	Page.Ln 187.19	
	ARTICLE 6	HUMAN SERVICES HEALTH CARE FINANCE........	Page.Ln 205.23	
	ARTICLE 7	HUMAN SERVICES HEALTH CARE POLICY........	Page.Ln 257.26	
	ARTICLE 8	BEHAVIORAL HEALTH........	Page.Ln 261.2	
	ARTICLE 9	BEHAVIORAL HEALTH POLICY........	Page.Ln 276.2	
	ARTICLE 10	CHILDREN'S MENTAL HEALTH TERMINOLOGY........	Page.Ln 303.1	
	ARTICLE 11	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION........	Page.Ln 390.1	
	ARTICLE 12	ASSERTIVE COMMUNITY TREATMENT AND INTENSIVE RESIDENTIAL TREATMENT SERVICES RECODIFICATION CONFORMING CHANGES........	Page.Ln 397.15	
	ARTICLE 13	BACKGROUND STUDIES........	Page.Ln 405.18	
	ARTICLE 14	DEPARTMENT OF HUMAN SERVICES PROGRAM INTEGRITY........	Page.Ln 407.17	
	ARTICLE 15	DEPARTMENT OF HUMAN SERVICES OFFICE OF THE INSPECTOR GENERAL POLICY........	Page.Ln 426.18	
	ARTICLE 16	ECONOMIC SUPPORTS........	Page.Ln 444.4	
	ARTICLE 17	CHILD PROTECTION AND WELFARE........	Page.Ln 448.14	
	ARTICLE 18	CHILD PROTECTION AND WELFARE POLICY........	Page.Ln 459.4	
	ARTICLE 19	EARLY CARE AND LEARNING........	Page.Ln 488.9	
	ARTICLE 20	CHILDREN AND FAMILIES LICENSING POLICY........	Page.Ln 499.25	
	ARTICLE 21	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES RECODIFICATION CONFORMING CHANGES........	Page.Ln 514.1	
	ARTICLE 22	MISCELLANEOUS........	Page.Ln 581.4	
	ARTICLE 23	FORECAST ADJUSTMENTS........	Page.Ln 594.12	
	ARTICLE 24	DEPARTMENT OF HUMAN SERVICES APPROPRIATIONS........	Page.Ln 595.26	
	ARTICLE 25	DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS........	Page.Ln 606.4	
	ARTICLE 26	DEPARTMENT OF HEALTH APPROPRIATIONS........	Page.Ln 617.19	
	ARTICLE 27	OTHER AGENCY APPROPRIATIONS........	Page.Ln 625.24	

APPENDIX 

Repealed Minnesota Statutes: S2669-3 

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.